Construction Project Saves $11 Million in 24 Months Using RFID Enabled Material Control

Transcription

1 Construction Project Saves $11 Million in 24 Months Using RFID Enabled Material Control Project located in the Canadian Oil Sands Realizes 467% ROI in the First Two Years of Implementation

2 Executive Summary Objectives of the Project Provide visibility into the location and status of critical construction materials Locate materials on the jobsite more efficiently Reduce construction contractor claims due to missing, difficult to find materials Improve the efficiency and productivity of construction contractors Integrate multiple data systems to provide one source of information regarding the status of materials Results Realized by Implementing an RFID-Enabled Material Control System Reduced the time spent searching for lost or not immediately found materials, saving $10,642,500 Total savings realized by tagging materials at the supplier or during the receiving process $942,808 o Reduced receiving time, saving $40,000 o Optimized OS&D Process, saving $525,000 o Improved cable management, saving $60,100 o Automated the receipt of valves and instrumentation, saving $100,000 o Eliminated the need for duplicate data entry to inventory ship loose items, saving $33,333 o Included detailed information on ship loose items, never before available, saving $100,000 o Provided visibility on the location and status of mechanical equipment to support preventative maintenance and engineering inspections, saving $84,375 Total savings realized by having integrated data systems $190,300 Total Project Savings - $11,775,608 in 2 years. Award-Winning Project Project Team won an internal company-wide Six Sigma Excellence Award for its implementation of Jovix INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 1

3 Table of Contents Executive Summary... 1 Project Description... 3 Primary Challenge: Project Material Visibility... 4 Mitigating Risks by Controlling Materials... 5 Solution Components... 5 The Jovix Solution... 5 Locating Materials... 8 Tracking Engineered Equipment...11 Pipe Spools...11 Cable Reels...13 Tagged Valves and Instrumentation...14 Vendor Supplied Ship Loose Items...14 Mechanical Equipment...16 Total Cost Savings for Tracking Engineered Equipment...17 Secondary Challenge: Integration of Multiple Data Systems...18 Integration with Procurement System...18 Future Plans for Expanding the Use of Jovix...20 Trailer Tracking...20 Hot Shot Shipment Avoidance...20 Preservation of Material...21 Work Progressing...21 Conclusion and Total Savings Calculations...23 INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 2

4 Project Description The Canadian Oil Sands are home to some of the largest oil and gas companies in the world, in addition to some of the biggest construction companies which produces a highly competitive atmosphere. One of the ways these companies are differentiating themselves is by deploying software, mobile devices and RFID technology to address common construction challenges, including: Provide visibility into the location and status of critical construction materials Locate materials in harsh conditions on the jobsite Reduce construction contractor claims due to missing, difficult to find materials Improve the efficiency and productivity of construction contractors Integrate multiple data systems to provide one source of information regarding the status of materials The EPC firm and the Owner/Operator for this project identified these problems and sought a plan to eliminate them. The following information provides a details on the implementation of mobility and auto-id on the project and provides an analysis of the savings realized by the EPC firm. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 3

5 Primary Challenge: Project Material Visibility Project materials are some of the most valuable assets to a construction site. Without proper visibility into the location, availability and status of materials, construction companies cannot plan or execute their work in an efficient manner. Visibility is not only necessary for material located on a construction site, but also for material in fabrication or transit to the site. Future material availability is a critical input into the construction sequence planning process. A lack of visibility into existing or future inventory will cause construction delays and negatively impact the construction schedule. The diagram below depicts the physical lifecycle of a material from the time that it is born in fabrication to the time when it is consumed into what becomes the operating asset through the installation process. Lack of visibility into the location, status of availability of materials throughout this entire lifecycle is the most significant contributor to lack of craft productivity on modern mega projects. Fabricate Expedite Receive Store Plan Request Issue Install Little or no visibility leads to material availability issues which prevents procurement from being able to feed the construction team with required material which can bring construction to a stand-still, resulting in lost man hours, idle tools and other impacts to productivity. It may also introduce additional safety risks due to rework activities and stacking of trades. The start/stop work cycle is not only inefficient but is discouraging for the craft, and introduces the possibility for short cuts or total disengagement from the activities at hand. Lack of visibility into material location, availability and status is not uncommon on Oil Sands projects. Significant snowfall can be expected in the region more than six months of the year. Laydown yards get covered with snow, making locating material an ominous and sometimes dangerous task. These issues culminate to create challenges for procurement and construction. The following sections outline the mitigation strategies that were used to address these issues on this project. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 4

