Aerni consulting services

Aerni consulting services

Process- and 3D-object oriented cost models 2

Experience and current situation 1

Content

3 Possible services and results

 Aerni consulting was founded in 2001, its focus is

consulting in the system- and plant business

 Our Goal is helping companies to become more

competitive

 Support of companies and teams with proven

methods, innovations and ideas. But also with a pragmatic approach and a cross functional view of the company

 Or with project-/program management of defined

improvement projects/programs

1

Aerni consulting has developed proprietary methods and tools in the

following areas:

• Plant optimization/development and cost reduction

• Knowledge management and reuse in the engineering process,

including more accurate cost estimating

• Prototype for cost estimation in Comos (piping mat, pref and erection)

• Process reengineering adapted to the plant business (6 Sigma)

• IT application benchmarks on Net Present Value basis

• Innovation (business, products and processes)

1

The thorough implementation of optimized/modularized/standardized plants/reused engineered solutions will allow to achieve significant more value for all stakeholders

Customer Plants, services, technologies Workflows Capabilities

Tools and methods (PLM, CAEs, 6 Sigma, DFx, etc)

Performance, cost consistency,quality and cost

Customer needs Best-in-class people Optimization/ modularization/ standardization 6 Sigma Experience– Life Cycle Cost (LCC) reduction in the plant building industry

Improvement of 10-20% in Net Present

Value for system/plant

Reduction of engineering hours and cycle time up to

50% and cost of poor quality by 25%

Only smart cost estimating and control models allow to support the LCC / cost reduction potential in the plant business industry

Major elements of a LCC optimization/ cost reduction program

1: Get cost transparency

– Plant / equipment / bulk cost structure – Baseline setting

2: Set targets and Priority setting

3: Optimize process and reduce costs (LCC reduction)

– Process optimization

– Key package units/equipment / commodity strategy – Low cost country sourcing (LCS)

– Redesign to cost and standardization

4: Measure and follow-up: Initiative monitoring and metrics 5: Apply to projects: compliance mechanisms

Our experience – R&D and cost reduction

Our experience is in the implementation of cost reduction and/or performance improvement of new products

Modularisation/Standardisation of wet cooling towers

The team (England, France, Germany, Belgium) developped a new family of wet cooling towers within 4 months with a cost reduction of

17%

Modularisation/Standardisation of waste heat recovery boilers for combined cycle power plants.

The team achieved a cost reduction of 25% within 8 months

Support in the development of a new pump family (conjoint Analysis, FMEA and modularisation)

Voice of the customer for combined cycle power plants

Development of a cost reduction methodology for the plant business and

development of new cost estimating workflow for piping and civil including new structures, unit rates and calculation of norm hours for erection services

Project management for the modularisation/standardisation of steam reformers Improvement of plant NPV by approx.15 % in 4 months

The various structures coexist for the necessity of order execution, the

relationship are not made explicit in a common data model and consistency is difficult

Functional process structure 3D structure Cost structure

Feed treatment P10 Reforming & WHR P11 Etc. H2 plant Design area PR Design area 1 H2 plant Vessels reactors mechanical equipment pump P80P1 rot equipment HV MCC P80P1M1 MV LV Electrical Piping Bulk H2 plant

Experience– a sample of current essential plant structures Illustrative

Relationships Relationships

Relationships

Equipment specifications

Supplier drawings

Location view

Product view

During plant development or bid/project execution, different documents are produced which show different views, abstraction levels and data redundancy

PFD

P&ID 1 Single line 1

3D Plant Model

3D Product Model Mechanical_{data sheet}

Concept

Basic

Detail

Procurement

-Production

Construction

-Commissioning

Engineering-Phases

3D piping Steel structure Isometric

drawings

Piping BOM Current situation

Various tools and structures characterize often the cost estimating and cost control landscape

• One tool to consolidate the cost from various disciplines and to calculate final price to customer (own development, SAP, MS-excel or other).

