1
A sustainable ROI across projects, predictable schedules and automated adherence to contracts - through effortless execution and accountability. Profitable Return on Capital Employed Full Alignment Stakeholders align around delivery and cost - no longer distracted by transparency, control of change, disputes and claims challenges Connected Decisions Automated transparency and connectivity of all relevant data, integrated seamlessly across EPC and subcontractors - without room for human error Control of Change Automated adherence to commercial contracts via enforced process, addressing issues and changes before they progress into delay & cost Complete Audit Trail A bullet proof audit trail through automated and enforced processes makes claims & disputes rare - even on complex projects Change Occurs Uninformed Decision Making Discourse between Project Parties Unnecessary Waste & Rework Cost & Schedule Overages Unclear Change Management Accountability **Source: IACCM – The Value of Contract Management ***Source: CII – Main Sources of Transactional Waste *Source: Dr. Stephen P. Mulva, Construction Industry Institute, July 2019. Cause #3 - Lack of Control Unified Project Execution Poor integration impacts collaboration, visibility and accountability. Data is often populated and shared manually which increases human error, lack of adherence to process and ill-informed decisions. Updates to project scope (a common occurrence) require extensive, manual auditing of work packages and material needs and allow extremely limited visibility of cost and schedule impacts. Disconnected systems result in mistrust of data which spills over into mistrust between project teams, potential oversights, safety incidents, value and information leakage and massive rework throughout the engineering and execution stages of the project. All of these things lead to mistrust between project teams, wasted time and resources, and ultimately cost and schedule overruns. 64% Of project overruns are due to untracked scope changes** Layer-upon-Layer of Additional Cost End Users EPCs / GCs Subcontractors Vendors Distributors Suppliers Raw Materials Average amount of transactional (non-productive) waste attributed to claims defense on a project. 7.1% 56% Of project owners linked overruns to lack of effective change control** Of Owner Operators blame overruns on inadequate governance in contract management** 38% 41.3% Of project costs can be attributed to transactional waste that is unproductive to the project *** TODAY 25.90% 24.84% 10.29% 9.70% 7.53% 7.10% 6.36% 5.20% 4.77% 3.15% 3.10% 2.65% 2.25% 41.43% Trade Credit and Debt Finance Charges Non-Value Added Field Operations Missed Depreciation Charges and Excess Tax Logistics Optimization and Expediting Duplicative Insurance Coverage Cost of Claims Duplicative Contingencies and Management Reserves PO / RFP / Bidding Crime / Fraud / Counterfeiting Surety / Bonding Expense Interoperability Rework Foreign Exchange TOTAL COST Main Sources of Transactional Waste Standardization Intelligent Information Handover Cost Management Owners Operators Win Business Improve Communication & Alignment Protect Profit Margins/Cashflow EPCs Unified Project Execution On-budget On-time Claims & Disputes Underestimated Project costs Poor Change Management Competing Priorities Capital projects are a high-cost, high-risk endeavor Cause #1 - Misalignment Cause #2 - Lack of Transparency Cause #4 - Wasted Time & Resources * Only AVEVA ProCon enables enforceable processes tracking the receipt, review and approval of changes before implementation can take place, linking a project's process and commercial agreement. We enable complete control with automated alerts for potential overruns for more informed decision making as changes arise. Commercial Firewall Uniquely AVEVA’s ERM combines material management, optimized bulk buy workflows, workface planning and 3D model integration to minimize value leakage and enhance productivity. Automation enables early bottleneck detection and aligns materials availability with schedule to cut material and production costs and improve overall project quality. Material Optimization Only AVEVA LFM gives you full flexibility on both greenfield and brownfield sites, connecting all information into 3D tools – without limitation to type, size, speed and volume of scan data collected, agnostic across all technologies, and without delay to the project execution phase. Agnostic Flexibility Together we can get you there Competing Project Execution Priorities 98% of mega-projects are delivered late and 80% are over budget due to poorly managed risk and high levels of uncertainty and scope changes throughout the course of the project. – McKinsey, The Construction Productivity Imperative 64% of mega projects are facing cost overruns and 73% of the projects are reporting schedule delays. – EY, Spotlight on Oil and Gas megaprojects Are these causes part of your day to day? Change is inevitable, but risk is optional Customer Experiences “We deploy ProCon on our 16 largest projects, but there’s scope to extend it further. We experienced ZERO claims on $12bn Shell Prelude – first FLNG ever built, which is the now benchmark for other projects to work against” “Using ProCon allowed us to recover over $1B in a high-risk JV project in Africa” “Deploying ProCon during the early stage of our project allowed us to demonstrate the ability we had to reduce risk during execution moving closer to FID” “AVEVA Enterprise Resource Management (ERM) reduced training time across engineering, procurement and project controls by 23%. Participants noted the solution was easy to use, provided quality training materials and the right functionality for EPC projects” “AVEVA ERM integrated seamlessly with our SAP planning systems, offering all-round capabilities, where all our technologies were working towards the same goals and no specialist knowledge was required to switch from one to the other” “Using AVEVA ERM has allowed us to set an internal target of 20% cost reduction in our overall operations” “LFM has proven over the years to not just be a vital tool but a very powerful 3D laser scanning application for brownfield projects. I’m currently managing a very large LFM project, around 20 terabytes of point cloud data with over 19,000 laser scans. The success of LFM means it is currently being used in all Fluor offices around the world” © 2019 AVEVA Group plc and its subsidiaries. All rights reserved. linkedin.com/company/aveva www.aveva.com @avevagroup facebook.com/avevasolutions Talk to an Expert: sw.aveva.com/upe Unified Project Execution AVEVA creates opportunity for better project outcomes, no matter the complexity Read the Whitepaper

