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1 intergraph Procurement, Fabrication & Construction seminar agenda

2 Integrating Enterprises to Support Smarter and Leaner Construction Execution Procurement, fabrication, and construction represent a complex balancing act between profit-making and risk-taking that requires effective planning and control. Otherwise, it could severely hinder a company s ability to supply a product, design and construct a plant, and start-up a facility on time and within budget. In today s highly competitive environment, time to market is of highest priority, which results in the major project phases engineering, procurement, and construction overlapping more than ever before, adding further complexity to this precarious balancing act. Modern systems can be a great help in improving communications and streamlining information exchange between the various project stakeholders, ensuring that everything remains on track and that the ultimate goal of an on time start-up and safe, profitable operation is achieved. It s clear therefore that if contractors invest in solutions that help improve project execution efficiency and performance for their part of the lifecycle, like those available in Intergraph s integrated procurement, fabrication and construction solution, contractors can play their part in helping the client achieve their primary goal of shortening time to market. Frequent changes in market conditions, global sourcing, geographically distributed plant design and engineering, and remote locations of construction sites all make the project life cycle increasingly dynamic by nature. It requires a great deal of communication and supervision to successfully achieve project completion for all stakeholders. This seminar aims to explain and demonstrate the value and benefits of integrated information management and digital data exchange for individual contractors and for project execution overall. Significant capital sums are invested. The client the plant or facility owner who ultimately pays the final bill expects each project stakeholder large or small to provide value for money. Forward thinking contractors will do their utmost to reduce cost and waste, particularly if it is caused by inefficient work processes or outdated work practices. Examination of existing business processes often uncovers areas where software automation might enable efficiency savings to be made. Major CAPEX projects invariably involve a chain of contractors passing information from one party to the next. Today, much of that information transfer is still via paper methods, causing the information to be re-keyed by each contractor in the chain, increasing the risk of transcription error. Unfortunately, errors that go undetected usually only become apparent when problems in material supply, fabrication or construction occur, either causing lengthy schedule interruptions or costly rework to have to be performed. Procurement, fabrication, and construction activities are usually on the critical path, so anything that causes delay during these phases can have a huge impact on the overall project schedule and capital expenditure. Over run, and penalties imposed by the client can be severe! 2

3 Why you should attend this event Project stakeholders Does your business suffer from the following challenges? Engineering, Procurement & Construction companies: Inconsistent material coding used by engineering, procurement and suppliers often results in incorrect materials being ordered and supplied. Using separate engineering and procurement databases causes inconsistencies to always exist between material required and what s actually supplied, causing overspending, which in turn hinders cash flow. When engineering modify the design causing material requirements to change, procurement is slow to react, leading to delays in ordering and supply of material required, negatively impacting construction efficiency. When new material requirements are received by procurement from engineering, it s difficult to understand how quantities already ordered or to be ordered need to be adjusted to avoid surpluses or shortages from occurring. Uncertainty as to when materials ordered from suppliers will actually arrive at contractor workshops or at the construction site, plus little or no control in terms of being able to check whether the goods are in good condition or are damaged and so have to be returned to suppliers. At the end of most projects significant material wastage occurs beyond acceptable limits, impacting bottom line profitability. No view or understanding of material consumed by contractors making it difficult to assess whether the right material is being used, or is being consumed at the rate expected during fabrication and construction. Having no visibility of work done makes it difficult to understand the performance of sub-contractors in terms of schedule adherence, accuracy of claims, or that they are achieving the right level of quality demanded by the project. Having no ability to compare and measure supplier performance and effectiveness results in a weak negotiating position on material prices and delivery. Our suppliers expect us to work with their reports causing us to enter their information manually to update our system. We would much prefer it if they could input their information directly into our system giving us a complete view of their competitiveness and performance. 3 Construction & fabrication sub-contracting companies: Our workshop uses spool sheet drawings but we receive complete pipeline isometrics. Excessive man-hours are spent re-drafting the client s design to create shop deliverables and in doing so, errors are often introduced. The drawings received from clients don t show sufficient details to correctly and accurately fabricate pipe spools. Manually adding missing details on paper copies or editing drawing files in CAD is both time consuming and error prone. Handling design revisions, which happens frequently, is always problematic. Having no easy way to understand what s changed makes it difficult to make the right decisions so that rework and waste is minimised. Often, material needed soonest, has to be stored away from the place where it is needed, whilst material that is currently out of the construction scope or planned sequence, takes up valuable space in the laydown area. Not knowing exactly when equipment and material will arrive on-site causes construction teams to spend more time idle than working productively. When the engineering contractor makes a significant change to the design, the delay in having visibility of the change means it is often not addressed until late in the project. If the area of the plant has already been constructed, meaning access is difficult or limited, it can be expensive to fix the problem if de-construction is needed to address it. Drawings received from different piping fabricators working on a project often vary in terms of presentation and content. This increases the number of technical queries that have to be made so that mistakes are avoided. Often material that was thought to have been reserved has either been reserved by someone else also, or has been redeployed before we come to use it, causing delay whilst replacement or alternative material is sourced.

