PIP Steering Team Meeting / July 17, 2002

Process Industry Practices

July 17, 2002 Steering Team Meeting
Agenda

Guidelines for PIP Meetings All

Welcome New Members & Introductions Tony DiVietro and all
Validate Agenda Tony DiVietro and all
Approve Previous Minutes Tony DiVietro
Financial Report – 1H’02 Performance Bernie Ebert
Proposed Member’s Dues for 2003 Budgeting Bernie Ebert
Marketing Report Don Starr
WPT Update John Franzwa
WPT Proposal – Web Meetings John Franzwa
Implementation Task Team Report Bernie Ebert
Editorial Consistency Task Team Report Linda LaRose
Implementation Success Story – Burns & McDonnell Keith Chastain
Volunteers for October Success Stories All

Break

Process Industry Data Exchange (PIDX) Presentation Jerry Hubbard and

Greg Ardoin (Guests)
Globalization Ad Hoc Team Report Bruce Roberts and
Batuk Patel (Guests)

Lunch

New Function Team Leaders (Electrical, Vessel, Piping) Bernie Ebert

Practice Generation Proposals Bernie Ebert
Practice Revision Proposals Bernie Ebert
Attendance Report Information Nancy Rushing
Office Manager’s Report Nancy Rushing
Director’s Report Bernie Ebert
Identification of Mentors for New ST Members Tony DiVietro
Chairman’s Report Tony DiVietro

Adjourn

Post ST Meeting Orientation Session for New ST Members Bernie Ebert

Attendees

Wes Adams, Eastman

Greg Ardoin, Conoco (Guest presenter, PIDX)
Steve Boudreaux, PPG
Kenneth Brewer, FMC
Brian Bussey, CYTEC
Keith Chastain, Burns & McDonnell
John Clarkin, UOP
Robert Daniels, Parsons
Tony DiVietro, Degussa Corp.
Barry Doyle, Aker Kvaerner
Bernie Ebert, Director - PIP

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PIP Steering Team Meeting / July 17, 2002

Attendees (continued)

David Edmondson, Technip

John Franzwa, BP
Paul Gerstenberger, Solutia
Ken Hamilton, PIP Marketing Consultant (Part time)
Tad Honsinger, ChevronTexaco
Jerry Hubbard, OFS Portal (Guest presenter, PIDX)
Lou Kasprzyk, Atofina Chemicals
Linda LaRose, Shell
Melanie Longmore, Conoco
Ralph Miller, S&B Engineers
Batuk Patel, Dow (Guest presenter, Globalization)
Mahendra Patel, Bechtel
Bob Pennacchi, Huntsman
Bruce Roberts, Aramco Services Company (Guest presenter, Globalization)
Nancy Rushing, PIP Office Manager
Gary Scroggs, Arch Chemicals
Vinod Srivastava, Sunoco
Don Starr, Celanese
Mieng Tran, Rohm & Haas
Simon Vreeke, Aramco Services Company
Bill Wormington, Halliburton KBR

Notes

Reviewed the General Guidelines and Meeting Guidelines for PIP

Meetings

Introductions – Tony DiVietro & All

Self-introductions were made around the room. Guest speakers were introduced as they later
arrived.

Validate Agenda – Tony DiVietro

Tony DiVietro reviewed the agenda and noted variations of changes in presenters.

Approve Previous Minutes – Tony DiVietro

Kenneth Brewer made a motion to approve the April Steering Team Minutes. Paul
Gerstenberger seconded the motion. The motion to approve the April 2002 Steering
Team Minutes was approved.

Financial Report - Bernie Ebert

Bernie presented the 1H’02 financial report as linked below. He has updated the year-end
projections based on performance during the first six months. We still have three members who
are “overdue” on their dues payments. Follow-ups continue. We currently have one renewal of
subscriptions that is “overdue” but we have been advised that the payment is being processed.

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PIP Steering Team Meeting / July 17, 2002

Bernie reported that Keith Wells, Financial Chair, reviewed the report and there were no issues
unresolved. Basis the current report we should still have an approximate $850,000 balance at
the end of the year.

"PIP-Monthly
Reports6.XLS"

Proposed Members Dues for 2003 Budgeting – Bernie Ebert

Based on the revised year-end projections for 2002 income & expenditures and on the expected
cash balance of approximately $850,000 (vs. our approved reserve of $300,000), Bernie
proposed that PIP dues for 2003 once again be discounted by 50% from the official $25,000 per
year dues. All “paid up” members would receive invoices for $12,500 for 2003. The spreadsheet
linked below summarizes the income & expenditure history for PIP including the latest forecast
for 2002 (green highlighting) based on current projections and proposed reduction for next year.

"PIP_ANNUAL
INCOME_EXPENSE

Marketing Report – Don Starr

Don presented detailed notes from the Marketing Team meeting held yesterday, July 16. Some
key highlights include the following:

Marketing Brochure Update – We are “re-branding” our marketing approach to highlight

improved “knowledge management” opportunities with PIP Practices. A copy of the new
brochure developed by Molly Collins was passed around the room. It is much improved from the
past version and is currently being printed. First usage will be at the CII Conference in August.

Marketing Team Membership – The Marketing Team still could use two additional active
participants. Contact Keith or Bernie if you are interested.

PIP Membership Recruitment – Membership remains at 38. Bernie still has several
companies actively discussing possible membership.

Subscriptions –Canadian Natural Resources Ltd. has signed and paid for a subscription
to the Piping Practices. They are using these on a very large multi-billion dollar oils sands
project in Northern Alberta, Canada. Garlock has cancelled their subscription to Piping Practices
but have indicated they will return when their new company (EnPro) has further developed.

