Strategies for supplier collaboration in complex projects

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Strategies for supplier collaboration in complex projects February 2008 Nils-Olof Persson & Sune Horkeby

Strategies for supplier collaboration Content Content Siemens Finspång Background and Products Project Rya Short presentation PLM Application IT Target architecture The complexity Information Volume Process Harmonization Information Models PLM Maturity Stages Business needs and Project Portfolio Management Lesson learn and Summary Page 2 February 08 Nils-Olof Persson & Sune Horkeby

Finspång - Long Industrial Innovation History 1496-1540 Iron mill in Finspång; Royal mill 1560 1620 Manufacture of cannons started 1641 Louis de Geer I bought the mill & property 1668-1685 Louis de Geer II built Finspång House 2003-1893- 1988- GEC-ALSTHOM 1913-2000- Kiruna Östersund Trollhättan Göteborg Stockholm Finspång For internal use only / Copyright Siemens Industrial Turbomachinery AB 2007. All rights Malmö reserved. Page 3 February 08 Nils-Olof Persson & Sune Horkeby

Rya - Completed plant vision View of the completed plant Page 4 February 08 Nils-Olof Persson & Sune Horkeby

Plant data and project set up The Project definition Combined cycle cogeneration, power generation: 260 MW, Heat generation: 290 MW Fuel: Natural gas, fuel consumption 300 million Nm3/year Operation time: 7-8 months/year Total efficiency 92,5% at 100% GT load and 100% Supplementary firing Power generation 1 250 GWh/year and District Heat generation 1 450 GWh/year corresponding to 30% of the electrical demands and 25% of the heat demand in Gothenburg. Site situated in the oil harbour at Rya wood on Hisingen in Gothenburg. ALSTOM Power Sweden AB, later SIT AB, was selected turn-key supplier of the new CHP plant. Consortium with NCC Sweden that was responsible for civil and buildings. Page 5 February 08 Nils-Olof Persson & Sune Horkeby

Project scope Scope of delivery SCC-800 3x1DH Turn-key. 3xSGT800 from I4 in Finspong 3xHRSG from ALSTOM Power, Czech Republic 1xSST900 from I2 in Finspong, Sweden Condensers from Sahala Works Oy, Finland Pipe installation from YIT, Finland Electrical installation from Emil Lundgren, Sweden Buildings from NCC Sweden All installation, erection and commissioning, including completion and performance tests. Page 6 February 08 Nils-Olof Persson & Sune Horkeby

Key figures for the Rya Project Total order sum 1670 milj SEK Number of major components: 20 000 Number of purchase contracts; 50 main contracts Minor contracts 500 Final documentation 1200 binders Page 7 February 08 Nils-Olof Persson & Sune Horkeby

Project Coordination Main Applications Sales & Planning ProCon MS-Project and Primavera Financial and Purchase SAP/R3 Engineering and Design 3D - Layout; PDMS 2D - Electrical; El-Master 2D - Process; ProCAD Collaboration Customer & Suppliers PIRS on Lotus notes ( mail, letters, contracts etc. ) TCC on www (drawings, specifications ) Lastbryggan on Lotus Notes (Load Carrier for supplier collaboration) Page 8 February 08 Nils-Olof Persson & Sune Horkeby

