Industrial Process Plant Construction Estimating and Man-Hour Analysis PDF
Preview Industrial Process Plant Construction Estimating and Man-Hour Analysis
Industrial Process Plant Construction Estimating and Man-Hour Analysis Industrial Process Plant Construction Estimating and Man-Hour Analysis Kenneth Storm GulfProfessionalPublishingisanimprintofElsevier 50HampshireStreet,5thFloor,Cambridge,MA02139,UnitedStates TheBoulevard,LangfordLane,Kidlington,Oxford,OX51GB,UnitedKingdom ©2019ElsevierInc.Allrightsreserved. Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,electronic ormechanical,includingphotocopying,recording,oranyinformationstorageandretrievalsystem, withoutpermissioninwritingfromthepublisher.Detailsonhowtoseekpermission,further informationaboutthePublisher’spermissionspoliciesandourarrangementswithorganizations suchastheCopyrightClearanceCenterandtheCopyrightLicensingAgency,canbefoundatour website:www.elsevier.com/permissions. Thisbookandtheindividualcontributionscontainedinitareprotectedundercopyrightbythe Publisher(otherthanasmaybenotedherein). Notices Knowledgeandbestpracticeinthisfieldareconstantlychanging.Asnewresearchandexperience broadenourunderstanding,changesinresearchmethods,professionalpractices,ormedical treatmentmaybecomenecessary. Practitionersandresearchersmustalwaysrelyontheirownexperienceandknowledgeinevaluating andusinganyinformation,methods,compounds,orexperimentsdescribedherein.Inusingsuch informationormethodstheyshouldbemindfuloftheirownsafetyandthesafetyofothers,including partiesforwhomtheyhaveaprofessionalresponsibility. Tothefullestextentofthelaw,neitherthePublishernortheauthors,contributors,oreditors,assume anyliabilityforanyinjuryand/ordamagetopersonsorpropertyasamatterofproductsliability, negligenceorotherwise,orfromanyuseoroperationofanymethods,products,instructions,or ideascontainedinthematerialherein. LibraryofCongressCataloging-in-PublicationData AcatalogrecordforthisbookisavailablefromtheLibraryofCongress BritishLibraryCataloguing-in-PublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN:978-0-12-818648-0 ForinformationonallGulfProfessionalpublicationsvisit ourwebsiteathttps://www.elsevier.com/books-and-journals Publisher:BrianRomer SeniorAcquisitionEditor:KatieHammon EditorialProjectManager:MichelleW.Fisher ProductionProjectManager:AnithaSivaraj CoverDesigner:MatthewLimbert TypesetbySPiGlobal,India Preface Construction projects are divided into three sectors: building, infrastructure, and industrialconstruction. Buildingconstruction:Thissectorisdividedintoresidentialandcommer- cialbuilding. Infrastructure: Infrastructure is divided into heavy civil engineering that includes airports, bridges, dams, tunnels, highways, hydropower, water treatment, distribution, andrapid-transit systems. Industrialconstruction:Industrialconstructionincludesrefineries,power generation,mills,andmanufacturingplants.Theseprojectsareidentifiedby the plant processand vary insizeand complexity. This edition of Industrial Process Plant Construction Estimating and Man-HourAnalysisfocusesonindustrialprocessplantsandenablestheesti- matortoapplystatisticalapplications,estimatedatatables,andestimatesheets tousemethodsforcollecting,organizing,summarizing,presenting,andanalyz- inghistoricalman-hourdata.Asconstructionprocessesbecomemorecomplex, contractors are placing a greater importance on specialized education. It is increasingly important for estimators, engineers, and construction managers tohaveabachelor’sdegreeinaconstruction-relatedfield.Astrongbackground inmathematicsandstatisticsisessential.Estimatorsarerequiredtosetupcost codes, summarize and analyze historical data and trends, and maintain labor databasesbyenteringandbackingupdata.Construction-workestimatingdata setsorbooksareusedforconstructionanalysisandcostestimating.Thesedata setsandbooksneedtobeevaluatedforaccuracy,reliability,verifiability,and convenience.Theconstructionbusinessrequiresstatisticalmethods,indexing, costanalysis,andestimatingtoprovidedetailedaccuratebidproposaltohandle increasingcompetition.Engineersandcontractorsusestatisticalmethods,his- torical data, and man-hour tables, which are entered into the computer, that model the work of construction. The purpose of this book is to provide the reader the latest estimating and