Over the summer our local McDonald’s closed for two months to expand their drive-thru from one to two lanes. I wondered then, how could a business afford to be closed for so long and during peak outdoor hours? The average McDonald’s makes $6,500/day. At a cost of 60 days, that’s approximately $390K in lost revenue, and that’s not including the cost of the construction. Although this is a small-scale example, you could imagine the benefit to the business if the construction could be completed 10% faster—say 52 days instead of 60 days—that’s $39K in savings. On a larger scale, like a chemical manufacturing plant, a mere 1 or 2 days faster could mean millions of dollars.
McKinsey reports that as many as 90% of major capital projects suffer from an average of approximately 28% over budget with delays of six months to two years. In 73% of the cases, spend overrun was caused by poor project execution. Typically poor execution is blamed on poor document management. In one study, 75% of respondents said that project document issues caused the overruns with a further 25% saying that poor documentation had led to construction delays.
For chemical manufacturers, handover costs alone can easily account for 1 to 2% of total CAPEX costs and can take a year or more to complete. Up to 50% of projects experience issues due to inadequate knowledge transfer during handovers. This can force owner-operators to spend 2 to 4% of the project cost to correct and/or reproduce missing operations and maintenance information manually.
It's time to take control of your project content across all phases of design, construction, and handover. Adept gives owner/operators and EPCs a centralized digital platform that improves productivity, facilitates communication, simplifies workflows and collaboration, empowers decision-making, and accelerates handover. You can easily connect your project teams, documents, deliverables, and workflows to optimize existing plant transformations and/or new capital engineering projects. You can expect:
- No more project delays: Using a centralized platform for collaboration ensures the right people have access to the right information. No more overruns on cost or schedule.
- Seamless CAD integration. Having EDM available inside your CAD application enhances design workflow while maintaining file relationships.
- Better ROI on capital projects. EDM can enhance project planning, budgeting and outcomes to satisfy expectations from regulators, shareholders, and other stakeholders.
We have a construction crew of hundreds plus hundreds of sites. We have three quarters of a million files of just our engineering technical documentation. Far and away, the reason that we went to Adept was the ability to gain trusted access to documents.
By consistently finding the latest document version, site, and central engineers can more efficiently use capital, reduce errors and related rework, and ultimately accelerate project start up by 1 – 2 days. See real customer value at right. You’ll complete projects on time and under budget, improve design quality, lower project costs, reduce project risk, and increase profitability.
Dow personnel emphasize consistent work process execution across all sites around the world. We have a sizable investment in written best practices for process design, project execution and plant operation that provide a significant and sustainable competitive advantage for Dow. —Gregg Schuler, Former Product Manager for Data Integration & EDM, Dow
Some Adept customers have experienced 35% faster project handover to operations by avoiding costly and dangerous ambiguity, ensuring complete, consistent, and compliant data, and creating insights and efficiencies through continuous digital handover.
Have you considered what your engineering documents are really worth to your manufacturing organization?
