Evaluating Onsite Design Project Team When and How Much? Evaluating Onsite Design Project Team David Bowlin, Chair

Communication? Design Construction

Benefits of Onsite Design? Improved communications Timely and accurate information exchange Influence on project performance

Evaluating Onsite Design Project Team Al Aikman Anheuser-Busch Edward Back Clemson University David Bowlin Centex Engineering & Construction, Chair Philip Carman Procter & Gamble Kevin Cook Murphy Company Jeff Derrickson DuPont Alan Kerley Day & Zimmermann Les Shepherd General Services Administration Bob Tabet Naval Facilities Engineering Command Past Members John Gnecco Florida Power & Light Douglas Haag Eichleay Engineers Doug Saxon US Army Corps of Engineers

Improve interface between design and construction. Problem Statement Improve interface between design and construction. Five questions: Does onsite design yield measurable benefits? Which performance measures are improved? When should onsite design be employed? How much onsite design is recommended? How does the recommendation change by project phase?

Research Objectives Determine the type and magnitude of benefits resulting from onsite design. Assess these impacts against a variety project performance measures. Provide a methodology to determine the appropriate level of onsite design support.

Research Database Included 115 industry surveys representing approximately $9 billion in project value. All industry sectors represented. Even split between lump sum and cost-plus fee. Projects ranged in complexity, scope, and cost. Project performance ranged from poor to exceptional.

Project roles or services provided by firms Data Collection Project roles or services provided by firms Construction Management Owner/Client 21% 19% Construction 12% Design 24% Procurement 24%

Data Collection Project database nearly evenly divided between projects that employed onsite design and those that did not. All industry sectors represented in each group.

Data Collection General Building 4 11 Light Industrial 4 10 Onsite No Onsite Design (%) Design (%) General Building 4 11 Light Industrial 4 10 Pharmaceutical 8 0 Power 10 8 Petroleum 28 10 Pulp/Paper 4 0 Chemical 10 17 High Tech and Electronics 0 0 Heavy Industrial 14 11 Manufacturing 16 15 Highway and Infrastructure 0 2 Other 2 16 100 100

Data Collection Projects with onsite design vs. The database enabled statistical comparisons: Projects with onsite design vs. Projects with no onsite design

Drivers for Onsite Design Project type Technical complexity Level of risk Schedule constraints Constructability Level of scope definition Communications interface Design approvals and RFIs Alliances or partnering Favorable past experience Composition of design team Technical complexity Level of risk Schedule constraints

Performance Measures Improved with Onsite Design Productivity or earned value during the project Participation in design by construction personnel Customer feedback and improved partnering Plant output vs. design intent Constructability Usability of design drawings Accuracy of design documents Accuracy of design documents Effectiveness of communication Time to process change orders Safety standards incorporated into design Operability, maintainability, and reliability Plant output vs. design intent Constructability At 95% correlation levels

Other Performance Measures Improved with Onsite Design Value engineered savings Design as a percentage of total installed cost Ease of start-up Accuracy of as-built drawings Reduction of Requests for Information (RFIs) Timely issue of design documents and equipment lists 17 of 29!

Objectives of Onsite Design Lower the wall

Objectives of Onsite Design Lower the wall Break through the wall

Objectives of Onsite Design Lower the wall Break through the wall Move both parties to the same side of the wall

Top 10 Design Activities The research identified key design activities that should be performed onsite to significantly improve selected project performance measures.

Top 10 Design Activities Develop/utilize work breakdown structure. Prepare, monitor, or maintain scope. Address safety issues. Define major equipment and material specifications. Conduct constructability evaluation. Process and facility planning. Specification of fabricated items. Develop preliminary design including PFDs and P&IDs. Develop instrumentation and control drawings. Develop, monitor, or execute start-up plan.

Top 5 Design Activities by Project Phase Front End Planning Design Preliminary Detailed Procurement Construction Start-Up Conduct constructability evaluation. Define major equipment and material specs. Prepare, monitor, or maintain detailed cost estimate. Specify fabricated items. Address safety issues.

Introducing the Onsite Design Tool As simple as 1, 2, 3….

of your project execution strategy. Step 1 Define the WHY of your project execution strategy. Select the “Basis for Your Decision” Choose from a list of 34 drivers List includes such items as: Response to crisis Market timing Technical complexity Alliances or partnering……..

is critically important to achieve. Step 2 Define WHAT is critically important to achieve. Select important project performance criteria. Choose from a list of 29 List includes such items as : Project Budget Schedule Milestones Safety Percent of rework Ease of start-up Plant output vs. design intent Usability of design documents

Find which specific design activities Step 3 Find which specific design activities to perform on site in order to improve your selected performance criteria. Step 3 is performed by the OSD tool.

Introducing the Onsite Design Tool The OSD tool reports findings by project phase. Different activities are appropriate for each project phase. Step 1 Basis for Decision Step 2 Performance Criteria The OSD Tool identifies design activities by project phase. Step 3

We can answer the questions!! What Is the Value? We can answer the questions!! Yes! Does onsite design yield benefits? Which performance measures are improved? 17 of 29 Every phase When should onsite design be employed? See OSD Tool How much onsite design is recommended? How does the recommendation change by project phase?

At the Implementation Session Meet a user panel that will answer questions about their experiences with onsite design. Receive more detail on the value of onsite design. See the OSD tool used to answer audience queries.

Moderator/Panelists Moderator: Panelists: Phil Carman Procter & Gamble Alan Aikman Anheuser-Busch Ed Back Clemson University Kevin Cook Murphy Company Alan Kerley Day & Zimmermann Les Shepherd GSA