Think Differently when Executing Capital Projects by Sandy Vasser, formerly ExxonMobil
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Sandy Vasser from ExxonMobil discusses innovative approaches to executing capital projects at the Aveva World Summit 2016, emphasizing the need to challenge traditional practices. By utilizing Aveva technology, ExxonMobil aims to significantly reduce design, construction, and commissioning times and costs. The presentation outlines lessons learned and encourages partnerships among stakeholders to foster systemic improvements in project execution.
Think Differently when Executing Capital Projects by Sandy Vasser, formerly ExxonMobil
- 1. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. > Sandy Vasser (retired), ExxonMobil, presents ‘Think Differently when Executing Capital Projects’ at the AVEVA World Summit 2016, New Orleans. EOM is challenging traditional practices and technologies to make giant leaps. As a result of using AVEVA technology, ExxonMobil is on the transformation path to reduce design by 30-50%, construction by 30% and commissioning work by 30-60%. Find out more how AVEVA can transform your business too www.aveva.com
- 2. Think Differently when Executing Capital Projects Sandy Vasser (Retired)
- 3. All of the Above Results in: 1. Repetitive recycle of designs thru startup; extensive hardware changes throughout execution 2. Many changes implemented in the field when the cost of a change is the highest 3. Automation and Electrical always on critical path 4. Execution uncertainty, longer schedules and higher costs Background Using Traditional Approaches A Different Approach Must be Adopted!!! Historical Challenges: 1. Numerous dependencies on other disciplines which forces sequential execution 2. Design input provided throughout the project cycle forcing numerous changes 3. Limited use of standard equipment or solutions 4. Resulting designs are highly engineered, very customized and frequently changing Mega-Project Complications: 1. Projects larger and more complex 2. Multiple EPCs and fabrication yards around the globe 3. Equipment sourced from around the globe 4. Parallel activities to satisfy project schedules 5. Project costs higher; project returns lower Automation Dependency Rework Diagram FEED Detailed Design Specification P&ID Changes C&E Changes HAZOP / SIL Findings Late Vendor Data HVAC Changes F&G Layout Changes Graphics Changes Architecture Design I/O Counts / Instrument Index Hardware / Software Design Hardware / Software FAT Field Installation Commission & Startup As-Built Documents Design Freeze
- 4. All of the Above Results in: 1. Repetitive recycle of designs thru startup; extensive hardware changes throughout execution 2. Many changes implemented in the field when the cost of a change is the highest 3. Automation and Electrical always on critical path 4. Execution uncertainty, longer schedules and higher costs Background Using Traditional Approaches We Must All Think Differently!!! Historical Challenges: 1. Numerous dependencies on other disciplines which forces sequential execution 2. Design input provided throughout the project cycle forcing numerous changes 3. Limited use of standard equipment or solutions 4. Resulting designs are highly engineered, very customized and frequently changing Mega-Project Complications: 1. Projects larger and more complex 2. Multiple EPCs and fabrication yards around the globe 3. Equipment sourced from around the globe 4. Parallel activities to satisfy project schedules 5. Project costs higher; project returns lower Automation Dependency Rework Diagram FEED Detailed Design Specification P&ID Changes C&E Changes HAZOP / SIL Findings Late Vendor Data HVAC Changes F&G Layout Changes Graphics Changes Architecture Design I/O Counts / Instrument Index Hardware / Software Design Hardware / Software FAT Field Installation Commission & Startup As-Built Documents Design Freeze
- 5. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Early Focus • Identify the Industry’s best practices • Incorporate lessons learned into the selected practices • Develop detailed procedures • Rigorously and consistently follow procedures from project to project • Audit to verify compliance
- 6. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Initial Measures to Improve Project Execution • Adopted the industry best practices of Main Automation Contractor (MAC) and Main Electrical Contractor (MEC) • Involving the MAC and MEC teams during FEED reduced costs by improving FEED documents • MAC and MEC teams implemented cost effective, fit-for-purpose solutions • Demonstrating beliefs in the MAC and MEC concept, the MAC and MEC Providers strategically changed their organizations and corporate focus to deliver project solutions and not simply hardware
- 7. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Project Delivery Cost Reduction Measures Execution • Design 1, Build Many (D1BM) • Compressed schedules by overlapping activities Procurement and Fabrication • Lower cost fabricators • Low Cost Country Sourcing (LCCS) • Modularization Engineering • Global competitive engineering • High Value Engineering Centers (HVEC) All of these measures complicate engineering execution. Additionally, they all assumed historical engineering processes will be followed.
