Process, Power and Marine Division

Neeraj Saxena
Intergraph offers the best and broadest Software
Portfolio
 50 to 60%

ENGINEERING
MATERIALS
CONSTRUCTION

MANAGEMENT
Requirements Planning & Control
Acquisition/Contracting Strategy
Fab Shop Coordination
Construction Material Planning
Client Name & Job #
Process Name
THE BRIDGE

Getting Materials to the Jobsite REPLACE THESE LINES WITH

ACTUAL TITLE OF DOCUMENT
 REAL SAVINGS ARE BENEATH THE SURFACE
Mtl/Equipment Costs
Engineering Labor Costs
KNOWN Construction Costs
COSTS Inspection & Testing

Startup Delays Duplicate Effort Operational Delays/Lost Production

Inventory Costs Maintenance & Storage Costs
Expediting Fees Impacts of Construction
Mismatched Systems Redundant Data Entry Sequence Change
Cost of Changes
Multiple Approvals Life Expectancy Premiums for limited shop space
COST IMPACT OF INDECISION
HIDDEN COSTS

Training Costs
Compressed Procurement Audit for Consistency
Operational Costs Urgency Mode CHURN/Delay Costs
IT Support Costs Toxic Emissions Ease of Maintenance
Procurement Labor Air Freight Costs
Engineering Impact of LATE Vendor Information
Revisions
Spare Parts Engineering
Operations Expediting
Safety Costs Maintenance Effort

Specification Rework Product Liability

Changes Validating Invoices
2007. Intergraph Process, Power & Marine. All Rights Reserved.
4
Fast-track EPC projects
Engineering, Procurement & Construction
overlap is now the norm in industrial
construction

The good old days of EPC being phased

are gone.

Change is the norm - Managing change is

key.

Late material causes 25% direct labor time

loss

Accurate information for materials becomes

all-important

Non-integrated systems are inadequate for

EPC materials management
Project Materials RequirementsThousands
 .& thousands.& thousands of discrete items
36 1 2" Gasket 1.00 2006/08/14 2006/08/16

37 1 2" straight tee, SA-234 Gr WPB, Sch 40, BW 3.00 2006/08/14 2006/08/16

38 1 2", Elbow, LR, SA-234 Gr WPB, Sch 80, BW 1.00 2006/08/14 2006/08/16

39 1 3" straight tee, SA-234 Gr WPB, sch 40, BW 2.00 2006/08/14 2006/08/16

40 1 3" elbow, LR, SA-234 Gr WPB, sch 80, BW 4.00 2006/08/14 2006/08/16

41 1 Weldolet, 2 NPS sch 40 branch on 16 NPS 12mm wall pipe, CSA Z662, 1.00 2006/08/14 2006/08/16
A105N
42 1 Weldolet, 3 NPS sch 40 branch on 16 NPS 12mm wall pipe, CSA Z662, 2.00 2006/08/14 2006/08/16
A105N
43 1 Weldolet, 3 NPS sch 40 branch on 10 NPS 15.1mm wall pipe, CSA Z662, 2.00 2006/08/14 2006/08/16
A105N

44 1 Weldolet, 3 NPS sch 40 branch on 20 NPS 12.7mm wall pipe, CSA Z662, 3.00 2006/08/14 2006/08/16
A105N

45 1 Weldolet, 3 NPS sch 40 branch on 24 NPS 12.7mm wall pipe, CSA Z662, 1.00 2006/08/14 2006/08/16
A105N

