How to Apply the Work Activity Method of Labor Calculations

Ron King

the Latest Update to MCAA’s WebLEM®

WebLEM Committee MembersWebLEM Committee Members• Kevin Daubendiek – Humphrey Company, Houston, TX• Paul DeBella – DeBella Mechanical, Santa Clara, CA• Bob Durr – Durr Mechanical Construction, New York, NY• David Gallo – Gallo Mechanical Contractors, New Orleans, LA• Ron King – Trimble MEP, Toronto, ON• Tim Moormeier – U.S. Engineering Company, Kansas City, MO • Patrick Reilly – John W. Danforth Company, Buffalo, NY• Nick Nikpourfard – Mechanical Contractors Association of

America, Rockville, MD

• Kevin Daubendiek – Humphrey Company, Houston, TX• Paul DeBella – DeBella Mechanical, Santa Clara, CA• Bob Durr – Durr Mechanical Construction, New York, NY• David Gallo – Gallo Mechanical Contractors, New Orleans, LA• Ron King – Trimble MEP, Toronto, ON• Tim Moormeier – U.S. Engineering Company, Kansas City, MO • Patrick Reilly – John W. Danforth Company, Buffalo, NY• Nick Nikpourfard – Mechanical Contractors Association of

America, Rockville, MD

What were some of the driving forces to develop this method of laboring?

What were some of the driving forces to develop this method of laboring?

• Inability to separate labor accurately into shop vs field

• Inability to account for labor associated with back to back fittings

• Inability to break down all labor components of a joint

• Better cost control of labor activities in both the shop or field

• Inability to separate labor accurately into shop vs field

• Inability to account for labor associated with back to back fittings

• Inability to break down all labor components of a joint

• Better cost control of labor activities in both the shop or field

How do we do it today?How do we do it today?

• We establish shop vs field labor hours by:• Percentage method• Diameter inch method

• Account for back to back fittings by applying a correction factor

• Currently no way to break down the components of the joint

• Some have improvised by determining a “Cap” equals one joint

• We establish shop vs field labor hours by:• Percentage method• Diameter inch method

• Account for back to back fittings by applying a correction factor

• Currently no way to break down the components of the joint

• Some have improvised by determining a “Cap” equals one joint

What does a labor unit presently include?

What does a labor unit presently include?

• Example: 6” CS Std Wt, Buttweld, LR 90° Elbow. The WebLEM states 6.29 hours, which includes:• Receiving, unloading, stockpiling, distributing• Joining method

• Type of connection, qty of joints, type of material, wall thickness

• “Normal” pressure testing• Installation or erection• Note: The joint and installation make up the

bulk of the unit

• Example: 6” CS Std Wt, Buttweld, LR 90° Elbow. The WebLEM states 6.29 hours, which includes:• Receiving, unloading, stockpiling, distributing• Joining method

• Type of connection, qty of joints, type of material, wall thickness

• “Normal” pressure testing• Installation or erection• Note: The joint and installation make up the

bulk of the unit

What’s the Challenge?What’s the Challenge?• No way to account for back to back fittings other than

applying a correction factor• No way to establish meaningful hours for the fabshop other

than applying a percentage or doing a diameter inch calc• No way to establish labor for components of the joint:

• Cut & Bevel• TIG Root• Joint (buttweld)• Hydotest• Preheat/Postweld heat treat• Etc.

• No way to account for back to back fittings other than applying a correction factor

• No way to establish meaningful hours for the fabshop other than applying a percentage or doing a diameter inch calc

• No way to establish labor for components of the joint:• Cut & Bevel• TIG Root• Joint (buttweld)• Hydotest• Preheat/Postweld heat treat• Etc.

What could we do differently?What could we do differently?• Break down the labor units into tasks such as:• Cut & Bevel• Tig Root• Preheat/Post Weld Heat Treat• Handling of Pipe, Fittings, Flange, Valve, etc• Spool Erection• Bolt-Up• Hydrotest

• Break down the labor units into tasks such as:• Cut & Bevel• Tig Root• Preheat/Post Weld Heat Treat• Handling of Pipe, Fittings, Flange, Valve, etc• Spool Erection• Bolt-Up• Hydrotest

What should we call it?What should we call it?

