The Effects of Field Rework Research Team RT - 153

The Effects of Field Rework Research Team RT - 153

An Investigation of Field Rework in Industrial Construction Capsule Summary of Research Funded by the Construction Industry Institute (CII) Directed by the Causes & Effects of Field Rework Research Team (RT-153) Conducted by Oregon State University (OSU) Field Rework Research Team RT - 153 Jim Atkinson US Steel (Chairman) Richard Calhoun Phillips Petroleum Co. Francis House Kellogg Brown & Root William Wright Chemtex International

Andrew Beal Air Products & Chemicals May 16, 2001 Joe Beffa Black & Veatch Phill Stassi Jacobs Engineering Group, Inc. Tom Falso Eichleay Dr. David Rogge (Researcher) Oregon State University COAA - Field Rework in Industrial C onstruction 3 Presentation by Dr. David F. Rogge Program Coordinator

Construction Engineering Management (CEM) Oregon State University Overview RT-153 Objectives 1 Identify methods being used to track rework. 2 Identify the major causes of rework. 3 Identify practices that most effectively minimize field rework. 4 Develop a tool (Field Rework Index, FRI) that will foretell the degree of field rework. May 16, 2001 COAA - Field Rework in Industrial C onstruction 6 Definition

Field Rework is: Total direct cost of rework in the field regardless of initiating cause or source. Field Rework is not: Change orders for new work Off-site fabricator errors Off-site modular fabrication errors May 16, 2001 COAA - Field Rework in Industrial C onstruction 7 Calculation % Field Rework = Total direct cost of rework performed in field Total field construction phase cost

May 16, 2001 COAA - Field Rework in Industrial C onstruction 8 How BIG is the Problem? CII Data Research Summary 10-2 (1989) Benchmarking & Metrics Data Report (1997) 3.4% for 19 industrial projects

This Research May 16, 2001 12% rework on 9 industrial projects 4.4% for 109 industrial projects Ranges between 0% and 25% High levels impact schedule COAA - Field Rework in Industrial C onstruction 9 How is Field Rework Tracked? Objective 1

May 16, 2001 CIIs Quality Performance Management System (QPMS) CII 10.3 Measures field rework and design rework Measures cost of prevention and appraisal Adaptations of QPMS elements Company internal systems RT-153 Final Research Report will present a simplified system for field rework tracking only COAA - Field Rework in Industrial C onstruction 10 Rework Causes and Cures

Objectives 2 & 3 Analysis of 145 projects shows strongest relationships between field rework and: Owner organization alignment Engineering rework Constructability Commitment May 16, 2001 COAA - Field Rework in Industrial C onstruction 11 Rework Causes and Cures Objectives 2 & 3 Conclusion: Improve the upstream processes (pre-project planning and engineering) and you will improve the downstream process

(construction). >> Not Rocket Science << May 16, 2001 COAA - Field Rework in Industrial C onstruction 12 Predicting Field Rework Objective 4 The Field Rework Index (FRI) Accurately predict field rework % ?-- NO. Provide early warning? YES. BONUS Early warning for cost growth! May 16, 2001 COAA - Field Rework in Industrial C onstruction 13

Predicting Field Rework Objective 4 How the FRI works: Project team answers 14 questions Scores are summed X1 + X2 X14 = FRI Xn = Team score for a question May 16, 2001 COAA - Field Rework in Industrial C onstruction 14 FRI Form Points 1 2 3 4

5 Degree of alignment between the various elements (departments, divisions, etc.) of the owner's organization. Degree to which project execution planning was utilized. Design FIRM's qualifications for the specific project Degree to which leaders of key design disciplines have changed Quality of field verification of existing conditions by engineering 6 Quality of interdisciplinary design coordination Quality of prequalification of vendors for the 7 project 8 Availability of vendor information for equipment 9 Degree to which design schedule is compressed 10 Level of overtime worked by the engineering firm 11 Level of design rework (repeating design work) Commitment to constructability of the design

12 and construction team Expected availability of skilled craftworkers to 13 the project Expected level of construction contractor 14 overtime Could not be better 1 2 3 4 Could not be 5 worse Completely Could not be better No change at all

Could not be better Could not have been better Could not have been better Could not be more available Not compressed at all 1 2 3 4 5 Not at all Could not be 5 worse

