OGUK ConferenceStandardisation MindsetJune 2017

Nicky MasonVP Asset Support, AberdeenAmec Foster Wheeler

Covering

• Illustration of the problem

• Subsea Standardisation Work

• Amec Foster Wheeler’s

Standardisation Mindset

• Examples

• Culture and

2

Example 1: Everything is/was bespoke

Valve bore distribution

for subsea valves

supplied by Bel Valves

3

50+ detail differences on one piece of equipment.

Why so different?

Subsea Standardisation Work

4

Translating this into an Amec Foster Wheeler world

5

• Standardisation of Equipment &

Hardware

• Applying a Simplified and Streamlined Process

• Applying alternative methods & technology

to provide optimised solutions

• Applying a fit for purpose approach

Codes, Standards and Specifications

Alternative Methods & Technology

Equipment and

HardwareProcess

Applying a fit for purpose approachCode, Standards and Specifications

6

Design

• Specify only functional requirements

• Applying only industry standards

• Minimise design cases

• Design for field/plant life

Materials

• Pre-qualified materials

• Supplied to industry standard

requirements

• Fit for purpose or risk based

approach adopted

• Aligned selection to stock

Component, Product and

Qualification Testing

• Apply testing criteria from industry

standards.

• Testing to manufacturer’s

recommendation

• FAT to manufacturer’s

recommendation

• Qualification testing to cover size

ranges

Suppliers, Manufacturing &

Fabrication

• Supplier chooses their preferred

manufacturing and fabrication

processes

• Supplier and manufacturing

tolerance set to manufacturers and

industry standards

7

Example 2 – Supply Chain Component cost analysis

ETF Valves - Efficiency benchmarking

Global Operators

UKCS Focused Operators

Reference Case

200%

600%

Complexity

UKCS Focused Operators

Global Operators

Reference Case

% Cost

% Duration

Applying a Simplified and Streamlined Process

8

Documentation

• Streamlined to supplier’s standard

• Reviewed key documents

Interface Management

• Single focal point assuring

compliance with Scope of Work and

Basis of Design

• Simplified Supplier Documentation

Requirements List

• Culture of ‘no change’

Supply Chain Management

• Approved vendor lists

• The Tender Efficiency Framework

intends to realise savings through

tender optimisation. O&GUK

matrices to be applied.

• Reduce number of suppliers per

package type

• Contractor to manage supplier.

• No restrictions on supplier location

providing ISO 9001 certification

Inspection

• Work to contractor / supplier to

processes

• Limit the presence of inspectors on

site during the manufacture or

fabrication scope

Example 3: Post pricing

9

1) Index for our Manufacturing Record Book(MRB)

2) Weight data sheets – the weight is shown on the drawing

3) Quality Plan

4) Weld Traceability Log

5) Weld Procedure

6) NDE Procedures

7) Surface preparation & painting procedure

8) Weld Procedure approval Form

9) MRB

10) CE Declaration of Conformity

11) Weight report (even though not an offshore item)

12) Certificate of Conformity

13) Inspection and test plan

14) Supporting documents that usually make up our MRB

Plus an independent 3rd party inspector to release.

Applying Alternate Methods and Technology to Provide Optimised Solutions

10

Design

• Apply ‘closest equivalent’

• Reducing levels of redundancy

• Accept alternative materials

• Risk based approach to metallurgy

• Challenge maintenance routines

• Utilisation of close coupled mono-

flanges for field instruments

Manufacture

• Provide fit for purpose materials

• Alternative manufacturing routes

Fabrication

• Engage fabricators early – what can

they supply?

Construction Led Engineering

• ‘CPE’ approach

• Construction function to ‘prove the

build’ and influence the design early

Example 4: Alternate method, Use supply chain skills

145 hrs 34 hrs

= £6,500saving

2016: Reductions beyond norm sets:-

Replacement of 13 spring hanger supports

Standardisation of Equipment and Hardware

1

2

Standard and Modular Designs

• Off-the shelf equipment

• Modularised and building block

approach

• Supply Chain Framework

Agreements

• Standard footprint and sizing

Re-Use

• Re-use of standard / existing

designs

• Re-use of redundant equipment /

surplus capacity in existing

equipment

Interchangeability

• Standard connections and

interfaces

• Plug and play

Communications

• Standard communications protocols

M4L Procurement: “Savings Snapshot ”

25%Average

Savings*

£6.0m Annual

Savings*

*Estimated against 2016 Prices for circa £21.4m annual spend on the above

commodities

>6500Line items

£1.7msavings on Piping Bulks

£0.3m savings on PPE

The aim is for transformational change

14 Source:- Deloitte LLP

Doing the right thing…right

15

Doing the Right thing

Design, Supply Chain, C3 in

Concept/Pre-FEED

Alignment to business case

Benchmarked, Standardised

approach,

Culture of challenge

Efficient and effective

Concept/Pre-FEED

Doing the thing Right

FEED - EPC - Handover

More 4 Less: Our framework for step change in delivery

Conclusion

1

6

Standardisation

Simplification

Less specification Collaboration

Simplification