Benchmarking in the Information Technology Age Dave Hile
Benchmarking in the Information Technology Age Dave Hile Cherne Contracting Corporation CII Benchmarking & Metrics Committee 2000 CII Annual Conference Nashville, Tennessee
BM&M Committee
“Benchmarking is the practice of being humble enough to admit that someone else is better at something and wise enough to try and learn how to match and even surpass them at it. ” APQC, 1998
CII BM&M Program 1999 — We listened, we focused, and we created the Vision. 2000 — We are developing, we are improving, we are delivering against the Vision. 2001 — We will have the most efficient, cost-effective, credible, and open benchmarking system available.
CII BM&M Database ü More International than 900 projects 226 Domestic 675 ü Worth approximately $50 B
BM&M Program Improvements ü Development & fielding of Web questionnaire
Web Questionnaire Enter project data: ü online ü during project execution ü with less effort ü with greater accuracy
Web Questionnaire Content Improvements: üOnline scoring of ü New practices PDRI – Materials Management – Planning for Startup – Disputes Resolution – Design Effectiveness
Custom Key Reports ü New custom Key Reports with project results plotted on database charts Better
Web Key Reports ü Web-based Key Reports for real-time scoring of performance and practice use metrics
Electronic Data Report ü User- friendly interactive electronic data report that produces charts and data tables on demand
Electronic Data Report ü Built-in graphics engine produces charts and tables from data file. Better
Trend Reporting ü Trend analysis charts for performance and practice use
Value of Best Practices ü Improved • Pre-Project Planning • Constructability • Change Mgmt. • Design/Info Tech • Team Building • Safety (Zero Accidents) • Project Complexity value of best practice analysis Project Cost Growth = 0. 2334 - 0. 0083 * Pre-Project Planning - 0. 0040 * Constructability - 0. 0020 * Change Mgmt. - 0. 0081 * Design/Info Tech - 0. 0070 * Team Building Practice - 0. 0131 * Safety Practice + 0. 0115 * Project Complexity
Value of Best Practice Reports ü Relative and bottom-line benefits quantified for each industry group Pre-Project Planning $331 K Safety $531 K Constructability $336 K Team Building $306 K Design/Information Technology $366 K Project Change Management $441 K Respondent: Contractors; Industry: Heavy Industrial, $50 MM Project
Other Program Improvements ü Built the CII Benchmarking Web site: http: //www. cii-benchmarking. org/ ü Established a path forward for new performance/productivity metrics. ü Conducted the first CII Benchmarking User’s Forum. ü Established an annual CII Benchmarking User Award.
Benchmarking User Award Criteria for award: 1. Best application of benchmarking for project improvement 2. Contributions to the BM&M program through active participation
Benchmarking User Award Champion International Jacobs Engineering
BM&M Implementation Session Panel Dave Hile Moderator Cherne Contracting Chad Zollar International Paper (formerly Champion International) Bob Herrington Jacobs Engineering Steve Thomas CII NCC 204
Why Get Involved? “If you are not keeping score, you’re only practicing. ” Arthur M. Schneiderman Journal of Strategic Performance Measurement January 1999
- Slides: 20