This document discusses the potential for EPC 4.0, which would involve transitioning from document-centric engineering, procurement, and construction project management to a data-centric model utilizing a shared database. The current document-focused EPC 3.0 model is estimated to involve high transcription and checking costs, indirect costs, and change management costs. EPC 4.0 could reduce these costs by having all project stakeholders contribute and access a single source of standardized engineering data. This is estimated to potentially reduce total installed costs on projects by up to 10%. However, a full transition would require changes to people, processes, and business models across project teams.

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Presentation Overview
Industry 4.0 is the buzzword of the day. It speaks to a massive
shift in reliance on centralized universally accessible data that
enables tools to drive efficiencies in all aspects of business.
AVEVA’s core data centric philosophy is leading this shift in the
world of Industrial Facility Engineering.
EPC 4.0 is coming.

2. THE CASE FOR EPC 4.0
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Greg Pada, P.Eng, PMP
Principal – Digital Twin Solutions Inc.
PUTTING DATA IN THE MIDDLE

3. 3
Steam Assembly Line Automation Digitalization
Industry 4.0

4. THE PROBLEM WITH OUR PRODUCTIVITY TODAY
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Slide from 2016 ECC Conference
- “Over the last decade, 98% of the construction industry’s large projects experience a
cost overrun or delay relative to their as sold budgets and schedules. 80% was the
average cost increase on these…”
- Brenden Bechtel, CEO Bechtel at 2016 ENR Conference

5. EPC 3.0
WHAT HAS AUTOMATION BROUGHT US
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▲ Technology solutions and tools
▲ Not integrated – Discipline or team specific
▲ Make individual tasks faster, makes collaboration and harder
▲ Documents used to transfer information to get data into the tools
▲ More management to manage interfaces/interactions
▲ Have not resulted in the improvement in quality
▲ Promises of better project performance are not materializing

6. EPC 3.0
DOCUMENTS MANAGED –
DATA DERIVED
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▲ Project Team made up of Islands
▲ Multiple Systems/Specs/Standards
▲ Information Transactions = $ & Schedule
▲ Constant need to translate
▲ High risk to generate errors
▲ Status
▲ Decision making
▲ Overhead to manage
▲ Change management difficult
▲ Low Transparency
EPC = Doc Hub
Process
Owner
Package Vendors
Fabricators
Engineering
Partners/3rd Pty’s
Constructors
Equipment
Vendors
Commissioning
Systems/
Standards/
Specs
Systems/
Standards/
Specs
Systems/
Standards/
Specs
Systems/
Standards/
Specs
Standards
and Specs
Owner data
reqts
Mech
Piping
Instr
Civil/
Struct
Elect
Systems/
Records
Systems/
Records
Systems/
Records

7. EPC 3.0
THE RESULT
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▲ Administrative/Transcription work has increased – Increase $/Longer schedule
▲ Reluctance to release partial info – schedule delays – Increase $/Longer schedule
▲ More Indirect resources required – Increase $
▲ Project Management/Project Engineering
▲ Project Controls
▲ Harder to implement changes – Increase $
▲ Resistance to implement changes – Decrease end performance?
▲ No true reduction in project risk

8. THE COSTS…
TRANSCRIBING DATA
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Survey indicated highest responses in the 10-30% range

9. THE COSTS…
CHECKING
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▲ Survey showed range 10-20%
▲ Correlation – higher percentage of
transcription = higher percentage checking
▲ Field escapes still occurring…

10. THE COSTS…
INDIRECT COSTS
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▲ Average high end of 25-30%

11. THE COSTS…
MANAGING CHANGES
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▲ Average at high end of 20% range
▲ 77% in the10-30% range

12. THE COSTS…
SUMMARY IN ENGINEERING
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▲ Up to 55-65% of Engineering hours are not spent doing Engineering Tasks
▲ Transcription 20%
▲ Checking 15%
▲ Indirects 20-30%
▲ Change Management 20%
▲ Can see similar issues with Procurement, Fabrication and Construction

13. THE COSTS…
DOWN STREAM COSTS
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▲ Procurement
▲ Indirect Costs – Expediting costs
▲ Material Handling – Traceability
▲ Transfer of BOM/MTO’s /Risk Buys
▲ Fabrication/Construction
▲ Indirect Costs – transcribing data to estimating & planning tools
▲ Indirect Costs – reporting and tracking progress
▲ Work delayed by late materials/equipment
▲ Change Management
▲ RFIs

14. EPC 4.0
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14
▲ Not just 3D – Must integrate 1D & 2D
▲ Not just technical data – attributes include relationships and status
▲ Database provides Single Points of Truth
▲ Support by consistent libraries of standards and specs
▲ Control quality of data at input
▲ Auditable/Traceable entry of data
▲ Controlled but general access to data from project team
▲ Minimize records generation
DATA MANAGED – DOCUMENTS DERIVED

15. EPC 4.0 MODEL
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15
Project Execution Plan
• WBS (accountability definition)
• Workflows
• Data Management
• Data Flow
• Data Accountability
• Data Relationships
Shared Data Environment
Engineering
Vendors
Package
Vendor
Fabricators
Engineering
Partners/3rd
Pty’s
Constructors
Commissioning
Standards
and Digital
Specs
Owner & StakeholdersAuditable
History
Traceability
Process
Mech
Piping
Instr
Civil/
Struct
Elect
▲ Data is in the middle
▲ One set of standards/specs
▲ Contribute data & manage maturity
▲ View/consume data as needed
▲ Assess/Manage Change
▲ Transparency - Progress
▲ Minimize records generation
▲ Allows input at key points
▲ Constructability
▲ Operability
▲ Continuous handover
▲ Realtime planning – Fab/Const/Commission

16. EPC 4.0
CHALLENGES…
➢ A shift that affect all entire of a project team
➢ Requires strong vision and leadership
➢ Change in business models for teams
➢ Not just a technology implementation
➢ Will have some missteps
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People
Processes
Efficiencies
are only
enabled by
technology
Technology
Enables
Development
Enables
Development of
Work/Business Processes

17. EPC 4.0 REWARD
POTENTIAL SAVINGS
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% TIC Savings
Phase Engineering
(10% TIC)
Procure
(40% TIC)
Fab/ Construct
(40% of TIC)
Total %TIC
AVEVA IED 3% 1% 1% 5%
AVEVA ERM 2% 1% 3%
Procon 1% 1% 2%
Totals 10%

18. Sample Project:
$500MM project TIC
Opportunity for 10% TIC Saving = $50MM
AVEVA cost ~$5MM includes licenses, configuration, training, support
Potential for $45MM savings…..
Configuration & training are mostly one time costs
EPC 4.0 REWARD
POTENTIAL SAVINGS
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19. EPC 4.0 – COST OF INACTION
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▲ Demand to drive up efficiency is driving the change
▲ There are already those making the shift
▲ Owners
▲ EPCs
▲ Fabricators

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