CII AWP Community of Practice Update. Eric Crivella AWP Ambassador / CII AWP COP Co-Chair

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1 CII AWP Community of Practice Update Eric Crivella AWP Ambassador / CII AWP COP Co-Chair

2 CII AWP Community of Practice State of E & C Industry Data & People Outcomes Based Model Cooking and AWP Best Practice AWP COP Trends and Advancements Connectography Q&A 2

3 State of the E&C Industry Our industry Challenge Investing in virtual project delivery and data centric execution Percent Cost Overruns or Delays Percent Average Cost Increase Months Average Schedule Slippage Our house is on fire, Bechtel told the audience. If we don t address [the various problems], we may cease to exist as an industry and customers will cease to have confidence that we can deliver. - Brendan Bechtel CII Conference Keynote 2016

4 Typical Project Ecosystem Utilities Contractor Spool Fabricator Sub 1 Steel Fabricator Civil Contractor Sub 2 Module Fabricator sub. Module Fabricator sub. Engineering sub. EPC/ CM Module Fabricator sub. Module Fabricator 2 Sub 1 MEI Contractor Equipment Vendor Owner(s) CM Engineering sub. Sub 2 Module Fabricator 1 Alignment Platform Needed 4 Engineering sub. Engineer (Feed)

5 Information Mobility Data Centric Execution Engineering Applications Engineering Applications Construction Completions Applications Construction Completions Application Applications Applications ASSET INFORMATION MANAGEMENT Data Centric Execution Platform Handover to Handover Ownerto Owner Occasionally Connected Corporate or Project System Integration Doc Control, Procurement, MMS, Scheduling, Estimating, Earned Value 5 Management of Change

6 Data Centric Execution He/She who controls the data on a project is King/Queen!

7 Success in Advanced Work Packaging Outcomes Based Model

8 Driving Behavioral Change

9 AWP Effectiveness CII RT 319 Validation of AWP Performance Dimension Maturity Stage 1 AWP Early Stage 2 AWP Effectiveness 3 AWP Business Transformation Productivity Around 10% improvement Around 25% improvement Around 25% improvement Cost Project on budget Around 10% below TIC Around 10% below TIC Safety 0 lost-time accident (TRIR below company average) 0 lost-time accident (sporadic first-aids and near misses) 0 lost-time accident (sporadic first-aids and near misses) Schedule Project experienced minor delays Project slightly ahead of schedule during execution Project slightly ahead of schedule during both planning and execution Predictability Not very satisfying (major changes to estimates) Moderately positive (minor changes to estimates) Completely positive (full alignment to estimates) Quality In line with previous quality performance Reworks slightly below company's average Reworks and RFIs substantially below company's average (negligible impact on IWP execution) 9 Invest.5-2% to achieve a 10% reduction in TIC

10 Outcomes Based Metrics How do we know we are getting better Productivity? ID KPI Description 1 PR HS Historical productivity by discipline used for estimating from past performance 2 PRVR Historical variations by discipline from planned productivity rate versus actuals 3 PR PL Planned project productivity by discipline unadjusted for AWP 4 PRAC Actual productivity by discipline during performance (weekly and cumulative) 5 PR TR Trending of productivity by discipline 6 LH TS Total budgeted labor hours & cost by discipline 7 LH AC Total Actual labor hours & cost by discipline 8 LH TR Trending (forecast) of actual labor hours & cost by discipline 9 LH CWP Planned versus actual labor hours & cost CWP 10 LH IWP Planned versus actual labor hours & cost of IWP 11 LH CWP/TR Trending of variance in CWP labor hours & cost by discipline 12 LH IWP/TR Trending of variance in IWP labor hours & cost by discipline Source: Southern Company Presentation at FIATECH 2016 Conference

11 Where are we in the journey? Take the mystery out of it and watch the magic happen! Dr. Jorge Venegas

12 Cooking and AWP Community of Practice Ingredients Recipes Chefs Food Trucks Restaurants Culinary Institutes Critics

13 AWP COP Trends & Advancements Data centric and work flow driven supply chain Construction Driven Execution = EP alignment to C Systems Integration Interface Mgmt AWP + Track & Trace/MMS + Completions Mobility apps field progressing Telemetry AWP Analytics Audits & Measurement Academy / Education / Certification Program & Success Management

14 AWP COP Advancements - Academies CII Registered Educational Provider Program (REPP) for AWP Training

15 AWP COP Advancements Union Training

16 AWP COP Advancements Completions

17 AWP COP Advancements Field Progress

18 AWP COP Advancements Telemetry Astoria Solutions

19 Mobility Field Progressing

20 Connectography According to McKinsey & Company $57B worth of infrastructure investments by 2030 Looks at the infrastructure connections linking the growing mega-cities around the globe, and their consequences for geopolitics, economics, demographics, the environment, and social identity going into the future. Connectedness AWP Community World Peace 20

21 Q&A If you have the Passion.consider joining the CII AWP COP!