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GVCC Project – Fluor perspective Opportunities for standardization Ron Merrick Fluor, Houston TX April 25, 2006

Fluor Background • Fluor is 169 on Fortune 500, 1 on ENR list • Spend is upwards of $1B/year on bulk materials • Fluor buys 1% of API valves worldwide • Material system is called MaterialManagersm created and maintained internally • Average 200 active projects/yr worldwide, 30/yr in Houston, run through MatMan

MaterialManagersm • Master catalog and line classes, maintained by discipline specialists • Project data can come from master or be created at project level • Integrated system, containing material control, PO, expediting, logistics, receiving and issuing • SAP is used for financial rollup only

MaterialManagersm Internal Standard • Fluor already has a very standardized system of describing materials, transcending the material system. • System is used for all bulks, with very similar description format and choice of wording across bulk disciplines, and within discipline on various types of material. • Sizes are not part of the description.

MaterialManagersm Internal Standard • We maintain, in the master, about 2500 valve records that represent frequently / occasionally used descriptions. • Thousands more could be created from these patterns. • Information about which descriptions to write comes from industry practice and project feedback.

MaterialManagersm Project Usage • By contrast, a typical project uses a few hundred valve descriptions to cover manual valve requirements. • Valve descriptions used on almost all projects, “common valves”, number about a hundred or so. • Project valve descriptions can have master itemcode numbers or project-assigned numbers (client codes, for instance).

Example Detail Valve Description •

Detail of description record, showing short description used in line class, purchase description and engineering data used for sorting and PDS use

Example Size Designation •

Detail of size records and references

Experience • These descriptions have been maintained in a similar format since the early 70s, and as a result there is a lot of familiarity both internally and externally. • Numerous clients have based their own description formats on this, sometimes with our assistance, sometimes without‌.

Mapping to GVCC • The data contained in these descriptions has once had a complete conversion to noun/modifier format, courtesy of SAP, so its integrity as structured data is validated. • They could be exported to GVCC format with a little parsing, but no rewriting.

GVCC Benefits to Fluor • We see GVCC as useful for several things: – Exporting the catalog to suppliers for xref or background information for bidding – Xref to PIP numbers or client numbers – Capturing data for importing into project catalogs – Some things I haven’t thought of yet.

GVCC Implementation • Execution strategy: – When GVCC becomes available, we will spend some time populating it with the master catalog data. – Time frame depends on how busy we are. – We will make it available on request. – This will be uncontrolled data.

GVCC Potential at Fluor • Future direction: – It is possible the catalog will be converted to knowledge objects. – In that case, I can use this data if we associate the descriptions to PIP numbers, or other future nomenclature. – Other undefined opportunities……

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