Setting the Stage: Construction Success Simulations Engineering, Procurement, and Construction Process

Finding reliable and useful information about construction management on the internet can be difficult to locate. Typically, learning these strategies through real life experience is long and difficult road. True experience takes many hard lessons and for a few lucky individuals, good mentors help expedite the process. The CSS process does not intend to be THE answer, but hopefully, this is a beginning to spark more conversation. We need more veterans of the industry collaborating with the next generation, so their careers are put on a fast track.

Construction values related to safety and quality will always be mainstays for success. Understanding that, the intent of CSS is to present information related to the process of schedule compliance and productivity. All construction values are equally important for success, true professionals will deliver on each one, not either or. Subscribing to the notion that productivity cannot coexist with safety and quality seems to be the path of the last two decades. A formal and sound workforce development program is a vital requirement to meet world class construction objectives. Many times, the discussion leads to the state of the workforce, the lack of talent and not enough time given back to the construction community by investing in the future. At CSS, we want to take this opportunity and challenge individuals to think differently for a better future.

The information presented in the upcoming modules is designed to help the user better understand the Engineering, Procurement, and Construction (EPC) Process. The focus is primarily on the construction side of the business. With the mindset we are all students of the industrial construction game, always searching for a better way, we start the journey. By presenting ideas, helping advance your thinking, adding information to your toolkit, we believe you can stay ahead of the challenges presented every day. We are not the end all be all, only a tip of the iceberg. By starting a dialogue and passing information to the next leaders of the industry, sort of a “passing the torch” mentality, we feel a bridge can be built.

For me, beginning at $5.20 per hour as a field pipe engineer and rising through the ranks to Vice President and Senior Vice President for multiple large private and public construction companies, I’m sure if I can be taught these lessons, then others certainly can be taught. With your desire and ambition, you should be able to meet and exceed your goals and expectations. How can we help?

Large construction companies have proprietary tools and information for their use and their use only. Our vision is to share information learned about the business over the last 45 years. Working for various companies, none of them did processes the same way, but in some ways, they did many activities the same. The tools we use are summations of how to reconcile various methods and provide a blueprint that will be revised many times in the future. Some tools are self-invented to survive in chaotic situations. Maybe they can help you avoid a problem?

Information throughout this course have been tried and used for years with exciting results. Some situations encountered and corrected came from process negligence, leading to devastating outcomes. The time for the next generation has come. We don’t want to let the next leaders of this great industry spend unnecessary time, wondering how to accomplish their dreams and goals. We also understand moving too fast can cause failures. Building a great foundation is a key for a long successful career. For many years, leadership was possessive of information, feeling like it was power or job security. We cannot survive with that mentality.

Processes we deliver are like taking a flight on an airplane. You simply cannot just prepare, set a single plan, sit back, and hope to land somewhere successfully. Processes require daily inputs, critical adjustments, and many difficult decisions. However, along with your own life experiences they will take you to your destiny if you continually work hard. In your career, having a proactive plan will help prepare you far in advance for the adjustments needed for the difficult journey ahead. When you make mistakes, trust me you will, you best learn from them. Sometimes, plans and ideas will be well thought out and executed, yet outside forces can dictate the outcome.

When making plans, keep in mind that the “perfect plan” does not exist. We are not advocating the ideas contained here are the “only” method of planning, we are advocating that it’s imperative that you have a method to proactively plan and succeed. All projects start out with two distinct choices. 1.Proactively plan, or 2. Reactively mitigate. Reactively mitigating is both painful and costly. Proactively planning is what we call “Left of Zero”. Zero being construction mobilization, the time that is the job before the job, the time when the game is won or lost. A poor scope and quantity definition will lead to disaster.

