SmartPlant Materials Benefits and Case Studies. Callum Ford

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1 SmartPlant Materials Benefits and Case Studies Callum Ford August 2008 Hilton Opera Hotel Hanoi, Vietnam

2 What is Materials Management Why do we do it What is the solution How do we do it What are the benefits? August 26,

3 Planning and control of the functions that support the complete flow of materials and the associated flow of information. Materials correctly identified (Tight interaction with Engineering) The goal we then achieve: Maximise discounts/savings Get the right material. (Largest area of Project expenditure!) Get materials where they are needed To the right place.. (Ship point, Fab Yards, Site etc) On-time deliveries At the right time!!! (Early or Late no use!) Manage the entire cycle from Definition to Deployment August 26,

4 What if we don t? August 26,

5 IMPROVEMENT is key...procurement at The Helm Commitment Forecasting Milestone Achievement TIC Forecasting Planning (L3 and L4) REQUISITIONS Quality, early, accurate CHANGE MANAGEMENT PROGRESS BUILDABILITY = Efficient Site resource usage!! Bottleneck elimination Project delivery Concurrent Execution Project Delivery (Schedule/Safety/Budget) Risk Mitigation Long-lead early RFQ (Price and Source) Blanket Orders Frame agreement Cross-project / organisation procurement MAX DISCOUNT! August 26,

6 PURCHASING ENGINEERING SUPPLIERS ISSUE EXPEDITING RECEIPT INSPECTION LOGISTICS August 26,

7 Business Drivers for Mat l Mngnt 50 to 60% ENGINEERING MATERIAL CONSTRUCTION Construction Material Client Name Planning & Job # August 26, MANAGEMENT Requirements Planning & Control Acquisition/Contracting Strategy Fabrication Shop Coordination Getting THE BRIDGE Materials to the Jobsite Process Name REPLACE THESE LINES WITH ACTUAL TITLE OF DOCUMENT

8 REAL SAVINGS ARE BENEATH THE SURFACE Materials Management COSTS KNOWN - Mtl/Equipment Costs - Engineering Labor Costs - Construction Costs - Inspection & Testing HIDDEN COSTS Startup Delays Duplicate Effort Operational Delays/Lost Production Engineering Inventory Costs Expediting Fees Maintenance & Storage Costs Revisions Mismatched Systems Redundant Data Entry Cost of Changes Training Costs Operational Costs Multiple Approvals Premiums for limited shop space COST IMPACT OF INDECISION Impacts of Construction Sequence Change Compressed Procurement Urgency Mode CHURN/Delay Costs IT Support Costs Ease of Maintenance Procurement Labor Air Freight Costs Specification Impact of LATE Vendor Information Spare Parts Engineering Changes Operations Expediting Safety Costs Maintenance Effort Rework Product Liability Validating Invoices August 26,

9 Major Benefits of SPMat - E&PI Seamless integration of engineering & procurement data facilitates the elimination of surplus materials For EPC & O/O Bridge between DESIGN and Procurement Cycle Focussed management of Design Changes into the Supply Chain no surprises! The elimination of shortages Major reduction in risks and construction costs Quantities needed really will be available August 26,

10 Major Benefits of SPMat - MSCM The seamless integration & optimization of procurement & tracking processes reduces cost EPC - Electronic vs Manual Bid receipt, analysis and vendor selection time Reduced The elimination of delivery bottlenecks = reduces risks and construction costs Expediting power via flexibility to reflect REAL world Enhanced procurement data visibility empowers early and informed decision making = maximum savings. August 26,

11 Major Benefits of SPMat - SITE Seamless data Integration of Engineering & Supply Chain data to Site supports efficient fabrication/construction forecasting Inventory Management with Virtual & Physical Warehousing Effective site material control reduces construction cost Integrated information/issue visibility (e.g. material availability) Enhanced Buildability Continuous working Faster completion and TTM! August 26,

12 Benefits If Material Engineering information Reference at your Data fingertips is SAME as what is told to Procurement Information than we save on material money sharing without effort The tight integration of E&P facilitates the accurate management of change If The Design elimination change, of shortages alteration and and reduction re-definition overages is managed, we only Bid Procure receipt, what analysis needed and vendor selection maximising time your hugely ROA reduced & ROI The elimination of delivery bottlenecks = reduces risks and construction costs Procurement data visibility empowers early decision making = maximum Effective Materials Management achieves right material, right place & savings right time Integration of design, supply chain, and site info = true materials management Greater Complete efficiency and integrated in Construction site material = management Earlier TTM reduces = Greater construction Revenue cost Early issue and total data visability = enhanced Buildability August 26,

13 SPRD/SPM Customers : EPCs August 26,

14 SmartPlant Materials Benefits and Case Studies Callum Ford August 2008 Hilton Opera Hotel Hanoi, Vietnam