Project Excellence Solutions’ Post

Decarbonisation in EPC Projects and Role of Project Controls In the EPC capital projects’ space, remarkable work is being done in the industry for decarbonisation of the facility operations and manufacturing of products. However, a key part of achieving project excellence is also to work towards controlling the emissions during; 1)  The EPC project execution and construction phase. 2)  The emission embedded in the manufacturing of the project materials. This post is about point 1) If the EPC cycle is broken down further, various studies reveal the following contribution of emissions in each phase: Design, Engineering and Management – 1% Manufacturing / Fabrication – 84% Transportation /Logistics – 5% Installation / Erection – 5% Even though Design & Engineering is about 1%, it influences the other 99% Some measures which can be implemented are; 1)  Design Considerations: Optimising the facility footprint, avoiding over-specifications, increased usage of scrap materials and recyclable materials, Reducing construction material wastage by using circular economy techniques.   2)  Execution Methodology:  Employing electrified construction machinery. Reduce on-site fabrication and increase modularisation. Proper Planning and sequencing of assembly & erection. Improved scheduling to avoid idling of machinery and resources. Implement AWP (Advanced Work package) system. Include decarbonisation requirements during Constructibility reviews and Model reviews. Optimise construction resources – Water, power, fuel and site facilities.   3)  Logistics Considerations : Efficient project planning to avoid air freight of critical project equipment. Optimise material handling, storage and preservation. Detailed planning and collaboration with vendors, logistics team, contractors and suppliers   4)  Digital solutions : Carbon Measuring and monitoring tools to track EPC project impacts across multiple sites. Embedded carbon calculator in construction and installation. AI Simulations to model and optimise emissions during engineering phase.   5)  Cooperation of all Project Stakeholders : Decarbonisation in EPC projects cannot be achieved successfully without the full support and involvement of Owner operators, Main Contractors, Consultant, Subcontractors, OEM, and Suppliers. How can Project Controls contribute to the above scenario? As PC folks are responsible for integrating, monitoring and reporting the Project parameters, we can actively play a key role. Some Examples : - Involve in the creation of a Carbon Index KPI for Construction, alongside the other KPI’s such as SPI and CPI. Tracking and Reporting the KPI. - Support in updating the Project execution strategies and workflows to align with decarbonisation objectives. - Support the Strategy department in deploying initiatives across projects and aligning contractors and vendors What else would you add? Do share your thoughts on this topic... #projectcontrols #decarbonisation

LIVE WEBINAR: How does the Cost Engineering Committee (CEC) help members with their conceptual cost & schedule estimating and validation? Shubham Galav will break it down in our live webinar next month!   REGISTER TODAY! https://lnkd.in/eTtzB6Jy #Construction #Validation #Projects #Industrial #Benchmarking #Scheduling #Metrics #Cost #CostEngineering #RiskManagement #Energy #Estimating

Accelerate Your EPC Project Success with Cutting-Edge Strategies! Check out our latest video, in which we dive deep into Accelerating EPC Project Design, Decision-making, and Delivery. What You'll Discover: - Innovative Design Techniques: How to streamline design processes and enhance accuracy from day one. - Data-Driven Decision-Making: Leveraging analytics to make faster, more informed decisions. - Efficient Delivery Strategies: Proven methods to accelerate project timelines and boost efficiency. Whether you're a project manager, engineer, or involved in any phase of EPC projects, this video is packed with insights that can transform your approach and drive success. 👉 Watch now and start streamlining your EPC projects for faster and more efficient delivery! https://lnkd.in/g8beVaDW #EPC #ProjectManagement #Engineering #Construction #Procurement #Innovation #ProjectDelivery #DecisionMaking #DesignOptimization

LIVE WEBINAR: Members of IPA’s Cost Engineering Committee (CEC) receive exclusive metrics and tools for unbiased conceptual cost & schedule estimating and validation. If you haven’t joined yet, now’s your chance to learn what the CEC is all about!   July 10 @ 11am US ET Led by Shubham Galav REGISTER TODAY, whether to join us live or to access the materials after the session! https://lnkd.in/eTtzB6Jy #Construction #Validation #Projects #Industrial #Benchmarking #Scheduling #Metrics #Cost #CostEngineering #RiskManagement #Energy #Estimating

