Document K6Gy0z3XvY9dQyK2pxR2Zr5Ex
MCGRAW
CONSTRUCTION COMPANY INC ENGINEERS & CONSTRUCTORS
MEMORANDUM OF MEETING by: James F. Crum
Company:
Armco, Middletown
Date:
July 28, 1989
Distribution: 6. A. Iannazzo, B. R. Brewer, Attendees
Attendees: Subject:
J. F. Crum, M. A. Bach, C. J. Ryburn J. D. Chivers, P. T. Marshall
Armco Stove Rebuilds Contract No. 1492
Summary of Discussion
The purpose of the meeting was to assess what has gone wrong with the first stove reline and what can be done to correct these problems on stoves 2 and 3.
Problems Encountered
1. Delay in starting job - Armco proposed but McGraw agreed.
2. Project Management - key people not involved from the start.
3. Asbestos removal - no contractor had ever removed asbestos from a stove under new stringent OSHA guidelines. Big learning curve. Areas containing asbestos were incor rectly identified.
4. Shell and plate work - bottom work was greater than an ticipated. Hot blast nozzle fit up problems. Cut wrong by McGraw under direction of Armco. Armco insisted all welding complete prior to any brickwork.
5. Handling of brick inefficient - scaffold system not pro ducing expected gains.
6. Quality/quantity of bricklayers - leaving this job at 85% rate to work walking beam at 100% rate.
McGCon 4422
Page Two
7. Bailey-Hoogovens disrupting work - within their rights but should be done through supervision not stopping en tire job.
8. Cost of the first stove is about $600,000 more than esti mates. This is detailed both by dollars and manhours in attachment I.
9. Details of these problems and others are presented in the Chivers-Distribution memorandum of June 23, 1989, Attach ment II.
10. Indirects such as crane rental are extremely high.
Suggestions for Improvement
1. Change asbestos contractors.
2. Maintain existing Project Management.
3. Do not start refractory work until plate work is done.
4. Have new bottom ready.
5. Meet with Bailey-Hoogovens to explore their suggestions to expedite the next two stoves. Note: This meeting was held and will be covered by separate minutes.
6. Investigate different method of feeding brick into the stove. This might include an exterior elevator and skid ding in brick through holes cut in the shell. Note: This method was used in the top of No. 1 stove and appeared to speed up work.
7. Armco has already agreed to permit laying of brick once an inside seal pass is made.
8. Armco has already agreed to modify the cut line on the hot blast connection.
Action Plan
1. Analyze all suggestions for improvement.
2. Finish first stove.
3. Draft game plan for stoves 2 and 3 (CJR).
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Page Three
4. Re-estimate costs for stoves 2 and 3 (JDC). 5. Go back to Armco if total costs are negative. 6. Reschedule stoves 2 and 3. See Attachment III for No. 3. 7. Aggressively pursue all possible extras for the first
stove, some of which include: a) Misidentification of asbestos insulation on Armco
drawings. b) Extra plate work. c) Miscut of hot blast connection. J FC / j f c/24 Enclosures: Attachments I, II AND III
McGCon 4424
STOVE REBUILD FOR BLAST FURNACE NO. 3
CLIENT:
ARHCO STEEL -HIDDLETONN
FINAL CUSTOMER: ARHCO STEEL -HIDDLETONN
LOCATION:
HIDDLETONN, OHIO
CONTRACT NO.:
1492
PLEASE NOTE:
\ COHPLETE AS OF 1BJUL89
SECTION ITEH
DESCRIPTION
BUDGET DOLLARS
BUDGET PERCENT HOURS COHPLETE
EARNED 4
ACTUAL 4
EST TO COMP.
EST ( COMP.
