Managing Information throughout the Asset Lifecycle. Executive Overview ARC Perspective of ALM... 3

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1 ARC WHITE PAPER By ARC Advisory Group FEBRUARY 2010 Managing throughout the Asset Lifecycle Executive Overview... 3 ARC Perspective of ALM... 3 Mustang s Starting Point: Traditional... 4 Implementation Roadmap... 5 Initial Results... 6 Going Forward... 8 Recommendations... 9 VISION, EXPERIENCE, ANSWERS FOR INDUSTRY

2 ARC White Paper: Making Data Real January 2010 Schedules Budgets Analyses Permits Designs BOMs POs Contracts Status Reports etc. Project Performance Handover (Operate & Maintain) (Design & Build) Funded Projects Asset Performance Asset Portfolio (Evaluate & Select) Analyses Permits Designs Procedures Practices Recipes Materials Contracts Warranties History etc. Modification Requests New Facility Requests Needs of the Key ALM Processes is Shared by All ALM Processes Individual ALM IT Strategies Must be Coordinated Project (PIM) ALM (ALIM) Asset (AIM) Asset & Project Portfolio Info (APPIM) ALIM Improves ALM Performance Through Better Handover Processes and More Efficient Exchanges! 9 ARC Advisory Group 2 Copyright ARC Advisory Group ARCweb.com

3 ARC White Paper: Making Data Real January 2010 Executive Overview is a quintessential part of every Asset Lifecycle (ALM) process. For EPCs, information management processes and tools including document and change management and efficient handover are critical for running a successful business. These same processes and tools can also provide significant ALM and Asset Lifecycle (ALIM) benefits for the EPC s clients. Mustang Engineering, a well-respected engineering, procurement, and construction (EPC) management company, implemented an AVEVA NET information management platform and solutions For EPCs, information management processes toolkit to streamline data management and data and tools including document and change management and efficient handover are critical for running a successful business. These same processes and tools can also provide handover. AVEVA NET enables Mustang s project personnel to interface with digital data in a wide range of formats and provides a secure environment significant Asset Lifecycle for global project teams. Since (ALM) and Asset Lifecycle (ALIM) implementing AVEVA NET, Mustang has significantly improved its handover processes. This benefits for the EPC s clients. Mustang, an EPC, has begun to use AVEVA NET provides benefits for both Mustang and its not only for data handover but also as the hub for all project information management, from project commencement to completion. owner-operator clients. In addition to using AVEVA NET for data handover, the company has also begun to use the solution as the hub for all project information management, from project commencement to completion. ARC Perspective of ALM All ALM activities depend upon an efficient flow of information and every ALM process must address an information management strategy. Asset portfolio managers need information about future customer needs and the status of existing assets to evaluate and refine capital project proposals. Project teams need analysis and design information at progressively refined levels to select the right solutions and to coordinate many different project activities. They also need timely feedback on all activities to keep expenditures and schedules on track. Copyright ARC Advisory Group ARCweb.com 3

4 ARC White Paper: Making Data Real January 2010 The EPC creates and consumes design and build information during the project stages and hands this over to the owner-operator firm to enable future modifications of the facility. Additionally, the owner-operator needs operating and maintenance information for plant startup and this must be collected or created during the project. The data sets and documents may be collected or created by the EPC (or the owner-operator, if they play an active role in the project). Project Performance (PPM) Handover Asset Performance (APM) Funded Projects Asset & Project Portfolio (APPM) Modification Requests New Facility Requests Operations and maintenance personnel need information about the equipment to optimize its use and availability and information about quality and resource consumption to maximize the return on assets. Mustang s Starting Point: Traditional Mustang is a 22-year-old EPC firm that provides a full range of services for offshore and onshore production facilities, pipeline projects and non-energy process services at industrial facilities. Mustang s Project (PIM) department supports the information management needs of six business units, including more than 14 office locations around the world, each with its unique information management 4 Copyright ARC Advisory Group ARCweb.com

