Innovative E-Enabled Business Models for l&t Hydrocarbons Engineering

INNOVATIVE E-ENABLED BUSINESS MODELS FOR L&T HYDROCARBONS ENGINEERING

By

SHIRUY DAVER J-009

CHAARUL CHANDRA J-006

SAAD KHAN J-042

ANUJA MAJUMDAR J-022

HARMEET SINGH NAGPAL J-024

COMPANY PROFILE:

LTHE operates as a wholly owned subsidiary of Larsen and Toubro Limited.

LTHE has integrated its strengths in process technology, basic and detailed Engineering, modular fabrication, procurement, project management, construction and commissioning.

LTHE delivers 'design to build' world-class engineering and construction solutions on turnkey basis in oil & gas, petroleum refining, chemicals & petrochemicals and fertilizer

sectors.

BASIC THEORY OF THE PROJECT:

There are three major sectors in the oil and gas industry:

Upstream: this involves exploration, drilling of exploratory wells, subsequent drilling and production of crude oil and natural gas. This is referred to as the exploration and

production (E&P) business sector.

Midstream: this involves the transportation of oil around the world and the refining of crude oil.

Downstream: this involves distributing the by-products of the refined oil and gas to retail level.

LTHE OFFERINGS:

Hydrocarbon business sector consists of the following:

Hydrocarbon Upstream: o Hydrocarbon Upstream business delivers services of a 1,500 strong professional

group dedicated to Engineering, Procurement, Installation and Construction,

(EPIC) services for the upstream offshore E&P industry, through the Strategic

Business units, subsidiary and JV company.

o L&T has successfully delivered EPIC services for many projects in the upstream

hydrocarbon sector over the last two decades, in India, Middle East, Africa,

South-East Asia and Australia to reputed international companies like ONGC,

British Gas, Songas, Qatar Petroleum, GASCO, Petronas, Shell, MODEC, Technip,

Maersk Oil and Bunduq.

Hydrocarbon Mid and Downstream: o Hydrocarbon Mid & Downstream SBG provides a wide range of EPC solutions for

turnkey projects green fuel / fuel quality up-gradation, residue upgradation;

cracker complex, polyolefins & aromatics projects for petrochemical industry;

hydrogen, fertilisers, gas processing, reformers & cracking furnaces; cross-

country oil & gas pipelines, gas gathering stations and crude oil terminals.

o Range:

Refinery Projects

Petrochemical Projects

Fertilizers

Gas processing projects

Modular Process Plants

Hydrocarbon Construction and Pipelines: o HCP Strategic Business Group is one of three SBGs of Hydrocarbon Business of

L&T.

o HCP undertakes turnkey construction of:

Refinery, Petrochemicals, Chemical Plants,

Fertilizers, Gas Gathering stations,

Underground Cavern storage system under Process Plant Construction

Business Unit

Oil and Gas Cross-country Pipelines & Terminals under Pipelines BU.

Modular Fabrication Facilities

E-ENABLING:

With the advent of new technologies and innovation under the same, organizations are

investing in best practices to continuously make a move towards simple operations one step at

a time.

With the recent boost in the Internet technology, LTHE has had a share of these by leveraging

the opportunities provided by integrating CAD, Enterprise Resource Planning (ERP), Project

Scheduling and other systems.

The Key business critical application LTHE uses is:

SAP ECC6.0

PRIMAVERA

KNOWLEDGE MANAGEMENT

PROJECT CORRESPONDENCE APPLICATION (ECNORR)

EALPS+(SITE/CONSTRUCTION MANAGEMENT)

Centenary

ENGINEERING PROCUREMENT CONSTRUCTION (EPC):

EPC stands for Engineering, Procurement, and Construction and is a prominent form of contracting agreement in the construction industry.

Companies that deliver EPC Projects are commonly referred to as EPC Contractors.

The engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then

construct to deliver a functioning facility or asset to their clients

Normally the EPC Contractor has to execute and deliver the project within an agreed time and budget, commonly known as a Lump Sum Turn Key LSTK Contract. An EPC LSTK

Contract places the risk for schedule and budget on the EPC Contractor.

The Project Owner or client to the EPC Contractors will normally have a presence in the EPC Contractors offices during the execution of the EPC Contract.

