E.ON New Build & Technology Increases Profitability, Reduces Risks by Streamlining Engineering and Construction Projects
 
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E.ON New Build & Technology Increases Profitability, Reduces Risks by Streamlining Engineering and Construction Projects

E.ON New Build & Technology GmbH is a global unit of E.ON, one of the world's largest, investor-owned power and gas companies. As a dynamic, internationally acting and innovative company E.ON New Build & Technology unites excellence in project management, engineering, and technology to provide best-in-class services to its customers to improve the economical and environmental performance of their projects and assets. E.ON New Build & Technology’s vision statement is: “We will engineer a cleaner and better future for E.ON by delivering world-class solutions from ideas to reality.”

 
 

 
 

Challenges

A word from E.ON New Build & Technology GmbH

  • “We needed a solution to manage very large projects, such as power plant construction, as efficiently as possible. With Oracle’s Primavera P6 Enterprise Project Portfolio Management, we can access project status information at anytime, coordinate our subcontractors to perform on time, on budget, and deliver quality, while we balance resources and leverage earned-value analysis for accurate project forecasts. With Oracle, we have grown profitability and reduced project-related risks.” – Heinrich Genent, Project Scheduling, E.ON New Build & Technology GmbH

  • Manage more than 100 engineering and construction projects, annually, with increased efficiency—ranging from small projects, such as power transformer maintenance, to very large projects, such as the turnkey construction of thermal, coal-fired, or nuclear power plants
  • Facilitate proactive project management by providing actual project status information and ad-hoc, root-cause analysis to strengthen decision-making and mitigate project risks
  • Provide accurate project performance forecasts to meet hand-over dates and avoid project budget overruns—usually caused by numerous change requests, which on average cost between US$10,000 and US$100,000 per request
  • Grow operating margin by coordinating numerous subcontractors, instead of assigning entire projects or subprojects to engineering, procurement, and construction firms

Solutions

  • Deployed Primavera P6 Enterprise Project Portfolio Management to prioritize, schedule, execute, and monitor engineering projects with earned-value analysis and E.ON-specific adaptations—from the construction of entire power plants to the maintenance of power transformers, involving up to several thousand workers, across dozens of teams per project
  • Enabled assessing E.ON-specific project management environments, as well as developing and implementing procedures that make project scheduling, execution, and monitoring more efficient
  • Reduced dependency on engineering, procurement, and construction firms by facilitating end-to-end control over projects and subprojects, helping the company to run complex projects, such as a set of 1,100 megawatt thermal power plants with more than 50 lots, by coordinating interfaces among subcontractors and the general planner
  • Generated automatic reports (imports/exports to and from Primavera P6, Microsoft Excel, SAP, and vice versa) to facilitate monthly schedule updates and reporting—identifying potential problems, flagging poorly performing sites, and saving up to two workdays per month
  • Reduced the number of personnel required for scheduling and progress reporting to a minimum, supported contracting nearly 60 subcontractors with the help of only a few schedulers
  • Measured project performance, based on weighted progress, with earned-value management analysis—comparing the degree of task completions with actual and planned values, enabling clear visibility and a path to action if the earned value does not correspond to the range of expected values, and avoiding budget overruns
  • Increased profitability of the company’s engineering services by introducing best practices in project management, improving team productivity with role-specific functionalities, and streamlining report production and change requests
  • Enabled complex, functional, project organizations with members from different E.ON units and external suppliers to use a common data foundation for enhanced collaboration, facilitating general project management and engineering for projects that can reach multibillion-dollar value—such as for power plants that have up to 3,000 workers onsite at peak times
  • Established a flexible and future-proof system that can support growth and strategic objectives, ensuring sufficient people, skills, and other resources to meet current commitments and to undertake new projects

Why Oracle

“We decided to implement Oracle’s Primavera P6 Enterprise Project Portfolio Management over Microsoft Project and Power Project because P6 proved to be an expert system, handling large data volumes much better than its competitors and offering a stable and centralized scheduling environment. The use of various layout and filtering criteria was also highly appreciated,” said Heinrich Genent, project scheduling, E.ON New Build & Technology GmbH.

Partner

“Oracle partners INTECO and THOST made key contributions to this successful implementation. Under the supervision of EON IT, the in-house IT service provider of the EON group, INTECO managed the software implementation while THOST helped analyze different options for our use of Oracle’s Primavera solution and configured the database. THOST also provided a customized project management tool that enables us to visualize and analyze all resources within its schedule,” Heinrich Genent added.

With consultancy by Oracle Specialized Partner INTECO, EON IT managed the hardware supply as well as the software implementation. EON Kraftwerke GmbH and THOST analyzed different options for the Oracle Primavera environment and set up the user administration for the database. Additionally, THOST analyzed concurrent engineering structures within EON Engineering GmbH and deployed a project management system for engineering works to track, analyze, and steer progress and costs of lump-sum, multimillion-dollar contracts.