(Plant & Component) (Plant & Component) Change Master Exchanged Data Objects: Document, Product Structures, Change Master Layout Generation Sketching (Plant & Component) Digital Mockup Clash & Tolerance analysis (Plant & Component) Oil&Gas Division will consolidate the current IT landscape to common CAD/PDM/ERP systems harmonized with Energy SIT AB - IT application migration plan: Process/Area System Out System In PLM Target Architecture (Industrial) Portal 2D/3D Visualization Change Management Intranet View (Access) Document Management Product Master & Structure Mgmt. Serialized Parts Mgmt. Service Event Mgmt. Portal Services Entitlement Full Text Retrieval PG Portal SAP NetWeaver Portal 2D/3D Visualization Change Management Extranet View (Access) Document Management Serialized Parts Mgmt. Product Master & Structure Mgmt. Service Event Mgmt. Supplier Collaboration Customer Collaboration Call Tracking (CRM) Issue Tracking Sales Configuration ProCon Tacton SERVICE PLANT INDUSTRIAL CORE COMPONENT Design Mechanical Ideas, Cadds5 UGS/NX *) Process&Electrical ProCAD, ElMaster Comos CAM EdgeCAM UGS/NX-CAM *) PDM TC (Pulse) UGS/Teamcenter *) ERP SAP R/3 (PRD) SAP (Atlas) For internal use only / Copyright Sieme ens AG 2007. All rights reserved. Logistics Service PDM CPD Mgmt. CPD Authoring PCM Change Management Spare Part Documentation Catalogue Content Management Spare Part Selection Document Graphical visualiz. Management Spare Part RfP Spare Part Ordering Availability Check t.b.d.* Siemens Hybrix Power Plant / Fleet Diagnostics Operational data Capturing Operational data analytics Siemens Power Diagnostics Middleware SAP NetWeaver XI Plant Engineering Piping & Instrumentation Diagram Instrumentation & Control 2D Electrical Innotec COMOS 3D Plant Design AVEVA PDMS 2D/3D Visualization Document Management Change Management Product Master & Structure Mgmt. Product Compliance Requirements Engineering UGS TeamCenter Exchanged Data Objects: Document, Product Structures, Integrated Design Environment I ERP (ATLAS) Service & Maintenance Structure Mgmt. Fleet Data Management Standard Parts Mgmt. Serialized Parts Mgmt. SAP ERP Central Component 2D/3D Visualization Document Management Engineering Change Management 2D Drafting Autodesk AutoCAD M Calculation & Simulation CPD Component 3D Geometry Design UGS NX PTC Pro/E Product Master & Structure Mgmt. Standard Parts Mgmt. Variant Management UGS TeamCenter Visualization (DMU) Piping, Tubing & Support Design UGS NX AVEVA PDMS Pixel graphic editors Equipment Modeling UGS NX AVEVA PDMS Documentation & Publishing External Partner Collaboration Internal & External Engineering Collaboration NC-Programming UGS NX Diverse Page 4 Siemens specific UGS NX Diverse UGS TC Visualization Diverse (GTX Raster) Diverse PLM Roadmap Team Oil&Gas PLM/ERP journey for the next forthcoming 5 years. *) UGS NX/Teamcenter acquisition of Siemens A&D For internal use only / Copyright Siemens (Siemens Industrial PLM Turbomachinery Software) AB 2007. All rights reserved. Page 9 February 08 Nils-Olof Persson & Sune Horkeby

Plant design 2D/3D Today systems Mechanical / Process Heat tracing list Setting list P&I Delivery limits Instrument list Installation Isometric PDMS Lay-out Pipe list Procad Valve list Instrument Hook-up Base position list Aggregate list Equipment list Bently/ Listappl Data sheet Electrical Control System Suppliers Layout I/O-list PC Circuit diagram Apparatus list Electrical load list Connect Wire table Cable list Simatic DB Page 10 February 08 Nils-Olof Persson & Sune Horkeby

Plant Design 2D/3D Future system Setting list P&I Heat tracing list Mech / Process Delivery limits Instrument list Valve list Installation Isometric PDMS Lay-out Pipe list Base position list Instrument Hook-up Aggregate list Equipment list Comos Data sheet Supplier El Layout Control System P&I and Circuit schema PC Circuit diagram Apparatus list Cable list Simatic DB List document Electrical load list Wire table Page 11 February 08 Nils-Olof Persson & Sune Horkeby

Today's strengths in Finspång (NX/Teamcenter) CAD CAD Management Complete E-BOM Supplier Portal Parametric Authoring of CAD data Drafting Model Metadata Management Simple Rendering Knowledge Fusion Manage of CAD data Fill out attributes Release of data Create of neutral files (JT IGES) Export and import of CAD data Share information (Multisite) Drawings SAP material Change Management Document Management Web interface Complete Engineering BOM Interfaces to different CAD systems Digital signatures on PDF Internet Platform to integrate Supplier Service Providers Other Partners Built-in viewer Based on Microsoft SharePoint Server Page 12 February 08 Nils-Olof Persson & Sune Horkeby

