unified project execution€¦ · disconnected systems result in mistrust of data which spills over...
TRANSCRIPT
A sustainable ROI across projects, predictable schedules and automated adherence to contracts - through effortless execution and accountability.
Profitable Return on Capital Employed
Full AlignmentStakeholders align around delivery and cost - no longer distracted by transparency, control of change, disputes and claims challenges
Connected DecisionsAutomated transparency and connectivity of all relevant data, integrated seamlessly across EPC and subcontractors - without room for human error
Control of ChangeAutomated adherence to commercial contracts via enforced process, addressing issues and changes before they progress into delay & cost
Complete Audit TrailA bullet proof audit trail through automated and enforced processes makes claims & disputes rare - even on complex projects
Change Occurs
Uninformed Decision Making
Discourse between Project Parties
Unnecessary Waste & Rework
Cost & Schedule Overages
Unclear Change Management Accountability
**Source: IACCM – The Value of Contract Management***Source: CII – Main Sources of Transactional Waste
*Source: Dr. Stephen P. Mulva, Construction Industry Institute, July 2019.
Cause #3 - Lack of Control
Unified Project Execution
Poor integration impacts collaboration, visibility and accountability. Data is often populated and shared manually which increases human error, lack of adherence to process and ill-informed decisions.
Updates to project scope (a common occurrence) require extensive, manual auditing of work packages and material needs and allow extremely limited visibility of cost and schedule impacts.
Disconnected systems result in mistrust of data which spills over into mistrust between project teams, potential oversights, safety incidents, value and information leakage and massive rework throughout the engineering and execution stages of the project. All of these things lead to mistrust between project teams, wasted time and resources, and ultimately cost and schedule overruns.
64%
Of project overruns are due to untracked scope
changes**
Layer-upon-Layerof Additional Cost
End Users
EPCs / GCs
Subcontractors
Vendors
Distributors
Suppliers
Raw Materials
Average amount of transactional
(non-productive) waste attributed to claims defense on
a project.
7.1%
56%
Of project owners linked overruns to lack of effective
change control**
Of Owner Operators blame overruns on inadequate governance
in contract management**
38% 41.3%
Of project costs can be attributed to transactional waste that is
unproductive to the project ***
TODAY
25.90%
24.84%
10.29%
9.70%
7.53%
7.10%
6.36%
5.20%
4.77%
3.15%
3.10%
2.65%
2.25%
41.43%
Trade Credit and Debt Finance Charges
Non-Value Added Field Operations
Missed Depreciation Charges and Excess Tax
Logistics Optimization and Expediting
Duplicative Insurance Coverage
Cost of Claims
Duplicative Contingencies and Management Reserves
PO / RFP / Bidding
Crime / Fraud / Counterfeiting
Surety / Bonding Expense
Interoperability
Rework
Foreign Exchange
TOTAL COST
Main Sources of Transactional Waste
Standardization
IntelligentInformationHandover
Cost Management
Owners Operators
Win Business
ImproveCommunication &
Alignment
Protect Profit Margins/Cashflow
EPCs Unified Project Execution
On-budget On-time
Claims & Disputes
UnderestimatedProject costs
Poor ChangeManagement
CompetingPriorities
Capital projects are a high-cost,high-risk endeavor
Cause #1 - Misalignment
Cause #2 - Lack of Transparency
Cause #4 - Wasted Time & Resources*
Only AVEVA ProCon enables enforceable processes tracking
the receipt, review and approval of changes before implementation can take place, linking a project's
process and commercial agreement.
We enable complete control with automated alerts for potential
overruns for more informed decision making as changes arise.
Commercial Firewall
Uniquely AVEVA’s ERM combines material management, optimized
bulk buy workflows, workface planning and 3D model
integration to minimize value leakage and enhance productivity.
Automation enables early bottleneck detection and aligns
materials availability with schedule to cut material and
production costs and improve overall project quality.
Material Optimization
Only AVEVA LFM gives you full flexibility on both greenfield and brownfield sites, connecting all
information into 3D tools – without limitation to type, size, speed and volume of scan data
collected, agnostic across all technologies, and without delayto the project execution phase.
Agnostic Flexibility
Together we can get you there
Competing Project Execution Priorities
98% of mega-projects are delivered late and 80% are over budget due to poorly managed risk and high levels of uncertainty and scope changes throughout the course of the project.
– McKinsey, The Construction Productivity Imperative
64% of mega projects are facing cost overruns and 73% of the projects are reporting schedule delays.
– EY, Spotlight on Oil and Gas megaprojects
Are these causes part of your day to day?
Change is inevitable, but risk is optional
Customer Experiences
“We deploy ProCon on our 16 largest projects, but there’s scope to extend it further. We experienced ZERO claims on $12bn Shell Prelude – first FLNG ever built, which is the now benchmark for other projects to work against”
“Using ProCon allowed us to recover over $1B in a high-risk JV project in Africa”
“Deploying ProCon during the early stage of our project allowed us to demonstrate the ability we had to reduce risk during execution moving closer to FID”
“AVEVA Enterprise Resource Management (ERM) reduced training time across engineering, procurement and project controls by 23%. Participants noted the solution was easy to use, provided quality training materials and the right functionality for EPC projects”
“AVEVA ERM integrated seamlessly with our SAP planning systems, offering all-round capabilities, where all our technologies were working towards the same goals and no specialist knowledge was required to switch from one to the other”
“Using AVEVA ERM has allowed us to set an internal target of 20% cost reduction in our overall operations”
“LFM has proven over the years to not just be a vital tool but a very powerful 3D laser scanning application for brownfield projects. I’m currently managing a very large LFM project, around 20 terabytes of point cloud data with over 19,000 laser scans. The success of LFM means it is currently being used in all Fluor offices around the world”
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