Industry News – Cubility

How are Mining and Oil and Gas companies Digitally Transforming their Operations to Improve Productivity, and Increase Efficiency?

Jeremy Sims — Thu, 27 Dec 2018 01:10:17 +0000

Industries are embracing technology to reshape their operating landscape and reap the benefits of improved productivity, higher efficiency, and increased cost savings.

Report originally published by Deloitte

The oil and gas industry is not a stranger to this and is progressing towards digital maturity. What may be the potential roadblocks and how can these be overcome? A strategic roadmap could help oil and gas companies to assess every operation and identify digital leaps for achieving specific business objectives.

This paper describes Deloitte’s Digital Operations Transformation (DOT) model; a framework that explains the digital journey of 10 milestones, where the leap from one milestone to another marks the achievement of specific business objectives and puts cybersecurity and digital traits at the core.

Download the From Bytes to Barrels: The Digital Transformation in Upstream Oil and Gas report from our Resources page here.

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Cubility is a management and technology consultancy that works with businesses to solve operational problems, improve compliance, and manage change well. Our multi-disciplined team is equipped with the technical and operational knowledge as well as project execution skills to ensure the success of any project. If your business needs assistance, please get in touch with us. We would love to hear from you.

Operational Readiness in Oil & Gas projects: What should this look like?

Jeremy Sims — Wed, 12 Dec 2018 00:38:26 +0000

Projects in all industries undergo a life cycle comprising of Establish, Execute and Complete.

Projects in oil and gas industry, typically, have longish timelines and, therefore, the project phases are spread over longer periods of time. They require detailed working such as basic engineering, detailed engineering, various levels of project cost estimates and plans depending on project phase.

Article originally published by Aneeza Qazi on LinkedIn

Oil and gas industry projects break down the Establish, Execute and Complete into further steps such as Identify, Assess, Select, Define and Execute phases. As the project progresses from initial assessment phase to front end design level, the need for it to be suited and ready for smooth operation also arises. Therefore, the requirement of Operations Readiness has been realised and incorporated in project design and development process. A project cannot be implemented and designed to fulfil the requirement unless the end user i.e. Operations is also involved and satisfied. Moreover, considering the typical curve of theoretical risk mitigation costs vs project phases (as shown in the figure), the earlier operations readiness is incorporated in the project, lesser would be the costs of risk mitigation.

For the projects with significant budget, it is relatively easier to rope in Operations involvement from the initial phases of the project. Often, appropriately experienced resources from Operations are loaned for the purpose of the project and assigned to work as part of the project team. They may be in direct reporting to the project manager but are often independent to ensure a check and balance function on the project and are reporting to the project owner.

For smaller projects, it hardly makes economic sense to have an independent source for operations readiness. Moreover, for smaller projects, usually the importance of operations readiness is under estimated. If at all, a resource from Operations is assigned to carry out the operations readiness work. This is not prudent on two accounts. For one thing, people involved in day to day running of plants are usually on rotation. Their primary responsibility is to safely and smoothly operate the plant. The nature of their work and their shift-based timing make it difficult to respond to the project requirements.

Secondly, Operations Readiness requires specific expertise which is not necessarily present in every Operations personnel. In situations like these, the operations readiness work is left at the hands of project management team who tries to fulfil the role. This can be detrimental to the project as an independent view and specific expertise is needed to deliver a project that fulfils operational requirements and is ready to start without hiccups.

For small projects, while it does not make economic sense to have a dedicated operations readiness resource for the project, it does make sense to have an operation readiness function in the organization. In a matrix structure, that function can then work on multiple projects whenever operation readiness role is required.

In some organisations where the importance and need for operations readiness is well established, this practice is adopted. In an organisation which does not see the need for operation readiness for smaller projects, as a project manager, in order to convince the project sponsor, it would make sense to quantify the life cycle phases vs risk mitigation costs and demonstrate the benefit for having operation readiness resource early in the project.

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Developing a Mining Project? Here’s your Operational Readiness Road Map

Jeremy Sims — Wed, 05 Dec 2018 02:06:49 +0000

“Operational readiness is defined as all of the operating and maintenance activities associated with start-up; those activities other than the engineering, design, development, and construction of the mine and plant.”

Download the If you are Planning on Developing a New Mining Project, you Need an Operations Readiness ‘Road Map’ report from our Resources page here

Report originally published by Performance Associates International

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What is Operational Readiness and why does it matter?

