A publication of Intergraph® Process, Power & Marine Issue 27 Quarter 1, 2010

SmartPlant® 3D Saves Time in Multiple DisciplinesSiemens Energy Sector

SmartPlant Enterprise Integration Promotes Global Operations IBERDROLA Ingeniería y Construcción

Focus on the

Materials Handling IndustryPromon EngenhariaECM S.A. Projetos IndustriaisSNC-Lavalin Minerconsult

Focus on the

Power IndustryAECLExelonThe Shaw GroupWestinghouse Electric

Insight is published by Intergraph Process, Power & MarineIntergraph Corporation, Huntsville, Alabama USA 35824 n 1-256-730-3707

To submit materials, write: Insight, Intergraph Process, Power & Marine, 300 Intergraph Way, Madison, Alabama USA 35758 or e-mail insight@intergraph.com

For more information about Intergraph Process, Power & Marine, call: Americas U.S. 1-800-260-0246; Canada 1-800-661-8134; Venezuela 58-212-959-5344; Mexico 52-55-5525-5594; Asia-Pacific 61-2-9929-2888; Europe Central 49-89-96106-0; Eastern 48-22-495-88-20; Northern 47-66-98-58-58; Southern 33-1-45-60-31-71; Western & Africa 44-1793-492500; Middle East 971-4-3367555; Other areas 1-256-730-3707. Or contact your local Intergraph representative. www.intergraph.comInsight is published quarterly by Intergraph Process, Power & Marine, Intergraph Corporation, Huntsville AL 35894-0001. For a complimentary subscription, call 1-800-260-0246 or e-mail insight@intergraph.com. Insight is published to inform and educate professionals about technology and issues pertaining to the process, power, offshore and shipbuilding industries. Insight accepts ideas for articles but reserves the right not to publish them for any reason. The contents of this publication may not be reproduced in whole or in part without the consent of the copyright owner. Images submitted for Insight articles are the property of and published with the permission of their respective owners.

Intergraph, SmartPlant, SmartMarine, PDS, COADE, CAESAR II, CADWorx, SIGRAPH and SIGRAPH.CAE are registered trademarks and SupportModeler, PV Elite and TANK are trademarks of Intergraph Corporation. SAP is a registered trademark of SAP AG. Microsoft is a registered trademark of Microsoft Corporation. Other brands and product names are trademarks of their respective owners. Intergraph believes the information in this publication is accurate as of its publication date. Such information is subject to change without notice and is subject to applicable technical product descriptions. Intergraph is not responsible for inadvertent errors. ©2010 Intergraph Corporation. 03/10 PPM-US-0097A-ENG

Editor: Patrick Holcomb

Managing Editors: John Deaver and Lebron Miles

Contributing Editors: David Joffrion and Jeannie Robison

Editorial Director: Jana Miller

Graphic Designer: Peter Belsito

A publication of Intergraph Process, Power & Marine n Issue 27 n Quarter 1, 2010

Page 4Focus on the Materials Handling Industry

Page 8Case Study: ECM S.A. Projetos Industriais

Page 14Focus on the Power Industry

Page 22 Case Study: Siemens Energy Sector

Page 24Case Study: IBERDROLA Ingeniería y Construcción

Features2 From the Top: Investing in the Future4 Focus on the Materials Handling Industry 6 Case Study: Promon Engenharia Successfully Implements Mining and

Metals Methodologies

8 Case Study: ECM S.A. Projetos Industriais Provides Project Design Leadership for Brazil’s Mining Industry

10 Case Study: SmartPlant® 3D Accelerates SNC-Lavalin Minerconsult Mining Project Implementation

12 Did You Know? Solutions for the Metals and Mining Industry

14 Focus on the Power Industry 16 Industry Perspective: POWER Magazine Spotlights Power 2010 –

An Industry Looking for a Direction

20 Industry Perspective: Power Industry Roundtable Discusses Changes and Challenges

22 Case Study: Siemens Energy Sector Implements SmartPlant 3D

24 Case Study: IBERDROLA Ingeniería y Construcción Realizes the Power of Integration

26 Did You Know? SmartPlant Enterprise Power Solution (KKS-Enabled) Benefits Both EPCs and Owner Operators

Departments 28 Industry Newsbytes

30 Recognition: Excellence in Smart 3D Automation Recognized in Inaugural Platinum Pipe Awards

31 Events and Announcements: Regional Conferences Address Local Needs

32 Industry Outlook: Cultivating Organizational Innovation

Editor: Patrick Holcomb

Managing Editors: John Deaver and Lebron Miles

Contributing Editors: David Joffrion and Jeannie Robison

Editorial Director: Jana Miller

Graphic Designer: Peter Belsito

A publication of Intergraph Process, Power & Marine n Issue 27 n Quarter 1, 2010

Issue 27

Letter from the Editor “Innovation distinguishes between a leader and a follower.” – Steve Jobs

L ike you, we strive to be innovative and the leader in every discipline and industry that we address. We

aim to develop engineering solutions that make a difference in this world while helping our customers

innovate and positively impact their business. In 2009, we announced several innovations that we will

be working with you to capitalize on in 2010.

Among our most recent innovations has been SmartPlant Construction, the focus of an earlier Insight issue,

which integrates planning, engineering, procurement, fabrication and site materials to more efficiently plan

and manage field construction. New, too, and featured in this current issue, is SmartPlant 3D Materials Han-

dling Edition, which automates the design and modeling of bulk materials handling systems for the mining,

port, power, pulp and paper industries. You can read more about Brazilian mining industry leaders ECM,

Promon Engenharia and SNC-Lavalin Minerconsult that are innovatively using Intergraph® solutions to solve

their challenges in this issue as well.

Another avenue of innovation for Intergraph has been through acquisitions – acquiring companies whose

products and services complement our solutions for the betterment of our clients. Two such recent acquisi-

tions, COADE® Holdings Inc. and the SIGRAPH® business unit from Technische Computer Systeme Sussen

GmbH (TCS), have brought us opportunities to both extend our ability to serve you, as well as create further

opportunities from the integration of these acquisitions. The COADE acquisition brings us the opportunity to

improve the integration of how your design and analysis disciplines work together, and also to better serve

the design needs of smaller projects than we have in the past. The SIGRAPH acquisition helps us to more fully

meet your broader electrical design needs and integrate the critical data shared between the instrumentation

and electrical disciplines. Please see the article detailing these acquisitions for more information inside this

issue of Insight.

We will focus much of our effort in 2010 to support you in capitalizing on these opportunities, and of course,

always keeping one eye open for further innovation opportunities.

Patrick HolcombInsight EditorExecutive Vice President, Global Business Development Intergraph Process, Power & Marine

1Insight

Inno

vati

on

A publication of Intergraph Process, Power & Marine Issue 27 Quarter 1, 2010

SmartPlant® 3D Saves Time in Multiple DisciplinesSiemens Energy Sector

SmartPlant Enterprise Integration Promotes Global Operations IBERDROLA Ingeniería y Construcción

Focus on the

Materials Handling IndustryPromon EngenhariaECM S.A. Projetos IndustriaisSNC-Lavalin Minerconsult

Focus on the

Power IndustryAECLExelonThe Shaw GroupWestinghouse Electric

2 Insight Issue 27

Even in times of economic uncertainty, Inter-graph remains dedicated to its customers by investing in research, development and tech-nology acquisitions. Recently, Intergraph has extended its market leadership with two acqui-sitions. Insight discussed these latest devel-opments with Gerhard Sallinger, president of Intergraph Process, Power & Marine.

Insight: In light of the economic down-turn, how is Intergraph’s continuing investment in research, development and acquisitions helping its customers?

Gerhard Sallinger: We have always worked hard to develop knowledge-based, automated engineering software. I think in the current, very competitive market environment, this is even more apparent than ever before.

Competitiveness in the marketplace is very important for our customers. And we’re deter-mined to be the ones that provide the solutions and capabilities they need. We want to give our clients the right tools to win on the battlefield.

Insight: What can you tell us about the latest acquisitions?

GS: The COADE acquisition in January advances our mission to provide best-in-class solutions to our customers and target markets around the world. The combination of COADE’s leading

analysis software, and its smaller-project design

software, with our SmartPlant and SmartMa-

rine® Enterprise engineering suites further

solidifies Intergraph’s industry leadership. This

acquisition brings together complementary

design and analysis technologies that will allow

us to deliver even greater value and productivity

for our users worldwide.

The SIGRAPH business unit acquisition in

November 2009 adds state-of-the-art electrical

detail engineering software to our portfolio of

intelligent 2D solutions. Either standalone or

combined with SmartPlant Electrical and Smart-

Plant Instrumentation, SIGRAPH.CAE® offers

great value to all companies who do electrical

design work.

Insight: How do these acquisitions ben-efit your clients?

GS: I am very excited about the strategic benefits

and growth opportunities of these acquisitions.

The two acquisitions illustrate our continued

commitment to invest in our product portfolio,

our customers and the future growth of our

company. Not only are we adding technolo-

gies, but we are adding many new talented

people to our team, which makes our company

even stronger.

We remain dedicated to the advancement of

the COADE and SIGRAPH software and believe

their customers will benefit from Intergraph’s

global product development and support capa-

bilities. Plus, these complementary technolo-

gies and expertise will allow us to even bet-

ter serve and provide additional value to our

global customer base.

Insight: What is your current outlook for the company?

GS: With these acquisitions and the rapid

adoption of our SmartPlant Enterprise software

solutions, we continue to heavily invest and

grow our business in the process, power and

marine markets.

The acquisitions are exciting events and pro-

vide evidence that Intergraph remains strong

even in a turbulent macro economy. We are

working every day with our clients from around

the world to provide them the innovative solu-

tions that help them succeed. I am certain that

our best days are still to come!

Jana Miller is editorial director of Insight and is

based in Huntsville, Alabama, U.S.

frOM tHE tOP

Investing in the FutureIntergraph’s research, development and acquisitions underscore commitment to customers

n By Jana Miller

3InsightQuarter 1, 2010

Intergraph has reinforced its industry lead-ership as the world’s leading provider of enterprise engineering software with two strategic acquisitions that will expand its markets and solutions capabilities.

COADEIn its largest acquisition in the process, power and marine market, Intergraph acquired COADE Holdings Inc., provider of CAESAR II®, PV Elite™ and TANK™ products, the industry’s most widely used software for pipe stress, pressure vessel and storage tank analysis, as well as its popular CADWorx® plant design suite.

The COADE acquisition will expand Inter-graph’s SmartPlant Enterprise engineering solution suite by bringing together the world leaders in plant design and pipe stress anal-ysis. The expansion of Intergraph’s Smart-Plant Enterprise design, construction and data management solutions with COADE’s analysis offerings creates a powerful soft-ware solution that will provide users in the marketplace with unmatched capabilities.

The acquisition of the Houston-based software provider also extends Intergraph’s market presence and ability to serve smaller projects with COADE’s CADWorx solution, a modular, AutoCAD-based 3D plant design system.

COADE’s customers will benefit from Inter-graph’s large research, development and global support teams located around the world and specializing in engineering solu-tions. COADE clients will also receive unin-terrupted support, maintenance and soft-ware upgrades as part of their maintenance agreement with Intergraph.

