# Presentation: 534095

## STEP Deploymentin theProcess  and Power Industries 

**STEP Deployment****in the****Process  and Power Industries **

**by Hans Teijgeler - Fluor Daniel - The Netherlands**

**Notes:**
The objective of this presentation is to:
Explain how the international STEP community for the Process industires is organized
Explain what is required for an national STEP implementation program based on a Dutch example
This presentation is part of a suite of PIEBASE presentations available to inform companies about the international standardization activities, like ISO/STEP, for exchange and sharing of information in the Process Industries.

## The Virtual Enterprise

**The Virtual Enterprise is defined as a :**
**tightly integrated**
**loosely coupled**** entity**
**comprised of an ****ever-changing group of partners**
**focused on delivering the ****best product**** to the end customer**

## Tightly Integrated

***Supply Chain Management***

***Information Chain Management***

**Notes:**
Work processes executed by our Virtual Enterprise require materials and information, and produce materials and information. 
Being "tightly integrated" means that the streams of materials and information are well-managed. 
For materials we see a strong trend to Supply Chain Management.
For our business there does not yet exist some kind of Information Chain Management.

## Loosely Coupled

**Loosely Coupled**

**interchangeable partners, no tool barriers**
**DON’T BE THE MISSING LINK!!!**

**EXIT**

**WELCOME**

**proprietary in-/**
**output format**

**Notes:**
Business Partners can find their place in any Virtual Enterprise, but only if they perform the best in terms of cost, schedule, and quality.

Artificial barriers caused by incompatible information streams must be avoided, because they hinder the formation of agile Virtual Enterprises.

## Ever-changing Group of Partners

**Notes:**
Most plant owner/operators, all EPC contractors, and all suppliers are involved in joint activities with many business partners spread all over the globe.
The composition of such groupings often is project-related. In most cases one company is involved in many Virtual Enterprises.

## The Exchange Problem

**Notes:**
Each program file and each document in fact is some kind of language, with its own grammar, syntax, and semantics. Like speaking two different languages during a phone conversation, this poses an information exchange problem.
Just sending documents, even in some electronic format, does not solve this exchange problem, because the information on it cannot be understood by the computer programs used by the recipients of those documents. So, human interpretation and subsequent rekeying is required, which is time consuming and error-prone.
Studies have revealed that information workers may waste upto 50% of their time in just handling information (“where is it, what is its status, why is there redundant and conflicting information, what does it mean, etc).
Our VE being "comprised of an ever-changing group of partners" has as a practical consequence that it is impossible to dictate any standard application programs, other than perhaps word processing software. So we have to standardize the information streams. Right now there is a total lack of standardization of the interchanged information flows.

## The Exchange Problem

**Notes:**
Even when the Plant Owner/Operator receives information is a format that suits the software he uses at that time, how useful will that data be when the next revamp has to be done after ten years? Is that software still there, and if so, through how many upgrade conversions did the data have to go?

## The role of STEP

**STEP (STandard for the Exhange of Product model data), **
**the working name for ISO 10303, allows industry groups **
**standardize their data exchange.**
**STEP standards are independent of any:**
**hardware**
**operating system**
**Contentwise they are controlled by the pertaining industry**

**Notes:**
This is where STEP (and SGML) can, and will, play an important and unchallenged role, in that it provides an (ISO-)standard exchange language, with standardized syntax, grammar, and dictionary.

Note:SGML (ISO 8879) is for text what STEP is for data. 
HTML, as used for Web browsers, is a subset of SGML.

## The role of STEP

**For the Process Industries a number of APs  are**
**nearing completion:**
**AP212 - Electrotechnical**
**AP221 - Plant System Design & Hardware Specs**
**AP225 - Buildings**
**AP227 - 3D Models & Piping Design**
**AP230 - Structural Steel (just started)**
**AP231 - Process Design**

## International Organization

**Notes:**
This organizational structure gives an impression of how the issue has been addressed worldwide. 

First of all the STEP standards are being developed under the ISO umbrella. In order to make sure that priorities for the Process Industries are set correctly and STEP standardization activities are executed in a coordinated manner PIEBASE was founded.

To state its vision, mission and objectives PIEBASE has written a MOUAC. This MOUAC has been signed by a large group of companies in the Process Industries worldwide basicly stating they support the development and use of the ISO/STEP standards. Examples of the companies involved are:
Plant Owners like DuPont, Shell, Merck, Akzo Nobel
EPC Contractors like Fluor Daniel, ABB Lummus Global, Raytheon, 
Suppliers like Honeywell 

PIEBASE has organized itself in three regions: America’s, Europe and Asia/Oceania, where all regions consist of one or more consortia from countries within the region. Every region is represented in the PIEBASE Executive committee via Senior Executives of companies from the region.