Productivity Analysis for EPC (Engineering, Procurement, and Construction) Projects: Purpose: To measure and evaluate the efficiency and effectiveness of EPC project resources, identifying areas for improvement. Key Performance Indicators (KPIs): 1. Engineering Productivity Ratio (EPR): (Design/Engineering Hours) x 100 2. Procurement Efficiency Ratio (PER): (Procured Items/Total Items) x 100 3. Construction Productivity Index (CPI): (Installed Quantity/Total Quantity) x 100 4. Project Schedule Performance Index (SPI) 5. Cost Performance Index (CPI) 6. Earned Value (EV) Methodologies: 1. Earned Value Management (EVM) 2. Critical Path Method (CPM) 3. Program Evaluation and Review Technique (PERT) 4. Resource Leveling 5. Lean Principles Tools and Techniques: 1. Gantt Charts 2. Resource Allocation Charts 3. Burn-Down Charts 4. Velocity Charts 5. Productivity Software (e.g., MS Project, Primavera) EPC-Specific Productivity Metrics: 1. Engineering Design Efficiency (EDE): (Design Output/Design Hours) x 100 2. Procurement Cycle Time (PCT): Time taken to procure materials 3. Construction Labor Productivity (CLP): (Installed Quantity/Labor Hours) x 100 4. Material Utilization Rate (MUR): (Used Materials/Total Materials) x 100 5. Equipment Utilization Rate (EUR): (Equipment Hours/Total Equipment Hours) x 100 Benefits: 1. Improved resource allocation 2. Enhanced project efficiency 3. Reduced costs 4. Increased productivity 5. Better decision-making Challenges: 1. Data accuracy and reliability 2. Complexity in measuring productivity 3. Variability in project tasks 4. Ensuring stakeholder buy-in 5. Maintaining productivity momentum Best Practices: 1. Establish clear project objectives 2. Define measurable productivity metrics 3. Conduct regular productivity analysis 4. Identify and address productivity bottlenecks 5. Continuously monitor and adjust Productivity Analysis Steps for EPC Projects: 1. Define project scope and objectives 2. Identify key productivity metrics 3. Collect and analyze data (engineering, procurement, construction) 4. Calculate productivity ratios and indices 5. Interpret results and identify areas for improvement 6. Develop and implement improvement plans

How does the Cost Engineering Committee (CEC) help members with their conceptual cost & schedule estimating and validation? Tune in to the live webinar this Wednesday at 11am ET to find out! LAST CHANCE TO REGISTER! https://lnkd.in/eTtzB6Jy #Construction #Validation #Projects #Industrial #Benchmarking #Scheduling #Metrics #Cost #CostEngineering #RiskManagement #Energy #Estimating

Productivity Analysis for EPC (Engineering, Procurement, and Construction) Projects: Purpose: To measure and evaluate the efficiency and effectiveness of EPC project resources, identifying areas for improvement. Key Performance Indicators (KPIs): 1. Engineering Productivity Ratio (EPR): (Design/Engineering Hours) x 100 2. Procurement Efficiency Ratio (PER): (Procured Items/Total Items) x 100 3. Construction Productivity Index (CPI): (Installed Quantity/Total Quantity) x 100 4. Project Schedule Performance Index (SPI) 5. Cost Performance Index (CPI) 6. Earned Value (EV) Methodologies: 1. Earned Value Management (EVM) 2. Critical Path Method (CPM) 3. Program Evaluation and Review Technique (PERT) 4. Resource Leveling 5. Lean Principles Tools and Techniques: 1. Gantt Charts 2. Resource Allocation Charts 3. Burn-Down Charts 4. Velocity Charts 5. Productivity Software (e.g., MS Project, Primavera) EPC-Specific Productivity Metrics: 1. Engineering Design Efficiency (EDE): (Design Output/Design Hours) x 100 2. Procurement Cycle Time (PCT): Time taken to procure materials 3. Construction Labor Productivity (CLP): (Installed Quantity/Labor Hours) x 100 4. Material Utilization Rate (MUR): (Used Materials/Total Materials) x 100 5. Equipment Utilization Rate (EUR): (Equipment Hours/Total Equipment Hours) x 100 Benefits: 1. Improved resource allocation 2. Enhanced project efficiency 3. Reduced costs 4. Increased productivity 5. Better decision-making Challenges: 1. Data accuracy and reliability 2. Complexity in measuring productivity 3. Variability in project tasks 4. Ensuring stakeholder buy-in 5. Maintaining productivity momentum Best Practices: 1. Establish clear project objectives 2. Define measurable productivity metrics 3. Conduct regular productivity analysis 4. Identify and address productivity bottlenecks 5. Continuously monitor and adjust Productivity Analysis Steps for EPC Projects: 1. Define project scope and objectives 2. Identify key productivity metrics 3. Collect and analyze data (engineering, procurement, construction) 4. Calculate productivity ratios and indices 5. Interpret results and identify areas for improvement 6. Develop and implement improvement plans

