Project execution in the 'new frontier' of China'
Executing projects in Asia-Pacific is not new to most global engineering and contracting (E&C) companies. As in other parts of the world, the industry has been active in the region for decades. Fluor, for example, has executed around 1000 projects in Asia-Pacific during the past 50 years.
The relatively recent opening up of markets in China, the largest country in the region, has generally fuelled a 'new frontier' perception. Despite Fluor being active over a sustained period in the region, many Asia-Pacific countries are similarly categorised in many aspects of our industry. The opportunities here are much greater today, as governments hang out a apen for business' sign and progressively seek direct foreign investment (DFI). As Asia is home to about two-thirds of the world's population, demand for chemical- and petrochemical-based products is increasing rapidly in an attempt to keep up with projected growth.
The engine driving much of the momentum in regional growth is China, where 1.3billion residents spur domestic demand. The burgeoning population here is almost as high as India and the United States (the next two ost-populated nations) combined. Other areas in the region have seen solid growth in new project work -- but China's impact has been ar-reaching. Global E&C companies are vying for contracts to design, build and construct large chemical and petrochemical facilities throughout the country.
With the increase in business, new challenges will inevitably surface. From the successful project execution challenges and strategies that I have been involved in during my 12 years with Fluor in the Asia-Pacific region, I have selected four key solutions that have been instrumental in our success here: operational consistency, worksharing, knowledge sharing and partnering.
Operational consistency
One of the main challenges of working in Asia-Pacific is its general remoteness from the Western world. Many projects are far away -- measured both in distance and time -- from our common support structures. At Fluor, our operational consistency approach helps overcome many of the problems associated with setting up a base in this region. No matter where we execute a project globally, the same IT infrastructure, systems and procedural building blocks are put in place. The Asia-Pacific region is widely accepted as being an aemerging' frontier, yet our offices here are set up with the same levels of sophistication as in other parts of the world. Corporate standard procedures are followed, proven work practices are applied -- and lessons learned from all over the Fluor world are implemented.
Operational consistency includes the standardisation of IT infrastructure and systems in all offices worldwide. From standard network gear to servers and even peripherals, one office is consistent with another. Standard operating system platforms and applications are another aspect of our consistency goal, and at the core of this strategy are standard project automation tools. Fluor's MasterPlant suite of project automation tools consists of integrated proprietary and commercial software. The tools enable and enhance the expertise of our employees, help maximise our global knowledge and improve our work processes during the execution of many of the world's most demanding projects.
Intergraph's Plant Design System (PDS) is a major component of the suite and many other Intergraph products -- SmartPlant P&ID, INtools and SmartPlant Review -- are key toolkit solutions.
Much of the current Asia-Pacific media coverage focuses on less-expensive product production in the region. Cheaper product, though, is not an excuse for inferior project execution. It is important to successfully complete projects of high quality and on budget wherever they are located. It is essential that our employees in Asia-Pacific have access to the same solutions as the rest of Fluor Corp., and the MasterPlant suite provides what we believe are the best-in-class tools available for optimum project execution.
Knowledge sharing
We have long recognised the value of enterprise-wide knowledge management and the competitive edge that can be gained in this area. Over a period of five years, systems and processes have been implemented to facilitate knowledge management globally. The Fluor management system -- Knowledge OnLine -- connects more than 13000 knowledge workers globally.
Knowledge OnLine provides access to online communities via the corporate intranet. Similar in many ways to other Web-based newsgroup-type forums, issues or problems are posted to the site to tap into the wealth of company expertise and knowledge around the globe. All employees are encouraged to post knowledge of their particular area of expertise to the online portal.
Another development that aids knowledge sharing on Fluor projects is aProjects OnLine'. This Web-based technology combines robust document management with a project collaboration portal. The solution brings together distributed project team members in a Web environment and has proved to be a major success on a current project in Asia-Pacific.
