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ENGINEERS 4 CONSTRUCTORS
MEMORANDUM OF MEETING by: James F. Crum
Company:
Armco, Middletown
Date:
July 28, 1989
Distribution: G. A. Iannazzo, B. R. Brewer, Attendees
Attendees:
J. F. Crum, M. A. Bach, C. J. Ryburn J. D. Chivers, P. T. Marshall
Subject:
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.
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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. JFC/jf c/24 Enclosures: Attachments I, II AND III
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ATTT^4A/Mr'M * -*
STOVE REBUILD FOR 8LAST FURNACE NO. 3
CLIENT:
ARMCO STEEL -MIDDLETOWN
FINAL CUSTOMER: ARMCO STEEL -MIDDLETOWN
LOCATION:
MIDDLETOWN, OHIO
CONTRACT NO.:
1492
PLEASE NOTE: X COMPLETE AS OF 18JUL89
SECTION ITEM
DESCRIPTION
BUDGET DOLLARS
BUDGET PERCENT HOURS COMPLETE
EARNED $
ACTUAL $
EST TO COMP.
EST t COMP.
VARIANCE
1060 SCAFFOLD
$17,681
322
2100 ANCHOR BOLTS
$12,365
392
2120 DOME ACCESS PLATFORM -REMV/REINSTL
$10,873
346
4140 STOVE TEAROUT l DISPOSE
$308,908
7,121
4140 AS8EST0S REMOVAL
$175,637
1,944
4140 STOVE MONITORING
$16,657
296
i 70 STV SHELL ALT -NEW BRNR NZL 4 PTCH
$9,839
303
4180 STV DOME STEEL HORN -INSTL NEW DOME $85,239
1,988
4200 STOVE BOTTOM 4 FOUNDATIONS REPAIR
$30,827
1,025
4220 CHECKER SUPPORT STEEL -INSTALL
$39,244
1,474
4230 STOVE REFRACTORY
$627,243 23,561
4230 BURNER BOX -REMOVE 4 REPLACE
$7,433
279
4410 COOLING WATER -OISCONNECT/RECONNECT
$8,919
335
5330 STV GAS MAINS -CHG 3' SECT/ORIFICE
$1,784
67
5340 CHIMNEY VALVES -REMOVE 4 REPLACE
$4,608
173
5510 BURNER VALVES -REMOVE 4 REPLACE
$10,406
391
5570 HOT BLAST VALVES -REMOVE 4 REPLACE
$13,379
502
5590 BLOW OFF VALVES -REMOVE 4 REPLACE
$3,865
145
5610 HOT BLST CONNECTION -REALIGN W/ STV $12,901
469
5640 COMB AIR VALVS -REMOVE 4 REPLACE
$4,608
173
5680 STV SERV PIPING -DISCONNECT/RECON
$8,919
335
5710 FIELD PAINTING -STOVE 4 WALKWAYS
$10,554
0.80 0.95 0.50 1.00 1.00 1.00 0.95 0.95 1.00 1.00 0.69 0.30 0.10 1.00 1.00 0.30 0.30 1.00 1.00 0.90 0.30 0.00
$14,145 $11,747
$5,437 $308,908 $175,637
$16,657 $9,347
$80,977 $30,827 $39,244 $432,798
$2,230 $892
$1,784 $4,608 $3,122 $4,014 $3,865 $12,901 $4,147 $2,676
$0
$62,601
$3,536
$66,137 ($48,456)
$9,758
$618
$10,376
$1,989
$250
$5,437
$5,687
$5,187
$84,800
$0 $84,800 $224,108
$174,481
$0 $174,481
$1,156
$23,236
$0 $23,236 (*6,579)
$21,853 $91,768
$492 $4,262
$22,345 ($12,506) $96,030 ($10,791)
$30,089
$0 $30,089
$738
$11,231
$0 $11,231 $28,013
$875,654
$194,445 $1,070,099 ($442,856)
$22,375
$5,203
$27,578 ($20,145)
$0
$8,027
$8,027
$892
$632
$0
$632
$1,152
$12,761
$0 $12,761 ($8,153):
$15,801
$7,284
$23,085 ($12,679):
$14,045
$9,365
$23,410 ($10,031):
$425
$0
$425
$3,440 :
$0 $0 $0 $12,901 :
$110
$461
$571
$4,037
$0
$6,243
$6,243
$2,676 .
