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PIP Overview
American Society for QualityDesign and Construction
DivisionSeptember 2005
PIPWorking in Harmony
Improving Capital & Maintenance Efficiency
Objectives
• Broaden understanding of PIP initiative.• Raise awareness of PIP “value
proposition”. • Advocate “knowledge management”
opportunity and quality of Practices.• Display current state of PIP Practices. • Validate PIP harmonization process and
applicability to other industry segments.
Process Industry Practices
A consortium of companies sharing the goal of reducing
plant costs through development and
implementation of common industry practices for
detailed design, construction, procurement, operation, and maintenance of manufacturing facilities.
Value Proposition• Owners
– Project costs reduced. Estimated 2-5% reduction in Total Installed Costs. Application to maintenance work also.
• Contractors– Visibility and working with clients.
• Owners and Contractors - Impact on internal standards effort and effective use of technical resources:– Reduced creation / maintenance costs– Capturing “knowledge & experience”– Higher quality & consistently current– Leveraging of scarce resources– Networking opportunities within industry
PIP - “a small seed”
• PIP indeed began in 1992 as “a small seed”, planted and nurtured in the minds of a few visionaries for our industry.
The Small Seed “Is A Ladder Really Just A Ladder?”
PIP Member Consortium
• Fifteen members established PIP in 1993.
• Self-funded under CII.• Now includes 37 U.S. process
industry companies:– 26 owners– 11 EPC contractors
• Represents a significant share of the industry.
PIP Members: Owners
3MAdv. Silicon Mat’ls.Aramco ServicesArkema Inc.BP CelaneseChevron Corp.CitgoConocoPhillips
CYTECDegussa Corp.DuPontEastman ChemicalFlint Hills ResourcesFMCGreat Lakes
ChemicalHoneywellHOVENSA L.L.C.
HuntsmanMonsantoPPGRohm and
HaasShell OilSolutiaSunocoUOP
PIP Members: Contractors
Aker KvaernerBE&KBechtelBurns & McDonnellChemtex InternationalFluor
JacobsKBRS&B E&CTechnipWorleyParsons Ltd.
PIP Membership Requirements(1 of 2)
• Annual dues payment • Active Steering Team participant• At least one active qualified participant
on a function team • More active participation encouraged
PIP Membership Requirements(2 of 2)
• Provide internal non-proprietary standards for harmonization of industry Practices
• Input for Practices revisions• Voluntarily adopt & implement Practices• Follow PIP business guidelines• Commitment to improvement of the
process
PIP VisionPIP Practices are:• the “universal language” in
the industry for engineering, procurement, and construction,
• widely recognized and available electronically,
• up to date, of high quality, and used essentially “as is”,
• voluntarily adopted and used by a majority.
WithPIP
INTRNL STDSINTRNL STDS
SOCIETYSOCIETYSTANDARDSSTANDARDS
INTERNALINTERNAL
STANDARDSSTANDARDSPIPPIP
SITE SPECIFICSITE SPECIFICSITE SPECIFICSITE SPECIFIC
BeforePIP
SOCIETYSOCIETYSTANDARDSSTANDARDS
Principles for Success(1 of 2)
•Participation is voluntary and open to all qualified.
•Funded & supported by participating companies.
•Develop recommended Practices based on existing company internal standards.
•Influence other organizations to adapt their standards to meet process industry needs.
•No duplication of work of others.•Work only with non-proprietary information.
Principles for Success(2 of 2)
•High level of participation.•Operate on “break-even” basis; small
staff.•Published Practices available for
purchase by any interested party.•Provide long-term support for updating.•Use streamlined, short cycle time,
technically sound process.
PIP Engineering Disciplines
• Civil, Structural, Architectural • Coatings, Insulation, and Refractory • Electrical• Machinery• P&ID• Piping• Process Control and Analyzers• Vessels (Includes shell & tube exchangers and
tanks)• Work Processes (Internal to PIP)
Organization
FUNCTION TEAM LEADERS (FUNCTION TEAM LEADERS & SPONSORS)
PIP STEERING TEAM
EXECUTIVE COMMITTEE
FTS1 FTSn
FTLn
TASK TEAMS
TASK TEAMS
CSA
FTL1
TASK TEAMS
ELECTRICAL
FTL2
TASK TEAMS
CIR
FTL3
TASK TEAMS
MACHINERY
FTL4
TASK TEAMS
PIPING
FTL5
TASK TEAMS
P & I D
FTL6
TASK TEAMS
VESSEL
FTL7
TASK TEAMS
PROC CTL
FTL8
STANDING COMMITTEES
LEGAL
MARKETING
WORK PROCESSES
FTS2
STRATEGIC PLANNING
GLOBALIZATION
Practices by Discipline
40432031
6179
2130
6369
219234
2033
7 80
50
100
150
200
250
CSA CIR ELEC MACH PC PIPE VESS WPT
Published 451Planned 527
Num
ber
of P
ract
ices
Members’ Reported Successes(1 of 2)
• More than 30 percent reduction in costs for maintaining internal company standards.
• Reduced valve inventory by 10 percent using PIP Practices.
• PIP Piping Practices save up to 1.6 percent of total installed cost and 2 weeks on schedule.
Members’ Reported Successes(2 of 2)
• Reduced piping group work hours by 25% on typical project.
• Saving $250,000 per year on annual maintenance of internal specifications.
• Reduced specification development and set-up time by 5-10%.
• Substantial reduction in hours required to develop/maintain valve data sheets.
