konrad decision-making tools in construction management (2)
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Dubai May 2013
Construction Management:Decision-making Tools and Processes
CIVL 493/521 201UBC
Konrad Siu M. Eng., M.B.A., P. Eng., FCSCEExecutive Director, Drainage Design and Construction
City of Edmonton, Alberta, Canada
January 2014
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Introduction
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H istory - 1910s
Rat Creek Sewer Tunnel Construction in the 1910s
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H istory - 1910s
Rat Creek Sewer Tunnel Construction in the 1910s
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H istory - 1920s
Sewer Tunnel Construction in the 1920s
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H istory - 1920s
Sewer Tunnel Construction in the 1920s
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H istory - 1950s
Sewer Tunnel Construction in the 1950s
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Tunnelling Machine 60s
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Tunneling under the Bay Station 1970s
H istory - 1970s
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TBM Tunneling 1980s
TBM 1980s
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TBM Tunneling 2000s
TBM 2000s
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Tunnelling
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Pipe Ramming
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Pipe Ramming
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Micro-Tunnelling
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Pilot Tube Micro-Tunnelling
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Edmontons Infrastructure
Infrastructure arethe physical assets
developed and usedby a municipality to
support its socialand economic
activities
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$15.11
$12.07
$4.28
$1.96 $1.67$1.03
$0.72$0.34 $0.34 $0.33 $0.14 $0.08 $0.07 $0.01
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$ b i l l i o n
Total 2012 Asset Replacement Value - $38.2 billion
Drainage ParksBuildingsRoadROW
AffordableHousing
TrafficControl
WasteMgmt
Fleet CommunityInfra.
LibraryPoliceTechnologyEquipment
FireRescue
Transit Fac.& Equip.
Replacement Value ofInfrastructure
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A
B
C
D
F
VeryGood
Good
Fair
Poor
VeryPoor
These rati ngs areappli ed to eachclassification
StandardizedRating System
http://www.infraguide.ca/http://www.infraguide.ca/http://www.infraguide.ca/http://www.infraguide.ca/ -
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Value Engineering
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IntroductionHistory of Value Engineering
1945
1950
1960
1970
1980
1990
2000
Canada adopts V.E. Acceptance for management / strategic process
U.S. Federal law mandates V.E.
Japan/EPA adopts V.E.
G.E. develops V.E.
U.S. Navy adopts V.E.
Adopted by:
-U.S. Department ofDefense -U.S. Manufacturers -Europe & Australia -Military Const.
Shortage of financial resources
Shortage of physical resources
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Effectiveness of Value
EngineeringProactive ValueEngineering Constructability Review
Time
C o s
t
COST TOCHANGE
Traditional ValueEngineering
COST SAVINGSPOTENTIAL Varies with Type
of Project
Concept Development Design Construction or Production
Constructive VE Opportunity Constructive InterventionCost
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Value Engineering Is
System Oriented
Multi-disciplined Team Approach
Life Cycle Oriented
Function Oriented - Relates function required to the value received
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Value Engineering Is NOT
Design Review
Cheapening Process
A Requirement Done on all Designs
Quality Control
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What is Value?
itinto putWhat wesomethingof outgetWhat we
Value
ResourcesBenefits
etc.Energy,Mass,Time,Cost,etc.Appeal,y,ReliabilitQuality,
Value
CostFunction
WorthCost
Value
Value = A ratio used for comparing alternatives that can reliably
perform the same function
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Who Defines Value?
Good Value is definedby the owner
Performance Quality Aesthetics
Type of Value Religious Political Ethical Judicial Social Aesthetic
Economic Sentimental
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Information PhaseInformation
Phase
Function
Analysis
CreativityPhase
JudgmentPhase
DevelopmentPhasePresentation
Phase
Implementation
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Information Phase
Information needed from the designer andowner Design Criteria
Site conditions Regulatory requirements Elements of the design History of the project Constraints imposed on the project Available utilities Requirements from the public Design computations Cost estimate
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Information Phase
Ask Questions What is the problem we are about to
discuss? Why do you consider this a problem? Why do you believe a solution is
necessary?
Ask questions of others the way youwould like questions asked of you
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Function Analysis
InformationPhase
Function
Analysis
CreativityPhase
JudgmentPhase
DevelopmentPhasePresentation
Phase
Implementation
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What is Function
Work Performed by a project, product,element, process, or procedure
Answers question: What does it do?
