EST-2578 Estimating in step with Advanced Work Packaging (AWP) for - - PowerPoint PPT Presentation

EST-2578 Estimating in step with Advanced Work Packaging (AWP) for enhanced project control

Lakshmanan Simhadri Yogesh Srivastava Glen Warren

PLEASE USE MICROPHONE FOR ALL QUESTIONS AND COMMENTS!

2

BIO of Lakshmanan Simhadri

President & CEO of

www.PPEinternational.com Discerning company providing estimating services to:

Owner / EPC / Module Yards / Construction Companies

• Something You Might Know About Me:

– Led several complex mega project estimates up to $40 billion TIC

• Something You Might Not Know About Me:

– Lived and worked in 4 countries in 3 continents; travelled to 123 cities in the world; absolutely love experiencing diverse cultures!

3

BIO of Yogesh Srivastava

• Something You Might Know About Me:

– Co-author & member of CII/COAA Research Team 272 that produced AWP Best Practice, Co-Chair of AWP Committee at COAA

• Something You Might Not Know About Me:

– Working extensively on sustainable development, technology for social causes and benefitting the society

4

Intergraph Process, Power & Marine Global Director, Construction and Fabrication Solutions Delivering Success Throughout the Life Cycle of Your Facility with Integrated & Data Centric Solutions

BIO of Glen Warren

“Industry Expert Emeritus”

• Co-chair of the COAA Construction Performance Committee

I have been involved as chair/co-chair of COAA committees for over 10 years

• Something You Might Not Know About Me:

I was co-chair of the CII Research Team RT272 that developed and published Advanced Work Packaging - which has been used as a guideline for implementing AWP globally

5

Agenda

• Intro to AWP
• Benefits of AWP
• Enhancing cost & schedule certainty
• Achieving superior quality estimates
• Emerging technology: Impacts on Estimating
• Questions

6

Advanced Work Packaging (AWP)

• AWP is a disciplined approach to improving project

productivity and predictability

CWP: Construction Work Package EWP: Engineering Work Package IWP: Installation Work Package

7

Source: Construction Industry Institute

Why Advanced Work Packaging (AWP)?

8

AWP gaining momentum Many owners and EPC companies are committed to AWP as the preferred way of project execution

9

Oil & Gas and Chemical process industries Power plants Mining & metals Infrastructure Commercial buildings

How does AWP make a difference?

Conceptualize Execution Basis early in Front-End Phase

• Procurement & Contracting

Strategy

• Modularization
• Path of Construction

Path of Construction aligned with

• Execution basis
• EWP
• CWP

Project Data Base and documents anchored by

• EWP
• CWP
• IWP

Well planned execution with AWP Process:

Constraint free release for construction, minimizing idle time

Consistent EWP and CWP designation across 3D models/drawings/documents/procurement RFQs Define IWPs in detailing phase

10

AWP doesn’t automatically bring cost certainty

Requires superior quality Estimate & Schedule

in sync

with EWP & CWP

11

ACHIEVING SUPERIOR QUALITY ESTIMATES

12

Budget and Schedule firmed up in Front End

13

Path of Construction

Need to produce predictable estimate & schedule right at this stage

BUDGET

Funding Approval

Achieving Predictable Estimate

14

EWP and CWP numbers Procurement and Contract numbers Coding for material, labor activities and

• ther attributes

Budget Estimate in step with AWP

Include identifiers in estimate detail

Precise Cost Control basis by CWP from approved budget

Achieving Predictable Estimate

Estimate quality determinants:

– Good quantity baseline – Stratified MTO allowances – Current market pricing – Well assessed Productivity/Location Factors – Well structured coding – Detailed scoping of Direct, Indirect and all other costs – Well assessed contingency and forward escalation – Management of change

15

Estimate alignment with EWP and CWP

MTO details need to include EWP and CWP numbers – Model downloads and manual take-offs should be identified with EWP and CWP – Supplemental quantities (e.g.) items not shown

• n P&IDs should be added using representative

standard take-offs

• such factored additions also carried out at

EWP and CWP levels

16

Producing more complete MTOs

Examples of interactive reports showing means of producing more complete MTOs:

17

Small bore piping quantity review Fitting & valves frequency review

Documented basis for MTO allowances

• MTO allowances should not be used as a means of

making up for grossly incomplete take-offs!