6 Mitigating Risks by Controlling Materials The EPC Firm on this project reached out to Atlas RFID Solutions for assistance to mitigate the following challenges: Integration of existing proprietary procurement system with a comprehensive material control system the Jovix Solution, provided by Atlas RFID Solutions Tracking 70,000+ engineered items, including: o Pipe spools o Cable reels o Tagged valves and instrumentation o Vendor supplied ship loose items o Process and utility equipment (mechanical and electrical) Continuous visibility of materials from receipt at site, through multiple site transfers, to final issue to construction for installation The Jovix material control solution was implemented in March of 2012 to address these challenges. Solution Components The EPC Firm selected Atlas RFID Solutions to help mitigate issues while still in the conceptual stages of the project. Atlas worked with the EPC Firm to identify work processes that would be altered to support the user of modern technology and created a full implementation plan for the project. The solution was a combination of software, hardware and professional services. The Jovix Solution On this project, Atlas RFID Solutions deployed the Jovix Material Control solution. Jovix combines web-based server software with mobile and auto-id technologies to extend access to information to decision-makers in the field and automate the data collection process. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 5

7 The solution leveraged active RFID tags for material tracking purposes. These tags have the capabilities to stand up to the harsh elements and have proven to work in -40 C temperatures and have a lifespan of four to five years depending on the beacon rate. The beacon rate is the rate at which a unique signal is broadcasted from the tag. This unique signal can be read at a distance of approximately one hundred meters using mobile readers affixed to handheld computers that are running the Jovix Mobile software. One of the initial concerns of the RFID program was impact that the cold weather would have on the battery life of the RFID tags. Alberta is known for its harsh winters where -50 C is not uncommon. After two winters however, only negligible impact on the batteries from the cold weather has been recorded. The tags continue to function properly despite the cold temperatures and rough handling over the past two years. GPS-enabled mobile devices were deployed on the project site for field data collection. The Windows Mobile-based devices were coupled with Bluetooth barcode readers and integrated RFID readers. The RFID readers interpret the unique signal from each RFID tag in the field in order to calculate the location of the materials during the sweep process, as well as, guide the user to the material during the pick process. The devices Field pickers are directed to the exact material location using the mobile tablet and RFID tags. used on this project were selected for their rugged capabilities which made them an ideal fit for the harsh environment. The devices were also outfitted with heated cases to enable them to operate below their factory standard operating temperature of -20 C. As the world leader in deploying field mobility and auto-id solutions on construction sites around the globe, Atlas provides a wealth of experience on how to implement and operate systems in extreme environments. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 6

8 Vehicle-mounted readers were deployed to automate the process of updating the GPS location of materials stored in outdoor laydown yards. These devices are equipped with RFID readers, GPS receivers, and mobile tablets. In addition, chokepoint readers were installed at the entrance and exits of various sites around the project, as well as, the offsite marshalling yard. The chokepoint readers have the ability to capture reads as the RFID tags pass in and out of the various sites of the project including tags that are affixed to materials that are being transported on trucks between sites. The data collected in the field by these various devices was synchronized to a web-based server system. The Jovix software solution accepts the data collected from the field and automatically calculates updates to locations, statuses and transactions. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 7