Providing secure, structured access to project data, Projects OnLine's primary purpose is to deliver timely information to all project participants, wherever they are located. For example, the Integrated Isocyanates Project (IIP) -- a multimillion-dollar project for BASF, Huntsman and Chinese partners here in Shanghai -- encompasses team members in Germany, the United Kingdom, the United States, the Netherlands, Korea, Taiwan, the Philippines and Australia. With secure access to Projects OnLine, team members receive project news and key milestones, engineering documents, site photographs and vendor data. It is widely accepted by the project team that Projects OnLine has provided major benefits to the IIP project. "Connecting global expertise to Shanghai" is the solution slogan, and Projects OnLine has more than delivered in this area.
Worksharing
The worksharing concept is certainly not a new challenge to our industry. With projects constantly increasing in capacity and value, there are many good reasons to increase capabilities in this area.
Around-the-clock engineering is now a common concept, and technology tools that facilitate worksharing have gained a competitive edge. Fluor devised worksharing strategies for Intergraph's PDS plant design software about ten years ago, and the development of work processes around the tool have paid dividends. In addition the latest versions of Intergraph's SmartPlant P&ID software have focused on meeting worksharing challenges.
In Asia-Pacific, Fluor relies upon Global Execution Centres (GECs) in Manila and New Delhi to contribute high-value engineering skills to projects. One office I have spent a large portion of time in during the last ten years is Manila. From humble beginnings in the mid-1990s, the office grew to be the largest single PDS site globally by the end of the decade. Following an extensive training effort over a number of years, about 70 percent of the Fluor multidiscipline workforce in Manila is skilled in PDS and its related modules.
Partnering
Due to regional government regulations, it is rare that a company can successfully execute a project in Asia-Pacific single-handedly. In China, all E&C companies must joint venture with a Chinese counterpart. While partnering is important, it poses security issues in the areas of intellectual property (IP) and network integrity. At Fluor, we place great emphasis on ensuring the security of our IP and that of our clients. It is wise to acknowledge that a partner today may well be a rival for another project in the future.
In a region where languages and cultures differ greatly, partnering also often needs to take shape on a personal level. The language barrier needs to be overcome through patience and preferably access to good English-speaking (or other Western language) local resources. With more than 1200 languages and dialects spoken in Asia-Pacific, mastering a new language yourself is not necessarily an option when faced with a rapid mobilisation schedule.
When partnering with a local team, patience becomes a key aspect of the relationship. The local culture must be understood to be successful.
Western-related motivational techniques do not necessarily apply, and different approaches are needed.
To build a successful team you must take time to listen. Speaking clearly and with less volume is also a rule that I generally follow. A level temperament is very important. In many Asian cultures, you will not receive a second chance for a loss of temper no matter how trivial you may perceive it. Once judged to be one of ill temperament, you can expect to receive little if any cooperation. I have seen a few good teams destroyed by one short burst of anger.
It has also been of great assistance to me to have trusted technology partners in the vicinity of where I have been posted. For example while establishing the IIP office recently, Intergraph's Greater China representatives were among the first to pay me a visit and offer assistance. And being responsible for establishing the IT infrastructure for a major project in China, it was reassuring to know that Intergraph's local, regional and global resources were there to assist when needed.
It's usually a very ahands-on' experience working here, as often one is quite some distance from a designated expert in a particular field. That is where access to knowledge online plays a huge role. When working in Asia-Pacific, it is also generally a requirement to be able to train and provide knowledge transfer. Prepare to be a coach, a coordinator and a mentor, as well as a manager. If it appeals as a career move, a good sense of humour and a willingness to at least learn some basic language skills will also help.
Many years of working in this region and being away from the comfort zone of the home office has presented some unique challenges. Reflecting on some of the successful strategies outlined here provides some insight into the global E&C industry. Many companies that develop projects around the world are geared to conquer the execution problems that arise in remote regions.
At Fluor there has been a strong focus on the differentiators that give us a competitive edge in the market -- wherever we do business. By following these and other successful execution strategies, we have developed major strengths in some of the more remote locations around the globe.
Ian D. Constantine is the director of information management for Fluor China's Integrated Isocyanates Project. He has worked in the Asia-Pacific region for more than 15 years - 12 of those years have been with Fluor. Prior to moving to China, he completed assignments in Australia, New Zealand and the Philippines. For more information, visit www.fluor.com ppm.intergraph.com