Existing SmartPlant Enterprise clients will benefit from the expanded functionality offered by COADE’s products as Inter-graph enhances product integration with

other Intergraph products to leverage

design and modeling with pipe and ves-

sel analysis. Deeper integration of design

and stress analysis solutions will enhance

productivity and enable a more seamless

flow of engineering information among

the software applications.

SIGrAPHIntergraph has also acquired the SIGRAPH

business unit from Technische Computer

Systeme Sussen GmbH (TCS), a leading

computer-aided engineering and document

management system vendor in Sussen, Ger-

many. The SIGRAPH acquisition includes

SIGRAPH.CAE, an innovative software appli-

cation for electrical and process control

engineering with a significant market presence

in the global oil and gas, metals and power industries.

This will further strengthen Intergraph’s SmartPlant Enterprise suite through addi-tional detailed electrical and control system design and deliverables capabilities. The combination of SIGRAPH with SmartPlant Enterprise provides an improvement in the wiring, cabling and detailed design func-tions across the engineering and schemat-ics solution.

Both EPCs and owner operators will benefit from having additional details on wiring schematics and panel design for trouble- shooting and maintenance projects. The instrumentation and electrical deliverables are a key component of the plant opera-tional document set, comprising a critical component of the documents-of-record that owners use and maintain for operation of the plant.

Working togetherIntergraph and these two companies have shared a common history of working closely with engineering and construction compa-nies and owner operators in the following industries:n Chemical/petrochemicaln Refiningn Power generationn Offshoren Shipbuildingn Metalsn Pharmaceutical and biotechnology.

Intergraph will continue to develop and invest in the SIGRAPH and COADE product sets to expand their capabilities and protect customers’ investments.

www.intergraph.com/ppm/sigraph.aspx

www.intergraph.com/ppm/coade.aspx

Strategic Acquisitions Expand Markets and Solutions Capabilities Users benefit from COADE® stress analysis and smaller-project design solutions and SIGRAPH® engineering and schematics solutions

Focus on the: Materials Handling Industry

n CASE STUDY: Promon Engenharia

n CASE STUDY: ECM S.A. Projetos Industriais

n CASE STUDY: SNC-Lavalin Minerconsult

n DID YOU KNOW?:

Solutions for the Metals and Mining Industry

Intergraph Meets the Challenges of the Materials Handling IndustryThe materials handling industry provides basic raw materials such as iron, steel and aluminum to major sectors of the world economy, includ-ing automotive, consumer goods and comput-ers. The process of getting the raw materials into the hands of end-users presents formi-dable challenges to the industry – from mining to materials handling to mineral processing to piping to de-watering.

Metals and mining operations are some of the largest in the world and among the most remote. Construction of facilities is logistically challenging and quite expensive. Delays and mistakes in materials management send costs skyrocketing. Managing global spare parts for sites that carry redundant inventory is a chal-lenge. And after construction, process facili-ties require a high degree of maintenance, so

it is critical to have up-to-date draw-ings and data on all equipment

in use in the facility.

The materials handling industry faces special challenges that until now have remained largely unaddressed. Read on to learn how Promon Engenharia, ECM S.A. Projetos Industriais and SNC-Lavalin Minerconsult have benefitted from choosing Intergraph for their materials han-dling solution. Plus, learn about Intergraph’s SmartPlant 3D Materials Handling Edition and how it offers specialized functionalities that directly address industry needs.

6 Insight Issue 27

Promon Engenharia is a Brazilian engineering

company that provides infrastructure solutions

to key sectors of the economy, including the

oil and gas, power, chemical, petrochemical,

mining, metallurgy, logistics and transporta-

tion markets. Since the company’s inception in

1960, Promon has completed a diverse group

of infrastructure projects such as oil refiner-

ies, petrochemical units, maritime terminals,

power plants with transmission systems, steel

mills, mining and metals plants, aircraft and

automobile plants, and commercial buildings,

as well as major railroad, highway and urban transportation projects.

The foundation of Promon’s success, within Brazil and also globally, can be attributed to its command of engineering and managerial techniques, a highly qualified team of more than 800 professionals and the capability to combine its proficiency with that of its part-ner companies, which are also leaders in their respective market segments.

Promon has been an Intergraph customer for more than 20 years, aided in implementations

by Intergraph’s SISGRAPH distributor in Brazil. The company selected Intergraph products based on the “pedigree” of the tools and their use by major engineering companies.

Alumina refinery expansionWhen Promon was recently tasked with a project in the mining and metals sector, the company lacked the specific tools neces-sary to complete the project, an expansion of Alunorte, an alumina refinery in northern Brazil. With a cost of nearly US$850 million, the Alunorte project consisted of the addition

Promon Engenharia Successfully Implements Mining and Metals MethodologiesEPC turns to SmartPlant Enterprise in expanding its industry reach

n By Fernando Schmiegelow

CASE StuDy: PROMON ENGENHARIA

7InsightQuarter 1, 2010

of two new production lines to increase min-ing capacity at the plant.

Promon sought to introduce mining and metals projects at the company within the 3D environ-ment that it was accustomed to working with in the oil and gas market. Promon also aimed to ensure a consistent flow of information among all the disciplines involved during the detailing process to enable everyone involved in the proj-ect to see the work done by others.

turning to SmartPlant EnterpriseFor Promon, based on the results of its previ-ous projects using PDS®, Intergraph was a logi-cal source to turn to meet its expanded needs. Knowing the success of Intergraph SmartPlant Materials in the mining and metals industry, Promon implemented this widely used materials management solution in conjunction with PDS. In addition, Promon also added two additional SmartPlant Enterprise solutions, SmartPlant Instrumentation and SmartPlant Electrical.

SmartPlant Materials provides strong man-agement workflow and functions, from pre-liminary design through detail engineering and purchasing to construction. SmartPlant Instrumentation helps to manage and store instrumentation and control data and pro-vides information life cycle functionality from early conceptual design and engineering to construction and maintenance. And, Smart-Plant Electrical addresses the electrical power distribution needs of the entire life cycle of the plant, from concept to detailed design through operations and maintenance, includ-ing start-up, continuous operation, emergen-cies and shutdowns.

To begin, 30 Promon employees were trained on the new solutions. Although the training lasted a total of three months, all of the users were productive after just two months, highlighting the ease of use of the software.

Throughout the project, Promon discovered a number of capabilities that increased its productivity and helped to expedite the engi-neering process. With the new software tools, Promon was able to collaborate with everyone involved with the project to create a better interface, which led to a better understanding of the problems and, as a result, an efficient

method of deciding on the best solutions. By applying the knowledge and benefits gained by the project team on previous projects using the 3D model, the company was able to con-siderably reduce the project’s schedule and also refinery ramp-up. Additionally, having a secure source for the maintenance of the engineering data provided faster responses during the engi-neering and construction phases.

Promon found that using PDS and SmartPlant Materials together with the system integra-tion capability allowed specifications made in SmartPlant Materials to be transferred directly to PDS with no rework required. Also, the material take-offs extracted from PDS could be sent directly to SmartPlant Materials using OMI spreadsheets, increasing the quality of the material data.

Customization benefitsThe Alunorte project required some customiza-tion of the products to gain optimum productiv-ity. For example, SmartPlant Materials had to be adjusted to adhere to the material coding proce-dures used by Promon. In addition to a control system that was created to compare instruments between the 3D model and SmartPlant Instru-mentation, an interface was also developed between SmartPlant Materials and SAP® to transfer the MTO data from engineering to pro-curement and then to materials control at the job site. Finally, Promon integrated with other solu-tions, including CAESAR II pipe stress analysis software, to improve the work processes, which led to reduced errors and project timelines.

Throughout the project, the following tasks were completed using Intergraph software solutions:n All civil, concrete and steelwork (including

underground) modeled in 3Dn Piping arrangements developed in 3D for

all pipe diameters, including in-line instru-ments and pipe support elements with real representation

n Main runs for cable trays applied to elec-trical and instrumentation needs

n All field instrument arrangements devel-oped in 3D

n Weekly clash detection reports createdn Material take-offs for piping directly

imported to SmartPlant Materials

n SmartPlant Materials exported all piping

specifications to PDSn Piping arrangement drawings created with

detailed information for constructionn Data files exported to be used by steel

structure suppliers with detail drawingsn Support index created with dimensional

information and weight for fabrication.

Although Promon had expected to encounter

challenges with the new methodology that

could potentially lead to obstacles and nega-

tive KPIs (quality indexes), this fortunately did

not occur. As the first project to be completed

with the new tools in the mining and metals

sector, Alunorte proved entirely successful and

the results were consistent with those across

other projects that employed traditional meth-

odologies. Pointing to the project’s success, the

Alunorte refinery is now responsible for seven

percent of global alumina production after the

latest expansion.

Bright future

As Promon moves forward, the company intends

to migrate from PDS to SmartPlant 3D for future

projects. Additionally, the interface between

SmartPlant Materials and SAP is undergoing

modifications to allow new data exchange.

Drawing from its 49 years of operation in

the world’s key infrastructure sectors, Promon

maintains that a detailed plan is integral to the

successful development of a highly integrated

project. The company also emphasizes the impor-

tance of a software-trained work group that is

capable of carrying out administrative tasks and

providing support as needed. Finally, Promon

stresses that to achieve a successful project in

any sector, users must be mindful that with new

tools often come new processes that differ from

conventional methodologies. Promon advises

that all firms should be prepared to embrace

the change.

Fernando Schmiegelow serves as marketing direc-

tor at SISGRAPH and is based in São Paulo, Brazil.

www.promonengenharia.com.br

8 Insight Issue 27

Brazil can boast of abundant metals and minerals. South America’s leading economic powerhouse, Brazil accounts for one-fourth of the world’s iron ore output and is among the world’s largest producers of bauxite, manganese, aluminum, niobium, nickel, zinc and tin. Recent discoveries of tungsten and copper deposits have further excited the met-als and mining industry. And Brazil is deserv-edly famous for its gemstones – emeralds, amethysts, aquamarines and topaz – which are mined extensively.

Given Brazil’s rich geological endowment, it is not surprising that the largest mining com-panies in the world have operations there.

Many of these major players turn to Inter-graph customer ECM S.A. Projetos Industri-ais to provide engineering, procurement and construction management (EPCM) services for their projects. Included among ECM’s cli-ents are global operators such as Australian firms BHP Billiton and Mirabela Nickel (with its Brazilian subsidiary Mirabela Mineração do Brasil); UK-based Rio Tinto and Anglo Ameri-can; and Brazil’s own Companhia Vale do Rio Doce, now called Vale, to name a few.

Founded in 1984, ECM is a multidisciplinary engineering company located in Belo Hori-zonte, the third-largest metropolitan area and the capital of the state of Minas Gerais, in the

southeastern region of Brazil. ECM’s core busi-

ness is providing project design for the miner-

als and mining industry, from feasibility stud-

ies to plant commissioning. ECM has about

550 employees and has been involved in some

of the most significant mining projects of the

past decade in Brazil for the mining indus-

try, including the Santa Rita Project (nickel

sulphide concentrator – Mirabela Mineração

do Brazil), Sossego Project (copper sulphide

concentrator – Vale), Brucutu Project (iron ore

concentrator – Vale), Minas-Rio Project (iron

ore concentrator – Anglo Ferrous) and Third

Pelletizing Project (iron ore concentrator and

pelletizing plant – Samarco).

