PIP Overview

American Society for Quality

Design and Construction Division
September 2005
 PIP
Working in Harmony

Improving Capital & Maintenance

Efficiency
 Objectives

• Broaden understanding of PIP initiative.

• Raise awareness of PIP “value proposition”.
• Advocate “knowledge management”
opportunity and quality of Practices.
• Display current state of PIP Practices.
• Validate PIP harmonization process and
applicability to other industry segments.
 Process Industry Practices

A consortium of companies
sharing the goal of reducing
plant costs through
development and
implementation of common
industry practices for detailed
design, construction,
procurement, operation, and
maintenance of manufacturing
facilities.
 Value Proposition
• Owners
– Project costs reduced. Estimated 2-5% reduction in
Total Installed Costs. Application to maintenance work
also.
• Contractors
– Visibility and working with clients.
• Owners and Contractors - Impact on internal standards
effort and effective use of technical resources:
– Reduced creation / maintenance costs
– Capturing “knowledge & experience”
– Higher quality & consistently current
– Leveraging of scarce resources
– Networking opportunities within industry
PIP - “a small seed”

• PIP indeed began in 1992

as “a small seed”, planted
and nurtured in the minds
of a few visionaries for our
industry.
 The Small Seed
“Is A Ladder Really Just A Ladder?”
 PIP Member Consortium

• Fifteen members established PIP

in 1993.
• Self-funded under CII.
• Now includes 37 U.S. process
industry companies:
– 26 owners
– 11 EPC contractors
• Represents a significant share of
the industry.
 PIP Members: Owners

3M CYTEC Huntsman
Adv. Silicon Mat’ls. Degussa Corp. Monsanto
Aramco Services DuPont PPG
Arkema Inc. Eastman Chemical Rohm and Haas
BP Flint Hills Resources Shell Oil
Celanese FMC Solutia
Chevron Corp. Great Lakes Chemical Sunoco
Citgo Honeywell UOP
ConocoPhillips HOVENSA L.L.C.
 PIP Members: Contractors

Aker Kvaerner Jacobs

BE&K KBR
Bechtel S&B E&C
Burns & McDonnell Technip
Chemtex International WorleyParsons Ltd.
Fluor
 PIP Membership Requirements
(1 of 2)

• Annual dues payment

• Active Steering Team participant
• At least one active qualified participant on a
function team
• More active participation encouraged
 PIP Membership Requirements
(2 of 2)

• Provide internal non-proprietary standards for

harmonization of industry Practices
• Input for Practices revisions
• Voluntarily adopt & implement Practices
• Follow PIP business guidelines
• Commitment to improvement of the process
 PIP Vision
PIP Practices are:

• the “universal language” in the

industry for engineering,
procurement, and construction,

• widely recognized and available

electronically,

• up to date, of high quality, and

used essentially “as is”,

• voluntarily adopted and used by

a majority.
 Before With
PIP PIP

SOCIETY SOCIETY
STANDARDS STANDARDS

INTERNAL
STANDARDS
PIP

INTRNL STDS
SITE SPECIFIC
SITE SPECIFIC
 Principles for Success
(1 of 2)

• Participation is voluntary and open to all qualified.

• Funded & supported by participating companies.
• Develop recommended Practices based on existing
company internal standards.
• Influence other organizations to adapt their
standards to meet process industry needs.
• No duplication of work of others.
• Work only with non-proprietary information.
 Principles for Success
(2 of 2)

• High level of participation.

• Operate on “break-even” basis; small staff.

• Published Practices available for purchase by

any interested party.

• Provide long-term support for updating.

• Use streamlined, short cycle time, technically

sound process.
 PIP Engineering Disciplines

• Civil, Structural, Architectural

• Coatings, Insulation, and Refractory
• Electrical
• Machinery
• P&ID
• Piping
• Process Control and Analyzers
• Vessels (Includes shell & tube exchangers and tanks)
• Work Processes (Internal to PIP)
 Organization

STANDING COMMITTEES

PIP STEERING TEAM

LEGAL

EXECUTIVE COMMITTEE
MARKETING

FTS1 FTS2 FTSn

WORK PROCESSES

STRATEGIC PLANNING
FUNCTION TEAM LEADERS
GLOBALIZATION
(FUNCTION TEAM LEADERS & SPONSORS)

FTL2 FTL4 FTL6 FTL8 FTLn

ELECTRICAL MACHINERY P&ID PROC CTL

TASK TEAMS TASK TEAMS TASK TEAMS TASK TEAMS TASK TEAMS

FTL1 FTL3 FTL5 FTL7

CSA CIR PIPING VESSEL

TASK TEAMS TASK TEAMS TASK TEAMS TASK TEAMS

 Practices by Discipline

250 234
219
Number of Practices

200 Published 451

Planned 527

150

100
79
61 6369
50 4043 33
31 30
20 21 20
7 8
0
CSA CIR ELEC MACH PC PIPE VESS WPT
 Members’ Reported Successes
(1 of 2)

• More than 30 percent reduction in costs

for maintaining internal company
standards.
• Reduced valve inventory by 10 percent
using PIP Practices.
• PIP Piping Practices save up to 1.6
percent of total installed cost and 2
weeks on schedule.
 Members’ Reported Successes
(2 of 2)

• Reduced piping group work hours by

25% on typical project.
• Saving $250,000 per year on annual
maintenance of internal specifications.
• Reduced specification development and
set-up time by 5-10%.
• Substantial reduction in hours required to
develop/maintain valve data sheets.
 Implementation Resource Center
(www.pip.org/members/irc/index.html)

