Engineers India Limited

1st February, 2013

PROJECT MANAGEMENT AND RISK

MITIGATION PRACTICES AND ITS IMPACT ON

CONTROL SYSTEM INTEGRATORS

1st February 2013

SYSTEM INTEGRATION

° Bringing together of the component sub-systems into one system and ensuring

that the sub-systems function together as a system.

° System integration is also about adding value to the system, capabilities that are

possible because of integration between sub-systems.

° Control system integration is the process of linking together different computing

systems, hardware systems and software applications physically or functionally

to act as a coordinated whole which helps us to efficiently monitor, better predict

and control complex processes.

° Therefore system integration is about bringing together discrete systems utilizing

a variety of techniques such as computer application integration, business

process management and manual programming.

SYSTEM INTEGRATION

4

STAKE-HOLDERS OF SYSTEM INTEGRATION

Manuf.

# 1

Manuf.

# 2

System

Integrator

Manuf.

# 3

Client

SYSTEM INTEGRATOR

SYSTEM INTEGRATOR

° A Company or a person that specialises in bringing together component sub-

systems into a whole and ensuring that those sub-systems function together.

° System Integrator in automation industry typically provide the product and

application experience in implementing complex automation solutions

° Often, system integrators are aligned with Automation vendors, joining their

various system integrator programs for access to development products,

resources and technical support

° System integrators are often viewed as the engineering arm for small

manufacturers, handling their automation system installation, commissioning and

long term logistics requirements

° A system integrator traditionally realize approximately 50% of revenue from

consulting services and 40% of revenue from IT services in design,

implementation and post transaction consulting

LIFE TIME ACTIVITIES OF SYSTEM

INTEGRATOR

° Business Development

° Project Management

° Requirement definition and specification

(Ambiguity, conflict , new developments)

° Feasibility Analysis

° System Architecture Development

° System Design

° Engineering Design

° Cost Engineering

° Quality Reviews

Contd. next page

LIFE TIME ACTIVITIES OF SYSTEM

INTEGRATOR

° Ordering and Receipts

° Software Development

° Hardware Manufacturing

° Factory Acceptance Test

° Implementation including Installation

° Loop Checks

° Calibration

° Site Acceptance Test

° Turn over package / documentation

° Logistic Support / Annual Maintenance Contracts

° Invoicing and Cash Management

Contd. from previous page

9

Some measures that can be taken to prevent problems in an

integrated system network:

° Ensure correct installation and topology doc. of network.

° Only use qualified and approved network components.

° Consider use of a mix of components from different

manufacturers.

° Check network normal operation parameters.

° On-line reporting of network communication problems.

° Analyse and test weak points through Failure Mode and Effect

Analysys (FMEA), take precautions (as specified).

° Analyse (and test if required) effects of changes in

configuration by new FMEA.

SYSTEM INTEGRATION ISSUES

COST CONTROL & CASH MANAGEMENT

RESPONSIBILITY OF CLIENT

° Project Budget

° System Integration Definition (Technical)

° Responsibility Definition

° Project Schedule

° System / Equipment Supplier

° Project Control Mechanism

° Selection of System Integrator

° Conflict Resolution

° Team Management

° Acceptance Criteria

° Cash Flow Management

PROJECT PERFORMANCE ANALYSIS

SYSTEM INTEGRATOR

PROJECT RISKS

° System Requirements

° Technology Capability / Technology Supplier

° Budget and fund Management

° Project Schedule

° Modeling and Simulation Accuracy

° Environment, Safety and Health

° Stakeholder, Legal and Regulatory issues

ARE YOU SURE OF SYSTEM REQUIREMENTS ?

WHO IS OUR BEST TECHNOLOGY SUPPLIER ?

DO WE HAVE COMPETENCE TO DO SYSTEM

INTEGRATION ?

DO WE HAVE COMPETENCE TO DO SYSTEM

INTEGRATION ?

DO WE HAVE COMPETENCE TO DO SYSTEM

INTEGRATION ?

DO WE HAVE COMPETENCE TO DO SYSTEM

INTEGRATION ?

RISK MITIGATION

RISK MITIGATION METHODOLOGY

RISK MITIGATION METHODOLOGY

° Continuous monitoring and controls of Technical Baseline

° Management of changes to the Technical Baseline

° Management of programmatic Baseline;

- Work Scope

- Project Schedule

- Cost

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Risk Mitigation

Identify Risks

Analyze & Assign Risk

Prioritization of

repose measures

Contingency

planning

Mitigation

Monitoring

•Risk Identification

•Risk Analysis

•Prioritization of

response measures

•Contingency planning

•Mitigation

•Monitoring

RISK MITIGATION METHODOLOGY

26

Overload - too many packets!

3

•Competent

•Competitive

•Intuitive

•Team Player

•Effective Project Manager

•Cost & Quality Consciousness

•Communication effectiveness

DOOR TO BE BEST SYSTEM INTEGRATOR

Engineers India Limited

THANK YOU

•

1st February 2013