Models, Methods, & Data Behind Industry

Leading Cost Estimation Software

An Overview of Aspen Capital Cost Estimator
May 24th, 2016

Todays Presenters

Shelby Hegy, Product Marketing

Josh Glagola, Product Manager

2016 Aspen Technology, Inc. All rights reserved.

Agenda
Overview of Aspen Economic Evaluation
Volumetric Models
Cost Data Sources, Update Frequency
Customizing & Calibrating ACCE
Case Studies
Q&A

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Economic Evaluation Model-based Solutions

Employ consistent basis for capital funding decisions

Improve estimating efficiency
Reduce estimate variability
Rapidly evaluate impact of location and size
Handle scope and size of largest mega projects

Model-based Economic Evaluation

products develop estimates for
making business decisions earlier

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Best Practice: Common Cost Model Manage Change throughout Lifecycle

in Economic Evaluation Management

Conceptual
Design

Basic
Engineering

Detailed
Engineering

Construction/
Start-up

Activated Economics
Aspen Process
Aspen Capital
Economic
Cost Estimator
Analyzer
One Common Cost Model and Software Platform

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Operations/
Maintenance/
Retrofit

In-plant
Cost
Estimator

The Aspen Economic Evaluation Suite

Aspen Process
Economic Analyzer

Aspen In-Plant Cost

Estimator (formerly IPM)

Aspen Capital Cost Estimator

(formerly Kbase)

All Leverage the ICARUS Technology for a Common Cost Basis, Methodology
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Overview of Volumetric Models

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Why Volumetric Models?

Traditional Methods Provide Costs
vs.
Sized
Equipment
List

Equipment
Cost

Volumetric Models Provide Costs and quantities

Gain greater insight into your estimates
TIC Estimate

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Better communication between:

Process and Estimating

Estimating and Engineering Disciplines

Estimators and Management

Owners and EPCs

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How do Volumetric Models Work?

Equipment List
Estimating Judgement

Installation Methods, Indirects,

Equipment Rental Requirements

Equipment
Fabrication

Process
Information
Conceptual
Equipment
Design

Remaining
Scope

Install
Equipment

Mechanical
Engineering Models
Fabrication Methods,
Man-hours Data

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TIC Estimate

How do Volumetric Models Work:

Obtaining a Conceptual Equipment Design

API 610 Pump

Horizontal Drum

Specification Requirement: Flow Rate

Specification Requirements: Capacity or

Dimensions

Specification Options:
Installation Option, Casing Material, Design
Pressure, Design Temperature, Pump
Efficiency, Fluid Viscosity,

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Specification Options:
Application, Installation Option, Shell
Material, Design Pressure, Design
Temperature, Manhole Information,

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How do Volumetric Models Work:

Obtaining a Conceptual Equipment Design Example of a Column
ACCE Considers:

ACCE Provides:

Design Standards:

Material Thicknesses

ASME

DIN

BS5500

Nozzles

EN 13445

Tower Heads

GB 150

JIS

Equipment Weights

Wind or Seismic Design Considerations

Shop Fabrication Limitations
Weld Efficiency

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How do Volumetric Models Work?

Simulate fabrication process, calculate cost and quantities for each step
Fabricate and install heads
Fabricate shell
Number of plates
Plate cost
Weld length

Add nozzles

Stress relief

Weld prep time

Welding time
Markup

Consumables
Welding cost
.
Fabricate skirt
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How do Volumetric Models Work?

Calculate cost and quantities for each step of the construction process
Add lighting and grounding

Size lines

Fabricate and install piping

Procure and install

instrumentation

Set materials of construction

Pipe lengths

Fabrication cost

Calculate fittings

Install platforms and ladders

Scaffolding

Paint vessel and

piping

Installation labor
Design and build foundation
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Insulate vessel
and piping

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How do Volumetric Models Work?

