© 2019 aveva group plc and its subsidiaries. all rights ... awc na... · “poor ontract...

Collaboration = Alignment = Certainty

EPC 4.0: Unified Project Execution


Lee Tedstone - Head of Procurement and Construction Solutions

Jon Paul Harkin – Head of Product – AVEVA ProCon

Barry Holton – Product Manager – AVEVA Enterprise Resource Management

Ryan Kilmurray – Product Manager – AVEVA LFM

AVEVA’s Unified Project Execution (UPE) strategy supports industrial CAPEX project teams by improving collaboration, enforcing best practice and mitigating capital project risk –

lessening both cost and schedule

“In 2019, nearly two-thirds of energy capital projects valued at more than $500 million exceed their projected budgets and

schedules by 35 to 50 percent “ Accenture Energy capital projects: A billion dollar growth engine

What is

AVEVA’s

UPE Strategy?

For Internal Use Only

CAPEX Project Execution Challenges

Poor Delivery

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.*

Owner operators and EPC’s expectations are not

always aligned. One party’s costs are another's revenues. Misalignment

impacts execution, admin efficiency, transparency, costs and productivity.

Misalignment Lack of Transparency

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

Lack of Control

Unforeseen changes on projects are inevitable, but

the inability to manage and execute them leads

to unnecessary costs and overruns - and the later those changes occur the

greater the cost escalation.

Claims & Disputes

Unnecessary claims and disputes create delays

and added cost. Lack of alignment and of control -

makes mitigation and management of claims and

disputes a big disruption

http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf

Define Strategic

and technical

Scope

Enforced

management

Process

Tailored Scope

and Milestones

Transparency

and Open

Communication

Knowledge

management

Fit-for-purpose

technology

ecosystems

$1 trillion

to $17 trillion of savings

http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf


The Solution? Controlled Execution

Stakeholders align around delivery and cost - no longer distracted by

transparency, control of change, disputes and claims

challenges

Full Alignment Connected Decisions

Automated transparency and connectivity of all

relevant data, integrated seamlessly across EPC and subcontractors - without

room for human error.

Profitable Return on Capital Employed

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

Control of Change

Automated adherence to commercial contracts via

enforced process, addressing issues and changes before they

progress into delay & cost.

*McKinsey

Full Audit Trail

A bullet proof audit trail through automated and

enforced processes makes claims & disputes rare - even on complex

projects

38% 64% 56% 7.1%


AVEVA Unified Project Execution


Key solutions

AVEVA Enterprise Resource

Management

AVEVA

ProCon

AVEVA

LFM

Unified Project Execution, on-premise and in the Cloud

AVEVA LFM ServerAVEVA LFM NetView

AVEVA PlanningAVEVA Material

AVEVA ProductionAVEVA Catalogue Manager

AVEVA ProCon

AVEVA ProConUnified Project ExecutionPresented by: JP Harkin, Head of Product, AVEVA ProCon



The Problem“Poor Contract Management Costs Companies 14.1% – Bottom Line”Tim Cummins, CEO, International Association for Contract & Commercial Management (IACCM)

Our Vision Reduce investment leakage for every capital industry we serve by accelerating and

safeguarding the execution of contracts and the contractual relationships.

AVEVA ProCon


The Platform for Tomorrow’s Challenges

A platform that drives contracting best practices, enables contracting party collaboration & provides intelligence on key risks within contracting lifecycle

Capex intensive projectConstruction of asset costing 100s millions, many multi national stakeholders, multi national, technically complex

Emergent shifts in large projects• Multiplicity of potential suppliers• Emerging complexity • Increased competition• Reduced programme duration & budgets• Incomplete contracts

Risks, uncertainty & Increasing unpredictability

“Incomplete contracts that recognise that theycontain uncertainty will require collaborativeprocesses between contract parties to berealised which are beyond the familiar comfortzone of well-known contract practice” [ICE Apr 2019]

Top 5 Contract Lifecycle Management (CLM) Challenges

Minimising Commercial Impact

of Changes

High cost of change due to a lack of foresight for right people & best practice

processes for governance.

Ensuring Compliance with

Legislation

Teams working in silos, heavy administration efforts, low knowledge of legislation. Audit outcomes – Fines!

Mitigating Claims & Disputes

Difficult to particularise claims due to disconnect on

prior events and decision making, leading to disputes.

Avoiding Overpayment

Cash-flow affected by difficulties to correctly verify

payment requests due to onerous manual checks.

.

Delays in approvals & reviews

Stretched functions miss obligations and milestones leading to extensions & idle

time.

