Utilization of Value Improving Practices (VIPs) on Pipeline Projects

Value Improving Practices (VIPs) are formal structured processes applied to capital projects and operating facilities to improve profitability or value above that attained through good engineering and project management practices (Reference [1]). VIPs are most commonly applied to projects resulting in chemical processing facilities, but not so frequently applied to cross-country pipeline projects. Based upon the authors’ experiences, this paper will describe the practical application of VIPs on pipeline projects and the significant benefits that may be expected. More specifically, the following fourteen (14) Kellogg Brown & Root (KBR) project VIPs will be discussed as to their exact purpose, and how and when they should be applied during the pipeline project life cycle: 1. Setting Business Priorities and Classes of Facility Quality; 2. Technology Selection; 3. Process Simplification; 4. Customization of Standards & Specifications; 5. Constructability; 6. Design to Capacity; 7. Waste Minimization; 8. Predictive Maintenance; 9. Process Reliability Simulation; 10. Energy Optimization; 11. Value Engineering; 12. Commissioning & Startup Planning; 13. Shared Learning; 14. 3D-CAD. This paper will continue with a more in depth discussion of two VIPs that have major applicability on pipeline projects: Technology Selection and Constructability. The relationship of the VIPs with BP’s Pipeline Cost Reduction Project will also be discussed.