ECM S.A. Projetos Industriais Provides Project Design Leadership for Brazil’s Mining IndustryCompany uses SmartPlant Enterprise tools to manage multidisciplinary information

n By Ricardo Fornari

CASE StuDy: ECM S.A. PROJETOS INDUSTRIAIS

9InsightQuarter 1, 2010

Benefits of integrated engineeringECM has chosen a number of Intergraph Smart-Plant Enterprise solutions: SmartPlant 3D; SmartPlant Review; SmartPlant P&ID; Smart-Plant Instrumentation and SmartPlant Electri-cal. Carlos Henrique C. Vasconcellos, associate director of engineering at ECM, reports that the SmartPlant solutions will help ECM to meet the challenges posed by its complex projects.

ECM looked to Intergraph’s software to capture all of the data and make the data available for use through each stage of a project, from engineering up to procurement, construction and ramp-up.

“SmartPlant Enterprise will help us to manage multidisciplinary information and to maintain consistency among all involved disciplines along engineering development,” noted Vasconcellos.

“This will result in project consistency and enable us to avoid many problems during construction.

“SmartPlant Enterprise tools will also help us achieve the desired accuracy for material control during the acquisition phase to meet the project schedule and improve cost effec-tiveness overall.”

SmartPlant Enterprise provides ECM with a flex-ible system to accommodate inevitable changes faster and more accurately.

Industry customizationIn the metals and mining industry, workflow processes vary as ore characteristics vary. Also, unlike chemical plants or oil and gas operations, a processing plant for minerals requires a wide variety of equipment of dif-ferent types, shapes and systems for handling bulk solids material and slurry. Topographic factors play a very important role in the design of the facility. To adapt Intergraph’s suite of applications to the mining industry, ECM customized the SmartPlant Enterprise tools. ECM developed specific symbology for PDF and P&ID files, created a library for equip-ment and platework, customized reports that met clients’ requests or local market require-ments, and built a databank of specifications for electrical and piping materials, concrete, structural steel and instrumentation.

ECM distinguished itself early in the process of SmartPlant Enterprise implementation by

quickly combining its technical expertise in the development of mineral projects with the technology provided by Intergraph. In recog-nition of its achievements, ECM has received three Intergraph Golden Valve Awards:

n 2008 – 3rd Place, Animationn 2009 – 2nd Place, Rendering and Ray Tracesn 2009 – 2nd Place, Working Views

Local supportAs ECM moved to SmartPlant Enterprise’s integrated 3D environment, Intergraph’s Bra-zilian distributor SISGRAPH provided imple-mentation services and training. ECM spent four months training with SISGRAPH and then developed two pilot projects, which took about a year and a half. “Whenever we needed sup-port, we received it from Intergraph ... always on time,” according to Vasconcellos.

Migration adviceECM chose Intergraph for three main reasons: (1) the concept of a centralized database, (2) the availability of Intergraph technical support in Brazil and (3) system integration, which enabled the management of multidis-ciplinary information.

ECM listened to its clients in Brazil who wanted to use software capable of integrated

engineering as a prerequisite to project devel-opment. Having made the transition from developing projects in 2D to developing them in an integrated 3D environment, ECM offers encouragement and some advice to other companies contemplating that transition. ECM recommends this step-by-step process:

n Step one: Train the team

n Step two: Prepare the necessary customi-zations, with help from local Intergraph support, if needed

n Step three: Develop at least one pilot project that will enable you to address any difficul-ties that may arise as the transition proceeds

n Step four: Progressively enlarge your infra-structure to permit future expansions.

ECM purchased more licenses than it cur-rently uses and has already trained additional employees on the system. “We have bet that this technology will be part of future projects,” said Vasconcellos.

Ricardo Fornari serves as technical manager at SISGRAPH and is based in São Paulo, Brazil.

www.ecmsa.com.br

10 Insight Issue 27

The SNC-Lavalin Mining and Metallurgy (M&M) division is a world leader in its sec-tor, carrying out projects in the fields of alu-mina, aluminum, bauxite, copper, gold, iron ore, nickel, phosphate, potash, steel, zinc and other commodities. SNC-Lavalin’s global services range from scoping studies to full project implementation for some of the larg-est projects ever undertaken in the industry.

Most SNC-Lavalin M&M technical staff members have extensive practical operating backgrounds that complement their design and project man-agement skills and have often worked on the same projects together. SNC-Lavalin’s approach

to project execution and delivery embodies

strong project management, technological

excellence and quality assurance.

SNC-Lavalin has been active in Latin America

since the early 1970s and is one of the leaders

in project execution in the mining and metal-

lurgy sectors in Brazil.

SNC-Lavalin Minerconsult, founded in 1990 as

Minerconsult, became part of SNC-Lavalin in

2007. With approximately 1,000 employees and

revenues last year of approximately US$100 mil-

lion, SNC-Lavalin Minerconsult has developed

and implemented more than 1,000 projects in

the past 20 years. Major EPCM projects executed are the Barro Alto Nickel, Rio Paracatu Gold Expansion III, Juruti Bauxite and Alumar Alumi-num refinery projects in Brazil.

The experience won by SNC-Lavalin Miner-consult during this period provides a unique knowledge of mining processes, including a high level of technical service to its custom-ers. This level is recognized in Brazil and other countries in the region. Thanks to the experi-ence, talent and background of its local engi-neers, SNC-Lavalin Minerconsult performs large-scale and complex mining projects in Brazil, Malaysia, Peru and Argentina. The

CASE StuDy: SNC-LAVALIN MINERCONSULT

SmartPlant 3D Accelerates SNC-Lavalin Minerconsult Mining Project ImplementationIndustry leader manages projects more efficiently and increases productivity in record time

n By David Joffrion

11InsightQuarter 1, 2010

unique knowledge of its professionals and the global execution mindset require tools to help the company during the design stages to improve productivity and deliver the high-est engineering quality products and a global integration capability with all of the SNC- Lavalin divisions spread around the world.

SNC-Lavalin Minerconsult realized that there were limitations to its existing CAD systems to achieve its project implementation goals. To manage its projects more efficiently, increase productivity and better understand the needs of its major clients while remaining at the forefront of the volatile and ever-changing mining industry, SNC-Lavalin Minerconsult turned to Intergraph. SNC-Lavalin, an exist-ing Intergraph customer, was familiar with Intergraph’s user-friendly interface and easy-to-use tools. In addition, the software’s open architecture, utilizing commercial databases such as Microsoft® SQL and Oracle, was an attractive feature that helped ensure a versa-tile operating environment.

As part of the evolution process, SNC-Lavalin Minerconsult added Intergraph’s SmartPlant 3D and SmartPlant Review to its product suite. SmartPlant 3D is a next-generation, data-centric design system that provides cli-ents with the most productive, highest qual-ity, multi-discipline 3D modeling environment in the world for global multi-office execution

of mining projects. SmartPlant Review is the complete visualization environment for interactively reviewing and analyzing large, complex 3D models during engineering, con-struction and operations.

With approximately 100 users, the full train-ing on the new design tool took only four weeks. Because of the high competence level of the professionals and the user-friendly software environment, they were then ready for production.

With support from Intergraph’s Brazilian distrib-utor, SISGRAPH, as well as SNC-Lavalin’s Cana-dian and Chilean counterparts, the implemen-tation went smoothly in record time. Although there was no data migration involved, SNC-Lavalin Minerconsult did require some cus-tomization of catalogs, specifications, symbols and drawing templates, created by referring to customer documentation.

Now that the SNC-Lavalin Minerconsult team is up and running, it is using SmartPlant 3D as a design tool and SmartPlant Review to visualize the plant sections as well as review, design check and update construction status on its projects.

SNC-Lavalin Minerconsult has received full support from the SNC-Lavalin corporate team as well as many other group offices that have implemented the entire SmartPlant Enterprise

suite of tools, including SmartPlant Founda-

tion, presently on an Oracle/SQL platform. In

addition, the inclusion of SmartPlant Refer-

ence Data will help build and standardize a

global approach.

Taking advantage of local talents that exist

globally in SNC-Lavalin, the company’s work-

share environment has proven a great success

thanks to the group’s global commitment in

choosing SmartPlant Enterprise.

Although it is still too early to quantitatively

measure results and benefits from the new

applications in terms of reduced work time or

rework, SNC-Lavalin and its customers have

realized benefits in terms of discipline inte-

gration and engineering development. One of

the main reasons for choosing Intergraph and

the SmartPlant Enterprise engineering solu-

tions was the fact that there is an integrated

common database that eliminates duplication

of data. Using this integrated database with

concurrent engineering saves significant time

since multiple designers working on a project

can easily know which data have changed in

their environment.

Additionally, with rules-driven design, inter-

ference checking is continuous and a special

process is not needed to synchronize the

design. This automation of design reduces

not only the design time, but also provides

SNC-Lavalin Minerconsult professionals with

an online engineering coordination tool.

Looking to the future, SNC-Lavalin Miner-

consult hopes to integrate more Intergraph

SmartPlant tools into its product portfolio,

including SmartPlant P&ID, SmartPlant Instru-

mentation, SmartPlant Electrical and Smart-

Plant Foundation, to enable it to become a

premier full-service engineering, procurement

and construction provider.

David Joffrion is a contributing editor for Insight

based in Huntsville, Alabama, U.S.

www.minerconsult.com

12 Insight Issue 27

To meet the world’s demand for ore, facili-ties for mining, materials handling, process-ing and transportation must be designed and constructed faster than ever. As global mar-kets expand, the need to produce and trans-port raw materials around the world contin-ues to increase. Intergraph’s products for the metals and mining industry are designed to help meet these challenges.

SmartPlant 3D Materials Handling Edition, the newest addition to Intergraph’s Smart-Plant Enterprise engineering software suite, addresses the challenge of designing and modeling materials handling systems such as conveyors and transfer chutes in mining and other conveyor-intensive industries.

SmartPlant 3D Materials Handling Edition pro-vides the capabilities needed to design a bulk handling system and keep it as-built through-out its life cycle. It offers piping, HVAC, electrical raceway, structural, platework and mechanical equipment modeling tasks, as well as a speci-fication and catalog manager and a project

administration environment. A key feature is the ability to generate fabrication-level drawings in a single environment for an entire system. It also provides the ability to design and model sections of the system once, save them to a catalog and reuse the design in future projects.

Intergraph has developed its SmartPlant 3D Materials Handling Edition specifically with the needs of the metals and mining industry and bulk handling applications in mind. This engi-neering design solution coupled with Inter-graph’s proven SmartPlant Enterprise suite of construction and data management solutions offer an integrated, end-to-end approach to the creation, operation and maintenance of a plant asset over its entire life cycle.