5 ARC White Paper: Making Data Real January 2010 requirements and challenges. The company sought a better way to streamline the handover of data to clients throughout project execution and upon project completion. In the past, project information management consisted primarily of document control, with handover a loosely defined workflow where data was buried in hundreds of hard-copy vendor books and technical documents. Upon final document handover, owner-operators had to find the required information by manually mining the data from the documents and drawings in order to populate their various operations databases. This process was inefficient and often introduced errors relating to data reliability, consistency and completeness. Subsequently, EPCs and owner-operators have added sophisticated electronic database applications to generate and manage their information. This adds further complexities to the data handover. Electronic data can introduce compatibility issues between the EPC s and client s systems, requiring reconciliation between a variety of engineering data management systems and classification libraries. Indeed, electronic data can vary within the EPC s own business units! With workscope progressing in offices around the globe, Mustang found it challenging to collect data from many different systems and maintain consistency. For Mustang, and EPCs in general, increases in project complexity, costs and ever-tightening project schedules required improved efficiencies in project execution. Implementation Roadmap To solve these project execution challenges, Mustang set out to find a data management system that could provide a master tag and document register for use by both its own engineering groups and owner-operators operations groups. This required the ability to compare data from a variety of sources and report on any discrepancies. The ideal system would work with datasets and libraries associated with owner-operators existing asset management systems, yet be able to adjust to whatever application the Mustang business unit or their clients required. It would be quickly and easily configurable by Mustang s PIM staff, without requiring the aid of Copyright ARC Advisory Group ARCweb.com 5

6 ARC White Paper: Making Data Real January 2010 expert software programmers or extensive training, and be Web-enabled for access by global project team members. After a brief proof of concept, Mustang chose AVEVA NET as its information management platform because it fulfilled Mustang s criteria, including scalability. Mustang felt that the solution implementation was applicationneutral and offered potential opportunities to improve asset information management and engineering workflows in the future. Initial Results Mustang initially deployed the solution on selected brownfield projects. The company soon extended deployment to a variety of different project scenarios, including brownfield, greenfield, onshore, offshore, FEED and detail design projects ranging in size from a few thousand engineering person-hours to more than one million. To date, no expensive offsite training sessions have been required. Mustang developed gateways to its in-house project management and its document control system, and configured AVEVA NET gateways for their preferred engineering applications and for project-specific requirements. This allowed existing engineering work processes to proceed as usual, but enhanced with efficient automated data checks. Mustang experienced a significant improvement in the handover process. Instead of the traditional end-of-project event, handover became a continual process throughout the detail design phase. For example, Mustang engineers now begin populating the commissioning database just after the start of detail design and the initial handover of the instrumentation database to the company s internal automation business unit. AVEVA NET allows Mustang to provide progressive handover and tailor the data handed over to suit the requirements of the recipients. This progressive handover approach improves the timeframe required for operational readiness, an exceedingly important milestone for project owners. 6 Copyright ARC Advisory Group ARCweb.com

7 ARC White Paper: Making Data Real January 2010 Mustang s Progressive Handover In addition to data handover improvements, data consolidation into AVEVA NET enables simple queries and advanced searches to expose existing data gaps. Examples include items indicated on P&IDs, but not yet created in the 3-D model, or where a discipline does not comply with client specifications for handover. Since AVEVA NET retains from where data originates and does not overwrite data duplicated from multiple sources, inconsistency and quality checks are routinely run as updated data is pulled into the system. This provides early data definition and ongoing validation of project information and data - a lessons learned aspect that Mustang feels is very advantageous. AVEVA NET improved change management through its ability to make associations between tagged objects, the documents on which they are referenced, and other associated tagged objects. This provides insight into the cascading effect of a change and enables the project teams to quantify the effect of changes. The value-add includes the ability to run these same checks on subcontractor and vendor data, ensuring a more complete handover of their information. Mustang also found that AVEVA NET s ability to collect and directly transfer vendor-provided tagged items to engineering teams for inclusion in their applicable databases helps to reduce manual data entry. Another advantage Mustang realized is easy access to copies of 3-D models by the project teams, without requiring special training to navigate. This opened a previously underutilized information source. Copyright ARC Advisory Group ARCweb.com 7

