Standardization: Achieving Higher Levels in the Upstream, Midstream, and Mining (UMM) Commodity Market

RT-UMM-01 Topic Summary


Research Team UMM-01 (RT-UMM-01) defines standardization as the development and use of consistent designs to align project stakeholders, objectives, and scope to capture and optimize schedule, cost, and value. Previous CII research has recognized the shipbuilding industry for accomplishing high levels of both facility standardization and modularization very successfully, and reaping considerable benefits (CII 2007, CII 2011). RT-283 concluded that to maximize modularization benefits on capital projects, levels of facility standardization must also be substantially increased (CII 2012). However, the levels of facility standardization in the Upstream, Midstream, and Mining Commodity Market (UMM) fall short of the desired criteria.

RT-UMM-01 addressed the question of how the UMM sector could achieve higher levels of facility standardization. To reap maximum benefits from standardization on capital projects, the industry must better understand the economic values dependent on facility standardization and approaches. Also, the industry needs to learn when and how to analyze and justify standardization, and how to exploit its benefits to achieve higher levels of facility standardization in the UMM sector.

To successfully implement standardization in the UMM sector, the industry must pay heed to the critical success factors that depend on standardization, along with their enablers. Moreover, the industry must have a fundamental understanding of the benefits and tradeoffs associated with facility standardization, as well as the optimal timing for achieving these benefits and tradeoffs. To aid in this process, RT-UMM-01 has developed a standardization decision-making model. The RT-UMM-01 research addressed these requirements, which can be viewed in the following figure as solution pieces.

Key Findings and Implementation Tools

1 : Economics of Standardization

The economics of standardization provides an understanding of the fundamental benefits and tradeoffs with facility standardization. Implementation of standardization techniques shows that performance levels met or exceeded for all performance metrics, including cost effectiveness, agility, predictability, safety, and quality. Overall, eight standardization programs saved 10% of the total installed cost, 25% of the life cycle cost, and 15% of the schedule.
Reference: (pending)

2 : The Standardization Decision-making Model

The Standardization Decision-making Model is a user-friendly tool that provides an early, high-level, systematic review of key issues in standardization. Its objective is to help practitioners determine the feasibility of standardization by identifying benefits, business drivers, impediments, and risks. The model also facilitates alignment and education in facility standardization.
Reference: (pending)

3 : Critical Success Factors (CSF) and Enablers

RT-UMM-01 identified 15 critical success factors (CSFs) and enablers, along with the responsible parties and the optimal timing of implementation. RT-UMM-01 combined all of this information into the figure below to illustrate the complex nature of making standardization successful. Early implementation and teamwork are especially essential to make standardization successful.
Reference: (pending)

4 : Innovative Technologies and Management Approaches

Achieving higher levels of standardization also depends on identifying and implementing new and applicable innovative technologies and management approaches potentially related to standardization. RT-UMM-01 has revealed innovative future “stretch” technologies and management practices, including the following top six innovative technologies:
  • Modularization
  • Intelligent Automated Data Collection Technology
  • Construction Simulation Technologies
  • Mobile User Interface Device
  • Wireless Networks for Construction Sites
  • LIDAR/Reality Capture
Reference: (pending)

Key Performance Indicators

Related Resources

Standardization Decision-making Tool

Publication Date: 08/2019 Resource Type: Member-only Resource Source: RT-UMM-01