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Function Identification
Active Verb:Indicates state of being;
asserts somethingConveySupport
Transmits
ProtectsEnclosesHouses
Measurable noun:Object of the verb; allowsquantitative evaluation
WeightLoadFlowHeatLight
People
The more abstract the function description, the greater
The opportunities for finding creative alternatives
Identify using two-word description:
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Types of Functions
There are two types of functions Basic Function
The specific work or purpose the product, project,process, must complete
Secondary Function Support function that may be needed but do not
perform the actual work
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Function Analysis
Example: Pencil
Description Function Basic Secondary
Pencil Make Marks
Eraser Removes Marks
Band Secure eraser
Improve appearance
Body Support lead
Transmit force
Accommodate grip
Display information
Paint Protect wood
Improve appearance
Lead Make Marks
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Function Analysis SystemTechnique (FAST)
Expansion of Function Analysis to FASTmodel Function analysis involves asking questions
about functions: How can we (verb/noun)?,Why do we (verb/noun)?.
Charles Bytheway, a UNIVAC logician,organized the functions and questions into afunctional family tree in the 1960s called aFAST model (Function Analysis SystemTechnique)
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FAST Diagram
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FAST Logic
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SESS STAGE 1
Major Logic PathBasicFunction
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Creativity Phase
InformationPhase
Function
Analysis
CreativityPhase
JudgmentPhase
DevelopmentPhase
PresentationPhase
Implementation
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Search for new Ideas
Adapt What else is like this? Modify Change the meaning, size
color, direction
Magnify make larger, heaviermore costly
Minify minimize, omit; lighter, lower Substitute What else could used instead? Rearrange Is there an alternative design Reverse Can it be transposed, made upside
down? Combine Blend ideas; perform multiple functions
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Example Project
Alternative Description
1 Pond with Concrete Liner, with Pump Station
2 Underground Concrete Tank
3 Aboveground Steel Tanks, with Pump Station
4 Pond without Concrete Liner, with Pump Station
5 SuperPipe with Trenchless Options
6Combination of SuperPipe, Trenchless Options andTanks
7 SuperPipe and Tunneling to replace Double Barrel Sewer
Table .1 Alternatives List
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Judgment Phase
InformationPhase
Function
Analysis
CreativityPhase
JudgmentPhase
DevelopmentPhase
PresentationPhase
Implementation
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Judgment Steps
Determine evaluation criteria and prioritize
Evaluation ideas Test with respect to criteria Identify advantages and disadvantages
Rate ideas
Select best alternatives
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Develop Evaluation Criteria
Review project value objective (sometimesidentified at the beginning of the session)
Review owners comments during interviewsand opening presentation
List criteria and prioritize from ownersperspective
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Weighted Evaluation Matrix
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Example to Determine Weight of Criteria
Table 1- Evaluation Criteria A B C D E F G H I J Total Weights
A 2A 1C 2A 1A 2A 3A 3A 1A 2A 16 19%B 2B 2D 2E 3F 2B 3B 1B 1J 8 9%C 2C 2C 2C 3C 3C 1C 2C 16 19%D 1D 1F 2D 3D 1D 2J 9 11%
E 1E 2E 3E 1E 1E 10 12%F 2F 3F 1F 1J 10 12%G 2G 2I 1J 2 2%H 3I 1J 1 1%I 1J 5 6%J 8 9%
85 100%A Environmental
B Constructability 1 SAMEC Safety 2 MEDIUMD Maintainability / Operability 3 STRONGE Reliability of systemF Impact on existing infastructureG Availabiity of contractors for alternativesH AppearanceI Disruption to Traffic and other servicesJ Compatibility with WESS strategy/existing and future network
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Example to Rate Alternatives
Alternative Evaluation Matrix
Criteria Evaluation Criteria Weight Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score1 Environmental 19 4 75.3 9 169.4 6 112.9 4 75.3 8 150.6 7 131.8 7 131.82 Constructability 9 7 65.9 7 65.9 6 56.5 6 56.5 6 56.5 6 56.5 6 56.53 Safety 19 6 112.9 7 131.8 6 112.9 6 112.9 5 94.1 5 94.1 4 75.34 Maintainability / Operability 11 3 31.8 8 84.7 6 63.5 2 21.2 6 63.5 5 52.9 7 74.1
5 Reliability of system 12 6 70.6 8 94.1 8 94.1 5 58.8 7 82.4 7 82.4 7 82.46 Impact on existing infastructure 12 8 94.1 7 82.4 7 82.4 8 94.1 8 94.1 8 94.1 8 94.17 Availabiity of contractors for alternatives 2 9 21.2 9 21.2 7 16.5 9 21.2 8 18.8 8 18.8 8 18.88 Appearance 1 4 4.7 9 10.6 5 5.9 4 4.7 8 9.4 8 9.4 8 9.49 Disruption to Traffic and other services 6 9 52.9 3 17.6 9 52.9 9 52.9 7 41.2 7 41.2 7 41.2
10 Compat ibi li ty wi th WESSstrategy/ex isting and future network
9 9 84.7 9 84.7 9 84.7 9 84.7 9 84.7 9 84.7 9 84.7
Ranking Alternative Value1 13.92 12.83 8.94 8.45 7.16 6.17 5.3
7
61.4 58.2 69.5 66.6 66.8
1 42 3
8.9 7.1
5 6
13.9 12.8 8.49.5 5.0 5.2 8.0
FunctionCost (Millions $)Value = Function / Cost 6.1
11.55.3
76.2 68.28.6 9.6
Combination SuperPipe, Trenchless Options and TanksSuperPipe with Trenchless Options
