Evolution of Information Management & Strategies for Tomorrow
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1 Houston, 2 June 2010 Evolution of Information Management & Strategies for Tomorrow Stephen Airey MBA in Project Management (Cranfield), Chartered Engineer
2 Today s Agenda Information Management What is it? Why manage it? Challenges & Strategic Approaches 2000 to 2003: Europe 2003 to 2004: Caspian Basin 2005 to 2007: Middle East Developing your Strategies Some Lessons Learned
3 Leadership Moment
4 Leadership Moment LEADERSHIP MANAGEMENT PRODUCE CHANGE Sometimes dramatic POTENTIAL TO PRODUCE New products, ways of doing business etc. PRODUCE PREDICTABILITY and order POTENTIAL TO PRODUCE Key results for stakeholders reliability, quality, onbudget Leadership introduces & stewards change...management deals with change
5 Information Management What and Why
6 What is Information Management? Asset Information (AI) Functional Physical Execution Information (EI) Project Registers, Status, metrics and trends Commercial Registers, Status, metrics and trends Compliance Information (CI) Contracts, Purchase Orders, Warranties etc. Audits, Inspection release, Certification Financial Compliance (SOX, IFRS) License to Operate, Permits, Regulatory Approvals..Strategy based on risk / criticality of Information to Business objectives
7 Why Manage? The information Mountain Rate of Production Long lead Item purchase & Contractor selection Evaluation & Selection EP Phase Management of PO s, contracts, Invoices, Changes, Queries Execution & Compliance Information (EI / CI) C Phase - Management of completion & Hand over Asset Information (AI) Documents & Data PROJECT DBM FEED Complex / Large 6 Months 1 Year 2 4 Years Simple / Small Weeks Months Variable
8 Strategy - Scale & Risk of not managing Total Installed cost Asset Information Execution & Compliance (TIC) (AI) (EI / CI) $100 Million > 20,000 > 5,000 $1 Billion > 150,000 > 50,000 $10 Billion > 250,000 > 500,000..As scale increases, EI and CI need to be managed like AI
9 Why Manage it? Risk Mitigation. AI EI CI Governance Asset Integrity Start up & Operation Assurance Compliance Monitoring, Tracking and Reporting Global Execution People & Processes Volume Time..Strategy needs to be EXPLICIT, and driven by the Business
10 Challenges & Strategic Approaches 2000 to 2003: Europe Lifecycle Mapping & Management, or.collect the AI
11 Challenges Offshore developments in Information Management (IM) cascading into onshore practices e.g. 3D design Engineering Data management Focus by Owner / Operators on Asset Information Master Tag & Document registers Document centric progress measurement Asset Tag based completions and hand over tracking Population of O&M applications prior to start up Utilization of engineering design tools in Operational phase Small Project, with Big Project Options..Data centric approach, with ability to CRAWL, WALK, RUN
12 Lifecycle Mapping & Management (A) ENGINEERING (B) (B) CONSTRUCTION (F) (C) (D) (E) MECHANICAL COMPLETION (G) VENDORS (E) A. Tag Indexes (Lists) & Document X-References, IFD / IFC Documents and Engineering Data B. Tag Indexes (Lists) & Document X-References, IFC Documents, CWP s C. Purchase orders / Contracts, IFT / IFP Documents, PO specific MTO s D. Shipping / Installation Documentation E. Preservation, Start up and Operational Documentation F. Construction Status Data and As- Built Documents G. Mechanical Completion Status / Dossiers and As-Built Documents COMMISSIONING..Type information in once, and manage transfer / exchange / re-use
13 Lifecycle Mapping & Management (A) ENGINEERING (B) A. Tag Indexes (Lists) & Document X-References, IFD / IFC Documents and Engineering Data B. Tag Indexes (Lists) & Document X- References, IFC Documents C. Purchase orders / Contracts, IFT / IFP Documents, PO specific MTO s D. Shipping / Installation Documentation E. Preservation, Start up and Operational Documentation F. Construction Status Data and As-Built Documents G. Mechanical Completion Status / Dossiers and As-Built Documents (B) CONSTRUCTION (F) (C) (D) (E) MECHANICAL COMPLETION (G) VENDORS (E) COMMISSIONING (1) (2) (3) (4) (5) Electronic Asset Information For Operation 1) Tag Data / X- reference Data / Engineering Data & Docs 2) Tag Data / X- reference Data / Equipment Data & Docs (Manuals, Operating Dossiers etc.), Spares data 3) X-Reference Data (Manual Valves), Construction / Fabrication Records, As-Built docs 4) Mechanical Completion Dossiers / As-Built Docs 5) Commissioning Dossiers / As-Built Docs..Electronic, Phased hand over to reduce Cost / Time / Effort HAND OVER TO OPERATIONS
14 Did it work? Yes AI and CI for PO s, Construction & Mechanical Completion Crawl, Walk, Run - Multiple projects, increasing TIC and data / document volume Engineering focused on Tag based information delivery and maintaining a single source of truth e.g. Registers and databases reflecting issued documents PO information delivered within 2 months of physical delivery PO retention / penalty from 5 to 25% Early awareness in Tender process and dedicated support Repeat orders. Simple tools, scaled up Excel then Access for data transfer PowerPoint training & education..mapping the lifecycle to glue the organization together
15 Challenges & Strategic Approaches 2003 to 2004: Caspian Basin Standardization & Centralization Collect big AI Oh, and some of the EI / CI
16 Challenges 22 EP / EPF / s 200 direct Suppliers Multiple 3 rd Party interfaces (Government, Regulatory bodies, Shipping & Transportation etc.) 1,500,000 formally issued documents Logistics, transportation and materials into Caspian region Over 150,000 line items Permitting and Certification requirements Collection of 150,000 Tags / 3,000,000 data fields..ai Focus at start, adding critical EI / CI as volume and complexity understood
