life cycle design & operational readiness - … · life cycle design & operational...

© 2017 Fluor. All Rights Reserved.

Life Cycle Design & Operational Readiness UpFRONTSM Method and Approach

Prognostics and Health Management (PHM 2017)2017 IEEE International Conference June 19, 2017

Fluor Operations & Maintenance

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Topics

♦ Digital Transformation– Industry 4.0 and Asset Performance Management– Roadmap to APM– New Capital Program EPC enables APM

♦ Life Cycle Design Support– Overview– Challenges– Opportunity

♦ UpFRONTSM Methodology– Overview– UpFRONTSM Model and Elements

♦ Summary♦ Questions

Digital TransformationFrom 1st to 4th – Industry 4.0

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Key Components of Industry 4.0Smart Manufacturing

♦ Digital Plant – the digital twin or digital asset♦ Asset Performance Management, a Project Life Cycle

Management Tool, enables Industry 4.0 concepts♦ Prescriptive Analytics - Reliability Center digital data collection ♦ Smart Assets – connected via IIoT platforms♦ Advanced automation concepts ♦ Industry Best Practices for O&M

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Develop concept for digital closed loop EPCO&M from conceptual to detailed engineering, construction /

fabrication and Operations & Maintenance

Roadmap Steps to APM 4.0

1. Align the organization with Best Practices2. Understand Big Data and How to use it in Maintenance and

Operations 3. Use Operational Architecture to Execute4. Build the Business Case 5. Build an IIoT Platform to Harness Data and Make Apps

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Source: LNS Research

APM 4.0 is not as much a specific product functional set as it is an evolving aspirational objective that companies should work toward if they want to be able to sustain the benefits they hope to gain from

embracing Industry 4.0. concept

How Best to Implement AMP 4.0?

♦ APM may be best accomplished during major capital projects♦ Requires O&M involvement in the capital design process ♦ Life Cycle Analysis, and other Value Improving Practices, can

be used to systematically build designs for Total Cost of Ownership (TCO) and the Industry 4.0 business case

♦ Early analysis and TCO models can clearly define design options and define O&M and IT strategies

♦ This overall process is referred to as Operational Readiness and comprises hundreds of analyses, tasks and deliverables to drive Operational Excellence

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Life Cycle Design Support Overview

As a part of Operational Readiness, Life Cycle Design Support is applied early in the design process via a blend of tools, processes and methods to implement strategies for optimal life cycle return.

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0%

50%

100%

0%

50%

100%Green – Percentage of cost; revenues influenced by

decisions made

Red – Life-cycle costs committedas percentage of total

Life Cycle Design SupportOwner’s Challenges

How to capitalize on the opportunity to influence all aspects of life cycle return on investment?

FEL 2 FEL 3 DetailedEngineering Procurement Construction

Commissioning,Start-up,

and TurnoverFEL 1

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Maintain

ImproveAvailability

MAINTAIN

Design/Build

ImproveCapability

DESIGN

Plan/Produce

ImprovePractices

OPERATE

Life Cycle Design Support Challenge – Link Design to O&M

How to optimize the factors of APM concurrently?

Presenter

Presentation Notes

In DOM, we recognize that Design, Operate and Maintain are three continuous improvement loops that interact throughout the plant’s lifecycle The fact that Design plays a continuing role in Plant Performance is clear when one considers that manufacturing plants have long lifetimes, and the equipment in a plant will experience several upgrades. Rather than being a one shot deal – companies have to recognize that Design is a series of projects that will continue to affect the plants capabilities. Operations is likewise not stagnant. Operating practices are continuously being adapted to accommodate new products, new customers, or new regulations and to improve production quality, throughput and costs. Maintain is also subject to change as strategies are adjusted to asset conditions and more reliable components and new best practices and technology becomes available. Each of these areas has a specific role, but this role must also include responsibility for assessing performance and continuously optimizing that part of the plant performance equation.

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BUSINESS OBJECTIVESINDUSTRY STANDARDS

Contractor HSE Practices

PROJECT GOALS

PROCESSESPROCESSES

ALIGNMENT ALIGNMENT

CorporateHSE Policies

PLANT DATAP&ID / PFD

LAYOUTPLOT PLAN

OPERABILITYHAZOPS

HSEMEL / ASSET REGISTER

AUTOMATIONINTEGRITY & MAINTENANCE

BASELINES / TESTING

CHANGECONTROL

PROCEDUREDATAPLAN

PLATFORMS, SYSTEMS,

DATA BASES ANALYTICS

Life Cycle Design Support Challenge – Integrate Data for APM

How to assure integrity and compliance while implementing new designs, operational architecture and practices?

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TOTAL OWNERSHIP COST IMPACTS

Life Cycle Design Support Challenge – Optimize TCO

What decisions are needed in each project phase to implement strategy, optimize life cycle and TCO?

ConceptualDevelopment

PreliminaryEngineering

TYPICALCAPITAL PROJECT

PROCESS

DetailedEngineering

Procurement

Construction

Commissioning,Startup, & Turnover

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Life Cycle Design Support Opportunity

Life Cycle Design support tailors analysis to appropriate needs based on the level of new technology and operational strategy.