- 8. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. BUT … • Automation and Electrical remained on critical path • Level of rework remained significant • Dependencies on other disciplines continued • Design freezes remained necessary • Activities continued to be performed before prerequisites were complete and/or out of sequence • All of this required extraordinary measures to deliver projects • Costs and schedules were managed but higher than acceptable and growing
- 9. Sandy Vasser - ExxonMobil Challenging Traditional Automation Practices & Technologies “It Just Happens”
- 10. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. New Approach Characteristics • Reduced customization; rely on standard solutions - Utilize Supplier or Contractor standard hardware solutions everywhere possible - Push any remaining customization from hardware to software • Reduced complexity and implement simplified designs - Reduce the component count and number of divergent systems - Take advantage of the capability of the installed systems - Reduce the number and simplify interfaces • Eliminated, simplified or automated processes • Reduced number and/or mitigated dependencies • Reduced amount and/or automatically generated documentation
- 11. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Customization: Truth & Consequences Beliefs: • Engineers – • Every non-standard requirement is there to address a lesson learned and can be easily justified considering the incremental cost of the physical change. • Specifying only what is required results in the lowest cost solution. • Management – The high cost of the projects are caused by engineers “gold-plating” the design. Reality: • Although there are increased costs caused by the physical changes of the non-standard requirements, the real impacts to the projects are the costs and delays associated with the infrastructure required to support the “customization” process. • A “customization infrastructure” incurs costs and delays with all of the following: • Creation and maintenance of Owner global specifications • Creation and approval of project specific specifications by Owners/EPCs • Preparation and approval of very detailed and expansive inquiry packages • Review and understanding of the inquiry packages by the Suppliers • Preparation of proposals by Suppliers that includes non-standard features and some specification deviations • Review and selection of proposals by Owners/EPCs • Development of new designs by the Suppliers to comply with the non-standard requirements and preparation and multiple submittal of dwgs • Review and approval of drawings by the Owners/EPCs • Fabrication holds for inspections by the Owners/EPCs to ensure customized features are included • Complete pre-FATS by Suppliers to ensure packages are in compliance before Owners/EPCs witnessed FATs • Complete FATs witnessed by Owners/EPCs
- 12. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Customization Solution • Work with each of the Suppliers to develop standard solutions that are acceptable to the Users • Standard solutions can include standard options that can be selected by each Owner/EPC • Compliance with industry standards could be part of the solution • Could require some compromises by both the Suppliers and the Owners/EPCs • Procure from the Suppliers solutions that are completely standard without any customization • Eliminate the need for project specifications where possible • Consider having each Supplier develop specifications for their solutions that include completely standard features and standard options • Utilize project datasheets in lieu of detailed specifications to reflect the selection of the standard options by the Owners/EPCs
- 13. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Key Areas of Focus • Areas where there is a lot of customization • Areas where an excessive amount of time and/or resources are used (e.g. alarm management, HMI graphics development, 3rd party package interfaces, engineering and vendor drawing reviews, FATs, commissioning, control system updating and replacements, field instrument calibrations) • Areas where there is a lot of rework • Areas where there are dependencies on other disciplines
- 14. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Smart I/O Concept Numbers in parentheses represent quantities for a sample project (I/O count = 9241). Benefits: • Standard factory Smart JBs with configurable I/O ordered by part number; no hardware FAT • 60-70% reduction in number of cabinets and wiring terminations; 40% reduction in building sizes • Additional I/O accommodated by just adding Smart JBs • Large reduction in copper cable • Allows ordering of standard factory Smart JBs to support construction with just an approximate I/O count
