Case Studies Korea’s SK E&C Reduces Engineering Estimating Man-Hours by 50% With Aspen Capital Cost Estimator

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	Korea’s SK E&C Reduces Engineering Estimating Man-Hours by 50% With Aspen Capital Cost Estimator

Korea’s SK E&C Reduces Engineering Estimating Man-Hours by 50% With Aspen Capital Cost Estimator

Technology Category	Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries	Construction & Infrastructure Oil & Gas
Applicable Functions	Discrete Manufacturing Procurement
Use Cases	Manufacturing System Automation Predictive Maintenance
Services	Software Design & Engineering Services
Challenge	SK E&C, a global EPC and Total Solution Supplier, was facing fierce competition in bidding and estimating capital construction projects. The company needed a technology and workflow process that would allow them to compete against low-labor-cost competitors. The main challenges were improving target accuracy, maintaining sufficient data for a Class IV estimate, and optimizing bids as time was spent developing the estimates rather than refining them. The company also needed to counter global threats to their business with technology that would enhance efficiency and develop bids that were more accurate, flexible, and reflective of historical cost data. Read More
About Customer	SK E&C is a renowned global EPC and Total Solution Supplier. Since its establishment in 1977, the firm has been transforming itself and expanding its services and solutions beyond its core upstream, midstream, and refining business. The company has a unique perspective on what the owner-operator seeks to obtain from a bid, including scenario analysis, understanding of financial planning, a cooperative engagement with EPC contractors, and a thorough cost comparison leveraging alternative designs. This perspective has helped SK E&C become a successful global company. The company was the first to enter the LNG business in the United States and the oil sands business in Canada. It has continuously expanded into the global market in Asia and the Middle East with projects such as Turkey’s Eurasia Underwater Tunnel and the Laos hydroelectric power project. Read More
Solution	SK E&C chose Aspen Capital Cost Estimator (ACCE) as the integrated estimating tool. The company defined a path for deployment that was methodical and produced bids in a systematic manner. Bid accuracy was improved through the calibration of the unit-rate estimate with SK historical data. Modular construction became an option because the unit-rate estimate format could be leveraged. A six-step workflow was established for conceptual estimates using ACCE. The workflow prepared an estimate plan, executed the estimate, and then benchmarked and indexed against prior historical estimates to sharpen and adjust cost, thereby improving accuracy. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Construction & Infrastructure

Oil & Gas

Applicable Functions

Discrete Manufacturing

Procurement

Use Cases

Manufacturing System Automation

Predictive Maintenance

Services

Software Design & Engineering Services

Challenge

SK E&C, a global EPC and Total Solution Supplier, was facing fierce competition in bidding and estimating capital construction projects. The company needed a technology and workflow process that would allow them to compete against low-labor-cost competitors. The main challenges were improving target accuracy, maintaining sufficient data for a Class IV estimate, and optimizing bids as time was spent developing the estimates rather than refining them. The company also needed to counter global threats to their business with technology that would enhance efficiency and develop bids that were more accurate, flexible, and reflective of historical cost data.

About Customer

SK E&C is a renowned global EPC and Total Solution Supplier. Since its establishment in 1977, the firm has been transforming itself and expanding its services and solutions beyond its core upstream, midstream, and refining business. The company has a unique perspective on what the owner-operator seeks to obtain from a bid, including scenario analysis, understanding of financial planning, a cooperative engagement with EPC contractors, and a thorough cost comparison leveraging alternative designs. This perspective has helped SK E&C become a successful global company. The company was the first to enter the LNG business in the United States and the oil sands business in Canada. It has continuously expanded into the global market in Asia and the Middle East with projects such as Turkey’s Eurasia Underwater Tunnel and the Laos hydroelectric power project.

Solution

SK E&C chose Aspen Capital Cost Estimator (ACCE) as the integrated estimating tool. The company defined a path for deployment that was methodical and produced bids in a systematic manner. Bid accuracy was improved through the calibration of the unit-rate estimate with SK historical data. Modular construction became an option because the unit-rate estimate format could be leveraged. A six-step workflow was established for conceptual estimates using ACCE. The workflow prepared an estimate plan, executed the estimate, and then benchmarked and indexed against prior historical estimates to sharpen and adjust cost, thereby improving accuracy.

Impact #1	SK E&C was able to easily optimize the capital cost by selecting the best options and making the right decision.
Impact #2	The company reduced wasted engineering and functional man-hours.
Impact #3	SK E&C was able to start a bid with minimal scope definition.

Impact #1

SK E&C was able to easily optimize the capital cost by selecting the best options and making the right decision.

Impact #2

The company reduced wasted engineering and functional man-hours.

Impact #3

SK E&C was able to start a bid with minimal scope definition.

Benefit #1	SK E&C reduced waste in engineering and functional man-hours to shorten estimate preparation time by 50%.
Benefit #2	The company also improved accuracy by 50%.

Benefit #1

SK E&C reduced waste in engineering and functional man-hours to shorten estimate preparation time by 50%.

Benefit #2

The company also improved accuracy by 50%.

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Overview

Korea’s SK E&C Reduces Engineering Estimating Man-Hours by 50% With Aspen Capital Cost Estimator

Operational Impact

Quantitative Benefit