9 Locating Materials A large percentage of major construction projects will face material issues at some point during the project s life cycle. Material control on a large project is a complex effort that has significant implications on the project schedule and budget. Not being able to produce material for the construction team can result in: Construction schedule delays Productivity reductions Wasted man hours spent searching for lost material Re-procurement and expediting of lost materials The EPC firm and the Owner/Operator recognized the negative impacts that ineffective management of material can have on projects and sought a solution that would enable them to address those issues. The EPC firm wanted the ability to turnover project materials in a timely manner to contractors, but continue to have visibility of the assets until the point of installation. The Jovix solution provided the EPC firm with the capability to release materials into the custody of the contractor, while maintaining that visibility into the status and availability of the materials all the way through installation. Five major contractors were granted full access to the Jovix system, which provided them with material visibility, as well as, a new tool to properly manage the materials within their custody. The contractors were also given handheld RFID readers to locate materials on the jobsite. The contractor s field pickers were able to download pick lists onto the Jovix handheld device and be guided directly to the specific materials required for picking. This GPS enabled location process significantly reduced the time required to find and pick materials, particularly during winter when the laydown yards are covered in snow. After an in-depth analysis, the project reported that finding materials using Jovix took approximately five minutes, while using a traditional grid method would take fifteen minutes or more per material. By changing the locating method, the project realized a total cost avoidance of approximately $3,000,000 over the two year life of the project. In addition to the locating time improvements, the project avoided unnecessary searching or mistaken reporting of items that could not be immediately found. Temporarily misplaced material can be defined as material that is not located at its last documented location. Many man-hours can be consumed trying to locate this material. Often these misplaced materials are never located and must be re-procured, which incurs additional fabrication, expediting, shipping INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 8

10 and receiving costs. Approximately 5% of items not immediately found (.05% of total materials) are never recovered and are re-ordered. Using those figures, the project estimated a total cost avoidance of $1,125,000 over the two years of the project by implementing an RFID-enabled tracking and locating system. Locating Materials Using RFID Total number of spools on the project Average cost per spool Percentage of spools not immediately found Total number of spools not immediately found Hourly Rate 30,000 spools $3,500 per item 10% of spools 3,000 spools $100 per hour 50% of temporarily lost spools take an average of 5 hours to locate $750,000 25% of temporarily lost spools take an average of 10 hours to locate $750,000 15% of temporarily lost spools take an average of 20 hours to locate $900,000 5% of temporarily lost spools take an average of 40 hours to locate $600,000 5% of temporarily lost spools are never found * re-procured items $1,125,000 TOTAL SAVINGS $4,125,000 *Assumption: Lost spools consume an average of 40 hours searching time. By trending this data out over the other material on the project managed with Jovix, the project realized a total cost avoidance of $10,642,500. The five major contractor s picking crews were able to find 95% of the spools with RFID tags on site within 30 minutes of looking. The percentage of spools which took longer than one hour to locate were negligible. Only three of 30,000 pipe spools have been re-ordered for project, demonstrating a locating accuracy using the Jovix solution of 99.99% of a two year lifecycle. The contractors were also able to increase their picking and material locating percentages, thus reducing operating costs by avoiding idle construction time. The cost savings shown above only consider the man hours spent looking for misplaced items and the cost to re-procure a portion of those items when they cannot be found. While Jovix does significantly decrease the time required to locate materials, as well as, the number of materials that have to be re-procured, the real value of deploying a material control solution is found in the increase in labor productivity. By providing construction with a tool that gives INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 9

11 them confidence in their ability to plan their work based off of access to accurate and timely material location, availability and status data, Jovix improves the efficiency of construction. By providing procurement with a tool that enables them to support the plan created by construction, Jovix ensures that construction realizes those productivity gains. The cost savings shown here do not contemplate the impacts to construction that result when a crew does not have access to the critical path materials necessary to execute their work. The costs of these impacts to construction productivity can significantly outweigh the costs to procurement discussed here. These costs associated with reduced construction productivity were not included in the customer s internal six sigma analysis and therefore are not included here. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 10

