Program Success through Execution
Vic Kleinfelter
John Rigby
DuPont
JBEK
Case Study
2000 CII Annual Conference
Nashville, Tennessee
A Case Study
DuPont Fluoroproducts
Expansion Programs
Washington Works Facility
Parkersburg, West Virginia
Owner’s Site
Owner’s Site
Washington Works Site
• Eight major manufacturing areas
• 2,000 acres
• 200 employees in 1948; over
2,300 now
Site Capital Work
Period
Work
Projects
Value
1994-1995
Miscellaneous
6
$50 MM
1995-1997
FP* Expansion
(EPC I)
5
$180 MM
1997-2000
FP* Improvements
(EPC II)
7
$80 MM
*Fluoropolymers
Alliance Contractors for Program
JBEK (Joint venture: BE&K and Kvaerner)
– Contractor EPC Program Manager
– Engineering-procurement responsibility
MK (Joint venture partner with JBEK for EPC)
– Construction responsibility
History
• Low levels of work
• Contractors working independently for
DuPont
• No state-of-the-art engineering tools
• Craft resource pool oriented toward
small capital work, supplemental
maintenance
History
(continued)
• Major cost overruns
• Late completions
• Rework and change combined
- in excess of 20 percent
• No team orientation
The Challenge
• Safety-health-environment is a
requirement.
• Leadership and teamwork essential
to success.
• Use EPC principles for execution.
EPC Principles of Execution
• Total project focus
• Single-point responsibility
• Open communications
• Performance-driven execution
• Truly integrated systems
• Flexibility to meet the business needs
Program Success
Critical Success
Factors
Barriers
• Systems
• Work processes
• People relationships
Tenants
• Safety-Health-Environment
• Schedule
• Cost
• Quality
• Relationships
The Evolution
• Two alliance contractors
individually serving DuPont
• Two alliance contractors working
together — EPC contractors
• EPC contractors integrated with
DuPont businesses — EPC Team
The Program’s Improvement Areas
• Safety
• Work force productivity
• Labor relations
• Construction innovation
• Engineering design tools and deliverables
• Pipe rework
• Project controls
• Procurement and material control
• Relationships
Business Cost Evaluation
(Under-run)
(Over-run)
Budget/Cost Performance
EPC Evaluation
20%
ITC
(Shown as trend only)
0
Pre-20% Program
’94
’95
EPC
Team
Program
EPC 1
Program
’96
’97
’98
’99
’00
Total Site Work Sample Summary
Field and Shop Combined
75
Site Goal = 74
72.9
70.1 70 70.1
67.9
67.1
65.7
65
60
70.2
70.7
72.5
72.3
71.5
71.1
70.7
72.7
72.2
71.1
71.5
71.9
72.1
69.3
69.1
%
72.7
71.9
71.7
70
73.6
73.4
66.7
67.1
67.3
67.4
67
65.8
65.3
67.8
65.6
64.7
60.4
1996
1997
1998
1999
2000
Program Carry-Over to Site Performance
Delrin Capper Replacement Project
• History
• Initial Concept
– $4.0 MM budget
– Outage of six to eight weeks
• Final Proposal
– $2.3 MM budget
– 18-day outage
• Construction Innovation through Engineering
– 650-ton Demag
– Twin path (fiber optic) slings
Program Carry-Over to Site Performance
Delrin Capper Replacement Project
• Final results: $12.125 MM value
– 15-day outage
– Completed under budget
• Direct business value
– $2.0 MM under original concept
– Completed almost six weeks early ($10.125 MM)
• Added value
– Reduced maintenance cost ($1.0 MM/yr)
– Uptime gain ($1.0 MM/yr)
Future State
Successful
Accomplishments
EPC FP
Program
CIP
Lessons
Learned
EPC
Future
Programs
EPC Team
A legacy
for the
future
Program Success through Execution
Implementation Session
Moderator:
John Rigby (JBEK)
Panelists:
Vic Kleinfelter (DuPont)
J. Peter Ellefson (DuPont)
David Adams (MK Corp.)
Presentation:
David Adams
Pete Ellefson
Safety
Labor Relations
Work Force Productivity
Design Tools
Pipe Rework
Responsiveness to Change
Relationships
Value-Added Results