Confidential iBCS, Inc.
Lean Construction
25 March 2012
end-to-end Construction Process Integration
Ionel GRECESCU, P.Eng. Management Consultant &
Business Solutions Architect [email protected]
+44 7747 517977
independent Business Consulting Services, Inc.
iBCS Inc.• AEC / EPC
• Oil & Gas
• Power Generation
• Renewable Energy
• Process, Power & Marine
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AgendaCLM & PLM strategic positioning
CPI framework
Business Strategy
Construction BOM
Business Processes
Conclusion
CPI innovationCollaborative
end-to-endConstruction
ProcessIntegration
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What is Lean Design & Construction?
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Lean Design & Construction is a production management - based approach to project delivery - a new way to design and build capital facilities. Lean production management has caused a revolution in manufacturing design, supply and assembly. Applied to project design and delivery, Lean changes the way work is done throughout the delivery process. Lean Construction extends from the objectives of a lean production system - maximize value and minimize waste - to specific techniques, and applies them in a new project delivery process.
Source: Lean Construction Institute3
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Why Lean in Construction?
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Construction must improve its Processes, Methods & Tools by taking a Lean approach to improve collaboration and execution during the design, build and operate phases of the Lifecycle.
"The ability to exchange data among project team members is critical to collaboration, as is the ability to analyze data to improve a firm's performance."
"Better tools are needed that allow more intensive data sharing within and beyond individual firms, especially with owners and fabricators."
Source: Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency, 2013 © SmartMarket Report, McGraw Hill Construction
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What is PLM?A strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise from concept to end of life - integrating people, processes, and information.
Source: CIMdata
Enabling Construction Execution processes and best practices to involve suppliers, partners, customers, and various external enterprise stakeholders is particularly compelling and should result in substantially reduced costs, more innovation, and higher benefits.
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What is CLM?A strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of construction definition information across the extended enterprise from concept to end of life - integrating people, processes, and information.
• Construction is for CLM what Manufacturing is for PLM.
• CLM is an abstraction layer of PLM.
Semantically, Construction and Product are different but the Processes, Methods & Tools for managing it are similar.
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Leveraging the 3D paradigm
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3D based construction definition information is the lifeblood of the Construction Lifecycle Management business strategy.
Construction, Processes & Resources are a whole and are the building blocks of the CLM vision.
While CLM impacts all aspects of the enterprise, Virtual Engineering & Construction provide benefits in the design, engineering and construction realms.
Digital mock-up and Building Information Model are the building blocks of Construction Lifecycle Management.
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What is digital mock-up?The virtual design and simulation in 3D of a product and all components of its logical structure. Digital mock-up eliminates the need for expensive real mock-up. Manufacturers can develop virtually a digital mock-up of a product in full detail, simulating all its functions and anticipating the interaction among its various components. Since the digital mock-up contains all the data associated with the product, it is richer than the physical mock-up because al l simulation and calculations can be performed on it.
Digital mock-up is currently adopted in most of the industries from automotive and aerospace to as diverse industries such as fashion and apparel.
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What is Building Information Model?Building Information Model is a digital representation of physical and functional characteristics of a facility. A BIM model is a shared knowledge resource for information about a facility forming a reliable basis for decisions during its lifecycle; defined as existing from earliest conception to demolition. Source: The National BIM Project Committee
BIM is currently in the process of being adopted by the AEC/EPC ecosystem.
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Parametricism as Style - Parametricist manifesto
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We pursue the parametric design paradigm all the way, penetrating into all corners of the discipline. Systematic, adaptive variation, continuous differentiation (rather than mere variety), and dynamic, parametric figuration concerns all design tasks from urbanism to the level of tectonic detail, interior furnishings and the world of products. Source: Patrik Schumacher, London 2008
Parametric computing is the basis of the digital mock-up technological revolution without which we could not envision the emergence of the new architectural Parametricism style.
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Parametricism...