statistical methods to evaluate the accuracy and verify historical data collected from field installation of process piping andequipmentinindustrialprocessplants.Thebookbeginswiththeintroduc- tion devoted tolabor, productivity measurement, collection of historical data, estimating methods, and factors affecting construction labor productivity and impacts of overtime. Then, estimating is developed, and project sections for xix xx Preface equipmentaregiven.Engineering,contractors,andownersareconcernedwith statisticalapplicationstoindustrialprocessplantsandthissectionisprovided. Thebookdevelopstheprincipalsinasystematicway,andthebookisdivided into 12 chapters. The first chapter is an introduction to construction statistics usingExceltemplatesandmathematicalspreadsheets.Thepurposeofthischap- teristoprovideabasicunderstandingofhowtouseExceltemplatesandspread- sheetsspecifictoconstruction.TheseExceltemplatesandspreadsheetsareused toprovideastep-by-stepguideforhowtosetupandperformawidevarietyof statisticalapplicationstoindustrialprocessplants.Chapter2providesthereader theman-hourschedulesandtablesfortheinstallationofprocesspipinginindus- trialprocessplants.Chapters3–10providedetailedscopesofworkforeachsec- tionandman-hourtablesbasedonhistoricaldatacollectedfromfielderection ofequipmentinstalledinindustrialprocessplants.Estimatesheetsthatitemize theequipmentscopeofworkaresetuponacomputer,andhistoricalman-hours, usingtheunitquantitymodel,calculatethedirectcraftman-hours.Installation man-hours are summarized, and historical man-hoursare comparedwithesti- mated man-hours. Chapters 11 and 12 provide sample estimates and illustra- tions of statistical applications to industrial process plants. The direct craft man-hourshavebeenverifiedbystatisticalanalysisandweredeterminedfrom timeandmeasurementofcraftlaborforfielderectionofprocesspiping,equip- ment, and boilers installed in process plants throughout the country. The sec- tions’ work scope, man-hour tables, and estimate sheets are applicable for all contractors, engineering firms, and process plants that install process piping, equipment,andboilersinindustrialprocessplants.Thestatisticalandestimat- ingmethodsinthisbookwillenableestimatorsandengineerstopreparecom- prehensiveanddetaileddirectcraftman-hourestimates,RFPs,andfieldchange orders for the following industrial process plants: diesel, solar, and coal-fired power plants; industrial package boilers; pulp and paper plants; oil refinery; andboiler tube replacement. Construction experience and education may vary, and we believe that the book is suitable for those working in engineering and construction. The book has been written to appeal to engineering/technology/construction estimating andmanagementsettings.Thebookwilldecreasethechanceoferrorandallow estimators to accurately determine the actual direct craft man-hours for the completeinstallationofprocesspiping,equipment,andboilers.Theestimating methodsinthisbookwillenabletheestimatortousethecomparisonmethodto estimatethedifferencesbetweenproposedandpreviouslyinstalledequipment andboilers,andtheunitquantitymethodwillbeafinalcheckontheestimated man-hourscomparedwiththehistoricalman-hours.Thebookdoesnotinclude man-hours andcost formaterial,equipmentusage, indirect craft, supervision, project staff, warehousing, and storage. The direct craft man-hour estimate is thebasisfortheestimatortoobtaintheprojectscheduleandthecostformobi- lizationanddemobilization,indirectcraft,supervision,projectstaff,construc- tionequipment,subcontractors,material,sitegeneralconditions,andoverhead Preface xxi andfee.Inaddition,theestimatormustdetermineallfactorsthatwillaffectpro- ductivity and overtime impacts. Reviewoftheprefaceandintroductionwillenablethereadertounderstand craftlaborproductivity,productivitymeasurement,collectionofhistoricaldata, estimating methods and labor factors, and loss due to labor productivity and overtimeimpacts To apply the scopes of work, direct craft man-hour tables, and estimating sheets,thereadermustbefamiliarwiththefollowingchaptersentitled“Intro- duction and Chapters 1, 11, and 12.” These chapters illustrate, with practical examples, the steps required to estimate and analyze man-hours to uncover the relationships thatexistfor process plant cost andlabor: (1) Introduction