Amish Sabharwal, EVP Americas with AVEVA, presented at the Rice Annual Forum on what the impending ‘Industry 4.0’ means for engineering and project execution. In this presentation, focused on intelligent information management in plant operations starting with trusted engineering data, Amish demonstrates the savings and risk-reduction potentials of maintaining a truly digital plant. View the presentation, and for more information on how AVEVA can help you digitalize your plants, visit www.aveva.com.

1. Rice Annual Forum
Amish Sabharwal, EVP Americas, AVEVA
November 14, 2017 | Version 1
CAN INDUSTRY 4.0
IMPACT PROJECT
EXECUTION?
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.

2. 2
Steam Assembly Line Automation Digitalization
Industry 4.0

3. WHAT DOES DIGITALIZATION MEAN?
“Digitalization is the use of
digital technologies to change a
business model and provide
new revenue and value-
producing opportunities”
-Gartner

4. DIGITALIZATION
AVEVA
Research results
October 2017
4

5. DEMOGRAPHICS
AVEVA - Plant digitalisation research results5
Chemicals/petrochemicals - US, Singapore, Russia,
Netherlands, Germany, Belgium
Pharmaceuticals - US, Ireland, UK, South Africa, France, Belgium,
Switzerland, Germany
Mining – US, South Africa, Australia, Russia, Ukraine, Chile, Peru
Power generation - US, Canada, UK, Germany, Japan, China,
France
Pulp and paper – US, Canada, Finland, Sweden, Brazil, Russia
Figure D1: “Within which primary sector is your organisation?”, asked to all respondents (400)
400 senior decision makers with responsibility or
involvement in software purchasing decisions were
interviewed in August and September 2017, split
across the below sectors and countries…
100
100
100
50
50
Chemicals/petrochemicals
Pharmaceuticals
Mining
Power generation
Pulp and paper

6. PRIORITISATION OF PLANT DIGITALISATION
AVEVA - Plant digitalisation research results6
Overall, across all sectors surveyed, plant digitalisation is most likely to be seen as the number one/top
priority (26%) compared to other areas of digital transformation
Figure 2: Analysis showing the percentage of respondents who report that each of the above
digitalisation initiatives are the number one/top priority for their organisation, asked to all
respondents (400)
Figure 3: Analysis showing the percentage of respondents who report that plant digitalisation is
the number one/top priority or a high priority for their organisation, split by sector, asked
to all respondents (400)
26%
16%
10%
7%
6%
6%
Plant digitalisation
Customer experience digitalisation
Workplace digitalisation
Marketing digitalisation
Financial digitalisation
Purchasing digitalisation
26%
34%
29%
25%
22%
20%
55%
54%
54%
58%
68%
48%
Total
Pulp and paper
Chemicals/petrochemicals
Mining
Power generation
Pharmaceuticals
Number one/top priority High priority

7. DIGITAL TECHNOLOGIES OFFERING THE GREATEST
OPPORTUNITIES TO EXPLOIT
AVEVA - Plant digitalisation research results7
Figure 25: Analysis showing the top seven most commonly reported digital technologies that offer the greatest opportunity to exploit, split by sector, asked to all respondents (400)
Cloud and intelligent information management are top priorities!
27%
20%
10% 10%
8%
6%
5%
Cloud Intelligent information
management
Robotic process
automation
IoT Advanced analytics Drones Sensors

8. INTELLIGENT INFORMATION MANAGEMENT
PLANT OPERATIONS PERSPECTIVE

9. IOT IS ALL ABOUT REAL TIME OPERATIONAL INFORMATION

10. CONNECTED
DIGITAL TWIN
Engineering
Information
Financial
Information
Maintenance
Information
Real-time Operations
Information
WHAT ABOUT ENGINEERING INFORMATION?