12 Tracking Engineered Equipment Over 70,000 pieces of material were identified with active RFID tags on this project, including all pipe spools, instrumentation, valves and cable reels. A unique process was determined for each material type followed a slightly different process with regards to the application of the tags which is common on Jovix projects. As part of the implementation process, Jovix deployment engineers develop a tagging strategy that determines which materials should receive what type of auto-id tag at what stage and location in the material lifecycle. The following sections provide details on the process used for each material type, along with the benefits realized by using Jovix to track each type of material. Pipe Spools A pipe spool is a fabricated piece of pipe created specifically for a unique location within an operating asset. These are engineered for a specific purpose and cannot be interchanged without instructions to do so directly from the engineering group. On this project, spools range from small bore 2 pipe to large bore 36 diameter pipe. RFID tags were applied to pipe spools during the fabrication process at the fabricator. Benefits to the EPC firm and/or Owner/Operator of attaching the RFID tag at the fabricator include: Automating the process of creating OS&Ds for shipments by scanning an entire truck load of materials at once. Automating the process of receiving materials by using gate readers at the entrance to the laydown yard Moving the labor required to associate RFID tags from the high labor area of Ft McMurray offsite to lower labor regions in Edmonton Once the spools arrived on site, the RFID reader at the project gate updated the material s status as on site/in inventory. The trailer load of spools would then proceed into the laydown yards where it would be offloaded onto dunnage. Because the electronic packing list was already available on INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 11

13 the handheld device, the receiving crew had no need for paper packing slips or manual tracking and could process the receipt electronically in the field. The project found that receiving spools using Jovix on mobile devices was three times faster than receiving with pen and paper. Therefore, the cost of receiving pipe spools was reduced by two-thirds of the originally forecasted labor costs. Receiving spools using Jovix resulted in total labor cost avoidance for the project of roughly $40,000. Cost Savings Receiving Pipe Spools Using Jovix Without Jovix : Number of Shipments 300 shipments Average Time Checking Material w/paper 1.5 hours Average Time Finalizing Paperwork for Submission 0.5 hours Average Rate per Hour $100 per hour Total Cost of Receiving Pipe Spools w/o Jovix $60,000 With Jovix Reduced Time to Receive Spools by 1/3 rd $20,000 TOTAL SAVINGS $40,000 Jovix also made the receiving process more efficient by: Eliminating paper from the field o Paperwork requires labor to manually enter into the system of record o Paperwork is susceptible to the weather and if paperwork is ruined, it costs time to go return to the office and reprint o Paper-based processes are susceptible to human error The digital receiving process in Jovix provided the receiver with access to material details such as sizes, weights and diameters that make the receiving process more efficient and are not readily available with a paper-based system that typically requires the receiver to return to the office to locate cut-sheets to assist in material identification INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 12

14 During the original manual receiving process, some items may get overlooked. The receiver would then be required to complete an OS&D report (Overage, Short and Damaged report). Having RFID tags attached to pipe spools prior to arriving on site dramatically reduced the number of shortages reported during receiving. If a spool was reported as a shortage, the item could be located via the Jovix system. If it was located on site, the shortage was erased. By improving the accuracy of this process, the project reported a savings of $525,000 by avoiding unnecessary time-consuming OS&D resolution processes. Savings on OS&D Reconciliation Using Jovix Total Cost of Spools Initially Listed as Shortage Total spools (300) x Avg. cost of a spool ($3,500)= $1,050,000 Total Cost Avoidance by Applying RFID Tags at Vendor Spools rectified by Jovix (0.5 or 50%) 0.5 TOTAL SAVINGS $525,000 Cable Reels A cable reel is a wooden or steel drum-shaped object used for storing electrical cable. The project used approximately 5,000 cable reels, containing 4.3 million meters of cable. The EPC firm determined the best time to attach the RFID tag on cable reels was at the vendor before it was shipped to site. Each cable reel for the project contained engineering tagged lengths of cable and was cut for a specific purpose on the project. In order to properly plan work, the electrical superintendents needed full visibility into the cable reels at all times. By attaching an active RFID tag to each of the cable reels, the processing time for receiving was dramatically reduced, which allowed material to be turned over to construction quickly and avoided construction delays. The project estimated that receiving cable reels using the original manual process took approximately ten minutes, whereas receiving the cable reels with the RFID tags took approximately one minute. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 13

