BIE Company Profile

The BIE GroupOverview

The BIE Group

BIE Became listed in 1994 on the UNITED

Nations Approvals Scheme for the

inspection of commodities and materials

deployed to sensitive international

regions of the world.

The BIE Value Statement

BIE is the largest non-listed quality management

company in the world. It’s an international and

independent third-party company that has the

capability and highly-skilled resources to provide

Project Management and Quality Services from

project design to commissioning. BIE also provides

Quality Assurance on manufacturing and installation

during project execution; and offers Quality Costing

throughout the project lifecycle.

The BIE Group Overview 2

BIE Group Global Footprint


Our Company Objectives

To provide project quality assurance from project conception to close-out.

To support the quality management system through quality assessments, reviews, audits and gap assessments.

To provide supplier capacity and capability assessment and post-contract supplier quality audit service.

To inform the level of subsequent quality interventions required to ensure supplier quality conformance.

To provide both statutory and non-statutory quality assurance and control services to projects and products from inception, through execution to commissioning.

To ensure project efficiency through quality costing and lessons learned.


Project Assurance


FEL

LESSONS LEARNE

D

CLOSE-OUT

EXECUTION

FEL

LESSONSLEARNED

CLOSE-OUT

EXECUTION

Cost of poor qualityLessons learned

Supply chain managementContract managementQuality controlCost and schedule control

Project close-outBusiness case close-out

Set-up for successValue creation Project reviewQuality assurance

Project Assurance: We Measure Your Project

Set-up for success.

Asset evaluation.

Guidance and business case development during the front end loading (FEL) process.

Development of FEL deliverables.

Gate compliance for FEL 1, 2 and 3.

Development and execution of the value creation process.

Determination of cost, time and return on investment accuracy.

Project integration.



Risk integration.

Monitoring of deliverables against the project execution plan.

Compliance to bankable requirements of the funding institution.

Due diligence evaluations for proposed acquisitions.

Accurate reporting on the quality progress of the project.

Project execution.

• Schedule and cost management.

• Product quality.



Project close-out

• Project closure.

• Business case closure including post-investment review.

Quality costing and lessons learned

• QTrac: automated quality management and quality costing.

• Lessons learned database and workflow.


Project Quality Services offered by BIE

BIE controls and co-ordinates all quality aspects of a project from design through contract award; and releases controls for commissioning and business close-out.

Quality interface with the project schedule and constraints.

Procurement and purchasing quality assurance.

Vendor assessments.

Supply chain quality management including expediting.

Quality engineering.

On- and off-site quality control.

Project quality and technical audits and assessments.

Third-party inspection authority activities.

Specialist engineering services.

Quality costing and lessons learned.9

Management Services offered by BIE

Quality assurance services based on the ISO 9001 series are undertaken in the manufacturing, construction, fabrication and engineering sectors.

The services include pre-contract award surveys, supplier technical evaluations, quality management audits and product audits.

Companies are assisted to develop, document and implement successful accreditation for ISO 9001, ISO 14001 and OHSAS 18001.


Audit Services offered by BIE

The pre-qualification of suppliers against any given criteria i.e. ISO 9001 or specific technical capabilities.

Audits on projects and sub contractors engaged in project execution.

Remedial audits to determine causes of non-conformance and defects.

Product audits.

Design audits.

Site quality audits.

Close out audits.


Experienced office-based and field expeditors are utilised to verify the manufacturing status of the product; and to ensure rapid and accurate progress of orders from inception to completion.

Expediting services are conducted locally and internationally, either associated with major projects or on a specific commodity basis.

The expediting of documentation, software, hardware and equipment.

Expediting services extend from contract placement through commissioning to site handover.

Expediting includes the approval of progress payments against known status and the management of waivers of lien.

The interaction and communication between the expeditor, inspectors, project planners and project managers are critical for successful and timeous project completion.


Expediting Services offered by BIE

Design Review: BIE has a professional engineering capability which includes Design Review activities on

mechanical, electrical, civil and structural engineering components including pressurized systems/boilers and is

carried out in terms of the applicable codes, specifications and regulations.