© 2019 AVEVA Solutions Limited and its subsidiaries. All rights reserved.ProCon Platform

Contractual relationships protected by best practice governance interweaved in

platform

Proactive obligation, milestone and supplier KPI

management and RCA

Changes to schedule & cost surfaced early to right people

via platform AI

Events, communications and decision making captured in

an immutable manner

Streamline payment submission & verification

through platform automation

Tendering

Collaboration

Change

Payment

CLM within Capital Project Execution


Study FEL1

+ FEL2

Project Proposal

FEL3Funding Handover

Detailed Design & Engineering

Material Procurement & Mobilisation

Construction

CloseoutExecuting →Planning →Definition → Control →

12 – 18 months for Planning 24 – 36 months for Execution

Project Stakeholders

Project Schedule

Conceptual Design

Budget Estimation

Contracting Strategy

Prime Contract Sub Contracts & Framework Agreements

ProCon Platform

Maturing Industry 4.0


Realising the Digital Twin of Contract Lifecycle Management

Smart Contracts

Best Practice Libraries

• Commitment & Expenditure Outlook• Obligations & Events• Milestones• Processes• Risk Covers

• Roles & Access• Authority Levels• Business Process Workflows• Best of Breed Templates• Rules of Engagement• Information Architecture

Multi-Cloud Portals, Enterprise Ready, Integration Connectors, Immutable Auditing, Delegation of Authority, Secure Platform Search, Quick Onboarding

Smart Communications

• Automated Reviews• Financial Categorisation• Intelligent Relationships• Templatised Document Forms

Analytic Platform• Multi-Project Aggregation• KPI Monitoring• Process Governance• RCA Drill Down• Export

ProCon Platform

Connecting the Contract Lifecycle Personas

© 2019 AVEVA Solutions Limited and its subsidiaries. All rights reserved.

CONTRACTOR REGISTRATION

PRE-QUALIFICATION

TENDER MANAGEMENT

CONTRACT AWARD

TENDER PERFORMANCE ANALYSIS

MANAGE COMMUNICATIONS

CONTROL CHANGES & OBLIGATIONS

TRACK & VERIFY PAYMENTS & BUDGET CONTROL

MANAGE CLAIMS & DISPUTES

LESSONS LEARNT & FEEDBACK

PRE-AWARD POST-AWARD

Multi-Portals

Project Manager

Contracts & Procurement

Team

Corporate Auditor

Commercial Team

Construction Team

Engineering Team

Contractor Representatives

Integrated Approach to Managing Capital Project Risks


Project Controls

FinanceDocument

Management

Scheduling Vendor ManagementVendor Sync

Analytics

Data

Cost Breakdown

Commitment

& LI Received

Approved expenditure

Contract & Outline

Agreement Sync

Document

Archiving

Common AVEVA Cloud Platform

Authentication

Instance

Management /

Licensing

Schedule

Sync

Performance Dashboards

ProCon Platform

Problems were currently solving


Typical Monthly EPC Payment Cycle

Application for Payment

Payment Certificate

Invoice

Weekly Progress Report




Delays

Not Aligned to Terms

System Disconnect

Manual Checks

Over Payment AND / OR Claims & Disputes

What our customers say


“One of the first applications received on the contract was $400 higher than they were entitled to”

Prime Contractor, EPCm Contract

“We had a team of 10 verifying AFPs, but could NOT keep on top of the administrative

overhead. We were compelled to do spots checks only. As a consequence, oversights

were made and sub-contractors were over paid”

Owner Operator Managing an EPC Contract

“Customers have high expectations around the delivery of cost-effective contract

management services, resulting in more contract packages being managed by fewer

contract administrators”

Prime Contractor referring to their Client on EPCm Contract

Our Solution


Monthly EPC Payment Cycle

Application for Payment

Payment Certificate

Invoice





Contract Schedule

Rules of Credit

Central Communication Portal1

Governed Contractor Submissions2

Intelligent Process Associations3

Prefilled Forms driven from Contractual Rules of Credit

4

Right Material, Right Place, Time, Quality and Price and Near Zero Claims/Rejections

EPC 4.0 Strategy

Unified Project Delivery – ERM what is new


Presented By: Barry Holton, Strategy Manager – EPC

Xx November 2019

The Journey of Materials through to Construction Management

Right Material

• Material Specification

automation

• Integration with

Engineering and Design

Right Cost• Project Procurement

• Invoice Verification

Right Quality• Inspection Solution

Right Quantities• Requisition Filter Builder

• Engineering Material Control

Solution

Right Time• Organic Planning and

Scheduling Solution

• Integration with

Primavera

Right Place• Bulk material handling

• Supports multiple material

receiving locations and multiple

step moves

• Expediting and Logistics

Right Execution• Supports Advanced Work

Packaging

• Timeline Simulation

Reduction of TIC

by 7%

• Reduce Material Cost by

11% = reduce TIC by 3%

• Reduce Field Labor costs

by 10% = reduce TIC by

4%

Zero Claims• Reduce Claims

100% of Billings• +ve Cash Flow

• Max Profit

New in Catalogue Manager and Material

• Catalogue Manager (Single Source for All Design Tools)

