Don’t Gamble with Your Project’s Performance Benchmarking and Metrics Committee 2009 CII Annual Conference Danny Scott (BE&K, a KBR Company)

Gambling on a Football Game Line Visiting team favored by three points Game Day Forecast Clear, 24°F

Gambler 1: Considerations: Home team wins 83% of games played when temperature < 32°F Home team allows only 8.7 points per game Sports page says visiting team’s QB is hurt and listed as questionable Site Conditions Productivity Resource Availability Gambling on a Football Game (continued) Bob Benchmarker

Gambler 2: Considerations: Gambling on a Football Game (continued) Will Chansit Likes the colors of the visiting team’s uniforms

How Would You Bet?

CII Benchmarking Isn’t Gambling Industry Specific Metrics COAA (Oil Sands) Pharma / Bio Downstream Oil & Gas Productivity Metrics Engineering Construction Performance Metrics Safety Cost Schedule Change Rework Best Practices Metrics Revised Best Practices Metrics Level 1 Productivity Metrics Upstream Oil & Gas Healthcare Facilities

Industry Safety Culture 77.3% Reduction in TRIR!

What If… We Developed a Performance Culture That… Rivaled Our Industry’s Safety Culture?

What Tools Would We Need? Data Mining Capability

An Executive ‘Dashboard’ High-Level Attention, Priority, Understanding Overall Project Performance: 15 Projects Overall: 2 nd Quartile

Executive Dashboard “Drill-Down” Project Schedule Performance: 15 Projects Overall: 4 th Quartile

Project-Level Productivity Concrete Engineering Productivity Structural Engineering Productivity Piping Engineering Productivity Equipment Engr. Productivity Electrical Engr. Productivity Instrumentation Engr. Productivity Concrete Construction Productivity Structural Steel Const. Productivity Piping Construction Productivity Equipment Const. Productivity Electrical Const. Productivity Instrumentation Const. Productivity Insulation Const. Productivity Scaffolding Const. Productivity DISCIPLINE-LEVEL PRODUCTIVITY ENGINEERING PRODUCTIVITY CONSTRUCTION PRODUCTIVITY

Project-Level Productivity Poor Good 1Q1Q 2Q2Q 3Q3Q 4Q4Q 11% Improvement (2 nd to 1 st Quartile) 26% Improvement (4 th to 1 st Quartile)

CII Needs Lots of Data… Traditional Three-step Process Online Questionnaire CII Benchmarking Database Data Mining and Reporting Engine

Response: CII is Investing NextGen Benchmarking System –Up to 80% less questions (Tier 1) –Internal (Business Unit, Product Line) Benchmarks –Automated Data Entry (XML) –Worldwide University Benchmarking Labs CII Summer Intern Program

You Know the Value – You Have to Use It… Value of External Benchmarking Projects’ Use of External Benchmarking

Can a Performance Culture Improve Project Performance?

Yes! Pharmaceutical and Biotechnology Owners Benchmarking Program Cost Performance (6% Less)Schedule Performance (26% Less)

Include CII Benchmarking In Work Processes –Owner’s Gated Asset Development Processes –Contractor’s Operating Procedures Guidebook How Do We Build a Performance Culture? USE CII BENCHMARKING HERE

How Do We Build A Performance Culture? Start by Attending Our Implementation Session! Learn More about: –Executive-Level Reporting and Data Mining –Project-Level Productivity Measures –CII’s NextGen System and Automated Data Entry Don’t Gamble with Your Project’s Performance ANYMORE Benchmark with CII