Technical Risk Management: Technical risk management services include process plant and mining operations,

petrochemical processing, manufacturing and various Industrial activities. Also included are industrial risk

control programmes, HAZOP studies, risk reviews of operating plants, fire risk analysis and control.

Failure Investigations: BIE has the necessary expertise and support mechanisms including access to metallurgical

laboratories and NDT facilities to carry out failure investigations on a wide range of equipment and materials.

Statutory Inspections: BIE works with a government approved inspection authority. We can provide:

• Design review and approvals to various codes and standards.

• Third party surveillance during manufacture.

• Certification and re-certification of pressure vessels.

• In-service inspection of boilers and pressure retaining equipment.


Specialist Services offered by BIE

The Cost of Poor QualityThe Cost of Poor Quality

Global infrastructure spending to reach $9 trillion by 2025

Source: Oxford Economics, PWC Capital Projects and Infrastructure Report 2013

Worldwide, capital project and infrastructure spending

is expected to total more than $9 trillion by 2025, up

from $4 trillion in 2012

Economic return generated for every dollar spent on a

capital project

15

Total Quality Costs may constitute 8% - 15% of total

construction costs.

3

The BIE Group Overview

The Business Cost of Poor Quality

The inter-relationship of quality, cost and schedule is

likely to be unbalanced in favour of schedule and

costs – and often unwittingly at the expense of

quality. This imbalance will continue to exist as long

as the real cost of quality remains hidden among

total costs. Such a condition can incur a still greater

imbalance whenever the rising, but hidden true cost

of quality grows to a magnitude that can significantly

affect a company’s competitive position.


COST SCHEDULE

PROJECTMANAGEMENT

QUALITY

Cost of Poor Quality: Petrobras Floating Oil Rig Disaster


BEFORE AFTER

Petrobras has established a new program of cost cutting on its P36 production facility. Through an integrated network of facilitated workshops, the project successfully rejected the established constricting and negative influences of prescriptive engineering, onerous quality requirements, and outdated concepts of inspection and client control.

11 crew members were killed and one member of the attending fire-fighting crew fatally injured. The estimated cost of the accident was $450 million.Environmental costs: inestimable

Cost of Poor Quality: Toyota Vehicle Recall


AFTER“The company is paying for focusing on growth and taking itseye off quality” (James P. Womack New York Times)

“Toyota has adopted a number of measures in recentmonths to address its safety problems. It is sending 40engineers from its headquarters in Toyota City, Japan, tomonitor quality issues at technical centres overseas,auditing parts suppliers and adding a month to the averagefour-month testing time for new vehicles.” (Financial Times)

Katsutoshi Sakata, manager of a newly created divisionoverseeing design quality, said in an interview this week thatToyota had assigned about 1,000 employees to new quality-related tasks since the recall crisis began.”(Financial Times)

Toyota CEO apologizes: Toyota CEO apologises

US Government officials say a possible link to 93 deaths over the past decade were identified.

Estimated cost on recall: $5,5 billion Impact on firm reputation: inestimable

https://www.youtube.com/watch?v=OIHgB6GHTwQ

The Business Cost of Poor Quality

Safety and environmental implications due to non-compliance with statutory quality requirements.

Non-conformance of products.

Replacement and rework cost.

Project delays due to non-compliance with regulations and resultant rework.

Lack of quality management (QA & QC) on a project/service/ product.

Lack of quality requirements in Client enquiries or final contracts with Suppliers.

Incompetent suppliers leading to delivery of substandard products/services.

Project delays due to replacement of suppliers.

Additional cost and compensation claims from suppliers.

Reduced plant availability, reliability and life.


Quality for Industry


QTR

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BIEQUALITY FOR

INDUSTRY

PLANNING AND COST ENGINEERING

The ultimate value of QTrac lies in the

conversion of Quality Costing to Lessons

Learned through an integrated risk

management system which enables improved

business and cost management for companies,

waste reduction and continual improvement.

QTrac Vision and Mission

Vision Statement

Providing Clients with a strategic advantage through the measurement and reduction of quality costs.

