< PreviousThe Construction Users Roundtable 11 ●●● GET TO KNOW CUR T Connecting With CURT’s Board of Directors This issue we ask CURT’s Board: “Why is it imperative for the construction industry to embrace new technologies and productivity tools?” Jim Ellis CURT President SABIC General Manager, Global Engineering and Project Management Houston, TX “It is no secret to any of us that the construction industry is years behind – decades even – our counterparts in manufacturing, agriculture, and wholesale/ retail. They are all doing better than us and they are all reaping the rewards. I love our industry, I have built a career in it and have supported my family because of it. I want future generations to find the same success as I have. Actually, I want them to do even better. In order to achieve this goal, the construction industry needs to embrace new technologies and new ideas. We need to listen to those who think differently and have new solutions because what we’ve being doing to date is no longer enough. I look forward to being a part of the cavalry that is working towards a better tomorrow.” Jim Ellis serves as Global Senior General Manager of Engineering and Project Management for Saudi Arabia Basic Industries Corporation (SABIC), one of the world’s leading and largest chemical and materials companies. Prior to assuming his current position with SABIC, he retired from the DuPont Company after 33 years of service, where he held numerous positions in business development, technology, operations, engineering and project management globally. Gregory L. Sizemore, Esq. CURT Executive Vice President THE CONSTRUCTION USERS ROUNDTABLE Cincinnati, OH “This issue’s cover photo of men assembling vehicles by hand in the 1930s reminds me of similar construction-related images from years gone by. We’ve all seen the ones of workers enjoying their lunch at dizzying heights on top of a skyscraper beam, minus any safety harness. Images of workers using pick-axes to carve out tunnels, and hammers and their own strength to erect walls, also come to mind. At the time, this was how the job got done. But look how far we’ve come. And, more importantly – most importantly – look at how far we can still go. Technology surrounds us, from the smart phone in our hand to the satellites orbiting the earth that make it easy for me to connect with colleagues around the world. As new tools are developed, those construction owners and contractors who embrace innovation are more likely to succeed, and I believe the ones who wait will get left in the dust. The same holds true for CURT – our organization needs to create new tools to help our members succeed (and we are!), we need to embrace new partnerships to help us learn and grow (again, we are!), and we need to be a leader to help the construction industry create a new and exciting future (yes, we are doing this too!).” Gregory L. Sizemore has over 30 years of construction industry and association management experience. In 1989, he started Sizemore & Company LLC, a construction industry association management and staffing firm. Sizemore holds a Bachelor of Science in Economics and a Master of Science in Industrial and Labor Relations from the University of Cincinnati. He earned his Juris Doctor from The Northern Kentucky University College of Law, and is a licensed attorney in the State of Ohio. He is a frequent guest speaker at industry events, where he represents “the voice of the owner to the construction industry.” Arthur Limper Board Member MERCK & CO., INC. Director, Construction Safety – Global Engineering Services Whitehouse Station, NJ No quote is available at this time. Art Limper has over 40 years of construction management, project management and safety program management experience in the commercial, heavy industrial, oil and gas, chemical, and pharmaceutical industries. He has been with Merck & Co., Inc. for over 15 years and currently is responsible for Construction Management and HSE Management Systems for Merck Global Engineering Services. Continued on next page 12 Donna Parry Board Member PROCTER & GAMBLE Global Construction Leadership Team Cincinnati, OH No quote is available at this time. Donna Parry serves on the Global Construction Leadership Team at Procter & Gamble. Donna’s 33- year Procter & Gamble career has spanned Control & Information Systems, Project Management, Capital Systems Management, and Construction Management. She has held manufacturing and engineering roles in various consumer products categories. Donna’s P&G experience includes facilitating their North American Construction Safety network and responsibility for global Construction Management training curriculum and standards. Her current position focuses on Construction Management and Safety for a major project.12 The VOICE ● Issue 3, 2019 GET TO KNOW CUR T Eddie Clayton Board Member SOUTHERN CO. GENERATION Contracting & Workforce Development Strategies Manager Birmingham, AL “I believe that the market will dictate the advancements of new technologies, whether they be related to productivity, the workforce, or anything else construction related. If owners and providing support to workforce development initiatives necessary for Southern Company to meet its indirect hire needs. contractors have a need, tech companies will create a new tool or product in response. If the products are innovative and useful, the industry will adopt their use.” Eddie Clayton has been an employee of Southern Company for 37 years. He works with the Craft Labor Relations team in the Operations Services group. His responsibilities include supporting the Southern Company’s generating fleet and construction projects with labor market analyses, providing guidance and support with appropriate contracting and contingency staffing strategies and Angela Skow Board Member AON Senior