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CII – CMAABest Practices – Best Practitioners
Wayne A. CrewDirector, CII
CMAA 2010 Owner’s ForumAtlanta, GA • May 4, 2010
• A consortium of leading owners, contractors & suppliers, and academia working to improve the constructed project and the capital investment process.
• An organized research unit of the Cockrell School of Engineering at The University of Texas at Austin
History
• Established as a recommendation from The BusinessRoundtable Construction Industry Cost Effectiveness (CICE) Project to address:
– construction research
– fragmentation of the industry
• Founded in 1983 by 28 companies; now over 100 members.
• First to bring research to the engineering-construction world.
• First owner-contractor-academic research collaboration for the constructed project.
Mission• Enhance business effectiveness and
sustainability of the capital facility life cycle
• Expand the global competitive advantage of its members through:
– active involvement and participation
– effective use of CII research findings, including CII Best Practices.
PurposeTo measurably improve the delivery of capital facilities.
CII Principles
• Place a premium on safety, ethics, continuousimprovement, and leadership.
• Owner/contractor member balance.
• Promote a high level of knowledge transfer.
• Provide leadership development through member participation.
• High member involvement; small professional staff.
Owner MembersAbbottAir LiquideAir Products and ChemicalsAlcoaAmerenAmerican Transmission Co.Anheuser-Busch InBevAramco ServicesArcher Daniels Midland Barrick GoldBP AmericaBristol-Myers SquibbCargillChevronCITGO PetroleumCodelco-ChileConocoPhillipsConstellation EnergyDFW International AirportDow Chemical
DuPontEastman ChemicalEli LillyExxonMobilGlaxoSmithKlineHovensaInternational PaperKaiser PermanenteMarathon OilNASANaval Facilities Engineering
CommandNOVA ChemicalsOccidental PetroleumOntario Power GenerationPetrobrasPraxairProcter & GambleProgress EnergySaudi Basic Industries Corp
(SABIC)
Sasol TechnologyShell Global Solutions USSmithsonian InstitutionSouthern CompanySunocoTennessee Valley AuthorityTransCanada Corp.U.S. Architect of the CapitolU.S. Army Corps of
EngineersU.S. Dept. of Commerce/
NIST/Building & Fire Research Lab
U.S. Dept. of EnergyU.S. Dept. of Health &
Human ServicesU.S. Dept. of StateU.S. General Services
Administration
Contractor MembersAker SolutionsAlstom PowerAMECAtkins Faithful + GouldAZCO Baker Concrete ConstructionBarton MalowBateman EngineeringBechtel GroupBentley SystemsBIS Frucon Industrial Svcs.Black & VeatchBowen EngineeringBurns & McDonnellCB&ICCC GroupCDI Engineering SolutionsCH2M HILLCSA Group
Day & ZimmermannDresser-Rand CompanyEmerson Process Mgt.eProject ManagementFluorFoster Wheeler USAGrinaker-LTA/E+PCGross Mechanical GS E & CHargrove E & CHiltiJacobsJMJ AssociatesKBRLauren E & ConstructorsM. A. MortensonMcDermott InternationalMustangOmniware
Oracle USAParsonsPathfinderPegasus Global HoldingsR. J. MyckaS&B E & ConstructorsThe Shaw GroupSiemens EnergySNC-LavalinTechnipURS CorporationVictaulic CompanyWalbridgeWanzek ConstructionThe Weitz CompanyWorleyParsonsZachryZurich
University of AlabamaArizona State UniversityAuburn UniversityBucknell UniversityUniversity of California-BerkeleyCarnegie Mellon UniversityUniversity of CincinnatiClemson UniversityUniversity of Colorado-BoulderColorado State University Columbia UniversityEast Carolina UniversityUniversity of FloridaGeorgia Institute of TechnologyUniversity of HoustonUniversity of IllinoisIowa State UniversityUniversity of KansasUniversity of KentuckyLehigh UniversityUniversity of MarylandUniversity of MichiganMississippi State University
Universities involved 1983-2009University of New MexicoNorth Carolina State UniversityNorth Dakota State UniversityOklahoma State UniversityOregon State UniversityThe Pennsylvania State UniversityUniversity of PittsburghPurdue UniversityPolytechnic UniversitySan Diego State UniversitySan Jose State UniversityStanford UniversityState University of New York-AlbanyVanderbilt UniversityVirginia Polytechnic Institute and State University Texas A&M UniversityThe University of Texas at Austin
(CII headquarters & founding university)University of WashingtonUniversity of WaterlooUniversity of Wisconsin-MadisonWorcester Polytechnic Institute
CII Knowledge Processes
Knowledge
Management
Knowledge
AssessmentKnowledge
Dissemination
Knowledge
Creation
Research to define best practices, breakthroughs, and industry norms.
Dissemination through publications, implementation guides, educational materials, workshops, and conferences.
Assessment of the impact of CII practices through benchmarking.
Management, organization, and assessment of the 500-plus CII documents and publications.
A world-class leadership program for senior executive candidates in the engineering and construction industry
Program DescriptionThis intense custom-designed program offers the in-depth knowledge that will allow participants to understand and develop the broad range of leadership skills needed to realize their potential as contenders for the top capital facilities positions in their companies. The program’s innovative curriculum is comprehensive and integrated. It will fine-tune the business acumen of participants, develop executive skills, and enhance their abilities to enrich their organizations’ cultures and drive to profitability.