VARIANCE
1060 CAFFOLD
417,681
322
2100 NCHOR BOLTS
412,365
392
2120 DOHE ACCESS PLATFORH -REHV/REINSTL
410,873
346
4140 STOVE TEAROUT t OISPOSE
4308,908
7,121
4140 ASBESTOS REMOVAL
4175,637
1,944
_ 4140 TOVE MONITORING
416,657
296
l70 STV SHELL ALT -HEN 6RNR NIL t PTCH 1
49,839
i 4180 STV DOME STEEL NORN -INSTl NEN DOME 485,239
l
! 4200 STOVE BOTTOM l FOUNDATIONS REPAIR 1
430,827
303 1,988 1,025
! 4220 CHECNER SUPPORT STEEL -INSTALL 1
439,244
1,474
' 4230 STOVE REFRACTORY 1
4627,243 23,561
; 4230 BURNER BOX -REMOVE 6 REPLACE
47,433
279
: 4410 COOLING NATER -DISCONNECT/RECONNECT 1
; 5330 STV GAS MAINS -CHS 3' SECT/ORIFICE 1
: 5340 CHIMNEY VALVES -REMOVE 4 REPLACE
48,919 41,784 44,608
! 5510 BURNER VALVES -REMOVE 4 REPLACE
410,406
i 5570 HOT BLAST VALVES -REMOVE 4 REPLACE (
! 5590 SLOW OFF VALVES -REMOVE 4 REPLACE
413,379 43,865
1 5610 HOT BLST COHKECTIOH -REALIGN N/ STV l I ^^5640 COMB AIR VALVS -REMOVE 4 REPLACE
412,901 44,608
5680 STV SERV PIPING -DISCONNECT/RECON ! 5710 FIELD PAINTING -STOVE 4 NALKNAYS
48,919 410,554
335 67 173 391 502 145 469 173 335
0.80 414,145 462,601
43,536
466,137 (448,456)
0.95
411,747
49,758
4618 410,376
41,989
0.50 45,437
4250
45,437
45,687
45,187
1.00 4308,908
484,800
40 484,800 4224,108
1.00 4175,637 4174,481
$0 4174,481
41,156
1.00 416,657 423,236
40 423,236 (46,579)
0.95
49,347
421,853
4492 422,345 (412,506)
0.95
480,977
491,768
44,262
496,030 (410,791)
1.00 430,827 430,089
40 430,089
4738
1.00 439,244 411,231
40 411,231 428,013
0.69 4432,798 4875,654 4194,445 41,070,099 (4442,856)
0.30
42,230
422,375
4S.203
427,578 (420,145)
0.10
4892
40
48,027
48,027
4892
1.00 41,784
4632
40 4632 41,152
1.00
44,608
412,761
40 412,761
(48,153);
0.30
43,122
415,801
47,284
423,085 (412,679)
0.30 1.00 1.00 0.90 0.30 0.00
44,014 43,865 412,901 44,147 42,676
40
414,045 4425 40 4110 40 40
49,365
423,410 (410,031)
40 4425 43,440
40 40 412,901
4461 4571 44,037
46,243
46,243
42,676
410,554
410,554
40
McGCon 4425
STOVE REBUILD FOR BLAST FURNACE NO. 3
CLIENT:
ARHCO STEEL -HIDOLETONN
FINAL CUSTOMER: ARHCO STEEL -HIDOLETONN
LOCATION:
HIOOLETONN, OHIO
CONTRACT NO.:
1492
PLEASE NOTE: * COMPLETE AS OF 18JUL89
section
ITEM
DESCRIPTION
| BUDGET <t DOLLARS
i 5720 : STOVE LIGHTING
l
11 | 1
5800 ICOID BLAST VALVES -REMOVE l REPLACE! 11 1I
!EQUIPMENT OPERATOR SUPPORT 11
! 11
! INOIRECTS <*>. *>
$6,826 $11,149
to to
i SU8-T0TALS: ttt1||
TOTALS:
! $1,700,000 1111 1
BUDGET PERCENT ! EARNED i ACTUAL !
HOURS !COMPLETE : t
;t
I 168 !
t 419 !
4 0:
i 0!