The Engineering, Procurement, and Construction (EPC) industry is on the cusp of a technological revolution. As projects grow increasingly complex and the demand for efficiency and sustainability rises, integrating advanced digital solutions has become more critical than ever. One such transformative concept gaining traction is the digital thread. This comprehensive, real-time data flow linking every phase of a project’s lifecycle offers a myriad of benefits. The EPC sector would greatly benefit from fully embracing the digital thread, and here are the reasons why: https://bit.ly/4dmTXyA #digitaltransformation #digitalthread #PLM #assetlifecyclemanagement #digitaltwin #EPC #sustainability

🌟 Exciting Times in Cost Engineering! 🌟 As a dedicated Cost Engineer, I am thrilled to share some insights and experiences from my journey in this dynamic field. Cost engineering is not just about numbers; it's about strategic planning, efficient resource management, and ensuring the financial success of projects. 🔍 Key Responsibilities: Cost Estimation: Developing accurate cost estimates to ensure project feasibility. Budget Management: Monitoring and controlling project budgets to prevent cost overruns. Risk Analysis: Identifying potential financial risks and implementing mitigation strategies. Value Engineering: Optimizing project costs without compromising on quality and performance. 💡 Why Cost Engineering Matters: Efficiency: Helps in making informed decisions that lead to cost savings and efficient resource utilization. Sustainability: Promotes sustainable practices by optimizing resource use and reducing waste. Success: Ensures projects are completed within budget, enhancing overall project success and client satisfaction. 🚀 Looking Ahead: The future of cost engineering is bright with advancements in technology and data analytics. Embracing these innovations will further enhance our ability to deliver value and drive project success. Let's connect and share our experiences in this ever-evolving field. Together, we can continue to push the boundaries of what's possible in cost engineering! #CostEngineering #ProjectManagement #ValueEngineering #Construction #Engineering #BudgetManagement #RiskAnalysis #Sustainability

“Behind every successful project, are available, active and effective resources.” Resource Utilization: Equipment: For equipment, tracking performance indicators helps to evaluate the number of actual working hours for the equipment during workdays to analyze whether there is a shortage of skilled operators, ineffective scheduling, or equipment downtime due to malfunctions, to implement improvements and through the monitoring and control process if there is still low usage, there may be a tendency to share equipment with other projects, or to cancel the idea of equipment ownership and instead to rent it, which would also contribute to reducing costs. There are some measures to improve the process of using equipment, such as clearly defining maintenance schedules, recording the reasons for downtime, and also renting equipment that is not used frequently. Materials: Based on the resource management plan, KPIs indicate the effectiveness of materials utilizing required for the project, including the correct estimation of materials during the planning process, applying clear schedules for communications and delivery, and taking into account storage and loading operations, by applying a record of materials utilizing, the materials utilizing can be monitored and controlled, which contributes to reducing waste, improving purchasing processes, controlling quantities of materials, and directing surplus materials to other projects to help save disposal costs and contribute to saving the project budget. There are many metrics to calculate resource utilization, and each organization has its own metrics. The most famous metrics of resource utilization are: 1- Time-based utilization or (Full-time equivalent.(FTE)), 2- Output-based utilization. The optimal range for resource utilization is between 80% and 70%; Which indicates that if the percentage exceeds 80%, it may lead to excessive use of resources, causing fatigue, low quality, and even missing deadlines. While if it falls below 70%, it may lead to wastage of resources and potential cost inefficiency. #resourcemanagement #projectengineer #projectmanager #projectmanagement #pmp #management #construction #engineeringmanagement #mechanicalengineer #siteengineer #sitemanager