Abstract
Cost overruns on lump sum turnkey projects have challenged Engineering, Procurement, and Construction (EPC) project implementations. Several causes can be attributed to this problem but common to all is that despite significant efforts spent in planning and estimating the job, most projects fail in the execution stage. A new approach to EPC projects execution and delivery combines better management of scope brought by the Advanced Work Packaging (AWP) procedure and efficiencies from the LEAN principles of an engaged workforce that was Toyota's success in manufacturing industry can be applied to construction industry. The implementation of this enhanced process supported by a digital tool, an end-to-end platform, can be extremely useful for projects in Petroleum Industry.
Methods, Procedures, Process: The approach has been designed to tackle three crucial challenges of project execution: people (company culture), process inefficiencies and data handling. The sense of inclusion, empowerment of a worker and the clarity of scope of every activity to be performed have a profound impact on the performance of the worker. It is designed to involve all stakeholders (from the owner to the last member of the crew) giving them an opportunity to contribute to the project implementation. The proposed enhancement of the processes at every stage of the project (from engineering to completion) drastically reduces the traditional inefficiencies of EPC projects which are responsible for cost overruns, schedule delays and poor quality of work.
Results, Observations, Conclusions: A plethora of digital tools used today in EPC industry create a large pool of data that can be leveraged to have an insight on the projects. However, all the data produced by different and disconnected tools are still used in silo and large data available creates complexity in analyzing and interpreting it. The AWP+LEAN approach brings transformation without disruption: an automated integration with existing systems used in the organization can be established in order to collect, give consistency and synchronize all the available information hassle-free.
The novelty of the approach presented in the paper compared to the other practices is its non-disruptive nature. The idea is to combine in a consistent fashion, all the information collected during the project by different tools and orchestrate them to provide a deep insight and granular visibility to the project. This means that there are no switching costs for the EPC companies and less resistance from people in adopting the new processes, making the journey to improvement easy and smooth.