4 Owner operators: CAPEX effectiveness is compromised by out-dated working practices in the supply chain. Difficulty getting an accurate assessment from contractors that quality levels are being achieved, leads to doubts about the integrity, safety and reliability of the asset to be received at handover. Progress reports provided by contractors don t always reflect the current status of the physical plant construction. Increased capital spending caused by poor control and bad materials management practices employed by the engineering design contractor. Avoidable schedule delays and hold-ups occur due to inefficient change management practices operated by contractors, which cause out of sequence deliveries of materials, pipe spools etc. negatively impacting construction progress. As-built handover documentation provided by different contractors, much of which is still paper-based, is inconsistent in terms of presentation and content. Consequently, plant personnel find it difficult to reuse the information to operate, maintain and inspect the facility. This results in increased OPEX during operations and maintenance because they will usually want to recreate it later once the plant is commissioned and operational. If so, this event is for you! Join us to understand how Intergraph s integrated procurement, fabrication and construction solution comprising of SmartPlant Materials, SmartPlant Spoolgen, and SmartPlant Construction, can help... Engineering, Procurement & Construction companies: Ensure engineering design requirements and material supply for construction are always synchronised, enabling surpluses and shortages to be minimised, reducing waste and overspending. Fabrication sub-contractors: Boost productivity, lower labour costs, and assure quality through the elimination of in-efficient, error prone manual work processes. Construction sub-contractors: Plan and create work packages more efficiently in line with actual resource and material availability, thereby increasing the productivity of on-site construction teams; whilst having complete control and flexibility to respond dynamically, accurately and appropriately when engineering changes occur. Owner operators: Maximise return on capital expenditure, minimise construction risk, and shorten your time to market. Intergraph will host a series of seminars at various locations throughout Denmark: April 24th in Munkebo at Lindø Industripark United Kingdom: May 8th in London at Novotel London West Hotel & Convention Centre Russia: May 16th in Moscow at Holiday Inn Sokolniki Norway: June 12th in Stavanger at Cyviz, Forus Denmark: September 17th in Frederikshavn 4

5 A G E N D A Start End Intergraph Presenter Registration Welcome and introductions Integrating Enterprises to Support Smarter and Leaner Construction Execution Paul Martin and SmartPlant Materials: Total Materials Supply Chain Management for Plants and Projects Break and refreshments SmartPlant Spoolgen & SmartPlant Spoolgen Plus: Automated Production of Isometric, Welding & QA Documentation for Accurate Shop Spool Pre-Fabrication and Efficient Piping Construction On-Site Paul Martin Lunch and break SmartPlant Construction: The Future of Lean Construction Management Today! Q&A Paul Martin and Closing summary Paul Martin Close

6 Smarter and Leaner Construction Execution Integrate Procurement, Fabrication & Construction About Intergraph IIntergraph is the leading global provider of engineering and geospatial software that enables customers to visualize complex data. Businesses and governments in more than 60 countries rely on Intergraph s industry-specific software to organize vast amounts of data and infuse the world with intelligence to make processes and infrastructures better, safer, and smarter. The company s software and services empower customers to build and operate more efficient plants and ships, create intelligent maps, and protect critical infrastructure and millions of people around the world. Intergraph is part of Hexagon (Nordic exchange: HEXA B), a leading global provider of design, measurement, and visualization technologies that enable customers to design, measure and position objects, and process and present data. Intergraph, the Intergraph logo, and SmartMarine are registered trademarks of Intergraph Corp. or its subsidaries in the United States and in other countries.

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