Leveraging Data - CG Visions - 2017 Hyphen Conference
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Join CG Visions, Partner, Tim Beckman to learn about BIM and its significance to the construction industry, how leveraging data improves profitability and what it takes to be the builder of choice.
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Leveraging Data - CG Visions - 2017 Hyphen Conference
- 1. 2017 Customer Conference September 11 - 13 Dallas, Texas
- 2. Tim Beckman Director of Business Development “Leveraging BIM Data to Manage the Chaos”
- 3. What is the Chaos? • Turn-Key/BID/Lump Sum Purchasing Methods • Options-on-Options-on-Options • Couple with: • Tracking changes of Architectural Drawings • Flexible Purchasing decisions as Regional or Divisional Levels • Various building code enforcement
- 8. Turn-Key/BID/Lump Sum Purchasing & Options-on-Options-on-Options: • Attempt to Manage: • Lump Sum/BID Based Pricing • 12 Bids for Just the Elevations • Impact of Opt 1 Car, Side Load, Double Garage Door • Possibility of 48 different variations…
- 9. • BID only Base or only a few Elevations • Acceptance of VPO’s • Too many “Dry Runs” • Cascades into more waste Turn-Key/BID/Lump Sum Purchasing & Options-on-Options-on-Options:
- 16. Why Hasn’t BIM Worked? • Single source doesn’t mean only-one source… • Change from BID based purchasing doesn’t mean going to “gnat’s ass”
- 17. Avoid the “Gnat's Ass”
- 18. Identify the “Blended Rate” RISK (too much detail) REWARD RISK (too little detail)
- 19. Logic / ”Blended Rates” 2d Takeoffs Spreadsheet Import 3d BIM Tools Back office Systems No BIM…no worry…
- 20. Results: • 3d BIM Optioned Master Models • BIM setup was at ~10% premium over traditional costs in 2d AutoCAD • Return: • 15 week savings in Master Plan Development • ~25% savings operationally for each Lot Specific • 20% Overall Project saving in 90 lot community.
- 21. Results: • 2014 Pre-CG Visions • 2016 • 23.9% Settlement increase • 0% change in Drafting Staff • 40% reduction in Estimating Staff • 24.2% CAD Variance Improvement • 2150% Estimation Variance Improvement • 2017 • Additional 21.3% CAD Variance Improvement
- 22. Results: • Budget Variances Dropped from 10.88% to 2.13% • 400 Units ASP of $525,000
- 23. Why are we doing this?
- 24. Why are we doing this?
- 25. Digitization of Home Designs What happens when information is distilled down to bits & bytes
- 26. Digitization of Home Designs • Business Intelligence can be applied • New applications for data will be discovered • Consumer quality will increase • Ancillary Costs will be reduced • Chaos will be Managed… • What else? What happens when information is distilled down to bits & bytes
- 27. What is CG doing w/ Hyphen? • Link Design Data (BIM/2d/Alt. Source) to BuildPro & SupplyPro • Transparency of Options & Option combinations for Production Builders with supply chain • Precise rationalization of Job Specifics • Ensure proper transfer of Digital Data from Designs to ERP • Play a contributive role within the eco- system opposed controlling it.
- 28. Thank you! Tim Beckman, Director of Business Development, CG Visions Inc.
- 29. 2017 Customer Conference September 11 - 13 Dallas, Texas
- 30. 30 Minute Break & Networking Pre-Function area- grab a drink and a bite. Next session: 11:30
Editor's Notes
- Various sources of Chaos from the crowd…but the two high level I’m going to focus on today are two fundamental industry factors: Single Line Item Pricing (Turn-Key/BID/Lump Sum Purchasing Methods) Variations in offered product (Structural Options & Selection Options) Con Doc Revisions is a task in itself to manage throughout the ecosystem…Masters never reflect Actuals, but both are needed… Joke about Construction Documents…we feel BIM can help change that and we are on a path to prove it… When any industry tries to take new technology and apply it to the same historical processes/procedures/steps failure is inevitable. 2nd Machine Age… Many giants of the industrial revolution didn’t survive the electrification of factories, as they replaced a steam turbines w/ electric turbines…Group Drive vs. Unit Drive Lines It was debated for decades, where now no modern fabrication facility follows a Group Drive configuration… Look at the chaotic elements of your business and ponder what may you be overlooking which may seem radical now, but in 10 year will be so obvious….