Piping and instrumentation from Volumetric P&IDs

Large library based on industry best practice or add your own

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15:42

Models capture complex relationships between cost drivers

Operating
conditions

Materials of
construction

Size

Site
conditions
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Models create detailed breakdown of bulk quantities and

labor

For this one column: 166 line items for piping, over 600 in total
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Estimate Evolves As New Data Becomes Available

Bid
Equipment list

Build
Estimate

Evaluate

Review
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Basic
Engineering

FEED

Conceptual
equipment design

Detailed equipment
design

Site conditions

Layout

Refine

Evaluate

Refine

Review
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Evaluate

Review

Detailed
Engineering
Material take-offs

Refine

Evaluate

Review

Design change: Models quickly and accurately update estimate

Example: Process engineer removes column from equipment list
Column removed
x

Lighting and grounding materials

and labor removed

Platforms and ladders materials

and labor removed
All bulks and labor associated with column:

Piping fabrication and

installation removed

Found automatically
x

Instrumentation procurement and

Removed automaticallyinstallation removed

x

Insulation materials
and labor removed

Painting materials
and labor removed

Foundation design and

construction removed
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Model-based Estimating Improves Estimating Performance in

Early Estimates
Increase precision; reduce variance
Good estimates enable aggressive
bids and reduce company risk

Faster
Early bids win

Model-based estimating is unique to AspenTech

employs engineer-in-a-box knowledge

Less effort
Remove business bottlenecks from
lack of skilled estimators

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Visibility and transparency

Easier estimate reviews. Guide
project execution strategy

Ensure Maximum Return on Capital Employed (ROIC)

Increase Estimating Efficiency, Productivity
Quickly Evaluate Multiple Project Locations
Easily Determine the Cost Optimized Capacity
Compare & Evaluate More Process Designs
Spend more time thinking about project scope; less time
ensuring spreadsheets add up

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Ensure Maximum Return on Capital Employed (ROIC)

Reduce Estimate Variability
Standardize the Cost Basis Used for Estimates
Leverage Historical Project Data in a Consistent Manner
Ensure Consistent, Repeatable Estimating Methodology
Standardize Reporting Practices

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Ensure Maximum Return on Capital Employed (ROIC)

Reduce Risk, Especially in Early Conceptual Estimates
Reduction in Estimate Variability Reduces Risk
Generate Quantity Based Estimates Earlier
Easily compare scope, quantities, & unit rates of contractor bids

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Improve Bidding in a Competitive Market

Proposals and Bidding

Reduce Estimating Man-Hours, Time to Bid

Minimize the Cost of Bidding
Evaluate More Project Execution Strategies, Process Designs
Bid Outside of Normal Market with Built in Cost Data
Strategically, we need better work processes for efficient
project execution on large projects. Ziad Khoury, Global IT
Director, Petrofac

Faster Bidding, Ability to Optimize Project Bids offer EPCs Competitive Advantages

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Reduce Company Risk, Especially on Lump Sum Bids

Proposals and Bidding

Better, Quantity Based Estimates, Much Earlier

Project Risk

Ensure Consistency among Estimating Groups

More Focus on Capturing Scope, Less on Spreadsheets

EPCs in Todays Market are Taking on More Risk by Bidding Lump Sum
A Better Estimating Methodology Reduces Risk

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Deliver More Value to Clients

Proposals and Bidding

Respond to Client Change Requests Rapidly to Help them

Make Better, Faster Decisions

Project Risk
Increase EPC Value

Evaluate More Project Scenarios to Ensure Owner Maximizes

Return on Capital Employed

Provide More Value to Your Clients

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Where Does the Cost Data Come From?

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Overview of ACCE Pricing

Sources:
Public Sources: RS Means, Richardsons Cost Data Online
Private Sources: pricing data from user companies

Cost Basis Updates:

Updated annually at the end of each calendar year
Costing update represents Q1 pricing
Delivered via a new version of ACCE
Free

Accuracy:
Use out of the box or index based on company or client experience
ACCE is utilized on AACE Class IV through Class II estimates
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What Aspects of ACCE Can be Customized?

