© 2019 AVEVA Group plc and its subsidiaries. All rights reserved. NA 2019 Day 1 Content/EPC... · 2019-11-18 · Very Low Adoption of Technology in our Industry 1 Based on data of

© 2019 AVEVA Group plc and its subsidiaries. All rights reserved.

Presented by:

Session ID: EPC-02

Take Control of your Engineering and Design Process


Julien de Beer, Head of Portfolio Management, Engineering

November 12, 2019

Panel Session


EPC-02

Take Control of your Engineering & Design Process

Panel Discussion

Audience Q&A

01

02

03

Market Challenges


MARKET ENVIRONMENT

Commodity Prices, Fluctuating Demand

Competition and Consolidation

Equipment, Quality, Safety Regulations

Geopolitical Uncertainties

Generation Shift

Cloud

Industrial IoT

Mobility

Big Data & Analytics

Cyber Security

TECHNOLOGY TRENDSCUSTOMER IMPERATIVES

Start-up new, revamped and reconfigured plants, on time, on budget

Operational Efficiency to Drive Profitability

Increase Agility and Innovation

Zero accident safety cultureand processes

Workforce Evolution and CapabilityPace of Change

Very Low Adoption of Technology in our Industry

1 Based on data of top 20 E&C companies by market value Globally 2 Top 20 companies by market value

Source: McKinsey Global Institute, Capital IQ, Gartner key metrics data 2012

5

0

1

2

3

4

5

6

7

2006 2007 2008 2009 2010 2011 2012 2013

0 1 2 3 4 5 6 7 8

Education

Softw are/internet

Banking/f inance

Professional services

Insurance

Database

Healthcare providers

Transportation

Pharma/life sciences/medical

Utilities

Industrial electronics

Consumer products

Manufacturing

Food beverage processing

Chemicals

Construction

Energy

Telecommunications

Media/entertainment

Retail/w holesale

Consumer

discretionary

Industrials

Aerospace

Automobile

Chemicals

& Energy

Construction

CONSTRUCTIONHospitalityHealthcareGovernmentPersonal and local servicesEntertainment and recreationRetail tradeEducationTransportation and warehousingReal estateMining

Chemicals and pharmaceuticalsUtilitiesOil and gasAdvanced manufacturingWholesale tradeFinance and insuranceProfessional servicesMediaICT

Basic goods manufacturing

Agriculture and Hunting

IT spending

Percent of revenue spent on IT

Level of digitization

MGI industry digitization index,

2015 or latest available data

R&D investment

Percent of revenue spent on R&D


Customer Challenges

Predictable Project Outcome – cost, schedule, performance

• Achieving FID – getting a credible estimate

• Known Process – want to get more options and higher accuracy

estimate

• Relationship between Owner Operator and EPC

• Rethink contracting strategies

• Greenfield vs Brownfield

• Communication alignment during Project Execution phases

• Controlled handover of information

Owner Operator and EPC

Customer Challenges: EPC and O/O


“75% of major projects are over

budget by 40% or more and late

by 20 Months”

– Independent Project Analysis

Project execution

“Unbudgeted costs of poor

Engineering Information Handover is

4% of Capex”

– National Institute of Standards and

Technology

“25-50% of Plant engineers’ time is spent

searching for Master Data (engineering

information) to support production,

maintenance, reliability, safety and

compliance programs”

– Owner Operators

Approx. $21m on a

$500m projectInefficiency

Handover Operations

Low Digital Maturity in Capital Projects


Manufacturing

Total Economy

Construction

High cost for errors and delays in plant startup

14.2% of Total Installed Cost

* Love et al

COST OF ENGINEERING ERRORS

COST OF CONSTRUCTION REWORK

5.4%of Total Construction Cost.The leading cause is errors in design

* Hwang et al

Digital transformation priority – Owner OperatorsPlant, Cloud and Intelligent Information Management

