1. 1 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Comos prototype for piping estimate Aerni consulting Zürich/Maur, October 2010

2. 2 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Process object oriented cost model Cost summaries are shown on all process object levels (Plant, process unit, process stream, etc) Estimation is made currently on process stream level (with input from the simulator) with a short cut method based on BOQs of the process stream of a selected and executed process unit Cost object are mainly differentiated between Material (/$) and Services (Hours//$) objects Possibility to extend short cut method on process unit resp. add BOQs (Pipe elements, Elbows, etc.) on process stream level Possibility to export and re-import the few BOQ-items which make 80% of the cost to include up- to-date material and installation unit rates Prices are calculated in a custom-made structure (limited access) and according to a customer breakdown request Various overheads and taxes can be included for price calculation The estimate can consider allowances, contingencies and escalation Possibility to consider customer payment schedule for cash flow consideration Cost for material are estimated based on real cost from supplier or per default on unit rates and a given rate code Cost for services are estimated based on the calculation of norm hours per unit of measurement (e.g. handling-kg; welding-Inchdia) or from unit rates of contractors Summary – Piping estimation with Comos

3. 3 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Overall cost and hours Overall cost and hours per process unit Overall cost and hours split per discipline and cost category including key characteristics (e.g. total weight, etc.)

4. 4 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Overall cost and hours for a process unit Overall cost and hours for a process unit with its split per discipline and cost category including key characteristics (e.g. total weight, etc.)

5. 5 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Overall cost and hours for a process stream Main characteristics: ND, Thickness and Material of process stream Weight, inchdia, length and equivalent length of process stream Process flow diagram of a process unit with process equipment, valves and streams with indication of cost for the process streams

6. 6 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Cost, hours and characteristics for process streams in a process unit Overall cost and hours for process streams in a process unit

7. 7 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Cost, hours and characteristics for a process stream Old values are determined from the detailed MTO of the executed project and the heaviest pipe segment New values are copied from the old values The cost, hours and characteristics of the process stream determined by the detailed MTO are written to the respective fields by pressing the button Get info and calculate (bottom up)

8. 8 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Cost, hours and characteristics for a pipe segment Old values are determined from the detailed MTO of the executed project New values are copied from the old values The cost, hours and characteristics of the pipe segment determined by the detailed MTO are written to the respective fields by pressing the button Get info and calculate (bottom up) button on the process stream level

9. 9 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Cost, hours and characteristics for a cost object representing a service (e.g. Welding) attached here to the pipe segment The cost, hours and characteristics of the welding object are written to the respective fields by pressing the button Get info and calculate button or by clicking on the buttons on the process stream level. The quantity is taken from the total inchdia of the pipe segment and a certain degree of prefabrication which is dependent on the complexity of the pipe segment and the size of the pipe segment (e.g.prefab for >2) The norm labour hours are calculated based on the material, nominal diameter and thickness of the pipe segment The customer currency is inherited from the customer price breakdown structure The rest of the characteristics are gotten from tables which are defined in the basis of calculation object(e.g. allowance, contingency, rate, yearly escalation etc.)

10. 10 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Cost, hours and characteristics for a cost object representing material(e.g. piping material) attached here to a pipe part component (e.g. pipe, elbow, flange, etc) The cost and characteristics of the material object are written to the respective fields by pressing the button Get info and calculate button or by clicking on the button get info and calculate (bottom up) on the process stream level. The quantity is taken from the quantity of the pipe part component The rate code is determined based on the material, nominal diameter and thickness and the part type of the pipe part component The norm quantity is based on unit of measurement and the UOM of the rate in order to calculate unit cost (e.g. the unit of the norm quantity of 94.55 is (kg/m) for a pipe but kg/pc for an elbow) The customer currency is inherited from the customer price breakdown structure The rest of the characteristics are gotten from tables which are defined in the basis of calculation object (e.g. allowance, contingency, rate, yearly escalation etc.)

11. 11 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Estimating cost, hours and characteristics for a process stream Old values are determined from the detailed MTO of the executed project and the heaviest pipe segment New values are entered or calculated based on the process simulation The cost, hours and characteristics of the process stream are calculated based on the new material, nominal diameter and thickness by pressing the button Short cut calculation. The calculation is based on the old values. Additionally, the pipe segment objects including service objects are automatically adapted A new value can also be entered for the length

12. 12 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Cost, hours and characteristics for a cost object representing a service (e.g. Welding) attached here to the pipe segment The cost, hours and characteristics of the welding object are updated automatically depending on the new values of the Process stream resp pipe segment The quantity is taken from the total inchdia of the pipe segment and a certain degree of prefabrication which is dependent on the complexity of the pipe segment and the size of the pipe segment (e.g.prefab for >2) The norm labour hours are calculated based on the new values for material, nominal diameter and thickness of the pipe segment (e.g in this case nominal diameter was changed from 14 to 18 and thickness was changed from 35.71mm to 45.24 mm which led to a change of norm hours from 3.22 h per inchdia to 4.2 h per inchdia Estimating cost, hours and characteristics for a process stream

13. 13 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved The desired customer breakdown structure can be defined. This is the basis on which prices with taxes, profit and overheads are calculated Detailed general overheads can be defined in a table by percent or absolute value Customer payment schedule are defined in a table for cash flow valuation The basis for calculation is the provisional acceptance certificate date and supplier down payment of 10% at order date and progress payment up to 100 % at delivery

14. 14 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved New Cost, hours and characteristics for process streams in a process unit compared with old characteristics (e.g. changing the nominal diameter from 14 to 18) Overall cost and hours for process streams in a process unit

15. 15 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Project information tab: Standard schedule based on notice to proceed and plant type to calculate inflation and spending over time (one part for cash flow) The calculation basis object for cost estimation has several tabs with tables which can be defined per project

16. 16 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Rate tab: The main content of the rate table is the rate code, the rate and the partner who supplied the scope. This is the main table for bottom up cost estimation The calculation basis object for cost estimation has several tabs with tables which can be defined per project

17. 17 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved Allowance tab: The main content of the allowance table is depending on the partner, the plant type, the discipline and the cost category, the allowance and the contingency which have to be applied to the project which is estimated. The allowance is taking into account the uncertainty on the quantity (based on past projects). The contingency is taking into account the uncertainty on the price (based on past projects). The calculation basis object for cost estimation has several tabs with tables which can be defined per project

18. 18 Aerni consulting_services_en_20101018.ppt- Copyright © 2010 Alain Aerni all rights reserved For further information please refer to: Alain Aerni Consulting in: productivity improvement and growth Hubrainweg 18 CH-8124 Maur Switzerland Tel.:+41(44) 980 23 04 Fax:+41 (44) 980 54 38 Mobile: +41 (79) 223 39 89 E-Mail: aerni.alain@ggaweb.ch