EPCM Project, Supply Chain and Procurement Insightsmedia.ess.jwnevents.com.s3.amazonaws.com/NBSF2012/Bruce Brockmann.pdf · “Oil sands production is expensive and faces significant

© 2012 Fluor Corporation. All Rights Reserved.

EPCM Project, Supply Chain and Procurement Insights

CA20120468001© 2012 Fluor Corporation. All Rights Reserved.

FLUOR is a registered service mark of Fluor Corporation.



Fluor Corporation

One of the world’s leading publicly traded engineering, procurement, construction, maintenance, and project management companies

Fluor is a FORTUNE 500 company and is ranked No. 1 in the "Engineering, Construction" category of America's largest corporations.

Over 1,000 projects annually, serving more than 600 clients in 66 different countries

Global workforce of more than 43,000

Offices in more than 25 countries on 6 continents

100 years of experience as industry leader in 2012





Fluor Corporation Engineering Locations





Fluor Canada Ltd.

Providing EPC services in Canada since 1949– Based in Calgary since 1973

Calgary is one of Fluor’s major execution centres and one of the largest offices

Provide a complete range of services including Conceptual and Feasibility Studies, FEED, Detailed Engineering, Construction, Construction Management and PMC

Provide a complete range of facilities including refineries, oil sands and heavy oil upgraders, SAGD, petrochemicals, chemicals, gas processing/NGL, LNG, as well mines, cogeneration, and revamps of existing facilities





Supply Chain Management

Maximize return on investment for our global clients through:– Global procurement resources, processes, systems, – Market knowledge, – Volume-leveraged pricing– Reliable project deliveries, – Innovative performance solutions, – Project savings

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Supplier engagement

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Supplier engagement

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Supplier engagement

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Good Supplier Partnerships

Getting

things

right.

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trust,

integrity,

honesty,

courage,

respect,

transparency,

accountability





The Challenge

“Oil sands production is expensive and faces significant risks associated with its environmental and social impacts.” ref: Globe & Mail, May 17, 2010, Investment risks rising in oil sands: report by RiskMetrics Group

“While lower production, operating costs and the price of natural gas have significant impacts on the total supply cost, a 25% fluctuation in capital costs can have a greater impact than all three combined at C$3.70 per barrel of SCO.” Ref: University of Alberta School of Business, Rob Engelhardt and Marius Todirescu, February 10, 2005, “An Introduction to Development in Alberta’s Oil Sands”

Courtesy of Shell Canada Ltd.





Integrated planning, supply chain and project execution

Procurement process divided into "big P" - strategic procurement items, including complex engineered equipment and systems essential for project performance, and "little p" - the balance of items to be procured;

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Modular Engineering has more constraints– Module boundary defines available volume – Effective layout dependent on component dimensions

Engineering Work Packages more detailed– Certified Vendor Data required earlier– Parallel Multi-Discipline collaboration

Fabrication Work Packages highly structured – Modeling more detailed– Compilation of documents required earlier– Material delivers critical

Work Face Planning– Dependent on receipt of information – Dependent on receipt of materials

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Opportunities

Early engagement to share information

Innovation and technology solutions required

Execution solutions required

Flexibility to support client commercial arrangements

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Documents

EPCM Project, Supply Chain and Procurement Insightsmedia.ess.jwnevents.com.s3.amazonaws.com/NBSF2012/Bruce Brockmann.pdf · “Oil sands production is expensive and faces significant