• New Design Tools Exports, New Specification Types

• Reduce Errors, Duplicate Codes and reduce Cost to Maintain Catalogues

• Material (Break the 10% wastage stat - Reduce excess material purchases)

• RFQ, PO and Post PO Enhancements ( Move away from Excel )

• Transport Packages ( Align with Freight Forwarder to Track and Plan )

• Material Control in a single system

• Material Substitution in Issuing Material

• Free Issue Items ( Free Receipts )

• General Material Status Drill Downs


Packing Lists

Dynamic Material Allocation With Reservations


What can I build ? - Dynamic Material Allocation


Engineering MTO / Parts List

Pick List

SITE MTO / Parts List

Allocation Run

Issue Material

Fabrication Packages

DRL

Material Allocation RunsKeep the Workforce BusyReduce Waiting Time from the 40% stat

• Forecast or Reservation• 1 or 2 pass, full or partial allocation • What can be fabricated now ( 2-6 weeks Cycle)

if not by when


Site MTOsAllow Site to make and track changes

• Auto Generated by Approval Process • Allow Manual Adjustments at Site• Used for Dynamitic Material Allocation – Pick Tickets • Start of Fabrication Work Package

AWP - Fabrication Work Package With Milestone Progress



Fabrication Work Package

•Linked to Activity Start and End Data•Contains Fabricates ( Spools, Marked Pieces, Skid )•Links to Documents•Milestone Templates


Fabrication Work Package

•Milestones with Progress•Export and Import – Excel for Capture•Progress by Milestone•Rollout to high level plan•Mobile Back Reporting soon

Enhanced 4D Visualization and Time Simulation


Tools to show status and progress


AVEVA LFM


PORTFOLIO MANAGEMENT

Presented By: Ryan Kilmurray, Product Manager – LFM Solutions


AVEVA LFM


202020192018

You are here

Q2 Q3Q1

General Availability23rd July

AVEVA LFM Server Released

AVEVA LFM NetView on AVEVA Connect Released

5.116th Aug

5.230th Oct

5.04th Feb

Q4 Q2Q1Q3 Q4

5.331st Mar

5.431st July

31st Oct 31st Mar 31st July

AVEVA LFM NetView on AVEVA Connect Planned Release

AVEVA LFM Server Planned Release


AVEVA LFM Server 5.2

• Multi-Level Floorplans

• Solid Pointcloud Management Framework

• Support for S3D 2018 & SPR 2018


Released 31st October 2019


Multi-Level Floorplans



Solid Pointcloud Management Framework



Support for S3D 2018 & SPR 2018



AVEVA LFM NetView on AVEVA Cloud

• All existing AVEVA LFM NetView on-premise functionality, plus:

• AVEVA Cloud front-end:

• User and digital asset management

• Authentication

• Data upload utility

• Automated project deployment after data upload

• Admin Page

• Cross-Region Replication (CRR)

• Backup/Restore

• Support for customer’s own logo

• Upload of individual entities e.g. Markup and Measurements


Released 23rd July 2019 (Initial Release)



• All existing AVEVA LFM NetView on-premise functionality, plus:

• CAD Model Objects improvements:

• Ability to show CAD Model Objects as fully opaque

• User selectable model files (hot-swap)

• CAD model objects in floorplans

• HD BubbleViews

• UI/UX Improvements

• Active groups for 3D Markup/Measurements

• Navigate directly to XYZ position

• Show meta data in window on scan hover in BubbleView and floorplan


Released 23rd July 2019 (Initial Release)


CAD Objects improvements


Various Features


HD BubbleViews


Non-HD BubbleViews HD BubbleViews



• 360° Panoramic image support

• Master Grid Points/Benchmarks

• Multi-Level Floorplans


Released 31st October 2019


360° Panoramic Image Support



Master Grid Points/Benchmarks



Multi-Level Floorplans


For Internal Use OnlyFor Internal Use Only

AVEVA LFM Cloud Platform -Initial Vision

• Develop a single, scalable platform enabling

millions of customers to work and collaborate

effectively on any brownfield data

• A powerful suite of highly integrated web-based

products

• Providing secure access for employees,

contractors and third parties

• Drive both existing and new customers onto a

single, extensible, cloud platform



AVEVA LFM Cloud Platform – Today, Tomorrow, Beyond

• Today

• Automated deployment of AVEVA LFM NetView projects

• Access to 3D data capture on the cloud through AVEVA LFM NetView

• Tomorrow

• Automated created of all resources – scan conversion, dataset generation, AVEVA LFM NetView project

publishing

• Download and live delivery of data locally

• Beyond

• Handling of unstructured data on the cloud

• Registration on the cloud



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