11. 3D Models
Shop
Drawings
Laser Scans
Isometrics
Line Lists Instrument
Index
Datasheets
P&IDs
1D
2D
3D
ENGINEERING INFORMATION
Status information /
Maturity
Relationships / Context
Engineering
Information

12. EPC
HANDOVER
Owner
THE PROBLEM?
Document
Centric

13. Drafting Table CADD
(PDMS)
Global
Execution
Digital
Asset
EPC 4.0

14. BARRIERS TO ADOPTION

15. EPC 4.0
ASK YOURSELF…
➢ Can we propagate engineering and design changes quickly and reliably across all
disciplines?
➢ Can we incorporate late changes to design with minimal impact to execution?
➢ Can we quickly and reliably recalculate TIC as the design changes?
➢ Can we incorporate additional cost reduction cycles without impacting schedule?
➢ Do our projects pass over from good ideas that are too late?
➢ Can we reliably and automatically produce engineering and construction
deliverables from your source tools?
➢ Do we resort to offshore “value” centers (EPC 3.0) to produce deliverables?
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.15

17. TYPICAL PROJECT COST BREAKDOWN

18. Engineering Supply Chain Fabrication/Install CommissioningCMT
EXAMPLE OF EPC DATA CHALLENGE
Tag
Data
set1
Data
set1
Data
set1
PO
Parts List
1
Req
Parts List
1
Req Req
Tag
Data
set1
Data
set1
Data
set1
Work Package
(Construction)
Scheduled
Activity
Docs List 1
Budget
Work Package
(Fabrication)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
Work Package
(Commissioning)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
PO
Parts List
2 Issued
Working
On Hold
Key to
Status/Lifecycle
Maturity
In Consistency
Pipeline
Vessel

19. WORK PROCESS
Change of
one single
Temperature
value
Insulation needs
to be added Insulation
clashes
Equipment Datasheets
need to be updated
and re-issued
Pipe stress
calcs need to
be re-assessed
Pipe has now
become safety
cricital
P&IDs need to
be updated
and re-issued
Spec
Change
Different
Instrument
arrangement
needed
Wrong
piping/equip-
ment specs
to suppliers
Planning
is no
longer
valid
Rework
Delays
Cost
Overrun
Company
reputation
Wasted
materials
Re-
ordering

21. 1. FEED (Front-End Engineering Design) Validation Deliverables
2. Level 3 Baseline Schedule
3. Constructability Inputs
4. P&IDs(Piping & Instrumentation Diagrams)
5. Equipment Specifications & Data Sheets
6. Maintainability Inputs
7. Vendor Data
8. 3D Model (& Clash Detection)
9. Piping Routing and Isometrics
10. Nozzles, Ladders, and Platform for Towers/Vessels/Tanks
11. Miscellaneous Pipe Support Drawings
11THE MOST PROBLEMATIC DELIVERABLES
This information is based on the research outputs by Research Team 320
supported by the Construction Industry Institute.™

23. 40%
Procurement
40%
Construction
10%
Engineering &
Design
Miscellaneous

24. (Love et al. 2014)
14.2%of contract value
Direct + Indirect
AVERAGE COST OF ENGINEERING ERRORS
This presentation is based on the research outputs by
40%
Procurement
40%
Construction
10%
Engineering &
Design
Miscellaneous

25. TYPICAL WBS HIERARCHY
Tasks
Area Area Area
Phase
(FEED)
Phase
(Detail Design)
Sub-Area
(Initial Design)
Sub-Area
(Initial Design)
Item
P-201
Item
V-205
Seawater
Cooling
Chill Water Ballast
E P C
System System
1 2 1 2
Long Lead
Equipment
Bulks Commodities
Project Materials Fabricated Items
Mech Equip Electrical
Equip
Instruments
Pump PO Vessel PO
Engineering Procurement Commissioning
Equipment Instrumentation
& Controls
Layout
Item
P-201
Item
V-205
Item
P-201
Item
V-205

26. REALITY – WBS ARE RELATIONAL
FPSO
Total
Construction
Cost
Process
System
Control
System
Fabrication
Estimates
Module
Area
Structural
Design
Construction
Estimates
Bulk
Commodities
Piping
LayoutPipe Stress
Utilities
Instrument
Mechanical
Datasheet
Bulk Steel
PO
Bulk Pipe &
Fitting PO
Procure-
ment Plan
Vendor
Data
Cabling
Layout
Electrical
System
Electrical
Loads
Pump POPump PO
Electrical
Datasheet
Item
P-201