Importance of the 3D modelIntergraph SmartPlant 3D Materials Handling Edition is reshaping the way plants are designed for the metals and mining industry. The solution provides an integrated design environment able to fully support and manage the complexities and scale of these plants. The solution offers

close integration among disciplines – structural, civil, heavy plant equipment, conveying systems and piping disciplines.

The use of a 3D model allows initial engineering designs to be reviewed earlier in the process by many levels within the owner’s operation. Plant operations and maintenance, for example, have ample time to make process improvement sug-gestions before completion of initial design and construction. This can greatly reduce the need for the owner’s field maintenance and opera-tion teams to spend months re-engineering portions of the plant to meet field needs.

In summary, early adopters of 3D models in mining report significant improvements in all phases of their projects:

n Improved accuracy of engineering deliverables, with drawing accuracy of more than 99 percent.

n Significant reductions in field rework during construction. Compared to an industry stan-dard of six to eight percent, field rework is less than two percent. This is a direct result of the ability to correct a problem in the

DID yOu knOW?: SMARTPLANT 3D MATERIALS HANDLING EDITION

Solutions for the Metals and Mining IndustryMeeting the goals of greater productivity and operational excellence

n By Taylor Cole

13InsightQuarter 1, 2010

model where it is faster and less expensive than correcting it in the field.

n Faster project execution. With improve-ments in engineering time and field con-struction time, projects reach completion faster, turning a pre-operation cost center into a revenue generator for the company.

Workflow-managed integrationEngineering data are a critical asset, and their value increases over time. At each stage of the workflow, more information is added, refined and linked.

From initial process flow diagrams that outline the preliminary processing method to be used, the project is broken down into functional boundaries; e.g., materials handling system, mill process or de-watering plant. These are further divided into functional areas. For example, the mill process would be divided into crushing/screening, SAG mill, ball mill, flotation cells and so forth.

Each of these functional areas is then detail designed by engineering and approved by the owner. As the functional areas are detail engi-neered, the volume of information grows expo-nentially to include engineering details needed for design and construction of the plant, as well as operating information for each component. This information is needed for commissioning and ongoing plant operations.

Ultimately, all information used for plant design, construction and commissioning is transferred to the plant owner who uploads it into the operating and maintenance systems to be used throughout the plant life cycle. The data now includes drawings of the entire plant, tag numbers to identify components, isometrics of piping runs, maintenance recommendations from original equipment manufacturers, oper-ating instructions, manuals and thousands of other pieces of information.

Engineering & Schematics Specialized SmartPlant Enterprise components also aid in the creation of a complex metals and mining plant. SmartPlant Enterprise Engi-neering & Schematics solutions provide the tools to design the installation with the asso-ciated power and control requirements. This improves access to data in support of ongoing

maintenance, thereby lowering the frequency and duration of maintenance events. Smart-Plant Enterprise Engineering & Schematics also enables the design of large prefabricated equipment and integration of significant power distribution networks.

SmartPlant Enterprise Engineering & Schemat-ics empowers process engineers to lay out the plant configuration in SmartPlant P&ID. This forms the basis for the detailed design in SmartPlant Instrumentation by the instrument engineers and designers, and for the power distribution system by the electrical engineers. Additionally, the P&ID will drive the physical 3D plant design by the piping department.

Managing information and change Metals and mining is a global industry. Part-ners from around the world collaborate on modern mining projects, exchanging infor-mation and making decisions. To ensure the success of such complex, multi-party proj-ects, decisions must be based on the best available information. And to make decisions that reduce exposure to error, risk and cost,

it is essential to employ a single set of tools

and a unified approach across the global

engineering enterprise.

SmartPlant Foundation is Intergraph’s engineer-

ing data and document management system,

application integration hub and information

portal – all in one. With SmartPlant Foundation,

project data can be replicated anywhere in the

world. As changes are made in one location,

they are propagated to other locations, with

all project team members working in a single,

concurrent environment. Also, SmartPlant Foun-

dation’s Web portal gives access to information

to project partners without the need for source

application tools on the desktop.

Modifications are inevitable during a plant’s life

cycle. What is critical is maintaining control over

changes made to valuable plant data. Changes

in one system – piping, for example – can easily

be managed in other systems – structural, for

example – without the need for lengthy design

reviews. The use of clash detection technology

makes these issues visible automatically and

highlights areas that must be addressed prior

to approvals.

Global outlookA number of analysts are projecting that by

2025, the need for metals globally will double.

Driving this future growth is the expectation

that developing economies in Asia Pacific, Latin

America and India will demand raw materials

for products that often signal a higher stan-

dard of living – automobiles, consumer goods

and computers. Mines and process plants will

be needed to meet this demand. The ability

to complete a project accurately and on time

will put owners in a position to capitalize on

these market demands as they arise. Inter-

graph plant automation solutions can help the

industry achieve higher production goals and

operational excellence.

Taylor Cole serves as vice president, Global Industries Group, Intergraph Process, Power & Marine. He is based in Huntsville, Alabama, U.S.

www.intergraph.com/metalsmining

Faster commissioning An Intergraph customer in Brazil was able

to complete commissioning of a brown-

field aluminum refinery much faster

through the use of a 3D model. Full com-

missioning of the expanded portion of a

plant – from first feed to full production

capacity – was completed in only 12 days.

By comparison, previous expansions took

90 days to complete. Both the owner and

the engineering company attributed this

cost-saving improvement to the adop-

tion of 3D modeling and a collaborative

environment throughout the project at

all levels of both companies.

Focus on the: Power Industry

n INDUSTRY PERSPECTIvE: POWER Magazine

n INDUSTRY PERSPECTIvE: Power Industry Roundtable

n CASE STUDY: Siemens AG Energy Sector

n CASE STUDY: IBERDROLA Ingeniería y Construcción

n DID YOU KNOW?:

SmartPlant Enterprise Power Solution (KKS-Enabled)

Dealing With a Changing EnvironmentThe power industry has changed dramatically from its early days to the present, particularly in the following areas:

Changes in the regulatory environmentIn the U.S., the major change is that licensing has gone from a two-step process – construc-tion license first, then operating license – to a one-step process that combines construction and operating licensing. Requirements are sta-ble and predictable, and we are able to license plants against a known set of metrics.

new standard plant designsFrom the days when each plant was unique and required a great deal of analysis to vali-date the design, we have moved into a world

where standard, identical plants can be built from pre-certified designs.

new construction methodsConstruction in the past usually meant multiple contractors, rampant change orders, limited scheduling tools and paper-based documenta-tion. Today, we see a turnkey EPC approach where the objective is to have 85 percent of the design completed before construction begins. New construction methods and modular tech-niques help minimize time and risk.

Owner operators with 30+ years of experienceAs the power industry has matured, we see a large, consolidated fleet of operators and a

capacity factor that has reached more than 90 percent. There is a high level of quality assurance and the industry has benefitted from a shift in the political landscape regarding nuclear power.

EconomicsMany plants were built in a time when inflation, interest rates and construction costs were high. Nuclear energy was viewed as an environmen-tal nemesis and the concept of the hydrocarbon footprint had not come into play. Now, inflation runs in single digits, interest rates are low and there is recognition of nuclear energy’s environ-mental benefits.

16 Insight Issue 27

Casey Stengel, the iconic manager of the New York Yankees during their glory years, was once asked to predict the winner of the upcoming World Series. His advice: “Never make predictions, especially about the fu-ture.” With great respect to Casey Stengel, we’re going to swing for the fences with five power industry predictions for 2010.

Expect one consistent result when an editor makes predictions for the coming year: most of the predictions will later be judged wrong. Granted, many of the predictions may still happen later than expected or some regula-tory body deflects the industry into another direction, but that doesn’t change the quality of the prediction. Also, specific predictions

may in retrospect be wrong but for all the right reasons. It is much like going to traffic court and pleading “not guilty, your honor, but I can explain why I did it.” So, judge my predictions as you like but remember I’m innocent until proven guilty in December.

Prediction 1: natural gas use reboundsLast June, the U.S. Potential Gas Committee (PGC) issued a report (tinyurl.com/mw9nh3) that estimated total U.S. natural gas reserves at over 1,800 trillion cubic feet, the highest in the committee’s 44-year history, and 40 percent above its 2006 estimate. John Curtis of the Colorado School of Mines, head of the PGC, said that the estimate “reaffirms the

committee’s conviction that abundant, recov-erable natural gas resources exist within our borders, both onshore and offshore, in all types of reservoirs.” Prices fell, reflecting the optimistic supply predictions. Exploration in shale deposits continued growing.

That’s a stunning figure – an increase of over 25 percent above previous estimates. The Energy Information Administration (EIA) defines “proved reserves” as “those volumes of oil and natural gas that geological and engineering data demonstrate with reason-able certainty to be recoverable in future years from known reservoirs under exist-ing economic and operating conditions.” In other words, they are real.

InDuStry PErSPECtIvE: POWER MAGAzINE

Power 2010: An Industry Looking for a DirectionPOWER magazine editor-in-chief makes five predictions

n By Dr. Robert Peltier, PE, and Kennedy Mai

17InsightQuarter 1, 2010

The supply optimism is good news for exist-ing and potential electric generators, as the projections, bolstered by successful drilling in shale, have resulted in dramatically lower natural gas prices. The most recent reports from the EIA found natural gas prices at the Henry Hub at $2.76 per million Btu. Futures prices at the New York Mercantile Exchange for September 2009 contracts were at $2.91 per million Btu. A couple of years ago, the NYMEX price was in the $9 range for short forward contracts (Figure 1).

In November, The Energy Daily (a sister pub-lication of POWER) reported that the North American Electric Reliability Corp. (NERC) has found that “Electric utilities are increas-ingly showing an ‘overwhelming’ preference for building natural gas-fueled plants, a trend that is expected to drive gas past coal as the dominant North American fuel for on-peak power production by 2011.” According to the newsletter, “NERC said both regu-lated utilities and merchant generators are increasingly favoring gas plants because the fuel has been discovered in more abundance and is cheaper than in the past. In addi-tion, gas plants are easy to site, can be built quickly and produce less carbon emissions than other types of traditional generation.”

Prediction 2: Electricity production grows in 2010

As we enter the second decade of the 21st cen-tury and a second year of avoiding an economic collapse, the U.S. business climate seems to have become more positive. A growing sense of cautious optimism is appearing. A mid-October survey by the National Association for Business Economics concluded that the largest recession since the 1930s Great Depression is over, and

economic growth is likely for the U.S. economy in 2010. The government announced that third-quarter 2009 economic growth hit 3.5 percent, the first positive growth in five quarters, sug-gesting an end to the recession (Figure 2).

The implications for electric generation are mixed. Advocates of renewable generation appear not to have made a convincing economic case in the market. But they have politically. Coal and nuclear continue to take a political battering at the hands of the renewables advo-cates. The politics of energy appear not to have factored in to the new implications of natural gas. The need for new generation to supply load appears less urgent than in previous years.

A cool 2009 summer in most of the U.S. helped to reduce air conditioning load. Net electric genera-tion dropped 6.8 percent from June 2008 to June 2009. That was the 11th consecutive month that electric generation slid downward, compared to the same month in the prior year. According to the EIA, demand for electricity has fallen since the economy tanked in 2008. The demand down-tick is the first since the EIA has accumulated these statistics, when it was created in 1977.

