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  1. Case Study Cost Reduction & Performance Improvement – Aiken Group Case Study Gareth James (IT Manager)

  2. Agenda • Introduction to Aiken Group • Pains / Problems faced by Aiken Group • Solution – outline what was used to address the pains / problems • Reasons to select the specific solution • How is HD Job Costing being used • Benefits gained from using solution

  3. Who are we Aiken Group is a leading provider of construction, engineering, maintenance and project management services within the Oil and Gas Industries. Aiken Group recognized that investing in a fully integrated Project Cost Management system would strengthen their competitive advantage to respond and report to customers. This case study will explain how HD Cost Management and Primavera were implemented and used by Aiken Group to provide dynamic data integration and project cost controls throughout its worldwide operations resulting in - improved accuracy and response time to customer pricing queries ,improved performance & profitability, real time estimation & scheduling integration to accurately model cash flow and Earned Value Reporting, real time production control and productivity reporting, greater project portfolio visibility and reporting to project and senior management regionally & globally.

  4. Aiken Group • Over the past 22 years the Aiken Group has evolved to become an international engineering and specialist group. • Aiken Groupspremises occupy 10,000ft2 of office space and 30,000ft2 of warehouse facilities. • Yard storage at Marywell • Training facility

  5. COMPLETE INTEGRATED SERVICE

  6. Divisions

  7. Aiken GroupArchitectural Services Aiken Group can provide the full range of services required for the successful design and realisation of new builds, upgrades, modifications and the refurbishment of living quarters and associated facilities. Service provision covers: Offshore Surveys Conceptual studies FEED (Front-End Engineering Design) studies Detailed design 3D graphics Engineering, procurement and construction Project management Construction support engineering and labour

  8. Situation As we started to grow Aiken Group determined that it needed to change the way that it handled many aspects of its business, especially in the area of project management. The processes used at Aiken Group varied widely, based on the preferences and habits of the individuals who worked in individual departments. “We wanted to establish consistent processes across the organisation so that our clients could experience the same service and success regardless of where the consultants and groups they worked with were located,”

  9. Pains / Problems faced by Aiken Group • Costs associated with quoting • Our architectural department had recently quoted for 6 new similar jobs over a 2 month period and we calculated that the average cost for each of these quotes was £80K per quote • Time and resources used by quoting process • Our engineers were having to work overtime just keep up with the number quotes going out • Multiple sources of information • Each quote or actual job had multiple MS Excel spreadsheets usually split over different engineering disciplines, with each discipline using different methodologies and different spreadsheets

  10. Both Primavera and MS Project • Because of our place in the supply chain our client usually dictates which Project Planning tool we use, this makes portfolio management difficult across different jobs. • No Knowledge capture • We where unable to reuse prior quotes or jobs easily, with information being hidden away inside a spreadsheet ‘somewhere’ • Inconsistent quoting methods • Different departments use different Project Management Methodologies, we needed something that could cope with this.

  11. Difficult to analyse profitability across divisions / no portfolio analysis • We were relying on our accounts information to let us know what was happening with our projects and this was coming in after the fact. • Unable to track hidden costs • With large amounts of costs being put to ‘general overhead’ it was impossible to look at the direct costs associated with a job. • Poor Project Planning and Management • Frequently Project plans weren’t even being create unless a client asked for one, the justification being used ‘it’s only a small job we don’t need to’

  12. Selection Criteria • Proven Solution • ROI • Flexibility to integrate into how we work • Work within multiple methodologies • Work with both Primavera and MS Project • Software Architecture • User Interface • Planning integration • Closed Loop • Scalability • Deployment / Support

  13. Solutions • Benchmarked against our competitors • Reviewed marketplace • Developed our own systems • Reviewed marketplace again • HD Cost Management

  14. Implementation • Installation • Remotely installed on our already virtualised server infrastructure • Training • An implementation team was selected and in-depth training given from both HD and Milestone. Training is now being given to each department aligned with roll out plan also now utilising our new training facility. • Integration • With all backend systems, Primavera, MS Project Server, SharePoint, Accounts • Rollout status • Now all our major departments have started using HD Job Costing. All new quotes are being carried out in HD Job costing, we are now running 2 large jobs using HD Job Costing

  15. Training roll-out via IC Training

  16. Project Lifecycle HD Job Costing propels project-driven enterprises to succeed through every stage of the project lifecycle…

  17. User Interface

  18. Price Breakdown Structure

  19. Price Breakdown Structure The purpose of the Price Breakdown Structure (PBS) is to analyze and finalize your Target Price by adding profit. Target Profit is a summary of Direct and Indirect Cost Markup on which the Proposed Profit can be based. Indirect Cost Markup • PBS Target Profit Direct Cost Markup The Target Price is a summary of Bid Costs and Target Profit on which the Proposed Price can be based. Cost Items with no Pay Item Assignment. They represent overhead costs that are not directly related to the completion of a Pay Item. Business Overhead Bid Costs are a summary of Direct and Indirect Cost. Indirect Costs Job Overhead Target Price Bid Costs Costs that have a direct relationship to the completion of Pay Items. Cost Items with a Pay Item Assignment are considered Direct Cost. Direct Costs

  20. Cost Breakdown Structure

  21. Benefits Aiken Group has found that its new technology solutions help it achieve its goals of increased productivity, improved client service, and decreased costs. “Change takes time, but our efforts are already making people better at their individual jobs,” says Danny Donald Aiken Group MD. “We’re using HD Job Costing to give people information, achieve greater accountability, and positively change employee behaviour over time, all of which improve our ability to serve our clients.”

  22. Questions and Answers