27. ➢ Plan to manage complex Engineering Information in a relational not hierarchical
way
➢ Go beyond technical data, captures data maturity, status and relationships
➢ Leverage a data authoring and storage system for Engineering Information that
provides “single points of truth” for all data consumers
➢ Auditable/Traceable records of changes
➢ Generate Documents/Lists/Drawings from the data
➢ Allows data consumers to view data to meet their needs without creating new
documents
➢ 24/7 information access – avoid lags in sharing discreet pieces of technical
information
THE DATA CENTRIC PROJECT APPROACH
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.27

28. Engineering Supply Chain Fabrication/Install CommissioningCMT
CHANGE INSTIGATED IN PROCESS
Tag
Data
set1
Data
set1
Data
set1
PO
Parts List
1
Req
Parts List
1
Req Req
Tag
Data
set1
Data
set1
Data
set1
Work Package
(Construction)
Scheduled
Activity
Docs List 1
Budget
Work Package
(Fabrication)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
Work Package
(Commissioning)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
PO
Parts List
2 Issued
Working
On Hold
Key to
Status/Lifecycle
Maturity
In Consistency
Pipeline
Vessel

29. AFFECTED OBJECTS LOCKED DOWN
Engineering Supply Chain Fabrication/Install CommissioningCMT
Tag
Data
set1
Data
set1
Data
set1
PO
Parts List
1
Req
Parts List
1
Req Req
Tag
Data
set1
Data
set1
Data
set1
Work Package
(Construction)
Scheduled
Activity
Docs List 1
Budget
Work Package
(Fabrication)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
Work Package
(Commissioning)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
PO
Parts List
2 Issued
Working
On Hold
Key to
Status/Lifecycle
Maturity
In Consistency
Pipeline
Vessel

30. Engineering Supply Chain Fabrication/Install CommissioningCMT
CHANGE PROPAGATED TO AFFECTED OBJECTS
Tag
Data
set1
Data
set1
Data
set1
PO
Parts List
1
Req
Parts List
1
Req Req
Tag
Data
set1
Data
set1
Data
set1
Work Package
(Construction)
Scheduled
Activity
Docs List 1
Budget
Work Package
(Fabrication)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
Work Package
(Commissioning)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
PO
Parts List
2 Issued
Working
On Hold
Key to
Status/Lifecycle
Maturity
In Consistency
Pipeline
Vessel

31. Engineering Supply Chain Fabrication/Install CommissioningCMT
ENGINEERING ITEM RE ISSUED AND ALL OTHER OBJECTS
UPDATED.
Tag
Data
set1
Data
set1
Data
set1
PO
Parts List
1
Req
Parts List
1
Req Req
Tag
Data
set1
Data
set1
Data
set1
Work Package
(Construction)
Scheduled
Activity
Docs List 1
Budget
Work Package
(Fabrication)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
Work Package
(Commissioning)
Parts List
1
Parts List
2
Scheduled
Activity
Docs List 1
Budget
PO
Parts List
2 Issued
Working
On Hold
Key to
Status/Lifecycle
Maturity
In Consistency
Pipeline
Vessel

32. IMPROVED WORK PROCESS
Lists and Datasheets are all aligned
with 3D models and schematics,
ensuring quality deliverables
Avoiding
procurement errors
and delays
Avoiding rework
in construction

33. IMPACT OF AVEVA’S EPC 4.0 STRATEGY
• Engineering
• Concept, FEED, Detail Design
• Procurement
• Fabrication/Construction
• Advanced Work packaging
• Workface Planning
• Materials Management
• Commissioning and Startup

34. AVEVA’S EPC 4.0 STRATEGY
PROCUREMENT
FABRICATION
MATERIAL
MANAGEMENT
ENTERPRISE ASSET
MANAGEMENT
ASSET PERFORMANCE &
RELIABILITY
ASSET SAFETY &
COMPLIANCE
3D 2DStandards

35. EXAMPLE OF A DIGITAL ENGINEERING
WORK PROCESS
Show Southern Company video here!
| Copyright © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.35

36. THE IT’S NOT JUST ABOUT TECHNOLOGY
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.36
Technology
People
Processes
Enables
Development
Enables
Development of
Work/Business Processes
Training
10%
Savings is
enabled by
technology

37. | Copyright © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.37

38. © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.38
To learn more about how AVEVA can help you
execute projects more efficiently, visit
http://www.aveva.com/en/Contact/