1. existing processes and business environment business environment –u.s census on the...

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1. Existing processes and business environment Business environment U.S census on the Construction Industry Contract type. Existing processes Existing process Current Used Technologies Process mode

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Page 1: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

1. Existing processes and business environment

• Business environment– U.S census on the Construction Industry– Contract type.

• Existing processes– Existing process– Current Used Technologies– Process mode

Page 2: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Business Environment

• 1997 Economic Census (US census Bureau)

IndustryTotal number of

employees

Value of construction work

(US $1,000)

Value added

(US $1,000)

Construction 5,664,853 845,543,552 383,845,728

Building, developing, &

general contracting1,342,953 381,641,600 120,322,720

Heavy construction 880,400 127,841,600 68,775,976

Special trade contractors

3,441,500 336,060,352 194,747,056

Page 3: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Business Environment

The construction industry is very unique because…

1. It has many characteristics common to both manufacturing and service industries.

2. It is fragmented and sometimes divisive.

3. It is very custom-oriented.

4. It is incentive-oriented.

As a result… The construction industry highly depends on

personnel rather than technologies. Technologies play the role to support making

decisions during industry’s whole phases.

Page 4: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Business Environment

• Construction Management has emerged as a strong alternative to traditional construction contracting procedures.

• Construction manager represent owner’s profits in the current construction industry that is getting more complicated and specialized.

• Construction management treats the project planning, design, and construction phases as integrated tasks.

• So, construction manager’s great role is to understand each specialized areas and to make diverse information into optimized information while reducing resources and making more benefits.

Page 5: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Business Environment

CM Agent1%

CM at risk30%

Design-build4%

Competitivesealed

proposals46%

Design-bid-build19%

• Example : Market share of CM type contracts.

Texas K-12 and public higher education projects

(source: Effects of State Legislation on Contracting Methods of Public Schools and Universities)

Directly or indirectly, construction management plays a big role in 81% of projects.

Page 6: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Business Environment

• Relationships of project teams at CM at Risk

Owner

Designer

Construction Manager

Owner

Designer

Contractual: Functional:

(Source: Professional Construction Management)

IndependentContractors

Construction Manager

IndependentContractors

Page 7: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Existing Processes

• Existing Working Processes

Planning Process

Constructability, Procurability,

Commissioning, Operability, Maintainability, Health, Sustainability Analyses

during Planning and Design

Design ProcessPreliminary Studies Plans and Specifications

Construction Process

Evaluation of Project Construction Performance

Plans and Specifications

Operations & Maintenance Process

Evaluation of Facility Operation Performance

Page 8: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Existing Processes

• Current Used Technologies

Planning Phase Owner Team

1. Assessment & Objectives Setting

2. Preliminary, planning & Funding

3. Project Definition Package

Design Phase Design Team

(Engineers/Architects)

1. Conceptual / Schematic Design

2. Design Development

3. Contract Documents

Construction Phase Construction Team (Construction Managers /General Contractors/Subcontractors)

1. Bid or Negotiate, & Award

2. Construction Planning

3. Execution

4. Start-up

Operation Phase Operations Team

(Users/Operators)

1. Operation/Management / Maintenance

2. End of Service Life Decision

For Drafting & Rendering

AutoCAD, ArchiCAD

3D-Studio, FormZ

……

For Planning

Primavera Project Planning, MS Project

For Estimating

Dodge, MS Excel

For Contracting

Primavera Expedition

Technologies

Page 9: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Existing Processes

• Project Documentation Problems

(Source: CIFE Summer Program)

Page 10: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Existing Processes

(Source: CIFE Summer Program)

• Current Process-Issues / Problems

Page 11: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Existing Processes

• Current Technologies and Processes’ Problems

– Lack of understanding• Danger not to reflect owner’s intend.• Inefficient work due to misunderstanding about

projects.

– Not integrated data between each applications• Rework to interpret.• Problems caused by misunderstanding different

areas’ works.

Page 12: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

• Conditions of new information technologies

• Available and suitable technologies– Process model– Advantages

• Assessment of the technologies– Benefit– Obstacle

2. Available and suitable information technologies

Page 13: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Conditions of new alternative technologies

1. They can be easily understood without special training.

Owner needs to know what’s going on.

2. They are also easily understood by computer.

The information has to be understood by both people and computer.