• The present method of laboring has been named:

“Component Method”

• The new method for establishing labor hours for each task has been named

“Work Activity Method”

• The present method of laboring has been named:

“Component Method”

• The new method for establishing labor hours for each task has been named

“Work Activity Method”

An example of how the new Work Activity Method works

An example of how the new Work Activity Method works

For the same 6” CS Std Wt BW 90° Elbow, we now have these tasks:• 6” CS Std Wt Flame Cut & Bevel (single operation)

• 0.40 x 2 = 0.80 Hours

• 6” CS Std Wt Buttweld• 2.48 x 2 = 4.96 Hours

• 6” CS Std Wt LR 90° Elbow Installation• 0.41 x 1 = 0.41 Hours

• Total using the Work Activity Method = 6.17 Hours (excluding hydrotest)

• Total using the Component Method = 6.29 Hours

For the same 6” CS Std Wt BW 90° Elbow, we now have these tasks:• 6” CS Std Wt Flame Cut & Bevel (single operation)

• 0.40 x 2 = 0.80 Hours

• 6” CS Std Wt Buttweld• 2.48 x 2 = 4.96 Hours

• 6” CS Std Wt LR 90° Elbow Installation• 0.41 x 1 = 0.41 Hours

• Total using the Work Activity Method = 6.17 Hours (excluding hydrotest)

• Total using the Component Method = 6.29 Hours

Let’s look under the hood!Let’s look under the hood!

www.weblem.org Changeswww.weblem.org Changes• Home page change to promote new Work Activity Method• Introduction• Proper Use of the LEM• Basis Assumption• Correction Factors• Addition of the Piping Systems Folder• Folder reorganization• HVAC Hook-Up• Instrumentation• Misc Labor Operations

• Home page change to promote new Work Activity Method• Introduction• Proper Use of the LEM• Basis Assumption• Correction Factors• Addition of the Piping Systems Folder• Folder reorganization• HVAC Hook-Up• Instrumentation• Misc Labor Operations

www.weblem.org Changes (cont.)www.weblem.org Changes (cont.)• Plumbing Equipment• Plumbing Hook-Up• Treatment Plant Equipment

• Plumbing Equipment• Plumbing Hook-Up• Treatment Plant Equipment

www.weblem.org Changes (cont.)www.weblem.org Changes (cont.)• New folders containing the Work Activity Method items

• Bolt Up• Cut & Bevel• Drilling Holes• Fillet Welds• Fitting Handling & Installation• Flange Handling & Installation• Hydrotesting• In-Line Specialty Items• Joints• Layout & Flame Cutting• Machining Inside of Pipe or Fitting (Counter Boring)

• New folders containing the Work Activity Method items• Bolt Up• Cut & Bevel• Drilling Holes• Fillet Welds• Fitting Handling & Installation• Flange Handling & Installation• Hydrotesting• In-Line Specialty Items• Joints• Layout & Flame Cutting• Machining Inside of Pipe or Fitting (Counter Boring)

www.weblem.org Changes (cont.)www.weblem.org Changes (cont.)• New folders containing the Work Activity Method items

(cont)• Nipples• Pipe Handling & Installation• Preheat• Purge• Stress Relieving• Valve Handling & Installation

• New folders containing the Work Activity Method items (cont)• Nipples• Pipe Handling & Installation• Preheat• Purge• Stress Relieving• Valve Handling & Installation

Take this isometric drawing for example

Take this isometric drawing for example

Now Let’s See Some Examples!And What This Means To Me?

Now Let’s See Some Examples!And What This Means To Me?

• Let’s compare the following:• Component Method and apply a percentage to

determine the shop vs field hours• Component Method and apply a diameter inch

calculation to determine the shop hours• Work Activity Method to precisely determine the

shop vs field hours

• Let’s compare the following:• Component Method and apply a percentage to

determine the shop vs field hours• Component Method and apply a diameter inch

calculation to determine the shop hours• Work Activity Method to precisely determine the

shop vs field hours

Component Method applying a percentage for Shop vs Field

Component Method applying a percentage for Shop vs Field

Component MethodPercentage Method to Split Shop vs Field

Recap0430-01Spool Hours Dist Hours 60.00%Shop/Field Distribution

Item Size QTY Hrs Ea Total Hrs Spool Shop FieldPipe 8" 11.5 0.53 6.10 0430-01 27.65 16.59 11.06Flange 8" 1 5.31 5.31 0430-02 16.24 9.74 6.5090° Elbow 8" 2 8.12 16.24 0430-03 16.68 10.01 6.6745° Elbow 8" 7.76 0.00 0430-04 55.21 33.12 22.08