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What Can be Customized in ACCE

Models:

Equipment Models and P&IDs for Specialized Equipment

Equipment Sizing Specifications

Bulks for piping, steel, civil, insulation, instrumentation

In-directs

Pricing & Cost Data:

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Material pricing

Index based on Code of Account

Modify Unit Rates

Cost per unit OR cost per weight

Man-hours

Labor rates, productivities

Reports

2016 Aspen Technology, Inc. All rights reserved.

Case Studies

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Customer Testimonials
Engineering/ Construction

Energy

$30B
SADARA Megaproject estimated
in 3 months instead of one year;
90% complete and on-budget.
Dow, KBR, SADARA

Chemicals

Reduction in estimating manhours using ACCE versus

traditional methods
S&B Engineering

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Accuracy on Class II
estimates on over 10 projects.
PEMEX

Customer Testimonials
Engineering/ Construction

Energy

$9M
Error avoided using ACCE to
evaluate process alternatives
under severe schedule
constraints

Chemicals

The estimating capacity using

ACCE versus traditional methods,
with the same workforce

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Less variability in estimates,

from 35 to 12%.

Customer Testimonials
Engineering/ Construction

Energy

50%
Reduction in man-hours
required for conceptual
estimates
Technip

Chemicals

Reduction in estimating man-hours

for lump sum estimates using ACCE
versus traditional methods
Linde Engineering

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Tool to develop Unclassified

through Class II estimates
ThyssenKrupp

A Complete Estimating Solution

is more than just a software package
Share Best Practices & Influence Product Direction
Optimize 2017, Contributing Cost Data, Customer Advisory Groups

Classroom Training
AspenTech training plus training partners WRE & SES

On-site Awareness Sessions

Aspen Global Business Consulting Team; SES

Self-Service Educational Resources

Live and Recorded Webinars, Online Training, Jump-Start Guides, Tutorials

Validation, Calibration, Implementation Services & Peak-load Estimating

Strategic Estimating Systems; ecosystem of consultants

Stakeholder (Project Directors, Executives, Disciplines)

Education of the Value in Corporate Risk Reduction (Executive events, White Papers

Aspen Capital Cost Estimator (ACCE)

Industry-Leading Software System

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Summary
Aspen Capital Cost Estimator is a trusted tool
for cost estimation utilized worldwide for AACE
Class IV through Class II Estimates
ACCE leverages powerful volumetric models
that enable faster, more accurate estimating
ACCE can be utilized on projects located
worldwide, with cost data for 89 locations built in
ACCE is extremely customizable to meet your
companys needs, and reflect your engineering
know how and historical cost data
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Want to see similar results?

Consider a training class from AspenTech
View Courses and register for Classes on our Training Website

Training website - http://training.aspentech.com

Email us: [email protected]
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Training Courses Available

Full Curriculum to Meet Your Needs Can be Scheduled Upon Request
Course ID

Course Name

Course Agenda and Schedule

EEE1011

Introduction to Aspen Capital Cost Estimator

https://training.aspentech.com/courseinfo.asp?course=eee1011

EEE102

Introduction to Aspen Process Economic Analyzer

https://training.aspentech.com/courseinfo.asp?course=eee102

EEE201

Aspen Capital Cost Estimator: Advanced Topics

https://training.aspentech.com/courseinfo.asp?course=eee201

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Upcoming Webinars & On-Demand Content

Register at

http://www.aspentech.com/events
/webseminars.cfm

For More Information

[email protected] (English Markets)
[email protected] (Greater China)
[email protected] (Japan )
[email protected] (Korea)
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On-Demand Webinar
http://www.aspentech.com/eve
nts/ondemand_webinar.cfm

Q&A
Shelby Hegy
[email protected]
Manil Salgadoe
[email protected]
Request a Demo
http://www.aspentech.com/ACCE_
RequestADemo/

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Thank You

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innovative growth company