3. They must integrate each area’s tasks.

We need the tool that can reduce meaningless works like counting numbers or copying data.

Page 14: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Available and suitable information technologies

1. 4D CAD System– 4D CAD system is for integrating the information

within the design and construction phases.

– 4D CAD is now been developing to

1. manage and minimize risk throughout all stages of a construction project

2. effectively communicate the design, schedule, and other project data

3. rapidly explore design and construction alternatives (By Martin Fischer, Kathleen McKinney Liston)

Page 15: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Available and suitable information technologies

• Applications based on 4D CAD– The prototype of 4D CAD developed by 4D CAD

research team of Stanford University.– ProVis developed by VIRCON– Revit developed by AutoDesk

2. Information networking - VERA

Page 16: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Available and suitable information technologies

• Process Model of 4D-CAD Models

AutoCAD

dwg files

.P3

file

Start with

Primavera

AutoCAD

dxf

.pm

Multigen

Alias

Wavefront

.EGG

Egg-

VRML

translator

.wrl

file

VRML 4D

-Appli.

.VFD

Cave

VRML 4D

-Applet

Ended with:

Prototype developed to import VRML files and schedule content and provide basic 4D functionality in an on-line environment

Internal translator was updated for input into Java/4D application

Application was written to import VFD format into CAVE to generate relationships between 3D components and activities

Hierarchical 3D file format

Commercial tool

Prototype 4D tools

(Source: CIFE Summer Program)

Page 17: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Available and suitable information technologies

• System Architecture of 4D-CAD (Pro Vis)

RDBMS(SQL)

Information Structure(Uniclass)

MS Project

ODBC

User Interface

VBASpreadsheets

Costing Models

Virtual Reality

AutoCAD

VBA

4D Simulator(ProVis)

VBA

VBA: Visual Basic for Applications

ODBC: Open Database Connectivity

RDBMS: Relational Database Management System

VBA: Visual Basic for Applications

VBA: Visual Basic for Applications(Source: VIRCON )

Page 18: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Available and suitable information technologies

• Advantages of 4D-CAD

1. To reduce time and cost from design to construction phases.

2. To help communications and understanding between each teams.

3. To improve the productivities and to reduce meaningless works.

As a result…– Owners can expect to save the cost and to get

higher value.– Each teams can expect to earn more money by

improving their productivities.

Page 19: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Assessment of the Technologies

• Benefits for owners– To save the cost and time– Better quality of a final product– Better understanding about the project

• Benefits for design teams– To reduce planning time and cost– To communicate with each teams easily– To prevent errors and mistakes– To reduce rework

Page 20: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Assessment of the Technologies

• Benefits for construction manager teams– To reduce the time and cost– To build database easily– To increase productivity– To reduce wasted materials– To expect constructability

Page 21: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Screenshot of InVIznOne

4D model of The Helsinki University of Technology

Page 22: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Screenshots of ProVis (1)

Page 23: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Screenshots of ProVis (2)

Page 24: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

3. A framework target plan

• The characters of the cases which adopted 4D-CAD

• The cases implemented by 4D-CAD

• A long term IT adoption goals

Page 25: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The characters of the cases which adopted 4D-CAD

• 4D-CAD Cases (1)

Project Facility type Phase Contract Value

Disney’s California Adventure-Paradise Pier

Amusement Facility Project planning, Bid -

Paradise Pier-Seafood Restaurant

Restaurant Construction Administration

-

Paradise Pier Hotel Façade Renovation

Hotel Renovation Planning, Construction -

Disney Concert Hall Concert Hall Construction $200 Million

Hospital Hospital Construction $400 Million

Lab/Office Facility Lab/Office Pre-Construction $100 Million

Office Complex Complex Bid $259 Million

Bay Street Project Theatre Planning, Construction -

Page 26: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The characters of the cases which adopted 4D-CAD

• 4D-CAD Cases (2)

Project Facility type Phase Contract Value

Sequus Pharmaceuticals Pilot Plant

Multi-Purpose Planning, Construction -

School of Health, University of Teeside

Educational Institute– University

Planning, Construction -

Westmorland Primary School, Stockport

Educational Institute-High School

Planning, Construction -

Page 27: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The characters of the cases which adopted 4D-CAD

• Post-Construction AnalysisRountree Plumbing Paragon Mechanical Rosendin Electric