Total 27.65 Total 115.77 69.46 46.31

0430-02Spool

Item Size QTY Hrs Ea Total Hrs

90° Elbow 8" 2 8.12 16.24

Total 16.24

0430-03Spool

Item Size QTY Hrs Ea Total Hrs

Pipe 8" 1.5 0.53 0.80

90° Elbow 8" 1 8.12 8.12

45° Elbow 8" 1 7.76 7.76

Total 16.68

0430-04Spool

Item Size QTY Hrs Ea Total Hrs

Pipe 8" 13.5 0.53 7.16

Flange 8" 3 5.31 15.93

Tee 8" 2 12.00 24.00

90° Elbow 8" 1 8.12 8.12

Total 55.21

Component Method applying a diameter inch calc for Shop

Component Method applying a diameter inch calc for Shop

Component Method

Dia Inch Method to Est Shop vs Field HoursShop

0430-01SpoolItem Size QTY Ea Total Diameter Inch Value for ShopPipe 8" 11.5 0.53 6.10 Spool Size Qty Welds Dia Inch Shop Weld HoursFlange 8" 1 5.31 5.31 0430-01 8 4 32 5.1290° Elbow 8" 2 8.12 16.24 0430-02 8 1 8 1.28Shop Buttweld 8" 4 0.00 0.00 0430-03 8 2 16 2.56

Total 27.65 0430-04 8 8 64 10.24Diameter Inch Per Day 50

0430-02Spool Shop Hour vs Field HoursItem Size QTY Ea Total Spool Hours Shop Weld Hours Field Hours90° Elbow 8" 2 8.12 16.24 0430-01 27.65 5.12 22.53Shop Buttweld 8" 1 0.00 0.00 0430-02 16.24 1.28 14.96

Total 16.24 0430-03 16.68 2.56 14.120430-04 55.21 10.24 44.97

Total 115.77 19.20 96.570430-03Spool

Item Size QTY Ea TotalPipe 8" 1.5 0.53 0.8090° Elbow 8" 1 8.12 8.1245° Elbow 8" 1 7.76 7.76Shop Buttweld 8" 2 0.00 0.00

Total 16.68

0430-04SpoolItem Size QTY Ea TotalPipe 8" 13.5 0.53 7.16Flange 8" 3 5.31 15.93Tee 8" 2 12.00 24.0090° Elbow 8" 1 8.12 8.12Shop Buttweld 8" 8 0.00 0.00

Total 55.21

Work Activity Method forShop vs Field

Work Activity Method forShop vs Field

Work Activity MethodShop Field

0Spool 0430-01Spool Hours RecapItem Size QTY Ea Total Item Size QTY Ea Total Spool Shop FieldPipe - Shop 8" 11.5 0.057 0.66 Bolt Up 8" 1 0.84 0.84 0430-01 15.42 6.25Flange 8" 1 0.12 0.12 Pipe - Field 8" 11.5 0.301 3.46 0430-02 3.37 4.4390° Elbow 8" 2 0.12 0.24 Flange 8" 1 0.65 0.65 0430-03 7.48 4.57Cut & Bev 8" 4 0.47 1.88 90° Elbow 8" 2 0.65 1.30 0430-04 29.41 19.87Buttweld 8" 4 3.13 12.52 Total 6.25 Total 55.67 35.12

Total 15.42 Total Shop & Field 90.79

0430-02Spool 0430-02SpoolItem Size QTY Ea Total Item Size QTY Ea Total90° Elbow 8" 2 0.12 0.24 90° Elbow 8" 2 0.65 1.30Buttweld 8" 1 3.13 3.13 Buttweld 8" 1 3.13 3.13

Total 3.37 Total 4.43

0430-03Spool 0430-03SpoolItem Size QTY Ea Total Item Size QTY Ea TotalPipe - Shop 8" 1.5 0.057 0.09 Pipe - Field 8" 1.5 0.301 0.4590° Elbow 8" 1 0.12 0.12 90° Elbow 8" 1 0.65 0.6545° Elbow 8" 1 0.07 0.07 45° Elbow 8" 1 0.34 0.34Cut & Bev 8" 2 0.47 0.94 Buttweld 8" 1 3.13 3.13Buttweld 8" 2 3.13 6.26 Total 4.57

Total 7.48

0430-04Spool 0430-04SpoolItem Size QTY Ea Total Item Size QTY Ea TotalPipe - Shop 8" 13.5 0.057 0.77 Bolt Up 8" 3 0.84 2.52Flange 8" 3 0.12 0.36 Pipe - Field 8" 13.5 0.301 4.06Tee 8" 2 0.15 0.30 Flange 8" 3 0.65 1.9590° Elbow 8" 1 0.12 0.12 Tee 8" 2 0.81 1.62Cut & Bev 8" 6 0.47 2.82 90° Elbow 8" 1 0.65 0.65Buttweld 8" 8 3.13 25.04 Buttweld 8" 1 3.13 3.13

