The 2015 Emerson Global User Conference was held at the Colorado Convention Center in Denver. On opening day, Emerson Process Management held a press conference on project certainty. During the event, a number of Emerson experts, partners, and end users met.
The 2015 Emerson Global User Conference was held at the Colorado Convention Center in Denver. On opening day, Emerson Process Management held a press conference on project certainty. During the event, a number of Emerson experts, partners, and end users met.
Seek convenience
Billions of dollars are lost each year in oil and gas exploration and production, hydrocarbon and gas processing, chemicals, pharmaceuticals and other processing industries due to cost overruns and schedule delays. Jim Quist, president of Emerson Systems and Solutions, said 65 percent of projects valued at more than $1 billion worldwide and 35 percent of projects valued at less than $500 million worldwide are reported to fail - defined as at least 25 percent over budget and 50 percent behind schedule.
"When projects are not sustainable because of budget overruns and schedule delays, industrial companies are walking on eggshells." "Nyquist said. "This summer, third-party research we commissioned showed that the complexity of the project was a major contributor to these issues. We can't keep copying. While the fall in oil prices has been a wake-up call, the best examples of the same projects are not enough. We need to fundamentally change the way we do things. "Some customers are reporting that we need to reset the bar industry-wide in terms of project cost and complexity, generally in the 20-30% range, and that these projects need to be executed with greater predictability and reliability."
Nyquist adds that a recent study by Industry Project Analysis (IPA), which looked at 400 global oil and gas projects between 2000 and 2015, found that for a standardised $1 billion project, if the companies with the best performance were to execute these projects, they would be more effective. Project cost savings of 54% and time savings of 49%. He explained that a typical $1 billion project by a company with the worst performance would cost more than $1.6 billion and take four years and five months, while a project by a company with the best performance would cost only $750 million and take two years and three months.
"If we can take the three worst performing companies and upgrade them to the best performing companies today, that's a $430 billion a year opportunity." "Nyquist said. "That's why we need to look at the project in a different light, and that's why we promote project certainty." Project certainty is Emerson's innovative way of achieving optimal performance by cutting costs, reducing complexity and adapting to change."
Cut costs and reduce complexity
First, project certainty begins with upfront communication during the client's engineering and design studies, defining project objectives and identifying high-impact strategies to achieve them. Although automation accounts for only about 4% of the investment in most projects, automation can streamline the project process beyond the scope of automation.
Kevin Jackson, Emerson's vice president of global project operations, reported that project certainty reduces labor costs by eliminating unnecessary work, improving the efficiency of necessary work and eliminating rework, as well as eliminating the need for resurfacing pipes, structural modifications and electrical components. This reduces material costs and promotes engineering design that is "fit for purpose" and at a reasonable scale.
"For example, in a recent project that deployed 18,000 I/ OS and required 32 cabinets, the use of CHARM's electronic cabling technology reduced the number of conventional I/O points by 37% to just 20 cabinets. The electronic wiring technology using smart junction boxes reduced I/O by 95 percent and required only one cabinet, saving a total of $14 million." "Jackson said.
"In addition, a recent integrated well testing solution saved $3.5 million by eliminating separator, valve and meter requirements in seven units, reducing line laying requirements by 60 percent, and reducing engineering, construction and leak points." In addition, by identifying common and important components and conducting cost/risk analysis of these components, we have reduced the capital expenditure of parts by $23 million for end users."