Prediction 3: Washington remains deadlockedAfter a year with a new political crew in Wash-ington – Democrats in the White House and controlling both the House and Senate – how

figure 1. Gas prices stabilize in 2010 as demand increases. The U.S. Energy Information Administration (EIA) predicts natural gas prices will fluctuate less and be more predictable in the future given the significant increase in gas reserves.

Source: EIA November 2009 Short-Term Energy Outlook

figure 2

figure 2. Increase in electricity sales resume in 2010. After a two-year contracting market, total electricity consumption in the U.S. in 2010 is expected to increase.

Source: EIA, November 2009 Short-Term Energy Outlook

figure 1

20

25

15

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0JAN 2005

JAN 2006

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JAN 2009

JAN 2010

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CHA

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A N N U A L G R O W T H

C O N S U M P T I O N

1998

3.7%

1999

1.7%

2000

2.8%

2001

-0.7%

2002

2.1%

2003

0.8%

2004

1.2%

2005

2.8%

2006

0.2%

2007

2.8%

2008

-1.6%

2009

-3.6%

2010

1.6%

F O R E C A S T

18 Insight Issue 27

has the political landscape for electric genera-tion changed? It’s not clear. Democrats have said they want substantial reforms in the way the nation addresses energy, including the alleged specter of climate change. The party, including the Obama administration, is push-ing energy legislation in Congress that appears unlikely to be enacted this year and probably not next year.

Complicating the administration’s policy agenda, the political clock has already started ticking toward the 2010 mid-term elections, when all of the U.S. House and a third of the Senate seats are up for election. Traditionally, the party in power loses seats in off-year elec-tions. The Obama administration likely will take heroic steps to prevent that outcome, particularly to restore the Democrats’ 60-40 margin in the Senate, where it takes 60 votes to avoid a filibuster. Ducking a filibuster is a prerequisite for passing Senate legislation in these days of total partisan warfare.

In that context, what has changed since 2009 when it comes to energy legislation and the economic prospects for energy develop-ment? Paradoxically, very little. The admin-istration promised new directions in energy, with an emphasis on controlling greenhouse gas emissions and increasing energy effi-ciency, without much in the way of specif-ics. Controlling carbon dioxide from power plants is just not on the voter radar screen overshadowed by bread and butter issues such as the economy, jobs and home fore-closures. If legislation to control greenhouse gas emissions doesn’t pass in early 2010 (and we don’t expect it to) then don’t expect much progress when legislators return home to kickoff another campaign season.

Prediction 4: the pace of new nuclear remains slowNuclear power remains the last best hope for zero-carbon emissions from baseload generat-ing plants and was many analysts’ early pick for a generating revival in the first decade of the 21st century. If one accepts the conventional view of climate change, the rational case for nukes appears unassailable. If you want low-carbon generation, you must go nuclear.

The first decade of our new century has passed. After years waiting for the nuclear renaissance, it doesn’t look as if the second decade will bring the nuclear industry closer to revival. Indeed, the horizon may be reced-ing. In the U.S., we are into the second decade of the 21st century, waiting for the nuclear renaissance, after the market collapsed in the 1970s. Waiting and waiting.

Nuclear power plants won’t pick up U.S. gen-erating market share in 2010, by all accounts.

That’s despite prior federal government policy aimed at jump-starting new nuclear genera-tion, including allegedly streamlined federal regulations and a longed-for candy jar of addi-tional subsidies, such as major loan guaran-tees, pledged in the Republicans’ Energy Policy Act of 2005. Those have yet to materialize.

Some in the Obama administration and Congress are contemplating additional loan guarantees and other nuclear subsidies, to be included in pending climate change

InDuStry PErSPECtIvE: POWER MAGAzINE

19InsightQuarter 1, 2010

legislation. Arguing for $50 billion in addi-

tional federal loan guarantees, Exelon CEO

John Rowe told a Senate committee in late

October, “Deployment of new nuclear plants

simply will not happen, given the large up-

front capital costs, without a much more

robust federal loan guarantee program than

currently exists.” There doesn’t seem to be

much enthusiasm on either side of the parti-

san aisle for committing that kind of money

to nuclear power.

Given regulatory uncertainty and the condi-tions of current capital markets, no rational investor is likely to commit major private-sector resources to building new nuclear plants. Even with much larger federal loan guarantees, it isn’t clear that Wall Street will commit the capital necessary to build units at $8 billion to $10 billion a pop and grow-ing, according to the latest estimates.

There is also the specter of a backlash against nuclear utilities and their potential “windfall” profits from legislation such as Waxman-Markey becoming law. Many of the emissions allowances, under Waxman-Markey, would be distributed according to historic genera-tion in addition to historic emissions. Distrib-uting carbon allowances to utilities for their nuclear generation is troubling.

During a recent investor conference call, John Rowe, chairman and chief executive of Exelon, described his firm as “the best-positioned com-pany in our industry to deal with a carbon-constrained world. Our carbon density, mea-sured in tons of CO2 per megawatt hour, is the lowest of all the generating companies.”

The reason for Rowe’s exuberance is not difficult to determine. Investment analysts at Bernstein Research project that Exelon’s stock price could reach $59 next year from its current price of about $47. That means that Exelon’s stock price could possibly increase over 30 percent should climate legislation become effective.

Prediction 5: king Coal retains his crownThen there is coal, the Rodney Dangerfield of generation: It just doesn’t get any respect. Surprise: New coal-fired projects, unlike the nukes, are actually under construction in the U.S., and some are likely to start pushing out power soon. Despite deep political opposi-tion from environmentalists and competing technologies, coal still generates more than half of U.S. electricity.

According to the Department of Energy’s National Energy Technology Laboratory, in June 2009, 36 coal-fired plants were either under construction (23), near construction (4), or permitted (9), for a total of 19.4 GW of new capacity. That’s in the face of a heavy assault

on coal by environmental groups concerned

with carbon dioxide emissions. Also joining

the no-coal chorus in Appalachia are local

opponents of mountain-top mining and others

challenging coal ash waste disposal at power

plants, in light of the Tennessee Valley Author-

ity’s 2008 major ash dam collapse.

Will generating and anti-pollution technolo-

gies impact the coal equation? Industry hype

about coal claims it can be “clean,” citing

as-yet-unproven technologies for gasification,

carbon capture and CO2 sequestration. At the

same time, environmentalists claim that “clean

coal” is an oxymoron, akin to “military intel-

ligence.” Neither side has made its case. Nor is

it likely the verdict will come in 2010.

Look for major growth in funding of carbon

capture technology research in 2010. This tech-

nology is a long way from commercial develop-

ment and may slow investment in further large-

scale coal plant projects in the year ahead.

There you have it – five predictions for the

power industry in 2010. I don’t expect you to

agree with all five predictions but I suspect

we’ll be spot on when we look back a year

from now. In the meantime, keep our predic-

tions in the proper perspective. In baseball,

one hit in every three trips to the plate earns

you a place in Cooperstown. Just ask Casey.

Dr. Robert Peltier, PE is editor-in-chief of POWER

and COAL POWER magazines. Kennedy Maize

is executive editor of MANAGING POWER mag-

azine. This article contains excerpts from their

2010 Industry Forecast published in the January

issue of POWER.

www.powermag.com

www.coalpowermag.com

www.managingpowermag.com

20 Insight Issue 27

InDuStry PErSPECtIvE: POWER INDUSTRY ROUNDTABLE

Power Industry Roundtable Discusses Changes and ChallengesIndustry executives look at the regulatory environment, the processes for completing a project, responsibility issues and the technology available today

n By Jeannie Robison

The participantsModerator Joseph Morray, Jr., is president

of Trinity Technologies, U.S., a business con-

sulting and technology solutions company

that has led some of the largest implementa-

tions of plant information systems in the U.S.

Steven k.W. yu, general manager, Prod-

uct Engineering New Build CANDU Project,

AECL, Canada, is responsible for design

and safety analysis for the new ACR1000

plant and the New Build CANDU program.

Bill rice, director, Systems, Components

and Configuration, Westinghouse Electric

Company, U.S., has 29 years experience at

Westinghouse Electric in design, servicing

and construction of nuclear power plants.

He is heavily involved in the AP1000 proj-

ects in China.

roger Perry is IMS director for the

AP1000 program within The Shaw Group

Inc., U.S., a multi-disciplined company

offering services in design and engineer-

ing, construction and construction man-

agement, fabrication of industrial piping

systems and project management.

Dan Milroy is information manager for

Exelon Corp., the largest electric and gas

utility in the U.S. He was responsible for

implementing Exelon’s document manage-

ment project across its Midwest fleet. He is

involved in new plant licensing, specifically

the Texas Project.

keith Denton, vice president, Global Power

Industry, has been with Intergraph since

1992. He was a leader in the rollout of

SmartPlant 3D. Before Intergraph, he worked

with Georgia Power in plant construction.

In a roundtable discussion at Intergraph 2009, five power industry executives tackled the chal-lenges facing their industry. The executives were a cross section of EPCs, owner operators, nuclear steam supply system (NSSS) vendors and technology vendors.

All agreed we are in a time of substantial change in the commercial nuclear power mar-ket. For example, there are more than 30 new nuclear plants being considered in the U.S. right now. These new plants will be designed, pro-cured, constructed and operated with advanced software for 3D modeling and for managing engineering information.

Moderator Joseph Morray, Jr., Trinity Technolo-gies, asked the five members of the roundtable a series of questions related to these major changes in the industry.

Are licensing procedures very different from country to country?

In the U.S., the one-step licensing process has become standard. In other parts of the world, some regulatory agencies still require separate licensing for construction and for operating, but discussions about a combined licensing process continue. Steven Yu of AECL noted that in Can-ada, where owner operators must still have an operating license, regulators are talking about going to a combined licensing process. In site application licensing, the technique of using an “envelope” of site parameters for different designs is becoming a standard.

Bill Rice of Westinghouse noted that, for the one-step licensing process to mitigate risk, an automated and interoperable configura-tion management system is a key requirement. Because of the nuclear regulatory environment, the owner operator does not want control and responsibility for configuration management until there has been a clean, clear handoff from

the EPC. If responsibility is not clear, questions arise about who is responsible for document-ing change if change occurs, for example, in the middle of the handover.

“Are there standards for handing over data from a consortium to the O/O?,” Keith Denton, Intergraph, asked. Rice noted that the Electric Power Research Institute (EPRI) is leading an effort to develop a new nuclear plant infor-mation handover guide. The guide will pro-vide a strategy for developing an information handover plan that would be used across all organizations participating in design, review and construction of a new plant.

Moderator Morray asked, “How has docu-mentation changed? What do you take before the NRC?” Yu replied, “Data to answer these questions: what’s the basis of design and how can you confirm that your model is what you will build?” The model becomes all important because it provides information about every component in the plant.

Thinking has become longer range, more stra-tegic. This has caused a shift. The old view was that it was a foot race to get the documentation completed and in front of the regulatory com-mission. “Don’t design one thing more than you have to until there’s a purchase order in place,” was the mantra. Now, the licensing is not just to sell, but to install and operate the plant.

