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Process Industry Practices

Global Valve Cross-reference eCatalog Workshop (GVCC) Annual Conference

Marriott Houston North @ Greenspoint

April 23, 2008


STANDARDS Cajun Fish Ruler


This project takes PIP VALVE CATALOG and combines it with the FIATECH vision of automation to create a new industry standard for the specification, evaluation, and purchase of valves.


Global Valve Cross-reference eCatalog OWNERS, CONTRACTORS, SUPPLIERS & Manufacturers

(GVCC) A FIATECH project in cooperation with PIP to MAKE IT EASY to select the RIGHT valve for the RIGHT purpose


Agenda • History of the Project • Benefits: Owner, Contractors, Supplier/Mfgs • How the System Works PIP Master Catalog Valve Matcher Valve Catalogs for Specific Sites

• GVCC Project Status & PATH FORWARD

• Q & A, Discussion


Sponsor Companies • • • • • • • • • • • •

Aramco Services Company Arkema AVEVA BE&K, Inc. Bonney Forge Burns & McDonnell CH2M HILL Chevron Conoco-Phillips Evonik Degussa Corporation Eastman Chemical Company FMC Corporation

• • • • • • • • • • •

23

Holly Corporation Honeywell/UOP Huntsman Intergraph The Newdell Company REC Silicones Rohm & Haas S&B Engineering & Constructors, Ltd. Sunbelt Supply Sunoco, Inc. Tesoro


EXISTING NEED • No Accepted Industry Standard Catalog for Valves

• PIP Valve Catalog published in WORD. • Engineering must manually perform technical validation on every valve order.

• Supplier/Mfgs must look up every valve and validate it meets the specs

• Owners have to create Cross Reference Indexes for different facilities or units designed by different engineering companies for their run and maintain activities.


OPPORTUNITY • A way to quickly verify that a submitted valve is technically suitable for service – Supplier and purchaser engineers verify valve details manually – Correct valve materials, trim, etc are CRITICAL – Can take hours to find technical data and verify several valves

ENGINEERING Existing Process – Manual Research to Validate Valves Submitted

Place Order

Receive Quotes

Manual Technical Evaluation 4 Valve Manufacturers Approx. 2 hours/valve type Or 20 x 2 = 40 hours

Select Valves that meet Technical Requirements


End User Request Valve Quotation

BEHIND THE CURTAIN WORK PROCESS

Quotation sent to Distributor

Distributor sends to Manufacturer

Manufacturer review Valve Specification

95% of Valve Quotes Require Clarification Yes

Send Clarification back to

Manufacturer needs clarification

Distributor

No Distributor Manufacturer Quotes

SEND BACK To Manufacturer Distributors SEND BACK To contractor

Technical & Commercial Bid Tab Review & Approval

Engineer

SEND BACK To Distributor

SEND BACK To contractor

Expedite, Rcv, Issue, Install, Run & Maintain

BACK

To engineer

Purchase

Technical Data to Design

Contractor SEND

Engineer makes decision or forwards to End User

Decision made


ESTIMATED COST TO INDUSTRY A MIDSIZE CONTRACTOR Spent Approximately 1,400 hours researching valves last year MAJORITY of this work was performed on Cost Plus basis:

1,400 at $80/hr billing rate = $112,000 Estimates are that 200 engineers perform a similar function every year. Assume they ONLY spend 1,000 hours per year

1,000 at $80/hr billing rate x 200 engineers = $16,000,000/year EVERY YEAR Supplier/MFG Behind the Curtain Activities :

Estimated as close to the above – ANOTHER $16,000,000/year

TOTAL WASTE:

$32,000,000/Year EVERY YR


WHO PAYS? Make No MISTAKE: CONTRACTORS & SUPPLIERS HAVE NO MONEY

THE OWNERS PAY FOR EVERYTHING WE DO Overt or COVERT


BENEFITS: Work Process Sample Valve Order 20 Different Types of Valves Existing Process – Manual Research to Validate Valves Submitted

Place Order

Receive Quotes

Manual Technical Evaluation 4 Valve Manufacturers Approx. 2 hours/valve type Or 20 x 2 = 40 hours

Select Valves that meet Technical Requirements

Proposed Process – Using Online Valve Matcher Catalog System

Place Order

Receive Quotes

Automatic Technical Evaluation 4 Valve Manufacturers Approx. 2 hours total

2 hours per TYPE of valve is conservative. Researching Manufacturer sites and information can be time consuming


BENEFITS to Owners, Contractors, Suppliers, Manufacturers • Match any valve to the PIP Standard

