“doing things differently to deliver genuine efficiency.” · “doing things differently to...
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“Doing things differently to deliver genuine efficiency.”
Removing complexity. Maximising efficiency
Industry challenges, and a rising cost base, has exerted significant pressure on oil and gas operations. What the industry needs is a new way of working, of delivering more work for less cost: More 4 Less.
40-60% less*
Implementing our More 4 Less methodology focuses on efficiency, challenging assumptions and driving new ways of thinking. As an industry we need to move quickly towards a new way of working with simple, cost efficient solutions.
Cut spend – spending less on non-value execution. Eliminate waste early and focus on high value scopes.
Assure efficient delivery – remove inefficiencies in planning and execution, leading to sustainable efficiency improvements.
Reduce headcount – review organisation (contractors and wider supply-chain) and culture.
Enhance operations – define areas to improve production opportunities.
Get more
Transforming to a new way of working
This is the new normal1
Do less
For less
With less
*Based on traditional modifications
2
34 cost reduction initiatives implemented.
Reduction in modification delivery duration from 20 weeks to 4 - 5 weeks.
40% reduction in hours to complete tasks
60% less onshore construction hours to produce work packs
20% reduction in hourly costs
Reduction in overall costs by 50%.
Increase in modification completion ration by over 40%
40% improvement in engineering to construction man hour ratio.
“It’s been three months since we awarded these contracts and we are projecting a 65% saving compared to our baseline in 2014.”
Delivers 40-60% savings, safely*
£30,000
£25,000
£20,000
£15,000
£10,000
£5,000
£0
£16,000
£14,000
£12,000
£10,000
£8,000
£6,000
£4,000
£2,000
£0
Initial Estimate
Customer Costs
Engineering & Design
Contract & Project
Management
Materials Fabrication Scopus Efficient Mod
Price
Efficiency Saving 58%
£25,656 £10,754
£30,000
£25,000
£20,000
£15,000
£10,000
£5,000
£0
£16,000
£14,000
£12,000
£10,000
£8,000
£6,000
£4,000
£2,000
£0
Initial Estimate
Customer Costs
Engineering & Design
Contract & Project
Management
Materials Fabrication Scopus Efficient Mod
Price
Efficiency Saving 53%
£13,800 £6,543
*30% - 60% cost saving for modifications with accelerated delivery
times of more than 50%.
*Based on traditional modifications
Efficient delivery is not about taking shortcuts. Ensuring that all work is safely executed is integral to our More 4 Less methodology.
A key success factor is to improve the integrity of the asset by reducing the probability of process related incidents. Our safety processes are scaled in line with the applicable risk profile.
A strong HSSE culture is key to our delivery model and our Beyond Zero programme is integral to that culture. Beyond Zero contains tools, techniques and standards that help us drive a refreshed HSSE agenda, one that will stand the test of time and deliver world class protection from harm; for our people, our assets, our environment and our customers.
No compromise on safety
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‘More 4 Less’ is not about taking shortcuts.
Deliver efficiently = for lessAssure efficient delivery – remove inefficiencies in planning and execution, leading to sustainable efficiency improvements.
Scope work correctly = do lessCut spend – spending less on non-value execution. Eliminate waste early and focus on high value scopes.
= fewer deliverables
Execute high value jobs.
Eliminate low value jobs early in process.
Finish every job we start - one pass through.
= fewer hours needed to deliverIn our experience, applying the right level of challenge at this stage can deliver significant savings. We have executed a number of scopes recently where we have saved in excess of 50% by challenging assumptions, standards and specifications to deliver optimal solutions for our customers.
4
Minimise overheads = with less
Reduce headcount – review organisation (contractors and wider supply-chain) and culture.
Efficient organisation – standard delivery model
Efficient project management & services
Efficient procurement - Benefits of Utilising Strategic Fabrication Alliances:
Maximising “wrench time” offshore is vital to the success of efficient work execution. Work executed by the team relies on effective planning, preparation, scheduling of work scopes and the ability to minimise non-productive time.
Removing complexity.
Maximising efficiency.
One team ethos for construction activities is
key to success.
Efficient delivery
Optimised cost per hour
4
HVECAmec Foster Wheeler’s High Value Engineering Centres (HVEC) in India support our client based teams to deliver a proportion of engineering scopes. The delivery model is tried and tested - we have utilised our Chennai office to deliver engineering expertise for customers for over ten years.
Get moreEnhance operations – define areas to improve production opportunities.