We have moved from a time when original plant P&IDs were drawn in ink on cloth to a time when everything is in the 3D model. How has that change affected project processes?

Roger Perry of Shaw noted that the main differ-ence in work processes for the Shaw Group is in configuration controls, with the most stringent controls around documents. For example, he noted that data and documents are constantly

going between Westinghouse and Shaw, with interfaces clearly defined. He described how in future projects, consortiums might set up an infrastructure separate from the companies’ domains – a private network with a data cen-ter outside to support it – as a way to promote project-by-project collaboration.

What is the information basis for the AP1000 and how much harmonization between your EPC and the nSSS vendors is required to make this thing work?

“Lots,” according to Rice. Westinghouse has everything except the light switches in the 3D model. And if it’s in a module, then everything is in the model, regardless of size. More than 99 percent of the entire plant is modeled.

“We use the integrated SmartPlant products and we’re also integrating our own engineering databases,” said Rice. “Our internal debates are around standardizing on a toolset, about what standards will be used in the catalog.”

Is the purchasing-procurement process influenced by standard plant designs?

Yu suggested that the switch to modular designs influences how the supply chain is viewed. For recent projects in China and Romania, AECL has generated construction packages that empha-size volume supply. In gearing up for a project in Ontario, the company has issued some sample module packages to vendors. Perry added, “An obvious benefit is the leverage it gives with suppliers when they know that there will be 10 units, not just one, requiring this same compo-nent. Vendors become very interested in volume like that.”

Is the way that the nSSS is documented changing because of the tools you now have?

Rice answered that the basic concept of how you design the NSSS has not changed much, but how fast you can do it and how fast you can make changes has been revolutionary. “Speed, productivity and how fast you can accommo-date change are the biggest changes this time around,” he said.

the ability to control what information gets changed is critical to the overall process. What is the role of the

information tools in managing that process?

“The tools are subservient to the process,” noted Dan Milroy of Exelon. “In managing what information gets changed, we use the technol-ogy to hand the files around. But the process is still the same. People are interacting through the file in deciding whether the change is okay. Is it just for this reactor? Is it a fleet change? If so, how do I document it with the design control document with the NRC?”

With a distributed control system (DCS), how do you keep up with an evolving design and ensure that what you are delivering is what the design called for?

“You must get into configuration manage-ment vigorously,” Yu noted. Processes must be in place to make changes. Milroy suggested that when changes are made – trying to bring the plant online earlier than planned, for example – then using a simulator may be the way to test the changes to the critical path. Also, using a simu-lator would test and validate existing operating procedures. For Exelon, simulators continue to be an important watch area as they review alterna-tive technologies.

Aside from learning about different countries’ regulatory processes, what have you learned about localization from operating in a global marketplace?

Sometimes a standard part will not be avail-able in the country where the plant is being built. Although the goal of working from a standard design is to limit customization, that is not always possible. As individual vendors come forward with their version of a valve, for example, it has to be reconciled to the model and documented.

Another problem is the language barrier, espe-cially related to training. Yu said that AECL’s solution has been to train the trainers locally. Those local trainers, who speak the language and know local suppliers and customs, can then train the employees at the plant.

five years from now, what challenges will the nuclear power industry face?

Engineering offices are still focused on central-ized collaboration. In the next decade, there

will be a push for the virtualized office, Perry

noted. He also suggested, “We’ve seen big

strides in change control. We need even better

tools to manage and document the relationship

between the standard design of a plant and the

pieces of that design that must be different for

the local environment.”

“Because we’ll be buying equipment for our

plants on the global market,” Milroy observed,

“our biggest challenge may be to demonstrate

to the NRC that every piece of equipment going

into the plant has all the pedigree it needs.”

Denton said he hopes to see a generation of

young engineers who embrace new technology

and enlightened regulators who are willing to

give some quarter to unleash the capabilities of

the technology.

Rice looked in his crystal ball at 2014 and pre-

dicted there would be two AP1000s in opera-

tion. There would be four active sites in the U.S.

where AP1000s were being built, and engineers

would be working hard on the second wave of

AP1000s, perfecting the next standard design.

Yu opined the maturing of engineering organi-

zations and predicted engineers will continue

to be in demand throughout the world. There is

much engineering to be done and young engi-

neers should tap into the wealth of experience

available from mentors.

Jeannie Robison is a contributing editor for Insight

and is based in Huntsville, Alabama, U.S.

www.aecl.ca

www.exeloncorp.com

www.shawgrp.com

www.westinghousenuclear.com

21InsightQuarter 1, 2010

22 Insight Issue 27

By any measure, Siemens AG is a global pow-erhouse. For 163 years, the company has been synonymous with technological innovation and operational strength. In 2009, Siemens reported revenues exceeding US$114 billion, with more than 400,000 employees in some 190 countries.

Today, Siemens’ business activities are bun-dled into three main sectors: Industry, Energy and Healthcare. It is into the Energy Sector that Siemens recently introduced SmartPlant 3D, with very beneficial results.

Serving the entire energy conversion chainSiemens’ Energy Sector offers products, ser-vices and solutions for power generation, transmission and distribution, and for oil and gas production, conversion and transport. Within the sector, there is also a growing focus on the dynamic renewable energy market, with emphasis on wind turbines, photovoltaic proj-ects and solar-thermal power plants.

According to Energy Sector CEO Wolfgang Dehen, 2009 was a “year of major orders and trailblazing innovations ... We set new records for profit and revenue.” In fiscal 2009, with some 85,000 employees in 90 countries, Siemens Energy generated revenue of $37.6 billion and profit of $4.8 billion.

SmartPlant implementation in Siemens EnergySiemens’ far-sighted willingness to embrace innovative technologies has been a source of the company’s strength since its founding in 1847 by the inventor of the pointer tele-graph. Siemens continually examines every business unit to make certain it is using the best technologies available to stay competi-tive, profitable and nimble, a challenge for such a large corporation.

Siemens’ vision for its plant engineering frame-work required a change in the engineering

execution process. In the old environment, most tools were not integrated, data storage was decentralized, much of the transfer of data was on paper and the environment was “organi-zation-oriented.” The company wanted a new environment to modernize its engineering and communication processes by introducing inte-grated tools, centralized data storage, auto-mated data transfer and a “process-oriented” environment. The strategy for realizing this vision of an integrated engineering environment was to implement SmartPlant Enterprise engineering software at Siemens Energy Solutions.

the SmartPlant Enterprise business caseIn making the business case for implement-ing SmartPlant Enterprise throughout the engineering enterprise, Siemens believed it would derive benefits not only in engineer-ing and data management, but also in time and cost savings and quality improvements.

Siemens Energy Sector Implements SmartPlant 3DReduction in time reported by approximately 150 users in multiple disciplines

n By Guenter Mauss

CASE StuDy: SIEMENS AG ENERGY SECTOR

23InsightQuarter 1, 2010

As part of the business case for SmartPlant implementation, Siemens also looked forward to savings in per-project hours among the dis-ciplines – process, civil, electrical, mechanical and 3D modeling. This, of course, would lead to greater ROI.

Expected benefits of integrated toolsOne anticipated benefit of migrating to a system based on a central data pool was that it would provide a way to streamline data exchange among all the disciplines involved in a project. This easier exchange of data could then enable integrated workflows across disciplines and processes, including business processes beyond design.

Working in an integrated tool environment would also enable controlled data sharing, improved data management and enhanced data integrity. Siemens also anticipated one more benefit from selecting SmartPlant spe-cifically – a software partner who was acces-sible and whose global reach ensured sup-port of Siemens’ multinational projects.

SmartPlant implementation and resultsSince 1996, Siemens had used Intergraph’s PDS, and continued to use it for all projects until October 2008. Also in 1996, the com-pany began using SmartPlant Review for design reviews by clients and management. SmartPlant Review supports the entire plant

design workflow and natively views PDS files, as well as SmartPlant files.

Starting in 2006, the company began to use SmartPlant P&ID and SmartPlant Foundation information management solution for all new combined cycle power plant projects. And in 2007, Siemens began using SmartPlant 3D, Intergraph’s advanced design software, for three execution and three reference plant projects, followed in November 2008 with full release of the software for all new projects.

SmartPlant 3D discipline trainingMost of the 150 Siemens engineers who became SmartPlant 3D users were experienced in PDS. The SmartPlant users were trained in the following disciplines, including many who are cross-trained:n Piping and pipe supportsn Structuraln Civiln HVACn Racewayn Equipmentn Drawing and reports.

Did SmartPlant 3D save time and money?In a word, yes! In evaluating SmartPlant 3D’s performance of modeling tasks, Siemens found the greatest reduction in project hours in mod-eling piping (39 percent time savings) and piping supports (26 percent savings). The next

most significant work-hour reductions were in HVAC (22 percent savings), structural (16 percent savings) and equipment modeling (8 percent savings). These results were based on a comparison of SmartPlant 3D to PDS, Inter-graph’s highly respected first-generation plant design software, which Siemens used for 12 years before implementing SmartPlant 3D.

next goal? Comprehensive use of SmartPlant EnterpriseSiemens has exhaustively tested SmartPlant 3D, with very satisfying gains in productivity. Based on these results and the company’s previous experience with other SmartPlant applications and with PDS, Siemens has set a new target – the comprehensive use of SmartPlant Enterprise.

With regard to its engineering tools portfolio, Siemens plans a complete migration to Smart-Plant 3D. So far, it has completed the migra-tion for reference power plants and combined cycle power plants. In mid-2010, it will com-plete the migration for steam power plants and conventional islands.

In work processes, the company anticipates integration of SmartPlant in the entire Plant Engineering operation by mid-2010. And in regard to development and upgrades, Sie-mens Energy Sector’s plans call for the com-plete integration of SmartPlant throughout the entire engineering process. The use of Global Workshare and Catalog Workshare have been completed, as has the V2009 SP1 upgrade for SmartPlant 3D. Further modularization, con-figuration and automation will follow.

Werner von Siemens, the company founder, remarked in 1857, “In critical situations, deci-sive and vigorous action is nearly always the best strategy.” Following that axiom, Siemens has aggressively pursued new markets with innovative technologies, now including the SmartPlant Enterprise family of solutions.

Guenter Mauss serves as vice president, Central & Eastern Europe, Intergraph Process, Power & Ma-rine. He is based in Frankfurt, Germany.

www.energy.siemens.com

SmartPlant 3D Introduction in Siemens Energy Solutions

APRIL2006

NOVEMBER2006

APRIL2007

SEPTEMBER2007

NOVEMBER2008

END PILOTPROJECT

FIRSTPROJECT

SECONDPROJECT

THIRDPROJECT

FULL RELEASE OFALL NEW PROJECTS

V7 V7.2 V7.3 V7.4V7.1

CONTINUOUS IMPROVEMENT OF SMARTPLANT 3D ■ Performance, stability, functionality ■ Skills and experience of user

EVALUATION OF SMARTPLANT 3D BENEFITS

24 Insight Issue 27

IBERDROLA Ingeniería y Construcción (Engineer-ing and Construction), established in 1995, has become one of the world’s leading energy engi-neering companies. With active projects in more than 25 countries and a project portfolio val-ued at more than US$3.3 billion, IBERDROLA is realizing increased activity from a strategy shift to target the creation of engineering and con-struction of power generation, distribution and control facilities.

