optimizing epc project delivery with 4d experience

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Just finished the 3D Experience forum organised by Dassault Systems in Las Vegas. http://lnkd.in/bFh-yW2 I am attaching my presentation in the Energy, Process & Utilities Track introducing a new approach to capital projects delivery optimization using 4D (x,y,z,t) Experience from Dassault Systems.

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  • | 1Copyright 2014 | E2C Bridge Proprietary Information

    Optimizing EPC Project Delivery With 4D Experience 3DS Conference- EPU Track

    Nov 12 2014

    Dr Yasser Alkazzaz

    Founder & CEO

    E2C Bridge

    yalkazzaz@e2cbridge.com

    +1 817 253 4129

    Design Reality

    Project Delivery Optimization

  • | 2Copyright 2014 | E2C Bridge Proprietary Information

    Agenda

    Introduction & Background

    Project Delivery Challenges & Opportunities

    New Approach to Project Delivery Optimization: 4D Experience

    E2C Bridge Solution and Services

    Optimized Plant Construction

    Advantage and Benefits

    Key Functional Advantage and Improvement

    Potential Financial Saving and Benefits

  • | 3Copyright 2014 | E2C Bridge Proprietary Information

    Project Delivery Is About Mobilizing Capital to Transform

    Engineering Design Into Reality Upon A defined Schedule

    EngineeringConstruction &

    Installation

    Design Completion

    Budgeting & Scheduling

    Work Packages (Materials/Contracts)

    Project WBS, BOM

    Engineering Documentations

    Project Delivery

    Procurement & Materials Management

    In project delivery any issue, error, delay can directly and simultaneously

    impacts cost and schedule performance

  • | 4Copyright 2014 | E2C Bridge Proprietary Information

    Capital Projects Arent Delivered On Time and On Budget Leading to Hundreds Billions Value leaks Across Industries

    Errors in planning leading to rework account for 15% of cost and up to 40% decrease in construction productivity

    In one single capital project 70% of labor cost is spent on inter and intra-company interactions leading to decreased overall EPCM productivity

    Poor materials management & delivery could cause 7% increase in materials cost, 16% increase in project delays and 24% decrease in construction productivity

    and 75% behind schedule Cycle Time

    Cost

    63% of projects over budget

    ConstructionEngineering

    LogisticsFabrication / Expediting Purchasing Requisitions WarehousingQuality Surveillance

  • | 5Copyright 2014 | E2C Bridge Proprietary Information

    Projects Delivery Does Not Effectively Bridge Engineering

    With Construction Leading to Poor Project Performance

    Project controls & materials management still suffer from being separated,

    suboptimal, lacking power and some time not impartial

    Islands of data with Ad Hoc integration causing leak and inconsistency and preventing analysis and evaluation of construction alternative

    Lack of portfolio standardization and globalization (project per project basis)

    Lack of global portfolio consistency (process, resources, and contractors)

    preventing effective knowledge transfer and development

    Owner/EPC/EPCM relationship requires improvement in both sides.

    Logistics

    and 75% behind schedule

    Cycle Time

    Cost

    63% of projects over budget

    Fabrication/ Expediting Purchasing Requisitions Warehousing

    ConstructionEngineering

    Quality Surveillance

  • | 6Copyright 2014 | E2C Bridge Proprietary Information

    E2C Bridge Integrates Project Planning & Controls With Procurement and

    Material Management into Effective Project Delivery Process Framework.

    Engineering Construction

    Project Delivery Optimization

    E2C Bridge

    Procurement &

    Integrated Materials Management

    Process

    Framework

    On DemandRemote &

    Central

    Lean

    Methodology

    4D

    Controls

    One Stop

    Shop

    Concurrent

    Scheduling

    Delivery

    Methodology

    One Stop Shop Integrated Services

    Concurrent versus sequential planning &

    scheduling continuously aligning schedule,

    cost and materials with construction

    Integrated materials management process

    from engineering specification all the way to

    installation

    On demand, central & remote approach

    facilitating set up and driving process

    consistency & alignment

  • | 7Copyright 2014 | E2C Bridge Proprietary Information

    E2C Bridge Consulting and Service Capabilities Are Defined to

    Drive Optimization & Integration Through The Project Lifecycle

    Option selected Baselines Complete.

