Increasing Business Value through Technology & Innovation

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1 Increasing Business Value through Technology & Innovation Owner Operator Forum March 21, 2013 Ray Topping, PE Fiatech Director

2 Fiatech

3 Fiatech Mission Fiatech is a global community of passionate stakeholders working collaboratively to lead development and adoption of technologies and innovative practices to achieve the highest business value throughout the life cycle of capital assets. Fiatech Capital Project Technology Roadmap

4 Advancing Capital Project Productivity is a Non Trivial Pursuit During the time period , how much did productivity increase in the US Construction Industry? A. 4.5% B. 2 % C. 0, no change D. 3.5% Source; McKinsey Report

5 Fiatech Created by Owner Companies Includes Members and Partners that represent broad range of industry stakeholders. Fiatech s Members are united by a common goal.make a step change improvement in productivity in the design, procurement, engineering, construction, and maintenance of capital assets.

6 Delivering Increased Business Value Advancing Technology & Innovative Practices Projects develop, demonstrate and deploy Networking, Collaboration and Partnerships Technology Exchange, Events, Outreach & Webinars Awards Program Recognition s

7 Fiatech Delivers 2012 Outstanding Year of Progress, Technology Leadership and Value Highlights described in our 2012 Annual Report Over 20 member lead projects Emphasis on business value & implementation by our Members Partnered with industry leaders to leverage resources Annual Conference, Member s Meeting and Awards Program Active Technology Exchange, Webinars, Industry Outreach Program Global Activities including European Advisory Council

8 20 Projects with Deliverables 2012/ Q Design Projects 4 Projects, EELCAT, Spec Automation Ph.1, Supplier Exchange, IIP Procurement 4 Projects, EMSA POC, Productivity Improvement Guide, GM Tracking Case Study, PPI Ph. 1 Construction 3 Projects incldg. RTFR and RFID Access Control plus Mobile IT COP Project Management 2 Regulatory Streamlining Projects Autocodes POC, and Digital Signatures Operations ALARA virtual work environment, Avatars New Materials & Methods Augmented Reality People/Workforce User Acceptance of Mobile IT Information Management 4 Projects; Interoperability Vision Paper, 2 Projects iring/iso15926/jord, Structural Steel Interoperability, HEED Ph. 1

9 Regulatory Streamlining Initiative A Step Change Improvement in the Review Process Guideline for Replicable Buildings cut plan review time by 80%, TARGET saved over $20M in calendar year 2011 eplan Review goal: cut permit application time by 60%, can save industry $15 billion/year Automated Code Checking (Autocodes) goal: reduce plan review time from months to minutes, cut review time by 80% Lead Fiatech Members

10 Driving Increased Business Value through Design and Interoperability Specific Automation: increase productivity and advance interoperability to computer aided design (CAD), building information modeling (BIM) Supplier Information Exchange with Design to Support Construction - Standardization of deliverables improves repeatability and productivity to meet design intent. Common Design Workflow Checklist, Workflow Mapping Of Engineering Deliverables To Construction enhance the work processes of Design and the integration with construction

11 Leadership for Advancing Interoperability Advancing Interoperability Vision Paper, with Calls to Action JORD Project and iring advancing data interoperability with PCA Structural Steel Interoperability for the Building and Process Plant Industries with AISC and bsa, led by Chuck Eastman, GA Tech HEED Project data exchange for engineered equipment Oil & Gas Data Project demonstration project with MIMOSA ISO Project Information Flow- 2 nd year, piping data exchanges from design to construction IIP Project with iring Community, ISO data mapping Information Management across roadmap with increased focus on procurement and operations

12 Information Management Data Exchange How much did a major chemical supplier save in one year by using the ISO (like BIM) data standard for consistency checking across internal engineering instrument tools? A. $1M B. $8.4M C. $11.3M D.$28M

13 Procurement & Materials Management Opportunities CII studies have shown that materials and installed equipment can comprise 50-60% of a project s total cost and control 80% of its schedule (Ibn-Homaid 2002) The construction industry only invests 0.15% of its costs in materials management and control, (Marsh,1985),versus 1% for the manufacturing industry (Formoso and Revelo 1999). CII sources: IR7 3, EM7 21, EM7 21A, RS7 2, RS7 1, SD 92, IR 166_3_v2

14 Procurement, Materials Management Enable substantial materials management productivity improvement through end-to-end increase in visibility, predictability, accountability, traceability & control Projects Automating Equipment Information Exchange (AEX) Global Valve Cross Reference e Catalog (GVCC) RFID Valve Tagging Case Study RFID for Materials Management & Productivity Improvement Materials Management Productivity Improvement Guide Global Materials Tracking Case Study Next Generation Project Performance Predicting Life Cycle Materials Risk Mitigation Expediting Equipment & Material Selection and Acquisition (EMSA)

15 Technology Enabled Workforce Our Vision: A committed, integrated team skilled in working with advanced, user friendly technologies at that enabling high levels of quality and productivity through the life cycle of capital projects. 3D ALARA Planning Tool step change productivity advancement for hazardous environments; huge potential for operations training Augmented Reality Project Best practices recruitment of people in technology related fields Attracting the Next Generation Developing Core Technology Competencies Leveraging Technology to Improve Construction Productivity User Acceptance of Mobile IT Report Introduction to ISO Report and Training Training Course for Implementing Regulatory Streamlining

16 Our Vision for Intelligent & Automated Construction Sites The construction process and project site are re engineered to make use of emerging information and automation technologies to minimize capital facility delivery costs, expedite facility delivery time, improve delivered quality, eliminate re-work, and minimize lifecycle costs. data from megaprojects shows that 65 percent failed to meet business objectives. paraphrased 70% of Energy projects have not met budget and 85% have not met schedule

17 Intelligent and Automated Construction Sites and Integrated Handover/ Turnover/Commissioning Construction Real Time Field Reporting Using Smart Devices Enhance Construction Productivity and increase effectiveness of Design Coordination Mobile IT Community of Interest sharing of advancing practices by our members and our partner COMIT for automating Field Services RFID Access Control Systems International Case Studies Global Review of Emerging High Value Practices User Acceptance of Mobile IT Assessment of Best Practices for increasing the Use and Benefit for Mobile IT Devices Real-Time Field Reporting Using Smart Devices Review of Emerging High Value Practices Handover/ Commissioning General Buildings Information Handover Guide Capital Facilities Information Handover Guide

18 Focus Areas of Project Activity for 2013 AutoCode s Interoperability including Handover and Facilities Management Mobile Field Devices and Automation for Construction Site Regulatory Streamlining including AutoCodes Procurement/ Materials Management Project Management Information Systems Workforce Technology Advances including Augmented Reality and Avatars New Materials & Method

19 Networking, Collaboration and Partnerships Peter Blake, Hatch Through discussion with an expert that we only have access to through Fiatech, we were able to save over $250,000 on one project. Major EPC firm Fiatech s member driven project approach gains us access to experts we would not normally have available and leverages our development investment at least 10 to 1. The Mobile IT Community of Interest in partnership with COMIT is sharing advanced practices for field automation, delivering productivity improvements for our construction practices. Fiatech Member

20 The White House, Office of Science and Technology (OSTP) Grand Challenge Bring innovation and technology into engineering & construction to stimulate economic recovery and sustainability, public safety and disaster resiliency.

21 Summary Driving Productivity Improvement and Business Value Portfolio of Member Led Projects Networking & Collaboration Technology Exchange Awards & Recognitions

22 Join Us! March 25-27