will enable the reader to set up cost codes and methods for collecting, organizing, summarizing, presenting, and analyzing historical man-hour data using graphic and regression analysis to verify historical data. (2) Chapter1enablesthereadertosetupanduseExceltemplatesandspread- sheetstoautomatestatisticalfunctionstoperformmathematicalandstatis- tical applications tomake the connection toprocess plant construction. (3) Chapter 11 provides the reader the “industrial process plant construction estimating process” to enable the reader to use statistical and estimating methods, scopes of work, man-hour tables, and estimate sheets to the following: (a) Evaluate the accuracy and verify historical data collected for process piping andequipment installed inindustrial process plants (b) Provideacomprehensiveandaccuratemethodusingconstructionsta- tisticsandestimatingmethodstocompiledetailedcraftman-houresti- mates for bidproposals, RFPs, and field change orders (4) Chapter12providesthereadertheknowledgetouseconstructionstatistics toforecast,uselearningcurvesandtimeseriestovalidatedata,andprepare detailed estimates. This chapter includes practical examples of statistical applications and methods to help the reader understand the importance ofman-houranalysisandestimatingwiththeintentiontopointoutthecon- nection to construction. Construction statistics depends on statistical and mathematicalmethodsandisanimportantpartoffieldcostandconstruc- tionman-houranalysis.Thebookwillbeasourceforthoseengagedinesti- mating, forecasting, managing, and bidding projects in the industrial construction industry. Introduction Introduction Thissectionprovidesmethodsforcollecting,organizing,summarizing,present- ing,andanalyzinghistoricalman-hourdata.Laborproductivityisoneofthemost importantitemsinaconstructionestimate.Toestimatetheproductivityforwork, thereisadependenceonthevalueofhistoricalman-hourscollectedinfieldcon- struction.Thissection,forthemostpart,providesmethodstodetermineproduc- tivity measurement of construction labor. Detailed methods of estimating are basedonhistoricaldatathathavebeencollected,structured,andverifiedbymath- ematicalandstatisticalanalysis.Craftman-hourestimatesaredevelopedbyusing detailedconstruction-workestimatesthatapplytoanycomplexityofdesignand use historical and quantitative data that leadtoa costdriver easily understood. The purpose of this section is to provide the reader the basic understanding to setupcostcodes,methodsforcollecting,organizing,summarizing,presenting, and analyzing historical man-hour data using graphic and regression analysis toverifyhistoricaldata.Labor,productivitymeasurement,trackingsystems,esti- matingmethods,andfactorsforlaborproductivityandimpactsofovertimeare giventoenabletheestimatortopreparedetailedaccurateestimates.Thehistorical man-hour data in this book have been verified by measurement, project cost reports from field erection, foremen’s report, and one-cycle time studies, and thedataarerevisedcontinuouslyduetoconstructiondesign,engineering,labor skill,material,equipment,andprocedures.Informationforman-houranalysisis obtainedfromtheforeman’sreportandisusedtofindthenumberofman-hours forataskandtimecontrol.Thecostengineerandweldingqualitycontrolinthe fieldmonitorandverifythework.Thesereportsarecollectedforfieldconstruc- tionwork.Fromthereportsandreviewofthespecifications,codesanddrawings thecostengineerandtheestimatorwillexaminethedataforconsistency,com- pleteness,andaccuracy.Reportsarecollectedforsimilarwork,andthedataare entered intoa spreadsheet.The spreadsheet preparesthe data for mathematical analysis. Theengineerand estimator determine the productivityrates.The rate isusedforfuturecostanalysisandestimatingsimilarscopesofwork.Theesti- matedataarebasedon“standard,”whichisdefinedas“formingabasisforcom- parison.”Thestandardunitman-hourinvolvestheseconsiderations:Theworkis beingperformedbyacontractorwhoisfamiliarwithallconditionsatthejobsite; theprojecthasthepropersupervision;theworkersarefamiliarwithandskilledin theperformanceoftheworktask;andthereisanadequatesupplyoflabor.There areclarificationsandexceptionsstatedfortheapplicationofthedata. xxiii xxiv Introduction Labor productivity and analysis Labor—Man-hour unit rates Laborproductivityisconcernedwithdirectcraftlabor.Directcraftlabormeans