Digitalization of Capital Project Mgmt.

Abstract / Summary (the Why, What and How)

• Current environment and product development processes and its components are described.

• Statistics/track record indicates projects being behind schedule and over budget majority of the time. (Why).

• A set of modular Solutions to address this situation using current technologies will be discussed (What and how).

• An approach to assess the readiness of organizations to address and leverage the factors will be presented.

• Discussions to follow as needed.

• Stretch Goals • Potential exists for 25% improvement in Cycle time

• Accuracy of first time fit …..

Takeaway Today

Initiative Opportunity

Solution Finding

Summary and Path Forward

Key capital project trends over the last 5 year

Projects have regularly exceed budgets and deadlines Implications

Completion costs 59%

higher than initial

estimates (incremental

US$500b)

Loss of shareholder

confidence and an

increase in cost of capital

Projects’ net asset values

(NAVs) reduced between

12% and 65%

Loss of revenue due to

missed production dates

Source: EY research and analysis

2000 2015 +28%

50% Upstream 78%

Process Overview Global Energy & Utilities

Program & Project Management

Ten

de

r/B

id

Man

age

me

nt

Engineering, Procurement, Construction

& Project Execution

Op

era

tio

ns

&

Mai

nte

nan

ce

Supply Chain

EOL

Installed cost Break-down

Equipment vs Procurement

Systems Driven Product Development

Energy and Utilities Solution Definition

Strategic Planning

Governance Compliance & Risk

Automated Proposal Mgmt

Supplier Relationship Mgmt

Program & Project Mgmt.

Resource Planning &

Logistics Construction Package

Handover & Virtual commissioning

Regulatory compliance

Construction, Modernization

2D / 3D ( CAx )

Plant Design & Engineering

Engineering Bill of Asset

Supplier Collaboration & Vis

Digital Engineering

Document & Records Mgnt

Configuration Management

Single source Collaboration

Enterprise Data Management

Supplier integration

Service Planning & Logistics

Maintenance Execution & Support

Operation dashboard

Training , Health & Safety

Operation, Maintenance , End of life

Single digital thread across multiple Orgs.

Owner/

Utilities

Tier-1:

Technology Supplier/EPC

Architect Engineer

Tier-2:

Large EPC Contractors, Equipment

Suppliers

Tier-3/4:

Small Equipment Suppliers

Niche Service Providers

Own & Operate Entire Plant

Technology, Design & EPCM

Civil, Piping Works, BOP, Critical Mech / E&IC Equipments

Pipes, Steel, Construction, Fabrication, Pumps, Valves, HVAC, Cranes, lighting

Maturity Level Characteristics

Digitalization of capital project mgmt.

Siemens

Krish.krishnamurthy@Siemens.com

Tel: 714 235 0469

Thank You…