AI Case Study

Kaiser Parmanente increases construction labour productivity by 38% and saves 11% from the initial construction budget with machine vision and analytics

Kaiser Permanente leveraged AI technology from Doxel to optimise the construction of Viewridge Medical Office Building in San Diego, California. The project benefited from the vendor's automated progress tracking and quality inspection technology which uses visual data from HD cameras and laser scanners to measure installed quantities and calculate earned value. The overall project came 11% under budget as a result of a 38% increase in labor productivity across all trades.

Industry

Healthcare

Healthcare Providers And Services

Project Overview

According to Doxel, "the Kaiser Permanente Viewridge Medical Office project used an Integrated Project Delivery (IPD) contract structure, where the owner commits to reimburse contractors based on the direct costs of person-hours spent and materials installed. This arrangement passes on the cost savings from increased labor productivity directly to the owner. Owners commit to reimburse all person-hours spent on the project,
and therefore bear the entire monetary risk of a team not achieving optimal productivity.

As tracking productivity was key to mitigating risk on the project, the team leveraged Doxel’s proprietary technology as an early warning system to detect when the project was behind schedule, predict the potential negative financial implications, and inform effective corrective actions.

Doxel’s artificial intelligence compared the quality of field installations to the 3D design model of the Viewridge Medical Office. Because small errors can often create a ripple effect throughout a project that increases exponentially with delayed detection, it was important to the team that any errors be caught early. Doxel’s real- time detection capabilities of even the smallest defects enabled Kaiser Permanente to identify and correct errors in real time, significantly reducing the cost of rework.

Using autonomous devices, Doxel monitored the site every day with HD cameras and laser scanners. This visual data was processed by Doxel’s artificial intelligence algorithms that automatically measured installed quantities and calculated earned value for thousands of line items in the project’s budget. Through proprietary cloud- based financial analytics and forecasting software, Doxel put this data in the hands of Kaiser Permanente’s project team, giving them instant visibility into the precise amount of work done, the budgeted cost of work performed to date, and the project’s predicted cost-at-completion based on measured productivity rates.

Reported Results

"At the completion of the project, it was discovered that Doxel had successfully predicted cost-at-completion with 96% accuracy and with 6x more lead time than a conventional forecast.

In addition, Doxel’s real-time progress tracking system enabled the Viewridge Medical Office project team to intervene swiftly when schedule deviations were detected, yielding a 38% increase in labor productivity across all trades. This helped lead to the project being delivered at 11% under budget."

Technology

"Doxel’s artificial intelligence algorithms automatically measured installed quantities and calculated earned value for thousands of line items in the project’s budget"

Function

Strategy

Strategic Planning

Background

Doxel CEO Saurabh Ladha notes "that even today, 80% of construction projects end up over budget and 20 months behind schedule. He knows well the potential consequences of those delays, and it appears he has come up with a viable solution for spotting potentially devastating errors in often dimly lit construction spaces." (disruptordaily)

Benefits

Data

visual data from HD cameras and laser scanners