Companies use different estimating databases and most use Primavera P6 scheduling. We strongly advise working within those guidelines however we work outside those tools to validate the numbers. At times a project can get into a situation where both cost and schedule are under assault and methods to correct are needed. By using correlations and ratios you can take another view of the plan and do sanity checks. Every aspect in this industry is exciting, dynamic, and changes daily. Individuals that are computer savvy will have an easier path forward when building plans. The challenge is learning how to effectively anticipate the results of future events. Another hurdle that must be overcome is the time required to learn how to interpret the data your plans indicate. Many times, we see a good plan and the data has been misinterpreted. The course the team was on was leading to disaster. We use targets and ranges, so the plans have room to move, and adjustments made; there are no absolutes, merely guidelines and probabilities. These methods for planning have been around since a pencil, paper, and a hand calculator was used to build them. Projects are like a breathing entity. It will scream at you, asking for help or adjustments that must be made to the plan. Again, data interpretation is critical. Don’t get caught up in different opinions, they will always exist. All opinions are critical to reaching the final path to choose. Trust your numbers.

It needs to be said over and over, if your plan does not work on paper, it will not work in the field. Too many times people are guessing and do not interpret the numbers correctly. Everything we do in construction can be planned and calculated. Some plans might require more contingency than others but still must be calculated. A hard lesson to learn is chaos is hard to calculate. Again, it is important to plan proactively. Construction leaders are eternal optimists. We believe all obstacles can be overcome and sometimes we go into denial. Often, we see late decisions or information, causing quantity growth. Without trending these, the probability of success can be placed in jeopardy.

If you are reading this, you have a thirst for knowledge and a yearning for an understanding of the business and growing your career. We are immense fans of reading business books that help shape your style. Two such books we suggest adding to your style are “Start with WHY”, by Simon Sinek and “HOW”, by Dov Siedman. By finding your passion in WHY and learning your special sauce in HOW, helps you begin to understand what makes you and/or your company special and how YOUR processes differentiate you from the competition.

Your career is yours, guard it, nurture it, and grow it. Many in this industry have hard knowledge or a good educational background, coming from varying avenues. We strongly advise making a commitment to developing your psychological capacity by reading and immersing yourself into books from the self-help, positive attitude, and business section of your local bookstore. The construction business will test you greatly. The more you grow, the more your psychological mindset is hardened with positive outcomes, the better you are equipped. If you are not reading, you are losing ground. With regards to personal training, it never ends until you decide to retire. Until then, keep grabbing everything presented to you. Sometimes, when reading a book, you might only find one or two nuggets for your tool kit. Grab it, file it away and hone your skills.

Contractors want to build world class facilities, owners want to bring products to market, enhancing our lives. No one enjoys the commercial issues we often face on projects. By using CSS processes, decisions can be made in real time, allowing decisionmakers the opportunity to avoid surprises. Many times, we don’t see the problem until its too late, relationships get tested, cost goes up, and schedules get compromised. When this happens, safety and quality become a challenge. Our goal is to make time your friend and not your enemy.

The CSS platforms offers the following process to compliment the processes we expect are already in place with regards to estimating and schedule.

1. Estimate Review Process

2. Project Duration Evaluation (Patent Pending)

3. Schedule Protection Process

4. Quantity Trending Process

5. Schedule Impact/Extension Evaluation (Patent Pending)

6. Workforce and Quantity Planning- Acceleration/Recovery Plans

7. Earned Value/Rules of Credit

8. Commissioning Process

CMS1 is designed to prepare students for industry expectations. This platform allows them to track their progress and see when they achieve the minimum requirements to enter the workforce. Once a student graduates, they then enter our database and are able to be recruited for a job.

Once hired, they will perform a pre-hire quality and efficiency test just like established welders. This platform will allow recruiters to see potential candidates right from their screen without ever having to leave the office.

The welder recruitment page will revolutionize the way our industry hires skilled labor. The ability to have certified resumes that show performance will not only help recruiters out, but it will help welders to find jobs without having to rely on word of mouth.

Measuring and Improving Welder Efficiency

The construction industry’s concerns about the shortage of welders needed for the workforce have been ongoing. Challenges everyone faces are the recruitment and retainment of talent.

What changes can management incorporate to increase the probability of success?