- Meritage Homes’ CR. Herro example This is the way most of our industry exchanges goods & services…why? Now each business within the supply chain is performing some element of analysis, but that analysis is only being shared in a limited capacity, if at all. Ask yourself how much time/effort/energy/resources you are putting forth within your organization in attempt to figure out that single line item price?
- Now many trades, & sub-contractors do this… Spend weekends & weeknights highlighters, & notebooks, spreadsheets & calculators to toe the line between overbidding and losing the work & underbidding and loosing their shirt. Every Lump Sum Bid is a Detail in Disguise Each & every time you get frosted mini-wheats ILO Chex there is a new Total. Each & every time you get Italian ILO Ranch there is a new Total. It would be mind-numbing to track every fluctuation in the GRAND TOTAL….did the price of Eggs go up this week, did I accidently grab the 12 month or 6 month boxes of Frontline Flea treatment, did Sammy sneak in a jumbo pack of Twizzers, Why does our industry accept this method of transaction for goods & services? Is the alternative really too complicated?
- Portfolio Builders: Option management…offer a wide variety to promote a custom/configured home feel, but the consumers can elect from a predefined list of options. Custom want to gain efficiencies of Production, production wants to loose stigma of repeatability
- Elevation changes also, to add variety to the curb appeal to meet ARB variety requirements, support anti-redundancy efforts, and prevent tract house look & feel.
- Attempts to manage are futile… If a trade is “impacted” by these 12 elevations & the garage permutations, we have 12 for Typ Possibly +12 for Double Garage Doors Possibly another +12 for Side Load Garage Doors Possibly another +12 for 3 Car Garage Many state…even if the change didn’t merit a new BID, someone, sometime, some analysis would need to be performed to study the drawings to determine what is different.
- Typically Exhaustion sets in and only a few instances are reviewed for a BID. Variances become commonplace & accepted…. Number of “Contingencies” we see in budgets. Not just on paper, but dry runs are not cheep…this truck is a fraction of its capacity because a couple of LVLs were missing…. Everyone knows this…so % waste goes up to protect margins….when waste goes up, dumpsters fill more frequently and require being pulled, and the cycle is self-serving… So how do we help manage this chaos?
- One Tool we have to manage is BIM What is BIM?? A Digital Representation of physical & functional characteristics of a house… Break it into basics….6 sided cube sliced into Layers… Model up the Cube based upon Design Spin Cube to orthographic view Snapshot the face or section of the Cube. Convert to vector line work Add notes Put on Construction Doc Set & Title Block Seems a bit “step intensive” just to get a my same old construction documents, but when was the last time your saw traditional blueprints for an automobile, or television, or any other modern manufactured product? However, as a sign of the times, we must take this cube and distill it down what elements of our industry requires at present…Con Docs.
- Rinse & Repeat for elevation options and any other structural option which caused the 6 sided cube to adjust.
- As the 6 sided cube is digitized (a primary deliverable being the aforementioned CD Sets) We are also able to harvest certain “Key Measurements,” from the 6 sided cube. In this example you can see how the Top & Front of the 6 sided cube adjust from Elevation to elevation. The roof line changes & the Area of Exterior Cladding adjusts as well. As a targeted example…take note of how the Brick Adjusts Now these adjustments were needed to support the Construction Documents, but when best practices are followed we can analyze the Key Measurements & their adjustments per Elevation or Option
- Perform an analysis of the measurements as a direct by-product of the design. Column represents Option & Row represents Key Measurements The these measurements are the least debatable element in the exchange
- Continuing to Use Brick as an example… The these measurements are the least debatable element in the exchange If that measurement was linked to a robust database which contained agreed upon methods, by region, municipality, then those Key Measurements can be converted to orderable units. What if those orderable units were coupled with a Cost Management system to determine cost exposure?
