iSpec - remy-is.com

iSpec

© Remy InfoSource 2016

Wednesday May 4, 2016

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iSpec Presentation

This is a shortened version of the iSpec presentation.

iSpec


Large CAPEX Projects

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• Complexity. • Decisions made, technical problems solved, financing requirements assessed, supplier

capacities evaluated, legal issues addressed. • Not even the smallest detail can be overlooked.

• Multiple stakeholders. • Aligning the many functional stakeholders typically involved in large capex projects is a

major task. Finance, procurement, legal and engineering all consider different issues.

• Interfaces. • The combination of functional and international stakeholders and different segments

and procurement packages requires well-managed interfaces. Good communication/collaboration is essential.

• Disconnect. • The integration of Project management, Technology and Procurement functions into an

integrated unit can improve performance by achieving better control, project cost reduction and the opportunity to achieve performance leadership through technology. (Shell white paper).

Large CAPEX projects are a species on their own. The complexity, wide range of stakeholders and typically long duration creates problems unique to this environment.

iSpec


Disconnect

• There is a disconnect between • Technology experts

• Procurement

• Project management

• Finance

• Other stakeholders

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Project management

ProcurementTechnology/expertise

There is typically a disconnect between the major functions/departments.Many organisations have a diverse range of applications and tools which combine to deliver the procurement process and project management to final delivery and commissioning, however this complexity often leads to lack of integration. Tracking, auditing and synching information across multiple systems is time consuming and expensive in terms of people and potential project delays no matter how efficient the organisation is.Information gets lost as the project moves from one department/function to the next.

iSpec


The Result• Project information is scattered

on computers and in documents throughout multiple organisations and systems

• Missing/outdated documents

• No Accountability

• Difficult to audit

• No control/authorisation

• No transparency

• High risk

• Many disputes

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The main reason we experience all the above-mentioned problems is the fact that this information is typically scattered on computers and in documents and tools throughout the organisation and often even in other organisations.

iSpec


Intangible Risk

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“Intangible risk always occurs, but is ignored by the

organisation as they lack the ability to identify it.

It directly reduces the productivity of knowledge workers, decreases cost

effectiveness, profitability, service, quality, reputation, brand value, and earnings

quality.”

• Knowledge risk (poor access to information/skills)

• Relationship risk (poor collaboration)

• Process-engagement risk (poor procedural compliance and no transparency)

This intangible risk always occurs, but is ignored as it is not identified. For example, when deficient knowledge is applied to a situation, a knowledge risk materialises. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity.

iSpec


Intangible Risk

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Impact/Probability

Insignificant Minor Moderate Major Catastrophic

Almost Certain Missing/lost emails, meeting notes, variation orders

Ambiguous specs leading to cost increases

Likely Insufficient design detail before awarding

Old/incorrect specifications/contract docs

Missing contract documentation

Possible Delays - due to design changes

Vendor capability

Unlikely Vendor financial stability

Rare

Here are some of the intangible risks for technology projects - in this case a Quay Crane purchase

iSpec


QA, delivery tracking, inspections, variation

orders.

iSpec Master Library Specs, schedules,

agreements

Tender management, evaluation, compliance

Integration• iSpec facilitates binding

these functions into an integrated unit thereby • improving performance

by achieving

• better control,

• project cost reduction and

• performance leadership through technology

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Project management

ProcurementTechnology/expertise

iSpec

iSpec integrates the functions of all the various departments and stakeholders into a seamless process thereby reducing not only intangible risk but reducing administrative effort and improving efficiency.

iSpec


Filling the Gaps

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Tech Spec Management

Planning systems

Evaluation

MRP

Inventory Management

Quality Management

Invoice processing

Goods receiving

Approval

Purchase order

PaymentRequisition

Internal business

requirementReporting

Contract implemented

Contract draft and review

NegotiationSourcing RFx

External info gathering

Transactional Processing

Strategic Sourcing

Trials & Supplier

Accreditation iSpec

Typical ERP /eTendering

systemItem based procurement -

SKUs

Here is a graphic presentation of how iSpec complements typical ERP systemsAlthough many ERP systems have SRM(Supplier Relationship Management) modules, these are not as comprehensive as iSpec and are built for a manufacturing environment. iSpec was built around real-world experience specifically related to CAPEX project specification, sourcing and project management.