Life Cycle Design precedes the overall approach to Operational Readiness that we refer to as UpFRONTSM

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UpFRONTSM Introduction

♦ UpFRONTSM helps Owners meet business case expectations and manage integration of life cycle design and O&M readiness outside the normal EPC scope

♦ UpFRONTSM is performed in parallel with the EPC project ♦ UpFRONTSM includes a comprehensive set of propriety

methodologies to assure owner’s risks are identified and mitigated

♦ UpFRONTSM implements best practices to expedite return on investment with new levels of reliability and operational excellence

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Owner’s Opportunity

Fit all the Pieces Together for Design, EPC

and O&M

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Operational Readiness for Capital Projects UpFRONTSM Methodology

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Fluor’s UpFRONTSM

Operational Readiness Methodology

Organizational Readiness

Support Readiness

Systems Readiness

Operations Readiness

Maintenance Readiness

Life-cycle Design Support

Operational Readiness Planning

Vertical Launch

Supply Chain Readiness

Capacity Plans, Risk & Business CaseAnalysis

Concept & Front-endLoading / FEED

Detailed Engineering

Procurement &Construction

Commissioning & Ramp-Up Owner’s Risk & Readiness Reviews

Steady State Operations:-Capacity-Cost-Quality-Safety-EnvironmentalOn or Ahead of Schedule

Presenter

Presentation Notes

Fluor has developed an integrated and structured work process designed to improve financial performance of businesses for new production plants, or for expanding existing plants We call this technical service UpFRONTsm. UpFRONTsm helps Owners to increase asset performance and reduce operations and maintenance costs by increasing availability / reliability, increasing yield, run rate, throughput, improving organizational performance, reducing annual operating / maintenance costs, and achieving top quartile performance Let’s focus now on the Maintenance Readiness module (laser pointer)

UpFRONTSM

•10 Modules•70+ Activities•500+ Deliverables• Sequenced and integrated by project phase

UpFRONTSM Operational Readiness Project Activity Model

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UpFRONTSM for Life Cycle DesignConceptual and Design Phase

Operational Readiness Master Planning

Life Cycle Design Support Vertical Launch

Maintenance Readiness

Operations Readiness

Systems Readiness

Organizational Readiness

Support Readiness

Supply Chain Readiness

Phased Risk and Readiness Reviews

Concept and Front-EndEngineering Design

DetailedEngineering

Procurementand Construction

Commissioning andRamp-up

Steady StateOperations– Capacity– Cost– Quality– Safety– EnvironmentalOn or AheadOf Schedule

CapacityPlanning

Risk and ReadinessReview

The scope of UpFRONT supports FEED phase process tied to operational readiness needs.

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Project and Owner Risk Analysis Budgetary development and recurring O&M estimates Economic and/or life cycle costs Financing strategy and capital structure support Business case pro forma input Location / site analysis and incentive negotiations

Capacity, Risk and Business Analysis .

UpFRONTSM Element Deliverables

Project ROI Optimization Levers

Strategic EPC O&MCommodity Contracts/ Off-takeFinance Human

Resources

ROI Optimization Plan• Business Strategy• Finance plan• Off-take Strategy• Commodity Plan• HR Strategy• OR Project Plan• Supply Chain Strategy• Technology Strategy• Risk Mitigation PlanBusiness Case Rationale and

Project Optimization

Combine Large Project Risk Management with early OR Planning to plan foroptimization of project ROI:

Presenter

Presentation Notes

These activities are performed very early in a project life cycle. Conceptual Planning. Front End Loading. Identify and utilize “levers” to improve the ROI of the business case. Initial strategies, risk analysis, financing options, plant site evaluation, gov’t incentives, etc. These activities are not intended as a substitute for Fluor EPC activities but to give the customer a comprehensive view of all activities that must be addressed, regardless of who does them.

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Identifies tasks, roles, and responsibilities for readiness activities Critical path schedule of operational readiness activities Task list detailing scopes, responsibilities, deliverables and execution plan Budgetary estimate detailing resources requirements by activity, by project

phase, by resource type and by operational readiness scope element Master Plan status reports including routine reporting of status versus activity

schedules, resource plan and budget Master Plan updates to reflect deviations versus the plan and EPC schedule

Operational Readiness Master Planning.

UpFRONTSM ElementDeliverables

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Integrates life cycle and business case justification into the FEED and detailed design phases

O&M philosophies and strategy documents Operability/maintainability/lean design reviews Life cycle value evaluations (tradeoff & alternative design) RAM and simulation analyses Process FMEAs, criticality

rankings, availability allocations Human factors analyses Continuous monitoring specifications O&M data & document specs Operational Systems Architecture strategy Remote monitoring and analytics strategy Nonconventional asset ownership options Other Value Improving Practices

Life Cycle Design Support.


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Implements maintenance and reliability practices Asset management system databases RCM & RBI analyses Preventive, predictive, calibration and NDE testing

plans and procedures in CMMS Continuous or specialized condition monitoring systems Systematic failure elimination processes Outage plans Optimal spares order levels and MRO data bases Tools and equipment including shop layouts Maintenance budgets, cost forecasts Maintenance staffing plans and schedules

Maintenance Readiness.


Summary

♦ APM 4.0 enables Industry 4.0 concepts♦ Capital projects can drive integration of plant design, data

and operations toward APM 4.0♦ Early use of Life Cycle Analysis can align plant design with

Operational Excellence and plant business case♦ Operational Readiness provides a structured approach to

align new architectures, platforms and systems with best practices for O&M

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Source: LNS Research

APM 4.0 is not as much a specific product functional set as it is an evolving aspirational objective that companies should work toward if they want to be able to sustain the benefits they hope to gain from

embracing Industry 4.0. concept

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QUESTIONS

life cycle design & operational readiness - … · life cycle design & operational...

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