Heavily involved in large nuclear and renewable energy projects, IBERDROLA’s services also include project management, engineering, sup-ply, construction and commissioning, turnkey projects and operational support. IBERDROLA has approximately 2,500 employees. Headquar-tered in Spain, the company has subsidiaries and branches in another 22 countries.

Integration is the keyIBERDROLA began implementing Intergraph solutions in 2003, when the landscape was ripe for expanding its business into new mar-kets. The company wanted to execute inter-national EPC projects much like the ones it had in Spain, and the challenge was to do this while saving time and money in execu-tion in spite of the distance and geographical distribution of its international customers.

To access international markets, IBERDROLA knew it must be more competitive. And, to be more competitive, it focused on one goal – integration. IBERDROLA understood the suc-cess of an EPC project depended in large part on the integration of all the components in the project. In effect, this meant coordina-tion between all the disciplines involved in the life cycle of a power plant, from engi-neering to commissioning.

Realizing the Power of IntegrationSmartPlant Enterprise helps IBERDROLA grow operations around the globe

n By David Joffrion

CASE StuDy: IBERDROLA INGENIERÍA Y CONSTRUCCIÓN

We specifically chose SmartPlant 3D because of its powerful global workshare and automation capabilities. fernando torres System Manager, IBERDROLA Ingeniería y Construcción

25InsightQuarter 1, 2010

Within each of its EPC projects, many groups are involved – subcontractors, engineering, procure-ment, logistics, construction and commission-ing. Managing the data flow and information is critical in this environment. All the groups have access to view and edit data, and with the Smart-Plant Enterprise solutions, the workflow operates smoothly and seamlessly.

The firm has also been able to avoid conflicts of information between disciplines, preventing duplication of data and guaranteeing modifica-tions are done in real-time and received across the entire workshare.

“We chose the Intergraph solutions because, as a company, it has provided us a secure implemen-tation with excellent technical support,” said Fer-nando Torres, system manager at IBERDROLA.

“Intergraph has helped us evolve our func-tionality toward a more user-friendly environ-ment, and we have experienced great per-formance in our engineering and 3D design efforts. We specifically chose SmartPlant 3D because of its powerful global workshare and automation capabilities.”

Standardizing on SmartPlant 3DFor its initial implementation, IBERDROLA chose Intergraph’s PDS, SupportModeler, SmartPlant P&ID and SmartPlant Instrumentation for its design and engineering functions. SmartPlant Review and SmartPlant Explorer were used to access information for visualization purposes. However, for its goal of system integration, IBERDROLA decided it made no sense to start that process while it was still using PDS and SupportModeler, so it began the migration from these solutions to SmartPlant 3D, Intergraph’s next-generation, data-centric design solution.

IBERDROLA completed implementation of SmartPlant 3D in early 2008, and continued its use of PDS and SupportModeler only on proj-ects that began before then. SmartPlant 3D provided increased functionality, design speed, and better performance on power plant design projects. In the latter half of 2008, IBERDROLA began the implementation of SmartPlant Foun-dation, and in 2010, it will begin the integration with the SmartPlant Foundation project docu-ment management tool.

Dual project environmentsIBERDROLA breaks down its EPC projects into two scenarios – Environment of Engineering and Project Management.

The Environment of Engineering contains almost the entire Intergraph SmartPlant Enter-prise suite of solutions and its integration with SmartPlant Foundation. For IBERDROLA, the key is to keep the “know-how” within the com-pany. This means all of the subcontractors and engineering companies work with their tem-plates, procedures and specifications, and all the designs are made by remote access using Citrix. Using the same systems, architecture and working models, everyone involved in the project will work with a common model. It is within this environment that SmartPlant Instru-mentation, SmartPlant P&ID and SmartPlant 3D are used for designing process diagrams, con-struction drawings, purchasing counts, design reviews and checking assemblies.

The Project Management environment is where IBERDROLA accesses and integrates all of the value-added products within the EPC projects. Connections to the enterprise and resource planning (ERP) system running SAP, the bill of materials system running BDU, the document

management system running SmarTeam, the planning system running Primavera, and the visualization system running SmartPlant Review all reside here. All are strategic disciplines in IBERDROLA’s EPC projects. For example, the integration between SmartPlant Review and Primavera empowers IBERDROLA to revise the main sequences of project construction sched-ules, correct mistakes and make improvements in the early stages of a project.

Internal group aids implementationTo help with the implementation of the Inter-graph solutions, IBERDROLA has an Architecture and Technology (ARTE) department responsible for, among other things, testing new software and configuring new products. When the prod-ucts are “developed and proven,” ARTE trains the respective business area within IBERDROLA on the new application and provides technical support, if necessary.

This methodology was quite helpful for IBERDROLA. As IBERDROLA added new prod-ucts during the software implementation pro-cess, the ARTE team received the training and then, in turn, provided it to the IBERDROLA application teams. One exception to this was for SmartPlant 3D, where the whole design application team received training together with ARTE.

To maximize software performance for the company’s implementation, some customiza-tion was required, such as adding properties to objects, creating libraries, configuring out-puts (reports, drawings, isometrics, etc.) and establishing a methodology to work with these tools for its projects. Once the cus-tomization was complete, IBERDROLA quickly experienced such benefits as reduced learn-ing curves, expedited design times and the ability to reuse designs. These benefits, in turn, have resulted in increased productivity throughout the enterprise.

David Joffrion is a contributing editor for Insight and is based in Huntsville, Alabama, U.S.

www.iberdrolaingenieria.es

Products usedn PDSn SupportModeler™n SmartPlant 3Dn SmartPlant P&IDn SmartPlant Instrumentationn SmartPlant Reviewn SmartPlant Foundation

Key benefitsn Short product learning curve; reduced

design times and reuse of designs

n System integration helps to prevent con-flicts of information between disciplines

n “Environment of engineering” enables all subcontractors and partner engineering companies to work within IBERDROLA’s templates, procedures and specifications

26 Insight Issue 27

Engineering data are a strategic asset that must be available across all phases of the plant life cycle. To address this need for data access, SmartPlant Enterprise Power Solution – an inte-grated suite of applications – provides the tools to create, capture and maintain engineering data throughout the design and operation life cycle of a plant. Now, to further enhance this suite of applications, Intergraph introduces a product that delivers out-of-the-box Kraftwerk Kennzeichen System (KKS) integration and SmartPlant Reference Data-driven specifica-tions for SmartPlant P&ID.

SmartPlant Enterprise Power Solution (KKS-Enabled) is tailored to the specific needs of the power industry, especially the need to man-age change. The solution makes it possible to broaden and enhance communication and collaboration among EPCs, owner operators,

regulatory agencies, nuclear reactor suppliers,

other suppliers and global industry leaders. It

also provides a way for companies to increase

productivity, accelerate projects and enhance

global worksharing.

For EPCs and owner operators to plan, build

and operate modern power plants with effi-

ciency and safety, it is essential to have a

common language – a standardized system

for identification and classification. KKS

libraries provide that system.

An integrated solution with kkS logic

KKS libraries are recognized as the industry

standard for consistent and systematic clas-

sification of power plants. The KKS method of

identification is used increasingly in all sectors

of engineering today – civil, mechanical, electri-

cal and control/instrumentation engineering.

Intergraph is the first company to receive per-

mission from VGB PowerTech e.V., the indus-

try association that issues guidelines for the

development, construction and operation of

power plants, to preconfigure its solutions

with KKS standards. By delivering predefined

KKS content for SmartPlant Enterprise Power

Solution, Intergraph enables clients to ben-

efit from the software’s existing capabilities

and expedites the engineering process for

those clients involved in KKS-centric power

projects and plants.

Managing change

Technical data are the most dynamic compo-

nents of any plant. Over time, many changes will

occur in, for example, the operating conditions

of a plant, the manufacturer of a pump or the

diameter of a pipe. Managing these changes is

SmartPlant Enterprise Power Solution (KKS-Enabled) Benefits Both EPCs and Owner OperatorsAccelerate projects and facilitate regulatory compliance

n By Rick Allen

DID yOu knOW?: SMARTPLANT ENTERPRISE POWER SOLUTION (KKS-ENABLED)

27InsightQuarter 1, 2010

difficult, and keeping a paper trail that can with-stand regulatory scrutiny is essential.

Intergraph’s solution suite provides a way to manage the configuration of data early in a project. This, in turn, can cut the time to begin-ning plant operations and minimize handover costs by eliminating the need for extensive checking of information and manually inputting it into another system. For KKS-centric projects, the preconfigured KKS content means an accel-erated return on investment.

regulatory complianceBecause verifying data accuracy is crucial for regulatory compliance, Intergraph’s solution for validation, transformation and loading of data makes it possible to manage the import of data from multiple sources. The imported data are subjected to rigorous quality control before any are extracted for loading into target systems, whether Intergraph solutions or third-party appli-cations. This process helps demonstrate project compliance with regulatory requirements and corporate best practices.

Integration across disciplinesIntegration of data across systems for design, procurement, maintenance management and reliability can save money and maintain con-tinuity from design to operations. The data is input just once. And, because the data reside in a single database, if a change is made in the database, it is automatically updated in

other areas permitting enhanced enterprise-wide and inter-company collaboration to reduce implementation costs and risks.

Handover of dataData handover is a formidable task. It gen-erally involves the transfer of thousands of documents and millions of individual data items from suppliers and contractors to the owner operator. In the case of large CAPEX projects, it is not unusual for the handover process to cost more than US$15 million and take up to a year.

SmartPlant Enterprise Power Solution helps streamline the process and promotes efficient data handover. The solution also enables the reuse of data for follow-up projects, whether in the existing plant or proposed for a new plant. This reuse of data is an essential part of the power industry’s move toward stan-dard plants built from pre-certified designs.

Components of an innovative solutionIntergraph’s SmartPlant Enterprise Power Solution offers a powerful portfolio of plant automation applications that can be deployed individually or as a flexible, integrated enter-prise solution. The modular architecture of SmartPlant Enterprise Power Solution enables organizations to choose any of the products in the suite, knowing that in the future, they can integrate any of the other products into their plant design when they are ready. The

KKS-Enabled version of SmartPlant Enter-

prise Power Solution is the next logical step

for KKS-centric power projects and plants.

The components of SmartPlant Enterprise Power

Solution have been widely adopted in the

power industry:n SmartPlant 3Dn SmartPlant Foundation n SmartPlant P&IDn SmartPlant Instrumentation n SmartPlant Electrical n SmartPlant Reference Data.