Mission Statement

Capture, analyse and advise Clients on the cost of quality combined with lessons learned to improve business processes and drive profitability.


QTrac Value Proposition

Executive Control

• Discrete and real-time information to ensure

full understanding and control of cost and

investment in quality

Drive Profitability: Measure to manage

• Quantify return on investment

• Measure direct and indirect quality costs

Drive Continual Business Improvement• Continuously improve through lessons learnt

• Enhance risk identification and mitigation

strategies

• Enhance project performance

• Retain knowledge and skills

• Retain corporate memory

• Implement Client focussed training courses

and coaching programs

• Increase competence and data analytic skills

to manage variances and risks

• Increase efficiency and productivity of the

Quality workforce

• Improved accuracy of Quality Information


QTrac Value Proposition

Knowledge management

Model quality management

Embed learning in the organization

Enhance communication and collaboration with a centralized system

Replace guesswork with science

Develop a formal framework that allows collaboration with other companies that use the same product - benchmarking best practices

Revolutionise quality management

Visibility

Make unknowns known

Visible quality cost performance indicators

Conversion of data to decision-making tools

Predictability

Improve budgeting and optimise resource allocation

Understand human resource and product performance

Identify trends and provide preventive measures to high quality costs

Standardise quality and cost metrics across the company


Quality Costing the PAF Model

COST OF QUALITY SUMMARY REPORT BASED ON OPERATING EXPENDTURE

TIME PERIOD: MARCH 2007 – JULY 2010

Total Prevention & Appraisal Cost as % TQC 48%

Total Failure Costs as % TQC 52%

Total Quality Costs as % Operating Expenditure 27%


Quality Costing Benchmark for an efficient QMS:

Failure costs as a % of TQC: 8% - 10%

TQC as a % of Operating Expenditure: 20%

Total prevention costs, 30%

Total appraisal costs, 18%

Total internal failure costs, 24%

Total external failure costs, 28%

Qu

alit

y C

ost

s (R

)