Jeremy Sims — Tue, 06 Nov 2018 02:00:16 +0000

Originally published by Advisian

Operational readiness processes assists with the project planning and preparedness for day one of operations. This can pay dividends when everything operates to schedule and no problems arise.

After completing a major project, the start of operations involves a wide-range of pre-operational activities that need to be completed in a timely manner, by a number of different parties. These parties include the project delivery team, the operator and other parties interested in ensuring a safe and reliable operation, all working in close consultation with the design and construction activities of the project works. Some of these activities have long lead times, and are critical to the successful start and on-going operation of the asset.

At the operational level (and technically speaking) ‘Operational Readiness’ can be defined as:

Delivery, commissioning and handover of the new infrastructure; appointment, preparation and training of personnel for operating and maintaining the infrastructure; and achieving the required regulatory approvals to operate and maintain the infrastructure to achieve the desired outcome.

The operational readiness process is generally operator led and does not include the final construction and sub-system commissioning of works which is to be undertaken by the contractor. Overall system test and pre-commissioning activities by the contractor are usually wrapped up into an overall suite of final operational readiness activities.

A typical timeline for operational readiness is shown below:

Operational readiness typically begins as a project planning function early in the project lifecycle, and continues through to when the project becomes operational. Completion of operational readiness activities will usually be progressive and may also be staged along with project delivery as work packages, or sub-elements of work packages, are completed.

Many operational readiness tasks, specifically those relating to technical commissioning, may be listed on a Contractors Test and Commissioning event program. Test and commissioning activities may typically include the following items:

Factory acceptance testing
Site acceptance testing
System integration testing
Network integration testing
Construction certifications
Final As Built witnessing.

More operational and outcome-focused activities can be wrapped up in a form of ‘Transition Management Plan’. Issues that will generally need to be addressed in the transition include:

Final inspections of completed installations
New staffing to support the new operation
- User testing and commissioning of critical control and operational systems
- Finalisation of the ongoing Asset Management System, including contracts for supply and maintenance
- Delivery of training packages for all staff
- Formal acceptance of all externally managed works from contractors into the operator control
- Transfer of incomplete outstanding issues into an appropriate Defects Management System for ongoing monitoring and close out by the operator

Collectively, this suite of documents represents the formal process of operational readiness to assist in the planning of projects and preparedness for day one operations.

Many hands make light work in this space, and the final few days are usually accompanied by seemingly last minute, but usually planned, activity – including planning for the event itself.

When the big day arrives

Day one of operations is usually a mix of emotions ranging from relief to high anxiety. Years of effort are now on full show – for all to enjoy and appreciate. The detailed planning from the formal process of operational readiness pays dividends when everything happens seamlessly, all operates to schedule and no problems arise.

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What is Industry 4.0? Here’s an easy to follow summary

Jeremy Sims — Fri, 12 Oct 2018 07:32:02 +0000

A quick summary of Industry 4.0 courtesy of Forbes.

We’re in the midst of a significant transformation regarding the way we produce products thanks to the digitization of manufacturing. This transition is so compelling that it is being called Industry 4.0 to represent the fourth revolution that has occurred in manufacturing. From the first industrial revolution (mechanization through water and steam power) to the mass production and assembly lines using electricity in the second, the fourth industrial revolution will take what was started in the third with the adoption of computers and automation and enhance it with smart and autonomous systems fueled by data and machine learning.

Even though some dismiss Industry 4.0 as merely a marketing buzzword, shifts are happening in manufacturing that deserves our attention.

Industry 4.0 optimizes the computerization of Industry 3.0

When computers were introduced in Industry 3.0, it was disruptive thanks to the addition of an entirely new technology. Now, and into the future as Industry 4.0 unfolds, computers are connected and communicate with one another to ultimately make decisions without human involvement. A combination of cyber-physical systems, the Internet of Things and the Internet of Systems make Industry 4.0 possible and the smart factory a reality. As a result of the support of smart machines that keep getting smarter as they get access to more data, our factories will become more efficient and productive and less wasteful. Ultimately, it’s the network of these machines that are digitally connected with one another and create and share information that results in the true power of Industry 4.0.