15 Applying RFID tags to the cable reels prior to arrival on site offset labor costs by approximately $60,100. Cost Avoidance for Receiving Cable Reels Using Jovix Without Jovix : Number of reels (4,000) x Receiving Time (10 minutes) 40,000 minutes Total Man Hours (667) x Hourly Rate ($100 per hour) $66,700 With Jovix : Number of reels (4,000) x Receiving Time (1 minute) 4,000 minutes Man hours (66) x Hourly Rate ($100 per hour) $6,600 TOTAL SAVINGS $60,100 Tagged Valves and Instrumentation RFID tags were attached to all tagged valves and instrumentation by the crew members at an offsite warehouse prior to arrival at the project site. This dramatically increased the efficiency of the material receiving process. The receiving cost avoidance for instrumentation and tagged valves follows the same method of calculation as the cable reels and pipe spools. The cost avoidances realized by receiving the tagged valves and instrumentation via RFID tags was approximately $100,000. Vendor Supplied Ship Loose Items Ship loose components can be best described as items that are shipped separately from vendor supplied skids or equipment. These components represent many different materials such as: Structural steel, ladders, platforms Pipe spools Instrumentation Nuts, bolts, gaskets Electrical cable INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 14

16 These items were listed separately within the proprietary procurement system prior to arrival on site before the implementation of Jovix. Once the items shipped from the vendor, they were identified only as one lot in the procurement system. Ship loose items that are not broken down into the specific shipping bill of materials prevent users from having access to the data required for proper material receipt and request. To address this issue, the vendor supplied a printed packing list with the detailed information that needed to be entered into the system after receipt. In order to provide more visibility, all vendor supplied ship loose items were tagged with RFID. The field level workers used the Jovix Quick Add feature to separate each line item on the handheld device as they applied the RFID tag to the material. Once the handheld device was synchronized to the Jovix server, a list of ship loose items could be easily uploaded into the proprietary procurement system, which eliminated the need for duplicate data entry. Manual data entry is a very time consuming and expensive task. By eliminating this unnecessary step, the project reported a labor cost savings of $33,333. Below is the calculation on the cost elimination: Cost Avoidance for Ship Loose Items Using Jovix Without Jovix : Ship loose items (10,000) x Data Entry Time (2 minutes) 20,000 minutes Total Man Hours (333) x Hourly Rate ($100 per hour) $33,333 With Jovix : Number of reels (10,000) x Data Entry Time (0 minute) 0 minutes Data Entry was not necessary using Jovix $0 TOTAL SAVINGS $33,333 INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 15

17 Once the information was entered into the system, Construction Managers, Field Engineers and Superintendents were able to search quickly to find the correct information. Without digital access to that information, the construction management team would have to flip through thousands of pages of packing lists to identify the material required for installation of a work package. The cost avoidance of having the data readily available in the procurement system and Jovix eliminated approximately $100,000 of additional labor costs to the project. Mechanical Equipment The project received approximately 1,500 pieces of mechanical equipment, with parent/child relationships. These items included pumps, motors, vessels and tanks. All major equipment which came to site required an Engineer Inspection Report in addition to the material receipt. Engineers spent a significant amount of time searching for materials to be inspected. With the addition of Jovix, engineers were able to significantly reduce their time locating materials by using a handheld device. The engineers were able to take advantage of the handheld devices to complete the inspection and the final receipt. By adding RFID tags to the mechanical equipment and using handheld devices to complete the Engineering Inspection Report and receipt process, the project realized a labor cost savings of $84,375. Cost Avoidance for Mechanical Equipment Using RFID Mechanical Equipment (1,500) x Locations Not Accurate (25%) Searching for Materials (50%) x Locations Not Accurate (375) Calling/Involving Materials Team (50%) x Locations Not Accurate (375) Time Spent Search for Materials (187.5) x Average Time Spent (2 hours) Calling/Involving Materials Team (187.5) x Average Time Spent (1 hour) Hourly Rate for Engineer 375 items items items 375 hours hours $150 per hour TOTAL ANNUAL SAVINGS $84,375 INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 16