    Definition, PlanningInception, Identification Execution

    CONSULTING SERVICES MANAGED SERVICES

    Project & Portfolio Strategy

    Portfolio Optimization Design Standardization Contracting Framework

    Agreement

    Process and IT Resource and Knowledge

    management

    Project Delivery Strategy

    IT Systems Strategy

    Project Planning

    Work packaging

    Modularization Study

    Project Scheduling

    Project Budgeting

    Procurement Planning

    Logistics Optimization

    Sourcing Optimization

    Project Controls

    Cost & schedule control

    Change management

    Progress reporting

    Performance management

    Materials Management

    Requisitioning & bidding

    Purchasing

    Expediting

    Vendor quality Surveillance

    Logistics

    Site receiving

  • | 8Copyright 2014 | E2C Bridge Proprietary Information

    E2C Bridge Project Delivery Framework Integrates Schedule With

    Materials and 3D Design to Offer Highly Effective 4D Controls Approach

    Cost Controls

    Schedule Actual Dates

    Actual Delivery

    Dates

    CommitmentsBudget

    Estimate

    Quality

    SurveillanceLogistics

    Project

    Engineering

    Data

    BOMPackages

    RequisitionsPurchasing Expediting

    Site

    Construction

    3D Design

    4D Simulation & VisualizationEngineering, Procurement and Construction

    Material Elements

    Planned Due Dates

    Due Dates

    Budget Allocation

  • | 9Copyright 2014 | E2C Bridge Proprietary Information

    IT Still Is Best of Breed Lacking Integration, Alignment And

    Key Elements to Address Critical Functional Gaps

    Engineering

    Data

    Management Project Document Management

    Materials Procurement & Contracts

    Construction & Site Management

    Project Planning & Control

    Commissioning

    Project Data Management

    En

    g D

    esig

    n T

    oo

    ls

    Publish

    Eng

    Information

    Project management

    Project Portfolio Management Data Analytics, Reporting, Benchmarking & Performance Management

    Project Portal Pro

    ject P

    rocess M

    anagem

    ent

    Contract

    Management

    Capital

    Estimating

    EPCM

    EstimateCost ControlScheduling

    EPCM

    Progress

    Risk

    Mgmt

    Quality

    Mgmt

    Reporting

    Dashboard

    Safety

    Mgmt

    Project Admin,

    CollaborationResource

    Management

    Purchasing

    Hand Over

    Expediting LogisticsSite Materials

    ControlsInspection

    In House/custom

    Missing/Not deployed/AdHoc

    Best of breed

    Engineering focused

    Owner

    Operations

  • | 10Copyright 2014 | E2C Bridge Proprietary Information

    E2C Bridge Has Chosen Optimized Plant Construction To Support Its Approach and Process Framework

    2

    4

    5

    3

    Construction Field

    Planning & ExecutionLean Construction Execution

    Engineering Work Package Digital engineering management

    from plan, execution, approval to

    change

    Collaborative Digital ProcurementProductivity for requisitioning & manage

    procurement lifecycle

    Requirements Driven

    Project Management & MonitoringProject management & execution integrated with

    Quality Management System

    6

    Virtual Construction

    4D SimulationConstruction plan optimization &

    validation

    3D Construction Instructions Intuitive work instruction for safety,

    quality & efficiency

    1

  • | 11Copyright 2014 | E2C Bridge Proprietary Information

    OPC 4D Approach Facilitates The Application of Lean

    Principles And Optimizes Project Controls & Delivery

    Simulation & Validation Proactive Vs Reactive

    Redefining project controls from passively monitoring results to proactively influencing

    and ensuring predictable project outcomes.

    Integration & Visibility Global Optimization Vs Local Optimization

    Redefining performance improvement by maximizing value and minimizing waste at

    the project level versus locally optimizing each individual activity.

    4D Virtual Construction Concurrent Vs Sequential Engineering

    Redefining Project Delivery from sequential engineering and construction

    to simultaneous design of the facility and its construction process.

    3D Instructions & Training Pull Vs Push

    Coordinating action through pulling and continuous flow of information as opposed to

    traditional, central authority driven push

    Decentralizing decision making through transparency and empowerment by providing

    project participants with information on the state of projects and empowering them to

    take action.

  • | 12Copyright 2014 | E2C Bridge Proprietary Information

    E2C Bridge Estimates Potential Saving From Project

    Delivery Optimization to 10% of CAPEX at A Minimum

    % of CAPEXHistorical

    ratios

    % of

    EPCM

    $1BProject

    Potential Saving

    EPCM Fees 10% 100% $100M % of Saving Saving

    Engineering Design 3% 30% $30M 5% $1.5M

    Eng

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