• Owners/Contractors continue to use THEIR Numbering Systems • Industry Standard – ALL using the same valve. • Eliminates WASTE and REDUNDANT activities


Workshop # 1

Topic: “GVCC – Demonstrating the Value” Leaders: Ralph Miller, S&B, John Fish, Ford, Bacon & Davis Notes: Is follow-through from last year’s workshop: “Streamlining Valve Procurement Using GVCC” Ken Hamilton, Consultant, will serve as PIP contact


GVCC Deliverables Supplier Valve Catalog

Valve Matcher Validate/look up valve equivalents List / report available valves Research valve technical data Access supplier technical data

PIP Valve Catalog Internal Valve Catalog

Valve Editor Add/update MY valve catalog Look up valve equivalents Store internal matches & verifications Provide access to technical data


PROJECT STATUS 2Q05 Project Initiation – First few sponsors 1Q06 - Completed XML schema development 3Q06 - Delivered Valve Editor template 2Q07 - Delivered Valve Matcher prototype 4Q07 - Delivered working prototype Valve Editor, - partial PIP valve catalog in cfiXML, and - functional Valve Matcher prototype and live demos

3Q08 - deliver the Valve Editor (product release), - complete the PIP valve catalog in cfiXML, and - deliver the Valve Matcher, Report Function and Update Service 4Q09 - deliver GVCC web site and related web services FULLY FUNCTIONAL


TODAY PIP Catalogs Complete Ability to create internal cross reference catalogs BENEFITS: • • • • •

Users all able to view PIP catalogs on own PCs Users able to create their own catalog Valve details easily updated/added to Users able to match their own valve codes to PIP valves Established an INDUSTRY STANDARD for all valve manufacturers to migrate from word/pdf files to AEX Schema.


Implementation Steps PIP & FIATECH

Extend AEX XML schemas for PIP valve catalog data

SUPPLIERS

Load Equivalents

Convert PIP Catalog from Word Document to XML File

Model Number

Deploy Valve Matcher / Editor Web Site

Size Range

Weights

Links

/MFGS

OWNERS CONTRACTORS

Load Internal Catalog

Internal Number

Use for Technical Evaluations when purchasing valves Allows owners & contractors to use THEIR internal valve numbering system through design and create an easy cross reference for valve tagging at time of purchase

Valve Matcher will automatically time/date stamp all activity and provide last update information for each entry.


FINAL STEPS LAUNCH GVCC WEBSITE Key Aims: • • • • • •

Catalogs easily approved & uploaded by administrators Users have access to matcher system & catalogs Security control Equivalent valve data tables Report creation Easy downloading


Some Ideas for Web Expansion • Links to technical data • Geometry information • 3D models complete with operator configurations • Extend the business model to preferred suppliers – tiered pricing and availability based on need dates and lead times

• Help with inventory – i.e. valve management for just in time delivery to the jobsite or turn around • Valve performance feedback to manufacturers • Promote standard valve tagging.


BENEFITS • • • • •

S pecifications reviewed and verified on the front end M aintain current catalog information electronically A utomatically cross matches catalog with specifications R eduction of time, errors, and rework T imely process of quotation and orders GVCC PROJECT + SMART =

$$$ COST SAVING


We Need You! • The more companies participating, the better it is for everyone. • Incentives offered to join now as a project charter sponsor: – Lower cost now (versus waiting) – Influence project deliverables

NEED OWNERS who will pressure Manufacturers to join


Sponsor Companies • • • • • • • • • • • •

Aramco Services Company Arkema AVEVA BE&K, Inc. Bonney Forge Burns & McDonnell CH2M HILL Chevron Conoco-Phillips Evonik Degussa Corporation Eastman Chemical Company FMC Corporation

• • • • • • • • • • •

23

Holly Corporation Honeywell/UOP Huntsman Intergraph The Newdell Company REC Silicones Rohm & Haas S&B Engineering & Constructors, Ltd. Sunbelt Supply Sunoco, Inc. Tesoro


PIP CONFERENCE APRIL 22, 2009 HOUSTON, TX

Live Demonstrations of the System and how it works for Owners, Suppliers, Contractors, and Manufacturers Come to learn more, have questions answered in detail, and help to create the new industry standard for valves.


DISCUSSION: How can we Implement to Maximize Benefits?

http://fiatech.org/images/stories/events/techconference/2009/GlobalValveCrossreferenceeCatalogueGVCC  

http://fiatech.org/images/stories/events/techconference/2009/GlobalValveCrossreferenceeCatalogueGVCC.pdf

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