46 2 3/4" Hex Plug MNPT, 3000#, A105N 2.00 2006/08/14 2006/08/16

47 2 Size 2" FLG, RTJ WN, CSA Z245. 12 GR 248 CAT 1/A105 1500LB Sch 40 1.00 2006/10/02

48 2 Size (NPS) 2 X 3/4 SWG CONC A234 GR. WPB Sch 40X80 2.00 2006/10/02

7
 Hundreds of purchase orders

Line
Item
LONG DISC OF PO/CO Num. Commodity Code Size1 Size2 Quanitiy

PIPE AND FITTINGS For 2 FLG RFWN A105

WELLPADS 1 1010101010400A1 2 0 CL.150 SCH40 74

PIPE AND FITTINGS For 3 FLG RFWN A105

WELLPADS 2 1010101010400A1 3 0 CL.150 SCH40 47

PIPE AND FITTINGS For 4 FLG RFWN A105

WELLPADS 3 1010101010400A1 4 0 CL.150 SCH40 39

PIPE AND FITTINGS For 6 FLG RFWN A105

WELLPADS 4 1010101010400A1 6 0 CL.150 SCH40 60

PIPE AND FITTINGS For 8 FLG RFWN A105

WELLPADS 5 1010101010400A1 8 0 CL.150 SCH40 15

PIPE AND FITTINGS For 10 FLG RFWN A105

WELLPADS 6 1010101010400A1 10 0 CL.150 SCH40 74

3 FLANGE RFWN A105

PIPE AND FITTINGS For 150 LB SCH 40 PER
WELLPADS 7 1010101010400N6 3 0 SPEC 5051 10

8
Item Questions
What do I need? How many?
When do I need each one?
Whats been requisitioned?
Whats been purchased?
What is the delivery date?
Is the date holding? Slipped?
How many do I have on
hand?
How many have been
received?
How many have been issued?
To whom has it been issued?
How many do I need to
complete the
spool/area/module/system?
What might be substituted with
engineering approval?
Whats in quarantine?
If the priority changes for
spool/area/module/system X
can I build
spool/area/module/system Y?
What am I short?
What can I build today?
What can I build in 10, 30, 60
days?
Do I have enough?
Do I have too many?
Can I return them and get $?
Item Questions

.have to be asked for thousands of items

Decisions have to be made continuously
based on analysis
Those asking the planning questions &
making the materials-related operational
decisions must have a robust and capable
tool
The system must support the transactional,
cross-functional work processes and the
decision-making

10
Materials Management
Key Benefits
Improved information for the project teams to:
process information electronically
input data only once
avoid hand-offs
manage change effectively
execute with a high degree of
standardization & less re-work
detect shorts and potential surplus
early
get the right materials to the work
front on time
get the facts regarding procurement
process and supplier performance

11
 Main Industry Drivers
Minimize project costs
Lower materials costs
Total surplus material typically 3%
SmartPlant Materials helps to reduce this to 1%
Reduce TIC by up to 3%

Reduce TTM
Compress project schedule
Integrated project execution
Better quality of information Improved execution efficiency

Risk mitigation
Improved estimating, planning and budgeting
Thorough cost and progress control
ROI
Total Material Cost
Assuming US$2Mn
3% over/short USD$60,000
Reduction to 1% = USD$40,000 Savings

Total Installed Cost

Assuming US$2Mn
Reduction in TIC to up to 3% = USD$60,000

Reduction in SG&A Cost

Upto to 2% of Total SG&A Cost
Total Engineering/Procurement/Construction Man-
hours Reduction
Early Revenue recognition due to compressed
project schedule
 Owner/Operator Customers

2007. Intergraph Process, Power & Marine. All Rights Reserved.

14
 Global Engineering & Construction Customers

2007. Intergraph Process, Power & Marine. All Rights Reserved.

15
 Typical Installation
All projects running in one Database
Project dependent set-up to meet project specific requirement
One Corporate Standard (SPRD Product Group)

Corporate Standards

E P C E P C E P C
Project A Project B Project Y
Project Standards Project Standards Project Standards

2007. Intergraph Process, Power & Marine. All Rights Reserved.

16
Complete Material Flow

Supplier 1
Inquiry
Engineering

Bids
Supplier ...
Purchase
Warehouse
REQ Procurement

PO
logistic Forecast /
Reservation
Price
Agreement
Expediting
Material Issue
Milestone
Based Planning
Balance
Corporate Material
Warehouse
What can the system do?
Standardization of all engineering items
Specification management systems
Interface with Design system
Bill-of-Material management (BOM)
Purchase Requisition (PR)
Vendor management
Request for quotation (RFQ)
Evaluation (Technical and Commercial)
Purchase of material (PO)
Expediting and logistic management
Material receiving and Warehouse Management
Material Issue, Spool tracking
Back Track history of item (On which BOM, REQ, PO etc..)
Major Work Processes
SPRD E&PI MSCM SITE
Engineering Procurement Construction
Piping Piping Piping Proc. PO Fabrication Materials Work Material
Traffic
Standards BOM REQ Planning Progress Tracking Receiving Packages Issuing

Instrument Instrument Instrument Supplier Inventory Simulation Contracts

Expediting
Standards BOM REQ Mgmt. Mgmt. & Forecast Management

Electrical Electrical Electrical OSD

Inquiries Inspection Reservation
Standards BOM REQ Handling

Civil Civil Civil Design

VDRs
Standards BOM REQ Changes

Equipment Equipment Equipment Bid

Standards BOM REQ Evaluation
Inter company
Collaboration
Other Other Other
PO
Standards BOM REQ
Major Work Processes
SPRD E&PI MSCM SITE
Engineering Procurement Construction
Piping Piping Piping Proc. PO Fabrication Materials Work Material
Traffic
Standards BOM REQ Planning Progress Tracking Receiving Packages Issuing

Instrument Instrument Instrument Supplier Contracts Inventory Simulation Contracts