18 Total Cost Savings for Tracking Engineered Equipment Attaching RFID tags prior to the arrival of materials and utilizing Jovix functionality during the receipt process proved to be an extremely effective way to receive and manage materials. In total, the EPC Firm and the Owner/Operator realized a total labor cost savings of $520,308 by avoiding unnecessary manual work processes. Savings Using Jovix for Tracking Engineered Equipment Tracking Pipe Spools $142,500 Tracking Cable Reels $60,100 Tagged Valves & Instrumentation $100,000 Ship Loose Items $133,333 Mechanical Equipment $84,375 TOTAL SAVINGS $520,308 INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 17

19 Secondary Challenge: Integration of Multiple Data Systems Having a variety of systems working out of sync can cause serious issues for companies. The introduction of multiple systems not only poses data inconsistencies but can also lead to expensive training requirements if these systems are not managed or integrated properly. Integrating a new system to an established system will not only help avoid the data inconsistencies, but will also potentially reduce training costs. Data inconsistencies between systems can have extremely negative repercussions. If systems are not integrated properly, manual data imports/exports are required to move data between the systems. This can lead to two major issues: Significant lag time between data being updated in one or more systems Introduction of human error Data systems that are not integrated properly, or at all, prohibit the information from being synchronized in real time. This lag time can have negative consequences when users are prevented from having access to information in a timely manner. Systems that require manual imports and/or exports of data rely on human interactions to correctly transfer data from one system to another. This increases the likelihood that numerous errors will occur. Common manual data transfer issues range from data transpositions, timing inconsistencies and an inefficient duplication of work. Not having all systems integrated properly can result in negative impacts for projects and companies. It is critical to have a solid integration plan in place while managing multiple software platforms. In addition, data quality and reliability is essential to support the speed of construction. Integration with Procurement System In order to reduce the overall labor hours and drive real savings to the project, the Jovix system needed to be integrated into the existing system architecture. The primary system of record was a proprietary procurement system which was used to house all of the project s procurement and material data. As part of the integration process, a detailed integration plan was developed and implemented to keep the two systems in sync. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 18

20 The integration points that were developed to update each system are listed in the diagram to the right. Data is passed between the two systems automatically every ten minutes. After the integration executes, all updated data is present and available for field consumption. Synchronizing handheld devices to the Jovix database provides the field crew with the ability to have access to material information that was created in the procurement system and consumed by Jovix through the integration. Information that is now available to the field level worker includes: Shipping header and line item data Associated work packages for the material Material attributes including: material type, description, and dimensions Pick list header and line item data With the introduction of the integration and the access to information that it provided to field workers, the EPC firm was able to avoid the costly expense of manually updating two systems. The labor cost savings that resulted from the prevention of manual data entry saved the company an estimated $190,000 annually. Savings of Manual Uploads Total Hours on Manual Uploads Daily 5 hours Rate per Hour $100 per hour Days per Year 365 days Total Labor Costs Avoided Per Year $182,500 Total Hours Correcting Errors per Week 1.5 hours Rate per Hour $100 per hour Weeks per Year 52 weeks Cost per Year Correcting Errors $7,800 TOTAL SAVINGS $190,300 INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 19

21 Future Plans for Expanding the Use of Jovix Throughout the project, the Jovix system was tested in various ways to increase productivity. The project has identified new ways of using Jovix to prevent unnecessary operational costs of future projects. Jovix was applied to the following areas to test viability: Trailer Tracking Hot-shot material avoidance Preservation of material Work progressing of cable and other materials by zone identification Trailer Tracking The EPC Firm utilized Jovix to increase visibility on staged trailers of material for a five month period. Laydown space was not readily available and over 150 trailers were forced to be staged on the project site. The EPC Firm recognized a way to increase visibility by attaching RFID tags to the trailers, where the Vehicle Mount Reader could actively sweep and update trailer locations. Trailers identified with RFID tags can reduce costs on a project in the following ways: Automated trailer log creation eliminates manual logs and data entry Visibility into trailers that are ready for return helps to avoid a carrier s demurrage charges Ability to send construction crew members alert notifications when a hot trailer of materials arrives on site reduces waiting time Future applications could include associating RFID tags to all trailers prior to their arrival on site to allow instant visibility when a shipment arrives. Hot Shot Shipment Avoidance A hot shot material shipment is a shipping method using the fastest means possible to deliver material to the jobsite. A hot shot shipment is often an extremely expensive method of shipping and is used only when material is deemed critical and needs to be installed as soon as possible. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 20