17 Organizational Challenges Program Management Monitor, Review & manage process Program & Facility / Design Integrity Management Design Integrity EC & Supplier Documents Documents For Approval EP / EPF / Management Teams Various Documents Facilities Integrity EC & Supplier Documents People / Process / Systems (Data & Document Hub) Execution Contractors & Direct Suppliers Design & Construction Deliverables EP s / EPF s / s Construction Deliverables As-Built Construction Commissioning Deliverables As-Built / Operating Data Hook-up, Commissioning & Start up Information For Operations Customer Operations..Risk transferred from Operator to PMC Delivery Centric approach
18 Strategic Approach Owner / Operator focused on Project management Contractor (PMC) to coordinate and manage AI and key EI / CI for transport, logistics and construction Mandated Tools & process for Contractor AI creation and Delivery Coordinated execution through information delivery to PMC Detailed AI Requirements for Formats and delivery Monitoring key to understand execution status Drive towards KPI s Key EI Processes standardized / mandated across all organizations
19 Strategic Approach Process Strategies Mandated Engineering Tools Central electronic hub for AI / EI submission and validation Mandated business processes Online, Internet Portal for Document & Data exchange Supply Chain Management From Engineering Requisition to Warehouse inventory data Contract Administration Tracking of Contract commercial Status, including Milestone & Invoice verification Interface & Change Management Key Performance Indicators Engineering Data Warehouse for collection and eventual population of operational systems..focus on collection, validation and Reporting
20 Did it work? AI? Yes, but High level of education & support required Organizational buy-in / understanding / Timing buy-in / understanding & Business process impact EI? Yes, but Strategic Change & Change Management Reporting / KPI s & organizational understanding / acceptance Customization, not configuration Tools but no People..Focus on bigger business as usual, not a new way of doing business
21 Challenges & Strategic Approaches 2005 to 2007: Middle East First, lets agree our business drivers & IM strategies to support
22 Challenges Vendor Operator Vendor S/C S/C A PMC J MT MT B MT MT H C MT D MT PMC Role - Manage the communication / coordination between the major Project participants 12 Primary Points of Contact E MT MT Potentially 144 Channels of Communication F G They may be an active participant in the process (review, approve, audit, MT comment etc.), or require oversight (interface management, schedule alignment etc.). For contractual / commercial assurance, we need to capture and store what is promised & delivered from each party to ensure we can efficiently and effectively manage any issues in the future
23 Strategic Approach Strategy to Deliver: Collect information from providers centrally, cost effectively Collect information electronically Maximise use of s systems / work processes Mandate the use of Company processes / systems where integration and / or sharing can add value Mandatory use of Project naming / coding conventions To provide Reference data - electronically To ensure standards applied consistently across project
24 Strategic Approach Vendor Operator Vendor S/C S/C A PMC J MT MT B MT Internet Facing Central Hub MT H MT MT C MT MT MT G D E F
25 Strategic Approach Enablers & Key Tools Enablers IM Personnel, in EACH Location IM Helpdesk Mandated Key Business Processes Internet facing tool set: Central Lists / Reference data FEED & Contract Document access Project Communities HSES, QA, News & Bulletins etc. Contract Administration, Change & Correspondence Management Contract Invoice management & SAP integration Document / tag number requests Tag Data & Document submission Automated Document distribution / Comment / Approval Interface / Technical / Concession Query & request Management Purchasing / logistics / material management tracking
26 Did it work? Yes for AI On-line, automated delivery of information i.e. Tag / Document / Tag Data s started delivery within 3 months of Contract award Yes for key EI Processes Document delivery / review / return Tender Bid clarification Contract change management Invoice Management & SAP integration Interface management Yes for CI On line, real time submittal of documentation part of the workflow
27 The Information Mountain 6 months into Deliverable Last Period This Period Change in Period Document Numbers Allocated 208, ,971 9,729 Documents listed in Index 53,310 57,863 4,553 Documents Issued to Company 17,689 18, Transmittals Processed 1,411 2,638 1,227 Documents issued for Review 850 1,943 1,093 Technical Queries (TQ) Raised 2,129 2, Interfaces Raised 7,046 7, Interface Deliverables 14,955 15, Contracts Registered PO s Registered Correspondence Raised 6,180 8,379 2,199 Tag Data Received 9,807 10, Change Notices Change Requests Invoices Registered
28 Developing Your Strategies Some Lessons Learned
29 Developing your Strategies Lessons Learned Large Project means identifying critical success factors & Key Risks early, and getting buy in at the top Define how you will address risks using a combination of: People Process Tools Technology Mandate process and Tools for key risks e.g. Contract Change / Invoice / Technical query / Interface management Beware - Everybody wants a solution! Joint Ventures & TQ process / Document access
30 Developing your Strategies Lessons Learned Start Early 6 Months behind schedule on Day 1! Original Go live plan for August 06, First tools deployed February 06 for Bid management Cultural challenge increases exponentially over time Get your requirements in the Tender, Evaluation criteria & Contract Keep it simple Workflows must be simple to be useable / re-useable DON T try and manage the signatures on a form, manage the forms lifecycle Education, education, education & Performance Simple IS / IT / internet understanding an issue Expectations / Competition - Google & Internet Banking
31 Houston, 2 June 2010 Evolution of Information Management & Strategies for Tomorrow Thank you. Questions, comments or feedback? Stephen Airey MBA in Project Management (Cranfield), Chartered Engineer
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