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WE3 / BMP Facilitation

WE3 / BMP Facilitation. Benefits Exercise Working Document. May 30, 2002. Hypotheses. Electronic information and collaboration amongst partners (e.g., JV, EPCs) will provide benefits for all parties Benefits are maximized when information is shared in a common, agreed-upon way

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WE3 / BMP Facilitation

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  1. WE3 / BMP Facilitation Benefits Exercise Working Document May 30, 2002

  2. Hypotheses • Electronic information and collaboration amongst partners (e.g., JV, EPCs) will provide benefits for all parties • Benefits are maximized when information is shared in a common, agreed-upon way • Conversely, benefits are reduced for all parties when each party leverages or develops unique, point-to-point approaches • The industry is already moving toward unique solutions led by vendors • An industry-led consortium is the best approach to maximize benefits • A common solution tailored to industry needs Internal

  3. 1 Benefits – Electronic Collaboration • Reduction in construction & design costs 2-6% • Productivity, efficiency • Paper handling • Risk reduction • Cycle time improvement 5-30% • Improved design / best practices 5-30% • Knowledge Management / Decision Making LARGE Internal

  4. 2-3 Shared Information • Design information (e.g., CAD…, specification, documents) • Redline / mark-up • Project (e.g., plan, portfolio, terms, info) • Change orders • RFx • Communication • Decision support (leading to KM) • Best practices • Resource (e.g., people, materials) • Workflow* • Contracts • Others Internal

  5. 3 Industry Direction Vendors are developing collaborative solutions, many in prescribe formats • Primavera opening to collaborative solution • Citadon • PointCross • Oil Partnering Networks • EDS’ iTeam • Recent trend - companies are moving to various solutions • Total Cost of Ownership (TCO) across the supply chain will increase • The cost to share common information for all parties will increase exponentially based on the number of varied formats and solutions • Companies will have difficulties harvesting company-specific benefits (e.g., KM, DS) Internal

  6. Exercise #1: Benefits of Collaboration • Converge the right benefits Separate breakouts – EPC, O / O O / O EPC -Sharing design will reduce re-work costs Sharing project plans will reduce up-front costs Goal: understand benefits for each party by documenting specifics

  7. Exercise #2: Common Industry Platform (option 1 detail) Issues / Benefits • Design information • Redline / mark-up • Project • RFx • Communication • Decision support • Best practices • Resource • Workflow* • Others Unique Common Goal: understand that benefits are maximized via a common industry solution and benefits are minimized or eliminated if companies pursue unique solutions

  8. Exercise #2: Common Industry Platform (option 2: groupings) Advantages / Disadvantages • Nothing here Gary you idiot Vendor-Driven P to P Industry Platform Goal: understand that benefits are maximized via a common industry solution and benefits are minimized or eliminated if companies pursue unique solutions

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