Const Perf Improve Rev1

7/24/2019 Const Perf Improve Rev1

1/22

Presented by: George Brindle, P.Eng, MBA

VP Facilities

Proving Something Big

Partnered with: Janaka Ruwanpura, Ph.D., PQS

Canada Research Chair, Professor

and Director of Project

Management

March 8, 2012

Time & Motion:Improving Construction Productivity


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March-08-12 Proving Something Big

2

Outline

Whats in it for suppliers and other partners?

We all get better at what you do!

Productivity

Tool Time

Measurement & Report

Opportunities

Why focus on productivity?

Measuring what matters

Understanding Tool Time in Oil Sands

Time & Motion What is a Time & Motion study?

UofC Research Team

How it works?

Interfaces and workflow

Protecting the privacy of workersPrivacy Protection

Objectives Objectives of T&Ms


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Time & Motion Study

Definition: A Time & Motion (T&M) study is a business

efficiency technique that observes the time andmethods(motions) to perform any type ofwork1.

Modern model for T&M: Remotely

controlled video cameras, accessedexclusively by third party researchers.

Laricina has agreed to participate in aT&M study with the University ofCalgarys Centre for Project ManagementExcellence:

Canada Research Chair Dr. JanakaRuwanpura and research assistants

Construction Visualization and MonitoringCentre

1.- Wikipedia: Archives from Frederick W. Taylor and Frank and Lilian Gilbreth.


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Why Focus on Productivity?

Productivity is a ratio of production output to what isrequired to produce it (inputs). What is our output? ->A more efficient project

What is your output? ->More efficient Lm, Tons, etc.

However, Productivity is a complex issue inconstruction because of the interaction of labour,capital, materials and equipment in the output.

We should all (owners, engineers, contractors andvendors) look for ways to improve constructionproductivity. It is better for business.


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Why Focus on Productivity?

Challenges remain in identifying the specific issuesaffecting productivity

Technical Issues Management Issues

Market ConditionsExternal Issues/factors

Human/Labour Issues

What if we measured productivity in observation ofthese issues?

We could manage these and realize savings per Lm, cm,

Ton, etc.


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Objectives of Time & Motion

M o n i t o r c o n s t r u c t i o n a c t i v i t ie s an d s i t e o p e r at i o n s tocollect tool time for selected work areas of piling, cutting and

capping, setting of modules/tanks/equipment, structural

supports and interconnects. Interfaces with other activities

could be considered

I d e n t i f y i n e f f i c i e n c i e s a n d o p p o r t u n i t i e s for

improvements in the work

R ec o m m e n d b e s t p r a c t i c es to improve productivity based

on the observations and consultations with the project team,

Continue observation and analysis toq u a n t i fy t h e i m p a c t that the recommended best practices have on tool time and

productivity.


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Tool Time Measuring what matters

What is Tool Time? The amount of time that workers spend in

producing tangible outputs

Tool time contributes directly to productivity

Non-Tool Time Supporting Time: discussions, toolbox meetings,

safety etc. Ineffective Time: idle time, extra-socializing,

searching for tools and materials


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Tool Time

Commercial Construction

Work time50.7%

Lookingfor materials14.6%

Lookingfor tools1.5%

Socializing8.6%

Moving7.8%

Instructions2.8%

Idle9.3%

Other4.7%

work time distribution-overall

1.- Hewage, K.N., & Ruwanpura, J.Y. (2006). Carpentry Workers Issues and Efficiencies related to ConstructionProductivity in Albertas Commercial Construction Projects. Canadian Journal of Civil Engineering, 33(8), 1075-1089.

2004 study: Observations of 101 workers from 4

construction sites. (Focus: Formwork)1.


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Tool Time

2008 studies by University of Calgary show similar tool time1

Working/Tool Time

48.51%

Instruction

15.54%

Walking

1.79%

Idling

15.82%

Socializing/Phoning

1.57%

Out of Sight16.77%

In-Office

0.00%

Commercial Construction

1.- Construction Monitoring and Visualization Centre reports: aggregated sources.


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Tool Time in Oil Sands


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1.- Construction Owners Association of Alberta (COAA) Source unknown

What about in Oil Sands?

There are only indications

based on common

knowledge

No recent studies in

industry

Tool time has been

estimated at +35%1


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Tool Time in Oil Sands

What about in Oil Sands? SAVE$

This will be the most recent

study

This is the first time that this

camera observation-feedbackmodel is applied to the industry.

Cost savings can be substantial

Industry partners can perceive

these gains and becomeindustry leaders: contractors,

vendors, suppliers and workers

get much better at what they do


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Measurement and Report

Continuous MeasurementsTime Activity

08.00 - 08.45 5min Rating

08.45 - 09.00 5min Continuous


09.30 11.00 5min Continuous

every 30min



every 30min


02.00 03.30 5min Continuousevery 30min


04.00 04.30 5min Rating

Continuous Observations for a

long period (minimum 30

minutes)

Continuous Observations for a

short period (5 minutes)

Five Minute Rating (whether the

worker is working or not)

Observations include descriptionof possible root causes


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Monday, October 14, 2011

Dir ect Wor k

T r ans por t i ng

Wai t i ng &Idl e

Late Star ts / Ear l y Qui ts

Per s onal Br eak s

T r av el l i ng

T ool / M ater i al sIns tr uc t i ons

N

UofC Sample Screenshot (proprietary)


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Weekly Summaries - Analysis


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Productivity Improvement Techniques (PIT) Crew

Laricina Team:

