Process Industry Practices

Marriott Houston North @ Greenspoint April 25, 2007Annual Conference

Global Valve Cross-reference

eCatalog Workshop (GVCC)

This project takes PIP specs and combines them with the FIATECH

vision of automation to create a new industry standard for the specification, evaluation, and

purchase of valves.

Agenda• History of the Project• Benefits: Owner, Contractors, Supplier/Mfgs• The Products – Overview Editor

– Valve Matcher• The Valve Editor :

– Rajan Hingoraney, Aramco Services Company

• GVCC Project Status & PATH FORWARD– Jim Macek, FIATECH GVCC Project Manager– GVCC Workshop – May 7th 8:00-12:00, Houston

• Q & A, Discussion

Global Valve Cross-reference eCatalog

(GVCC) A FIATECH project in cooperation with PIP

to MAKE IT EASY to select the RIGHT valve for the RIGHT purpose

OWNERS, CONTRACTORS, SUPPLIERS & Manufacturers

EXISTING NEED• No Accepted Industry Standard Catalog for Valves

• PIP Valve Catalog published in WORD.

• Engineering must manually perform technical

validation on every valve order.

• Supplier/Mfgs must look up every valve and validate it meets the specs

• Owners have to create Cross Reference Indexes for different facilities or units designed by different engineering companies for their run and maintain activities.

OPPORTUNITY• A way to quickly verify that a submitted valve is

technically suitable for service– Supplier and purchaser engineers verify valve details manually– Correct valve materials, trim, etc are CRITICAL– Can take hours to find technical data and verify several valves

ENGINEERINGExisting Process – Manual Research to Validate Valves Submitted

Manual Technical Evaluation

4 Valve ManufacturersApprox. 2 hours/valve type

Or 20 x 2 = 40 hours

Place Order

Receive Quotes

Select Valves

that meet Technical

Requirements

End User Request ValveQuotation

Quotation sent toDistributor

Distributor sends toManufacturer

Manufacturer review ValveSpecification

Manufacturer needs clarification

Manufacturer Quotes

No

Send Clarification back toDistributor

Yes

95% of Valve QuotesRequire Clarification

Distributors SEND BACKTo contractor

Contractor SEND BACKTo engineer

Engineer makes decisionor forwards to End User

Decision made

To contractor

Engineer

To Distributor

DistributorSEND BACKTo Manufacturer

SEND BACK

SEND BACK

BEHIND THE CURTAINWORK PROCESS

Technical & Commercial Bid Tab Review & Approval

Purchase

Technical Data to Design

Expedite, Rcv, Issue, Install, Run & Maintain

ESTIMATED COST TO INDUSTRY

A MIDSIZE CONTRACTOR Spent Approximately 1,400 hours researching valves last year

MAJORITY of this work was performed on Cost Plus basis:

1,400 at $80/hr billing rate = $112,000

Estimates are that 200 engineers perform a similar function every year. Assume they ONLY spend 1,000 hours per year1,000 at $80/hr billing rate x 200 engineers =

$16,000,000/year EVERY YEAR

Supplier/MFG Behind the Curtain Activities :

Estimated as close to the above – ANOTHER $16,000,000/year

TOTAL FOR INDUSTRY: $32,000,000/Year EVERY YEAR

WHO PAYS?

Make No MISTAKE:

THE OWNERS PAY FOR EVERYTHING WE DO

Overt or COVERT

CONTRACTORS & SUPPLIERS HAVE NO MONEY

BENEFITS: Work Process Sample Valve Order 20 Different Types of Valves

Proposed Process – Using Online Valve Matcher Catalog System

2 hours per TYPE of valve is conservative. Researching Manufacturer sites and information can be time consuming

Existing Process – Manual Research to Validate Valves Submitted

Manual Technical Evaluation

4 Valve ManufacturersApprox. 2 hours/valve type

Or 20 x 2 = 40 hours

Place Order

Receive Quotes

Select Valves

that meet Technical

Requirements

Automatic Technical Evaluation

4 Valve ManufacturersApprox. 2 hours total

Place Order

Receive Quotes

Select Valves

that meet Technical

Requirements

95% Reduction in

Labor and Duration

Savings of 15 to $30,000,000

Per Year Every Year

11

Automation Opportunity• Technical verifications for bid proposal & evaluation

– Every submitted valve must be researched– Potential disaster if not technically sound

• PIP has extensive reference valve catalog– Currently in WORD (requires human interpretation)– Needs computer-interpretable format

• FIATECH has computer-interpretable format– Automating Equipment info eXchange (AEX)– EXtensible Markup Language (XML) format

• Internet standard text file format for structured data• Essentially a “database in a text file”

Implementation Steps

Allows owners & contractors to use THEIR internal valve numbering system through design and create an easy cross reference for valve tagging at time of purchase

Valve Matcher will automatically time/date stamp all activity and provide last update information for each entry.

Load Equivalents

Model Number Size Range Weights LinksSUPPLIERS

/MFGS

Load Internal Catalog

Internal NumberOWNERS

CONTRACTORSUse for Technical Evaluations when purchasing valves

Extend AEX XML schemas for PIP valve catalog data

PIP & FIATECH

Deploy Valve Matcher / Editor

Web Site

Convert PIP Catalog from

Word Document to XML File

BENEFITS to Owners, Contractors, Suppliers, Manufacturers

• Matcher/Cross Reference enables all to find a match using PIP as the common denominator.

• Allows all to continue to work with THEIR standard numbering systems

• Establishes an Industry standard to ensure we area all using the same valve.