42,228 ! 4t111t
1 11
0.78 | 1
85,324 ! 1
82,330 ! 1
1.00 ! tll,149 | 11
t4,725 I 1
o.78 ; i
to i $127,284 t
i 1
0.78 !
to ! $440,404 ! _____ ____ ii
0.78 ! 81,182,434 J 82,026,613 ! I1tt11 11t111 tt1111
EST TO COMP.
EST t COMP.
81,502
$3,832
$0 $4,725
$0 $127,284
$0 8440,404
$257,430 $2,284,043
VARIANCE '
$2,994 ! $6,424 ! ($127,284)! ($440,404)! ($584,043)!
McGCon 4426
IS ^ OiJ<*
MCGRAW CONSTRUCTION COMPANY,INC/ENGINEERS & CONSTRUCTORS
MEMORANDUM
CONT. NO.
TO FROM SUBJECT
1492
DISTRIBUTION
John D. Olivers Stove Rebuild Status Report
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DATE: June 23, 1989
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Attached for your review is an analysis of Stove Rebuild at Armco Steel.
If you have any further questions, please contact
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DISTRIBUTION: DHK, JFC, CJR, LJW, MAB, KRB, VNH
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McGCon 4427
MCGRAW CONSTRUCTION COMPANY, INC./ENGINEERS & CONSTRUCTORS
POST OFFICE 370
31 S CANAL STREET
MIDDLETOWN. OHIO *5042 MIDDLETOWN. OHIO 45044
TELEPHONE Si 3/422-4521 FACSIMILE S13'423-S384
CONTRACT NO: 1492 ARMCO: BLAST FURNACE NO. 3 5T0VE RELINE
The "following is a review of the site visit conducted by P.T. Marshall and S.S. Warne.
During our visit, several items were found that pose problems or are problems that have or will affect profitability and the duration of the job. These items are described further in the following pages.
CONTENTS
I tern 1:
Delays due to the removal of the Hot Blast Connection F1ange.
Item 2:
Extra costs due to a deviation from the original schedule
I tern 3:
Field Management
I tern 4:
Material handling and coordination problems
I tern 5:
Construction supervision
I tern 6:
Review of cutting checkers
REGIONAL OFFICES:
(KENTUCKY) (ILLINOIS!
P.O. SOX 2380 2301 GREENUP AVENUE ASHLAND. KY 41101 (0l 32S-1S02 736 CENTRAL PARK AVENUE FLOSSMOOR. IL 60422 (312)967-0009
McGCon 4428
MCGRAW
CONSTRUCTION COMPANY INC ENGINEERS & CONSTRUCTORS
ITEM I
THE REMOVAL OF THE HOT BLAST CONNECTION FLANGE. The scope of work for the contractor instructed McGraw to re-align the hot blast connection after the plumbing of the stove. McGraw and Armco's original anticipation was to cut this connection at the neck nearest the stove, plumb the stove, and re-align the connection from the cut line to the hot blast main. If this method were used, the re-alignment of the connection would not have affected the installation of the stove refractory. However, after inspection of the connection flange on the stove, Armco requested that McGraw replace the flange. Armco gave McGraw a time and material extra work authorization to remove the flange on June 6, 1989. McGraw requested that this work be started on May 23, 1989. Armco elected to have the flange surveyed prior to removal, but did not do so until the first week of June. At this point, McGraw expected to have the insulation brick on the ring wall installed up to the hot blast connection by June 12, 1989. Because the shell work on the hot blast connection flange lasted until June 17, 1989, the insulation brick on the ring wall was not installed to the elevation of the hot blast connection until June 19, 1989. Thus, because the installation of the ring wall insulation brick is a critical path activity, a total job delay of six working days was incurred. This delay cost McGraw an estimated *126,000 and McGraw's only course of action is to obtain compensation for this delay.
