Intergraph will be a sponsor at the Engineering and Construction Contracting conference (www.ecc-conference.org) to be held in Colorado Springs, Colorado. One of the most compelling topics on the agenda is high value/low cost centers for project execution – in other words, outsourcing. Fluor, Atofina Chemicals, Chemtex, and IPA are among the companies that have used or evaluated outsourcing as a strategy for a number of years.
Bringing together technological, social, organizational, and competitive issues, outsourcing has become a flash point for the future of engineering and global project execution. Successful outsourcing relies on information technologies, which build a bridge between geography and processes. IT cornerstones include compatible work processes, seamless communication, transferable knowledge and expertise, and a well defined set of deliverables for completion.
Here’s a preview of what Fluor, Atofina Chemicals, Chemtex, and IPA will share at the upcoming ECC conference.
Consistent work processes and technology are essential for a high value center to be effective. Organizations involved in the project must mesh their work processes to the point that different geographies and time zones become transparent, even irrelevant. We’ve all seen how “throwing work over the wall,” where there are loose ties between each center’s processes, leads to inefficiencies, delays, and financial losses. IT provides the basis for defining and documenting processes and establishes a common framework for all project participants to deliver value.
Communication makes the world go `round. New technologies have taken communication to higher and broader levels. Collaboration software, Web-based model viewing, video conferencing, document/content management, and integrated data models enhance and improve our interactions while providing a consistent method for tracking progress and resolving issues on a time-sensitive basis. Face-to-face meetings and regular phone conversations round out the circle of communication.
Establish a clear set of deliverable requirements, not only in content but also in form of delivery. Up front, set in place a specific and common process for how project information will be delivered. Each office should prepare its work products in a universally transferable fashion to minimize incompatibility and maximize downstream use of project information. Delivery standards include not only what data will be stored and where, but also how it will be reported and shown on a drawing. An obvious but often overlooked point: be sure all offices are using the same version of software. This “small issue” can have a huge impact on the project.
Protecting intellectual property. Loss or breaches in securing intellectual property are serious concerns to any global venture. Private networks and electronic permissions down to the individual data level now bring a higher level of control and confidence that intellectual property is safe.
Knowledge management is a core capability. IT is helping project teams leverage the skill of experts who are in demand around the world. When the capture and access to knowledge is considered part of a global execution strategy, great things can happen: reusing project information, learning through queries posted through virtual communities, performing large scale searches based on key words, full-text indexing, and instantaneous access to expertise. How a company leverages its Information Assets is becoming a key differentiator, with real competitive value.
Engineering centers don’t have to be located 10,000 miles or twelve time zones apart to make these strategies work. Put them to work even if the centers are located on different floors of the same building. New engineering efficiencies will be just around the corner.
Joe Morray is president of Trinity Technologies Corp., process industries consulting firm that helps owner/operators and EPC firms succeed in the use of information systems. The company specializes in driving companies to align work processes, technology, and organizational change requirements for the plant environment.