iSpec


iSpec - the intuitive solution• Web based solution

• Requires only a browser

• Fewer support issues

• Global access

• Role-based access

• Full security

• Manages integrated process

• Master library

• Tender creation/publication

• Vendor response

• Evaluation and negotiation

• Contract management

• Quality Assurance

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To appreciate iSpec you have to see it in action and understand the depth of the application. Many e-tendering systems are good, but do not have the depth of information, audit trail and scope of functionality that CAPEX projects require.

iSpec


iSpec• Only 1 set of data - the right one

• Global role-based access

• Concurrent editing

• Version control (audit trail)

• Complete contextual audit trail

• All email collaborations

• All negotiations

• All vendor responses

• All clarifications

• Contract amendments

• Approvals

• By whom, when, from where

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Technical/Engineering • Specifications• QA• Project management• Technical evaluations

Management/Other stakeholders • Approvals• Overview• Programme mgt• KPI•Risk Management

Procurement/legal • Agreement• Terms and conditions• Health and safety• Financials• Vendor KPI• Approvals• Commercial evaluations

Vendors • Bid submissions• Clarifications• Change requests• Delivery tracking

Ideally, the optimum solution would involve a system that maintains centralised control but yet allows global access to all the project information. Thus no matter how far your project team is scattered geographically, all members should be able to access and work on all documents AT THE SAME TIME FROM ANYWHERE! Wouldn’t that be great. Everyone working on the same document at the same time from different locations and no data loss. There is also one set of data - not multiple copies - this means you are always working on the correct/current version.

iSpec


Workflow control

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Enforce procedural compliance

• Each RFx has: • Own workflow • Own approvals • Own project team

• This ensures: • Procedural compliance • No incomplete tenders can be

published • No incomplete bids

iSpec is structured to manage the entire workflow of the strategic sourcing project. It also enforces procedural compliance and keeps a fully transparent audit trail of the entire process.

iSpec


Create a Template

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Master library• Add template • Add documents that form part of

master set

At the core of iSpec is the master library containing all the standard templates for creating tenders. These templates are “owned” by specialists who have to approve changes and have editable clauses which need customisation relevant to the specific project and non-editable clauses which are pre-approved and may never be changed (i.e. health and safety, technical schedules, etc.)

iSpec


Project Sourcing• Feasibility studies

• Budget Approval

• Tender preparation

• Controlled editing permissions

• Templates or new documents

• Approvals for publication

• Financial

• Content (engineering)

• Publication (procurement/legal)

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Full/tailored service • Data entry • Tender preparation • Evaluation setup • Help-desk support • Consulting

When starting a new project, all the documentation/information is included in iSpec using templates from the master library and/or newly created documents.

iSpec


User Login

• Login takes user to Dashboard/My Workspace

• Lists all outstanding/overdue tasks

• Gets daily email with similar summary

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Each time when a user logs into the system, they are shown a dashboard with overdue and upcoming items requiring attention or a list of outstanding items according to their choice. They also receive an email each morning summarising all tasks that are due for their attention.

iSpec


Workflow control

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Tender preparation

• General documents/attachments

• “Live” documents • Only certain items are editable

When creating a new tender from the master templates, iSpec guides the user through the documents and clauses requiring customisation and also keeps track of progress thereby shortening the lead times for tender preparation and publication.

iSpec


Audit trail

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Revisions• All changes recorded:

• By whom • When • Compare • Roll back

The minute we edit a clause, we can see if anyone else has made any changes and we can view and compare those changes, roll back or combine them. This means that even if 2 people - one in New York and one in Hong Kong are both working on the same clause at the same time, we won’t lose any of their changes, both edits will be recorded, and the final approver can decide which to use or combine them. No other system has this capability.

iSpec


Pre-defined vendor response requirements

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Response requirements

• What are requirements? • Delivery dates • How will responses be

scored • What response is expected?

