PIP Overview
American Society for Quality
Design and Construction Division
September 2005
PIP
Working in Harmony
Improving Capital & Maintenance
Efficiency
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.
The Small Seed
“Is A Ladder Really Just A Ladder?”
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
CYTEC
Huntsman
Adv. Silicon Mat’ls. Degussa Corp.
Monsanto
Aramco Services
DuPont
PPG
Arkema Inc.
Eastman Chemical
Rohm and Haas
BP
Flint Hills Resources
Shell Oil
Celanese
FMC
Solutia
Chevron Corp.
Great Lakes Chemical
Sunoco
Citgo
Honeywell
UOP
ConocoPhillips
HOVENSA L.L.C.
PIP Members: Contractors
Aker Kvaerner
Jacobs
BE&K
KBR
Bechtel
S&B E&C
Burns & McDonnell
Technip
Chemtex International
WorleyParsons Ltd.
Fluor
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.
Before
PIP
With
PIP
SOCIETY
STANDARDS
SOCIETY
STANDARDS
INTERNAL
PIP
STANDARDS
INTRNL STDS
SITE SPECIFIC
SITE SPECIFIC
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)
• 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 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
STANDING COMMITTEES
PIP STEERING TEAM
LEGAL
EXECUTIVE COMMITTEE
FTS1
MARKETING
FTS2
FTSn
WORK PROCESSES
STRATEGIC PLANNING
FUNCTION TEAM LEADERS
GLOBALIZATION
(FUNCTION TEAM LEADERS & SPONSORS)
FTL2
FTL6
FTL4
FTL8
ELECTRICAL
MACHINERY
P&ID
PROC CTL
TASK TEAMS
TASK TEAMS
TASK TEAMS
TASK TEAMS
FTL1
CSA
TASK TEAMS
FTL3
CIR
TASK TEAMS
FTL5
FTL7
PIPING
VESSEL
TASK TEAMS
TASK TEAMS
FTLn
TASK TEAMS
Practices by Discipline
Number of Practices
250
234
219
Published 451
200
Planned 527
150
100
50
0
79
61
4043
CSA
31
20
CIR
6369
33
20
30
21
ELEC
MACH
PC
PIPE
VESS
7 8
WPT
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
(www.pip.org/members/irc/index.html)
•
Member’s addenda
•
Systems examples
•
Success stories
•
Tools
•
Metrics
•
Lessons Learned
Members’ Adoption and Implementation Data
Individual Practices
•
Adopted
51%
•
Plan to adopt
12%
•
Undecided
19%
•
Adoption not planned
17%
•
Implemented
25%
(84% “as is”)
PIP Harmonization Process
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 Practices
Adopting
PIP Member Co. A
Engineering Standards
PIP Member Co. B
Engineering Standards
PIP Member Co. C
Engineering Standards
Member
Companies
Harmonizing
Engineering –
Procurement –
Construction Process
Process Industry
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
Italy
Brazil
Japan
Canada
Korea
France
Saudi Arabia
Germany
Spain
Great Britain
Trinidad
Indonesia
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
ISA
Aspen Technology
National Insulation Association
Aveva
St. Paul Technical College
Bentley Systems
Conestoga College
Universidad Nacional Autonoma
de Mexico
IEEE
University of South Dakota
Intergraph
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 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
Driving Greater Capital and Maintenance
Efficiency
Visit us on the Web
www.pip.org