2. Digitalization of Capital
Project Mgmt.

3. 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 …..

4. Takeaway Today
Initiative Opportunity
Solution Finding
Summary and Path Forward

5. 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%

6. Process Overview Global Energy & Utilities
Program & Project Management
Tender/Bid
Management
Engineering,
Procurement,
Construction
&
Project Execution
Operations&
Maintenance
Supply Chain
EOL

7. Installed cost Break-down
Equipment vs Procurement

8. Systems Driven Product Development

9. 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

10. 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

11. Maturity Level Characteristics

12. Digitalization of capital project mgmt.
Siemens
Krish.krishnamurthy@Siemens.com
Tel: 714 235 0469
Thank You…