5
Efficient FEED (Front End Engineering Design)
A focussed and flexible approach
“No more, no less than what is required”Our approach to efficient FEEDs (front end engineering designs) is to develop the essential technical definition to enable the next phases, applying a pragmatic approach, and highlighting potential areas of saving during the FEED tendering process.
We make sure the scope of work is developed to fit with our client’s requirements and preferences
We identify the best resource to execute each segment of work
We then use the best tools to execute and manage the work
FEED hub of expertise
Specialist Consultancy
Technical Authorities
HVEC
Our aim is to minimise the workscope that falls into the “extra technical development” and “de-risk detailed design” segments
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Piping
Electrical
I nstru
ments
Tech Safety Mechanical
S
truc
tura
l
P
roce
ss
Discipline scopes of work developed in segments:
Essential technical
definition
Extra technical
development
De-risk detailed
design i.e. additional
model development,
early procurement
7Our aim is to minimise the workscope that falls into the “extra technical development” and “de-risk detailed design” segments
Our approach to efficient projects is to do them differently. This includes:
► Do one, build many
► Copy designs
► Modularization
► Efficient information hand over
Efficient delivery covers a whole range of areas.
Leading-edge modularisation skills We are world-leaders in the design and execution of modularised construction, for example we have designed and delivered the only LNG plants to have been completed to date on a multiple module construction basis.
Leading optimisation skillsOne of our areas of particular expertise is in optimising the design facilities such as power generation or industrial plants. For example we are able to design systems to utilise waste heat from adjoining facilities.
Efficient projects
Clarity of Scope & Information
Cu
sto
mer
Rel
atio
nsh
ip
Inte
rfac
esS
up
ply
Ch
ain
M
anag
emen
t S
trat
egy
Leadership and Drive
Technology
Project Startup
Control and Predictability
Information & Data Flows
Management of No Change
Sequence of Activities
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Dimensional controlDimensional control can be applied across greenfield and brownfield projects, from modular build construction or build verification through to individual repair orders. It ensures that all items will fit together first time, be this a single pipe spool change out, or an entire package fabricated off site.
Dimensional Control advances build schedules and dramatically reduces costs for topsides, module, PAU, PAR, pipework and new build projects. Dimensionally accurate to within 1mm, it is used for critical interfaces and tie-in points to ensure that newly fabricated pipework, equipment and structures always fit-first-time. The benefits are:
► Reduced schedules
► Budget control
► Mitigated risk
► Reduced project costs
► Direct and indirect savings
► Eliminated re-work
ExampleDimensional control in Abu Dhabi using state-of-the-art survey equipment, and our proprietary software and methods, to advance build schedules and dramatically reduce costs.
‘For the modular build, our job is to ensure that the components of the new infrastructure are fabricated in parallel across multiple locations, and are then brought to fit seamlessly together at site.’
Pre-assembled units (PAUs) are built around the world including Oman, Abu Dhabi, Italy, Dubai, China, South Korea and Singapore, and then shipped to site. Piping in the racks are then joined together using our single-weld philosophy, developed for the specific needs of this project, to provide a clash-free first-time-fit.
Efficient procurementHaving the right spares, their availability and then tracking them is vital.
Our knowledge and experience, including prior knowledge of equipment types/manufacturer, will deliver your mitigation strategy, sparing requirements stock holding and location.
Innovation: Track & Trace
We apply innovative technology to make sure you can track all your spares and equipment with accuracy, keeping down costs and improving efficiency.
“Creating & executing less”
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Efficient operations and maintenance
Assure efficiency
Cut waste
► Maintenance review
► Redundant equipment (asset assessment guidelines)
► PM optimisation
► SC rationalisation
► Skills passports (remove training per asset)
► Spares holding
► Technology – avoid flights
► Flights optimisation
► Strategic fabric maintenance
Efficient Management
Reduce Unit Rates
Execute (Less)
Bring Efficiency
Example: Decomplexing Leman Echo
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Assure efficiency
► Plant efficiency
► Optimisation
► Technology – permit control
► Wrenchtime – Open Up the Day
► Standard procedures - spares
► Planning discipline
► Paperless maintenance execution
Reduce headcount
► Multi skill
► Vendor rationalisation
► Campaign maintenance
► Litehouse / NUI (normally unmanned installation)
► Technology – move indirect management onshore
► Integrated services
Enlarge production (optimise)
► Production efficiency
► De-bottlenecking
► Strategic decommissioning
► Production loss elimination / optimisation
Revolution
Facility De-complexing
Remove plant and need for use/maintenance
Lighthouse Mode
Contractor Commercial Model
Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.
Employing around 40,000 people in more than 55 countries, the company operates across the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.
Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology.
Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.
© Amec Foster Wheeler 2016