AVEVA PERSPECTIVESPublished June 2012

Responding to a Changing IndustryInnovation for a new era in plant design

Responding to a Changing Industry - AVEVA PERSPECTIVES

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Contents

1. Introduction

2. A New Industry Era

3. Plant Design Fundamentals

4. Future of Plant Design

5. Summary

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Responding to a Changing Industry - AVEVA PERSPECTIVES

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1. Introduction

The intensity of change across plant industries is unprecedented from the impact of operating in a new economic climate, to increased opportunities in resource extraction and expanded market openings in emerging regions.

Industry players must determine how best to seize new market opportunities in an affordable and sustainable way. Responding to new levels of demand for energy and resources will require large-scale investment in infrastructure and plant assets. Decisions made today will influence the development of societies and industries for many years to come.

With a need for faster asset modification and creation to address new opportunities and increasing regulation, new pressures will be placed on capital project execution.

This paper looks at what is needed for modern plant design; it addresses the key fundamentals to project success and sets out to define the future of plant design.

With new opportunities to expand market reach and increasing global demand for resources, power and process industries are reviewing how best to modify and develop the capital assets that will support growth and sustainability.

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2. A New Industry Era

Power and process industries around the world are undergoing a period of intense evolution. Industry players must navigate thefast-changing economic climate while evaluating how best to make the investments required to support the worlds energy, resources and pharmaceutical needs for the decades to come.

The scale of the challenge is evident in the energy sector alone. The International Energy Agency (IEA) has estimated that a $38 trillion investment will be required to create and modernise the worlds energy system infrastructure, in order to meet projected energy demand through to 2035*. Chemical, pharmaceutical and mining industries also face new infrastructure investment demands.

To increase production capabilities, Owner Operators are moving into new geographies. Plant assets are being established in more remote, more hostile and higher-cost locations (such as the Arctic, Eastern Siberia and the Caspian), more challenging environments (such as deepwater), and more complex geopolitical situations.

In addition, many Owner Operators are looking to maximise the capacity of their existing plant assets as they pursue new routes for growth. Increasing the production capabilities of existing plants often results in plant lifetime extension projects involving

extensive modification work. This means that capital projects are growing in complexity and scale. They also require higher levels of governance to ensure deliverables remain on schedule, compliance is ensured and risk is managed effectively with external partners and in-house teams.

For the Engineering Procurement & Construction (EPC) company this means the creation and management of more complex process and power assets. This places more pressure on the speed and quality of project execution in order to maintain competitiveness against a background of changing regulations. The ability to orchestrate engineering skills, minimise costs and streamline management decisions to respond faster to evolving market conditions has never been greater.

To support new growth strategies and asset development, in a climate of economic uncertainty and growing focus on social responsibility, more collaborative conditions are emerging between Owner Operators and EPCs that place a greater emphasis on communication, data sharing and traceability.

This changing environment makes new demands on the processes involved in capital projects and the supporting technologies that contribute to their success, such as plant design software.

* World Energy Outlook, 2011

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3. Plant Design Fundamentals

So what should plant design software provide to help meet these challenges? Here, we outline the key fundamentals to the future of plant design.

Plant design software must be agile to deployPlant design software is inherently complex in nature and rich in functionality. It has to be, to allow engineers to be able to accurately do their jobs, but the implementation and deployment of plant design software, within the organisation and across into multiple partners or suppliers, need not be similarly complex. Focus needs to be applied to the engineering itself rather than to the technicalities of software configuration such as IT infrastructure and firewalls. Software must be employed which presents the fewest technical hurdles to implementation and deployment, while still delivering the correct functionality, scale and performance.

Simple to use rich in capabilityHaving powerful software, which is easy to deploy across the globe is a great starting point but, since the software does not produce the deliverables on its own, it is important to consider the human factor. In order to help the drive for productivity, design software needs to be easy to use, with organised user interfaces, not only to help users in their daily tasks but also to reduce the need for lengthy and costly training workshops, or complex system administration roles. Software must be employed in which the core tasks for design are intuitive and even enjoyable to use.

User mobility will accelerate design assuranceAfter a period of initial frenzy over the opportunities which mobile computing could present, the dust will settle on some simple and pragmatic applications to help project teams to speed up the review and approval process for design. Mobile devices such as tablets will play a key role in project management, giving decision-makers more agility and faster access to critical information for review and approval.

Greater process automation will be needed throughout the design chainPlant design software must spare engineers from menial and repetitive tasks, to help maximise their contribution to the design. Engineers who spend hours checking data formats and ensuring that the designs meet with corporate procedures are not being effectively employed. Plant design software must not only offer data integration support and greater usability features, it must also be able to deliver more embedded checks and validation capabilities to speed the design process, reinforcing corporate standards and ensuring that safety is at the heart of the design.

Increased visibility is essential to driving efficiencyRather than simply providing efficiency gains for the design office, plant design software should also present opportunities for improving efficiency in the construction phase. The information created from the plant design system represents the as-designed view of the asset, and this information hardly ever matches up perfectly to the as-built asset. Narrowing the gap between the design office and the on-site construction team will help to expedite reworks, reduce materials errors and, with the use of laser data, improve accuracy for dimensional alignment on site.

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4. Future of Plant Design

As we look to the future, we have anticipated what will be required of the new era of plant design in terms of benefits to the plant business.

Plant design software that can be deployed in daysTo gain competitive advantage, projects have to be up and running in the shortest time possible, but speed must not compromise quality or safety. However, by increasing the speed at which critical software can be deployed, EPCs can provide deliverables more quickly and accelerate their capital projects.

AVEVA is developing a plant design system that will reduce time to deliverables and enable project teams to be up and running in days. Design work is coordinated as part of a global concurrent engineering system, integrating all partners in a project and allowing authorised users full transparency of the design at all times.

Greater design efficiency across dispersed teamsHaving a design system that can respond to the iterative nature of the design process, with complete control, supports first-class engineering project execution and enables plants to be up and running more quickly.

From design checking to supporting reuse, AVEVAs new generation of plant design software is designed from the ground up for global project teams. Powerful design capabilities, such as integrated drafting with 3D models and integrated laser scanning will increase design efficiency by 1020%.

Full design validation and authorisationProjects are becoming more diverse and the requirements for collaboration across multi-disciplines and territories are increasing. The ability to embed checking and validation throughout any design process will enable EPCs and Owner Operators to accelerate project delivery times by enforcing faster authorisation. This approach also supports a more collaborative relationship between Owner Operators and EPCs, which is critical to faster project delivery, and essential in todays volatile climate.

In addition to collaboration, reducing risk and costs are at the heart of AVEVAs product development. Support for new mobile technologies and embedded design checks will accelerate and extend the review and authorisation capabilities of project teams.

Linking design and constructionGreenfield and brownfield projects will be able to check each stage of construction against the as-built earlier stages to ensure that the next stage of construction fits first time without rework. If the design model parts are found not to fit with the as-built construction, they can be modified using the scanned data to fit the constructed environment, hence ensuring they fit correctly on site. The new level of plant design needs to support a richer collaboration between the design and site teams.

The powerful combination of laser scan data and design models will enable customers to save money in construction and hence increase profitability. Support for mobile computing will help site and office staff to keep abreast of the rapid rate of change on the construction site, accelerating informed decision making and improving the quality of collaboration between design and construction.

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5. Summary

With global demand for resources rising fast, the opportunities for EPCs and Owner Operators are abundant and highly remunerative.

Yet with a changing market there are new challenges: working across multiple locations involving multiple corporate partners, EPCs and Owner Operators must continue to deliver exceptional quality but at higher speeds.

A new era of collaboration has consequently emerged between EPCs and Owner Operators, through the need for design, construction and maintenance coherence: digital representations of physical assets are now crucial to this process, allowing for improved asset management, better design control and lower costs.

With unprecedented pressures on capital project financing and delivery continuing unabated, plant design software will need to expand on current capabilities to deliver greater collaboration, faster project deployment and enhanced traceability throughout the design and build process.

As we look to the years ahead, next generation plant design software will be instrumental in:

z enabling fast capture and transfer of expertise across global teams, multiple disciplines and project management

z facilitating faster decision making, design and construction,and providing access to critical design data and transparency of the design at all times

z enabling safety to be engrained in the design processz accelerating project execution without compromising system

stability, accuracy and compliance.

AVEVAs new initiative Defining the Future of Plant Design focuseson creating a new generation of plant design software thataddresses the dynamics of a changing market.

AVEVA Group plcHigh CrossMadingley RoadCambridgeCB3 0HBUK

Tel +44 (0)1223 556655Fax +44 (0)1223 556666

Headquartered in Cambridge, England, AVEVA Group plc and its operating subsidiaries currently employ staff worldwide in Australia, Austria, Brazil, Canada, China, Columbia, Denmark, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Malaysia, Mexico, Norway, Russia, Saudi Arabia, Singapore, Spain, Sweden, South Korea, United Arab Emirates, United Kingdom and the United States of America. AVEVA also has representatives in additional countries around the world.

For more details on AVEVA Worldwide Offices, visit www.aveva.com/offices

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AVEVA believes the information in this publication is correct as of its publication date. As part of continued product development, such information is subject to change without prior notice and is related to the current software release. AVEVA is not responsible for any inadvertent errors. All product names mentioned are the trademarks of their respective holders.

Copyright 2012 AVEVA Solutions Limited and its subsidiaries. All rights reserved. ABP/DFPD1/12

Defining the Future of Plant Design

AVEVA has been at the forefront of engineering and information management software for 45 years, and pioneered the worlds first 3D plant design system.

With 46 offices in more than 25 countries, AVEVA has developed relationships with some of the biggest names in the process plant, power and marine industries. The Defining the Future of Plant Design initiative sets out the companys work to create the most comprehensive plant design system developed for 21st Century plant requirements. AVEVA will unveil more details of its initiative over the coming months.

To be among the first to know about this exciting project to Define the Future of Plant Design please subscribe to the regular updates on www.aveva.com/futureofplantdesign