Transcript The Effects of Field Rework Research Team RT

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)
Field Rework
Research Team RT - 153
Jim Atkinson
US Steel (Chairman)
Richard Calhoun
Phillips Petroleum Co.
Francis House
Kellogg Brown & Root
William Wright
Chemtex International
Andrew Beal
Air Products & Chemicals
May 16, 2001
Joe Beffa
Black & Veatch
Phill Stassi
Jacobs Engineering Group,
Inc.
Tom Falso
Eichleay
Dr. David Rogge (Researcher)
Oregon State University
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Presentation by
Dr. David F. Rogge
Program Coordinator
Construction Engineering
Management (CEM)
Oregon State University
Overview
RT-153 Objectives
1
Identify methods being used to track rework.
2
Identify the major causes of rework.
3
Identify practices that most effectively
minimize field rework.
4
Develop a tool (Field Rework Index, FRI) that
will foretell the degree of field rework.
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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
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Calculation
• % Field Rework =
Total direct cost of rework performed in field
Total field construction phase cost
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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
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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

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Rework Causes and Cures
Objectives 2 & 3
Analysis of 145 projects shows
strongest relationships between field
rework and:
 Owner organization alignment
 Engineering rework
 Constructability Commitment
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Rework Causes and Cures
Objectives 2 & 3
Conclusion: Improve the upstream
processes (pre-project planning and
engineering) and you will improve
the downstream process
(construction).
>> Not Rocket Science <<
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Predicting Field Rework
Objective 4
» The Field Rework Index (FRI)
» Accurately predict field rework % ?-- NO.
» Provide early warning?– YES.
» BONUS – Early warning for cost growth!
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Predicting Field Rework
Objective 4
» How the FRI works:
» Project team answers 14 questions
» Scores are summed
X1 + X2 … X14 = FRI
Xn = Team score for a question
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FRI Form
Points
1
2
3
4
5
Degree of alignment between the various
elements (departments, divisions, etc.) of the
owner's organization.
Degree to which project execution planning was
utilized.
Design FIRM's qualifications for the specific
project
Degree to which leaders of key design
disciplines have changed
Quality of field verification of existing conditions
by engineering
6 Quality of interdisciplinary design coordination
Quality of prequalification of vendors for the
7 project
8 Availability of vendor information for equipment
9 Degree to which design schedule is compressed
10 Level of overtime worked by the engineering firm
11 Level of design rework (repeating design work)
Commitment to constructability of the design
12 and construction team
Expected availability of skilled craftworkers to
13 the project
Expected level of construction contractor
14 overtime
Could not be
better 1
2
3
4
Could not be
5 worse
Completely
Could not be
better
No change at
all
Could not be
better
Could not have
been better
Could not have
been better
Could not be
more available
Not
compressed at
all
1
2
3
4
5 Not at all
Could not be
5 worse
Continual
5 change
Could not have
5 been worse
Could not be
5 worse
Could not have
5 been worse
Could not be
5 less available
Could not be
more
5 compressed
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
None
Could not be
lower
Total
Commitment
Readily
available
1
2
3
4
1
2
3
4
1
2
3
4
5 Very high level
Could not be
5 higher
Total lack of
5 commitment
1
2
3
4
5 Very scarce
None 1
2
3
4
5 Very high
TOTAL POINTS
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FRI Rework Danger Chart
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What are the Questions?
Three categories of questions:
 Team Planning & Organization
 Information Availability
 Staffing or Schedule Constraints
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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
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Information Availability
Field verification of conditions by
Engineering
Quality of interdisciplinary design
coordination
Availability of vendor information
Level of design rework
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Staffing or Schedule
Constraints
Compression of design schedule
Design overtime
Quality of Vendor prequalification
Availability of skilled craftworkers
Construction contractor overtime
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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)
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Background
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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
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The FRI Database
• Field rework measures from
completed projects
– Percent
– Subjective rating
• Retroactive evaluations
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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
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Database
•
•
•
•
•
153 total projects
144 with subjective rework ratings
137 with complete info. for FRI
109 with measured rework
107 with cost growth information
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Database
• Project size (US $ -- Construction
Phase)
–
–
–
–
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Minimum = $200 thousand
Maximum = $558 million
Mean = $58 million
Median = $17 million
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Database
Other
Industrial
28%
Chemical
Plants
35%
Mfg.