In addition, the scope of the KKS-Enabled Solu-

tion includes the following:n KKS-compliant naming rules and properties

for SmartPlant 3Dn Libraries that feature DIN equipment, hang-

ers and supports and cable catalogs for

SmartPlant 3Dn KKS integration via SmartPlant Foundation

- Typical KKS-based plant breakdown

structure (PBS)

- PBS mapping for SmartPlant Engineering

Manager (SmartPlant P&ID and Smart-

Plant Electrical)

- PBS mapping for SmartPlant 3D

- KKS-based schema extensions (Smart-

Plant Foundation)

- SmartPlant P&ID tool mapping extended

to KKS properties

- SmartPlant Electrical tool mapping

extended to KKS properties

- SmartPlant 3D tool mapping extended to

KKS propertiesn Reference data integration (SmartPlant Refer-

ence Data and SmartPlant P&ID)

- SmartPlant P&ID internal catalog for

specifications and components managed by

SmartPlant Reference Data

- Component and specification data management.

Rick Allen serves as senior vice president, Global

Industries, Intergraph Process, Power & Marine.

He is based in Huntsville, Alabama, U.S.

www.intergraph.com/power

28 Insight Issue 27

Newsbytes

I n D u S t r y

SmartPlant Construction Now AvailableSmartPlant Construction is now available. The SmartPlant Enterprise software module was cre-ated specifically for process, power and marine firms to more efficiently plan and manage plant, ship and offshore construction, resulting in increased productivity, accelerated project completion, and reduced risk. By seamlessly integrating engineering, procurement, fabrica-tion and site materials, SmartPlant Construction facilitates improved work planning, efficient information exchange for better communication and enhanced engineering and construction work processes.

Using current information from various sources such as 3D models, 2D engineering tools, materials management and project control and scheduling systems, SmartPlant Construc-tion ensures accurate and timely decisions can be made on the best available informa-tion. The software integrates all necessary information to develop precise and flexible work packages to better manage labor and materials at the work site. Effectively manag-ing and integrating information relevant for construction helps to shorten project times, reduce costs and improve CAPEX efficiency for owner operators.

SmartPlant Construction was developed by engaging plant, marine and offshore engineer-ing, procurement and construction industry leaders to provide industry best practice work processes. Intergraph SmartPlant Construction premier partners include companies such as Fluor, Technip, CTCI, Kiewit, Nexen, and URS Washington Division. For more information

about the premier partners’ role and Smart-Plant Construction, please visit Insight Maga-zine, Issue 25 at www.intergraph.com/insight.

The overarching goal was to create an inte-grated next-generation information manage-ment platform necessary to keep field personnel actively engaged in advancing the project – sav-ing time and money while increasing accuracy. Expected benefits from the use of SmartPlant Construction are:n Improved work force productivity n Expedited field construction (shorter project

execution phase) n Reduced CAPEX costs n Better data exchange and communications

between engineering and construction teams n Seamless information integration between

all necessary tools n Low training costs and reduced time result-

ing from a simple user interface.

Features include dynamic work package plan-ning, enhanced graphics interface with the 3D model, unique “drag and drop” functional-ity and direct interfacing with scheduling sys-tems. To enhance flexibility and interoperabil-ity, SmartPlant Construction is an integrated solution with an open API to accommodate 3D models and other data from popular third-party applications.

“Intergraph’s approach to the construction industry gives us great confidence that the prod-uct will be exactly what the industry needs,” said Alex Lu, with CTCI, the largest engineering, procurement and construction (EPC) company in Taiwan. “Engaging several of the leading global companies in this effort shows the com-mitment that Intergraph has made. Intergraph understands the requirements for the industry and this understanding is paramount to ensur-ing the success of the product.”

Sid Snitkin, Ph.D., an industry analyst and vice president for ARC Advisory Group, said, “SmartPlant Construction combines proven process engineering tools with work package planning tailored to the specific needs of the construction industry. This new solutions suite is a significant industry development in con-trolling CAPEX costs.”

“Construction projects in today’s market

have become bigger and more complex, and

information from multiple systems, depart-

ments and contractors needs to be effectively

coordinated and managed to execute them,”

said Gerhard Sallinger, president of Inter-

graph Process, Power and Marine. “Smart-

Plant Construction is the newest example of

Intergraph providing highly productive solu-

tions for the industries we serve. No other

technology provider offers such a broad and

comprehensive array of industry-specialized,

next-generation solutions that are able to

boost productivity, speed projects and pro-

vide a competitive edge.”

SmartPlant Construction is part of Inter-

graph’s SmartPlant Enterprise integrated

solutions suite that provides full design,

construction, materials and engineering data

management capabilities needed for the

creation, safe operation and maintenance,

and capital Project Life Cycle Management

(cPLM) of large-scale process, power, marine

and offshore projects. The software’s life cycle

data management also enables a smoother

handover for EPCs to owner operators and

for owner operators to more easily maintain,

refurbish or modify their plants.

www.intergraph.com/promo/spc

29InsightQuarter 1, 2010

Fluor Expands Intergraph Global Alliance AgreementFluor Corporation (NYSE: FLR), one of the lead-ing engineering, procurement, construction and maintenance (EPCM) companies in the world and longtime Intergraph customer, has renewed its Global Alliance Agreement (GAA) with Inter-graph for the next five years. This agreement covers the Intergraph SmartPlant and SmartMa-rine Enterprise software suites, including Smart-Plant 3D, PDS, SmartPlant P&ID, and SmartPlant Instrumentation and numerous other solutions.

As an Intergraph customer for 35 years, Fluor uses Intergraph enterprise engineering solu-tions on a significant number of its mid- and large-tier contracts across multiple industry sec-tors – oil and gas, power, mining and chemical.

SmartPlant Enterprise is an integrated solutions suite that provides full design, construction, materials and engineering data management capabilities needed for the creation, safe opera-tion and maintenance, and capital Project Life Cycle Management (cPLM) of process, power, marine and offshore projects. The software’s life cycle data management capability facilitates the handover for EPCs to owner operators and allows owner operators to more easily manage, maintain, refurbish or modify their plants.

“We are pleased to continue our Global Alliance Agreement with Intergraph,” said Peter Moore, vice president of Project Execution Services at Fluor. “This agreement fosters a continued part-nership that we expect to be mutually beneficial to both companies.”

Gerhard Sallinger, Intergraph Process, Power & Marine president, said, “Fluor has always been an early adopter of new technologies and a well-trusted partner. We look forward to many more years of providing superior solutions to meet Fluor’s business needs.”

www.fluor.com

Oerlikon Solar, the leading supplier of high

performance solutions for cost-effective mass

production of thin film silicon solar modules,

has selected Intergraph SmartPlant 3D and

SmartPlant P&ID engineering design software

to increase productivity and accelerate plant

project completion. With business doubling in

just two years, Oerlikon Solar outgrew its pre-

vious CAD 2D design software. To meet growth

demands, the company chose SmartPlant 3D,

Intergraph’s next-generation, data-centric 3D

design system, combined with SmartPlant

P&ID. Oerlikon Solar will use SmartPlant 3D

and SmartPlant P&ID for end-to-end manu-

facturing lines for the mass production of thin

film silicon solar modules.

SmartPlant 3D engineering design software

is the most productive, highest quality, multi-

discipline 3D modeling environment in the

world for global multi-office execution of

process and power projects. Customers using SmartPlant 3D typically realize 25- to 35-per-cent initial increases in productivity compared to other systems, higher quality deliverables and shorter schedules.

“After realizing the limitations of our previ-ous design system, we expect to have mea-surable improvements in the quality of our designs with SmartPlant 3D and SmartPlant P&ID,” said Orlando Derungs, project man-ager Fab Engineering & Planning for Oer-likon Solar. “Our growth necessitates that we maintain a more organized and productive design environment, and we look forward to working with Intergraph to improve our Basic and Detail Engineering.”

www.oerlikon.com/solar

Oerlikon Solar Selects SmartPlant 3D and SmartPlant P&ID Design Software

32 Insight Issue 27

InDuStry OutLOOk

We are often called upon during the instal-lation and deployment of engineering soft-ware applications to encourage, and at times ensure, that the organization is innovating in the processes and organizational responsibil-ities associated with the new system. This is not always easy, and we have learned many lessons over the past 20 years of bringing automation to owners and EPC companies. Some of the key lessons learned include:

n Plan and budget communication activities just like any other task on a project: We’ve learned time and again that every partici-pant in an innovation effort wants to know what is coming and what successes have been achieved. Further, we have learned that the form of communication and fre-quency depends on the audience. We will communicate differently with the “cham-pions,” executives, receiving organizations, and general company community. Estab-lish a budget for this communication and ensure that the project team is delivering.

n Have continual touch points: Interestingly, we have found that the greater the inter-action between the delivery/configuration team and the receiving organization, the more innovation is encouraged by both groups. The user group will be able to offer improvements through its understanding of the processes and the delivery team can be assured that it will not ”stray” off course for long on any innovation effort. In short, innovation is encouraged when both delivery and receiving are in close contact.

n Leave time for user discovery: Nothing frightens a user more than receiving a brief amount of training and then immedi-ately being put on a production project. It is essential that users are able to practice in a non-stress situation, where they can become comfortable with the system usage as well as be able to get questions answered rapidly. The best practice is to combine this

discovery with user acceptance testing, where the software vendor has every incen-tive to ensure the user understands and is satisfied. Encourage users to explore work processes that are critical to their success and understand how the system allows dif-ferent approaches before it is “for real.”

n Recognize and reward: Innovation is not easy, and there are frequently many observ-ers who are willing to share why it will “never work.” The innovators (both system delivery and receiving) are frequently outside of their own comfort zones and recognize that they are in the spotlight. Recognition needs to start at the top of an organization and permeate throughout. We have found that rewards are not measured on value or size, but more on the fact that the organization is singling out individuals who have had the courage to innovate. Frequency over size is the true measure.

n Establish metrics up-front: One of the key steps we take in establishing an innova-tion project is to define the metrics for per-formance (benefits) and the processes for capturing these numbers. It is essential that

the teams understand the expected impact on the businesses of an innovation project and that there is a process for measuring the value (cost savings, time reduction, new markets, etc.). Start with the “as-is” (fre-quently, this is forgotten) and subsequently measure the impact over time. Nothing will have more impact on an executive team than showing real data of results.

So, it is not just chance that certain compa-nies are constantly successful at innovation efforts. Cultivating organizational innovation is about repeatable processes and recogni-tion of value. We can all do it.

Joe Morray is president of Trinity Technologies Corp., a process and power industries consulting firm that helps owner operators and EPC firms succeed in the use of

information systems. The company specializes in driving companies to align work processes, technology and organizational change require-ments for the plant environment.

www.trinitytechnologies.com

Cultivating Organizational Innovationn By Joe Morray

BOOST yOur pOwer prOjecTS

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Increase productIvIty wIth InteroperabIlIty

Power industry leaders from around the world rely on Intergraph’s integrated plant design environment for real business benefits. Make the most of your power engineering design data investment. Support integrated plant modeling and design from concept to operations and maintenance. Take advantage of engineering rules-based design to complete projects more quickly and accurately, at less cost. With global worksharing, you can enhance multi-site, concurrent engineering and data sharing of the evolving 3D plant design. Plus, automate the plant design process to capture engineering knowledge and expertise.

Visit www.intergraph.com/power and learn why industry leaders choose Intergraph for their power projects.