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The Blockchain Technology and Project Engineering Management 4.0
The process of engineering, procurement and construction management (EPCM)/ project execution uses
vast amount of diversified technical information from multiple entities/engineering centers and
software applications/ platforms. A means to seamlessly integrate the various sources of data, including
licensor data and display this information on a real time basis is envisaged. Intelligent systems enables
the business through information and technology with necessary IT infrastructure/ operations
technology (OT), makes it easier to separate IT from the rest of the business applications, for successful
implementation to drive operational excellence , quality, efficiency, capture all data (Big Data) and
hence productivity/business excellence, aligning with Industry 4.0 standard.
Change management and project management happens to be a very tedious process in the entire project
life cycle. Project Engineering management needs to have a complete record of all the changes, source of
data for the change, cost impact on multiple deliverables/contracts/subcontracts and time implication.
The blockchain technology gives the digital engineering designers /internet users from the
regional (geographical) design centers the opportunity and ability to create value and
authenticate digital information and the changes recorded during the process. The new business
application has opportunities for a meaningful approach for successful execution of projects with
quality, on time and within budget cost.-
Digital Smart contracts
On a typical EPCM project there could be several contractors and sub contractors with
multiple entities involved at the design stage. Distributed ledgers, at different locations on
servers/cloud, connected with IT network, enable the coding of simple
contracts/deliverables, that will execute when specified conditions are met and has the
potential to leverage the usefulness of blockchains on a truly real time scale throughout
the project life cycle.
Data management and sharing
With multidiscipline engineering teams at regional centers working on several projects, with
different software applications, also at times concurrent engineering to meet the tight project
schedule, companies in the EPCM business by enabling peer-to-peer data transfer, the
blockchain opens the window to direct interaction between design teams for a truly decentralized
sharing . With all digital engineering transactions on project records/deliverables, the impact is
dependent only on the expertise of team using it,. Its impact may be felt by both the 3D creation
and modeling disciplines (governed by PDS, PDMS AUTOCAD, STAD,CAE and CAM
software), as well as the enterprise and product lifecycle data management sectors (SAP,
WRENCH, project lifecycle/data management and other software).
Blockchain will finalize a transaction on the deliverables between the teams, like a digital
contract, If both the teams have copy of that deliverable/contract, it’s difficult to prevent one of
them from tampering with it and changing it accidently. So it could be difficult to tell which
copy is the valid contract. A blockchain prevents that, which is needed in the multi engineering
and other transaction-centric, design data/contract-driven EPCM projects. It is applicable to
construction and engineering projects, where design concepts need to be signed off and stamped,
digitally or manually. Engineering information has real intrinsic value, so the opportunity in our
EPCM projects is appreciable. The objective is to create a decentralized knowledge
inventory/management for the infrastructure, energy, and construction engineering professions,
allowing engineers to shift from a collection of centralized place into a global network to
adjudicate the risk in real-world systems.
Project control and Governance
By making the results, authenticated and approved deliverables, fully transparent and the
intelligent 3D model accessible to the teams involved, distributed database technology
with network licensing of software applications, could bring full transparency to the
design based smart contracts to help automate the process.
This enables organizational decision-making to happen on the blockchain, becomes fully
transparent , verifiable and auditable when managing digital assets or project information.
Change management and auditing
Clients want to know that the additional change order claims companies make about their
projects are real. Distributed ledgers provide an easy way to certify that the change
records of the project deliverables are genuine. Transparency comes with blockchain-
based time stamping of a date and approval/location and team, that corresponds to a
design center/vendor project number.
Server locations and File storage
Decentralizing file storage, could be with SharePoint/Azure, on the internet, cloud
system, with redundant file servers for back up, brings clear benefits. Distributing data
throughout the network protects files from getting hacked or lost due to force majeure
conditions/natural calamities- floods, quakes...