Total 29.41 Hydro Blanks 8" 4 1.26 5.04Field Hydro 8" 44.8 0.02 0.90

Total 19.87

Recap ComparisonComponent vs Work Activity

Recap ComparisonComponent vs Work Activity

Recap Comparison - Per Iso Example

Component Method Work Activity Method

Item Size QTY Ea Total Ea Total

Pipe 8" 26.5 0.53 14.05 0.057 1.51

Flange 8" 4 5.31 21.24 0.77 3.08

Tee 8" 2 12.00 24.00 0.96 1.92

90° Elbow 8" 6 8.12 48.72 0.77 4.62

45° Elbow 8" 1 7.76 7.76 0.41 0.41

Bolt Up 8" 4 0 0.00 0.84 3.36

Cut & Bev 8" 12 0 0.00 0.47 5.64

Buttweld - Shop 8" 15 0 0.00 3.13 46.95

Pipe - Field 8" 26.5 0 0.00 0.301 7.98

Buttweld - Field 8" 3 0 0.00 3.13 9.39

Hydro Blanks 8" 4 0 0.00 1.26 5.04

Field Hydro 8" 44.8 0 0.00 0.02 0.90

Total 115.77 90.79

Component Method has six 8" Cut & Buttwelds not required due to back to back fittings

Component Method has a Cut & Buttweld every 21 feet of pipe that isn't needed

Cap 8" 7.25 3.58 25.955

So if we remove the extra cuts, bevels and welds: 115.77hours minus 25.955 = 89.82

Recap ComparisonComponent vs Work Activity (cont.)

Recap ComparisonComponent vs Work Activity (cont.)

Recap Comparison - W/O Accounting for Back to Back Fittings

Component Method Work Activity Method

Item Size QTY Ea Total Ea Total

Pipe 8" 26.5 0.53 14.05 0.057 1.51

Flange 8" 4 5.31 21.24 0.77 3.08

Tee 8" 2 12.00 24.00 0.96 1.92

90° Elbow 8" 6 8.12 48.72 0.77 4.62

45° Elbow 8" 1 7.76 7.76 0.41 0.41

Bolt Up 8" 4 0 0.00 0.84 3.36

Cut & Bev 8" 25.26 0 0.00 0.47 11.87

Buttweld - Shop 8" 22.26 0 0.00 3.13 69.67

Pipe - Field 8" 26.5 0 0.00 0.301 7.98

Buttweld - Field 8" 3 0 0.00 3.13 9.39

Hydro Blanks 8" 4 0 0.00 1.26 5.04

Field Hydro 8" 44.8 0 0.00 0.02 0.90

Total 115.77 119.75

So now it’s possible!So now it’s possible!

• No need to adjust for back to back fitting situtaions• Precisely account for all labor activities in the shop vs

field• Ability to calculate all activities related to the joint

Bottom line; This gives you better job cost control!!

• No need to adjust for back to back fitting situtaions• Precisely account for all labor activities in the shop vs

field• Ability to calculate all activities related to the joint

Bottom line; This gives you better job cost control!!

What if this method just isn’t for me?

What if this method just isn’t for me?

• “I don’t worry about shop vs field or counting the joints…….”

• “I just want to take off using the same method as in the past; counting widgets……..”

• No Problem!!• Continue performing takeoff using the

Component Method just as you’ve done in the past

• “I don’t worry about shop vs field or counting the joints…….”

• “I just want to take off using the same method as in the past; counting widgets……..”

• No Problem!!• Continue performing takeoff using the

Component Method just as you’ve done in the past

But if the Work Activity IS for youBut if the Work Activity IS for you• You can start using this method immediately• Remember to examine your labor productivity factors to

account for this new method• Be sure to read the Introduction, Proper Use of the LEM

and Basic Assumptions• Visit each of the folders on the WebLEM contained within

the “Work Activity Method” to familiarize yourself• Start producing very precise shop vs field estimates

immediately• WebLEM committee would encourage your feedback

• You can start using this method immediately• Remember to examine your labor productivity factors to

account for this new method• Be sure to read the Introduction, Proper Use of the LEM

and Basic Assumptions• Visit each of the folders on the WebLEM contained within

the “Work Activity Method” to familiarize yourself• Start producing very precise shop vs field estimates

immediately• WebLEM committee would encourage your feedback