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An Investigation of Field Rework in Industrial Construction

An Investigation of Field Rework in Industrial Construction. Capsule Summary of Research Funded by the Construction Industry Institute (CII) Directed by the “Causes & Effects of Field Rework Research Team” (RT-153) Conducted by Oregon State University (OSU). Jim Atkinson US Steel (Chairman)

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An Investigation of Field Rework in Industrial Construction

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  1. An Investigation of Field Rework in Industrial Construction

  2. Capsule Summary of ResearchFunded by theConstruction Industry Institute (CII)Directed by the “Causes & Effects of Field Rework Research Team” (RT-153)Conducted by Oregon State University (OSU)

  3. Jim Atkinson US Steel (Chairman) Richard Calhoun Phillips Petroleum Co. Francis House Kellogg Brown & Root William Wright Chemtex International Andrew Beal Air Products & Chemicals Joe Beffa Black & Veatch Phill Stassi Jacobs Engineering Group, Inc. Tom Falso Eichleay Dr. David Rogge (Researcher) Oregon State University Field ReworkResearch Team RT - 153 COAA - Field Rework in Industrial Construction

  4. Presentation byDr. David F. RoggeProgram CoordinatorConstruction Engineering Management (CEM)Oregon State University

  5. Overview

  6. RT-153 Objectives • Identify methods being used to track rework. • Identify the major causes of rework. • Identify practices that most effectively minimize field rework. • Develop a tool (Field Rework Index, FRI) that will foretell the degree of field rework. COAA - Field Rework in Industrial Construction

  7. Definition Field Rework is: • Total direct cost of rework in the field regardless of initiating cause or source. Field Rework is not: • Change orders for new work • Off-site fabricator errors • Off-site modular fabrication errors COAA - Field Rework in Industrial Construction

  8. Calculation • % Field Rework = Total direct cost of rework performed in field Total field construction phase cost COAA - Field Rework in Industrial Construction

  9. How BIG is the Problem? CII Data • Research Summary 10-2 (1989) • 12% rework on 9 industrial projects • Benchmarking & Metrics Data Report (1997) • 3.4% for 19 industrial projects • This Research • 4.4% for 109 industrial projects • Ranges between 0% and 25% • High levels impact schedule COAA - Field Rework in Industrial Construction

  10. How is Field Rework Tracked?Objective 1 • CII’s Quality Performance Management System (QPMS) – CII 10.3 • Measures field rework and design rework • Measures cost of prevention and appraisal • Adaptations of QPMS elements • Company internal systems • RT-153 Final Research Report will present a simplified system for field rework tracking only COAA - Field Rework in Industrial Construction

  11. Rework Causes and CuresObjectives 2 & 3 Analysis of 145 projects shows strongest relationships between field rework and: • Owner organization alignment • Engineering rework • Constructability Commitment COAA - Field Rework in Industrial Construction

  12. Rework Causes and CuresObjectives 2 & 3 Conclusion: Improve the upstream processes (pre-project planning and engineering) and you will improve the downstream process (construction). >> Not Rocket Science << COAA - Field Rework in Industrial Construction

  13. Predicting Field ReworkObjective 4 • The Field Rework Index (FRI) • Accurately predict field rework % ?-- NO. • Provide early warning?– YES. • BONUS – Early warning for cost growth! COAA - Field Rework in Industrial Construction

  14. Predicting Field ReworkObjective 4 • How the FRI works: • Project team answers 14 questions • Scores are summed X1 + X2 … X14 = FRI Xn = Team score for a question COAA - Field Rework in Industrial Construction

  15. FRI Form COAA - Field Rework in Industrial Construction

  16. FRI Rework Danger Chart COAA - Field Rework in Industrial Construction

  17. What are the Questions? Three categories of questions: • Team Planning & Organization • Information Availability • Staffing or Schedule Constraints COAA - Field Rework in Industrial Construction

  18. Team Planning & Organization • Alignment within the Owner’s organization • Degree of use of Project Execution Planning • Design firm’s qualifications • Change of design discipline leaders • Commitment to using Constructability by design and construction contractors COAA - Field Rework in Industrial Construction

  19. Information Availability • Field verification of conditions by Engineering • Quality of interdisciplinary design coordination • Availability of vendor information • Level of design rework COAA - Field Rework in Industrial Construction

  20. Staffing or Schedule Constraints • Compression of design schedule • Design overtime • Quality of Vendor prequalification • Availability of skilled craftworkers • Construction contractor overtime COAA - Field Rework in Industrial Construction

  21. The FRI is available through CII The Field Rework Index: Early Warning for Field Rework and Cost Growth Research Summary 153-1 February 2001 (http://construction-institute.org) COAA - Field Rework in Industrial Construction

  22. Background COAA - Field Rework in Industrial Construction

  23. Why Does the FRI Work? • Research Methodology • Industry survey • Attitudes and practices • Identify “best practices” • 85 responses from 46 organizations • Focus group • Database of actual project data • Evaluate relationships • Identify variables for early warning COAA - Field Rework in Industrial Construction