Traditionally the challenge has been met with raising wages and per diem. In some cases, the scale of welders is escalated as compared to other employees, using the quantity of certifications for justification for the differential. Certifications may be a good way to select welders for skill, but they do not provide accurate data for better efficiency. How to achieve a better efficiency/productivity rate should be the basis for setting the wages.

Schools across the country are doing a good job helping to alleviate the shortage of welders, but more guidance is needed from industry leaders. Are they teaching efficiency equally with quality and safety? All three are expected by industry. Has the industry done a good job of explaining the level of efficiency expected when new welders enter the workforce? Expectations will vary from company to company, but the total time to make a weld on the super-bull coupon should be standardized so the industry has a metric in which to work. The difference between what industry expects and what the new graduate produces can be vastly different.

CSS has developed precise applications that measure the times for each student/welder to make a weld and provide an instant scoring metric. Industry experts were consulted on expectations for a safe, quality, and efficient weld time. CyMyScore1 (CMS1) is a test used to score the student welder in making an efficient quality weld in a school environment. CyMyScore2 (CMS2) is a pre-hire test used to set the pay-for-performance rate. CyMyScore3 (CMS3) is used to measure field productivity, providing precise feedback to the administrator and allows for efficiency to be tracked from gate to gate.

Today the main focus is to have an adequate number of welders. Let’s say that number is 18. CMS2 rates welders in three categories: GOLD, SILVER and BRONZE. Having a balanced mix of six gold, six silver and six bronze welders provides an average output. By utilizing the CMS approach, welder efficiency is validated. By knowing when a shift of three high production GOLD welders to less productive BRONZE welders, productivity loss of approximately 13% could be avoided. If the focus is only on the number of welders on a project (18) and not the CMS pre-determined score, erosion of productivity will occur.

Here is a hypothetical cost analysis for a 50-person pipe department that has 18 welders. By separating the crew into three equal groups of 6, the crew mix can have equal gold, silver, and bronze numbers. This equal distribution would be optimum. What happens if six gold welders drop to three and the other three move to Bronze? Now, the nine bronze welders welding at 40% of the efficiency of what a gold welder output is, is a 13.6% productivity loss. This stated in dollars, is about $400,000.00 annual loss. Today, the industry only knows the number of welders it has on-site. The industry’s focus in not on analyzing the efficiency of welders. Until the industry considers measuring this, it will be susceptible to not having a grasp on the underlying challenges it currently faces.

In using the CMS2 app, the objective is not to change the as-sold budget for the project. This allows the app user to set efficiency-based pay differentials. If the prevailing rate is $35.00, a differential of 10% might be considered. The new rates being $31.50, $35.00, and $38.50 or an average of $35.00. Conceivably, if more gold welders were hired, the same output could be achieved with fewer workers. Taking a national look at the US pipe employment numbers in September 2021, there were 290,671 pipe welders employed. Assuming an estimate of 34% of welders are on construction sites (100,000) and welders are 3 of 9 (33%) of the workers in a crew, this escalates the number for the direct installation employees to 300,000. If we assume a forty-hour work week, 2080 hours a year, this calculates to 624,000,000 workhours annually. Assuming a $30.00 labor rate, the estimate is $18,720,000,000 for direct labor costs. Indirect labor or the marked-up cost could triple the cost to a $90.00/hour cost or a total of $56,160,000,000. What happens if a 10% loss of productivity is experienced? A loss of $5,616,000,000 could be felt annually across the industry. Returning better productivity to America is vital, without sacrificing safety and quality.

The CSS Platform offers tools that create instant methods of feedback.

Efficiency test scores to help students understand the level of expectation required in the field or encourage them to continue perfecting their skills.

Student dashboard that allows companies to focus recruiting on high scorers at multiple locations.

Pre-hire efficiency tests that dictate the pay-for-performance rate for the welder

Recognition for the pipe fitter that helps the welder accomplish a high score and allows for equal pay-for-performance consideration

Post hire scores on which team members prove a return on investment.