- 15. Electrical Control Interface Improvements Electrical Control and Management System (ECMS) consists of: • Micro-processor and PLC based systems plus software • Peripherals for monitoring and control of electrical equipment (e.g. switchgear, MCCs, generators, etc.) ECMS Elimination: Migrate electrical functions into Control System platform to: • Eliminate or dual-purpose standalone components • Simplify interfaces Summary of Reductions: • Simplifies architecture and standardizes interfaces • Reduces engineering and commissioning • Reduces equipment installation and termination • Reduces opportunity for errors • Reduces validation and troubleshooting • Simplifies maintenance Relay MCC/Switchgear/Etc. Cabinets w/ IED Servers ICSSDevices ASDS Controller HVAC Preheaters HMI Engineering Workstation Standard System, Controller Only Cabinet Standard Junction Box Standard Smart Junction Box HMI Relay MCC/Switchgear/Etc. Cabinets w/ IED Load Shed Controllers Engineering Workstation Servers Servers ICSSDevicesECMSDevices ASDS Controller Remote IO HVAC Preheaters 24 VDC POWER SUPPLY RIO ADAPTER 1794-ASB ADAPTER LOCAL ACTIVE FAULT FAULT 3 1794-IE8 ANALOG INPUT INPUT 0 INPUT 1 INPUT 2 INPUT 3 INPUT 4 INPUT 5 INPUT 6 INPUT 7 I V I V I V I V I V I V I V I V PWR Converter POWER Allen-BradleyQUALITY RUN BAT I/O Rs232 OK RUN PROGREM Logix5550 RXD ETHERNET< > TXD OK DC INPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC INPUT O K DIANOSTIC ST FLT ST FLT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC OUTPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC OUTPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ANALOG INPUT O K CAL OK ANALOG OUTPUT O K CAL OK DC INPUT O K DIANOSTIC ST FLT ST FLT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ControlNET OK A 03* AT AT HMI Engineering Workstation Standard Smart Junction Box POWER Allen-BradleyQUALITY RUN BAT I/O Rs232 OK RUN PROGREM Logix5550 RXD ETHERNET< > TXD OK DC INPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC INPUT O K DIANOSTIC ST FLT ST FLT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC OUTPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC OUTPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ANALOG INPUT O K CAL OK ANALOG OUTPUT O K CAL OK DC INPUT O K DIANOSTIC ST FLT ST FLT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ControlNET OK A 03* AT AT Standard System, Controller Only Cabinet POWER Allen-BradleyQUALITY RUN BAT I/O Rs232 OK RUN PROGREM Logix5550 RXD ETHERNET< > TXD OK DC INPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC INPUT O K DIANOSTIC ST FLT ST FLT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC OUTPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DC OUTPUT O K ST ST 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ANALOG INPUT O K CAL OK ANALOG OUTPUT O K CAL OK DC INPUT O K DIANOSTIC ST FLT ST FLT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ControlNET OK A 03* AT AT
- 16. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Benefits of New Technologies and Processes Physical • Standard, non-customized components ordered by part no.; detailed specifications not required • Reduction in the number of cabinets by 66%; reduction in terminations by 70% • No hardware FAT required for standard equipment; relying upon Supplier QA/QC • Significant reduction in footprint of Local Equipment Rooms (up to 40%) • Many copper cables replaced with fiber optic cables or completely eliminated (wireless) • Reduced topsides and module weight
- 17. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Benefits of New Technologies and Processes Activities • Simplified designs with less customization • Schedule ties and engineering dependencies broken between hardware delivery and the plant design • Design churn and recycle eliminated • Less opportunities for errors in construction; less inspection required and less troubleshooting • Significantly less vendor data that must be reviewed and approved • Reduced Automation and Electrical Engineering (30-40%), Construction (20-30%) and Commissioning (30-40%) • Automation and Electrical schedules compressed by as much as 25% and off critical path • Reduced Automation and Electrical hardware costs (30-40%) • Reduced amount of drawings and many automatically generated
- 19. Copyright © 2016 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Going Forward • Opportunities are not limited to the Automation and Electrical disciplines • Challenge all historical practices and technologies without exception • Focus on areas with a lot of customization, areas that consume a lot of time and/or resources and areas where there is a lot of rework • Do not simply improve the historical and proven practices; identify the true objectives and identify/develop the most efficient and effective methods to achieve the objectives without being burdened by the historical practices • Take full advantage of technology • This will only occur thru partnerships between the Owners, EPCs and Suppliers We must ALL Think Differently in everything we do!!!
- 21. Learn how you can benefit from using AVEVA technology to reduce costs, design and stay on schedule the same way ExxonMobil have experienced and many other customers. Visit www.aveva.com or click here to get in touch with our team. avevaworld.com @aveva /aveva