OIL & GAS Driving value through Subsea Standardization Perspectives, thoughts and way forward.. Anders Husby 24 March 2015 1 DNV GL © 2013 24 March 2014 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? 2 DNV GL © 2013 24 March 2014 Where are standards being developed in our industry? Tradition of standards being developed collaboratively Customers Authorities Accredited organisations Manufacturers 3 DNV GL © 2013 24 March 2014 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 4 DNV GL © 2013 24 March 2014 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. 5 DNV GL © 2013 24 March 2014 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 6 DNV GL © 2013 24 March 2014 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 7 DNV GL © 2013 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? 8 DNV GL © 2013 24 March 2014 Two examples on standardization STEEL FORGINGS FOR SUBSEA APPLICATION STANDARDISED SUBSEA DODUMENTATION 9 DNV GL © 2013 24 March 2014 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: [email protected] 10 DNV GL © 2013 24 March 2014 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 11 DNV GL © 2013 24 March 2014 RP draft 1 scheduled for Q4, 2014 Contact: [email protected] 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 12 DNV GL © 2013 24 March 2014 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 13 DNV GL © 2013 24 March 2014 Thank you for your attention [email protected] Tlf.: +47 905 91 717 www.dnvgl.com SAFER, SMARTER, GREENER 14 DNV GL © 2013 24 March 2014
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