- What about the additional changes for just say the brick mason for each individual possible combination? Does this eliminate the VPO process or at least push the timeline much further up?
- Not everyone in the supply chain is poised & ready to rally around a single BIM Platform or system which will do all things for all people. BIM is still an ambiguous term, so it may mean different things to different individuals… Determining the right level of detail along w/ what & when to pass information is key to determine.
- Going back to our Costco Example.. As we desire to unpack the bids make sure a reasonable & achievable level of detail is determined. Drywall supplier have a detailed “ingredient list” of boxes of screws, rolls of tape, buckets of mud, floor vs ceiling, flat ceiling vs sloped ceiling, etc…. Starting with a finite level of detail will result in early exhaustion…(both builder & supplier)
- Two extremes Project Cost Management opposed to Product Cost Management Too much waste Loss of control with revision & VPOs Cost exposure to irrelevant items or vendor costs Drown in management of Detail of raw materials Too many variations in trade base to gain traction at present. Difficulty in tracking either end of the spectrum based upon these variations. Either heaps of Lump Sum or exhausting measurement of each Gnatt’s Ass Results in either underpayment, overpayment or having an entire VPO process in place which addresses these instances ad-hoc. Will produce undesirable results Ideal mix is the “Blended rate” of the two.
- No BIM no worries… Focus on the logic of how you “intend to use” the information and then the sources of that information can evolve… Various workflows to help take practical steps to manage the chaos tomorrow, but then use those steps to build upon more sophisticated steps into the future without having to stop & re-build.
- With only 30 mins is difficult to get into precisely How this is achieved, but here a few results of these efforts by your builder peers: Cross over point was in the 8th lot Know your planning Horizon….
- With only 30 mins is difficult to get into precisely How this is achieved, but here a few results of these efforts by your builder peers: Allen Edwin Homes 750 units across the state of Michigan 59 different Models/Options 1,000 of Model/Opt Combos 6 regions & 110 different communities in Michigan 2 Cad Drafters (15 starts a week/each) 5 Estimators to 2.5 Estimators
- With only 30 mins is difficult to get into precisely How this is achieved, but here a few results of these efforts by your builder peers: 400 Units in 2017…mix of SFD & SFA
- What is the end game… McKinsey Global Institute MGI Report Reinventing Construction A Route to Higher Productivity Construction has potential for significant gains Look at other areas’ improvements, in Ag, Manuf.
- McKinsey Global Institute MGI Report Reinventing Construction A Route to Higher Productivity Action Areas across External Forces, Industry Dynamics, Firm Level Opt Factors: 1 Regulation 2 Collaboration & contracting 3 Design & Engineering 4 Procurement & SC Management 5 On Site Execution 6 Technology 7 Capability Building Technology has the largest singular impact of these 7 Areas with a 14-15% productivity gain…
- Look at other industries which have rethought the way they use digital information…the bits & bytes of Ask yourselves what will happen when our industry becomes digitized? Amazon didn’t just sell books online…or that shopping mall convenience would be outweighed by strangers delivering brown bags w/ same day delivery? Uber & AirBNB didn’t traditionally look at supply chain Netflix didn’t wait for Bandwidth or binge watching These companies noted how they could leverage the digitization of their industries didn’t wait for consumer preference to look their way, or for the market to accept, or bandwidth to grow…they recombined & repurposed tech that was already there to their advantage.
- Ask yourselves what will happen when our industry becomes digitized?
- CG to have downstream relevance to the information we are generating Hyphen to accept the upstream data, into an established & mature workflow to share amongst the Builder & Supplier Management of Gnat’s ass will be coming Digital Data, machine learning, common product identification, definition of SKU, sub-SKU, sub-sub-SKU, There are only 98 naturally occurring elements on Earth, which when combined in various ways produce the wide variety of things we enjoy. …but our goal is to evolve into it…