Advanced work packaging: A valuable project investment

Real benefits with streamlined process

Recently, advanced work packaging (AWP) has been gaining momentum in the U.S. as a way for owners and contractors alike to handle the downstream petrochemicals boom environment in which schedules are increasingly compressed, budgets are increasingly competitive and labor is increasingly in tight supply. According to Olfa Hamdi of The Advanced Work Packaging Institute, "Documented benefits of implementing AWP include productivity improvements on the order of 25 percent in the field, with corresponding reductions of 10 percent of total installed cost. Other significant benefits include improved safety, improved productivity, less rework, significant reduction in requests for information and increased stakeholder alignment."

By using AWP for front-end planning and its counterpart for field execution -- called workface planning (WFP) -- owners and contractors are able to improve productivity and increase the predictability of project performance .

Champions of AWP and WFP in the U.S. include ExxonMobil and Shell. Companies with distinct forward momentum include Dow and LyondellBasell. In fact, AWP is becoming the way work is done, an expectation, a best practice. All of these companies are invested in producing better project outcomes through their own investments in the AWP and WFP systems. But the question remains, how did they get there?

Safety

It is imperative any internal discussion with decision makers about AWP begin with the topic of safety. Often when advocating the benefits of AWP, the team articulating the many benefits of the approach will focus specifically on the aspects that increase project productivity and efficiency. However, a well-planned workface also reduces the chances of equipment and people being in the wrong place at the wrong time, and reduces the opportunity for reportable incidents as a result. Companies have seen safety results meet world-class levels through the implementation of AWP. This alone would be a sound reason to make the investment of time and resources; the benefits to project productivity and predictability are tangential advantages.

Laying out the facts

The situation many owners find themselves in when considering adopting the AWP approach to project execution is cost. When considering implementing AWP on a given project, an owner may expect to invest an amount equal to 2 percent of the direct costs of field labor for the project. On a $200 million project where the cost of direct field labor is $75 million, the cost of implementing AWP would be about $1.5 million .

The cost of investment may be a hurdle for some organizations when the benefits of AWP haven't been communicated in the right way to the right people. Companies are usually looking at senior vice president-level management or above in order to shift the culture of an entire organization. However, in the process of their rise within the organization, they have very likely become cost-avoidant decision makers. Cost-avoidant decision makers need concrete facts and a compelling story articulated by passionate teams.

When owners were asked by industry experts how they perceived time spent on the execution of major capital projects, their answers were very revealing. Owners felt only 37 percent of the time spent on a given project was "effective tool time" and as much as 29 percent combined was spent on doing nothing -- waiting around for a certain scaffold to become available or for one crew to wrap up so the next crew could begin. The perception was that almost a third of the execution time on a project was spent doing nothing to improve the outcome of the project.

Those who would like to see AWP implemented within their organizations must communicate factual project evidence, history and details that contrast with owners' perceptions about how time is spent during the planning and the execution of projects.

Ultimately, when all elements come together, your productivity is increased, added costs are minimized and workflow is steady. With importance to each package segment, below are reasons why AWP may benefit your large and small projects from start to finish:

  • Safety. AWP creates a consistent and predictable workface that: 1. reduces the chances of equipment and people being in the wrong place at the wrong time, and 2. reduces the opportunity for reportable incidents.
  • Engineering. It should be combined with embedded construction personnel at the earliest possible phase of project management. Embedded personnel are most effective when they are involved in the planning and they are the ones "turning their hats around" to execute the work. The disciplined approach of combining both personnel is not only beneficial for the project completion phase but also creates a dynamic workflow for project planning and communication of scope and smooths the process from concept to turnover delivery for all parties involved.
  • Creative contract structures. Align everyone's interests from the beginning using contract structures that incentivize contractors, engineers and owners to work together effectively.
  • Multicraft/multiskilled workforce. Have an engaged workforce that is invested in both the planning of the work and the outcomes of the plan, with a broader understanding of each discipline.
  • Modular construction and off-site fabrication. Take man-hours out of the field and put them into a controlled and high-productivity environment.
  • The use of innovative technology. The industry has evolved and new technology has improved AWP and construction planning to levels never seen before. Some examples of this include:
  1. Fully integrated WFP can be combined and bundled with third-party software systems for WFP, progressing and earned-value reporting.
  2. Radio-frequency identification (RFID) technology. An essential tool to increase efficiency, RFID technology can be used to tag materials, equipment and personnel to provide real-time data that enables contractors to operate more effectively.
  3. GPS tags. When critical shipments need to be tracked en route, GPS tags can be attached to sea cans, modules, vessels, etc.
  4. Material management and control software integrates tightly with third-party software systems to provide a comprehensive solution for site materials management.
  5. Construction equipment tracking. Leveraging the same RFID reader infrastructure for tracking materials, additional active RFID tags can be assigned to construction equipment -- such as generators, heaters, welders and more -- that frequently moves around on-site. This saves significant time that would otherwise be wasted in the event equipment needs to be utilized for a higher-priority construction effort, moved during the night shift or maintained in the field.

When all these elements of communication are present, AWP is successfully implemented both within an organization and on a specific project.

The project shows clear results in safety improvement, cost savings and time savings to owners and contractors alike, despite the dramatic increase in time spent "crew planning. "

For more information, contact Olivia Hernandez at ohernandez@jvdriver.com or call (346) 308-2074.

View in Digital Edition

Tags