Internal and external failure costs

Prevention and appraisal costs

Total quality costs

0 100Quality of conformance (%)Optimal Investment

Claims Incurred by Disciplines


Total: R280 Million2005 - 2014

Notifications by Stage of Project


Project Lessons Learned


Analyse quality and cost reports

Identify lessons learned

Integrate risk management

Adapt business processes

Category Coding: PMBoK®

1. Project Integration Management

2. Project Scope Management

3. Project Time Management

4. Project Cost Management

5. Project Quality Management

6. Project Human Resource Management

7. Project Communications Management

8. Project Risk Management

9. Project Procurement Management

10. Project Safety Management

11. Project Environmental Management

12. Project Financial Management

13. Project Claim Management

Primary CodeSecondary

CodeTertiary Code Tertiary Code

Project Management

Project Integration Management

Project plan development

PMT-INTG-1

Project plan execution

PMT-INTG-2

Integrated change control

PMT-INTG-3

Project Scope Management

Initiation PMT-SCOPE-1

Scope planning PMT-SCOPE-2

Scope definition

PMT-SCOPE-3

Scope verification

PMT-SCOPE-4

Scope changecontrol

PMT-SCOPE-5

28

8

Lessons Learned and Best Practices System Design

Design of the QTrac Lessons Learned System


10. Graph Analysis

9. Coding Analysis Tertiary Count

8. Coding Analysis Secondary Count

7. Coding Analysis Primary Count

6. Coding Count

5. Coding Detail

4. Database

3. Operations Count

2. Filter Options

1. Notes

Define filter parameters 2

Capture Incidents 1

GraphicalResults 3

Lessons Learned Trending Company APrimary Code Analysis

Technical,

24.2%

Safety, Health &

Environment, 4.4%

Finance & Information

Management, 3.2%Site & Facilities

Management, 2.9%

Corporate Affairs, 2.1%

Project Management, 63.2%

30

9


Lessons Learned Trending Company ABreakdown of Primary into Secondary Coding

CAF-SOCT

SHE-SAFE

FIM-FIN

SFM-EQP

TEC-DRWG

PMT-INTG

PMT-SCOPE

TEC-DSGN

SFM-SITE

FIM-CLAIM

SHE-ENVT

PMT-TIME

TEC-GEOT

FIM-IM

CAF-HOUS

PMT-COST

FIM-SUPL

PMT-QUAL

TEC-CTRL

TEC-CNMT

FIM-LOG

PMT-HR

PMT-COMSPMT-RISK

PMT-PRMT

PMT-STKHPMT-LEGL

Project

Management

Technical Site &Facilities

Management

Finance &

Information

Management

Safety, Health

& Environment

Corporate

Affairs

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pe

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31

9


Lessons Learned Trending Company ATop-10 Secondary Code Analysis

98

70 66

48 43 41 39 3825 21

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%20%

34%

48%

58%

66%

83%

75%

91%

96% 100%P

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9


Lessons Learned Trending Company ATop-10 Tertiary Code Analysis

64

3227 24 23 23 22 19 18 15

0%

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50%

60%

70%

80%

90%

100%

0

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36%

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55%

64%

81%

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9


Lessons Learned Trending Company B Primary (6M) Code Analysis

34

2.4%

14.5%

0.6%

46.5% 32.3%

3.9%

Man (Manpower)

Milieu (Environment)

Material

Measurement

Machine (Means)

Method

9


Lessons Learned Trending Company BTop-10 6M Secondary Code Analysis

35

0Skills/

ResourcesPlanning & Scheduling

ComponentMalfunction

Workmanship MaintenanceShortfall

Management Controls

Target Date/Time

Spares Availability

Behaviour/Discipline

EngineeringFunctions

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5

10

15

20

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3557%

68%

84%78%

90%95%

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9


Preventive Measures

36

Primary

Barriers:

Administrative

ControlsTechnical

ControlsSystem

Controls

Behavioural

Controls

Incident

Tertiary

Barriers

Secondary

Barriers

A

B

C

D

Procedure Name/DescriptionPRO001 Quality System ReviewPRO002 Control of DocumentsPRO003 Control of RecordsPRO004 Control and Disposition of Non-Conforming ProductPRO005 Corrective/Preventive ActionsPRO006 Quality Circles and Continual ImprovementPRO007 Appointment of Chief DesignerPRO008 Design Process ControlPRO009 Query NotesPRO010 Process Planning and ApprovalPRO011 Control of Identification and Certification StampsPRO012 First-Off InspectionPRO013 Manufacturing Method Proving and First Article ApprovalPRO014 Control of Special ProcessesPRO015 Serialisation and Identification of Parts and AssembliesPRO016 Protection and Preservation of Parts and Assemblies in ProcessPRO017 Inspection and Test StatusPRO018 Rejection Note/Non-Conformance ReportPRO019 Quarantine Store/AreaPRO020 Material Review BoardPRO021 Concession and Deviation RequestPRO022 Root Cause AnalysisPRO023 Scrap DisposalPRO024 Cost of Non-Conforming ProductPRO025 Lessons Learned and Best PracticesPRO026 Trending of Lessons Learned and Best Practices


Global Quality Cost Benchmarks

Total Quality Costs may constitute 8% - 15% of total construction costs.

An average contractor is estimated to spend between 5% - 10% of the project costs on rework.

Spending 1% more on prevention costs reduced failure costs from 10% to 2% of construction costs.

Total construction costs can be reduced by approximately 25% with the implementation of a sound quality management system.