Underground Concrete Tank
Pond without Concrete Liner, with Pump Station
Function69.566.676.2
61.4
Aboveground Steel TankSuperPipe and Tunneling to replace Double Barrel Sewer
Pond with Concrete Liner, with Pump Station
66.868.258.2
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Development Phase
InformationPhase
Function
Analysis
CreativityPhase
JudgmentPhase
DevelopmentPhase
PresentationPhase
Implementation
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Presentation Phase
InformationPhase
Function
Analysis
CreativityPhase
JudgmentPhase
DevelopmentPhase
PresentationPhase
Implementation
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Presentation & Implementation
Results General Information
Key Issues Evaluation of alternatives Summary and alternatives VM alternatives and backup data
Sketches* Calculations* Cost worksheet* LCC Worksheet* * Include as needed
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VE Session
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Risk Assessment
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Risk:
The possibility of suffering loss (or harm) and the impact that loss has onthe involved party.
Risk can be characterized in terms of its severity, where:
Risk Concept
58
Severity = Likelihood of Occurrence x Magnitude of the Impact
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Risk Management Method
59
Identify Analyze
ImplementMonitor
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Example of Risk Assessment Table
Number
Category:Planning
Design
Construction
Risk FactorMitigation
Note
l k l
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Value Engineering + Risk AnalysisInformation
Phase
Function Analysis
Creativity Phase
Evaluation Phase
DevelopmentPhase
Presentation andImplementation
Phase
Nominal MethodGut Feel Index (GFI)
AHP
Identify RiskFactors
RiskQuantification
Risk Mitigation
Life Cycle Cost
Sensitivity Analysis
Risk AnalysisValueEngineering
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Constructability
C f Ad i l R l i hi
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Cause of Adversarial Relationshipsin Construction
Poorly defined scope of project Excessive change orders Changes not properly managed Lack of communication of objectives Unrealistic project schedule Unrealistic project budget
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What is Constructability?
Constructability is the optimum use ofconstruction knowledge and experience in
planning, design, procurement and fieldoperations to achieve overall projectobjectives. CII
Abili I fl Fi l C O P j Lif
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A B
I L I T Y T O
I N F L U E N C E C O S T
HIGH
LOW
START COMPLETETIME
START-UP
CONSTRUCTION
PROCUREMENT
DESIGN
CONCEPTUAL PLANNING
Ability to Influence Final Cost Over Project Life
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Objective of Constructability Review
Perform an in-depth analysis of the designfrom the contractors perspective.
Answer the question: Can this project beconstructed as it is represented in the
design?
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Constructability Review - 1
The Team:
Step 1: develops an understanding of the project, its
constraints, design and underlying assumptions
Step 2: becomes familiar with the plans, learns whatfeatures were existing and proposed
Step 3: identifies potential conflicts and evaluates theproposed design in details
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Constructability Review - 2
Step 4: starts developing concepts as a contractorwould build the project under the given constraints. This
allows development of alternatives for the design and/orrecommendations for enhancement as required
Step 5: puts together staging plan and schedule basedon various assumptions regarding achievableproductivities and methods of construction
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Success Factors
Senior management's commitment to constructability and similarcommitment from all project participants.
Formal constructability program - establish a constructability procedure for inclusion in project executionplans apply early in project planning involve construction specialist as early as possible
Consideration of major construction methods, such asmodularization or preassembly, and sequencing of constructionactivities as part of basic design approaches to facilitate fabrication,transportation, installation , system turn over and start up.
Success Factors
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Success Factors
Encourage teamwork, creativity, newideas and new approaches.
Emphasize total project integration, notoptimization of individual parts.
Evaluate progress and results.
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Project Team
Design engineer or
consultant Construction
supervisor and/ordesignate
Planningrepresentative
Operationsrepresentative
Equipment/tradesrepresentative
Estimator
Technician Inspector Others as required
Project Manager, and any or all of the followingpersonnel:
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Benefits
Constructability works - frequently withdramatic results.
-Better project-Lower costs-Better productivity
-Earlier project completions-Earlier start-ups
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Closing
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Thank you!Questions?