Why Do Automation Projects Need More than Automation?

Author photo: Dick Hill

Overview

The number, size, and frequency of major automation projects may have decreased recently due to such factors as the low price of automation projectsoil; but, if anything, the importance of executing these projects correctly has increased.  At the recent ARC Industry Forum in Orlando, one session focused on managing major automation projects to drive business value.  Both the presentations and lively discussions that followed made it clear that it’s important to pay close attention to the details right from the start.

Whether the major automation project is part of a completely new (greenfield) plant or facility, or a revamp of an existing (brownfield) plant or facility, certain aspects of the automation portion of the project are always present.  Both involve a significant amount of upfront design and engineering work.  Both require automation technology and application software to be purchased, implemented, and configured.  And both require acceptance testing to verify the functionality, installation, and startup of the new automation, plus integration with other systems. 

As Erin Delorme, ECM Analyst/Project Manager for ConocoPhillips, explained in her presentation, it is important to create a robust strategy at the outset, as well as to work conscientiously to remove risk from the automation scope.  In addition, many companies miss the opportunity to gain insight from the project data and models created by not transferring this information properly during handover to operations.  Ms. Delorme emphasized that integrated automation and safety and business information integration should be considered at the onset of a major automation project.

Major Automation Projects Are Business Opportunities

As previously mentioned, both greenfield and brownfield automation projects involve a significant amount of upfront design and engineering work.  Both require automation technology and application software to be purchased, implemented, and configured.  And both require acceptance testing to verify the functionality, installation, and startup of the new automation, plus integration with other systems.  However, unlike greenfield projects, which start with fresh slate, for brownfield projects the project team must also decide which parts of the existing automation will be kept and which part will be replaced, upgraded, or migrated.

automation projects

In both of these “flavors” of projects, the new or updated automation system must meet the operations and business requirements.

Today, the impact of the major automation project often extends beyond the plant.  Business processes across the enterprise must also be considered.  These processes include people and systems that need to work in coordination to meet the enterprise’s overall business goals.

Major Automation Projects Require Robust Strategy Upfront

In her Forum presentation, Erin Delorme from ConocoPhillips indicated that the company uses the Stage Gate Process for major automation projects, since it is not unusual for a project to span seven years from inception to operation.  She also explained the importance of creating a robust strategy at the outset and to work conscientiously to remove risk from the automation scope.  Three to five percent of the overall project cost can be attributed to automation, with approximately half of that cost related to the scope phase alone, according to Ms. Delorme.

A significant problem is that today, the handover of documents and data from capital project phases to operations is often performed inefficiently.  Sometimes, the documentation is either in the wrong format or missing key data, putting operations at a big disadvantage right from the start.  To ensure that the handover from the project team to operations includes the necessary as-built data, Delorme recommends that this should be made part of the terms and conditions of the initial contract to help ensure this is not overlooked.  In addition to helping avoid startup problems and delays, this documentation is often required to meet governmental regulations for operations.

Data Control Function

From the start of the project, it is important to identify a data control function. “It is the coordinating factor from which all delivery mechanisms are derived, controlled, and synchronized with the end result,” according to Delorme.  “Data control is the consistency factor that gathers all delivery team deliverables to a single focal point area.” 

All parties involved in the project need to be committed to maintaining the data integrity from the start.  It is not sufficient for the EPC to just manage the data it creates.  On very large projects, a lot of details pertaining to a main electrical contractor’s (MEC) scope of work or the main automation contractor’s (MAC) scope could get overlooked.  The EPC must be able to manage the data created by all parties in such a way that all disciplines can relate to and benefit from it. 

For example, having the instrument tagging structure and philosophy align with the document numbering can help avoid issues later when the automation system must operate in concert with the business and enterprise systems.

Delorme refers to this as a “Task Force” model.  One of the concepts is to have everyone using the same tools to help ensure consistency.  A cloud-based environment for engineering can further help in the implementation.