TOP PRIORITY

Plant Digitalisation (Digital

Twin) is a top priority in the

process industry

BIGGEST IMPACT

Cloud and Intelligent

Information Management has

the biggest impact


EPC 4.0 Performance Opportunities


How to improve Productivity1

1. Reshape regulation

2. Rewire contracts (Create Collaboration)

3. Rethink Design & Engineering

4. Improve procurement & supply chain

5. Improve on site execution

6. Infuse technology & innovation

7. Reskill workers

1. Source: McKinsey Global Institute analysis

30%


The Value of Front End Engineering & Design

• CII Best Practice – Front End Planning

• Value of CII Best Practices Report

(PAC-2016-4, Published Nov. 2016)

• Assessing the Maturity and Accuracy of Front

End Engineering and Design (Research

Summary 331-1, Published April 2018)


A high maturity project 2% below budget

• CII reports that “more mature and accurate

FEED in the early stages of industrial projects

improves cost and change performance, while

helping meet financial performance and

customer satisfaction expectations

How you get it depends on your contracting strategy with EPC…


Digital Asset

Contracting

Strategy /

Technology

Mandate

Data Centric

Project

Execution

Document

Centric Project

Execution

NOYES

Trusted

Engineering

Information

4%

Handover

TIC Savings

10% Project

TIC Savings

Typical EPC/Owner Operator Strategy

HANDOVER

Owner

Document

Centric

EPC


A Digital Strategy

EPC

Data

Centric

Operations


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0rDE7lVnjHfOTM&tbnid=0bUGWWfOl0kmaM:&ved=0CAUQjRw&url=http://forums.fourtitude.com/showthread.php?5612265-nifty-car-key&ei=dIcCU7KPBMTL2QWIrYGQAg&psig=AFQjCNGjZjbCwceFFRwBnI6gHkFxZMNoCw&ust=1392761054319145

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=rIyxqMR1LnT2JM&tbnid=cN3sOoHeYsh-8M:&ved=0CAUQjRw&url=http://www.testmiles.com/world-premiere-of-the-911-targa-at-the-north-american-international-auto-show-naias-in-detroit/&ei=rIcCU56IFejC2wW_qYGQBQ&bvm=bv.61535280,d.b2I&psig=AFQjCNHBdjt_yp0VRw1w0Qq8XDdroQJ4ug&ust=1392761109309692

EPC 4.0 cuts time and cost


Unified Engineering


Digital Twin = Digital Asset + Process Behavior

ProcessSimulation

Fluid Flow Rating

Simulation

Dynamic Simulation

Simulation changes made for Rating and Dynamics are automatically included in process simulation

PFD P&ID 3D

Engineering and

3D database

Simulate plantheat and material balance

1

Compare multiple design cases with process stream data

2

Detailed design of equipment, piping, instrumentation, and controls

4

Equipment Data

back to simulation5

Verify that the plant will operate as expected and validate the control strategy

7

Generate

FEED deliverables3

Verify that the equipment and piping are properly sized

6

Panel Session


EPC-02

Take Control of your Engineering & Design Process

Panel Discussion

Audience Q&A

01

02

03

Panelists


Alamath Carter

Senior Director of Engineering

TechnipFMC Process Technologies

Henry Acheampong

Site Engineering Supervisor

DuPont

Maxime Guillois

Manager, North America

Orinox

linkedin.com/company/aveva

@avevagroup

ABOUT AVEVA

AVEVA is a global leader in engineering and industrial software driving digital transformation across the entire asset and operational l ife cycle of capital -intensive industries.

The company’s engineering, planning and operations, asset performance, and monitoring and control solutions deliver proven results to over 16,000 customers across the globe. Its customers are supported by the largest industrial software ecosystem, including 4,200 partners and 5,700 certified developers. AVEVA is headquartered in Cambridge, UK, with over 4,400 employees at 80 locations in over 40 countries.

aveva.com


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© 2019 AVEVA Group plc and its subsidiaries. All rights reserved. NA 2019 Day 1 Content/EPC... · 2019-11-18 · Very Low Adoption of Technology in our Industry 1 Based on data of