McGCon 4429
McGRAW
CONSTRUCTION COMPANY INC ENGINEERS i CONSTRUCTORS
ITEM II MANPOWER PROBLEMS: Manpower poses a problem in that 5643 M.H. are being expended per week (currently running 2-10-6's). At this rate, with approximately 5 weeks remaining on the refractory, 28,215 M.H. will be expended. As of 6/19/89, 42,604 M.H. have been used. With this, estimated at completion (see exhibit a) for manhours will be 63,005. However a bottom line credit to the cummulative total manhours has to be considered. Some 600 M.H. worth of prep has been done in the areas of walkways and ladders, dome steel work, scaffold fabrication and refractory material handling. This work was accomplished we feel, as a benefit to the overall project. Thus, a considerable amount of labor was saved. With all aspects of manpower having been considered, approximately 16,000 M.H. will be overun. Currently, labor dollars per hour are at S23.67. With this manhour overun, labor overun in excess of *350,000.
WcGCon 4430
MCGRAW
CONSTRUCTION COMPANY HC ENGWTOS 4 CONSTRUCTORS
ITEM III
FIELD MANAGEMENT: There appears to be a need Tor a Tull time McGraw field representative that has the authority and the experience to control and manage the project from the standpoint of cost, construction, engineering, and schedule. McGraw is the General Construction Contractor on this job. However, Armco and Bailey Hoogovens appear to be managing the construction facets of this job to their satisfaction at McGraw's expense.
McGCon 4431
MCGRAW
CONSTRUCTOR COMPANY NC ENGMEERS 4 CONSTRUCTORS
ITEM IV
In this stove we are using a 3 tier scaffold arrangement. On the top tier, we are installing the insulation brick for the ring wall. On the middle tier, we are installing the fire brick for the ring wall and the breast wall. On the bottom tier we are installing the checkers.
Because material is being installed on all has to be fed to each tier with one crane. handling and coordination problem.
three tiers, material This poses a material
However, it is our opinion that the scaffolding arrangement is optimal, and that the material coordination problem can be rectified by better coordination of the material lifts. Such steps are being made by the field personnel to better coordinate the lifts and the feeding of material into the stove.
It should be noted, however, that this problem was a major contributor to low ineffecienies in the past weeks.
McGCon 4432
MCGRAW
CONSTRUCTION COMPANY MC ENGMSRS i CONSTRUCTORS
ITEM VI
CUTTING CHECKERS: Currently* the most time consuming activity in installing the stove refractory is the cutting of the checkers. At this time, the checkers are being hammer cut. However, because the checkers are made of a very hard material. Hammer cutting is very difficult and sometimes impossible. Because the time required to cut and fit the checkers is so great, our present goal to install four (4) courses of checkers per shift may never be realized. It is our opinion that an alternate means of cutting the checkers should be reviewed, i.e.; guillatine brick cutters or masonry saws.
McGCon 4433
MCGRAW
CONSTRUCTION COMPANY INC ENGNEBC i CONSTRUCTORS
ITEM V
CONSTRUCTION SUPERVISION: Currently, Construction Supervision for 1st shift is holding 4 positions. They are a Bricklayer General Foreman, 2 General Superintendents, 1 Superintendent in training. With the size and non complexities of this job, it is our opinion that field supervision (1st shift) should be reduced to having a General Bricklayer Foreman and General Superintendent. Thus, eliminating some 100 hrs./week of Field Supervision.
Thank you very much. Sincerely,
Paul T. Marshall Senior Cost Engineer
Samuel S. Warne Project Controls Engineer
McGCon 4434
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McGCon 4435
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MCGRAW CONSTRUCTION COMPANY,INC/ENGINEERS & CONSTRUCTORS
MEMORANDUM
CONT. NO.
1492
TO:
Vernon Helton
FROM:
Paul T. Marshall
SUBJECT:
Stove #3 Rebuild Critical Path
DATE: 8/4/89
Attached is the revised construction schedule for the #3 stove. The project is scheduled for 2-10-6 and includes all actual information regarding durations from the 1st stove rebuild.
If you should have any questions or need further clarifications, please do not hesitate to contact me.
PTM:1v
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JFC C JR BRB JDC TLP
McGCon 4436
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McGCon 443?