• Each discipline quantifies their Material Take-Offs (MTOs) or Bill Of Quantities

(BOQs) with their unit rates (own developments, MS-excel) and enters the summary data into the above consolidation tool.

• Division of work is ensured by project management and discipline in a separate document or ev. in the cost consolidation tool.

• Data integrity between disciplines is more or less realized through equipment lists, PFDs and layout drawings

• Each main location often has its own tool/data

• Cost objects are not attached to engineering objects with the consequence that engineers would like to know the cost to optimize their plants but have seldom the information at their fingertips

• Purchase order positions in the ERPs often have a different granularity than the unit rates negotiated with the supplier

Economies of scope and scale, cost transparency and reduction of

complexity are also in the plant business important cost reduction drivers

• Plant optimization/cost reduction is not feasible without cost information

• Accuracy of cost estimation is better if a company can rely on data from past projects (BOQs and unit rates)

• Data consistency between disciplines and project phases (tendering, basic

engineering, detailed eng, etc) can best be achieved by using the least amount of databases and structures/data models which ensure consistency between discipline and project phases

• Avoid if possible data duplication and ensure that data are only entered once

• Start IT projects with the big picture in mind but with a limited scope and complexity to achieve quick results

Cost tools required by an EPC company

• The process and 3D configuration of the plant shall automatically produce the necessary

cost objects to ensure consistency of scope and cost (Reuse information from ongoing or closed projects in tendering and execution)

• Tool to achieve target cost in proposal and order execution

• Confidence in estimate (Goal +/- X% between as sold und as built)

• Allow management to compare BOQs and unit rates between the different projects for

estimates and as built projects

• Control BOQs and unit rates from tendering to as built (status as ordered, as engineered, as

procured and as built)

• Support for the optimization of technical solution( Allocation of cost to the structures of the

technical solutions (Process catalog and 3D catalog)) by allowing engineers to see the cost of what they have engineered

• Show quickly and quantify precisely the effects of changes to the supply- and work-split

• Flexibility with regard to price changes (project in a different country or with other suppliers

• Allowing Bids from key suppliers with slender resources and BOQs of most expensive items

• Allocation of cost to disciplines

• Seamless transition from old cost structure to new structure

Requirement to cost structure and estimating tool

Process- and 3D-object oriented cost models 2

Experience and current situation 1

Content

3 Possible services and results

Based on process and 3 D structure (for Budget and firm price proposal ) Process Eq V1V1 Process Valve V1Q1 etc Feed treatment V1--V1 etc. Reforming G1--V1 etc Gas cooling E1--V1 Etc. Radiation Zone CG B1B1--V1 WHR CG B1B2--V1

Comb air blower B1B3--V1

Reformer & WHR MEUV B1--T1

HEX steel structure EUV B2B4--V1

Desulfurization EUV B2B2--V1

etc

HEX steel structure MEUV B2--V1 Plant

Zürich

Process structure Additional functions

from 3D-structure Selected process unit variants Selected MEU variants Selected EU variants 2

View level 5 is a quantification of Bill Of Quantity (BOQ) linked to unit prices per BOQ-type and elements

Process Equipment Basic Ext. basic Detail Engineering Valve material Valve erection Valve V1Q1-Q1 Pipe material Pipe erection Piping Insulation material Insulation erection Insulation Process valve V1Q1 Purchasing

Process valves Process pipes Engineering

Purchasing Primary element Transmitter Switches Instrument Hook up material Hook up erection Weather protec. Material Weather protec. erection Hook up Pipe material Pipe erection Piping Process instrument V1T1 Basic Ext. basic Detail Engineering Process Instruments

process unit variant V1--T1

The structure of the cost model allows an evaluation of BOM and cost according to different views

cost structure Cost model Previous Project Management Structure Discipline Structure Procurement structure 3D Structure

The estimate is configurated by the choice of process and 3D structure elements with additional scope of work and delivery

Scope of Work Work category Project management Conceptual engineering Basic engineering Extended basic Detail engineering Procurement Material supply Transport Erection supervision Erection Commissioning Cost Model Scope of delivery Functional Scope Scope of Work detail Functional scope

Gaseous Feed Handling L L L L L L L L L C L

Feed Compression L L L L L L C C C C L

Feed Purification L L L L L L L L L C L

H2 Recycle L L L L L L C C C C L

Liquid Feed Handling etc.

