Post on 11-Jan-2016
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Program Success through Program Success through ExecutionExecution
John RigbyJohn Rigby
JBEKJBEK
Case StudyCase Study2000 CII Annual Conference2000 CII Annual Conference
Nashville, TennesseeNashville, Tennessee
Vic KleinfelterVic Kleinfelter
DuPontDuPont
A Case StudyA Case Study
DuPont Fluoroproducts DuPont Fluoroproducts
Expansion ProgramsExpansion Programs
Washington Works FacilityWashington Works Facility
Parkersburg, West VirginiaParkersburg, West Virginia
Owner’s SiteOwner’s Site
Owner’s SiteOwner’s Site
Washington Works SiteWashington Works Site
•Eight major manufacturing Eight major manufacturing areasareas
•2,000 acres2,000 acres
•200 employees in 1948; over 200 employees in 1948; over 2,300 now2,300 now
Site Capital WorkSite Capital Work
PeriodPeriod WorkWork Projects Projects ValueValue
1994-19951994-1995 MiscellaneousMiscellaneous 66 $50 MM$50 MM
1995-19971995-1997 FPFP** Expansion Expansion 55 $180 MM$180 MM (EPC I) (EPC I)
1997-20001997-2000 FPFP** Improvements Improvements 77 $80 MM$80 MM (EPC II) (EPC II)
*Fluoropolymers*Fluoropolymers
Alliance Contractors for Alliance Contractors for ProgramProgram
JBEK JBEK (Joint venture: BE&K and Kvaerner)(Joint venture: BE&K and Kvaerner)
– Contractor EPC Program ManagerContractor EPC Program Manager
– Engineering-procurement responsibilityEngineering-procurement responsibility
MK MK (Joint venture partner with JBEK for (Joint venture partner with JBEK for
EPC)EPC)
– Construction responsibilityConstruction responsibility
HistoryHistory
• Low levels of workLow levels of work
• Contractors working independently Contractors working independently for DuPontfor DuPont
• No state-of-the-art engineering toolsNo state-of-the-art engineering tools
• Craft resource pool oriented toward Craft resource pool oriented toward small capital work, supplemental small capital work, supplemental maintenancemaintenance
HistoryHistory(continued)(continued)
•Major cost overrunsMajor cost overruns
•Late completionsLate completions
•Rework and change Rework and change combined - in excess of 20 combined - in excess of 20 percentpercent
•No team orientationNo team orientation
The ChallengeThe Challenge
• Safety-health-environment is a Safety-health-environment is a requirement.requirement.
• Leadership and teamwork Leadership and teamwork essential to success.essential to success.
• Use EPC principles for execution.Use EPC principles for execution.
EPC Principles of EPC Principles of ExecutionExecution
• Total project focusTotal project focus
• Single-point responsibilitySingle-point responsibility
• Open communicationsOpen communications
• Performance-driven executionPerformance-driven execution
• Truly integrated systemsTruly integrated systems
• Flexibility to meet the business needsFlexibility to meet the business needs
TenantsTenants
• Safety-Health-EnvironmentSafety-Health-Environment
• ScheduleSchedule
• CostCost
• QualityQuality
• RelationshipsRelationships
• SystemsSystems
• Work processesWork processes
• People relationshipsPeople relationships
Program SuccessProgram Success
BarriersBarriers
Critical Success Factors
Critical Success Factors
The EvolutionThe Evolution
• Two alliance contractors Two alliance contractors individually serving DuPontindividually serving DuPont
• Two alliance contractors Two alliance contractors working together — EPC working together — EPC contractorscontractors
• EPC contractors integrated with EPC contractors integrated with DuPont businesses — EPC TeamDuPont businesses — EPC Team