thecraftisworkinginthefielderectionofprocesspipingandequipment.The man-hourisdefinedastheamountofworkperformedbytheaverageworkerin onehour. Formula:Man-Hour¼Time(cid:2)Quantity(RefertotheUnitQuantityMethod) Oncetimevaluesareknownforaconstructiontask,theyaremultipliedby thequantity.Timemaybeforindividualsorforcrewwork,anditisbasedonthe constructiontask.Timeisexpressedrelativetoaunitofmeasure,suchasLF, EA,SF,andTon.Theunitoftimemaybeaminute,hour,day,month,oryear. Examplesof man-hour units are as follows: (1) HRSG—seal weld side, roof, and floor casing field seams; number of welder man-hoursper linealfoot of field welding, 0.35MH/LF (2) Welding butt weld, carbon steel, arc-uphill, WT<¼0.37500; number of welder man-hoursper diameter inch of welding, 0.50MH/DI The union/nonunion craft, experience factor, and PF&D allowances have been included in the craft unit man-hours. Standard unit rates can be used to estimate work anywhere in the United States. The estimator must determine all factors that will affect labor productivity and overtime impacts. The man- hour units and quantities are based on historical data that have been verified bystatistical analysis, andthe man-hour rates are competitive. Productivity measurement Historicalrecordsprovidedthedirectcraftman-hourdataforfieldinstallationof pipingand equipment.Twomethods for the measurement ofconstruction time wereusedtocollect,analyze,andcompiletheactualman-hourdatainthisbook. (1) Foreman report—job cost bycost code andtype (2) Nonrepetitiveone-cycle time study (3) There are several ways in which actual time data are compiled and ana- lyzed from the foreman’s report. One method is to compile data for man-hour analysis obtained from the foreman’s report for mathematical analysis. Then, the engineer will determine the productivity rates. The productivity rates are then entered into the estimating system to be used to estimate future workthat is similar. Thefollowingexamplewillenablethereadertosetupcostcodesandana- lyze historical data, from field erection cost reports, using graphic analysis to verify direct craft man-hours. Introduction xxv Analysis ofForeman’s Report Coal-Fired Power Plant Project: Boiler Erection-Field WeldingRates JOB COSTS BYCOST CODE ANDCOST TYPE HOURS PERDIEM PHASE DESCRIPTION Tubewelding—MHperweld LABOR BURDEN Designpressure(PSI) Tubesize(OD) 1501–2000 000000 Over100andincluding1-1/200heliarc 3.00 000000 Over1-1/200andincluding200heliarc 3.70 000000 Over200andincluding2-1/200heliarc 4.20 000000 Over2-1/200andincluding300heliarc 4.80 000000 Over300andincluding3-1/200heliarc 5.30 000000 Over3-1/200andincluding400heliarc 5.90 000000 Over400andincluding4-1/200heliarc 6.50 000000 Over4-1/200andincluding5-1/200heliarc 7.70 000000 Over5-1/200andincluding6-1/200heliarc 9.00 Foreman’s report Information for man-hour analysis is obtained from the foreman’s report. The foreman’s report is used to find the number of man-hours for a task. The report is used for cost and time control. The cost engineers and welding qualitycontrolinthefieldmonitorandverifythework.Thesereportsarecol- lectedforthefieldinstalledpipingandequipment.Fromthereportsandreview ofthespecifications,codes,anddrawings,thecostengineerandtheestimator willexaminethedataforconsistency,completeness,andaccuracy.Reportsare collected for similar work, and the data are entered into a spreadsheet. The spreadsheetpreparesthedataformathematicalanalysis.Theengineerandesti- matordeterminetheproductivityrate.Therateisusedforfuturecostanalysis and estimatingsimilar scopes ofwork. Validate and clarify man-hour table using graphic analysis Thehistoricaldatacollectedinthefieldtakenovertimecanbediscreteorcon- tinuous.Thecollecteddataaresummarizedintoatabulararrangementbyinter- valsthatcompactsthedataintoviewablerecordscalledahistogram.Plottingof data usinggraphic techniquesallowsresults tobedisplayedinpictorial form. This provides insight into a data set to help with testing assumptions, model selection,regressionmodelvalidation,estimatorselection,relationshipidenti- fication, factor effect determination, and outlier detection. Plotting of data allowstheestimatortocheckassumptionsinstatisticalmodelsandcommuni- catethe resultsof ananalysis.
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