Achieving Interoperability for Equipment Supply Chains

1. Achieving Interoperabilityfor Equipment Supply Chains Mark Palmer FIATECH AEX Project Leader National Institute of Standards and Technology

2. CII Vision for Fully Integrated and Automated Project Processes (FIAPP) • Fully Integrated and Automated Project Processes = FIATECH • CII identified supply chain challenges. • Three research teams investigated. • Design, procurement, materials mgmt, eBusiness • FIATECH responded with new project: • Automating Equipment Information Exchange (AEX) • Move AEX results into Best Practices. • PEpC and supplier integration

3. Outline • Equipment Supply Chain Interoperability • AEX Project • Leadership in Supply Chains • Industry Momentum • Workshop

4. Interoperability The ability to electronically communicate product and project databetween collaborating firms’ and within individual companies’ design, procurement, construction, maintenance, operations, and business process systems.

5. “The cost of inadequate interoperability in the U.S. capital facilities industry: $15.8 billion per year.” - NIST

6. Equipment Engineer/Procure Process • Ten-plus applications (many software suppliers) • Four to five companies involved per each equipment type • Large, complex engineering data sets • Lots of hands touch the data: Time-consuming, Labor-intensive, Expensive • engineers using manual transcription and tools • manually checked by other engineers • done multiple times for single piece of equipment • done for hundreds, thousands of equipment per facility • done for thousands of facilities across industry • Costs industry millions of dollars per year

7. One Company’s Data Sheet

8. Another Company’s Data Sheet Same data - different terminology and format

9. AEX ProjectAutomating Equipment Information eXchange Goal • Streamline equipment supply chain • Eliminate redundant input of data • Automate information exchange Approach • Focus on high value problems • Develop partnerships: API, HI, LCI, PIP,… • Demonstrate incremental solutions Products • XML specifications and industry guidelines • Specs given to standards organizations

10. Benefits of AEX • DuPont/EPC/pump supplier team: • E-enabling engineer and procure ≥ 5.25% savings • Estimate: $12.5 million reduction yearly in equipment supply chain costs • “We are extremely pleased with the results of this work.” Jim Porter, VP, DuPont Engineering & Operations • “The AEX project delivers a pragmatic approach to widespread adoption of reusable data exchange across the industry.” Robin Benjamins, Mgr, Bechtel Info. Systems & Technology

11. AEX Benefits to Owners • Decreases supply chain costs. • Streamlines interactions with suppliers and subcontractors. • Enables continued use of preferred software. • Reduces cycle time for equipment. • Reduces errors and redundant data entry. • Improves quality (intelligence) of data handover.

12. AEX Benefits to EPCs • Reduces cycle time for equipment. • Reduces project time, costs, and risks. • Streamlines interactions with suppliers and subcontractors. • Enables continued use of preferred software. • Reduces errors and redundant data entry. • Improves delivered value to customers.

13. Why Use XMLfor Data Exchange? Proven technology, ready to use • Internet standard forintelligent document content • Foundation for intelligent Web services • Foundation for B2B e-commerce XML = eXtensible Markup Language

14. AEX Development Process • Identify priority transactions and equipment. • Establish partnerships. • Investigate data sheets. • Document data requirements. • Develop XML schemas. • Develop example files; test schemas. • Demonstrate interoperability. • Promote industry adoption and use. • Add AEX schemas into industry standards.

15. FIATECH Partnership with Process Industry Practices (PIP) • Memorandum of Understanding to use PIP data sheets in AEX. • Baseline requirements • Demonstrate AEX with PIP data sheets • Collaborate with PIP Machinery Team. • Include AEX results with PIP Practices. • Advance industry capabilities.

16. FIATECH Partnership with Pump Suppliers • HI Electronic Data Exchange Group • alliance with AEX • Participating in AEX interoperability demos. • Working on more types of pumps. • Leadership in Pump Supply Chain and Market Transformation. • AEX part of the strategy • Using AEX to improve business processes with customers and save money.

17. Recent AEX Successes • Released v.1 schemas and examples. • New partnerships and advocates. • Defined core data for pump RFQ & Quote. • Pump suppliers on board. • New companies joining the project. • Demonstrated interoperability across the pump supply chain.

18. AEX AEX AEX AEX DuPont & AVEVA AEX Interoperability Demo – Round 1 Owner EPC Supplier Internet Internet Process Requirements Bid Request For Quote DuPont & ePlantData Bentley Bechtel AEX Goulds Bid Quote Sundyne

19. Industry Momentum • Solving equipment data interoperability. • pumps, heat exchangers, compressors, … • Faster cycle times, improved productivity, reduced error rates. • Owners, EPCs, IT, and equipment suppliers collaborating on supply chain automation. • Leadership by FIATECH, CII, PIP, and HI. • essential to achieve full benefits

20. Next Steps • Contact equipment and IT suppliers • Use AEX in your equipment partnerships • Contact FIATECH and AEX • Participate in work on other equipment • Add AEX to CII Best Practices • Attend AEX Workshop Trinity B 10:00 am-11:00 am 2:00 pm-3:00 pm

21. Workshop • Industry panel • Jim Klein, AVEVA • Manoj Dharwadkar, Bentley • Tom Teague, ePlantData • Productivity and schedule improvements • Demonstrate AEX interoperability • Guidance on using AEX Use AEX for project success