Process Piping/HVAC Wet HVAC Dry Electrical

Contract Value $2,018,937 $1,071,237 $488,414

Increased Design Costs

30% 20-30% 20-30%

Number of Change Orders

6 1 3

Reason for Change Orders

4-Owner Requested

1-Value Engineering

1-Unforeseen Condition

1-Owner Requested 3-Owner Requested

Percentage of Total Cost

-1.0028% 0.9958% 0.9746%

Productivity Significantly increased Much more Productive No Difference

Rework Dramatically reduced Minimal No Difference

Profitability Same Same Less

Expects greater return with increased use

Expects greater return with increased use

Increased design time with less benefit from coordination

(Source: Martin Fischer, CIFE)

Page 28: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The characters of the cases which adopted 4D-CAD

• Based on the cases, 4D-CAD makes more values from the projects on following conditions.

The projects have…– Many stakeholders and players.– Complicate functions.– Large scales.

and…– Need much more information.– Adopt new technologies.

Page 29: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• The project of the mine facilities in Chile (1)– Case study description

• A huge new copper concentrator facility to be built some 10 kilometers from the existing facilities

• It required– A 9.6 kilometer overland conveyor– An 164-kilometer pipeline to carry copper

concentrate– Living and recreation facilities for the

approximately 7,500 workers on site– The covered building to hold some 400,000

metric tons of ore

Page 30: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• The project of the mine facilities in Chile (2)– Case Description (2)

• It also required– A system of conveyor belt hoppers and

chutes the rock and deliver it to an 11.6-meter-in-diameter, 26,000-HP semi-autogenous grinding mill, three 18,000-HP ball mills, and a set of 110 flotation cells.

Page 31: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• The project of the mine facilities in Chile (3)

The Model of the Case Study Project

Page 32: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• The project of the mine facilities in Chile (4)– Benefits

• Reduction of 10% in cost• Reduction in schedule, from 18 to 16 months• Improved design reflected in a reduction in

errors during construction• Reductions in uncertainty and risk reflected in

90% of fulfillment of the construction schedule

(Source: 4D-PS: Putting IT new work process into effect)

Page 33: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• The Bay Street Project Case, Emeryville, CA (1)– Activities

• Start was 2D data and schedule with more than 200 activities for a office complex more than 1,000,000 SF.

• 252 hours of InVizOne 3D modeling services.• 200 hours of InVizOne 4D modeling services.

– Benefits• Discovered opportunity to save $3 million in

reduced cost for unexcavated courtyards• Discovered opportunities to save $5 million in

reduced cost overall

Page 34: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• The Bay Street Project Case, Emeryville, CA (2)

The Models of the Case Study Project

Page 35: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The cases implemented by 4D-CAD

• As a result of the smooth communication and clear understanding between each player…

$2,000,000

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000

Total Unplanned Change by Individual Facilities ($000)

Valu

e of “A

voidable” C

hange

(Source: Building Better by Building Virtually First)

Page 36: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

A long term IT adoption goal

• The impacts of 4D-CAD (1)

Schematic

DesignProgramming

Design Develop/

Construction Document

Construction Ope

ration

The Sequent Phases of the Project

Page 37: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

A long term IT adoption goal

• The impacts of 4D-CAD (2)

Owner

Designer4D-CAD Model

&

Libraries

Construction Manager

Subcontractor

Subcontractor

Subcontractor

Subcontractor

Contracting

Flow of Information

Page 38: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

4. Assess the expected costs of achieving the plan

• The major expected costs at the industry aspect– Collaboration between the players in the industry– Data exchange

• The minor expected costs at the firm aspect– The investment on equipments– The internal investment on the infrastructure

• Potential risks– The implementation of adopting a new technology

Page 39: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The major expected costs at the industry aspect

• Collaboration between each firms– The hesitance to open own information

• E.g. drawings of a new high-tech elevator

– The avoidance the rework due to feedback• E.g. reworks to change finished plans due to

the problems of other teams

– The responsibility problems• E.g. whose responsibility about the costs due to

the changing plans

Page 40: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The major expected costs at the industry aspect

– The necessity to adjust the existing contract conditions

• As the concept of the construction is changing, the contract conditions have to be modified.