Unified Project Execution€¦ · Disconnected systems result in mistrust of data which spills over into mistrust between project teams, potential oversights, safety incidents, value

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Page 1: Unified Project Execution€¦ · Disconnected systems result in mistrust of data which spills over into mistrust between project teams, potential oversights, safety incidents, value

A sustainable ROI across projects, predictable schedules and automated adherence to contracts - through effortless execution and accountability.

Profitable Return on Capital Employed

Full AlignmentStakeholders align around delivery and cost - no longer distracted by transparency, control of change, disputes and claims challenges

Connected DecisionsAutomated transparency and connectivity of all relevant data, integrated seamlessly across EPC and subcontractors - without room for human error

Control of ChangeAutomated adherence to commercial contracts via enforced process, addressing issues and changes before they progress into delay & cost

Complete Audit TrailA bullet proof audit trail through automated and enforced processes makes claims & disputes rare - even on complex projects

Change Occurs

Uninformed Decision Making

Discourse between Project Parties

Unnecessary Waste & Rework

Cost & Schedule Overages

Unclear Change Management Accountability

**Source: IACCM – The Value of Contract Management***Source: CII – Main Sources of Transactional Waste

*Source: Dr. Stephen P. Mulva, Construction Industry Institute, July 2019.

Cause #3 - Lack of Control

Unified Project Execution

Poor integration impacts collaboration, visibility and accountability. Data is often populated and shared manually which increases human error, lack of adherence to process and ill-informed decisions.

Updates to project scope (a common occurrence) require extensive, manual auditing of work packages and material needs and allow extremely limited visibility of cost and schedule impacts.

Disconnected systems result in mistrust of data which spills over into mistrust between project teams, potential oversights, safety incidents, value and information leakage and massive rework throughout the engineering and execution stages of the project. All of these things lead to mistrust between project teams, wasted time and resources, and ultimately cost and schedule overruns.

64%

Of project overruns are due to untracked scope

changes**

Layer-upon-Layerof Additional Cost

End Users

EPCs / GCs

Subcontractors

Vendors

Distributors

Suppliers

Raw Materials

Average amount of transactional

(non-productive) waste attributed to claims defense on

a project.