ENGINEERING PROCUREMENT CONSTRUCTION (EPC):

ENGINEERING PROCUREMENT CONSTRUCTION (EPC):

Following are the components of this section:

Process simulation, process flow diagrams

Equipment identification-material requisition

Structural designs-equipment layout drawings

Instruments and control-Process control system

Electrical-Electrical distribution, Electrical control system

Safety-Fire and gas detection layout

ENGINEERING:

Following are the components of this section:

Process simulation, process flow diagrams

Equipment identification-material requisition

Structural designs-equipment layout drawings

Instruments and control-Process control system

Electrical-Electrical distribution, Electrical control system

Safety-Fire and gas detection layout

PROCUREMENT:

Following are the components:

Inquiry/call for tender

Short listing

Bid analysis

Clarifications

Negotiations

Purchase Order

Expediting- to ensure project is delivered on schedule

Inspection

Delivery- manage logistics of delivering on site

Warranty period

CONSTRUCTION:

Following are the components:

Earthworks

Pipeline

Buildings

Civil work

Underground Network

Plant erection

Equipment installation

Field instrumentation installation

Electrical equipment connection

Cable connections

Control room consoles installation

Testing

Commissioning

PAST SEQUENTIAL EXECUTION:

TODAY CONCURRENT EXECUTION:

PROJECT MANAGEMENT IN AN EPC PROJECT:

Due to the simultaneous execution of functions in the 3 phases, managing an EPC project has become more complex.

The EPC contractor bears the full cost of a delay in the project, and failure to deliver as per contract terms.

Thus, it is of utmost importance to include a separate project manager, who ensures that the risk factor in projects is reduced.

A well-managed EPC project results in higher efficiency and better productivity.

PRIMAVERA PROJECT MANAGEMENT:

Oracle offers best-in-class project portfolio management solutions focused on the mission-

critical requirements of project-intensive industries.

Features:

Balance resource capacity

Plan, Schedule, and Control complex projects

Allocate best resources and track progress

Monitor and visualize project performance vs plan

Conduct what-if analysis and analyze alternative project plans

Primavera solutions help oil and gas companies upstream, downstream, midstream and oil

field services to succeed in this competitive market and be able to quickly adapt to change,

while carefully managing projects, optimizing resources, and controlling project costs and risks.

STAAD PRO:

STAAD.Pro allows structural engineers to analyze and design virtually any type of structure through its flexible modeling environment, advanced features and fluent data collaboration.

World's #1 3D Structural Analysis & Design Engineering Software

The commercial version STAAD.Pro is one of the most widely used structural analysis and design software. It supports several steel, concrete and timber design codes.

It can make use of various forms of analysis from the traditional 1st order static analysis, 2nd order p-delta analysis, geometric non-linear analysis or a buckling analysis. It can also

make use of various forms of dynamic analysis from modal extraction to time history and

response spectrum analysis.

INTOOLS (SMARTPLANT INSTRUMENTATION):

SmartPlant Instrumentation the industry-leading instrumentation solution helps EPCs better design plants.

Owner operators can prevent failure by better managing and storing the history of your instrumentation and control system as well as prevent unscheduled shutdowns by better

planning maintenance.

This solution also assists in planning plant expansions or control system modernizations.

The main purpose of this software is to manage a database of all the instruments of your plant, in it you can handle, data sheets, calculations, loop drawings, bill of materials,

maintenance, Management of Change, etc.

FLARENET:

FLARENET enables the engineer to perform steady-state design, rating or debottlenecking of single or multiple flare and vent systems.

A typical model of the flare or vent system may comprise of several hundred inter-connected elements including relief valves, control valves, piping, connectors (including

expansions, contractions, standard/sweep tees and orifice plates) separators and flare tips.

The program can calculate minimum sizes for new flare systems or evaluate alternatives to remove bottlenecks in existing relief networks.

Graphical user interface with network drawing

Interfaces to Excel, Access, and drafting packages

Design violation report summarizing all cases where the design constraints have been exceeded.

@RISK:

@RISK performs risk analysis using Monte Carlo simulation to show you many possible outcomes in your spreadsheet modeland tells you how likely they are to occur.

It mathematically and objectively computes and tracks many different possible future scenarios, then tells you the probabilities and risks associated with each different one.

This means we can judge which risks to take and which ones to avoid, allowing for the best decision making under uncertainty.

@RISK also helps you plan the best risk management strategies through the integration of RISK Optimizer, which combines Monte Carlo simulation with the latest solving technology

to optimize any spreadsheet with uncertain values.

CITRIX:

The diversity in todays workforce has forced multiple desktop, mobile, application and data infrastructure purchases that each require its own management and support.

Citrix Workspace Suite addresses this challenge with a single, flexible solution that can streamline application and desktop deployment and lifecycle management to reduce IT

costs.

Citrix Workspace Suite delivers secure access to apps, desktops, data and services from any device, over any network to empower mobile workers with the freedom and flexibility to

choose how they work.

Citrix Workspace Suite is the most complete, integrated mobility solution for helping people and business become more productive with an on-demand mobile workspace.

SOLUTION RISK MANAGEMENT MODELRISK INDUSTRIAL:

ModelRisk is a Monte Carlo risk analysis and Optimization add-in for Microsoft Excel.

It offers a quantum leap in the development of risk analysis software.