MEA Washing Reformer Steam System Fuel System Prereformer Etc. L: Linde C: Customer Functional view

Gaseous Feed Handling x x

Feed Compression x x

Feed Purification x x

H2 Recycle x x

Liquid Feed Handling etc.

MEA Washing Reformer Steam System Fuel System Prereformer Etc. Delivery Columns x Adsorbers x Reactors x Vessels x

Tube type heat exchangers x

Tanks x

Oil separators x

Valves, pipes etc

For reuse to happen from functional solution decision to layout decision, the data must flow accross functional borders and across executed projects

Process Unit

Process unit variant

Process Equipment

Main Erection Unit Variant (MEUV)

Erection Unit Variant (EUV) and size class

Plot Plan with most equivalent MEUVs/EUVs Selection of solution -Decision > Topology Design -Decision > Dimensioning Layout -Decision > Positioning

Process selection 3D catalog

Allocation

of process

Equipment

Workflow

For reuse to happen, the plant needs to be structured into process units, process units variants and execution options for Equipments

D if fe re n t le v e l o f re u s e

Structured selection of process solution

Process Valves Process unit Process unit variant Process Equipment Feedwater treatment 2 pressures with 2*100%, 2*100% Process

Pipes selected PFD-Template

Execution options V1 W2 W3Q2 Q1 W8 W1 W5 W7 Q3 W4 L1 W6 W9 G1 PD1 PD2 G2 W10 P1 Illustrative 2

Selection of Plot Plan template having the most equivalent MEUVs and EUVs as starting point for the design of the plot plan

Structured selection of 3D solution Illustrative

Main Erection Unit +B2

Main Erection Unit +B3 Main Erection Unit +B1 100 m 8 0 m

Main Erection Unit +B4 Variant: +B4—V1

Source: Eli Lilly

2

2

Source: Eli Lilly

508 Modules

2

Modularization/standardization

2

Modularization/standardization

Simulator Comos_PFD Comos P&ID

I....

Engineering tools

Templates Templates Templates System and process map

ERP (SAP)

Tendering Engineering Procurement

& Logistics Construction

Comos

Info from as built

BOQ

/cost BOQ BOQ cost BOQ as_built

3D-CAD Templates

2

Electr.... Templates

Exchange of data between engineering tools and cost estimating is not necessary anymore as the cost objects are attached to the engineering objects

Comos asEngineering

Database

Object

storage

PFD Hook Ups Isometrics

Units/ subunits Elements / Subelements

Estimate

Unit rates

Process- and 3D-object oriented cost models 2

Experience and current situation 1

Content

3 Possible services and results

The deliverables are optimized for quick results by selecting first a reduced scope (discipline and product line) and a meaningful work split

Deliverables of Aerni consulting:

• Project Management or consulting of Client project manager

• Design of a new integrated estimating workflow • Defining unit rates and and rate codes

• User requirement specification,

• System specification, design specification,

implementation (ev worksplit between Client, Aerni consulting and Comos),

• Formatting, assembling and loading of necessary historical data

• Installation and module testing • Training of workflow with lead users

Results: Short term

• New estimating workflow for a discipline in one product line

• Process catalog with BOQs and cost in Comos to

estimate cost and prices for one discipline and product line

Medium term

• New estimating workflow • Process catalog with BOQs

and cost in Comos to estimate cost and prices

Process- and 3D-object oriented cost models 2

Experience and current situation 1

Content

3 Possible services and results