GNWT: Robotic Process Automation for capital projects

22 November 2017

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Agenda

► Key objectives

► “Bots” at a glance

► Key features of RPA

► Construction risk in the public sector

► Leading practices

► Why are companies using robots?

► Robotics in cost monitoring and reporting

► Use case and robotics workflow demonstration

► Data visualisation

► Recap

► Questions?

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Key objectives

► Introduce how robotic process automation is helping capital projects monitor and report on progress

► Demonstrate a use case for robotic process automation

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“Bots” at a glanceWhat’s ‘Robotic Process Automation’ and why is it such a hot topic now?

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Key features of RPAAs a useful tool, where does it fit in the technology armoury?

Pro

cess v

alu

e /

vo

lum

e

Frequency of change

Process Spectrum

ERP, CRM

ERP Customisation / Integration / BPMS

Robotic Process Automation

People /

Desktop / Lean

Key features of “RPA” software

► User interface focused: accesses existing

applications via user interfaces with

no/minimal impact to core systems

► Scheduling & monitoring: can run 24/7 in a

data-centre with performance and incident

monitoring, flexible scheduling options

► Business user friendly: 100% visual, with

little or no coding or macro language skills

required

► Full audit history: including process

definitions, and each task processed

► Full security: including fully secured

credential management

► Fully scalable: run thousands of processes

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Construction risk in the public sectorWhat are some of the key issues and challenges during a project?

Project initiation & strategy

Planning, design & procurement

Project execution / construction

Completion / close-out / transition to

operations

Governance: Are the team roles and responsibilities aligned with the project objectives?

Governance: Are we investing in the right project?

Scope: Is construction execution aligned with design standards?

Control: Is our vendor tracking and reporting per our needs?

Procurement: Does our contracting strategy appropriately transfer risk?

Scope – brownfield: Do we understand the existing site?

Schedule: Is the schedule realistic and can the budget be mapped to the schedule?

Control: Is there a hand over plan?

Scope: Are we clear on acceptance criteria for completing construction?

Control: Are we clear on acceptance criteria for completion?

Risk: Are there any claims?

Procurement: Have all materials been ordered?

Cost: How realistic is the cost estimate?

Governance: Do we have the right governance model?

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► Well-defined capital governance model

► Stage gates

► Scalable and consistent across projects and programs

► Program approvals

► Traceability to organizational strategy

► Rigorous option analysis

Project initiation & strategy

Planning, design & procurement

Project execution / construction

Completion / close-out / transition to

operations

► Standardized design, scheduling and costing standards

► Multi-project procurement

► 3D models for brownfield construction

► Using robotics for cost monitoring and reporting

► Virtual reality for project progress monitoring

► Using new building materials

► Handheld technology in the field

► Handheld technology for project completions

Leading practices from around the worldHow others are realising cost savings

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Approximately 3% – 5% of a contract’s value is lost over the course of its life cycle

► Close the value gap

► Construction program assurance

► Increased visibility into vendor performance

► Resources focusing on higher value activities

Return on investment:

Typically between 2:1 and 10:1

Gap in potential value which could be captured

Poor commercial management could lead to a greater value gap and is most prevalent in large, high-complexity contracts

Pre-contract award Post-contract award

What is reported as value expected

Multiple ways of obtaining value recovery

Value gap

Time

What is deliveredThe value reality

Value

Why are companies using robots?Confirming you are getting what you signed up for

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► Modelling contract commercial terms into a robot

► Running project cost data through the robot

► Weekly, bi-weekly, monthly

► Creating reports for PMs, SCM and Finance to highlight non-compliances

What do we do?

Robotics in cost monitoring and reportingWalkthrough of a use case

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Background► Major O&G construction project

► Cost plus contract

► Focus on monthly / weekly / daily equipment rates

What are we testing?► Individual line items on invoices are

compared to contractual unit rates

► 100% sample review

What is the result?► Identify non-complaint line items

► Determine total overcharge

Use caseEquipment unit rate compliance

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Inputs► Data can come from the Project

Owner or Suppliers

► Data sources may include SAP, LEM

logs, etc.

► The contract is also a source of data

Data cleansing► Ensures consistent data formats

► Standardising terms

► Renaming fields

► Removing data that is not required

Robotics workflowTelling the robot to look for data

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► These are the contract commercial terms and conditions

► One “workflow” equates to one commercial term in the contract

Robotics workflowModelling key contractual terms in the robot

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Output files allow non-compliances and overcharges to be easily identified.

Reports may include:

► Exception lists

► Summary tables

► Dashboards

Robotics workflowRobot provides detailed compliance data files

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Robotics workflowVideo demonstration

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► Example of data visualization

► Interactive reports summary of data

► Enable user to drill down, highlight trends and patterns

Data visualisationAn easier way to make sense of project spend

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Recap

Low risk non-invasive technology

Robotics are helping capital projects monitor and report on progress

► Increased visibility into vendor performance

► Closing the value gap

Use case for robotics

► Using robotics for cost monitoring and reporting

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Questions?