Key features not available in @risk: o Correlation Fitting

o Database Connectivity

o Extreme Value Modelling

o User Defined Functions Error Analysis

o Free Report Viewer

SOLUTIONS MOBILITY AUTODESK BIM 360 GLUE & FIELD:

Anywhere, anytime access to the most recent project models and data throughout the project lifecycle, BIM 360 helps review projects and resolve coordination issues faster, while

advancing the construction layout process.

Provide field layout personnel with the most up-to-date coordinated model to conduct layout activities.

Easily communicate and share issues collected in the field directly in the coordinated model for action by the VDC team in the back office.

Create and automatically distribute work-to-complete lists for trades and other parties.

Compile quality, safety, or commissioning checklist results for specific trades, areas of work, and/or time periods.

BOOMING TECHNOLOGY INTERNET OF THINGS (IOT):

The invention of advanced sensing devices combined with the connectivity technologies, smart systems and machine to machine integration is building the Internet of Things.

A high degree of system reliability is needed for EPC projects and the ability to predict potential faults or breakdowns will undoubtedly provide valuable insight on time and

resources.

By using smart sensors that can communicate with the manufactures cloud based analytics system, the product vendor would be able to assess the working condition and service

requirements of equipment in advance.

Routine replacement of parts as per scheduled maintenance cycles, such as once in two years, can be avoided as long as the equipment functions at optimal level.

SAP R/3 ENTERPRISE CENTRAL COMPONENT (ECC) 6.0.:

The Project Owner or client to the EPC Contractors will normally have a presence in the EPC Contractors offices during the execution of the EPC Contract.

SAP ECC 6.0 harmonizes your business strategies and processes to meet the most demanding market and industry standards and goals

It cover functions such as Finance, Materials Management, Warehouse Management, Production Planning, and Environment Health & Safety & Business Warehouse 7.1.

This ensures that collaborative design, reduced transaction cycle time and better service levels.

E-PROCUREMENT:

Web based application

Enables L&T Hydrocarbon buyers to carry out online procurement transactions with its suppliers using SAP ECC 6.0 as the backend.

Enables authorized suppliers to view the Request For Quotations (RFQs) along with attachments, submit their offers along with attachments, access purchase orders and give

order acceptance remotely using this website.

It can be viewed and accessed only by the authorized users only and thus ensuring confidentiality of data.

GLOBAL SOURCING SYSTEMS:

Enables L&T hydrocarbons to create their Own Procurement Workflow according to the need

Provides extensive database with pricing history

Identify low-cost competent suppliers, leverage purchase volume.

MARKET LEADERS:

Procurify is the current market leader which not only make the procurement process easy but also give benefits like budget management, fraud prevention and real time tracking

Fraxion offers engagement as it empowers management to have visibility of indirect spend across the entire procurement lifecycle: from sourcing to invoicing

Identify low-cost competent suppliers, leverage purchase volume.

SOLUTION-HANA (HIGH PERFORMANCE ANALYTIC APPLIANCE):

Revolutionary platform thats best suited for performing real-time analytics, and developing and deploying real-time applications.

Used to check on material availability in real time at exploded-view level.

This will help company to better understand the production pattern and can use this knowledge to improve the procurement process.

STRUCTURAL MODELLING:

Prosteel o Enables you to create or import a complete 3D model (columns, beams, footings,

walls, slabs, etc.) for any kind of structural projects

Xsteel o 3D building information modeling software used in the building and construction

industries for steel and concrete

o The software enables users to create and manage 3D structural models.

o Guides them through the process from concept to fabrication manage a

database of all the instruments of your plant

Frameworks o Add value to your modeling process by integrating structural tasks with the plant

creation process

o Enhances the capabilities of Micro Station because it automates many structural

design and engineering functions

PIPE STRESS ANALYSIS:

CAESAR II o Used within the piping industry to define and evaluate system models gather

accurate data from your design through strong bi-directional links to CADWorx

piping CAD software.

o Graphics allow you to view animated displacements for any stress load case

o Analyze response to deadweight, thermal, and pressure loads

o Measure the effects of support settlement, wave and seismic loads, and wind

o Select proper springs for necessary support

o Evaluate support lift off, friction, and gap closure

PIPING MODELLING:

PDMS (Plant Design Management System) o Customizable, multi-user and multi-discipline, engineer controlled design software

package for engineering, design and construction projects

o Not limited to offshore and onshore

SOLUTION - IFS:

Large corporations have the multi-national, multi-language, multi-site, multi-currency and multiple sets of accounting and tax-rule capabilities they need

IFS Applications manage the entire construction

is a flexible, component-based industry solution that can be deployed standalone, integrated with existing corporate enterprise systems, or as a comprehensive IFS

Applications deployment

SOLUTION - PENTA:

Oil and Gas companies often require contractors to obtain daily customer authorization of work performed, including labor, equipment and materials

It manages the complete daily LEM process cycle, from field data collection, customer approval via Sharepoint site, to daily performance analysis.

SOLUTION - PLANGRID:

SOLUTIONS: