EPPM Is a Must-Have Capability as Global Energy and Power Industries Eye US$38 Trillion in New Investments
- by Melissa Centurio Lopes
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“The
process manufacturing industry is facing an unprecedented challenge: from now
until 2035, cumulative worldwide investments of US$38 trillion will be required
for drilling, power generation, and other energy projects,” Iain Graham,
director of energy and process manufacturing for Oracle’s Primavera, said in a
recent webcast. He adds that process manufacturing organizations such as oil
and gas, utilities, and chemicals must manage this level of investment in an
environment of constrained capital markets, erratic supply and demand, aging
infrastructure, heightened regulations, and declining global skills. In the
following interview, Graham explains how the right enterprise project portfolio
management (EPPM) technology can help the industry meet these imperatives. Q:
Why is EPPM so important for today’s process manufacturers? A: If the industry invests US$38
trillion without proper cost controls in place, a huge amount of resources will
be put at risk, especially when it comes to cost overruns that may occur in
large capital projects. Process manufacturing companies must not only control
costs, but also monitor all the various contractors that will be involved in
each project. If you’re not managing your own workers and all the
interdependencies among the different contractors, then you’ve got problems.
Q:
What else should process manufacturers look for? A: It’s also important that an EPPM
solution has the ability to manage more than just capital projects. For
example, it’s best to manage maintenance and capital projects in the same
system. Say you’re due to install a new transformer in a power station as part
of a capital project, but routine maintenance in that area of the facility is
scheduled for that morning. The lack of coordination could lead to unforeseen
delays. There are also IT considerations that impact capital projects, such as
adding servers and network cable for a control system in a power station. What
organizations need is a true EPPM system that’s not just for capital projects,
maintenance, or IT activities, but instead an enterprisewide solution that
provides visibility into all types of projects.
Read the complete Q&A here and discover the
practical framework for successfully managing this massive capital spending.