$0
$10,554
$10,554
McGCon 2672
$0 :
STOVE REBUILD FOR BLAST FURNACE NO. 3
CLIENT:
ARMCO STEEL -MIDDLETOWN
FINAL CUSTOMER: ARMCO STEEL -MIDDLETOWN
LOCATION:
MIDDLETOWN, OHIO
CONTRACT NO.:
1492
PLEASE NOTE: X COMPLETE AS OF 18JUL89
SECTION |
ITEM
i i
DESCRIPTION
! BUDGET
i i
DOLLARS
BUDGET PERCENT HOURS COMPLETE
ii
5720 !STOVE LIGHTING 1
] 1
5800 [COLD BLAST VALVES -REMOVE 4 REPLACE!
I1
11
[EQUIPMENT OPERATOR SUPPORT
i>
ii
[INDIRECTS
-
AT'>T*tJ
$6,826 $11,149
$0 $0
168 0.78 419 1.00
0 0.78 0 0.78
EARNED $
$5,324 $11,149
$0 $0
ACTUAL $
$2,330 $4,725 $127,284 $440,404
| SUB-TOTALS:
1 1 1 1 1 1
TOTALS:
j $1,700,000
i 1
1 1
(
1
42,228
0.78 $1,182,434 $2,026,613
EST TO COMP.
EST e COMP.
VARIANCE
$1,502
$3,832
$2,994 !
$0 $4,725 $6,424 [
$0 $127,284 ($127,284)!
$0 $440,404 ($440,404)!
$257,430 $2,284,043 ($584,043)!
McGCon 2673
MCGRAW CONSTRUCTION COMPANY,INC./ ENGINEERS & CONSTRUCTORS
MEMORANDUM
CONT. NO.
1492
TO:
FROM: SUBJECT:
DISTRIBUTION
John D. Chivers Stove Rebuild Status Report
./ --v4Tt
_ <r >:
DATE: June 23, 1989
pr7~r&'*x
Attached for your review is an analysis of Stove Rebuild at Armco Steel.
If you have any further questions, please contact me.
JDC:lv Attachment
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DISTRIBUTION: DHK, JFC, CJR, LJW, MAB, KRB, VNH
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McGCon 2674
McGRAW CONSTRUCTION COMPANY, INC./ENGINEERS & CONSTRUCTORS
POST OFFICE 370 31 S. CANAL STREET
MIDDLETOWN. OHIO 45042 TELEPHONE 513/422-4521 MIDDLETOWN. OHIO 45044 FACSIMILE 513/423-5384
CONTRACT NO: 1492 ARMCO: BLAST FURNACE NO. 3 STOVE 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.
I tern 2:
Extra costs sc hedu1e.
due
to a
deviation
from
the original
Item 3:
Field Management.
I tern 4:
Material handling and coordination problems.
I tern 5:
Construction supervision.
I tern 6:
Review of cutting checkers.
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REGIONAL OFFICES:
(KENTUCKY) P.O. BOX 2380 2301 GREENUP AVENUE ASHLAND. KY 41101 1606) 325-1502
(ILLINOIS)
736 CENTRAL PARK AVENUE FLOSSMOOR. IL 60422
'312) 957-0009
McGCon 2675
MCGRAW
CONSTRUCTION COMPANY INC ENGINEERS & CONSTRUCTORS
iTEn 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 2676
MCGRAW
CONSTRUCTION COMPANY INC ENGINEERS 4 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 *23.67. With this manhour overun, labor overun in excess of *350,000.
McGCon 2677
MCGRAW
CONSTRUCTION COMPANY INC ENGINEERS & CONSTRUCTORS
ITEM III FIELD MANAGEMENT: There appears to be a need Tor a ful 1 time McGraw field representative that has the authority and the e xperience to control and manage the project from the standpoi nt of cost, construetion, engineering, and schedu le. 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 2678
MCGRAW
CONSTRUCTION COMPANY. INC
ENGINEERS 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 2679
MCGRAW
CONSTRUCTION COMPANY. INC
ENGINEERS 4 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 our present goal to install four may never be realized.
and (4)
fit the courses
checkers is of checkers
so great, per shift
It is our opinion that an alternate means of cutting the checkers should be reviewed, i.e.; guillatine brick cutters or masonry saws.
McGCon 2680
MCGRAW
CONSTRUCTION COMPANY INC ENGINEERS & CONSTRUCTORS
ITEM V CONSTRUCTION SUPERVISION: Currently, Construction Supervision for 1st shift is holding 4 positions. They are a Brick 1ayer 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. Sincere 1y,
Paul T. Marshall Senior Cost Engineer
Samuel S. Warne Project Controls Engineer
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McGCon 2681
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McGCon 2682
ATTACUMt^r ZlET
MCGRAW CONSTRUCTION COMPANY,INC./ ENGINEERS & CONSTRUCTORS
MEMORANDUM
CONT. NO. 14 9 2
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 clarifications, please me .
questions or need further do not hesitate to contact
PTM:lv
cc :
JFC C JR BRB JDC TLP
McGCon 2683
McGCon 2684
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