  24. The FRI Database • Field rework measures from completed projects • Percent • Subjective rating • Retroactive evaluations COAA - Field Rework in Industrial Construction

  25. Predictor Variables • Selection process • Industry survey analysis • Research team brainstorming • Focus group  63 variables • Forced ranking  44 variables • Analysis of initial 43-project database 19 variables • Final FRI tool  14 survivor variables COAA - Field Rework in Industrial Construction

  26. Database • 153 total projects • 144 with subjective rework ratings • 137 with complete info. for FRI • 109 with measured rework • 107 with cost growth information COAA - Field Rework in Industrial Construction

  27. Database • Project size (US $ -- Construction Phase) • Minimum = $200 thousand • Maximum = $558 million • Mean = $58 million • Median = $17 million COAA - Field Rework in Industrial Construction

  28. Database COAA - Field Rework in Industrial Construction

  29. Factors Related to Field Rework • FRI variables in descending order of relationship with field rework rating • Owner alignment • Design Rework • Constructability commitment • Interdisciplinary design coordination • Degree of project execution planning COAA - Field Rework in Industrial Construction

  30. Factors Related to Field Rework • FRI variables (continued) • Design firm’s qualifications • Field verification • Expected craftworker availability • Expected construction overtime • Engineering overtime • Design leadership changes • Design schedule compression • Supplier prequalification • Supplier information COAA - Field Rework in Industrial Construction

  31. How Strong Were the Relationships? COAA - Field Rework in Industrial Construction

  32. % Rework vs FRI COAA - Field Rework in Industrial Construction

  33. Rework Rating vs FRI COAA - Field Rework in Industrial Construction

  34. Database Analysis • CONCLUSION: Accurate prediction of percent field rework not possible. • BUT, is early warning possible? COAA - Field Rework in Industrial Construction

  35. Yes. • For the database • FRI >45 • 6.8% mean rework (16 projects) • FRI < 30 • 2.5% mean rework (34 projects) COAA - Field Rework in Industrial Construction

  36. Rework Rating for FRI <30 COAA - Field Rework in Industrial Construction

  37. Rework Rating for FRI >45 COAA - Field Rework in Industrial Construction

  38. But Wait, There’s More! COAA - Field Rework in Industrial Construction

  39. FRI Warns of Cost Growth! COAA - Field Rework in Industrial Construction

  40. Cost Growth versus FRI COAA - Field Rework in Industrial Construction

  41. FRI Warns for Field Rework and Cost Growth • For Database • Warning for field rework and for cost growth about equal • FRI target of <30 is good for both COAA - Field Rework in Industrial Construction

  42. RECAP: FRI Development • 63 possible predictor variables identified • Analysis of 145 project database reduced variables to 14. • Survivor variables form FRI • Projects with FRI’s <30 • had low or very low rework • cost growth was negative • Projects with FRI’s >45 • two of three had high or very high rework • cost growth was >25% COAA - Field Rework in Industrial Construction

  43. Other Findings • Field rework metrics are not standardized • Metrics used • % of actual construction phase cost • % of total installed cost • % of labor hours or dollars (by craft or not) • Other variations • Significant differences in magnitude • Example: 5% of labor may be 2% of construction and 0.5% of TIC COAA - Field Rework in Industrial Construction

  44. Other Findings • From the survey of CII companies • 87% track field rework • 79% unfamiliar with QPMS • Only 2 of 17 trying QPMS discontinued • 72% used field rework data to improve engineering COAA - Field Rework in Industrial Construction

  45. Other Findings • Survey of CII companies (continued) • Ways to minimize field rework • 98% - up-front planning and scope definition • 88% - constructability • 48% - establish goals • 31% - use PDRI (CII’s Project Definition Rating Index, Pre-Project Planning Tools: PDRI and Alignment, Research Summary 113-1) COAA - Field Rework in Industrial Construction

  46. Best Practices for Measuring and Managing Field Rework • Research Team studied “best practices” • Companies identified by • Questionnaire survey • Research team • Six site visits COAA - Field Rework in Industrial Construction

  47. Earning Rework Incentive Best Practice Example: • Contract allowed increased profit through reduced field rework • Examine, flow chart, and improve engineering processes • Use of 3D-CAD • Use of site photogrammetry • Incentives earned. COAA - Field Rework in Industrial Construction

  48. QPMS for 10 Years Best Practice Example: • CII Research Summary 10-3 introduced QPMS in 1989 • Measures field rework and design rework • Measures cost of prevention and appraisal • One company has used extensively • Average rework of 10.1% in ’88 • Average rework of 2.6% in ’98 • Revised procedures • Software to facilitate • Lessons learned COAA - Field Rework in Industrial Construction

  49. Field Rework Incentives in Design Contracts Best Practice Example • Owner uses field rework measures • as factor in awarding design contracts • as incentive for fees in design contracts COAA - Field Rework in Industrial Construction

  50. Construction Contractor Best Practice Example • Construction contractor tracks field rework • Norms by design firm • Constructor-caused • For continuous improvement • No cost to owner – even when cost-reimbursable COAA - Field Rework in Industrial Construction

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