• Delivery dates • Prices • Product data • Responses to questions • Compliance (yes/no)

For each heading or for an entire document we can setup what the internal user has to do during preparation and what responses we require from the vendor.

iSpec


Vendor Response• No data mining

• Instant comparison reports

• Pricing

• Compliance

• Data/technical responses

• Complex/simple evaluations

• Commercial/Technical/Business

• Weighted average score

• Team reports/combined reports

• Moderated evaluations

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Full/tailored service • Evaluations • Negotiations • Contract awarding • Help-desk support

As all vendor response data goes straight into a database, evaluation and comparing tenders is a matter of selecting the reports/comparisons you wish to see.

iSpec


Contract Management• QA:

• Track issues

• Acceptance testing

• Punch lists

• Contract amendments

• Variation orders

• Pricing/delivery adjustments

• Delivery tracking

• Vendor performance

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Full/tailored service • Contract / Project Management • Quality assurance (inspections) • Help-desk support

After awarding of the contract and inclusion of any negotiated variations, the online documents become your contract which is then managed until final delivery and handover.

iSpec


Current Chaos

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TenderDocuments

BidDocuments

BidDocuments

BidDocuments

@

@

@

Evaluation & Negotiation

BidBid Bid

Contract

@

@@

@@

@@ @

@

Delivery@

@

@@

@@@

@

@@@

@@

@ @@

@

@@

@

@

Project team

Suppliers

So most projects are managed like this with data scattered in multiple locations in multiple systems making it difficult for all stakeholders to access it and reducing transparency and efficiency

iSpec


Organised iSpec

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1_______1.1___

2_________________3_______

3.1 Aircon3.2_____

4_______________________

Correspondence_______________________

Bid response_______________________

Negotiations_______________________

Final contract_______________________

Attachments_______________________

Correspondence_______________________

Bid response_______________________

Negotiations_______________________

Final contract_______________________

Attachments_______________________

Correspondence_______________________

Bid response_______________________

Negotiations_______________________

Final contract_______________________

Attachments_______________________

Project team

Supplier 1 Supplier 2 Supplier 3

Suppliers

iSpec

iSpec organises the entire process and all data neatly and makes it readily accessible to the appropriate stakeholders.

iSpec


Continuous Improvement

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Specification/design

Tender

Negotiate/award

Delivery

Monitoring & Analysis

Operate

Procurement phaseOperational life

FeedbackNew technology

iSpec also supports the continuous improvement process with feedback mechanisms

iSpec


Vendors already using iSpec

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• ZPMC

• Kalmar

• Liebherr

• Cargotec

• Capacity

• Carrier

• Hyster

• Linde

• Noell

• Terberg

• Bromma

• ABB

• Bardella

• Barloworld

• Buiscar

• Caterpillar

• CVS Ferrari

• Doosan Heavy

• Earls Spreaders

• Fantuzzi Reggiane

• FELS Cranes

• Gaussin

• Elgin Sweepers

• Gottwald

• Houcan Cargo

• Kone

• Paceco Espana

• RAM Spreaders

• Siemens

• Stinis

• Sumitomo

• Taylors

• Toyota

• Hundreds more..

As all the major port equipment vendors already use iSpec, there is no training requirement for vendors and they are using a system they know and love.

iSpec


Benefits & Savings

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• No need to increase headcount or distract your resources from their normal work

• Benefit from our global expertise and vendor relationships

• Instant global access to all documents correspondence/negotiations/clarifications in iSpec

• Fully transparent/audit-able paperless system

• Real-time reports at your fingertips

• Pick-lists for appropriate specifications to best match your requirements

iSpec


Benefits & Savings• Efficiency improvement 70%

• Lead time reduction

• Reduced project costs 3-8%

• Reduced project management costs

• Improved control and transparency

• Improved management reporting capability

• Improved procedural compliance

• Improved risk management

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