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). McGCon 4423 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 f?v-^ < `utvo<flJ, P DATE: June 23, 1989 T . Arr**--- Attached for your review is an analysis of Stove Rebuild at Armco Steel. If you have any further questions, please contact &//freuje*' '* JDC:lv Attachment /CO % At* -c. DISTRIBUTION: DHK, JFC, CJR, LJW, MAB, KRB, VNH ^ A--- Ptl-fcJi + l/L<S*d +* fyf.btff- JtirZ4jLs . a**- 6*TM- JTZ7Ju^ * ^ ui+ u m. * -v- J" - *? 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 I, I A 'IM IM FOKCST M il I I I s- T K } > r*-. < M C IIM \<:TJ. M If l . i t : Jiih/iiiivi'i ' I r f spTJX-sno-qx) SH.iOHNTV'K McGCon 4435 .(.:i:i!M M1)i :T M l) ATTlPCM A**'v"r jET 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 cc: JFC C JR BRB JDC TLP McGCon 4436 _..D ,0 i! il IS & 5$ *o B|m S i* B if ij il CJ Z L_UJ (X S Ui > * o> - it Si >: {t i! > i5I <n i McGCon 443?