Account Executive Dallas, TX “Embracing new technology is a must in our business to stay current and competitive while protecting and ensuring the safest course for our employees and coworkers. In the construction arena new technology means a variety of options, from facial recognition, wearables, virtual training, badging and gadgets that attach to clothing to identify falls, entry into restricted areas and who is on and off the site. These enhancements not only enable a safer workplace but more comprehensive control and knowledge about what is taking place on the site. From a productivity standpoint, utilizing some of the new products available – from automated brick laying, drone usage and driverless construction fleets – we can reduce the wear and tear on the human body and allow certain equipment to be operated without endangering a life, but still getting the performance and productivity needed to complete the job. As technology expands and is incorporated into everything we do daily, if we do not actually work to integrate this into the fabric of the construction industry, we will be left behind. Our clients and end users are moving faster than the industry in designing leading edge buildings and facilities. As they are looking to the future, why aren’t we?” Angela Skow is a Senior Account Executive with Aon’s Construction Services Group in Dallas, Texas. Angela joined the Aon organization in 2019 and in her role, Angela supports construction industry clients by providing solutions and services to manage risk and financial impacts. Prior to joining Aon, she served as a Vice President, Large Account Practice Leader, for Zurich, in the Dallas office. Angela was with Zurich for more than 13 years. Before assuming her role at Zurich, Angela was with Argonaut Insurance Group for over 20 years, where she served in an underwriting and management roles working with risk management accounts. ●The Construction Users Roundtable 13 GET TO KNOW CUR T Following are updates from all of CURT’s Committees. Visit www.curt.org for more information on each Committee’s focal point. Committee Conversations INTERNATIONAL COMMITTEE Gary E. Tomczak Co-Chair INTERNATIONAL PAPER Director, Capital COE Chris Dummermuth Co-Chair MERCK AND CO. INC. EMEA Director of Project Delivery Registration is now open for the International Committee’s next meeting. Mark your calendars for September 18, 2019, and join industry colleagues in Shanghai to discuss Growing China’s Construction Network Community. Share learnings on Lean principles, modularization and other innovative approaches. Collaborate on behavioral safety approaches, Lean construction and technological applications. Build industry capability with programs to mitigate and accelerate owner and contractor design delivery. CURT has hosted more than 10 construction forums in China since 2010, all with a focus on sharing information and growing understanding on construction best practices, industry trends and technological advancements. Attendees at this event will learn from industry leaders on how their global companies are changing the landscape to address and anticipate industry challenges. Thank you to our sponsor and host, Roeslein Associates Mechanical Engineering (Shanghai) Co. Ltd. Registration is also open for CURT’s European Summit, October 17, 2019, in Dublin, Ireland. Its theme is Digital Construction Empowering Construction Jobsites. For information on the topics that will be discussed in Ireland, check out this link: https://geniebelt.com/blog/top-10- construction-technology-trends-for-2019. Thank you to our sponsor/host, PM Group. Both of these events are open to the public so make sure to notify your in- region colleagues, clients, and supplier organizations! LEAN PROJECT DELIVERY COMMITTEE Al Schwarzkopf Co-Chair MERCK AND CO., INC. Associate Director - Engineering Robert Wagner Co-Chair P&G Family Care GBU Construction Manager The Project Excellence Committee has recently transitioned to the Lean Project Delivery Committee, however, work continues on CURT’s Project Excellence Awards. The Lean Project Delivery Committee is now focused on planning its Lean Construction Summit, which is scheduled for Charleston, South Carolina, September 11, 2019. The theme is Building a Successful Integrated Team – Characteristics of a Lean Powerhouse Team, and topics will include an owners’ perspective on high performing team building, trade perspectives, optimizing design assist, and building with multi-party modular. Attendees will also benefit from hearing from Klaus Lemke, keynote speaker, author and Lean construction coach. You can register online at www.CURT.org. The Committee would also like to welcome Rob Wagner as its new Co-Chair. Rob joins the Committee with 35+ years’ experience in the project and construction industry. Within P&G Engineering, Rob has earned internal recognition as a master-level project manager, master level construction manager, and master level cost engineer. Welcome Robert! SAFETY COMMITTEE Chris Fought Co-Chair GENERAL MOTORS Global Construction and Contractor Safety Kevin Owsiany Co-Chair JOHNSON & JOHNSON Director, Project Management The Safety Committee hosted a Safety Summit in June 2019, focused on OSHA, marijuana/drug testing, recognizing impairment, and much more. Attendees benefited from learning from industry experts on how to minimize risk on projects. Now our attention is shifting to the future – how to collect more data for the Safety Benchmarking Portal, what topics we should research moving forward, and what themes we will explore at the CURT 2020 National Conference in February. We look forward to seeing you all in Clearwater Beach, Florida, in November, where we will present CURT’s CISE Safety Awards! WORKFORCE DEVELOPMENT AND INDUSTRIAL RELATIONS COMMITTEE Eddie Clayton Co-Chair