Productivity Improvement Coordinator,

Technical and Research Coordinators

assists UofC in communicating findings andrecommendations

Assist UofC, has no access to video/data

PIT Crew facilitates implementation of recommendations

Laricina-UofC Interface

Laricina Site Management shares results with contractors

and workers (obtains feedback) Laricina Area Managers approve/reject recommendations

and implement changes


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Laricina-UofC Workflow2.- OBSERVATIONS

AND

RECOMMENDATIONS

REPORT

B3.- REPLYRECOMMENDATIO

N FORM

START

1.- UOFC

MEASURES

3.- PIT CREW

EVALUATES

5.- IMPLEMENT

IMPROVEMENT

B2.- DEPARTMENT

MANAGER

REVIEWS

Path A - MINOR

CHANGE: Call site

manager

Path B- MAJOR

CHANGE: Root cause

analysis and solution

B1.- PIT CREW

SELECTS RELEVANT

DEPARTMENT

4.- FILL

RECOMMENDATION FORM

directlin

eA1.- PIT CREW

CALLS SITE

MANAGER

directline


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Privacy Protection

Strict UofC ethics protocolprotects workers privacy

All workers are informed in

orientation on site

Comments and concerns are

directed anonymously to UofC Signs and brochures

Laricina and contractors comply

with Alberta Privacy Act

Video footage and any personalidentifying information are

protected: UofC releases only

aggregated data


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Opportunities (something big)

Example 1: Applying just one best practice

Productivity

Increase of 17%


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Example 2: Applying a set of best practices

Productivity Increase

of 20%

Can our industry achieve this?

What could the 12.5% Tool

Time increase and 20%

productivity mean to you?


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L e ar n i n g an d Te am w o r k : Participants (Laricina,contractors and workers) can learn more about the project

execution and cooperate and take action for a common

good

Results are openly shared and discussed with partners

Feedback is encouraged among workers Improvements become a team effort (teams could get creative and

competitive)

I m p r o v i n g m e t h o d s a n d p r a c t i c e s : Contractors improve

and are recognized for achievements (as industry leaders)

C o s t - Sc h e d u l e -Q u a l i t y : T&M partners realize immediate

improvements (up to 20% productivity improvements)

translating in cost, schedule and quality wins.

C o m p e t i t i v e a d v a n t a g e : become best-in-class!


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This Laricina Energy Ltd. (the Company) presentation contains certain forward-looking statements. Forward-looking statements may include, but are

not limited to, statements concerning estimates of exploitable original-bitumen-in-place, predicted recovery factors, steam-to-oil ratios and well

production rates, estimated recoverable resources as defined below, expected regulatory filing, review and approval dates, construction and start-up

timelines and schedules, company project potential production volumes as well as comparisons to other projects, statements relating to the continuedoverall advancement of the Companys projects, comparisons of recoverable resources to other oil sands projects, estimated relative supply costs,

potential cost reductions, recovery and production increases resulting from the application of new technology and recovery schemes, estimates of

carbon sequestration capacity, costs for carbon capture and sequestration and possible implementation schedule for carbon capture and sequestration

processes or related emissions mitigation or reduction scheme and other statements which are not historical facts. You are cautioned not to place undue

reliance on any forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.

By their nature forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both generally and specific, that

contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Although the Company

believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will

prove to be correct and, accordingly that actual results will be consistent with the forward-looking statements. Some of the risks and other factors that

could cause results to differ materially from those expressed in the forward-looking statements contained in this presentation include, but are not limited

to geological conditions relating to the Companys properties, the impact of regulatory changes especially as such relate to royalties, taxation and

environmental changes, the impact of technology on operations and processes and the performance of new technology expected to be applied or utilized

by the Company; labour shortages; supply and demand metrics for oil and natural gas; the impact of pipeline capacity, upgrading capacity and refinery

demand; general economic business and market conditions and such other risks and uncertainties described from time to time in the reports and filings

made with security regulatory authorities, contained in other disclosure documents or otherwise provided by the Company. Furthermore the forward-

looking statements contained in this presentation are made as of the date hereof. Unless required by law the Company does not undertake any

obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events orotherwise. The forward-looking statements contained in this presentation are expressly qualified by this advisory and disclaimer.

In this presentation recoverable resources includes the unrisked arithmetic sum of best estimate contingent resources and prospective resources and

proved plus probable reserves as defined in the report of GLJ Petroleum Consultants Ltd. (GLJ) regarding certain of Laricinas properties effective

December 31st, 2010, referred to herein (the GLJ Report). Exploitable OBIP refers to original-bitumen-in-place that is targeted for development using

thermal recovery technologies. The best and high estimate includes contingent and prospective resources. Contingent resource values have not beenrisked for chance of development while prospective resource values have been risked for chance of discovery but not for chance of development. There

is no certainty that it will be commercially viable to produce any portion of the contingent resources. There is no certainty that any portion of the

prospective resources will be discovered or, if discovered, if it will be commercially viable to produce any portion of the prospective resources. 2P

means proved plus probable reserves and 3P means proved plus probable plus possible reserves. The SC-SAGD best estimate technology sensitivity

(Laricina technology sensitivity) net economic forecasts were prepared on Saleski-Grosmont and Germain-Grand Rapids based on SC-SAGD

technology and remaining properties based on SAGD/CSS technology. SC-SAGD means solvent-cyclic steam-assisted gravity drainage. CSS meanscyclic steam stimulation.

Forward-looking statements advisory


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Contact us

Laricina Energy Ltd.

800, 425 1st Street SW

Calgary, Alberta T2P 3L8

403-750-0810

www.laricinaenergy.com

[email protected]

Const Perf Improve Rev1

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