Page 41: of Offshore Engineer Magazine (Mar/Apr 2022)

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TECH FEATURE BAKER HUGHES

Structured deepwater horizontal xmas tree

Photo Baker Hughes large extent upon engineering, but it’s important to recog-

Building on the benef ts nise that product structuring is about much more than en-

At a project level, we’ve calculated that the applica- gineering. It’s about some of the fundamental principles of tion of the product structuring model by Baker Hughes successful project execution – from supply chain sourcing teams yielded overall cost savings of $2 million on one and internal manufacturing to project management and particular project. Typically, we estimate it is yielding quality assurance. cost reductions of between 10% and 30% on individual

And it’s against the backdrop of the bigger project pic- developments.

ture that the gains of product structuring – improving the

The bene? ts of product structuring are also secured in economics of subsea ? elds – begin to materialize. It in? u- a more rounded sense by some of the generic attributes of ences cost, certainly, but perhaps even more importantly it the approach – the ef? ciencies, enhancements in processes serves to reduce the cycle time to ? rst oil. From an over- and quality, and risk mitigation derived from repeatability.

arching economic perspective, it could be argued the latter

We’ll continue to move it forward as a concept, in part by can have a greater material impact than the former.

applying the methodology around new solutions we bring

It’s broadly acknowledged that the industry cycle time to the market as well as our existing products. Conversely, for Xmas trees is around 18 months. We are now targeting product structuring provides a very stable foundation for – and achieving – a cycle time of 12 months because of innovation and as industry trends evolve – with, for exam- the applied principles of product structuring. We’re deliv- ple, the growth in all-electric subsea systems – it directly ering on such timeframes partly because we’re eliminating supports our product development agenda. In addition, we initial engineering work and immediately embarking on anticipate that digitization and automation will present sig- parts procurement through our supply chain agreements. ni? cant opportunities to further re? ne the process.

And if you’re taking six months out of the cycle time for a

It all points to an industry future in which product piece of infrastructure that’s critical on the path to ? rst oil, structuring, by leaning out the entire product manufac- that can only change the economic pro? le of the develop- turing process, can increasingly help to deliver on indus- ment for the better. try imperatives.

march/april 2022 OFFSHORE ENGINEER 41