The engineer inside the system

Now is not the time for engineering companies in Australia to be ‘retiring’ experienced design engineers, project engineers and estimators. It has not been common practice in the past to electronically harness the decades of knowledge stored in the minds of these engineers as, when they leave the workplace, all this intellectual bounty goes with them.

According to a recent Australian Bureau of Statistics report, “Engineering construction activity is weaker and the pipeline of work yet to be done is diminishing, although there appear to be some positives, particularly in road infrastructure. After peaking in September 2012, the value of work done in engineering construction has steadily fallen, down by 32.6 % between the peak and March 2016. ABS figures show that employment of engineering professionals (across all industries) declined by 13.0% over the year to May 2016.”

As a consequence, many engineering companies are being forced to ‘right size’, which means losing people and knowledge. But before farewelling the engineers and estimators, there is an opportunity to implement the latest software tools to ‘download’ as much of the experience as possible. A downturn reversal is imminent, so this knowledge and experience will be vital for future success.

Investment in mining development has slumped whilst further LNG projects have stagnated. The consequence of this is that engineering, procurement and construction companies (EPCs or E&Cs) have been forced to consolidate, merge or simply close down, resulting in today’s generation of estimators and engineers working under pressure to do more with fewer resources and adapt quickly to change. Additionally, many mergers and closures have resulted in the ‘early retirement’ of skilled estimators and engineers and, with that, all their experience and knowledge. It is vital that EPCs embrace methodologies to meet customer requirements, cope with new tight economic conditions and retain the intellectual capital.

Modern integrated economic evaluation software with built-in engineering and costing produces comprehensive, accurate conceptual estimates. Empowering estimators with cutting-edge technology enables them to rapidly and confidently evaluate capital investment projects early in the design process, understand all the economic implications of engineering decisions and manage projects more effectively. Further, the knowledge is stored by the software for future use — downloading the ‘engineer into the system’.

Historically, companies have had their own in-house estimating system — typically a collection of disparate spreadsheets. However, the great advantage with integrated, robust and specialist economic evaluation software is that it provides a common platform to accurately estimate a project throughout its life cycle, from early concept through to construction. Project specifications can quickly be entered, allowing estimators to focus on communicating information between the engineers and the estimating software. This clear communication on project scope and progress is the vital ingredient that determines the cost and success.

Engineers inside the system

The adoption of scalable, intelligent ‘engineering in the box’ estimating and front-end engineering and design (FEED) software captures knowledge during each phase of the project life cycle.

Such software tools are like having an engineer inside the computer that is as good as a team of disciplined engineers and estimators within the company. For example, such software can instruct the user on how to develop single-line diagrams, or teach how to organise and put together an electrical system. Alternatively, it is like a structural engineer that will show best practices for the design of structures — and similarly in piping. Therefore, all the engineering knowledge is embedded within the software tool and helps the estimator to engineer, design, cost and validate information provided by engineering disciplines. The years of embedded knowledge within the tool help E&Cs to accurately and quickly reduce estimating uncertainty in bidding costs for the design and construction of a mine, LNG plant, chemical plant or infrastructure project.

With complete transparency, the E&C can demonstrate to customers detailed estimates on a project. With a high level of accuracy, estimators give the owner-operators confidence that the estimate meets their needs and that they are working with a partner that can fulfil the engineering on time and to budget. When changes occur, the engineer inside the system can cope with adjustments to the estimate at a click of a button and within minutes deliver a new estimate (versus days or weeks when using traditional spreadsheets).

Using state-of the-art economic evaluation tools allows E&Cs to increase their incomes by up to 50% more than using traditional tools because the software can perform the work of five people and be considerably more accurate throughout the project life cycle. Whether the project is for greenfield or brownfield projects (onshore or offshore), these engineering and estimating tools are ideal for revamps and patching to gain more out of existing plants. Such tools are also able to easily break down capital expenses, and reports can also be generated very quickly.

Once the estimate is set up properly inside the model-based software, the estimator can make changes very effectively. For example, this could involve tank farms for a client, where the tanks’ size, location and geometry layout (and any other aspects of the configuration) are altered. Using integrated software, the estimator can make changes within minutes for every option instructed by the client. This would not be possible using traditional spreadsheets.

Empowering the next generation

Attracting qualified employees is a major challenge for industry today. There is a large population of employees close to retirement and there are not enough qualified engineers to fill the gap. Companies hiring and training their own estimators need to rapidly get less experienced staff up the estimating learning curve. This is achieved much faster by empowering users with a recognised engineering and estimating tool, as opposed to adopting a more traditional system of spreadsheets.

Image: LNG plant in Kwinana, Western Australia.