Tomorrow s strengths in Oil & Gas NX TeamCenter NX/CAD Teamcenter/PDM/Complete E-BOM Parametric Authoring of CAD data Drafting Model Metadata Management Simple Rendering Knowledge Fusion Manage of CAD data Fill out attributes Release of data Create of neutral files (JT IGES) Export and import of CAD data Share information (Multisite) Harmonized Release Drawings SAP material Option &Variants Change Management Document Management Web interface Complete Engineering BOM Interfaces to different CAD systems Digital signatures on PDF BOM creation support Harmonized workflows Internet Platform to integrate Supplier Service Providers Other Partners Built-in viewer Based on Microsoft SharePoint Server Integrated with the rest of TeamCenter better supplier integration (JT) SAP/ERP/Complete M-BOM Page 13 February 08 Nils-Olof Persson & Sune Horkeby

Project planning Project conditions Contract signed 2003-10-20 Site establishment 2004-0606 EXW 3xHRSG 2005-05 EXW SST900 2005-07, EXW 3xSGT800 2005-09/10 Start stationary commissioning 2005-12 Start rotating commissioning 2006-04 Hand over to customer 2006-12-15 Page 14 February 08 Nils-Olof Persson & Sune Horkeby

RyaKVV: Process Multiple shafts for extended load range and part-load efficiency DH-driven district cooling Supplementary HRSG Firing (All HRSG) Seawater-cooled DH auxiliary cooler allows independent power generation Page 15 February 08 Nils-Olof Persson & Sune Horkeby

Equipment layout Flue gas Air Natural a gas Gas turbine HRSG Power District heating Heat condensers Steam turbine Page 16 February 08 Nils-Olof Persson & Sune Horkeby

Gas turbine SGT-800 Air Intake Combustors Flue Gas Outlet Diffuser Compressor Turbine Page 17 February 08 Nils-Olof Persson & Sune Horkeby

RyaKVV:Heat Recovery Steam Generator Supplementary firing burners Distribution plate Drum and evaporator Superheater Membrane walls Catalyst Economizer (SCR) DH-cooled economizer Flue gas to stack Hot flue gas from GT Cold DH water Hot DH Water Condensate Superheated steam to steam turbine Page 18 February 08 Nils-Olof Persson & Sune Horkeby

Project execution story Take over, December 2006 Page 19 February 08 Nils-Olof Persson & Sune Horkeby

Siemens Process Framework Develop Product Development Process Strategic product planning Design Sales preparation Design implementation Validation Lifecycle PDP@PG I As Developed Core products Design Customer specific Acquisition As Designed Project Execution Manufacture actu Project Handover Project opening & clarification Detailed Planning Dispatch Constructionn / Installationn Commissioning Acceptancee Project close out Warranty on Purchasing Projectacquisitio Preacquisition Bid Preparation Contract negotiation As Sold As Clarified As Ordered As Delivered As Built PM@PG I Propose Request Network Planning Prepare Maintain Page 20 February 08 Nils-Olof Persson & Sune Horkeby

PLM Product Lifecycle Management PLM/PDM overall scope PLM Product Lifecycle Management Product Mgt Product Portfolio Mgt Product Development Product Order Mgt Product Service Launch Concept and Specifi- cation Development and Design Calculation and Design Procurement and Manufac -turing Operatio n and Mainte- nance Dispose In scope are all tools for: PDM, CAD, CAM PDM focus GloBus/TC initiative iti ERP focus Atlas/SAP initiative iti Out of scope is: ERP (PLM), CAE In scope: technical data Out of scope is: financial data, administrative and logistic data In scope: interfaces to ERP, CAE, others Page 21 February 08 Nils-Olof Persson & Sune Horkeby

Common Information Model (E.g. Dokument revision-dokument master) Article_Individual_Structure_Relation_Document 0..* KKS_Structure_Relation_Document 0..* 1 1 Document_Structure_Relation_Document_Master Document Article_Structure_Relation_Document_Master 1 0..* 1 0..* 0..* 1 Document_Revision Article_Structure_Relation_Document Document_Structure_Relation 0..* Document_Structure_Relation_Document_Revision 1 1 0..* -Revision : String -Issued by department -Issued by -Document number -Title -PDF Quality -Creator ID -Decimal number -Language -IEC document kind -Generated document number -Order number -Security level -Technical area -Unit number -Document number Type Databas -Nativ system 10..* Article_Structure_Relation_Document_Revision Based on 0..* 1 Document_Revision_Representation +Language Digital file Physical file Page 22 February 08 Nils-Olof Persson & Sune Horkeby