Expediting
Standards BOM REQ Mgmt. Management Mgmt. & Forecast Management

Electrical Electrical Electrical OSD

Inquiries Inspection Reservation
Standards BOM REQ Handling

Civil Civil Civil Design

VDRs
Standards BOM REQ Changes

Equipment Equipment Equipment Bid

Standards BOM REQ Evaluation
Inter company
Collaboration
Other Other Other
PO
Standards BOM REQ
What is SmartPlant Materials?
Catalog/Codes for all Engg Disciplines
Piping Specifications
Transfer data to Design Systems
Catalog/codes ANSI,DIN,MSS,JIS,
ASTM,API,AWWA
Piping Specification

Bill of Material
Purchase Requisition (PR)
Inquiry
Purchase Order
Expediting, Logistics
Site Management
2007. Intergraph Process, Power & Marine. All Rights Reserved.
Coding Logic - SDB

Discipline based
Logically Structured Item Codes
Rule based management of Codes
Easy to create (drop down lists)
System controlled Part numbers (IDENTS)

Example
CODES
Interface To/From design Systems

SmartPlant Isometrics
Project Specs PDS
Dimensional Data
PDMS

THEN..
- Design definition
improves/grows..
SmartPlant Isometrics
SmartPlant SPOOLGEN
SDB Company
Codes

ANSI,DIN,MSS,JIS,
ASTM,API,AWWA
Major Work Processes
SPRD E&PI MSCM SITE
Engineering Procurement Construction
Piping Piping Piping Proc. PO Fabrication Materials Work Material
Traffic
Standards BOM REQ Planning Progress Tracking Receiving Packages Issuing

Instrument Instrument Instrument Supplier Inventory Simulation Contracts

Expediting
Standards BOM REQ Mgmt. Mgmt. & Forecast Management

Electrical Electrical Electrical OSD

Inquiries Inspection Reservation
Standards BOM REQ Handling

Civil Civil Civil Design

VDRs
Standards BOM REQ Changes

Equipment Equipment Equipment Bid

Standards BOM REQ Evaluation
Inter company
Collaboration
Other Other Other
PO
Standards BOM REQ
Bill-Of-Material Workflow BOM (Rev0)

NESTING
BOM (Rev1)

Plate BOM

PCF

Spool Drawing

Compare following
SM3D Revision
ISO with SPOOL
BOM (Rev1) SPOOL Revision

BOM (Rev0)
PO
REQ Workflow BOM (Rev0)

BOM (Rev1)

PCF
(REQ Rev0)

To
Procurement
(REQ Rev1) Or
ERP

Spool Drawing

Compare following
SM3D Revision
ISO with SPOOL
BOM (Rev1) SPOOL Revision

BOM (Rev0)
PO
Sample Reports
Major Work Processes
SPRD E&PI MSCM SITE
Engineering Procurement Construction
Piping Piping Piping Proc. PO Fabrication Materials Work Material
Traffic
Standards BOM REQ Planning Progress Tracking Receiving Packages Issuing

Instrument Instrument Instrument Supplier Contracts Inventory Simulation Contracts

Expediting
Standards BOM REQ Mgmt. Management Mgmt. & Forecast Management

Electrical Electrical Electrical OSD

Inquiries Inspection Reservation
Standards BOM REQ Handling

Civil Civil Civil Design

VDRs
Standards BOM REQ Changes

Equipment Equipment Equipment Bid

Standards BOM REQ Evaluation
Inter company
Collaboration
Other Other Other
PO
Standards BOM REQ
Purchasing Workflow
Inquiry

Purchase
Bids Supplier 1
REQ

Procurement

Supplier ...
PO

Engineering Price
Agreement Expediting

logistic

Screen
2009. Intergraph Process, Power & Marine. All Rights Reserved. display Sample Reports Warehouse
Major Work Processes
SPRD E&PI MSCM SITE
Engineering Procurement Construction
Piping Piping Piping Proc. PO Fabrication Materials Work Material
Traffic
Standards BOM REQ Planning Progress Tracking Receiving Packages Issuing

Instrument Instrument Instrument Supplier Contracts Inventory Simulation Contracts

Expediting
Standards BOM REQ Mgmt. Management Mgmt. & Forecast Management

Electrical Electrical Electrical OSD

Inquiries Inspection Reservation
Standards BOM REQ Handling

Civil Civil Civil Design

VDRs
Standards BOM REQ Changes

Equipment Equipment Equipment Bid

Standards BOM REQ Evaluation
Inter company
Collaboration
Other Other Other
PO
Standards BOM REQ
SITE

Warehouse Management
Inventory History tracking
OSD management
Material Receipt Work-package management
Over Issue tracking
SPOOL Fabrication Tracking

Warehou Warehous Warehouse

Material Issue
se A eB C

Forecasting &
Reservation Job Site

Sample Reports
Fabrication Tracking

2007. Intergraph Process, Power & Marine. All Rights Reserved.

Questions and Answers

32
SmartPlant Materials

33