SOUTHERN CO. GENERATION Contracting & Workforce Development Strategies Manager Ed Luckenbach Co-Chair AIR PRODUCTS AND CHEMICALS, INC. Manager – Field Execution Team14 The VOICE ● Issue 3, 2019 GET TO KNOW CUR T Workforce challenges continue in several areas of the United States and Canada. As representatives of CURT, we believe that owners must set the course to create change and only do business with those contractors who invest in training and maintaining the skills of their workforce. This is a major step, but an important one. Our Committee is working on several initiatives alongside industry partners, including Build Your Future, the Construction Labor Market Analyzer, and the Construction Workforce Development Assessment. If you would like to get involved, please join us at CURT’s next Member Meeting in Charleston, SC on September 10, 2019. OFFSITE CONSTRUCTION COMMITTEE Bill Lewis Co-Chair SABIC Senior Manager, Projects Construction, Global E&PM Mike Brewer Co-Chair FREEPORT- MCMORRAN INC. Director, Global Project MM Planning continues for the upcoming Offsite Construction Summit, November 6, 2019, in Clearwater Beach, Florida. The goal of the Summit will be to build upon the 2017 and 2018 events by focusing on today’s challenges and best practices related to planning, budgeting, scheduling, and executing projects. The primary theme of the summit will be related to Truck Shippable Modules (which primarily support small and medium size projects), with a secondary theme of Complex Process Modules. We will also explore significant advantages during turn arounds in reducing unit down time. The Committee’s plan is to focus and coordinate the topics of the Summit around all sizes of truck shippable modules, including standard, oversized, and permitted loads in a wide variety of industry applications, including, but not limited to, the following: oil & gas, mining, chemical, automotive, industrial manufacturing, pharmaceutical, alternative energy, power, food and beverage, and mission critical/ data centers. This topic is incredibly important as our industry continues to explore new and innovative ways to be more productive. More details will be available soon! PROCUREMENT COMMITTEE Mathew Daniel Co-Chair HONDA OF AMERICA MFG., INC. Senior Staff Administrator | CAPEX Procurement Indirect Group Leader Rodney Long Co-Chair DUKE ENERGY Director, Sourcing, Major Projects Sourcing With our Supplier Relationship Management (SRM) study complete, the Procurement Committee has begun to align itself with other CURT Committees in an effort to support the activities of those team(s). Our initial collaboration effort will be with the Workforce Development Committee, where we will assist in the development of pre-qualification criteria for capital construction projects. Contracting methods and sourcing processes are additional focus areas that our team will likely address at some point in the future. In addition to this, we are in preliminary discussions with members of the Lean Project Delivery Committee, where some of the aforementioned procurement-related functions may translate as well, specifically when it comes to Lean / IPD and how to structure agreements within that construction delivery method. There is no shortage of collaboration opportunities for procurement, but we are still in need of purchasing professionals from your organizations who can consistently attend the CURT events, lend their insight(s), and help solve complex problems facing our industry. We look forward to seeing you in Charleston, South Carolina, so please encourage your procurement representatives to attend and connect with us. Thank you. TECHNOLOGY AND PRODUCTIVITY COMMITTEE James Boileau Co-Chair ZURICH Construction Segment Director Ryan Fertig Co-Chair VESTAS Head of Construction, U.S. Real Estate The newly-formed Technology and Productivity Committee is dedicated to how technology intersects throughout all the different areas CURT is focused on. Members will discuss strategies for researching, evaluation, and implementing new technologies, without endorsing a specific vendor. The goal will then be to inform CURT members about all the new and exciting innovations that are on the market and on the horizon. The Committee will roll out officially at CURT’s Member Meeting in September. For a sneak peek, flip to page 24, and make sure to check out our inaugural meeting in Charleston, South Carolina. Committee meetings are open to all CURT members. YOUNG PROFESSIONALS ADVISORY BOARD Colton Brown Chair SABIC Project Engineer CURT’s next Young Professionals (YP) Summit is November 4, 2019, in Clearwater Beach, Florida. While details are still being worked out, I can tell you this – the speaker line-up is going to include some of the industry’s leading experts, and it will also feature some non- industry specialists who will share their knowledge on issues that affect our generation of workers. Who should attend? YPs employed by owners, contractors, and other industry organizations will all benefit from being a part of this. Network, connect with industry peers and experts, and take part in interactive sessions where questions are encouraged and answers are plenty. Details will be available this fall. Make sure you are connected with us on Facebook to stay in the know: https://www.facebook.com/ groups/216417488377887/. ●16 The VOICE ● Issue 3, 2019 LLike most other industries across the United States, the construction sector is becoming increasingly digitized as its leaders strive for success in the information age. And, although the engineering and construction (E&C) industry may have a long-standing reputation of being somewhat of a laggard in regard to innovation in comparison to other industries, the companies that lead the trend and choose to invest wisely in digital innovation today, will