## AP Development Coordination

**Based on an ****Enterprise Activity Model**** for the **
**entire process industry, ****PIEBASE**** will coordinate **
**all future AP Developments for the Process Industry**
**Japan indicated that they may wish to develop APs  for:**
**Plant Operations**
**Plant Maintenance**
**Plant Performance Analysis**

**Notes:**
Internationally the development of APs is coordinated by PIEBASE, the global 
Process Industries Executive for achieving Business Advantage from using Standards for the Exchange of information. 

On the basis of an all-inclusive PIEBASE Activity Model for the process industries the planning of further AP development is done. Japan, for example, intends to develop APs for Operations and Maintenance.

## Data Integration

**Data Integration**

**Each data exchange is covering:**
**a small subset of all information about a plant **
**only valid at the time of creation of the exchange file (‘snapshot’)**
**For application-to-application exchange that is fine.**
**But we also need to be able to store it as a piece of **
**a jigsaw puzzle into the total set of ****lifetime**** plant data:**
**data integration**

**Notes:**
A further development is that, next to data exchange, the need for data integration and lifetime storage and retrieval is being felt. 

This has resulted in an initiative by a Norwegian offshore project, called POSC/CAESAR, to start the development of an ISO standard for that.  This is being supported by PISTEP (UK) and USPI-NL (The Netherlands).

## Data Integration

**Data Integration in standard format will enable:**
**achieving superior ****data quality**** (the Four ****C****’s:**
**Completeness**
**Correctness**
**Consistency**
**Conciseness**
**far better use of ****Expert Systems**
**storage of**** lifetime data**** that, in turn, enables:**
**data sharing**** in a ****Global**** ****Virtual Enterprise**
**audit trail**** (e.g. for SHE or OSHA laws)**
**analysis ****for decision support**

**Notes:**
Data Integration will enable the industry to build and deploy so-called Plant Data Warehouses, where all lifetime data about a plant can be stored in an integrated and consistent manner. 

The ROI of setting up, and maintaining (!), such PDW’s can be orders of magnitude higher than the investments.

## Early PDW Implementations

**In Europe there is a growing number of early**
**PDW implementations, such as:**
**ETAP**** (North Sea Offshore, BP, Shell, B&R)**
**Shearwater**** (North Sea Offshore, Shell, B&R)**
**GE Plastics**** - The Netherlands**
**VAV**** (3 new platforms in Norway, POSC/CAESAR)**
**Oman LNG**** (Shell, FW)**

**Notes:**
Despite the fact that the STEP standards are not yet final, the industry in Europe started implementing PDW’s, because of this large POI potential.

## Data Exchange & Integration

**Notes:**
Any PDW will have interfaces that comply with all relevant APs, allowing exporting information to be sent to, and importing and integrating information being received from, business partners.

Ideally such imports and exports are unattended operations. This poses some challenges to the builders of such warehouses.

## STEP Implementationin The Netherlands - Target

**By the year ****2003**** we must have achieved that:**
**60%**** of the Process and Power Industry-related companies ****use STEP**** standards for exchange of product data**
**another ****30%**** ****has a strategy**** for implementing STEP- based standards**
**the leading ****Software**** companies and ****Management Consultancy**** firms are ****STEP certified**
**Training Institutes**** have included STEP in their ****curricula**

**Notes:**
Implementing STEP on an industry-wide basis is a large undertaking. 

Even in the relatively small Netherlands the number of “Process and Power Industry-related companies” is approx. 1,500. 

Over these next five years the cumulative investment, for all involved companies together, is between $100MM and $500MM. In average this is, per company, roughly between $20,000 and $100,000 per year.

## STEP Implementationin The Netherlands

**Working together in USPI-NL:**
**VNCI**** - ****Association of Chemical Industries**
**all major**** ****EPC Contractors**** ****operating in The Netherlands**
**FME**** - ****Federation Metal & Electrotechnical Industries**
**Het Instrument**** - ****Association of Instrument Suppliers**
**ConMech ****- ****Association of Mechanical Contractors**
**NAP/DACE ****- ****Assn of Equipment Builders for the Process Industries**
**In this implementation we also involve the Dutch:**
**Software Industry **
**Management Consultancy firms**
**Training Institutes (including universities)**

**Notes:**
All this will not come to us from some benevolent source.  

It will require the commitment of all business partners involved in the Process Industries, and the resources to deploy the needed level of IT interface standardization and implementation.

The Dutch approach is to seek participation of the so-called business organizations, in which companies operating in a certain line of business have already organized themselves. By doing this it is possible to bundle their resource to quite a formidable critical mass. 

USPI-NL is able to reach a large set of companies by tapping the existing infrastructure of these organizations.