• No broad brush dollar allowances across the board!
• Stratified MTO allowance

– Progressively smaller allowances for larger sizes and for exotic material (expected to be better quantified in the base MTOs)

• Documented rationale of what have been quantified

well and what needs to be covered by MTO allowances Sample Reports:

18

Stratified MTO Allowances & Rationale

Coding – Key to enhance estimate usefulness

19

Construction Planning inputs by CWP Construction planning group provides:

– Planned start and finish dates by CWP and by Contract

Estimating provides to Construction Planning:

– Quantified labor operations by CWP and by Contract – Budget hours by CWP and by Contract – Breakdown of hours by Prime Account – Cost Control charts customized to Project Controls needs

20

Sample Reports:

Construction Planning Inputs - Visuals

Procurement and Contract Budget Reports

• MTO details summarized by every

Procurement RFQ

(RFQ numbers mapped to code of accounts)

• MTO details summarized by Contract

(labor activities by code mapped to contract number)

21

Effective Cost Control Reports Desired Cost Control Reports derived from actual estimate details

– Labor activity quantities and budget hours by CWP – Planned start & finish dates of CWPs – Precise budget info in the control base reports Deviations from budget values become apparent very early thus facilitating corrective action in time

Sample Reports:

22

Performance Monitoring

Comprehensive Estimate Reviews

Estimate reviews are often compromised due to time constraints

• Interactive estimate review reports provide pre-

formatted info generated from details

• Enables reviewer to drill down and scrutinize effectively

23

Estimate Review Report

Sample Reports:

Greater confidence and buy-in

Predictable Estimates – Summing up..

More rigorous ways suggested in this presentation will drive cost certainty through:

• 1. Completeness in quantification
• 2. Obtaining project specific current market pricing
• 3. Proper assessment of Productivity/Location Factor
• 4. Coding of material, labor, RFQs and Contract for

close monitoring & control

24

Predictable Estimates – Summing up..

• The basic principles need to follow through to Direct

Costs, Indirect Field Costs, Home Office Costs and all

• ther costs
• Proper assessment of contingency and forward

escalation are the last pieces of a predictable estimate

• Keeping up with management of change

25

EMERGING TECHNOLOGY: IMPACTS ON ESTIMATING

Emerging Technology – Impact on Estimating

Ability to process vast amounts of data meaningfully Intelligent reviews by Data Visualization Tools

27

3D Technology for Early Alignment on EWP/CWP

Physical Subdivision Blocks Hierarchy Blocks Assignment Manage Intersections Blocks Hierarchy Logical Grouping Assemblies Hierarchy Workcenter Assignment Assembly Sequencing Deliverables Weight & CG Check Manufacturability Drawings & BOM Assemblies Hierarchy Outputs

Visualizing Engineering Work Volumes for EWP/CWP in 3D After WBS, additional & flexible hierarchy in the system

28

Early definition, visualization and alignment

Breaking and organizing the project from a prefabrication and construction perspective 3D Engineering Work Volumes For generating quantities with the EWP intelligence from the model

29

Further break-down

30

3D Model Intelligence

31

Engineering Work Volume (Block) Assignment Service – Parts are automatically assigned to the correct planning hierarchy level – Early indication of Quantity / Total Weight / COG

32

Future Developments

• Model downloads with substantially complete MTOs at

different stages of modelling

• Can be achieved by intelligence built in to 3D modelling

tools to supplement modelled in-puts with rule based additions

33

CONCLUSION

Foundation for Cost Certainty & Productivity

AWP Based Execution EWP/CWP Cost Certainty

35

High performance through AWP work process Need of the hour for successful delivery of complex projects:

“AWP driven Data Centric Execution” And “Predictable estimate”

36

QUESTIONS/COMMENTS? (PLEASE USE MICROPHONE)

37