absolutely have the competitive advantage tomorrow. This desire for the construction industry to bring its best practices in line with the high-tech demands of the 21st century can be evidenced by the large – more than $20 billion – amount of venture capital that has been entering the space over the last few years, accompanied by a rapid growth in Other Industries Have Perfected Modern Production. So, When Will Construction? ↑ Workers building cars in a factory, 1930s. ↑ From That to This: The Construction Users Roundtable 17 construction technology firms and greater focus on integrated data management systems. “Many investors are looking to our industry as a place of opportunity because it is a large industry that is estimated at about $10 trillion each year globally,” says Pete Dumont, Executive Advisor at The Premier Resources Group, and Principal of PrairieDog Venture Partners. “Yet, it is also one of the most inefficient and is highly fragmented, complex, and dysfunctional. We often still operate and behave in much the same way we did decades ago; characterized more by combat than collaboration and burdened by a highly inefficient supply chain structure.” There are many challenges to increasing productivity in the construction industry. However, when talking about this topic rarely does the conversation question – or even consider – the method of production currently being used. “We would still be building cars by hand and piece by piece if someone didn’t stop to question the methods of auto production,” says Stephen Mulva, Director at the Construction Industry Institute (CII). “But the problem with the construction industry is that we simply don’t do that. We refuse to question our current methods of production and seem willing to do the same things that we’ve always done and in the same ways, just pushing everyone to do everything faster. We won’t see any big gains in productivity doing that.” To ultimately improve, the construction industry must begin to reflect on innovative and modern production methods that improve efficiency and effectiveness, and not just focus on productivity itself. Currently, there are three main modern production methods that are beginning to steer the conversation in that direction: Lean, Advanced Work Packaging, and Project Production Management. Lean and Integrated Project Delivery Today it is not unusual to have several dozen different companies working on a job site to deliver a single project, and almost all of them are working under two-party contracts. The multiple layers of these two-party contracts promote a culture of ON THE COVER continued on page 20 ↑ intense competition, where everyone can see the issues but few are willing to challenge the status quo. Owners who are close to the work see the inefficiencies and waste and don’t want to pay for it. They are willing to try something else. For Procter & Gamble (P&G), this meant adopting the principles of Lean and Integrated Project Delivery (IPD). There is no need to look further than the manufacturing sector, which went through a similar time of transitional crisis years ago, to see the benefits of Lean. Manufacturing companies that adopted Lean principles and practices saw better quality, lower costs, and higher margins. Those that chose not to are no longer in business. “Lean will be the ante for anyone wanting to stay in business,” says Mike Staun, former Associate Director – Global Capital Management at Procter & Gamble, now retired. “But simply doing Lean – while essential – is not sufficient, and the degree to which it’s adopted will be the determining factor to a company’s eventual fate. Just as every car manufacturer now embraces Lean to some degree, the most successful, such as Toyota, have taken Lean to a completely different level.” Lean practices like Target Value Design, Last Planner, and co-location in a Big Room integrate the E&C project team and enable collaboration. As a result, project teams deliver better cost, schedule, quality, and safety results. The IPD Agreement is the contractual arrangement that boosts project results and enables project teams to collaborate at unprecedented levels. The 2016 Motivation and Means study, How and Why IPD and Lean Lead to Success, by Renee Cheng and Andrea Johnson from the University of Minnesota, explored 10 major construction projects across North America and demonstrated a striking uniformity of success for all projects because of Lean / IPD. IPD provided the motivation, and the Lean practices provided the means for teams to achieve superior results. “This is exactly what we saw on the Lean / IPD projects we did at P&G over the past three years,” says Staun. “The design itself became better and easier to construct with the early engagement of key trade partners and the build went better, as the entire team, including the designers, found ways to eliminate waste and improve the work flow with pull planning, extensive use of pre-fabrication and modularization, and with unprecedented levels of collaboration. All combined, this resulted in lower costs and faster schedules, as well as better overall build quality and safety.” P&G’s results to date with Lean / IPD have been so encouraging that it is now the company’s default project delivery method. “It became obvious that Lean IPD outperformed traditional project delivery methods in both cost and schedule,” says Staun. “Additionally, we saw more constructive relationships with – and between – our E&C partners. And the P&G people who worked on these projects found them so much better that many commented that they’d never want to work in the ‘old way’ again.” Lean / IPD allows owners to engage the right people at the right time to work on their most challenging projects. And while the work is still bid upon, partners are selected at the beginning Next >