• Member’s addenda

• Systems examples

• Success stories

• Tools

• Metrics

• Lessons Learned
Members’ Adoption and Implementation Data

Individual Practices

• Adopted 51%
• Plan to adopt 12%
• Undecided 19%
• Adoption not planned 17%

• Implemented 25%
(84% “as is”)
 PIP Harmonization Process

Data Collection Existing company standards

Data Analysis Define similarities, differences

Model Development Align similarities and harmonize

Model Test Industry “experts”

Model Application PIP Industry Practice

Harmonizing
Companies
Member

Engineering –
Procurement –
Construction Process
Process Industry
PIP Practices
PIP Member Co. A
Engineering Standards
PIP Member Co. B

Adopting
Engineering Standards
PIP Member Co. C
Engineering Standards
 Harmonization Potential

• Promote use of PIP as core for harmonizing EPC

industry practices.
• Key adjunct to “knowledge management”
strategy with loss of technical resources.
• Continue providing input to industry on
standards and code development.
• Guide technology development and application.
• Help globalization of EPC industry practices.
 PIP Impact: Industry “Voice”

• Actively interfaced with other industry groups

(e.g. Hydraulic Institute, Steel Plate Fabricators
Association, Material Technology Institute,
National Insulation Association, etc.).
• Successfully petitioned International Building
Code (IBC) for code exceptions on industrial
equipment platforms.
 PIP Impact:
Collaborative and Joint Efforts
(1 of 2)

• API (American Petroleum Institute)

– Machinery Installation (API RP 686)
– Welding (API RP 582)
– DCS Process Instrumentation & Control (API RP 554)
– Other Standards Revisions
• ASME (American Society of Mechanical Engineers)
– Pump Data Sheets (ASME B 73.1)
– Granular Storage Bins & Tanks
• FIATECH (Fully Integrated & Automated Technologies)
– AEX-XML Project for data sheets
– Global Valve Cross-Reference eCatalog
 PIP Impact:
Collaborative and Joint Efforts
(2 of 2)

• ISA (Instrumentation Systems & Automation Society)

– P&IDs (Piping & Instrumentation Diagram)
– Safety Instrumented Systems Guidelines
• IEEE (The Institute of Electrical & Electronic Engineers)
– Motor Data Sheets (IEEE 841)
• NIA (National Insulation Association)
– Insulation Practices for National training session
 Globalization As A Priority

• Lack of globalization is seen

as impediment to adoption.

• Most major projects now

international and trend will
continue.

• Globalization is a trend for all

business sectors.
 Global Distribution of PIP Practices

Australia Italy
Brazil Japan
Canada Korea
France Saudi Arabia
Germany Spain
Great Britain Trinidad
Indonesia UAE
 Purpose of Globalization Committee

• Develop strategies and action plans

to enable use of PIPs outside U.S.

• Frame issues for presentation to

Steering Team.

• Result should be phased action plan.

• Committee reports to Steering Team

and will monitor, provide information
regarding globalization progress.
 Subscription Program

• Annual electronic subscription

(PDF files and Electronic Entry
Data Sheets from PIP web site)

• Potential subscribers:

– Owners and contractors

unable to commit resources
to participate

– Suppliers and vendors

• Cost - All Practices $30K per year
(currently discounted from $33K):
- or by discipline ($500 -
$6K )
 PIP Subscribers
Kraton Polymers*
Agrium*
Petroleum Company of Trinidad & Tobago*
Ambitech Engineering
Phoenix Park Gas Processors Ltd.*
Arrington Companies
Saudi Basic Industries (SABIC)*
Canadian Natural Resources
Limited (CNRL) Saudi International Petro-chemical Co.
(SIPCHEM)*
Carboline
Sherwin Williams
Coffeyville Resource Refining
Southern Company*
& Marketing LLC*
Stone & Webster Ltd.*
Emerson Process Management
The Williams Companies*
GE Energy
WMC Resources Ltd.
GE Silicones-OSI Specialties*
Invista*
 Licensing Program
• Available to related e-commerce
providers, systems developers,
and value-added resellers.

• Allows including PIP Practices

and derivatives in licensee’s
product.

• Significant P&ID application

• Educational institutions
 PIP Licensees

ASME ISA
Aspen Technology National Insulation Association
Aveva St. Paul Technical College
Bentley Systems Universidad Nacional Autonoma
Conestoga College de Mexico
IEEE University of South Dakota
Intergraph
 PIP Successes

• “Case for Change” development

• Published over 450 PIP Practices
• Collaboration with Standards Development
Organizations (SDO)
• Membership, Subscription, and License
growth
• PIP is heard as an “industry voice”
• Enabling global application of Practices
 Practices Distribution
Copyright:
• “Process Industry Practices, Construction
Industry Institute, The University of Texas at
Austin”
Distribution:
• Member companies as benefit of membership
• Unlimited right to copy for members and
subscribers
• Electronic to members and subscribers
• Paper copies to non-members
 Value Proposition for PIP
• Reduced Costs for:
– Projects and Maintenance
– Maintaining internal standards
– Commodity equipment procurement
– Detail design and construction hours
• Reduced inventories of valves and piping materials
• Improved “Knowledge Management” & Quality:
– Fewer spec conflicts and code inconsistencies
– Alignment with industry “Best Practices”
– Widespread understanding of common specs
Driving Greater Capital and Maintenance
Efficiency

Visit us on the Web

www.pip.org