Reduced specification and procurement costs

Emerson has the right people and experience required to be a global Main Automation Customer on an automation project and world class at project execution. Emerson has also joined the Construction Industry Institute, CII, and adopted the PEpC process for projects (see diagram below). Using a PEpC instead of an Engineer-Procure-Construct (EPC) model could produce savings in excess of 10% to 15% of the time and 4% to 8% of the cost of the traditional EPC process.

The PEpC approach:
Procure strategic suppliers first and early
Engineer (by contractor partnered with strategic supplier)
procure commodity items
Construct

In the Engineer-Procure-Construct (EPC) model, engineering is done first, then procurement, then construction. Procurement is frequently on a low cost basis against a standard specification. But this approach often increases cost, lengthens schedules, and adds risk to the project, and the ongoing operation of the plant.

The Construction Industry Institute realized that if key technologies and key partners are identified early, and if the benefits and synergies of these are leveraged into the design process, both time and cost are reduced. In addition, risk is reduced if key partners are committed to deliver broader scope of supply, and take ownership of performance. Not all items benefit from early procurement. Some truly are commodities, and can be purchased on a low cost basis.

Some, including the process automation, however, are key. Early selection of key technologies, and a partnership with a main automation vendor, for example, can reduce cost and schedule, and lower risk. In addition, it can help ensure a more profitable plant downstream. Source: The Construction Industry Institute, Reforming Supplier Relationships Research Team, Sept. 1998.

Reduce Risk • Lower Project Costs • Faster Start-up & Smoother Commissioning