Greenfield Projects Eventually Become Brownfield

From the very start of a new facility, changes will need to be done.  It’s essential to have a robust and accurate data representation of the plant and the plant’s automation and other systems at the handover to operations.  Good management of change (MOC) practices are needed right from the start.

Many of today’s plants are being operated with very old process automation systems; some more than 25 years old.  Many operations treat their process control and safety systems as commodities, using a “run to fail” approach before considering upgrading.

Meanwhile, owner-operators are looking for integrated automation and safety systems to be able to take their operations to the next level.  According to Delorme, ConocoPhillips is also looking into using electronic marshalling and intelligent I/O to simplify upgrades and lower the operational expenses throughout the life of the plant.

Models created during the project engineering work could also be useful for future operations and maintenance activities.  Delorme cited an example of a 3D model for a well pad that had 45 slots.  The idea was to create a model that could be used to both modularize the design and also as a tool during the operation phase.  Unfortunately, many owner-operators do not keep these models current after the project is turned over to operations, so their value quickly erodes.

Trustworthy “Source of Truth” Needed

We cannot afford to construct today’s industrial plants with silos of automation.  Accurate and timely production information needs to flow across the plant floor and up to the enterprise systems, and business information needs to flow from enterprise systems to plant floor systems.  As Ms. Delorme indicated, this is hard to achieve, since it is natural for people to focus on what they are responsible for and create silos around the technology and other assets they are deploying in a project.  Therefore, at the inception automation projectsof the major automation project, the information flows that will eventually be required to operate a modern business must be part of the strategy and plan. 

All information must be both accurate and trustworthy, with a single version of the truth.  Delorme referred to this as the “source of truth” in her presentation.  Inaccurate data and information could create problems across the enterprise.  These problems generally fall into four areas: safety, quality and reliability, economics, and ease of use.  With today’s digitized world, it is quite possible to have multiple copies of data that may not represent the real world as it exists at the moment the data is needed.  Or some data might actually conflict with the “source of truth” data. 

The “source of truth” data does not just come from the plant or the field; it could also come from the business and actively used by operations to make on-the-spot decisions.  This is why it is important to know where the data is coming from and eliminate possible conflicting sources.

Information management is a journey, not a destination.  According to Delorme, interface management is needed over the lifecycle of a project and a plant to provide the coordinating factor from which all delivery mechanisms are derived, controlled, and synchronized with the end result.  These interfaces are not just components of the automation system, but also include business and finance systems, engineering and project systems, and other sources of truth throughout the enterprise. 

Recommendations

It is not unusual for a major project to have defined phases.  However, as we’ve seen, there needs to be smooth handover from the project to the plant operations phase.  Owner-operators should look beyond startup and consider the plant’s ultimate lifecycle goals at the onset of any major automation project.  These goals should consider such lifecycle aspects as how long the plant or facility is expected to operate; how future changes to operations could be made; and how the data, models, and other learnings from the project phase will be used during the life of the plant.  This long-term view can impact the technology and supplier selections made during the design and build phases.

Owner-operators should make sure that the contracts signed with the various project organizations cover proper handover of information, models, and other tools to help launch and maintain operations properly over the entire plant lifecycle.  If the project is large enough, it may make sense for the owner-operator (or its EPC) to select a MAC to help ensure that the automation is integrated correctly and possibly also a MEC to assume responsibility for the electrical equipment and systems.  It is also important to establish proper coordination between owner-operator, EPC, MAC, MEC and all other project participants.

While it’s important to reduce initial time to value, it’s equally important that the proper organizational practices are in place to help ensure that all data and information represent the “source of truth” over the entire lifecycle of a manufacturing plant or other industrial facility. The plant or facility may last 40 years, so be prepared to manage change.

 

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Keywords: DCS, MAC, MEC, EPC, Greenfield, Brownfield, Integration, Source of Truth, ARC Advisory Group. 

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