8 ARC White Paper: Making Data Real January 2010 Going Forward The AVEVA NET implementation provides Mustang s PIM team with a solution for gradually replacing the old warehouse model of data collection with a modern information management solution. This results in a quantum improvement in data quality and project execution. Now information is placed on a secure, collaborative platform for all authorized personnel to see and use as needed. The data handover process has been streamlined and Mustang no longer has to utilize a fixed, standard set of applications that may or may not directly correspond to a client s data information platform. The EPC can respond to each individual client, responding with speed and agility to client data information needs, regardless of the client s technology platform. Each party has better control of information flow and distribution. In addition, Mustang can now offer its clients more than just basic data handover. Opportunities Beyond Handover: Project and Change, Tag Level Measurement AVEVA NET s open architecture and ISO compliance will allow Mustang to develop additional applications to meet the needs of internal engineering teams or clients. In the future, through AVEVA NET, the PIM team can help set up a client s asset management system per the client s requirements, ensuring future interoperability between the client and Mustang, and expanding value throughout the entire lifecycle of the asset. 8 Copyright ARC Advisory Group ARCweb.com

9 ARC White Paper: Making Data Real January 2010 Mustang s PIM team looks to leverage their success to date and develop additional applications of the project information platform. Recommendations Project and asset information are clearly critical to an effective ALM program and organizations need to establish effective strategies for managing this valuable asset. ARC s research suggests that this should include four interlocked strategies that address the unique needs of each ALM process and the frequent exchanges between these processes. As shown in the diagram, these include Project, Asset Lifecycle, Asset and Asset and Project Portfolio. Project (PIM) ALM (ALIM) Asset (AIM) Asset & Project Portfolio Info (APPIM) Technology is at the core of every information strategy. As there are many disparate stakeholders who contribute to and rely upon an organization s ALM information, their choice of technologies and information standards is critical. Ideal solutions enable efficient exchanges, convenient access by all stakeholders and solid management of change. Mustang Engineering s application demonstrates that AVEVA NET meets these criteria and thus should be considered by every asset-intensive organization. Copyright ARC Advisory Group ARCweb.com 9

10 ARC White Paper: Making Data Real January 2010 Analyst: Russ Novak Editor: Paul Miller Acronym Reference: For a complete list of industry acronyms, refer to ALM Asset Lifecycle ALIM Asset Lifecycle API Application Program Interface B2B Business-to-Business BPM Business Process CAGR Compound Annual Growth Rate CAS Collaborative Automation System CMM Collaborative Manufacturing CPG Consumer Packaged Goods CPM Collaborative Production CRM Customer Relationship DCS Distributed Control System DOM Design, Operate, Maintain EAM Enterprise Asset EPC Engineering Procurement and Construction ERP Enterprise Resource Planning HMI Human Machine Interface IOp Interoperability IT Technology MIS System OpX Operational Excellence OEE Operational Equipment Effectiveness OLE Object Linking and Embedding OPC OLE for Process Control PAS Process Automation System PLC Programmable Logic Controller PLM Product Lifecycle RFID Radio Frequency Identification ROA Return on Assets RPM Real-time Performance SCM Supply Chain WMS Warehouse System Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. For even your most complex business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple, yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit and shareholder value. All information in this report is proprietary to and copyrighted by ARC. No part of it may be reproduced without prior permission from ARC. This research has been sponsored in part by [Name of Client]. However, the opinions expressed by ARC in this paper are based on ARC's independent analysis. You can take advantage of ARC's extensive ongoing research plus experience of our staff members through our Advisory Services. ARC s Advisory Services are specifically designed for executives responsible for developing strategies and directions for their organizations. For membership information, please call, fax, or write to: ARC Advisory Group, Three Allied Drive, Dedham, MA USA Tel: , Fax: , [email protected] Visit our website at 10 Copyright ARC Advisory Group ARCweb.com

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