The last three groups of companies are essential for the success of the entire operation, in that they provide the proper services. It was felt better not to open up USPI-NL membership for them, in order to avoid conflicts of interest. USPI-NL represents the ‘demand side’, this group the ‘supply side’.

In The Netherlands this is starting to take shape. We have become a legal entity, and have been setting up the Framework for our collaboration.

In the UK and in Norway lots of activities in this realm are being deployed as well. In the UK under the auspicies of PISTEP, in Norway by the POSC/CAESAR Project.

## National (Dutch) Organization

**Projects ****under**
**USPI-NL umbrella**

**Projects ****under**
**USPI-NL umbrella**

**National (Dutch) Organization**

**Vereniging USPI-NL**
**(association)**

**Stichting USPI-NL**
**(Foundation) -**
**Project office**

**Plant Owners**
**EPC Contractors**
**Suppliers**

**Projects ****under**
**USPI-NL umbrella**

**Software Suppliers/**
**Consultants/Training Institutes**

**Notes:**
This picture tries shows the (simplified) organizational structure of USPI-NL (the ‘U’ stands for ‘Uitgebreid’ = ‘Extended’). 
The big red box on the top is an association where all companies, being part of the Dutch process and power industries and interested in the ISO/STEP standards may become a member of. These members execute a whole range of projects related to the STEP implementation.

To support these projects, general activities like the awareness program and support of the Association and its projects will be supported by a Project Office. 

In order to give this a proper financial and legal structure a Foundation has been formed. This Foundation formally runs the project office with a number of full- and part-time professionals. 

In order to keep this organization running the USPI-NL members pay an annual fee, ranging from $500 to $10,000 (depending on head count). In addition to that other parties, like the Dutch Government will support the activities.

The results of the Projects will be available to other non-participating members, although a grace period may be deemed necessary.

## STEP Implementationin The Netherlands

**The Dutch Government supports this, **
**because they are convinced that early **
**adoption of STEP will improve the**** **
**competitiveness of the Dutch industries**

**STEP Implementation****in The Netherlands**

**Notes:**
To the Dutch Government this operation is a key subject, which has high-level attention in the Ministry of Economical Affairs.
Any subsidy by the Dutch Government is subject to European Union rules. But money alone is not required. Having the blessing of the government helps in opening doors.

## STEP Implementationin The Netherlands

**All companies will go through the following stages:**
**Build Awareness**
**Provide Training**
**Carry out pilot studies**
**Deploy software based on ISO/STEP standards**
**Improve application of ISO/STEP**

**Notes:**
This is the usual set of main activities to get from ignorance to literacy.

## STEP Implementationin The Netherlands - Framework

**The following activities support this:**
**Set up ****organization**** and ****communications**
**Provide ****info**** via ****PR**** and ****Awareness Program**
**Share and consolidate ****ISO/STEP knowledge**
**Mature the standards**
**Execute ****Research projects**
**Execute ****Pilot and Implementation projects**** **
**Influence**** Software, Management Consultancy and Training firms**

**Notes:**
The following set of supporting activities has been defined. 
These should enable individual companies to gain the required information that helps them to implement ISO/STEP standards in their business processes.

The awareness program will wake and hopefully start them up. It is than essential to ensure that knowledge build up is consolidated and being shared. This will limit reinventing the wheel (preferably with a slightly altered shape).

Of course further work is required to complete the suite of standards. Also new areas of application need to be studied further. Companies should be encouraged to start implementation projects as part of their normal projects. Again joining forces is highly to be recommended. 
Last but not least the companies supplying industry with supporting products also need to be activated.

All these activities need a good organization, infrastructure and communication. In the Netherlands a new structure has been defined to support/facilitate this.

## STEP as Enabler

**Together with the emerging technolgies like:**
**Internet/Intranet/Extranet**
**Web Browsers**
**Java**
**CORBA ****(Common Object Request Broker Architecture)**
**NC/NetPC/etc**
**STEP provides the missing link by standardizing the **
**interchanged information**
**This will enable a transforming and empowering set of **
**IT tools for the successful, globally operating**
_***Virtual Enterprise***_

**Notes:**
In parallel with implementing STEP we should avoid new problems related to the question how we move STEP data through our Virtual Enterprises (and within our company as well !).

In this day and age the use of Internet will not be much disputed, be it that improvements in performance and security still must be made.

That still leaves the question how we will use that Internet, e.g.:
files attached to e-mail messages
FTP
via IIOP (Internet Inter-ORB Protocol) (ORB = Object Request Broker)
other

Within PIEBASE we will have to address subjects like this, in order to avoid the next level of chaos.

Once we have properly addressed and solved this, our Virtual Enterprises can become very flexible and powerful.