22 In some instances however, a material may be sent via hot shot shipment and then remains on the jobsite for multiple weeks before being installed. Prior to RFID utilization, the project would have no visibility into the misuse or lack of communication between teams requesting this particular shipping method. By using the Jovix automated time stamps, companies have the ability to see the exact time that a material arrived at the jobsite and how long that material remained in a particular laydown yard before being installed. Having this visibility allows the construction management team to have information about which shipments could have been shipped using conventional methods, saving large sums of money on transportation. Having access to this data also allows the construction management team to hold sub-contractors accountable for unnecessary hot shot shipment charges. Preservation of Material RFID tags were attached to all major pieces of equipment on the jobsite. The RFID tags not only assisted in locating the material when requested by construction, but also provided value when locating the materials for Preventative Maintenance later in the project lifecycle. The bulk of the pieces of major equipment on the project required continuous maintenance. These routine maintenance activities required the contractors to locate the material numerous times. With RFID tags associated to the equipment, the contractors now the exact location where the activities need to be performed and can use the Jovix handheld devices to locate the materials directly. This information greatly reduces the time spent searching the laydown yards for items that require preventative maintenance. RFID tags were also kept on the mechanical equipment after installation to reflect the material s most current location. Future uses could include turning this data over to the Plant Operators for maintenance and servicing the operational equipment. Work Progressing Construction uses work progressing to track the progress of the project in order to determine whether it is on budget and on schedule. Currently, this process is very manual and requires that field workers record progress on paper and then enter the data into a system of record. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 21

23 There are significant opportunities to improve the efficiency of this process using mobile devices to digitize the data collection process, as well as, RFID to automate it. Materials with associated RFID tags are given a time stamp and a geographical location within a yard and zone in the Jovix system. These time stamps, if used properly, could benefit construction management with progressing activities by providing the exact time/date a material was staged at the workface for example. Capturing accurate information about material location and status would eliminate man hours associated to manually progressing the activities on the jobsite. In addition, because the updates are automated based on locations and process steps set by the EPC firm, the system would prevent false updates and reduce the chance of critical decisions being made on inaccurate or untimely information. INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 22

24 Conclusion and Total Savings Calculations Implementing Jovix and leveraging RFID-enabled technology proved to be a valuable tool to the both the procurement and construction teams on this project. A final cost avoidance calculation is listed below. The project estimated a savings of $11,775,608 using the Jovix system in the first two years of implementation a 467.6% return on investment. Summary of Total Project Savings Using Jovix Daily Export/Import of Data - Integration $190,300 Receiving Pipe Spools via Jovix $40,000 OS&D Reconciliation $525,000 Receiving Cable Reels via Jovix $60,100 Receiving Instrumentation/Tagged Valves via Jovix $100,000 Duplicate Data Entry on Ship Loose $33,333 Ship Loose Electronically Available $100,000 Mechanical Equipment $84,375 Locating Lost Material $10,642,500 TOTAL SAVINGS $11,775,608 With help from Atlas RFID Solutions and Jovix, the project mitigated three major issues with RFID-enabled technology by: Gaining 100% project material visibility Limiting the amount of re-procured or re-worked material significantly Successfully integrating data systems By addressing these issues, the project greatly reduced unnecessary man-hours and labor costs for the project, and avoided other potential costs that directly impact the project budget. Want to learn how Jovix can improve material control on your project? Contact Us Today! INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL Atlas RFID Solutions 23