QTrac Scope of Services

38

Implementation ServicesImplementation Services consist of:• QTrac Business and

Gap Analysis• Qtrac Implementation

Management• Qtrac Project

Management

Technology ServicesTechnology Services consist of:• QTrac Licencing • QTrac Continuous

improvement• QTrac Maintenance

and Support Services• QTrac Customisation

Services• QTrac Integration• QTrac Data

Management

Training & Customer CareConsulting Services consist of:• Skills and

Knowledge Training• QTrac Software

Training• QTrac User

Certification• Coaching and

Customer Care




• Business Process Requirements• Functional and Interface

Requirements• Identification of Gaps• Recommendations • Final Implementation proposal

• Software Customisation• Customisation of Training Material• Super User Training• Interface development• Handover to Client

• Project Stakeholder Management• Project Budget and Cost Control• Project Schedule and Control• Project Team dynamics• Communications Management• Change Management• Risk Management• Document Management• Commercial Agreements• Contract Management• Procurement Management• Quality Management



Data Management• Data Analysis• Diagnostics & Trending

Continuous Improvement• Continuous alignment with

Quality Best Practices• Release and version

Management

Integration• Integration between QTrac and

Client Specific Systems e.g. SAP, Oracle, BPCS AccPac etc.

Licensing• Commercial agreement – EULA• License Administration• License Models• License Annual Renewals

Continuous Improvement• Help Desk Support Services• Service Level Agreement and

Service Level Management• Service Level Reporting

Customisation• Enhancement of current feature

set• Customer specific enhancement



Software• QTrac Basic• QTrac Intermediate• QTrac Advanced• Mastering Pivot Tables

Certifications• Member of the SAIIE and ECSA• Member of Project Control

Institute (AACESA), • Member of ASQ• Member of the SA Section of the

USA-based Association for the Advancement of Cost Engineering, in terms of which we offer courses to obtain accredited qualifications

Skills & Knowledge• Quality Costing for Operations

Level• Quality Costing for Middle

Management Level• Quality Costing for Executive Level• Quality Assurance and Control in

Project Management• Benchmarking and Lessons

Learned• Coaching

The School of Mechanical, Industrial and Nuclear Engineering at North-West University and BIE have entered an official partnership to offer training courses in Quality at NQF Level 8.

All training courses are accredited by the Engineering Council of South Africa for continuous professional development.

Seminars and short courses maynbe specifically tailored to meet each Client’s individual requirements.

BIE will provide training on-site if required by the Client.

BIE and NWU – a training partnership


BIE Technology Transfer

BIE is committed to technology transfer in the design, establishment and integration of quality management programmes, QAQC and quality costing.

BIE is committed to the development of the necessary skills and knowledge in achieving its mandate for joint ventures, industrial cooperation and economic development in Africa.


BIE Customer Base


INFRASTRUCTURE

CONSULTING

PETROCHEMICAL, OIL & GAS ENGINEERING

BIE Customer Base


MINING ENERGY CONSTRUCTION

BIE Partnerships


The BIE Group www.biegroup.com


BIE South AfricaB.I.E. International Engineers (Pty) Ltd

Gateview House A2, Ground Floor,Constantia Office Park, Cnr. 14th Ave & Hendrik

Potgieter, Weltevreden Park, South AfricaTel. No.: (27) 11 475-1030Fax No.:(27) 11 475-3443E-mail: [email protected]

BIE United KingdomBritish Inspecting Engineers Ltd

Chatsworth Technology ParkDunston Road, Chesterfield

Derbyshire S41 8XA, UKTel. No. : 44 (1246) 260-260Fax No. : 44 (1246) 260-919

E-mail : [email protected]

BIE AustraliaBIE International (Aust) Pty Ltd

30 Richardson StreetWest Perth W.A. 6872, Australia

Tel. No. : 61 (8) 93225876Fax No. : 61 (8) 94813454


BIE ItalyB.I.E. International S.r.l.Via Degli Innocenti, 2

50063 Figline ValdaranoFlorence, Italy

Tel. No.: 39 055 915 222 Fax No.:39 055 915 226

E-mail: [email protected]

BIE USAB.I.E. International Inc.

1160 Dairy Ashford, Suite 325Houston, Texas 77079, USATel. No.:1 (281) 556-0234Fax No.:1 (281) 556-8748

E-mail: [email protected]

BIE NetherlandsBIE International BV

Damlaan 182265 AN Leidschendam, The Netherlands

Tel. No. : 31 (70) 357-1720Fax No. : 31 (70) 357 1777


48

Thank you for

your attention.

Questions?