Industry 4.0 applications today

While many organizations might still be in denial about how Industry 4.0 could impact their business or struggling to find the talent or knowledge to know how to best adopt it for their unique use cases, several others are implementing changes today and preparing for a future where smart machines improve their business. Here are just a few of the possible applications:

Identify opportunities: Since connected machines collect a tremendous volume of data that can inform maintenance, performance and other issues, as well as analyze that data to identify patterns and insights that would be impossible for a human to do in a reasonable timeframe, Industry 4.0 offers the opportunity for manufacturers to optimize their operations quickly and efficiently by knowing what needs attention. By using the data from sensors in its equipment, an African gold mine identified a problem with the oxygen levels during leaching. Once fixed, they were able to increase their yield by 3.7%, which saved them $20 million annually.

Optimize logistics and supply chains: A connected supply chain can adjust and accommodate when new information is presented. If a weather delay ties up a shipment, a connected system can proactively adjust to that reality and modify manufacturing priorities.

Autonomous equipment and vehicles: There are shipping yards that are leveraging autonomous cranes and trucks to streamline operations as they accept shipping containers from the ships.

Robots: Once only possible for large enterprises with equally large budgets, robotics are now more affordable and available to organizations of every size. From picking products at a warehouse to getting them ready to ship, autonomous robots can quickly and safely support manufacturers. Robots move goods around Amazon warehouses and also reduce costs and allow better use of floor space for the online retailer.

Additive manufacturing (3D printing): This technology has improved tremendously in the last decade and has progressed from primarily being used for prototyping to actual production. Advances in the use of metal additive manufacturing have opened up a lot of possibilities for production.

Internet of Things and the cloud: A key component of Industry 4.0 is the Internet of Things that is characterized by connected devices. Not only does this help internal operations, but through the use of the cloud environment where data is stored, equipment and operations can be optimized by leveraging the insights of others using the same equipment or to allow smaller enterprises access to technology they wouldn’t be able to on their own.

While Industry 4.0 is still evolving and we might not have the complete picture until we look back 30 years from now, companies who are adopting the technologies realize Industry 4.0’s potential. These same companies are also grappling with how to upskill their current workforce to take on new work responsibilities made possible by Internet 4.0 and to recruit new employees with the right skills.

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What is Internet 4.0 and what came before it?

Jeremy Sims — Mon, 08 Oct 2018 04:53:21 +0000

Internet 4.0 is quick becoming a buzz word. But what is Internet 4.0? What did Industry 1.0, Industry 2.0 and Industry 3.0 look like?

We find out here thanks to TNL

Internet 1.0: The pre-web Internet (1968-1995)

During its initial couple of decades, the Internet was a relatively unknown phenomenon, connecting geeks in academia, some corporations, and the government in a mostly text-only type of environment. The initial focus was on sharing computing resources (think of it as cloud computing long before the term took hold) and exchanging information, mostly in a textual form, over email and discussion groups called Usenet newsgroups.

Because it was born out of concerns about nuclear attacks during the cold war, development of the Internet was largely driven by concerns over resiliency, redundancy, and a general ability to work even if large portions of the network were taken offline.

In those days, the Internet was a complex system to use and operate, leading to slow user adoption and a somewhat collegial environment where a large part of the community knew each other and worked closely together.

Internet 2.0: Rise of the Web (1995-mid 2010s)

There is no argument that the appearance of the web in the early 1990s democratized usage of the Internet. In fact, it was so successful in that integration that for many people the Internet and the Web were seen as one and the same. Other services provided on top of the Internet lost their dedicated client and, over time, were replaced by web applications.

This era saw the growth of e-commerce as a new form of purchasing goods, and the rise of online media as the way to consume information and entertainment.

The initial promise of the web era gave rise to the idea of democratizing access to communication tools so that anyone could set up their offering online without a high starting cost: on the Internet, two people in a garage could easily compete with some of the largest corporations and create a massive business.

Amazon established itself as one of the large players in e-commerce first by selling books and later by expanding into a general online store. Meanwhile, the rest of the web needed organizing and many companies built advertising backed search engines, with Google becoming the dominant player in that space.

Initial collateral damage to many existing businesses started impacting a lot of traditional industries, with retail, media, finance, and others being completely transformed by this first phase.

Later in that cycle, the social web (often referred to as Web 2.0) created a set of tools and modes of interaction that drove individual people to share information about themselves and chat with friends, co-workers, fellow students and/or family, on increasingly centralized platforms. Facebook bested its competitors to become the dominant player in managing daily social life while LinkedIn established itself as the network for work.

