How to Apply the Work Activity Method of Labor Calculations

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2 How to Apply the Work Activity Method of Labor Calculations the Latest Update to MCAA s WebLEM Ron King

3 WebLEM Committee Members Kevin Daubendiek Humphrey Company, Houston, TX Paul DeBella DeBella Mechanical, Santa Clara, CA Bob Durr Durr Mechanical Construction, New York, NY David Gallo Gallo Mechanical Contractors, New Orleans, LA Ron King Trimble MEP, Toronto, ON Tim Moormeier U.S. Engineering Company, Kansas City, MO Patrick Reilly John W. Danforth Company, Buffalo, NY Nick Nikpourfard Mechanical Contractors Association of America, Rockville, MD

4 What were some of the driving forces to develop this method of laboring? Inability to separate labor accurately into shop vs field Inability to account for labor associated with back to back fittings Inability to break down all labor components of a joint Better cost control of labor activities in both the shop or field

5 How do we do it today? We establish shop vs field labor hours by: Percentage method Diameter inch method Account for back to back fittings by applying a correction factor Currently no way to break down the components of the joint Some have improvised by determining a Cap equals one joint

6 What does a labor unit presently include? Example: 6 CS Std Wt, Buttweld, LR 90 Elbow. The WebLEM states 6.29 hours, which includes: Receiving, unloading, stockpiling, distributing Joining method Type of connection, qty of joints, type of material, wall thickness Normal pressure testing Installation or erection Note: The joint and installation make up the bulk of the unit

7 What s the Challenge? No way to account for back to back fittings other than applying a correction factor No way to establish meaningful hours for the fabshop other than applying a percentage or doing a diameter inch calc No way to establish labor for components of the joint: Cut & Bevel TIG Root Joint (buttweld) Hydotest Preheat/Postweld heat treat Etc.

8 What could we do differently? Break down the labor units into tasks such as: Cut & Bevel Tig Root Preheat/Post Weld Heat Treat Handling of Pipe, Fittings, Flange, Valve, etc Spool Erection Bolt-Up Hydrotest

9 What should we call it? The present method of laboring has been named: Component Method The new method for establishing labor hours for each task has been named Work Activity Method

10 An example of how the new Work Activity Method works For the same 6 CS Std Wt BW 90 Elbow, we now have these tasks: 6 CS Std Wt Flame Cut & Bevel (single operation) 0.40 x 2 = 0.80 Hours 6 CS Std Wt Buttweld 2.48 x 2 = 4.96 Hours 6 CS Std Wt LR 90 Elbow Installation 0.41 x 1 = 0.41 Hours Total using the Work Activity Method = 6.17 Hours (excluding hydrotest) Total using the Component Method = 6.29 Hours

11 Let s look under the hood!

12 Changes Home page change to promote new Work Activity Method Introduction Proper Use of the LEM Basis Assumption Correction Factors Addition of the Piping Systems Folder Folder reorganization HVAC Hook-Up Instrumentation Misc Labor Operations

13 Changes (cont.) Plumbing Equipment Plumbing Hook-Up Treatment Plant Equipment

14 Changes (cont.) New folders containing the Work Activity Method items Bolt Up Cut & Bevel Drilling Holes Fillet Welds Fitting Handling & Installation Flange Handling & Installation Hydrotesting In-Line Specialty Items Joints Layout & Flame Cutting Machining Inside of Pipe or Fitting (Counter Boring)

15 Changes (cont.) New folders containing the Work Activity Method items (cont) Nipples Pipe Handling & Installation Preheat Purge Stress Relieving Valve Handling & Installation

16 Take this isometric drawing for example

17 Now Let s See Some Examples! And What This Means To Me? Let s compare the following: Component Method and apply a percentage to determine the shop vs field hours Component Method and apply a diameter inch calculation to determine the shop hours Work Activity Method to precisely determine the shop vs field hours

18 Component Method applying a percentage for Shop vs Field Component Method Percentage Method to Split Shop vs Field Recap Spool Hours Dist Hours 60.00%Shop/Field Distribution Item Size QTY Hrs Ea Total Hrs Spool Shop Field Pipe 8" Flange 8" Elbow 8" Elbow 8" Total Total Spool Item Size QTY Hrs Ea Total Hrs 90 Elbow 8" Total Spool Item Size QTY Hrs Ea Total Hrs Pipe 8" Elbow 8" Elbow 8" Total Spool Item Size QTY Hrs Ea Total Hrs Pipe 8" Flange 8" Tee 8" Elbow 8" Total 55.21

