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.
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
3M
Adv. Silicon Mat’ls.
Aramco Services
Arkema Inc.
BP
Celanese
Chevron Corp.
Citgo
ConocoPhillips
CYTEC
Degussa Corp.
DuPont
Eastman Chemical
Flint Hills Resources
FMC
Great Lakes Chemical
Honeywell
HOVENSA L.L.C.
Huntsman
Monsanto
PPG
Rohm and Haas
Shell Oil
Solutia
Sunoco
UOP
PIP Members: Contractors
Aker Kvaerner
BE&K
Bechtel
Burns & McDonnell
Chemtex International
Fluor
Jacobs
KBR
S&B E&C
Technip
WorleyParsons 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 Vision
PIP 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
SOCIETYSOCIETY
STANDARDSSTANDARDS
INTERNALINTERNAL
STANDARDSSTANDARDS
INTERNALINTERNAL
STANDARDSSTANDARDSPIPPIP
SITE SPECIFICSITE SPECIFICSITE SPECIFICSITE SPECIFIC
BeforePIP
SOCIETYSOCIETY
STANDARDSSTANDARDS
Principles for Success(1 of 2)
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)
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 DisciplinesPIP 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
4043
2031
6179
2130
6369
219234
2033
7 80
50
100
150
200
250
CSA CIR ELEC MACH PC PIPE VESS WPT
Published 451
Planned 527
Nu
mb
er
of
Pra
cti
ces
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
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PIP
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Pra
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Pra
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PIP
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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
Australia
Brazil
Canada
France
Germany
Great
Britain
Indonesia
Italy
Japan
Korea
Saudi
Arabia
Spain
Trinidad
UAE
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 Engineering
Arrington Companies
Canadian Natural Resources Limited (CNRL)
Carboline
Coffeyville Resource Refining
& Marketing LLC*
Emerson Process Management
GE Energy
GE 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 Williams
Southern 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
ASME
Aspen Technology
Aveva
Bentley Systems
Conestoga College
IEEE
Intergraph
ISA
National Insulation Association
St. Paul Technical College
Universidad 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 DistributionPractices Distribution
Copyright:
•“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