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From primitives in Gustav Eiffel’s famous tower in the XIX Century Paris…
To free-style surface modeling (NURBS) of the new parametricism style of the XXI Century…
We should thank Monsieur Bezier…
Construction Process Integration (CPI) is a framework consisting of horizontal end-to-end enterprise wide business processes focusing on Construction Lifecycle delivered through an ecosystem of seamlessly integrated Applications that bridge the gap between Engineering, Construction, Procurement and back-office enterprise systems.
CPI’s mission is to promote efficient collaboration between Construction disciplines and streamline Business Practices that result in increased profitability and significant savings for our customers.
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CPI – an innovative framework
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Objectives – CPI InnovationImprove the quality and topicality of technical information
• for example, providing consistent process documentation
Monitor the progress of a Construction at any stage in its Lifecycle
• for example, tracking actual costs, timing and milestones of Construction Lifecycle and comparing these to forecasted schedules and budgets
Analyze issues that might arise at any phase of a Construction Lifecycle
• for example, if costs exceed budget, CPI provides access to information about Construction Lifecycle critical items (data, projects and resources) that help users quickly understand the root causes
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Business strategy – Comprehensive ApproachConstruction Lifecycle Management (CLM) is a very broad business strategy that bridges the gap between Engineering, Construction, Procurement and back-office enterprise systems.
The CLM Strategy aims to cover missing support areas and to overcome the lack of integration and collaboration between different business tasks by facilitating the sharing of Construction information across all company functions, customers and suppliers.
CLM is about Lean Construction, inspired by PLM’s lean vision in discrete manufacturing.
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Business strategy – CPI ApproachConstruction Process Integration (CPI) is the goal of the broad CLM business strategy. It fills the applicative gap (business process & data flow) between Engineering and back-office Business systems such as Financials and Human Resources.
Project Management Quantity Takeoff
Estimating Tendering
Subcontracting Procurement Purchasing Scheduling Controlling
REVIT (BIM) AutoCAD / Inventor
TEKLA CATIA
EXCEL / MathCAD XML / IFC
Simulation data
Engineering
Construction Lifecycle ManagementBusiness
ERP
(SAP / ORACLE / IFS) Human Resources
Bill of Material Material Management
Back-office systems
...
Construction
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Typical Globally Integrated Enterprise in the AEC/EPC ecosystem
PLM CEM EAM ERP
TCP/IP CORBA/IIOP WSDL/SOAP…
Extended Enterprise: Functional View Abstraction Layer
Data Flow (necessary to support the Business Processes)
end-to-end Business Processes & Workflows (Functional Threads)
Construction Lifecycle timeline
Hardware Abstraction Layer (HAL)
Enterprise Applications Abstraction Layer
Data Flow Abstraction Layer
Business Processes Abstraction Layer
end-to-end Construction Processes Integration Abstraction Layer
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Design Engineering Tendering Construction Commission Operation Retirement
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Construction applicative backbone
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Owners & Operators
RequirementsFunctional Design
Geometry (3D Model based design)Construction Structure
Build Definition (Assemblies & Installations)Support Definition
Multi-physics Simulations
Geometry
Construction Lifecycle applicative backbone
PlannersFabricators
Regulatory AgenciesInspectors
Finance & Insurers• Unique data entry • Linked construction deliverables • Available for use
“as designed” “as engineered” "as build” “as maintained”
Architects & Engineers
• Single version of truth • 3D visualization • Model driven disciplines
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ERP - CPI process integration
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ProjectSetup • Estimating Tendering
Quotation
Contract Site Preparation
Master Data
Purchase Order
ERP Sales Order
Sub Contracting
Material Procurement Controlling Invoicing
Project Structure Costs
Service Entry
Invoice Payments
Invoice Payments
Requisition
Design Quantity SurveyingCPI
Customer Sales
Vendor BOM
ProjectManagement
Basics Create Project
Master Data
Sales Contract
Processing
Controlling Site
Preparation
Controlling Project
Controlling Sales
Invoice
Process
Procurement Subcontractor
Material
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Design Tendering ExecutionConstruction Lifecycle timeline
Typically, an AEC/EPC enterprise must align its ERP strategy with the CPI framework
to achieve seamless integration of their Construction Lifecycle applicative ecosystem.
