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AIM collection/handover issues an EPC view Peter Staines

AIM collection/handover issues an EPC view Peter Staines. 2 nd February 2009. Who is Involved in Creation & Handover? Or Even 5, If You Use O&M Outsourcing Partners. O/O. EPC. D&B O&M. O&M Service Providers. Equip & System Suppliers. O&M Info. History. D&B Info.

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AIM collection/handover issues an EPC view Peter Staines

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  1. AIM collection/handover issues an EPC viewPeter Staines • 2nd February 2009

  2. Who is Involved in Creation & Handover?Or Even 5, If You Use O&M Outsourcing Partners O/O EPC D&B O&M O&M Service Providers Equip & SystemSuppliers O&M Info History D&B Info Image courtesy of Sid Snitkin, ARC Advisory Services

  3. What does that mean to an EPC? • EPC world is straight forward • O/O D&B team pass requirements to EPC • EPC passes requirements to Equipment & System suppliers • Equipment & System suppliers pass required information to EPC • EPC validates information • EPC packages information to meet O/O D&B team requirements • EPC hands over information to O/O D&B team • Well yes, but the world is more complex…

  4. Multiple business units Many common components, multiple definitions Civil Mining & Metals Communications Oil, Gas & Chemicals BSII

  5. Global projects Multiple clients, multiple requirements, multiple regulations West Coast Route Modernization Mosjøen Anode Plant Khursaniyah Gas Plant Autostrada Transilvania Scotford Upgrader Oak Ridge Reservation Tacoma Narrows Bridge New Doha International Airport Fjarđaál Smelter Bulgarian Wireless Network Elm Road Power Plant Waste Treatment Plant Jamnagar Refinery Chemical Weapons Elimination Missile Defense System KG D6 Gas Development Sammis Retrofit Lawrence Livermore National Laboratory 4G Communications Sakhalin Gas Processing Metrorail Extension Thai Oil Paraxylene Yucca Mountain Repository Browns Ferry Restart Kwajalein Test Range Los Alamos National Laboratory Sohar Smelter High Speed 1 London Underground AT&T Wireless Expansion OGD III Gas Processing Motiva Refinery Yarwun 2 Refinery Equatorial Guinea LNG PGESCo Power Program Port Waratah Expansion SonaHess Gas Development Los Pelambres Mine Sabine Pass LNG Terminal

  6. JERP Execution Applications& work processes (simplified) Strong standard processes exist but execution model varies by project

  7. Headcount of project staff 2400 Number of design offices and buildings10/19 Number of drawings & ISOs ~140,000 Number of vendor documents for review1 million + Cubic meters of structural concrete 1,200,000cm Metric tons of structural steel 110,000 mt Pieces of major equipment 4,500 JERP Execution Information drivers

  8. Who is Involved in Creation & Handover?Or Even 5, If You Use O&M Outsourcing Partners Hand-over requirements are normally not available at time of EPC contract award resulting in lost opportunity and additional cost Multiple execution offices/JV partnerships adds complexity to AIM for the EPC O/O EPC D&B O&M Disjoint as requirements are often defined by D&B on behalf of O&M (ultimate customer) therefore subject to change late in the project On an average size project this is at a minimum a 1:400 relationship for major suppliers, can be closer to 1:1000 on complex projects O&M Service Providers Equip & SystemSuppliers O&M Info History D&B Info Image courtesy of Sid Snitkin, ARC Advisory Services

  9. How does this impact the EPC? • Lack of well defined AIM requirements (what, where & when) at project award result in them not being included in EPC execution plan resulting in: • Requirements not being included in equipment purchase orders, 400-1,000 changes that have to be negotiated and issued • Project work-processes have to be updated to include additional data collection and transformation requirements, effort is increased by the number of project locations/partners • Generally O/O do not want to provide any relief to EPCs on schedule and cost leading to further delay in project acceptance and implementation • Significant reputation risk for EPC modifying processes this late in the project thereby potentially impacting quality, schedule and cost

  10. What is the solution • AIM requirements should be defined and included in the EPC contract award process • As far as possible the industry should develop generic requirements in the form of a guide that forms the basis of the requirements • O/O can supplement with requirements specific to a client, business unit or facility • EPCs can incorporate the generic requirements into their standard work processes • Offers opportunity for improved work-process efficiency and cost savings industry wide for O/O, EPCs and suppliers

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