Continual 5 change Could not have 5 been worse Could not be 5 worse Could not have 5 been worse Could not be 5 less available Could not be more 5 compressed 1 2 3 4 1

2 3 4 1 2 3 4 1 2 3 4

1 2 3 4 1 2 3 4 1 2 3 4

None Could not be lower Total Commitment Readily available 1 2 3 4 1 2 3

4 1 2 3 4 5 Very high level Could not be 5 higher Total lack of 5 commitment 1 2 3 4

5 Very scarce None 1 2 3 4 5 Very high TOTAL POINTS May 16, 2001 COAA - Field Rework in Industrial C onstruction 15 FRI Rework Danger Chart

May 16, 2001 COAA - Field Rework in Industrial C onstruction 16 What are the Questions? Three categories of questions: Team Planning & Organization Information Availability Staffing or Schedule Constraints May 16, 2001 COAA - Field Rework in Industrial C onstruction 17 Team Planning & Organization

Alignment within the Owners organization Degree of use of Project Execution Planning Design firms qualifications Change of design discipline leaders Commitment to using Constructability by design and construction contractors May 16, 2001 COAA - Field Rework in Industrial C onstruction 18 Information Availability Field verification of conditions by Engineering Quality of interdisciplinary design coordination Availability of vendor information Level of design rework May 16, 2001

COAA - Field Rework in Industrial C onstruction 19 Staffing or Schedule Constraints Compression of design schedule Design overtime Quality of Vendor prequalification Availability of skilled craftworkers Construction contractor overtime May 16, 2001 COAA - Field Rework in Industrial C onstruction 20 The FRI is available through CII The Field Rework Index: Early Warning

for Field Rework and Cost Growth Research Summary 153-1 February 2001 (http://construction-institute.org) May 16, 2001 COAA - Field Rework in Industrial C onstruction 21 Background May 16, 2001 COAA - Field Rework in Industrial C onstruction 22 Why Does the FRI Work? Research Methodology Industry survey

Attitudes and practices Identify best practices 85 responses from 46 organizations Focus group Database of actual project data Evaluate relationships Identify variables for early warning May 16, 2001 COAA - Field Rework in Industrial C onstruction 23 The FRI Database Field rework measures from completed projects Percent Subjective rating Retroactive evaluations

May 16, 2001 COAA - Field Rework in Industrial C onstruction 24 Predictor Variables Selection process Industry survey analysis Research team brainstorming Focus group 63 variables Forced ranking 44 variables Analysis of initial 43-project database 19 variables Final FRI tool 14 survivor variables

May 16, 2001 COAA - Field Rework in Industrial C onstruction 25 Database 153 total projects 144 with subjective rework ratings 137 with complete info. for FRI 109 with measured rework 107 with cost growth information May 16, 2001

COAA - Field Rework in Industrial C onstruction 26 Database Project size (US $ -- Construction Phase) May 16, 2001 Minimum = $200 thousand Maximum = $558 million Mean = $58 million Median = $17 million COAA - Field Rework in Industrial C onstruction

27 Database Other Industrial 28% Mfg. 8% Steel & Aluminum 10% May 16, 2001 Chemical Plants 35% Oil and Gas 19% COAA - Field Rework in Industrial C onstruction

28 Factors Related to Field Rework FRI variables in descending order of relationship with field rework rating May 16, 2001 Owner alignment Design Rework Constructability commitment Interdisciplinary design coordination Degree of project execution planning COAA - Field Rework in Industrial C onstruction 29

Factors Related to Field Rework FRI variables (continued) May 16, 2001 Design firms qualifications Field verification Expected craftworker availability Expected construction overtime Engineering overtime Design leadership changes Design schedule compression Supplier prequalification Supplier information

COAA - Field Rework in Industrial C onstruction 30 How Strong Were the Relationships? May 16, 2001 COAA - Field Rework in Industrial C onstruction 31 % Rework vs FRI 30 25 % REWORK 20

15 10 y = 0.1527x - 0.8121 5 R2 = 0.0817 0 0 10 20 30 40 50

60 FRI SCORE May 16, 2001 COAA - Field Rework in Industrial C onstruction 32 Rework Rating vs FRI 6 Very High REWORK RATING 5 y = 0.0751x - 0.0274 2

R = 0.2578 High 4 Normal 3 Low 2 Very Low 1 0 0 10 20

30 40 50 60 70 FRI SCORE May 16, 2001 COAA - Field Rework in Industrial C onstruction 33 Database Analysis CONCLUSION: Accurate prediction of percent field rework not possible. BUT, is early warning possible?