Schedule forecast
With multiple design teams at different regional centers working on the project,
forecasting, meeting the tight schedule or event probability is proven to have a high
degree of accuracy. Blockchains have the knowledge and expertise of the entities
involved in the project that will no doubt find other collateral applications, if any difficult
situation arises or unforeseen incidents/procurement delays.
Security of data and Protection of intellectual property
The possibility of losing control over the intellectual property and having financial
implications cannot be ruled out. Smart contracts can protect copyright and automate the
sale of creative works online, eliminating the risk of data security/copying and
redistribution.
Industrial Internet of Things (IIoT)
IIoT- The network-controlled management, could be even Wifi enabled, of electronic
devices with smart sensors, transmitters — for instance, the monitoring of a pump
performance. Smart contracts make the automation of remote systems management
possible. A combination of software (PLC/DCS/ESD/SCADA), smart sensors, and the
network with smart gateways for meeting communication protocols, facilitates an
exchange of data between objects and mechanisms from multiple global vendors. The
result increases system efficiency and improves performance monitoring with better
energy management.
IIoT applications will run the proactive and predictive maintenance of mechanical parts
to data analytics, and plant automated systems management.
Inventory/store managements
Blockchain technology enables the buying and selling of the required inventory, smart
contracts automatically redistribute it to the plants in need at different locations. Similar
types of smart contract automation will have many other applications as the IIoT with
GPS enablement becomes a reality.
Records and Identity management
With the multiple stake holders and design teams involved in a project, there has been
always a need for better record and identity management on the network. The ability to
verify the source of records /data , identity of transactions and approval of deliverables
that happen online. Distributed ledgers offer enhanced methods for proving the teams
involved, along with the possibility to digitize personal documents. Having a secure
identity will also be important for online approvals. A good reputation, after all, is the
most important condition for conducting such designs and approvals. The creation of a
Digital ID allows the team to share relevant information that is validated by the
approver/authorizing body. Identities of people and/or vendors could be securely recorded
in the Blockchain, and additionally used to build reputation for work or contracts over
time.
In project design cycles, engineers have to accept simultaneous and intermittent changes.
They cannot wait till each party finishes a single deliverable, and then passes it off to
another. The fact that process, mechanical engineer, electrical/instrument engineer,
system engineer and software engineer all work simultaneously. They use project
lifecycle management and project data management systems to keep an update on what
the other disciplines are doing. The emphasis is on file sharing, not file locking. It may
not make sense to record every micro design iteration in a blockchain, but introducing a
version to the blockchain when it reaches the stage-gate phase- 30%/60%/90% stage.
This could be the point where specific versions of the design deliverables are released for
fabrication/construction or delivered to a contractor in completed assignments.
There needs to be a way to verify that the physical state of the deliverable matches the electronic
state of the deliverable. This is where engineers will be critical to the advancement of the
technology. But we now need to prove that engineers cannot keep different versions of
deliverable. Decentralization may create a double-blind: transacting parties have no knowledge
of the engineer who comes to validate and approve ; and the engineer has no prior knowledge of
who they are adjudicating for. This concept of the technology/ design, is what makes the
blockchain’s involvement valuable as an incorruptible signatory for transactions.
EPC project execution brings together large multi discipline teams to design and build the plant.
With 3D plant technology and in particular PDS/PDMS/SP/BIM/STAD/TEKLA becoming more
widespread, openness to collaboration and new ideas is increasing across the industry. This will
expedite the implementation and use of Blockchain technology.
During the construction phase , it just takes more team intervention to clarify requirements and
make decisions meeting the industry and local standards/ requirements. All these requirements
and decisions start a series of interrelated Smart Contracts executed between client and different
members of the project team, main contractor, sub contractor , vendors to design, monitor,
approve, tender, install, certify and take handover of the built asset.
Project governance can also be captured on the Blockchain. Records of approvals in pre-
construction phase but also during the construction phase of the project for various issues
requiring local regulatory approvals.