1. It’s a pleasure to be here to present to you an update on the MCAA Web

2. How to Apply the Work Activity Method for Labor Calculations
WebLEM Update:
How to Apply the Work Activity Method for Labor Calculations
Specifically; how to apply the Work Activity Method (WAM) to an estimate for labor calculations
By: Tim Moormeier and Ron King

3. WebLEM Committee Members
Kevin Daubendiek – Humphrey Company, Houston, TX
Paul DeBella – DeBella Mechanical, Santa Clara, CA
Bob Durr – Durr Mechanical Construction, New York, NY
Andrew Hosler – Performance Mechanical Inc, Pittsburg, CA
Ron King – Trimble MEP, Toronto, ON
Patrick Reilly – John W. Danforth Company, Buffalo, NY
Tim Moormeier – U.S. Engineering Company, Kansas City, MO
Nick Nikpourfard – Mechanical Contractors Association of America, Rockville, MD
First, I’d like to acknowledge each committee member for their work on the committee, but specifically this project. If you’re in attendance, please stand to be recognized.
Slide
I’d also like to thank the MCAA Board of Directors for their support and backing on the project

4. Inability to separate labor accurately into shop vs field
What were some of the driving forces which lead to the development of this new method of laboring?
Inability to separate labor accurately into shop vs field
Inability to account for labor associated with back to back fittings
Inability to break down all labor components of a joint
Better cost control of labor activities in both the shop or field
Slide
These were some of the issues considered while preparing the new method of laboring
Most importantly, the membership ask for a breakout of:
Joint Labor
Bolt-Up
Testing
Handling

5. We establish shop vs field labor hours by:
How do we do it today?
We establish shop vs field labor hours by:
Percentage method
Diameter inch method
Account for back to back fittings by applying a correction factor
Currently no way to break down the components of the joint
Some have improvised by determining a “Cap” equals one joint
Percentage Method – Apply a percentage to the overall hours to determine how many hours go into the shop vs field. Not scientific at all. Once fabrication is completed the contractor could get a false sense of “on budget”
Diameter inch method – Calculate the number of weld inches to be completed in the shop and divide by the number of inches per hour obtainable in your shop = number of hours required in the shop. Then deduct the shop hours from the total hours and the remaining hours are for the field.
Finish the slide
Cap = 1 joint; take about 92% of a cap’s labor hours to represent one joint

6. What does a labor unit presently include?
Example: 6” CS, Std Wt, Buttweld, LR 90° Elbow. The WebLEM states 6.29 hours, which includes:
Receiving, unloading, stockpiling, distributing
Joining method
Type of connection – Buttweld
Qty of joints – 2
Type of material – Carbon Steel
Wall thickness – Standard Weight
Based on the labor values found on the WebLEM in conjunction with the Basic Assumptions:
Slide
Joining method:
Buttweld Joints
Quantity of (2)
Carbon Steel
Standard Weight
Normal testing:
1.5 the operating pressure

7. What does a labor unit presently include (Cont)?
“Normal” pressure testing – 1.5 X OP
Installation or erection
Note: The joint and installation make up the bulk of the unit
Based on the labor values found on the WebLEM in conjunction with the Basic Assumptions:
Slide
In a welded system, the weld represents the majority of the labor unit, with the weight being the second largest component which effects the installation; the heavier it is, the long it takes to install

8. What’s the Challenge?
No way to account for back to back fittings other than applying a correction factor
No way to establish meaningful hours for the fabshop other than applying a percentage or doing a diameter inch calc
No way to establish labor hours for components of the joint:
Cut & Bevel
TIG Root
Joint (buttweld)
Hydotest
Preheat/Postweld heat treat
Etc.
Bullet one – In certain situations, like an equipment room, it’s common to encounter fittings that are joined back to back. In these situations, the current method doesn’t enable you to quantify the joints not required. So it’s very common to deduct labor by a percentage of the overall labor for that area
Bullet two – we talked previously about the two differences

9. What could we do differently?
Break down the labor units into tasks such as:
Cut & Bevel
Tig Root
Purge
Preheat/Post Weld Heat Treat
Handling of Pipe, Fittings, Flange, Valve, etc
Bolt-Up
Hydrotest
Slide
If we had labor units for each of these tasks, the estimator could apply labor hours more accurately whether to use in the fabshop or the field

10. “Work Activity Method”
What should we call it?
The present method of laboring has been named:
“Component Method”
The new method for establishing labor hours for each task has been named
“Work Activity Method”
I reflect back on the day we decided what to call this new method. To me; I had been referring to it all along as the Joint Method and the old way called the Fitting Method. Seems simple! The committee thought we needed something more descriptive so we started the discussion on the new name as the Joint Method just didn’t sound appropriate. We named the existing method the Component Method. But what should we call the new method? We then came up with The Work Activity Method or WAM for short.

11. So how does the Work Activity Method work?
For the same 6” CS Std Wt BW 90° Elbow, we now have these activities:
6” CS Std Wt Flame Cut & Bevel (single operation)
0.40 x 2 = 0.80 Hours
6” CS Std Wt Buttweld
2.48 x 2 = 4.96 Hours
6” CS Std Wt LR 90° Elbow Installation
0.41 x 1 = 0.41 Hours
Total using the Work Activity Method = 6.17 Hours (excluding hydrotest)
Total using the Component Method = 6.29 Hours
Slide
If you were to add back the 2% testing into the WAM hours it would equal 6.29
Significance here is the two methods total when adding everything together!!

