E2C Bridge approach to project portfolio optimization & standardization can deliver significant saving for owners operators and EPC contractors.
Irving, TX (PRWEB) April 22, 2014
E2C Bridge, a provider of project delivery optimization consulting and managed services, is pleased to announce its new consultative methodology and service offering focused on optimizing capital cost from standardization and global consistency across a client portfolio of EPC projects.
Vast majority of capital projects across multiple industries still are being customized with tailored components and individually designed contracting and procurement strategies. Because engineers like to engineer, sometimes they re-invent the wheel and sometimes they over-engineer. In addition, most owners organization outsource their projects individually project per project to different EPC/EPCM contractors, with specific project teams and processes sometime formed almost from scratch, and whose silos have no incentive to leverage holistically and systematically their previous project experiences for owner’s ultimate benefits in term standardized approach to design, procure and build.
This situation has lowered project delivery performance for owners, and left capital projects industry with low rate of standardization from project to project, and has prevented the application of effective planning and control methodology with consistent processes and technologies. In addition, this lack of standardization increasingly made the project supply chain vulnerable as 75% of projects become remote in emerging markets with an increased delivery complexity, immature supply chain and shortage of resources and skills, “said Gavin Ashley, new member of E2C Bridge advisory board, metal mining executive & project director.
The Bill of material (BOM) usage in manufacturing planning and controls has greatly contributed to increase the rate of standardization across industries including but not limited to aerospace & defense, heavy equipment engineered to order, marines, automotive and many others industries. The explicit application of BOM in driving project planning & controls is lacking in capital projects and orphan in between owners and EPCM contractors. Thus EPCM contractor’s engineers define from scratch custom BOM for every project with completely undisciplined and unorganized reuse from project to project. In addition the project BOM is highly disconnected among engineering disciplines with too many error-prone material take off (MTO) files, equipment lists and different coding and formats. This prevents future reuse in other projects and it does not allow effective planning and controls. In addition, it increases contingency and ad-hoc changes that lead to budget over runs and schedule delays. The explicit and consistent usage of project BOM can progressively lead to identify standardized design, components and packages for which generic BOM could be maintained and re-used across a project portfolio. said Dr. Yasser Alkazzaz, founder and CEO of E2C Bridge, author of a recent relevant article on advanced project planning and controls.
E2C Bridge, new consulting methodology leverages BOM best practices from manufacturing environments and assists owners exercising a horizontal control across their project portfolio in order to maximize standardization and to improve individual project performance. The approach is organized in three steps. The first step consists of a joint E2C Bridge/Client team assessment program charged with the mission of identifying and quantifying saving opportunities in term of EPCM fees, procurement spent, construction labor cost, risk reduction, schedule compression and an overall ROCE evaluation. The second step consists of a corporate program office to fully leverage and implement the opportunities within current projects under execution or already planned and approved for execution. The last step consists of leveraging the E2C Bridge managed services and solution framework to develop jointly with clients a centrally led teams or groups that can provide supervisory project planning & controls ensuring application & sustainability of standardization across the entire portfolio of projects while optimizing project delivery performance.
The application of this methodology could potentially generate billions of dollars savings in an industry where CAPEX spent is at $12 Trillion high. For instance, considering a $10B portfolio of projects, 10% of design and contracting standardization rate could generate up to $100M savings in EPCM fees and more than a billion dollars in procurement spent savings, in addition to a dramatic compression of delivery lead times and project cycle time. The extrapolation of this saving potential across the entire industry, with potential standardization rate at 30% can be astronomical, Dr. Alkazzaz concluded
To get a copy of our brochure, please submit your request at: http://www.e2cbridge.com/project-portfoio-standardization.html.
About E2C Bridge
E2C Bridge is the first of its kind to bridge engineering with construction by effectively integrating project planning & controls, procurement and material management into a "One Stop-Shop" project consulting and project delivery service offering. E2C Bridge is a dedicated and independent project delivery optimization services. It aims to address the industry lacking project performance and to provide an impartial service to capital projects that is focused on achieving schedule and cost performance for owners, investors and EPC/turnkey contractors. E2C bridge services are differentiated from others EPC/EPCM contractors by their on demand and remote delivery approach, and by their innovative methodology that integrates scheduling activities with project bill of materials and 3D design elements to effectively simulate the optimal construction sequence and to provide 4D visualization and controls mechanisms that improve project alignment and coordination. For more information, visit our website at http://www.e2cbridge.com.