Adoption of IOGP JIP33 Procurement Specifications for Capital Projects: Initial Implementation Anecdotes
Authors: Diewo D. , Lau C. , Tan Y. , Mahalil M. 
Published: February 2024

This paper presents the initial implementation anecdotes from Shell Malaysia Projects’ experience with IOGP JIP33 adoption. It summarises the implementation approach, key observations, challenges, conclusions, and suggested improvements for subsequent project adoption.

Shell Malaysia Projects’ implementation of JIP33 procurement specifications began in earnest in 2021, with the objective of standardizing and simplifying procurement, thereby enabling improvements in safety, quality, cost and schedule. Focused implementation began with capital projects involving new offshore platforms. JIP33 specifications were specified in the project Basis for Design (BfD), as part of the standards and requirements selection process. During Front End Engineering Design (FEED), procurement specifications were developed based on JIP33; these were then used as the basis for tendering of Engineering, Procurement and Construction (EPC) contractors and other Company-supplied equipment.

Key observations were: (1) JIP33 Supplementary Technical Requirements were incorporated into procurement packages, with additional requirements included where deemed necessary; (2) There was only partial application of JIP33 Quality Requirements (QRS) and Information Requirements (IRS); (3) Procurement specifications were produced in a legacy format, i.e. lengthy Technical Requisition Packages (TRPs) with duplicated content; (4) Initial feedback from the domestic market for some packages was not always aligned with expected benefits realization from JIP33. All observations concerning incomplete JIP33 adoption were subsequently addressed, resulting in a simplified document for procurement, renamed "IOGP JIP33 Procurement Packages". Challenges faced during implementation were both internal and external. Internally, a mindset shift (away from the "old" way of generating TRPs) was required. There was also unequal emphasis on the four core JIP33 elements, with insufficient focus on the QRS and IRS and how to implement them in ways that are consistent with existing quality and information management systems. The understanding that all four elements are equally important is key for JIP33 commoditization within the industry. Externally, the main challenge was vendor readiness for JIP33, with many contractors and suppliers not having had broad experience implementing JIP33.

The implementation experience showed that JIP33 is not clear for everyone and may be implemented differently by different parties. Implementation of JIP33 necessitates careful change management within the organisation, covering not just procedural changes, but also changes in the ways of working. It is recommended that change management focus areas are identified via thorough impact assessments. Additionally, "what good looks like" should be established early on to ensure that procurement specifications are developed in line with the intent of JIP33. To encourage suppliers to standardise and commoditize their products via JIP33 adoption, significant focus should be placed on deepening the understanding of IOGP JIP33 throughout the supply chain.