Jovix for EPC Firms & Contractors

Increase direct labor productivity by eliminating material readiness issues that prevent craft labor from spending time on tools.

EPC & Contractor Challenges:

  • Low craft productivity due to material readiness issues
  • Highly competitive environment, must win business by differentiating themselves from other EPCM firms in the bidding process
  • Skilled labor is in high demand, must make do with less competent workers than in past
  • Control of material is compromised as it flows between multiple physical locations and changes care, custody and control between parties
  • Labor intensive, manual, paper-based processes to manage materials
  • Major blind spots in current systems results in lack of visibility of what is coming, what is onsite, what is completable
  • “Paper to Computer” record keeping processes drives decisions based on erroneous or outdated information
  • High material accountability issues lead to reprocurement, re-work and contractor claims
  • Lack of quality data from suppliers particularly from owner-furnished equipment
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The Value of Removing Material Readiness Issues

The average craft worker spends only 37% of their time on tools. The number one non-tool activity is waiting on materials and equipment. Jovix eliminates unnecessary material readiness issues by providing construction with the real-time data necessary to accurately plan their work and by providing materials management with a tool to support that plan.  When material readiness issues are removed, craft spend more time on tools which drives productivity saving 1-3% of the direct labor budget.

Potential Savings on a $500M Project


Category

%
of TIV

$
of TIV

Potential
Avoidance

Potential
Savings
Total Installed Cost 100% $500M .03% – .09% $150k – $450k
Engineering 15% $75M
Material & PPE 40% $200M .05% – .15% $100k – $300k
Construction Indirect Labor 15% $75M 3% – 5% $2.25M – $3.75M
Construction Direct Labor & Subs 25% $125M 1% – 3% $1.25M – $3.75M
Other Construction Indirect Costs 5% $25M
TOTAL $3.75M – $8.25M

EPC Success Story

One EPC firm was contracted to simultaneously construct 3 separate LNG export facilities with multiple offsite storage facilities, a complex, international material flow process and a time-sensitive cross-harbor logistics process. The projects were located on an island with limited accessibility and had geographically-dispersed materials across several hundred acres of offsite laydown yards.

The Challenges

  • Difficult to access storage and laydown yards quickly due to geographic separation
  • No visibility into location or status of materials from request to issue
  • Multiple data entry processes required a significant amount of time to complete and introduced the likelihood of human errors
  • Information on materials was outdated and incomplete
  • Limited storage space near work face required materials to arrive no more than 2 weeks prior to installation

The Solution

  • Automated receipt of structural steel
  • Used mobile tablets, vehicle-mounted readers and active RFID tags to locate materials
  • Provided visibility into the status and location of materials from supplier through installation
  • Automatically generated packing lists for cross-harbor logistics process
  • Used RFID tags and gate readers to automate the real-time tracking of materials from request through issue
  • Replaced manual reporting with automatically generated twice daily reports on all tracked items

The Results

  • Project anticipates 5% reduction in labor costs
  • Saved 1 man hour per material withdrawal request, saving > 300 man hours per week
  • Tracked 1.2 million tag movements through the supply chain, which had previously been recorded manually
  • Reduced steel delivery time from 45 days to 22
  • Provided accurate, real-time information on > 100,000 materials

Project Savings 

Calculating the savings on the man hours eliminated, the project will realize at least $52,000,000 in savings just in labor costs. Contact us to find out how to create a success story for your company!

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