The Program’s Improvement The Program’s Improvement AreasAreas
•SafetySafety
•Work force productivityWork force productivity
•Labor relationsLabor relations
•Construction innovationConstruction innovation
•Engineering design tools and Engineering design tools and deliverablesdeliverables
•Pipe reworkPipe rework
•Project controlsProject controls
•Procurement and material controlProcurement and material control
•RelationshipsRelationships
Business Cost EvaluationBusiness Cost Evaluation
ITCITC
EPC EvaluationEPC Evaluation
’’0000’’9494 ’’9898’’9595
20%20%
’’9797’’9696 ’’9999
(Shown as trend only)(Shown as trend only)
Pre-Pre-PrograProgra
mm
EPCEPCTeamTeam
ProgramProgram
EPC 1EPC 1ProgramProgram
Bu
dg
et/
Cost
Perf
orm
an
ce
Bu
dg
et/
Cost
Perf
orm
an
ce
(Over-
run
)(O
ver-
run
)
00
-20%-20%
(Un
der-
run
)(U
nd
er-
run
)
Total Site Work Sample Total Site Work Sample SummarySummary
Field and Shop CombinedField and Shop Combined
60.460.4
64.764.7
69.169.1
67.167.1
65.865.8
67.967.9
66.766.767.167.1
67.367.3
65.365.365.665.6
67.467.467.867.8
69.369.3
71.771.7
70.170.1707070.170.170.270.2
70.770.7
72.972.972.772.7
73.473.4
71.971.971.571.5
71.171.1
72.372.3
70.770.7
72.572.572.272.2
71.171.171.571.5
71.971.9
72.772.7
72.172.1
73.673.6
60
65
70
75
65.765.7
6767%%
Site Goal = 74Site Goal = 74
1996 1997 1998 1999 2000
Program Carry-Over to Site Program Carry-Over to Site PerformancePerformance
• HistoryHistory
• Initial ConceptInitial Concept– $4.0 MM budget$4.0 MM budget
– Outage of six to eight weeksOutage of six to eight weeks
• Final ProposalFinal Proposal– $2.3 MM budget$2.3 MM budget
– 18-day outage18-day outage
• Construction Innovation through Construction Innovation through EngineeringEngineering
– 650-ton Demag650-ton Demag
– Twin path (fiber optic) slingsTwin path (fiber optic) slings
Delrin Capper Replacement ProjectDelrin Capper Replacement Project
• Final results: $12.125 MM valueFinal results: $12.125 MM value– 15-day outage15-day outage
– Completed under budgetCompleted under budget
• Direct business valueDirect business value– $2.0 MM under original concept$2.0 MM under original concept
– Completed almost six weeks early ($10.125 MM)Completed almost six weeks early ($10.125 MM)
• Added valueAdded value– Reduced maintenance cost ($1.0 MM/yr)Reduced maintenance cost ($1.0 MM/yr)
– Uptime gain ($1.0 MM/yr)Uptime gain ($1.0 MM/yr)
Program Carry-Over to Site Program Carry-Over to Site PerformancePerformance
Delrin Capper Replacement ProjectDelrin Capper Replacement Project
Future StateFuture State
EPC FPEPC FPProgramProgramEPC FPEPC FP
ProgramProgram
EPCEPCFutureFuture
ProgramsPrograms
EPCEPCFutureFuture
ProgramsProgramsCIPCIPCIPCIP
LessonsLessonsLearnedLearnedLessonsLessonsLearnedLearned
SuccessfulSuccessfulAccomplish-Accomplish-
mentsments
SuccessfulSuccessfulAccomplish-Accomplish-
mentsments
EPC TeamEPC Team
A legacyA legacy
for thefor the
futurefuture
Program Success through Program Success through Execution Implementation Execution Implementation
SessionSessionModerator:Moderator: John Rigby (JBEK)John Rigby (JBEK)
Panelists:Panelists: Vic Kleinfelter (DuPont)Vic Kleinfelter (DuPont)J. Peter Ellefson J. Peter Ellefson
(DuPont)(DuPont) David Adams (MK Corp.)David Adams (MK Corp.)
Presentation:Presentation:David AdamsDavid Adams SafetySafety
Labor RelationsLabor RelationsWork Force ProductivityWork Force Productivity
Pete EllefsonPete Ellefson Design ToolsDesign ToolsPipe ReworkPipe ReworkResponsiveness to Responsiveness to
ChangeChange RelationshipsRelationshipsValue-Added Value-Added
ResultsResults