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Insights and best practices for construction management technology and project delivery

How Technology is Helping Global Industrial Manufacturers Drive Significant Savings

Janet Poses
Sr. Marketing Manager

Industrial manufacturers’ expectations are rapidly shifting. Customers are changing how they source due to the improved visibility and efficiency enabled by technology.

In fact, customers are actively seeking improved efficiency and production transparency from their suppliers thanks to connected technologies and digitization.

Increased investment in technology

Many of the opportunities stem from streamlining processes, integrating with supply chains, and leveraging IoT technology. However, these changes don’t happen overnight.

Industrial manufacturing’s lack of standardization is a significant hurdle towards their goal of smarter factories and improved connectivity, particularly when coordinating across multiple factories.

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"72 percent of manufacturing companies surveyed by PwC said they are dramatically increasing their level of digitization and expect to be ranked as digitally advanced by 2020, compared with just 33 percent today.

These companies are committing US$907 billion per year — about 5 percent of revenues — toward greater connectivity and smarter factories.”

-"Industrial Manufacturing Trends 2018-19", Strategy&, part of the PwC network

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Two forward-thinking organizations in industrial manufacturing, AMP United LLC and SPG Dry Cooling, were recently recognized with 2019 Oracle Construction and Engineering Excellence awards for their compelling achievements, including improvements to their bottom line.

AMP United, LLC

AMP United, LLC is a US-based industrial and commercial coatings business servicing US Navy and US Coast Guard vessels. The company is working on an 11-month large and complex docking phased maintenance project on the USS George H. W. Bush (CVN-77) aircraft carrier.

The significant amount of integration with the general contractor, among other parties, was more than AMP United’s previous solution could manage, prompting the company to find a new and more comprehensive solution.

By selecting Oracle Primavera Cloud, AMP United was able to seamlessly integrate with their general contractor’s solution, Oracle’s Primavera P6 Enterprise Portfolio Management, to provide a complete project overview.

AMP United recognized that Oracle Primavera Cloud could increase the efficiency and visibility to their projects and standardized on the solution. AMP United has been able to use templates for each class of ship, just one of many advantages to standardization.

These templates can be easily shared across projects, even between the east and west coast. Standardization speeds project set up, reduces needed training, and enables best practices to be implemented across the board. 

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“AMP United increased efficiency by sharing schedule templates for each class of ship, across coasts.”

-Wade Hyatt, Senior Project Manager, AMP United

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Schedule baseline

AMP United can easily establish a baseline to determine its own course of work, saving time and budget. The company also shares the impacts of changes against the budget and schedule and can allocate resources effectively, yielding a six-figure budget savings. Developing new schedules for each change used to take up to a few days, but now only takes 10-15 minutes.

AMP United can also assess their own needs as well as those of the subcontractors. The two week look ahead plan used to take three to five hours each week to prepare. Now, it’s almost instantaneous. The look ahead plan provides a better dialog with the general contractor to see in real-time what’s happening.

Condition found reports

About five hours are saved per schedule revision. What used to take about a day now takes just a couple of hours. Similarly, Condition Found Reports (CFRs) used to require creating a new schedule—which often took a few days—but now the schedule is instantly updated, saving two to three days per CFR.

Thanks to more credible information, the client also agreed to 90 percent of CFRs. The previous average approval rate was around 30 to 40 percent.

Scenario management

AMP United suggested an optimal solution and minimized the impact of a change to the client, reducing the impact to $100,000 instead of $300,000, by using the scenarios tool within Oracle Primavera Cloud.

SPG Dry Cooling

Across the Atlantic, Belgium-based SPG Dry Cooling, which simultaneously executes several large capital expenditure projects for the power industry, was grappling with technical complexities and disconnected departments.

The lack of real-time project information, manual maintenance of project information, siloed tracking of project activities, lack of standardization on project schedules, and minimal insight into resource allocation and prioritization all added up to a huge opportunity.

SPG Dry Cooling wanted to invest in a project management and control tool that would help the company manage concurrent projects; gain insight into procurement, fabrication, and logistics; enable cost control; and engage project stakeholders on a common, interactive, and user-friendly platform.

Data shows that across all industries, companies that earmark money for research and development spending on software earlier than their competitors enjoy greater revenue gains.*

SPG Dry Cooling achieved their goal of saving between four to six weeks in delivery time within six months of implementing Oracle Primavera Cloud.

 

Resource planning

SPG Dry Cooling deployed a Lean planning approach with Oracle’s Primavera Cloud. Project managers and department heads have a multi-project, multi-activity, global view that helps them control project execution. What’s more, individuals feel a greater sense of project ownership because they can see how their work is impacting project execution

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“Our finance team is very happy with Oracle Primavera Cloud’s financial reporting and forecasting capability."

- Dimitri de Suraÿ, Vice President, Global Operations, SPG Dry Cooling

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Oracle Primavera Cloud enables prioritized and efficient internal engineering resource scheduling both within as well as across projects. So far, roughly 30 percent of projects have reached the company goal. The six-week reduction provides a valuable competitive advantage.

Procurement and logistics management

SPG Dry Cooling is leveraging Oracle Primavera Cloud to optimize their supply chain. The company is using the dashboard and scheduling functionality and are seamlessly collaborating using a central cloud-based system. Overall, there is an improvement in meeting key project milestones by accurately assigning procurement tasks and scheduling.

“Delivery time is key. Our target is to spend more time on the supply chain, buy better, and reduce components costs. We’ve seen improvement in on time delivery and a decrease in idle time and delays awaiting materials delivery, " says de Suraÿ.

Supported by Oracle Primavera Cloud, SPG Dry Cooling has achieved a 6 percent reduction in costs. Logistics professionals can invest more time on negotiating shipment rates and reducing demurrage and ship waiting costs and less time tracking and expediting. SPG Dry Cooling also saves money by reducing expedited items and unplanned costs and spends less time managing urgent tasks.

Project cost control

Previously, non-centralized cost control resulted in inefficiencies and budget forecasting errors. SPG Dry Cooling is able to  seamlessly review budgets and accurately forecast costs, enabling continuous follow-up by project managers, by integrating Oracle Primavera Cloud with their ERP system.

Learn more about how Oracle Primavera Cloud can help you get ahead of the competition.

* "Industrial Manufacturing Trends 2018-19," Strategy&, part of the PwC network

Oracle Construction and Engineering, the global leader in construction management software and project portfolio management solutions, helps you connect your teams, processes, and data across the project and asset lifecycle. Drive efficiency and control in project delivery with proven solutions for project controls, construction scheduling, portfolio management, BIM/CDE, construction payment management, and more.

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