"Automation helps EPC companies to focus on construction execution and related supply chain at an earlier stage, thus compressing timelines and costs. Reduction of manual iterations and inter-department workflow also reduces the chances of errors."
AK Tyagi, CMD, Nuberg Engineering Limited.
EPC&I June 2021
EPC-LSTK is the process that
creates industries and infrastructure – it is the core of core industries; and for years, innovations in the sector were incremental compared to 50-70 percent productivity growth for the overall economy, as per McKinsey.
However, digitisation and digital
transformation is fast revolutionising
the industry. Automation, AI, Big Data
are serious measures creating allround
cost efficiencies in the Engineering
and Design phases along with radical
downstream improvements in the
Procurement and Construction phase.
The earlier inertia around capital cost
has now turned in to investment for
competitive edge and survival.
According to consulting firm
Deloitte, more investments will be
made in digital technology for better
collaboration and more data-driven
decision-making. Engineering even
simple equipment can require the capture
of as many as 15-20 data-points in
different formats and recording systems,
as we move from the drawing
board to installation completion. This
gets multiplied exponentially for the
complete plant.
A problem in any of the data points
can portend a cascading issue and
result in delays and losses. Digitisation
is helping the EPC industry streamline
this whole process and reduce the multiplicity
and diversity in the system.
Adoption of cloud technologies is
enabling better access to engineering
resources spread geographically. Digital
tools for EPC Progress Monitoring,
Equipment Management, Document
Management, Construction Compliance,
EPC Reporting and Insights are
helping reduce downtimes and compliance
lapses. Big Data is helping in
smarter design and, coupled with IoTenabled
monitoring and maintenance,
it is aiding inspections with the ability
to point towards possible problem
areas.
Automated parametric design and
object libraries are improving the
design process. Machine learning and
cognitive computing will help streamline
the procurement process with better
matching of demand and supply of
construction material and plant equipment.
To streamline construction,
technologies like digital twins, autonomous
rovers, and drones will have even
wider adoption.
AI-driven intelligent automation
is helping in developing detailed initial
design that is more than 95 per
cent fit as the final design. It is, thus,
enabling real world estimation of
requirement of engineering resources, material, and labour. 
Such automation also helps the
EPC companies to focus on construction
execution and related supply
chain at an earlier stage, thus compressing
timelines and costs. Reduction
of manual iterations and interdepartment
workflow also reduces the
chances of errors.
Automation includes Open API for
integration of in-house document
management and configuration systems,
etc., close, bi-directional integration
of leading 3-D systems for
mechanical design, and integration of
the design systems of different control
engineering suppliers.
According to ISG, "Robotic process
automation (RPA) has the potential to
streamline business operations for
EPC organizations in a big way. The
potential to improve business processes
with RPA is dramatic given the
complex engineering design work,
large-scale planning for procurement,
and micro-management and scheduling
for on-site activities for EPC organizations.
RPA software bots can perform
high-volume, repeatable tasks
previously done by a human offering a
significant opportunity to streamline
and improve the efficiency of EPC
work tasks."
AR and VR are enabling the
upskilling of talent as these new areas
of EPC require extensive upgradation
of processes and people in the EPC
industry. Extensive retraining and reskilling
initiatives will need to be
adopted to retain and keep viable the
existing experienced engineering talent
because people are the real brain
and backbone of the industry. 
This becomes especially relevant as
India is on the verge of enormous
demand for EPC in the next few years.
Investment of 8.0-lakh-crore is anticipated
in the Indian chemicals and
petrochemicals industry by 2025.
'Make in India' across sectors, and
India's increased defence self-sufficiency
needs will also create urgency
for corresponding chemicals infrastructure.
To promote energy-efficient and
environment-friendly hydrogen vehicles,
the National Hydrogen Energy Mission
is being launched. CRISIL has already
projected higher growth of 15 per cent
for mid-sized EPC players this fiscal.
Even in this rising wave, the larger
chunk of the opportunities will be captured
by the most digitally nimble.
EPC organisations who have
embarked on this path of digital transformation
are already seeing results in
their productivity, quality, margins
and, most importantly, in their ability
to win projects.
Nuberg EPC are well underway in their quest for digital induced competitive advantage to build on their legacy of 25 years and their benchmarkable global experience of operating in more than 32+ countries.
© This article was first published in EPC&I, June 2021.
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