Welder dashboard to quickly analyze results and see who the top performers are and who is progressing.

Welder database that records welder scores, training, certifications, and contact information.

The goal of the CMS approach is to turn back the clock on lost productivity and provide one solution to the welder shortage.

Copyrighted 2021

Designed to track an electrical student's progress through their journey before entering the workforce.

Electrical for installation use, conduit, cable, and terminations.

Designed for electricians with validated scores to be placed in a recruitment database and scouted for upcoming jobs based on their scores and certifications.

Q. Where did the data supporting CMS3 come from?

The original manual data for CMS3 was built in 2002. Beta testing for performance has been manually performed over many years to track performance erosion. Additional research was performed to set the baseline for the app.

Step one monitored the efficiency of top performing welders.

Step two compared the estimated units for welding to the high performance welder output, rebase-lining the 1.0 budget efficiency.

Step three normalized all welds by size and wall thickness.

Step four measured the output for 100 welders for nine months on a combined cycle power project that had multiple sizes of pipe, wall thicknesses and metallurgies.

Step five compared the percentage of pipe welders in a pipe crew.

Step six established a baseline comparison between manual and automatic welders.

Q. Where did the data for CMS1 and CMS2 come from?

Working with subject matter experts from the welding profession, a database similar to a credit score was built, standardizing all welder performance. When a welder takes the timed test, a score will be provided that lands in one of three ranges, Gold, Silver, and Bronze.

Q: What does CMS stand for?

CyMyScore. CSS developed precision apps, scoring welder efficiency. This allows welders to secure a personal score for efficiency. The contractor and owner know what they are getting in performance. The end goal is to produce a Pay For Performance Process creating better morale, safety and quality.

Q: Who should use CMS1?

High Schools and Career Techs should use CMS1, preparing students for entry into the workforce. Knowing performance expectations prior to hiring allows a seamless transition from school to work.

Q: Who should use CMS2?

Contractors or owners should use this app at hire- in. After a welder passes the quality test required for employment, a timed efficiency test is given. The CMS2 test provides an instant score for the welder to land in the Bronze, Silver or Gold level.

Q: Who should use CMS3?

CMS3 is a productivity app for daily use in the field that produces a score. That score verifies welder output, validates the pay rate and provides ROI feedback. This app also provides an overall team score that indicates project performance. Looking at several weeks of performance and averaging the scores will provide a more valid score. Welders have up and down days on performance due to extenuating circumstances.

Q: Why change the way we measure production today?

From recruiting, hiring, to daily output, performance rating should be part of the process and how much a welder is paid. CSS scores and tracks a welder with precision. With a difference of 2 to 3 times in efficiency, why not reward performance?

Q: How do I create my resume?

A welder can access the portal and input certifications, training and experience. They cannot add a CMS score.

Q: Where can I take a CMS accredited test?

At a project site or at a school that certifies and uses CMS.

Q: How many tests can I take in a year?

As many as you require to raise your score. Efficiency is our goal.

Q: Does CMS save money?

The number of welders on site has always been the focus. The efficiency of welders has not been measured until now. By knowing the efficiency and speed of a quality welder, output can be measured and rewarded. The efficiency differential can save hundreds of thousands in lost productivity.

Q: What pay differential should be applied?

The end user should separate the pay as much as they feel comfortable and still obtain welders. Hiring Gold welders, at a higher pay rate, should require fewer welders. Consider as a example: 10% ($38.50) above and 10% ($31.50) below the normal rate while maintaining the as-sold rate ($35.00) as an average.

Q: What degree of difference has been seen in weld times for the CMS2 test?

From 1.5 to 6 hours can be seen for Bronze time to Gold time. Imagine this on your project.

Q: How much money can be saved?

The dollar amount will vary. In addition to knowing the efficiency of each welder, more Gold welders might reduce the overall number required. On a base analysis of 6 gold, 6 silver and 6 bronze welders, (when 3 gold were shifted to bronze) up to 13% lost productivity was seen.