• Most important: Eliminates WASTE and REDUNDANT activities to make our industry more productive

Workshop # 1

Topic: “GVCC – Demonstrating the Value”

Leaders: Ralph Miller, S&B, John Fish, Ford, Bacon & Davis

Notes:Is follow-through from last year’s workshop:

“Streamlining Valve Procurement Using GVCC”

Ken Hamilton, Consultant, will serve as PIP contact

Workshop # 1

Topic: “GVCC – Demonstrating the Value”

Leaders: Ralph Miller, S&B, John Fish, Ford, Bacon & Davis

Notes:Is follow-through from last year’s workshop:

“Streamlining Valve Procurement Using GVCC”

Ken Hamilton, Consultant, will serve as PIP contact

THE PRODUCTS Valve Editor

Valve Matcher

John Fish, S&B/FB&D

Valve Matcher

Validate/look up valve equivalents

List / report available valves

Research valve technical data

Access supplier technical data

Supplier Valve

Catalog

Internal Valve

Catalog

Valve Editor

Add/update MY valve catalog

Look up valve equivalents

Store internal matches & verifications

Provide access to technical data

PIP Valve Catalog

GVCC Deliverables

The Valve Editor - PIP & GVCC

Why & How

Rajan Hingoraney, Aramco Services Company

VALVE DESCRIPTIONS - CURRENT SITUATIONListed in 36 Practices – WORD files

Bronze & Iron – 5Carbon Steel – 6

Low Alloy – 3Miscellaneous Metals – 4Nickel & Nickel Alloy – 6

Plastic & Plastic-Lined – 5Stainless Steel - 7

VALVE DESCRIPTIONS - CURRENT SITUATION

• Descriptors are not always consistent• Editing and maintenance is time-

consuming• Global changes are difficult• Data exchange/transmittal is not

efficient

XML EXTENSIBLE MARKUP LANGUAGE

• Set of rules for structuring data• Easier for computer to generate data,

read data, and check data• Platform - independent• De-facto standard for information

exchange• A huge range of tools, development

environments, and components are available

WHY GVCC ?

• Obtain a database• Obtain a means to efficiently maintain

valve descriptions• Obtain a means to efficiently deliver and

exchange data

• Promote the use of 900+ PIP standardized valve descriptions

UPGRADED FEATURES

• Menu• One sheet for each type of valve• Dropdown list with relevant

options• Not every field used

VALVE EDITOR – Menu Options

User may open an existing catalog or create a new one, for example, select the PIP Ball Valve Catalog

VALVE MATCHER

Jim Macek, FIATECHGVCC Project Manager

VALVE MATCHER

• Microsoft Excel based search utility• Catalog selection options• Offering up to 10 search criteria fields• Ability to transfer selected match values

to Valve Catalog Entry Editor

VALVE MATCHER – Finding a match

• User chooses New Search option

• Catalogs to search are selected

VALVE MATCHER – Finding a match

• User chooses specifications from a provided list

VALVE MATCHER – Finding a match

• Matcher runs and provides details (5 at a time) from 1 or more Valve Catalogs

• User selects which of the valves to view in detail

NEXT STEPS

To Complete the Valve Matcher

Results:• Users all able to view PIP catalogs on own PCs• Users able to create their own catalog• Valve details easily updated/added to• Users able to match their own valve codes to PIP valves

FINAL STEPS

Provision of Website Facility

Key Aims:• Catalogs easily approved & uploaded by administrators• Users have access to matcher system & catalogs• Security control• Equivalent valve data tables• Report creation• Easy downloading

Current Project Status

Jim Macek, FIATECHGVCC Project Manager

PROJECT STATUS2005 - Completed XML schema development 1Q06 - Delivered Valve Editor template 2Q06 - Delivered Valve Matcher prototype

4Q06 - Delivered working prototype Valve Editor, - partial PIP valve catalog in cfiXML, and - functional Valve Matcher prototype and live demos

3Q07 - deliver the Valve Editor (product release), - complete the PIP valve catalog in cfiXML, and - deliver the Valve Matcher, Report Function and

Update Service

4Q07 - deliver GVCC web site and related web services

Sponsor Companies• Aramco Services Company• Arkema• AVEVA• BE&K, Inc.• Bonney Forge• Burns & McDonnell• CH2M HILL• Chevron• Degussa Corporation• Eastman Chemical Company• FMC Corporation

• Holly Corporation• Honeywell/UOP• Huntsman• Intergraph• The Newdell Company• REC Silicones• Rohm & Haas• S&B Engineering &

Constructors, Ltd.• Sunbelt Supply• Sunoco, Inc.

Shared Cost Fee Structure• Charter sponsors

(2006 before project deliverables completed)– PIP/FIATECH Members:

• 2006: $5,000 one-time fee

– Valve Distributors and Manufacturers• 2006: $5,000 project fee• 2007: $2,500 per year non-member subscription

• Subscribers (2006 after project deliverables completed and 2007+)– PIP/FIATECH Members:

• 2006+: $5,000 first year, $2,500 per year thereafter

– Non-PIP/FIATECH Members:• 2006+: $10,000 first year, $5,000 per year thereafter

We Need You!

• The more companies participating, the better it is for everyone.

• Incentives offered to join now as a project charter sponsor:– Lower cost now (versus

waiting)– Influence project deliverables

BENEFITS• S pecifications reviewed and verified on the front end

• M aintain current catalog information electronically

• A utomatically cross matches catalog with specifications

• R eduction of time, errors, and rework

• T imely process of quotation and orders

GVCC PROJECT + SMART =

$$$ COST SAVING

GVCC WORKSHOPMAY 9, 2007 8:00 – 11:30 (CORRECTION..!)S&B Sage OfficesBuilding D, Presentation Room3535 Sage Rd, Houston, TX

Detailed workshop to review and capture sponsor requirements and functionality.

Come to learn more, have questions answered in detail, and help to create the new industry standard for valves.

Questions???