MCE conf - Driving Value through Subsea Standardization

OIL & GAS
Driving value through Subsea
Standardization
Perspectives, thoughts and way forward..
Anders Husby
24 March 2015
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SAFER, SMARTER, GREENER
Standardization: The new innovation
“Standardization” becoming
a buzzword in the industry
– Our reflection is that many
talk about standardization
as the solution
– But what does the
industry understand by
Standardization?
Why discuss Standardization
of materials and components
without addressing work
processes?
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Where are standards being developed in our industry?
Tradition of standards
being developed
collaboratively
Customers
Authorities
Accredited
organisations
Manufacturers
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Effect of technical requirements exceeding industry standards
Company I
Company II
Contractor
Company I
Company II
Supplier I
Company I
SubSupplier
CompanyI I
SubSupplier
II
Supplier I
SubSupplier
III
Sub-supplier
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SubSupplier I
SubSupplier
II
Supplier
Supplier I
Company II
SubSupplier
III
Contractor
SubSupplier I
SubSubSupplier
Supplier
II
III
Company II
Company
The industry standard needs to be accepted
Cost
In many instances operators
and contractors use vendors
that are also serving industries
outside the Oil and Gas
industry
NCS Offshore Industry
GAP
Industry standard
General industry
Scope
Illustration represents a typical component.
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What’s the motivation for standardization?
If we are to drive greater standardization there must be a motivation
Motivation comes from:
– Avoiding unnecessary work and re-work
– Competition on equal terms
– Gaining efficiency by avoiding ambiguous requirements
– Taking away requirements that do not contribute to function or quality
– Achieving predictability
By being smart in standardizing requirements to processes, it will not restrict
innovation
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Who can the Subsea industry learn from?
For subsea, the following industries have
frequently been mentioned:
Automotive
Drilling
Aircraft
MOU
Space
Maritime
This may be good for a system approach,
engineering and validation processes
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However, for fabrication, supply chain
management, materials, it is more logical
to refer to:
24 March 2014
Common supply chain, similar project size,
similar size in goods, industries with
success from Norway
Standardization – identical parts or identical processes
For this vehicle, you can choose:
Gasoline – Diesel Engine + different
power output
Manual – Automatic transmission
Short – medium – long wheel bases
Van, High roof, Bus, Pick up, truck
Ordinary doors – sliding doors
15 million combinations
Why is this still a standard product?
Is there a different user manual?
Customer interference to manufacturers work processes?
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Two examples on standardization
STEEL FORGINGS FOR SUBSEA
APPLICATION
STANDARDISED SUBSEA
DODUMENTATION
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JIP example:
STEEL FORGINGS FOR SUBSEA APPLICATION
Operators
Challenge:
Contractors
Manufacturers
End users’ individual technical
requirements for forgings for subsea
systems lead to unnecessarily long
delivery times
Solution:
Harmonize end user requirements and
improve industry practices through a
Recommended Practice.
Enable stocking of forgings
Value proposition:
Contractors and manufacturers will
benefit from reduced lead time and
better consistency, repeatability and
quality
JIP start-up: November 2013
Completion: December 2014
RP scheduled for Q1, 2015
Contact: Morten.Ro.Helsem@dnvgl.com
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Summary - JIP Standardized Subsea Documentation
Operators
Challenge:
Contractors
Others
Operators, contractors and suppliers to jointly
scope and agree upon a typical set of subsea
systems and functions, and its required
minimum set of documentation. Agree upon
documentation definitions and a method to
allow for company specific requirements.
Solution:
Practically improve industry practices through
a DNV GL Recommended Practice.
Value proposition:
JIP start-up: January 2014
Increased predictability will improve industry
practices; helping operators, contractors and
suppliers to better understand and manage
subsea documentation, and benefit from
reduced lead time, less documentation, a
sharing paradigm, increased awareness,
transparency and improved quality.
Completion: December 2016
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RP draft 1 scheduled for Q4, 2014
Contact: jarl.s.magnusson@dnvgl.com
Subsea Product and Component Certification
Objective
Industry have requested a certification scheme
Establish certification scheme for subsea
equipment and components
Provide a certification service that is carried out in
a controlled and consistent manner throughout
the world
Deliverable
DNV GL Standard for Subsea Equipment and
Components
DNV GL Service Specification for Product
Certification
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Summary
Standardization is more than making
identical parts
Predictability is important
Standardization enables flexibility to
custom making through standardized
modules
Use the ‘best practice’ in the industry
and ensure safety in all parts of the
process
Work processes and interfaces are key
factors in standardization
Focus standardization efforts where
there is most ‘bang for the buck’
The upside is less quality risk, less
schedule risk and lower cost without
restricting innovation
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Thank you for your attention
anders.husby@dnvgl.com
Tlf.: +47 905 91 717
www.dnvgl.com
SAFER, SMARTER, GREENER
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