Onsite Design When and How Much Evaluating Onsite

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

Problem Statement Improve interface between design and construction. Five questions: 1. Does onsite design yield measurable benefits? 2. Which performance measures are improved? 3. When should onsite design be employed? 4. How much onsite design is recommended? 5. 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.

Data Collection Project roles or services provided by firms Construction Management 21% Construction 12% Procurement 24% Owner/Client 19% Design 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 Light Industrial Pharmaceutical Power Petroleum Pulp/Paper Chemical High Tech and Electronics Heavy Industrial Manufacturing Highway and Infrastructure Other Onsite Design (%) No Onsite Design (%) 4 4 8 10 28 4 10 0 14 16 0 2 100 11 10 0 8 10 0 17 0 11 15 2 16 100

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

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

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

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 1. Develop/utilize work breakdown structure. 2. Prepare, monitor, or maintain scope. 3. Address safety issues. 4. Define major equipment and material specifications. 5. Conduct constructability evaluation. 6. Process and facility planning. 7. Specification of fabricated items. 8. Develop preliminary design including PFDs and P&IDs. 9. Develop instrumentation and control drawings. 10. Develop, monitor, or execute start-up plan.

Top 5 Design Activities by Project Phase • Front End Planning • Design – Preliminary – Detailed • Procurement • Construction • Start-Up 1. Conduct constructability evaluation. 2. Define major equipment and material specs. 3. Prepare, monitor, or maintain detailed cost estimate. 4. Specify fabricated items. 5. Address safety issues.

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

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……. .

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 • Ease of start-up • Schedule Milestones • Plant output vs. design intent • Safety • Percent of rework • Usability of design documents

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 Step 2 Basis for Decision Performance Criteria Step 3 The OSD Tool identifies design activities by project phase.

What Is the Value? We can answer the questions!! • Does onsite design yield benefits? Yes! • Which performance measures are improved? 17 of 29 • When should onsite design be employed? • How much onsite design is recommended? See OSD Tool • How does the recommendation change by project phase? See OSD Tool Every 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: Phil Carman Procter & Gamble Panelists: Alan Aikman Anheuser-Busch Ed Back Clemson University Kevin Cook Murphy Company Alan Kerley Day & Zimmermann Les Shepherd GSA