May 16, 2001 COAA - Field Rework in Industrial C onstruction 34 Yes. For the database FRI >45 6.8% mean rework (16 projects) FRI < 30 2.5% mean rework (34 projects) May 16, 2001 COAA - Field Rework in Industrial C onstruction 35

Rework Rating for FRI <30 High or Very High Normal 2% 12% Low or Very Low 86% May 16, 2001 COAA - Field Rework in Industrial C onstruction 36 Rework Rating for FRI >45 Low or Very Low 25% High or Very

High 65% May 16, 2001 Normal 10% COAA - Field Rework in Industrial C onstruction 37 But Wait, Theres More! May 16, 2001 COAA - Field Rework in Industrial C onstruction 38 FRI Warns of Cost Growth!

May 16, 2001 FRI Score Cost Growth (%) Number of Projects >45 25.8% 15 30-45 6.0% 54

<30 -7.8% SAVINGS! 31 COAA - Field Rework in Industrial C onstruction 39 Cost Growth versus FRI 2 1.8 ACTUAL COST/BUDGET COST 1.6 y = 0.012x + 0.6252 1.4

2 R = 0.2902 1.2 1 0.8 0.6 0.4 0.2 0 0 10 20 30 40 50

60 70 FRI May 16, 2001 COAA - Field Rework in Industrial C onstruction 40 FRI Warns for Field Rework and Cost Growth For Database Warning for field rework and for cost growth about equal FRI target of <30 is good for both May 16, 2001 COAA - Field Rework in Industrial C

onstruction 41 RECAP: FRI Development 63 possible predictor variables identified Analysis of 145 project database reduced variables to 14. Survivor variables form FRI Projects with FRIs <30 had low or very low rework cost growth was negative Projects with FRIs >45 two of three had high or very high rework cost growth was >25% May 16, 2001 COAA - Field Rework in Industrial C onstruction 42

Other Findings Field rework metrics are not standardized Metrics used % of actual construction phase cost % of total installed cost % of labor hours or dollars (by craft or not) Other variations Significant differences in magnitude Example: 5% of labor may be 2% of construction and 0.5% of TIC May 16, 2001 COAA - Field Rework in Industrial C onstruction 43

Other Findings From the survey of CII companies May 16, 2001 87% track field rework 79% unfamiliar with QPMS Only 2 of 17 trying QPMS discontinued 72% used field rework data to improve engineering COAA - Field Rework in Industrial C onstruction 44 Other Findings Survey of CII companies (continued)

Ways to minimize field rework May 16, 2001 98% - up-front planning and scope definition 88% - constructability 48% - establish goals 31% - use PDRI (CIIs Project Definition Rating Index, Pre-Project Planning Tools: PDRI and Alignment, Research Summary 113-1) COAA - Field Rework in Industrial C onstruction 45 Best Practices for Measuring and Managing Field Rework Research Team studied best practices

Companies identified by Questionnaire survey Research team Six site visits May 16, 2001 COAA - Field Rework in Industrial C onstruction 46 Earning Rework Incentive Best Practice Example: Contract allowed increased profit through reduced field rework Examine, flow chart, and improve engineering processes Use of 3D-CAD Use of site photogrammetry Incentives earned.

May 16, 2001 COAA - Field Rework in Industrial C onstruction 47 QPMS for 10 Years Best Practice Example: CII Research Summary 10-3 introduced QPMS in 1989 Measures field rework and design rework Measures cost of prevention and appraisal One company has used extensively Average rework of 10.1% in 88 Average rework of 2.6% in 98 Revised procedures Software to facilitate Lessons learned May 16, 2001 COAA - Field Rework in Industrial C

onstruction 48 Field Rework Incentives in Design Contracts Best Practice Example Owner uses field rework measures as factor in awarding design contracts as incentive for fees in design contracts May 16, 2001 COAA - Field Rework in Industrial C onstruction 49 Construction Contractor Best Practice Example Construction contractor tracks field rework Norms by design firm Constructor-caused

