Korea’s SK E&C Reduces Engineering Estimating Man-Hours by 50% With Aspen Capital Cost Estimator
Company Size
1,000+
Region
- Asia
Country
- Korea
- United States
Product
- Aspen Capital Cost Estimator (ACCE)
Tech Stack
- Microsoft Excel
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
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
About The 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.
The 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.
The 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.
Operational Impact
Quantitative Benefit
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