19 Component Method applying a diameter inch calc for Shop Component Method Dia Inch Method to Est Shop vs Field Hours Shop Spool Item Size QTY Ea Total Diameter Inch Value for Shop Pipe 8" Spool Size Qty Welds Dia Inch Shop Weld Hours Flange 8" Elbow 8" Shop Buttweld 8" Total Diameter Inch Per Day Spool Shop Hour vs Field Hours Item Size QTY Ea Total Spool Hours Shop Weld Hours Field Hours 90 Elbow 8" Shop Buttweld 8" Total Total Spool Item Size QTY Ea Total Pipe 8" Elbow 8" Elbow 8" Shop Buttweld 8" Total Spool Item Size QTY Ea Total Pipe 8" Flange 8" Tee 8" Elbow 8" Shop Buttweld 8" Total 55.21

20 Work Activity Method for Shop vs Field Work Activity Method Shop Field 0Spool Spool Hours Recap Item Size QTY Ea Total Item Size QTY Ea Total Spool Shop Field Pipe - Shop 8" Bolt Up 8" Flange 8" Pipe - Field 8" Elbow 8" Flange 8" Cut & Bev 8" Elbow 8" Buttweld 8" Total 6.25 Total Total Total Shop & Field Spool Spool Item Size QTY Ea Total Item Size QTY Ea Total 90 Elbow 8" Elbow 8" Buttweld 8" Buttweld 8" Total 3.37 Total Spool Spool Item Size QTY Ea Total Item Size QTY Ea Total Pipe - Shop 8" Pipe - Field 8" Elbow 8" Elbow 8" Elbow 8" Elbow 8" Cut & Bev 8" Buttweld 8" Buttweld 8" Total 4.57 Total Spool Spool Item Size QTY Ea Total Item Size QTY Ea Total Pipe - Shop 8" Bolt Up 8" Flange 8" Pipe - Field 8" Tee 8" Flange 8" Elbow 8" Tee 8" Cut & Bev 8" Elbow 8" Buttweld 8" Buttweld 8" Total Hydro Blanks 8" Field Hydro 8" Total 19.87

21 Recap Comparison Component vs Work Activity Recap Comparison - Per Iso Example Component Method Work Activity Method Item Size QTY Ea Total Ea Total Pipe 8" Flange 8" Tee 8" Elbow 8" Elbow 8" Bolt Up 8" Cut & Bev 8" Buttweld - Shop 8" Pipe - Field 8" Buttweld - Field 8" Hydro Blanks 8" Field Hydro 8" Total Component Method has six 8" Cut & Buttwelds not required due to back to back fittings Component Method has a Cut & Buttweld every 21 feet of pipe that isn't needed Cap 8" So if we remove the extra cuts, bevels and welds: hours minus = 89.82

22 Recap Comparison Component vs Work Activity (cont.) Recap Comparison - W/O Accounting for Back to Back Fittings Component Method Work Activity Method Item Size QTY Ea Total Ea Total Pipe 8" Flange 8" Tee 8" Elbow 8" Elbow 8" Bolt Up 8" Cut & Bev 8" Buttweld - Shop 8" Pipe - Field 8" Buttweld - Field 8" Hydro Blanks 8" Field Hydro 8" Total

23 So now it s possible! No need to adjust for back to back fitting situtaions Precisely account for all labor activities in the shop vs field Ability to calculate all activities related to the joint Bottom line; This gives you better job cost control!!

24 What if this method just isn t for me? I don t worry about shop vs field or counting the joints. I just want to take off using the same method as in the past; counting widgets.. No Problem!! Continue performing takeoff using the Component Method just as you ve done in the past

25 But if the Work Activity IS for you You can start using this method immediately Remember to examine your labor productivity factors to account for this new method Be sure to read the Introduction, Proper Use of the LEM and Basic Assumptions Visit each of the folders on the WebLEM contained within the Work Activity Method to familiarize yourself Start producing very precise shop vs field estimates immediately WebLEM committee would encourage your feedback

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