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AEC/EPC is a unique ecosystemAEC/EPC ecosystem is more than simply, an industry.
• Architecture, Engineering & Construction (AEC) represents a critical Construction domain which main's mission is to design Capital Assets.
• Engineering, Procurement & Construction (EPC) represents also a critical Construction domain which main's mission is to build Capital Assets.
It is critical to add two more key players to the ecosystem:
• Owners Contract AEC stakeholders to design Capital Assets and EPC stakeholders to build it.
• Operators are Contracted by Owners to operate Capital Assets on their behalf.
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Why a Globally Integrated Enterprise?
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The globally integrated enterprise, fashions its strategy, management and operations to integrate production – and deliver value to clients – worldwide. That has been made possible by shared technologies and shared business standards, built on top of a global information technology and communications infrastructure.
Source: Samuel J. Palmisano – former CEO, IBM Corp.
A globally integrated enterprise in the AEC/EPC ecosystem is capable to "design anywhere, build anywhere, operate anywhere".
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What are Capital Assets?
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Capital Assets are facilities (properties) of any kind (purpose)
• Construction's focus is to design, build, operate Capital Assets
• The AEC/EPC ecosystem serves a large range of industry verticals:
Oil & Gas
Power Generation (Fossil, Renewables and Nuclear), Utilities
Process, Plant, Marine
Infrastructure, Civil
Government, Offices and Residential Buildings
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What is a modern Capital Asset?
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Capital Assets must incorporate green technologies
• Green technology means permanent energy footprint monitoring:
Displays information on current energy usage, CO2 usage, or water consumption against a target value
Demonstrates environmental commitment
Encourages energy saving behavior
Monitor display positioned for easy visual access and configuration
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What is a modern Capital Asset?
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Capital Assets must incorporate smart technologies
• Smart technology means:
Enabling the facility to react on price signals from the smart grid
Facility shifts or reduces its energy consumption in line with off peak times
Generates electricity for its own usage and acts as a provider to the grid
Permanently adapts its power demand to power generation
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Construction Data ManagementThe Construction Process Integration framework must provide "out of the box" a flexible data model tailored for the needs of the Architecture, Engineering & Construction industry and its best practices.
Construction BOM (Bill of Material) • The Construction BOM is an “as built” view of the Engineering BOM. • It must manage a relational list of “Items” for:
• all the categories of “units” that are used in the assembly of the final Construction project • all the capital equipment and the tools used in the build phase and its use schedule • it must manage the Bill of Quantities resulting from the released Engineering BOM • it must manage the Construction schedule • it must manage all the construction specifications documentation (regardless of the format) • It must manage the relationships between the Item categories
It must handle the Lifecycle of all the managed Item categories • each Item must have a customizable Lifecycle
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Business Processes (use cases) – Functional ThreadsThe Construction Process Integration framework manages all the interactions between the various enterprise stakeholders leveraging a set of ”out of the box” Business Processes. The framework allows the stakeholders to collaborate seamlessly to execute Model Driven Construction. The following Business Processes are supported:
• Construction Change Management • Collaborative Project Management • Bill of Quantities Management • Construction Material Management • Estimating • Tendering • Subcontracting • Purchasing • Scheduling • Controlling (Document Control, Cost Control, Project Control)
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Business Processes (use cases) – Functional Threads
The Construction Process Integration framework must provide at least a set of standard business processes based on industry best practices.
Construction BOM (Bill of Material) • for example, tracking actual costs, timing and milestones of Construction
Lifecycle and comparing these to forecasted schedules and budgets
Analyze issues during any phase of the Construction Lifecycle • for example, if costs exceed budget, CPI provides access to information about
Construction Lifecycle critical items (data, projects and resources) that help Stakeholders quickly understand the root causes
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ConclusionConstruction Lifecycle Management business strategy provides the technological framework to realize Construction Process Integration by:
• accelerating the Construction maturity (faster and more reliable processes)
• eliminating non value-add work (optimize processes, communication across construction and data flow process support)
• improving system maintainability and availability (up to date systems)
• optimizing the information availability when needed
Lean Construction challenges the belief that there must always be trade-offs between time, cost and quality.
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