Forecasting and Forecasting and Minimizing Field Minimizing Field

ReworkRework

Effects of Field Rework Research Effects of Field Rework Research TeamTeam

2000 CII Annual Conference2000 CII Annual ConferenceNashville, TennesseeNashville, Tennessee

Jim AtkinsonJim AtkinsonU.S. SteelU.S. Steel

Effects of Field Rework Research TeamEffects of Field Rework Research Team

Field Rework Research TeamField Rework Research TeamRT-153RT-153

Richard CalhounRichard Calhoun Phillips Petroleum Co., ChairmanPhillips Petroleum Co., Chairman

Jim AtkinsonJim Atkinson U.S. SteelU.S. Steel

Andrew BealAndrew Beal Air Products & ChemicalsAir Products & Chemicals

Joe BeffaJoe Beffa Black & VeatchBlack & Veatch

Tom FalsoTom Falso EichleayEichleay

Francis HouseFrancis House Kellogg Brown & RootKellogg Brown & Root

David RoggeDavid Rogge Oregon State UniversityOregon State University

Phill StassiPhill Stassi Jacobs Engineering Group, Inc.Jacobs Engineering Group, Inc.

William WrightWilliam Wright Chemtex InternationalChemtex International

RT-153 ObjectivesRT-153 Objectives

• Identify methods being used to track Identify methods being used to track rework.rework.

• Identify the major causes of rework.Identify the major causes of rework.

• Identify practices that most effectively Identify practices that most effectively minimize field rework.minimize field rework.

• Develop a tool (Field Rework Index, Develop a tool (Field Rework Index, FRI) that will foretell the degree of FRI) that will foretell the degree of field rework.field rework.

DefinitionDefinition• Field Rework is:Field Rework is:

– Total direct cost of rework in the field Total direct cost of rework in the field regardless of initiating cause or source.regardless of initiating cause or source.

• Field Rework is not:Field Rework is not:– Change orders (not affecting previously Change orders (not affecting previously

installed work)installed work)

– Off-site fabricator errorsOff-site fabricator errors

– Off-site modular fabrication errorsOff-site modular fabrication errors

CalculationCalculation

Total direct cost of rework performed in fieldTotal direct cost of rework performed in field

Total field construction phase costTotal field construction phase cost

% Field Rework =% Field Rework =

How BIG is the Problem?How BIG is the Problem?

CII Survey DataCII Survey Data

•CII Research Summary 10-2CII Research Summary 10-2

12% rework on nine industrial projects12% rework on nine industrial projects

•1997 Benchmarking & Metrics Data Report1997 Benchmarking & Metrics Data Report

3.4% for 19 industrial projects3.4% for 19 industrial projects

•CII Effects of Field Rework Research TeamCII Effects of Field Rework Research Team

5.8% for 78 industrial projects5.8% for 78 industrial projects

Ranges between 0% and 27%Ranges between 0% and 27%

>4% Rework Avg 8% Cost Growth

<4% Rework Avg –1.5%–1.5% Cost Growth

Cost Growth vs. Field Cost Growth vs. Field ReworkRework

How Is Field Rework How Is Field Rework Tracked? Tracked? Objective 1Objective 1

• CII Quality Performance CII Quality Performance Management System (QPMS)Management System (QPMS)

– Adaptations of QPMS elementsAdaptations of QPMS elements

– Company internal systemsCompany internal systems

Research Report 153-11 will Research Report 153-11 will present a simplified system present a simplified system

for field rework tracking for field rework tracking only.only.

Rework Causes and CuresRework Causes and CuresObjectives 2 & 3Objectives 2 & 3

•Analysis shows strongest relationships Analysis shows strongest relationships between:between:

– Engineering rework and field reworkEngineering rework and field rework

– Owner organization alignment and field Owner organization alignment and field reworkrework

•Conclusion: Improve upstream processes Conclusion: Improve upstream processes (pre-project planning and engineering) (pre-project planning and engineering) and downstream processes and downstream processes

(construction) will improve.(construction) will improve.

Not Rocket Science Not Rocket Science

Predicting Field ReworkPredicting Field ReworkObjective 4Objective 4

• Project team answers 16 questions.Project team answers 16 questions.

• Scores are tabulated and multiplied Scores are tabulated and multiplied by a factor and summed.by a factor and summed.

AA11(X(X11) + A) + A22(X(X22) … A) … A1313(X(X1313) + Constant = ) + Constant =

FRIFRI

AAnn == FactorFactor

XXnn == Team score for a questionTeam score for a question

What Are the Questions?What Are the Questions?

• Three categories of questions:Three categories of questions:

– Team planning and Team planning and organizationorganization

– Information availabilityInformation availability

– Staffing or schedule Staffing or schedule constraintsconstraints

Team Planning and Team Planning and OrganizationOrganization

• Alignment within owner organizationAlignment within owner organization

• Owner’s attitude on scope changeOwner’s attitude on scope change

• Degree of use of project execution Degree of use of project execution planningplanning

• Change of design discipline leadersChange of design discipline leaders

• Commitment to using constructability Commitment to using constructability by design and construction contractorsby design and construction contractors

Information AvailabilityInformation Availability

• Design firm’s qualificationsDesign firm’s qualifications

• Field verification of conditions by Field verification of conditions by engineeringengineering

• Quality of interdisciplinary design Quality of interdisciplinary design coordinationcoordination

• Availability of supplier informationAvailability of supplier information

• Level of design reworkLevel of design rework

Staffing or Schedule Staffing or Schedule ConstraintsConstraints

•Compression of design scheduleCompression of design schedule

•Design overtimeDesign overtime

•Quality of supplier pre-qualificationQuality of supplier pre-qualification

•Availability of skilled craftworkersAvailability of skilled craftworkers

•Construction contractor shift workConstruction contractor shift work

•Construction contractor overtimeConstruction contractor overtime

When Will the FRI Be When Will the FRI Be Published?Published?

That depends on you...That depends on you...

• FRI database needs more FRI database needs more projects!projects!– Confidence in predictors of Confidence in predictors of

reworkrework

– Improve accuracy and reliabilityImprove accuracy and reliability

Will not be released unless Will not be released unless “statistical robustness” is “statistical robustness” is

demonstrated.demonstrated.

What Do I Do to Help?What Do I Do to Help?

Contact Dr. David Rogge:Contact Dr. David Rogge:

Dept. of Civil EngineeringDept. of Civil EngineeringOregon State UniversityOregon State UniversityApperson Hall, Rm. 111Apperson Hall, Rm. 111

Corvallis, OR 97331-2302Corvallis, OR 97331-2302Phone: (541)737-4351, Fax: (541)737-3300Phone: (541)737-4351, Fax: (541)737-3300

E-mail: David.Rogge@orst.eduE-mail: David.Rogge@orst.edu

Download copies of the FRI - EZ data collection Download copies of the FRI - EZ data collection form, complete, and return to Dr. Rogge.form, complete, and return to Dr. Rogge.

www.engr.orst.edu/~roggedwww.engr.orst.edu/~rogged