The curriculum focuses on how to: •Enhance executive leadership capabilities and strategic business skills. •Build collaborative relationships between owners and contractors, and with peers across the industry.•Benchmark on best practices and network with leaders from both owner and contractor companies.
10
2010 CII Annual ConferenceAugust 3-5, 2010
• Over 500 Top Industry Attendees• Presentations on:
– New CII research
– CII product implementation case studies
• New CII Initiatives– Professional Development
– Implementation
– Benchmarking
– Other
• Notable Speakers
Grand Cypress ResortOrlando, Florida
Performance Improvement Workshop Fall 2010
Focused on:• CII Product Implementation• Best Practices• New Practices
• Case Studies• Networking
Houston, TexasNovember 8-10, 2010
Benchmarking Conferences & Workshops
• Essential for implementation of reliable benchmarking process.
• Updates improvements in the online system
• Explains new metrics and interactive reports
• Delivers annual training needed to stay in tune with improvements
• Ensures greatest benefit from this valuable CII resource.
June 2-3, 2010
Abbott Park (Chicago), IL
Hosted by Abbott
High
0.4
0.3
0.2
0.1
0
-0.1
-0.24th Quartile 2nd Quartile 1st Quartile
Practice Use
Pe
rfo
rma
nc
e
BetterBetter
3rd Quartile
Low
Value of Best Practices
Use of Best Practices
• Company Level VBP
• Project Level VBP
Corporate Strategy
Project Level Use of Best Practices (Tactic)
Project Performance (Bottom Line)
· Improvement culture
· Funding· Incentive· Dedicated team· …
· Front End Planning
· Zero Accident Techniques
· Constructability· ...
· Cost· Schedule· Safety· Quality· Change
Corporate CultureCulture Actively Supports the Implementation of Best Practices?
– Results of Both Owners and Contractors
6.96.2
0
1
2
3
4
5
6
7
8
9
10
YesN = 27
NoN = 16
Plan
ning
11.3%
6.8
4.2
0
1
2
3
4
5
6
7
8
9
10
YesN = 23
NoN = 23
Executi
on 61.9%
Corporate CultureCulture Actively Supports the Implementation of Best Practices?
– Results of Both Owners and Contractors
Owners’ Use of Front End Planning
Owners’ Use of Partnering
Owners’ Use of Change Management
Owners’ Use of Planning for Startup
Contractors’ Use of Constructability
Contractors’ Use of Planning for Startup
Capital Projects Leadership
• McKinsey & Co. (1998)
“The management of capital investment has an
enormous effect on profitability and competitiveness,
yet few companies do it effectively. We believe that
the use of evaluation tools, disciplined processes,
and best practices can help companies trim capital
spending by up to a quarter without reducing capacity
or functionality - and improve their operating costs
and revenues through better investment decisions.”
CII – CMAA
Mission StatementImprove delivery of capital facilities in all settings by
promoting the professional practice of Construction and Program Management in conjunction with the broadest possible application of recognized industry Best Practices.
25
Best Practice – Best Practitioner
CII• Dedicated to organizational transformation.
• Promotes a culture of high-quality execution in contractor (architect/engineer companies, construction companies) and owner organizations.
CMAA• Emphasis on individual
excellence.
• Established Certified Construction Manager credential.
• Solid Standards of Practice. 26
CII – A Legacy of Industry Leadership
Total Recordable Incidence Rate (TRIR)
14.30 14.20
13.00 13.1012.20
11.8010.60
9.909.50 8.80 8.60 8.30 7.90
7.10 6.80 6.40 6.30 5.90 5.40
7.196.12
5.324.31
3.44 3.002.66 2.30
1.60 1.59 1.671.03 1.02
1.23 1.16 0.88 0.72 0.58 0.68 0.53
0
2
4
6
8
10
12
14
16
18
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
325 413 477 497 527 613 644 770 518 765 995 936 1,117 1,073 1,129 1,195 1,333 1,297 1,766 1,889
To
tal R
ec
ord
ab
le In
cid
en
ce R
ate
(TR
IR)
Industry*
CII
*OSHA Construction Division, NAICS 236-238, SIC 15-17 Reflects OSHA Reporting Change
Year and Work Hours (MM)
44 Companies Reporting as of July 15, 2009
CII – A Legacy of Industry Leadership
Days Away, Restricted, and Transfer (DART) Rate
44 Companies Reporting as of July 15, 2009
6.80 6.79
6.105.80
5.50 5.50
4.904.50
4.404.00
4.20 4.10 4.00 3.803.60 3.40 3.40
3.202.80
1.90 1.551.45 1.14
0.63 0.810.55 0.45 0.31 0.41 0.27 0.26 0.23
0.460.36 0.33 0.25 0.21 0.23 0.18
0
1
2
3
4
5
6
7
8
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
325 413 477 497 527 613 644 888 591 763 1,122 936 1,117 1,073 1,129 1,301 1,419 1,100 1,724 1,775
DA
RT
(LW
CIR
) In
cid
en
ce
Ra
te
Industry*
CII
*OSHA Construction Division, NAICS 236-238, SIC 15-17 Reflects OSHA Reporting Change
Year and Work Hours (MM)
The Legacy Continues
Best Practices – Best Practitioners
Thank you for your attention!
Wayne A. Crew, P.E.Director
Construction Industry Institute3925 W. Braker Lane (R4500)
Austin, TX 78759-5316(512) 232 3003