Page 41: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The major expected costs at the industry aspect

• Data exchange– The standardization problem

– Data supporting system• Internal supporting system

– e.g. AutoCAD’s libraries, Adobe Photoshop’s plug-in applications’ concept

• External supporting system– Web Hub– ASP solutions

Page 42: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The minor expected costs at the firm aspect

• The investment on equipments– New hardware and software– Employee’s training

• The internal investment on the infrastructure– Organizational restructure– Supporting system for new solutions– The enough infrastructure to maximize the

benefits of 4D-CAD

Page 43: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

Potential risks

• The whole implementation of 4D-CAD– The lag time problem– The resistance of peoples to the new technology– The hidden costs

Page 44: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

5. Analysis of the readiness of the CPM sector

• The currently readiness of the implementation– The current commercial applications– The current rate of the automation

• The impacts of the 4D-CAD– The impacts in a short term– The impacts in a long term

Page 45: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The currently readiness of the implementation

• The current commercial applications– Each sub-sectors have own applications– The familiarness to the computer based works– The fast rate of networking development– The lack of linkage between each sub-setors

• The current rate of the automation– The most segments are already automated or

being automated.– The lack of linkage between planning and

manufacturing

Page 46: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The impacts of the 4D-CAD

• The impacts in a short term– The limited implementation due to not fully

integrated data– A lot of modification manually due to lack of

accurate logic to replace decision makings

• The impacts in a long term– The fully integration through planners,

constructers and manufacturers– To provide better quality controls– To maximize the value of projects

Page 47: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

6. A detailed plan for the next incremental step

• The further IT adoption’s goals of 4D-CAD– Plan– Design– Procurement– Finance– Construction

Page 48: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The further IT adoption’s goals of 4D-CAD

• Plan– The value analysis of the project– The examination of the project executions

• Design– To provide whole information include product

codes, specifications and etc

• Procurement– To integrate local dealers who provide

construction materials– To order materials as the needs of the

construction lead time

Page 49: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

The further IT adoption’s goals of 4D-CAD

• Finance– To reflect constructor’s finance status include loan

cost, procurement cost and etc

• Construction– To improve quality controls– To enhance construction productivity

• E.g. Mobile computing on construction site, quality control by image processing

Page 50: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

References

1. US census Bureau (http://www.census.gov/epcd/www/97EC23.HTM)

2. Donald S. Barrie and Boyd C. Paulson, Professional Construction Management - 3rd Edition, McGraw Hill, 1992

3. K. Everette Sylvester, Effects of State Legislation on Contracting Methods of Public Schools and Universities, Forum on Construction Project Delivery for Texas Public Work, January 31, 2001

4. Construction Management Associations of America (http://www.cmaanet.org )

5. 4D CAD Research (http://www.stanford.edu/group/4D/index.shtml)

6. CIFE Summer Program (http://www.stanford.edu/group/CIFE )

7. 3D/4D Workshops (http://www.stanford.edu/group/4D/4d-workshop-main.htm )

8. Construction Research Agenda Workshop ( http://www/ce/berkeley.edy/~tommelein/CEMworkshop.htm )

Page 51: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

References

9. VIRCON ( http://www.bartlett.ucl.ac.uk/vircon/ )

10. K. Everette Sylvester, Effects of State Legislation on Contracting Methods of Public Schools and Universities, Forum on Construction Project Delivery for Texas Public Work, January 31, 2001

11. Robert A. Rodgers, A 4D-CAD implementation Utilizing JSPACE Schedule Simulator, Virginia Tech

12. Martin Fischer, 4D CAD: Learning from your virtual mistakes, Stanford University

13. Mark J. Clayton, Paul Teicholz, Martin Fischer, & John Kunz, Virtual components consisting of form, function and behavior, Automation in Construction 8, 1999, pp. 351-367.

14. Gijsbertus T. Luiten, Frits P. Tolman and Martin A. Fischer, Project-modeling in AEC to integrate design and construction, Computers in Industry 35, 1998, pp. 13-29.

Page 52: 1. Existing processes and business environment Business environment –U.S census on the Construction Industry –Contract type. Existing processes –Existing

References

14. Paul Teicholz, Vision of Future Practice, White paper on AEC Practice and Research Issues for the Future.

15. Peter Barrett, Construction management pull for 4D CAD, University of Salford.

16. Leonardo Rischmoller, 4D-PS: Putting an IT new work process into effect, Bechtel Group, Inc., June 12, 2002

17. Martin Fischer, Building better by building virtually first, Stanford University