logistics perspective
Spoljaric, who wears the dual hats of traffic and logistics manager and procurement innovation lead for Bechtel’s oil, gas and chemicals global business unit, couldn’t be more enthusiastic. Spoljaric readily recognizes that, as he puts it, “a project can go in the wrong direction quite quickly.” However, if a potential issue is predicted ahead of time, measures – perhaps as simple as modifying a pipe rack system or adding a ship to the shipping program – can be put in place before a domino effect leads to expensive consequences. “A one-day arrival delay for a ship to a construction site could be 10 times what the cost for a ship is,” Spoljaric said. “By our getting smarter and more predictive, clients will have a better sense of what to expect, and so will the carriers, so it takes away surprises.”
ADVANCING TRADITION
Bechtel, certainly no stranger to innovation, has a company catchphrase of “engineering the extraordinary,” and its forward-thinking approach has clearly paid off over the course of more than a century. Founded in 1898, San Franciscobased Bechtel, which in 2015 reaped revenue of more than US$32 billion, has been the top-revenue U.S. construction and civil engineering company for 18 consecutive years, according to an Engineering News-Record ranking.
means to retain expert knowledge and record historical data for future use. “This effort,” he said, “is timely, especially for the current business climate of low profit margins, increasing modularization, remote jobsites, dependence on global supply chain and limited transportation resources.”
‘INTRAPRENEURIAL INNOVATION’ Dr. Neil N. Eldin
David Wilson
University of Houston
Bechtel
But to stay at the top of the engineering, procurement and construction industry heap, Bechtel, particularly in challenging times, isn’t satisfied with the status quo. Thus Bechtel’s Engineered Logistics approach, which since early 2016 has been moving forward through a funded research project with the University of Houston’s College of Technology, is slated to begin implementation with clients in early 2017. Neil N. Eldin, dean of the college, said he sees practical application of the quantitative, risk-based approach as highly beneficial. “Expert judgment along with the simulation-based planning can improve on-time deliveries and thus offers tremendous savings to clients,” said Eldin, who holds a doctorate in civil engineering. “This approach provides a systematic
David Wilson, Bechtel’s deputy chief innovation officer, termed the program “intrapreneurial innovation,” noting that any of the company’s more than 50,000 employees worldwide may submit concepts that are preliminarily evaluated by a small team that includes Wilson and two or three colleagues. Wilson said more than 1,000 concepts have been received and put through a litmus test of whether they are truly disruptive, expandable to broader application, translatable to prototype, testable “in the sandbox” and aligned with corporate strategic objectives. After an idea is green-lighted for initial pursuit, it may be advanced in collaboration with an existing Bechtel team already working on a similar concept, or, if it’s all-new, the originator may take it to the proverbial sandbox. That high-tech “sandbox” is the Bechtel Innovation Center in Houston, a lab outfitted with 4-D modeling software, 360-degree cameras, drones and a host of other virtual reality and augmented reality technologies. “If folks have an idea that can help us deliver in a better, faster, leaner manner,” Wilson said, “we provide the space for prototyping and then, if successful, go to small scale pilots which can then expand across the enterprise.”
The Bechtel Innovation Center in Houston. From left, seated, are Andrew Young, critical equipment transport subject matter expert; and Stephen R. Spoljaric, procurement innovation lead and oil, gas and chemicals global business unit traffic and logistics manager. Standing, from left, are Nick Crow, chartering manager; Jorge Reyes, senior transportation and logistics estimator; and Trent Legendre, transportation and logistics technologist. Credit: Bechtel Corp. 28 BREAKBULK MAGAZINE www.breakbulk.com
ISSUE 5 / 2016