Why Is Benchmarking Important For Company X? PROJECT BENCHMARKING WITH CII Construction Industry Institute ® Last update: March 1, 2007

Benchmarking With CII “ Dupont CEO Chad Holliday will not sign off on a project unless I sign off on it, and I will not sign unless CII Best Practices have been implemented ” - James B. Porter Jr.- Dupont’s Vice President of Engineering and Operations “ Dupont CEO Chad Holliday will not sign off on a project unless I sign off on it, and I will not sign unless CII Best Practices have been implemented ” - James B. Porter Jr.- Dupont’s Vice President of Engineering and Operations

What’s In Benchmarking For Company X ? Benchmarking Measures The Impact Of Best Practices on Project Performance CII’s Project Database is Robust and Diverse  CII Benchmarking database consists of over 1560 Projects  Projects are valued at > $72 Billion Benchmarking Measures The Impact Of Best Practices on Project Performance CII’s Project Database is Robust and Diverse  CII Benchmarking database consists of over 1560 Projects  Projects are valued at > $72 Billion

The Benefits of Benchmarking Project Life Cycle Early Project Setup/Planning Project Engineering & Construction Project Close-out -Bob Herrington, Jacobs-

How Do We know? CII History  Chartered by the CII BOA in Nov 1993  First Committee Meeting in Feb 1994  First Data Collection in 1996  Developed On-Line Questionnaire in 1999 CII History  Chartered by the CII BOA in Nov 1993  First Committee Meeting in Feb 1994  First Data Collection in 1996  Developed On-Line Questionnaire in 1999

Why Use External benchmarking? Benchmarking Objectives  Provide The Industry With Performance Norms  Act As An Impartial Confidential Venue For The Transfer Of Knowledge Between Competitors  Discourage Harmful Practices Such As Bid Rigging Among Competitors  Measure The Use Of Selected Best Practices  Quantify The Value Of Best Practices  Provide Member Companies Tools For Self-analysis Benchmarking Objectives  Provide The Industry With Performance Norms  Act As An Impartial Confidential Venue For The Transfer Of Knowledge Between Competitors  Discourage Harmful Practices Such As Bid Rigging Among Competitors  Measure The Use Of Selected Best Practices  Quantify The Value Of Best Practices  Provide Member Companies Tools For Self-analysis

Company Continuous Improvement Program CII Research CII Knowledge Base & Training Benchmarking & Metrics Benchmarking - An Iterative Process

Benchmarking as Part of the Continuous Improvement Cycle31 Implement Best Practices Implement MeasureResultsMeasureResults Identify Opportunities to Improve Identify Opportunities to Improve SelectImplementationToolsSelectImplementationTools ConductTrainingConductTraining Compare to Competition/ Company Trends Compare to Competition/ Company Trends

Whose buy-in is needed to make the process work? Senior Management Benchmarking Associate Project Management CII Staff & BM&M Committee Senior Management Benchmarking Associate Project Management CII Staff & BM&M Committee

Project Managers Company Benchmarking Associate Company Leadership CII Staff, Account Mgrs. & Committee CII Benchmarking & Metrics Road Map Responsible for Benchmarking Coordination Decision / Commitment to Benchmark as Basis for Improvement Responsible for Project Benchmarking & Improvement Develop/Improve Metrics, Processes, Policies & Procedures Develop Data Collection & Reporting Tools Perform Validation Checks, Run Analysis & Generate Reports Provide Input to Research & Implementation Conduct Training & Feedback Sessions Select Projects for Analysis & Preload/Initiate Project in CII Database Validate Questionnaires Release Questionnaire to CII Perform Self-Analysis & Develop Improvement Plan Complete Questionnaire During Project Execution Complete & Submit Questionnaire at Project Close-out Review and Act on Interim CII On-line Recommendations

Levels Of Use Of The Benchmarking System Improve Efficiency Of A Business Unit Improve Performance Of A Single Project Or A Group Of Projects Improve Efficiency Of Overall Project System Improve Selected Performance Metrics (E.g. Productivity)

Now What…? Develop a Path Forward Set A Policy On Benchmarking Train Benchmarking Associates Train Process Managers Improve Project Sample Selection Techniques Document Results And Lessons Learned For Continuous Improvement Communicate Results To All Stake Holders– Results Have To Permeate All The Levels Of An Organization For Any Tangible Improvement To Take Place Develop a Path Forward Set A Policy On Benchmarking Train Benchmarking Associates Train Process Managers Improve Project Sample Selection Techniques Document Results And Lessons Learned For Continuous Improvement Communicate Results To All Stake Holders– Results Have To Permeate All The Levels Of An Organization For Any Tangible Improvement To Take Place