7.1%

56%

Of project owners linked overruns to lack of effective

change control**

Of Owner Operators blame overruns on inadequate governance

in contract management**

38% 41.3%

Of project costs can be attributed to transactional waste that is

unproductive to the project ***

TODAY

25.90%

24.84%

10.29%

9.70%

7.53%

7.10%

6.36%

5.20%

4.77%

3.15%

3.10%

2.65%

2.25%

41.43%

Trade Credit and Debt Finance Charges

Non-Value Added Field Operations

Missed Depreciation Charges and Excess Tax

Logistics Optimization and Expediting

Duplicative Insurance Coverage

Cost of Claims

Duplicative Contingencies and Management Reserves

PO / RFP / Bidding

Crime / Fraud / Counterfeiting

Surety / Bonding Expense

Interoperability

Rework

Foreign Exchange

TOTAL COST

Main Sources of Transactional Waste

Standardization

IntelligentInformationHandover

Cost Management

Owners Operators

Win Business

ImproveCommunication &

Alignment

Protect Profit Margins/Cashflow

EPCs Unified Project Execution

On-budget On-time

Claims & Disputes

UnderestimatedProject costs

Poor ChangeManagement

CompetingPriorities

Capital projects are a high-cost,high-risk endeavor

Cause #1 - Misalignment

Cause #2 - Lack of Transparency

Cause #4 - Wasted Time & Resources*

Only AVEVA ProCon enables enforceable processes tracking

the receipt, review and approval of changes before implementation can take place, linking a project's

process and commercial agreement.

We enable complete control with automated alerts for potential

overruns for more informed decision making as changes arise.

Commercial Firewall

Uniquely AVEVA’s ERM combines material management, optimized

bulk buy workflows, workface planning and 3D model

integration to minimize value leakage and enhance productivity.

Automation enables early bottleneck detection and aligns

materials availability with schedule to cut material and

production costs and improve overall project quality.

Material Optimization

Only AVEVA LFM gives you full flexibility on both greenfield and brownfield sites, connecting all

information into 3D tools – without limitation to type, size, speed and volume of scan data

collected, agnostic across all technologies, and without delayto the project execution phase.

Agnostic Flexibility

Together we can get you there

Competing Project Execution Priorities

98% of mega-projects are delivered late and 80% are over budget due to poorly managed risk and high levels of uncertainty and scope changes throughout the course of the project.

– McKinsey, The Construction Productivity Imperative

64% of mega projects are facing cost overruns and 73% of the projects are reporting schedule delays.

– EY, Spotlight on Oil and Gas megaprojects

Are these causes part of your day to day?

Change is inevitable, but risk is optional

Customer Experiences

“We deploy ProCon on our 16 largest projects, but there’s scope to extend it further. We experienced ZERO claims on $12bn Shell Prelude – first FLNG ever built, which is the now benchmark for other projects to work against”

“Using ProCon allowed us to recover over $1B in a high-risk JV project in Africa”

“Deploying ProCon during the early stage of our project allowed us to demonstrate the ability we had to reduce risk during execution moving closer to FID”

“AVEVA Enterprise Resource Management (ERM) reduced training time across engineering, procurement and project controls by 23%. Participants noted the solution was easy to use, provided quality training materials and the right functionality for EPC projects”

“AVEVA ERM integrated seamlessly with our SAP planning systems, offering all-round capabilities, where all our technologies were working towards the same goals and no specialist knowledge was required to switch from one to the other”

“Using AVEVA ERM has allowed us to set an internal target of 20% cost reduction in our overall operations”

“LFM has proven over the years to not just be a vital tool but a very powerful 3D laser scanning application for brownfield projects. I’m currently managing a very large LFM project, around 20 terabytes of point cloud data with over 19,000 laser scans.  The success of LFM means it is currently being used in all Fluor offices around the world”

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

linkedin.com/company/avevawww.aveva.com @avevagroup facebook.com/avevasolutions

Talk to an Expert: sw.aveva.com/upe

Unified Project ExecutionAVEVA creates opportunity for better project outcomes, no matter the complexity

Read the Whitepaper