Internet 3.0: The Mobile Internet (2008-present)

The introduction of the Apple app store really marks the debut of the mobile Internet era. While the iPhone had been launched a year earlier, it wasn’t until the app store appeared that a new mode of interaction with the Internet was seen.

The app store model further recentralized the Internet as developers had to distribute their wares through primarily a limited set of app stores. The iPhone app store and Google’s Android Play store are the single points of control for much of the Internet (some countries like China have a more diverse set of app stores on Android devices but they represent the exception more than the rule).

In putting a computer in everyone’s pocket, Apple and Google (and Google’s distribution partners like Samsung, LG, Motorola and others) fundamentally changed the way a majority of users interacted with the Internet. With rapid acceptance of mobile devices in markets where the Internet had not gotten widespread acceptance, the balance of usage tilted from a computer/web browser based model to one that favored mobile device/apps.

This also unshackled the Internet, making many services that leveraged the mobility of the devices to create new business models. It also created the initial conditions for the Internet that is now coming. In putting a device in everyone’s pocket, the industry created large amounts of data about who, where, and when users were on the Internet.

This led to an increase in deployment of an infrastructure to make the Internet more available on a continuous basis. If the previous phase was defined by having to go to a place (wherever a computer and internet access was available), this new era could be defined as having the Internet available wherever you are and whenever you need it.

Internet 4.0: The Ambient Internet (2017-future)

With mobile devices now representing a majority of Internet traffic, the Ambient Internet is taking in historical information based on where your device has been, combining that with information that is coming off nearby sensors (eg. location sensors, smart home components, etc…) and layering in artificial intelligence to drive new experiences that can be embedded into existing devices.

In this next phase, the Internet will move from being available anywhere and anytime through a specific device to being available in all places and at all times through most devices. Interactions will move away from the single screen of your mobile phone or computer to interfaces you interact with naturally. Home assistants like Amazon Alexa and Google Home are early representatives of this trend but present only a cursory view of what the future will look like.

When taken to its logical conclusion, the Ambient Internet is the final stage of Internet penetration that leads to the Internet disappearing in the background. Like electricity and running water, the Internet is rapidly becoming a core service that is connected to everything around you.

The Ambient Internet, or Internet 4.0 takes historical data gathered through your interactions with multiple touchpoints (eg. lights, cars, speakers, chatbots, etc…), merges it with contextual information gathered through sensors you may either be wearing or see installed where you are, and uses Artificial Intelligence to establish guesses as to what you are most likely to need.

In private spaces, Internet 4.0 is fully customized to your specific needs and wants. In public spaces, Internet 4.0 is about driving a personalized Internet where the experience of any given space and/or product is optimized to please the majority of the people in that location right now.

A couple of years ago, I helped define the specifications around a new form of outdoor display advertising that adapted itself to the nearby audience, presenting the most relevant content to users without any specific interaction from the user. The idea is to make the environment subtly react its participants without making the participants aware of those adaptations.

Key to the Internet 4.0 is state of ambient computing it creates. While previous phases of the Internet have required some level of training (either learning to operate a computer, a web browser, a mobile device or an app), this next phase of the Internet is using natural interactions, either via spoken dialogue (using voice recognition as assistants like Amazon’s Alexa, Apple’s Siri, Microsoft’s Cortana or Google’s… OK Google) or text embedded into tools you already use (eg. chatbots in slack or other messaging programs, smart agents interacting via email like Amy from X.ai).

With Internet 4.0, the goal is to make the Internet mostly disappear. Today, when you take an Uber, there is still a human element processing information that has been given to him/her by a computer using large amounts of data to find the quickest route from point A to point B. Tomorrow, Internet 4.0 will leverage the same power and distribute the same information to fleets of completely autonomous vehicles that interact with each other to get out of each other’s way and move people faster.

Right now, different players are starting to align their capabilities to drive this new Internet. If history is right, only some of the incumbents will make the transition but the big question that remains is who will be the new player who will be able to leverage these trends into a dominant position in the future.

Soon, as the Internet disappears, it will become another core infrastructure powering our world in the background and this next generation company may already exist or be in the birth process. Watch for clear signals around new entrants as this represents the next big growth phase for the Internet.

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