8%
Steel &
Aluminum
10%
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Oil and Gas
19%
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Factors Related to Field Rework
• FRI variables in descending order of
relationship with field rework rating
–
–
–
–
–
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Owner alignment
Design Rework
Constructability commitment
Interdisciplinary design coordination
Degree of project execution planning
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Factors Related to Field Rework
• FRI variables (continued)
–
–
–
–
–
–
–
–
–
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Design firm’s qualifications
Field verification
Expected craftworker availability
Expected construction overtime
Engineering overtime
Design leadership changes
Design schedule compression
Supplier prequalification
Supplier information
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How Strong Were the
Relationships?
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% Rework vs FRI
30
25
% REWORK
20
15
10
y = 0.1527x - 0.8121
R2 = 0.0817
5
0
0
10
20
30
40
50
60
FRI SCORE
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Rework Rating vs FRI
6
Very High
REWORK RATING
5
y = 0.0751x - 0.0274
R2 = 0.2578
High
4
Normal
3
Low
2
Very Low
1
0
0
10
20
30
40
50
60
70
FRI SCORE
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Database Analysis
• CONCLUSION: Accurate prediction of
percent field rework not possible.
• BUT, is early warning possible?
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Yes.
• For the database
– FRI >45
• 6.8% mean rework (16 projects)
– FRI < 30
• 2.5% mean rework (34 projects)
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Rework Rating for FRI <30
High or Very
High
Normal
2%
12%
Low or Very
Low
86%
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Rework Rating for FRI >45
Low or Very
Low
25%
Normal
10%
High or Very
High
65%
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But Wait, There’s More!
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FRI Warns of Cost Growth!
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FRI Score
Cost Growth
(%)
Number of
Projects
>45
25.8%
15
30-45
6.0%
54
<30
-7.8%
SAVINGS!
31
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Cost Growth versus FRI
2
ACTUAL COST/BUDGET COST
1.8
1.6
y = 0.012x + 0.6252
R2 = 0.2902
1.4
1.2
1
0.8
0.6
0.4
0.2
0
0
10
20
30
40
50
60
70
FRI
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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
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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%
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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
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Other Findings
• From the survey of CII companies
–
–
–
–
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87% track field rework
79% unfamiliar with QPMS
Only 2 of 17 trying QPMS discontinued
72% used field rework data to improve
engineering
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Other Findings
• Survey of CII companies (continued)
– Ways to minimize field rework
•
•
•
•
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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)
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Best Practices for Measuring
and Managing Field Rework
• Research Team studied “best practices”
• Companies identified by
– Questionnaire survey
– Research team
• Six site visits
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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.
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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
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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
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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
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Conclusions
• Field rework is significant cost for
industrial construction
– Average 4.4% of construction phase cost
– Median 3.0%
– Range of 0% - 25%
• FRI is simple tool providing early warning
– for field rework
– for cost growth
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Conclusions (cont’d)
• Efforts to minimize field rework must start
long before construction
–
–
–
–
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Improve Owner organization alignment
Minimize engineering rework
Constructability commitment
Other 11 variables of FRI
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Recommendations
• Use FRI on industrial projects to warn of
potentially high field rework and cost
growth
• Include FRI variable scores in project
summaries to build company-specific
database.
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Thank you.
Contact Dr. David Rogge with information or
questions:
Dept. of Civil Engineering
Oregon State University
Apperson Hall, Rm. 111
Corvallis, OR 97331-2302
Phone: (541)737-4351, FAX: (541)737-3300
E-mail: [email protected]
www.engr.orst.edu/~rogged
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