Implementation Resource Center
• Member’s addenda
• Systems examples
• Success stories• Tools• Metrics• Lessons Learned
(www.pip.org/members/irc/index.html)
Members’ Adoption and Implementation Data
• Adopted• Plan to adopt• Undecided• Adoption not planned
• Implemented(84% “as is”)
51%12%19%17%
25%
Individual Practices
Data Collection Existing company standards
Data Analysis Define similarities, differences
Model Development Align similarities and harmonize
Model Test Industry “experts”
Model Application PIP Industry Practice
PIP Harmonization Process
PIP Mem
ber Co. CPIP M
ember Co. C
Engineering StandardsEngineering Standards
PIP Mem
ber Co. BPIP M
ember Co. B
Engineering StandardsEngineering Standards PIP Practices
PIP Practices
PIP Mem
ber Co. APIP M
ember Co. A
Engineering StandardsEngineering Standards
Member Companies Harmonizing
AdoptingProcess Industry
Engineering –Procurement –
Construction Process
Harmonization Potential
• Promote use of PIP as core for harmonizing EPC industry practices.
• Key adjunct to “knowledge management” strategy with loss of technical resources.
• Continue providing input to industry on standards and code development.
• Guide technology development and application.
• Help globalization of EPC industry practices.
PIP Impact: Industry “Voice”
• Actively interfaced with other industry groups (e.g. Hydraulic Institute, Steel Plate Fabricators Association, Material Technology Institute, National Insulation Association, etc.).
• Successfully petitioned International Building Code (IBC) for code exceptions on industrial equipment platforms.
PIP Impact:Collaborative and Joint Efforts
(1 of 2)
• API (American Petroleum Institute)– Machinery Installation (API RP 686)– Welding (API RP 582)– DCS Process Instrumentation & Control (API RP 554)– Other Standards Revisions
• ASME (American Society of Mechanical Engineers) – Pump Data Sheets (ASME B 73.1)– Granular Storage Bins & Tanks
• FIATECH (Fully Integrated & Automated Technologies)– AEX-XML Project for data sheets– Global Valve Cross-Reference eCatalog
PIP Impact:Collaborative and Joint Efforts
(2 of 2)
• ISA (Instrumentation Systems & Automation Society)– P&IDs (Piping & Instrumentation Diagram)– Safety Instrumented Systems Guidelines
• IEEE (The Institute of Electrical & Electronic Engineers)– Motor Data Sheets (IEEE 841)
• NIA (National Insulation Association)– Insulation Practices for National training
session
Globalization As A Priority
• Lack of globalization is seen as impediment to adoption.
• Most major projects now international and trend will continue.
• Globalization is a trend for all business sectors.
Global Distribution of PIP Practices
AustraliaBrazilCanadaFranceGermanyGreat
BritainIndonesia
ItalyJapanKoreaSaudi
ArabiaSpainTrinidadUAE
Purpose of Globalization Committee
• Develop strategies and action plans to enable use of PIPs outside U.S.
• Frame issues for presentation to Steering Team.
• Result should be phased action plan.• Committee reports to Steering Team
and will monitor, provide information regarding globalization progress.
Subscription Program
• Annual electronic subscription (PDF files and Electronic Entry Data Sheets from PIP web site)
• Potential subscribers:– Owners and contractors
unable to commit resources to participate
– Suppliers and vendors• Cost - All Practices $30K per
year (currently discounted from $33K):
- or by discipline ($500 - $6K )
PIP Subscribers
Agrium*Ambitech EngineeringArrington CompaniesCanadian Natural Resources
Limited (CNRL)CarbolineCoffeyville Resource Refining & Marketing LLC* Emerson Process ManagementGE EnergyGE Silicones-OSI Specialties*Invista*
Kraton Polymers*Petroleum Company of Trinidad &
Tobago*Phoenix Park Gas Processors Ltd.*Saudi Basic Industries (SABIC)*Saudi International Petro-chemical
Co. (SIPCHEM)*Sherwin WilliamsSouthern Company*Stone & Webster Ltd.*The Williams Companies*WMC Resources Ltd.
Licensing Program• Available to related e-
commerce providers, systems developers, and value-added resellers.
• Allows including PIP Practices and derivatives in licensee’s product.
• Significant P&ID application• Educational institutions
PIP Licensees
ASMEAspen TechnologyAvevaBentley SystemsConestoga CollegeIEEEIntergraph
ISANational Insulation
AssociationSt. Paul Technical CollegeUniversidad Nacional
Autonoma de Mexico University of South Dakota
PIP Successes
• “Case for Change” development• Published over 450 PIP Practices• Collaboration with Standards
Development Organizations (SDO) • Membership, Subscription, and License
growth • PIP is heard as an “industry voice”• Enabling global application of Practices
Practices DistributionCopyright:
•“Process Industry Practices, Construction Industry Institute, The University of Texas at Austin”
Distribution:•Member companies as benefit of membership
•Unlimited right to copy for members and subscribers
•Electronic to members and subscribers•Paper copies to non-members
Value Proposition for PIP• Reduced Costs for:
– Projects and Maintenance– Maintaining internal standards– Commodity equipment procurement– Detail design and construction hours
• Reduced inventories of valves and piping materials
• Improved “Knowledge Management” & Quality:– Fewer spec conflicts and code inconsistencies– Alignment with industry “Best Practices”– Widespread understanding of common specs
Driving Greater Capital and Maintenance Efficiency
Visit us on the Webwww.pip.org