12. Let’s look under the hood!

13. Changes
Home page change to promote new Work Activity Method
Video and Handouts
Introduction
Proper Use of the LEM
Basis Assumption
Correction Factors
Addition of the Piping Systems Folder
Folder reorganization within the Piping Systems
HVAC Hook-Up
Instrumentation
Misc Labor Operations
Go into the WebLEM
Home page – Right Side Nav Bar showing Work Activity Method
Introduction – Now describes both methods
Proper Use of the LEM
Basic Assumptions
Correction Factors
Folder reorganization – Significant difference is the addition of the “Piping System” folder. Within you’ll find:
Component Method which contains all the existing folders such as Branch Connections, Fittings, Flanges, etc
Work Activity Method which are the new labor units for tasks such as Bolt-Up, Cut & Bevel, Fillet Weld, Hydrotesting, Joint, etc.
Explain the interlock between the two methods
HVAC Specialties and Plumbing Specialties
HVAC Hook-Up
Misc Labor Operations
Redundant items related to the Work Activity Method have been removed
Items remaining apply to both methods

14. www.weblem.org Changes (cont.)
Plumbing Equipment
Plumbing Hook-Up
Treatment Plant Equipment
Folder reorganization (continued)
Plumbing Equipment – Some items such as Cleanouts, Drains, Hose Bibbs, Medical Gas Outlets, etc will be moved to the Component Method folder
Plumbing Hook-Up – Add a noted stating they are based on the Component Method
Treatment Plant Equipment – Valves have been moved to the Component Method Valve folder

15. www.weblem.org Changes (cont.)
New folders containing the Work Activity Method items
Bolt Up
Cut & Bevel
Drilling Holes
Fillet Welds
Fitting Handling & Installation
Flange Handling & Installation
HVAC Specialties
Hydrotesting
Joints
Layout & Flame Cutting
Machining Inside of Pipe or Fitting (Counter Boring)
Drill down to show some examples:
Bolt Up/Flat Face or Raised Face
Cut & Bevel/Flame Cut & Bevel/Pipe Cut & Bevel (Single Operation)/Carbon Steel
Fillet Welds/Carbon Steel
Fitting Handling & Installation/Buttweld/Standard Weight
Flange Handling & Installation/Flanges/Weld Neck Flange
HVAC Specialties
Hydrotesting
Joints/Buttweld/Carbon Steel

16. www.weblem.org Changes (cont.)
New folders containing the Work Activity Method items (cont)
Nipples
Pipe Handling & Installation
Plumbing Specialties
Preheat
Purge
Stress Relieving
Valve Handling & Installation
Examples continued:
Nipples
Pipe Handling & Installation
Plumbing Specialties
Preheat
Purge
Stress Relieving
Valve Handling & Installation

17. Now Let’s See Some Examples! And What This Means To Me?
Let’s compare the following:
Component Method style of takeoff
Work Activity Method style of takeoff to precisely determine the labor required
Slide
Now that we understand the two different methods and where the labor units reside in the WebLEM, let’s see some examples of takeoff

18. Take this coil hookup for example
Bring up this coil drawing and describe:
How it contains back to back fittings, which means a labor savings on not only the joint but the associated cut as well (remember, the component method has a cut associated with each and every fitting opening, which aren’t required in the WAM method due to the tight proximity of fittings)
How to perform the takeoff using:
Component Method
Take off all the PVF
If using Percentage Method you’re done. Apply percentage
No need to count welds or bolt ups
If using the Dia Inch Method, count the welds. Then apply Dia Inch per Hour
Work Activity Method
Take off the PVF
Count the joints (using an assembly)
Count bolt ups
Add Hydrotest hours as applicable

19. Take this Isometric Drawing for example
Bring up this coil drawing and describe:
How it contains back to back fittings, which means a labor savings on not only the joint but the associated cut as well
How to perform the takeoff using:
Component Method
Take off all the PVF
If using Percentage Method you’re done. Apply percentage
No need to count welds or bolt ups
If using the Dia Inch Method, count the welds. Then apply Dia Inch per Hour
Work Activity Method
Take off the PVF
Count the joints (using an assembly)
Count bolt ups
Add Hydrotest hours as applicable

20. So now it’s possible!
No need to adjust for back to back fitting situtations
Precisely account for all labor activities in the shop vs field
Ability to calculate all activities related to the joint
Bottom line; The Work Activity Method allocates the labor hours associated with the activities very accurately

21. What if the WAM method just isn’t for me?
“I don’t worry about shop vs field or counting the joints…….”
“I just want to take off using the same method as in the past; counting widgets……..”
No Problem!!
Continue performing takeoff using the Component Method just as you’ve done in the past

22. But if the WAM Method IS for you
You can start using this method immediately
Remember to examine your labor productivity factors to account for this new method!!! You can’t use the same factors as used with the component method!!!
Be sure to read the Introduction, Proper Use of the LEM and Basic Assumptions
Visit each of the folders on the WebLEM contained within the “Work Activity Method” to familiarize yourself and don’t forget to read any footnotes
Start producing very precise shop vs field estimates immediately
WebLEM committee asks for your feedback

23. WebLEM Committee Update
Formulating more WAM labor units
Cast Iron No-Hub, Copper Sweat, PVC DWV and Pressure, etc.
Reviewing the plastics section
Reviewing saddles, stub-ins and nozzle welds
Formulating Aquatherm labor units
Review “Quick Vic” coupling labor units

24. Has Delivered!