For continuous improvement No cost to owner even when cost-reimbursable May 16, 2001 COAA - Field Rework in Industrial C onstruction 50 Conclusions Field rework is significant cost for industrial construction Average 4.4% of construction phase cost Median 3.0% Range of 0% - 25% FRI is simple tool providing early warning for field rework for cost growth May 16, 2001

COAA - Field Rework in Industrial C onstruction 51 Conclusions (contd) Efforts to minimize field rework must start long before construction May 16, 2001 Improve Owner organization alignment Minimize engineering rework Constructability commitment Other 11 variables of FRI COAA - Field Rework in Industrial C onstruction

52 Recommendations Use FRI on industrial projects to warn of potentially high field rework and cost growth Include FRI variable scores in project summaries to build company-specific database. May 16, 2001 COAA - Field Rework in Industrial C onstruction 53 Thank you. Contact Dr. David Rogge with information or questions: Dept. of Civil Engineering Oregon State University Apperson Hall, Rm. 111

Corvallis, OR 97331-2302 Phone: (541)737-4351, FAX: (541)737-3300 E-mail: [email protected] www.engr.orst.edu/~rogged May 16, 2001 COAA - Field Rework in Industrial C onstruction 54

Recently Viewed Presentations

  • Introduction to MS Project 2007 - جامعة الملك سعود

    Introduction to MS Project 2007 - جامعة الملك سعود

    Tutorial 3. Instructor: Hanif Ullah. ... Introduction to MS Project 2007. Linking Tasks. Projects require tasks to be performed in a specific order. For example, the task of filming a scene must be completed before the task of editing the...
  • 2007 Photo Contest - PNW District

    2007 Photo Contest - PNW District

    Pacific Northwest District of the American Rose Society White Licorice By Harlow Young LeAnn Rimes By Gretchen Humphrey By Diana Bartley Livin' Easy Louisville Lady By Dorothy Butler Magic Carrousel By Judy Burge Marilyn Monroe By Dorothy Butler Marilyn Monroe...
  • Mary Ellen Guffey, Essentials of Business Communication

    Mary Ellen Guffey, Essentials of Business Communication

    Possible additional parts: Copy of RFP Letter or memo of transmittal Abstract and/or executive summary Title page Table of contents List of figures Appendix Formal Proposals Parts of Formal and Informal Proposals Budget Authorization Appendix Generally appear in both formal...
  • What is ? Objectives of the Activity  Determine

    What is ? Objectives of the Activity Determine

    creating beauty Yet the idea of beauty, like that of truth, has been challenged in the modern era. At one time, the artist was expected to portray perfection-- lofty and noble ideals of beauty. Yet as society became more industrialized...
  • LAME COWS - Ms. Anderson&#x27;s Classes!

    LAME COWS - Ms. Anderson's Classes!

    Which one will heat up quicker and will have a higher temperature? O = Ocean Currents Gulf Stream Warm water moves away from the equator Cold water moves away from the poles North Atlantic Drift W = Winds - pressure...
  • Annie Girardot actrice française, née le 25 octobre 1931

    Annie Girardot actrice française, née le 25 octobre 1931

    Meg Ryan Hoy (49 años) Michèle Mercier Ayer Michèle Mercier Hoy (71 años) Michèle Morgan Ayer Michèle Morgan Hoy (90 años) Mickey Rooney Ayer Mickey Rooney Hoy (90 años) Milène Demongeot Ayer Milène Demongeot Hoy (75 años) Robert Hossein Ayer...
  • Parity Datasheets  TTL: http://www.techlearner.com/C&D/index.htm  CMOS:  http://fenix.student.utwente.nl/~fenix/datasheets_4000.html 2 Parity

    Parity Datasheets TTL: http://www.techlearner.com/C&D/index.htm CMOS: http://fenix.student.utwente.nl/~fenix/datasheets_4000.html 2 Parity

    Parity checker: the circuit that checks the parity in the receiver. * Parity Generation - Example P(X,Y,Z) must produce a 1 for all the input combinations that contain an odd number of 1s Thus, it is a 3-input odd function...
  • Chem 51LB Week 5

    Chem 51LB Week 5

    If your lab reports are ~90%, but class average is also ~90%, you are not getting an A. If your lab reports are ~50%, but class average is also ~50%, you are not going to fail! Drop the lowest lab...