EPC industry is all about project management, but as the industry's size increases, IT solutions to manage processes and integrate them are on offer, says Varghese Daniel.
The Engineering, Procurement, Construction (EPC) industry presents a paradox. On the one hand, it is tightly systemised and driven by rigid standards and guidelines, while on the other it is manually-managed and driven by human effort and initiative. In such situations, technology usually shows immediate and visible ROI but the EPC industry is still waiting on technology that offers more than electronic document management – or at best, some form of generic process automation. EPC needs something that can intelligently enforce processes, manage information, and optimise project delivery-all without spending a fortune on multiple solutions.
The typical EPC organisation, from engineering consultant to turnkey projects provider, is process-driven. Every deliverable, transaction and document is controlled by clearly defined processes (on paper at least) which ensure quality. But enforcing these processes is quite another matter, a case of easier said than done. And since many of these processes are defined by industry regulatory bodies (like ISO), even a small deviation at any stage can result in heavy losses.
TECHNOLOGY TO THE RESCUE
IT investments often realise much less value than projected. This is because while there are many excellent document and project management systems on the market, few offer integrated functions across key busiÂness process like inquiry handling, document control, collaboration, communication, quality management, handover/signoff management, progress monitoring, and third-party (vendor, contractor etc.) management. EPC needs its very own PLM solution, where the P stands for 'Project' rather than 'Product'.
Ideal solution: from concept to commissioning
Project monitoring: Project is broken down into a WBS, WBS broken down into tasks (along with resoÂurces and documentation), tasks consist of activities and each task has a schedule.
The reality – WBS and individual To Do lists defined by project manager (PM) in MsProject or Primavera, updated manually by PM. Deliverables followed up in person or via phone calls and emails by managers.
What's needed: Each resource should have a digital To-do list, which is linked to the common WBS for that project. WBS and each resource's To Do list should be updated automatically by a system. System should send out automated alerts in case a deadline not met, or a linked task is delayed elsewhere. PM should be able to view correct status of any task, document or activity for any resource at any time. PM should be able to follow up on a deliverable online, without personally contacting the resource. Periodic tamper-proof updates should be sent to senior management so that they are aware of any potential bottlenecks of problems.
Document and file management: Each task has a document(s) attached to it, as well as other general documentation like reports, letters, communication, schedules etc.
The reality – Created in MSOffice, named / numbered according to the company's traditional
logic, stored manually according to that particular resÂource's choice.
What's needed: Centralised, tamper-proof database of all documentation; all documentation to be sorted, organised by category, date, type, owners, timeline, status, sensitivity etc; documents/drawings to be autoÂmatically numbered, named and stored in the right place so no chance of error; system ensures that only latest or up-to-date version of each drawing and documents is accÂessible; protection from accidental or deliberate misuse; and enough flexibility in the system for senior personnel to bypass or reroute documents at their discretion.
Quality control through proper documentation and 100 per cent process enforcing: The process and rigid guidelines are there to ensure quality in all output. But guidelines/process on paper is of not much value – they have to be enforced consistently.
The reality – Enforced manually according to the capability or commitment of each individual resource and manager.
What's needed: Should be enforced automatically, by the system. System should be such that once an actiÂvity is done, the resource is led by default to the next 'step' of the process and cannot evade/forget it. Managers depend on the system, not people to enforce the process.
Reuse past project data capture and archiving: Learning happens in each project, and this learning becomes the knowledge of the company.
The reality – Dependent on each individual – no system.
What's needed: System should archive past/closed project data in an easy-to-access format for newcomers and managers. System should be intelligent enough to help users find past problem + solutions easily. Data should be captured automatically and in real-time so that the onus is not on resources.
Close-looped change management: All data that is created and reviewed by multiple resources get changes as per review comments.
The reality – Reviews done manually i.e, in person, changes updated by allocated resource manually into all associated documents, changes communicated to all concerned groups manually. Change and relevant history compiled manually sent to client manually, and followed up manually. Client approval for each change followed up manually.
What's needed: System should allow users to collÂaborate on designs, even if multiple groups are in diffÂerent locations i.e, online collaboration. System should automatically capture changes made during the collaboration. System should send out communication automatically to notify others of changes. System should automatically collate document history required before sending to client for approval. System should assist manÂagers to quickly calculate the impact analysis based on the change before sending for approval to avoid futÂure issues or delays.
Resource optimising and planning: Resources to be assigned to tasks must be monitored and evaluated and reassigned as required.
The reality – 100 per cent manually based on manÂagers' ability and experience.
What's needed: Budget time and allocated of resÂources should be defined in the system to avoid errors or confusion while monitoring. System should automÂatiÂcally capture and keep updated parameters like 'actual time spend' vs. 'budgeted time spend' so that managers can closely monitor expensive resources.
External collaboration and interaction: Re-inforÂmation exchanged with large number of vendors and/or consultants, often approval/signoff is needed.
The reality – Information is stored electronically Word, Excel etc), can be exchanged only via traditional means – i.e. hard copy is couriered to the vendor/conÂsultant, and then the manager must wait for a response. This cycle can take up to 21 days to complete.
What's needed: System should handle this entire process digitally and with minimal human intervention. Result: drastically reduced time cycle. The system should have templates for each document type so that only the specific content needs to be filled in by the resource. The final documents should be automatically attached to the covering mail and sent to the entire group of associated individuals. Comments or approvals from the recipient should be appended to the same email/file along with the entire history of that transaction.
As-Build handoff to client: On completion, the company must handover the latest versions (as-build) of all documentation to the client in order to receive the final portion of the payment.
The reality – Done manually, often left till last minÂute because of other pressures, so final payment perÂcenÂtage (held back by client against this documentation) is often forfeited.
What's needed: Documents and records should be updated as and when they change hands during the process itself, not as an additional task in last phase of project. The system should be able to export the latest document to external media from the system so that it can be handed over to the client along with an index sheet. Once the project is closed, the system should be able to archive all the documents for future reuse.
The author is Founder-Director of Kochi-based Wrench Solutions, a Kochi-based software company that caters exclusively to the engineering and manufacturing industry.
Leave a Reply
You must be logged in to post a comment.