Common Data Model What does this include? The Common Data Model includes all business relevant data objects for the CPD Management layer (Teamcenter), all mandatory attributes and the mapping of those objects and attributes to the Atlas data model. Object class: Part OC: Classification OC: Part Revision PG Mandatory ATLAS Team Center Part Material Master Item Part Identifier MM Identifier Item Identifier Part Type MM Type Material Type Part Short Text MM Name Item Name Part Status MM Status Item Status OC: Dataset for: 3D Data model MS Office 2D Drawing (dxf,..) Native formats (PDF, JT) OC: Part Structure Page 23 February 08 Nils-Olof Persson & Sune Horkeby

In order to approach PLM in a structured way, different maturity stages should be understood and considered PLM Maturity Model e of integrat tion Degre Today status: Improving of basic PDM/PLM functionality needed Integrated PDM Collaborative PLM Advanced PLM Increased degree of PLM maturity is reflected in two major dimensions Functional coverage Integration PDM Basics To proceed to upper levels of maturity, the industry specific elements of the lower levels should be fulfilled Breadth of functional coverage Page 24 February 08 Nils-Olof Persson & Sune Horkeby

PLM Needs & Solution Description (Concept and Methodology) Business capabilities Business Needs Description Work area (scenario) Work area (scenario) Work area (scenario) Needs Consolidated Work areas Solution Description Engineering capabilities Scenario Scenario Scenario UC UC UC Design & implementation Global implementation parameters Func / SOA Business rules / security Information model Solution components configuration PLM System configuration PLM System environment TC setup Customer configuration Page 25 February 08 Nils-Olof Persson & Sune Horkeby

The PLM Challenge executive level mindshare for PLM transformations Transformation Communication Solution/Scope Communication Product/Software Communication Page 26 February 08 Nils-Olof Persson & Sune Horkeby UGS Corp. 2005. All rights reserved. 4

Processes, Information and Main Application Projects (SIT AB; Finspong/Trollhättan view) Siemens Process Framework G = Siemens globally harmonized data models L = Local, not/partly harmonized data = Finspong/Trollhättan defined rollout CRM SCM G G Sales Configuration System (Tacton) New Oil&Gas ERP System (ATLAS; SAP) PDM G New Oil&Gas PLM System (GloBus; UGS/Teamcenter) New Oil&Gas PLM System (GloBus; UGS/Teamcenter) ver 2 PLM CAD Process&El CAD Mechanical CAM CAD Process&Elec (Comos) L CAD Mech. Ideas -> NX (Gas) L L G L G G G CAM-Production EdgeCAM ->NX CAM CAD Mechanical CADDS5 -> UGS/NX (Steam Turbines) Support Processes L Energy/Oil G & Gas Information/Data Model Concepts and terms for setup of processes and data models in the IT systems 12.07 02.08 04.08 06.08 08.08 1008 1208 02.09 04.09 06.09 08.09 10.09 12.09 02.10 04.10 06.10 08.10 10.10 2008 2009 2010 Page 27 February 08 Nils-Olof Persson & Sune Horkeby G 12.10

How to succeed with Supplier collaborations? Lessons learn and some thoughts Very good to have: PLM Vision & Mission agreed with the Management (short & long term) An agreed process framework (to some level) Defined standard terminology and plant structures IT Target architecture in placed including integration platform Robust infrastructure needed The strategy for Supply chain Collaboration Target application & integration - Define Capabilities and Basic principles as soon as possible Actively defining common definitions of concepts and terms Provide assistance for process improvements, knowledge management and business development by using an information model Reducing cost for own tool development > Out-of-the-box strategy (e.g. Teamcenter/Briefcase and/or SAP/C-folders) Be active to follow up projects and contribute with knowledge and experiences for the next one s Page 28 February 08 Nils-Olof Persson & Sune Horkeby

Thank you for your attention! Please address all correspondence to: Sune Horkeby, IT Strategy&Co-ordination (sune.horkeby@siemens.com Nils-Olof Person, Project Manager (nils-olov.persson@siemens.com) Siemens Industrial Turbomachinery AB SE-612 83 Finspong Sweden Siemens Industrial Turbomachinery AB No part of this document may be reproduced or transmitted in any form or by any means, including photocopying and recording without the written permission of Siemens Industrial Turbomachinery AB For internal use only / Copyright Siemens Industrial Turbomachinery AB 2008. 2007. All rights reserved. Page 29 February 08 Nils-Olof Persson & Sune Horkeby