Quantifying improvements in the Engineering-Procurement-Construction (EPC) process from the implementation of information management strategies within materials management

Abstract

Throughout all industries where material flow or handling is involved, employers have implemented various information management technologies with the following goals: 1) to reduce cost, time, and effort, 2) to improve productivity, 3) to streamline the process, 4) to improve product quality, and 5) to attain a competitive advantage. This study quantifies time and cost impacts on the Engineering Procurement-Construction (EPC) process due to the implementation of information management strategies within materials management related activities. The EPC process was schematically mapped and field data from both owner and contractor companies was collected to serve as the baseline condition. Twenty specific materials management related activities were modeled in detail and also loaded with associated field collected time and cost data. Process changes within these activities were analyzed through Monte Carlo simulation. These process changes were used to modify the baseline values for the EPC process and measure the overall impact. Throughout the previous five years, the activity time involved in an EPC project has decreased slightly (4% probability that a 0.584 unit change has occurred) while the greatest improvements occurred in project cost (8.7% probability that a 3.6135 unit change will occur) and schedule (7.2% probability that a 0.501 unit of change will occur). Information management strategies implemented within bulk commodities or standard engineered equipment had the greatest influence upon elapsed time (schedule), and activity time (total effort). Cost was influenced most heavily by the implementation of information management strategies within specialty engineered equipment and fabricated items. The probability that a 6,474 unit change will occur) while more gradual improvements are forecasted to occur in project cost (5.2"/o probability that 1.8395 unit change will occur) and schedule (16.9% probability that 1.7 units change will occur). Information management strategies implemented within bulk commodities will have the greatest influence upon elapsed time, while strategies implemented within fabricated items will have the greatest influence upon activity time and activity cost. Improvements within fabricated items also improve elapsed time significantly.