Licensees – We have mutually agreed to cancel the CEA License Agreement for the
P&ID Practice. Intergraph has paid for the third year of their License.

Canadian National Pressure Vessel Conference – The conference organizing committee

has clarified that they would very much like to have PIP make a general presentation at their
conference in February 2003. We have agreed that Bernie will make a PIP Overview
presentation emphasizing common industry practices and tied to a general summary of the PIP
Vessel Practices. Clay Rodery, BP, Vessel Team Leader might also attend and participate. We
are still trying to determine if we will have an opportunity to set up the PIP Product Display at the
conference.

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PIP Steering Team Meeting / July 17, 2002

Power Gen Conference – Bernie will follow-up with Chris Parker and Bob Cate (KBR) to
decide if it would be worthwhile for him to attend this conference later this year. The conference
is heavily focused on equipment and technology for power plants and draws a large number of
international attendees.

WPT Update – John Franzwa

There has been significant progress in updating the Operations Manual and looking at the MCR
process. Fred Turner is still looking for an improved search engine tool for the member’s area of
our website. Anyone who would like to participate should contact Bernie or Nancy. Other
initiatives continue to progress. The WPT is also looking for one or two additional members.
Kenneth Brewer agreed to join the WPT.

WPT Proposal – Web Meetings – John Franzwa

After considerable testing of tools such as Webex, Placeware, and Latitude and evaluation of
these options, the WPT is recommending PIP procure 15 Latitude licenses. Some Function
Teams and member companies already use this package. Advantages include no plug-ins,
reasonable cost per use ($0.25 per minute per user), and low annual license fee ($65 per
license). Latitude works in conjunction with and functions very similar to “meet me”
teleconferencing. A motion was made by Bill Wormington and seconded by Kenneth
Brewer to accept this recommendation for PIP to purchase 15 Latitude licenses. The
motion was approved unanimously.

Action Item: The PIP office (Nancy) will arrange for the 15 Licenses to be secured.

Implementation Task Team Report – Bernie Ebert

No one from the ITT has stepped up to take over the leadership role. The current team
members include Wes Adams - Eastman, Barry Doyle – Aker Kvaerner, Lou Kasprzyk - Atofina,
Gary Kott - Fluor, Linda LaRose - Shell, Bruce Roberts - Aramco Services, Bill Wormington -
KBR, and Bob Zerda - ChevronTexaco plus Nancy Rushing from the PIP office. Bernie
reviewed the ITT charter and summary status of each of the nine proposals submitted and acted
on by the PIP Steering Team (see link below). Almost all of the remaining work for the ITT is of
a “monitoring” nature. Since no one from the team has volunteered to take over leadership at
this time, Bernie has agreed that the new “technical support” PIP employee that is expected to
be on board in the September time frame would take over interim leadership of the ITT. The job
description already included a direct role in support of ITT and IRC activities.

"PIP ITT Charter

2-1.doc"

Editorial Consistency Task Team Report – Linda LaRose

The ECTT is meeting again and making progress including the development of a new “checklist
tool” – ADG001D (see link below):

•ADG001 reviewed and in very good shape

•ADG001D completed for use as an assessment tool
¾ For assessing existing Practices
¾ For creation of new Practices
•ADG001D is a TOOL… not another document for files

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PIP Steering Team Meeting / July 17, 2002

•Recommend pro-active coaching and education for FTs

•Three action options prepared for presentation to WPT and subsequent
recommendation

"Check List
ADG001D.DOC"

Implementation Success Story – Burns & McDonnell – Keith Chastain

Keith presented the Power Point slides (see link below) for his success story on the
Implementation of PIP Piping Practices into Intergraph PDS. He noted that while the Process
Industrial Group of Burns & McDonnell is the primary user of PIP Practices, they are also using
the Practices in their industrial (power) division and they are available for use in their Food &
Ingredients division. The initial focus by Burns & McDonnell on PIP has been on the 25 piping
Practices most frequently used by them. Their piping group is very pleased with PIP’s Practices
and has developed their own cross-reference to process service specs. A good discussion
followed and touched on the subjects of overlays, conversion to process service specs, and
OSHA record keeping requirements. Some discussion also was focused on possible
opportunities to work with Intergraph and multiple PIP members to develop additional licensing
options for use with Intergraph’s PDS package.

"Burns &
McDonnell_PIP Pip

Volunteers for October Success Stories – Bernie Ebert

Glen Stucki, Advanced Silicon Materials had previously agreed to present a success story at the
October Steering Team meeting. Ralph Miller, S&B Engineers also agreed to present a success
story in October. Thanks for the pro-active volunteering.

Process Industry Data Exchange, PIDX, Presentation – Jerry Hubbard

and Greg Ardoin (Guests)
Jerry Hubbard, Vice President OFS Portal, LLC (and Chairman of the PIDX Standards
Subcommittee) and Greg Ardoin, Sourcing Senior Coordinator, Conoco made a presentation
about PIDX, its relationship to API as a separately funded sub-committee and its ties to Trade
Ranger (an e-procurement site). They focused on the synergies of what PIDX is doing with what
PIP is doing. There appear to be significant opportunities in several PIP disciplines to develop
common nomenclature, standardized data structures, and equipment “attributes” to result in true
industry Practices. The following link provides access to the full presentation slides used by
Jerry and Greg:

"PIDX_PIP
17.07.02.ppt"

The Steering Team agreed that Bernie would continue working with PIDX to see if we can
develop a mutually acceptable memorandum of agreement for a forward path for PIDX and PIP

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PIP Steering Team Meeting / July 17, 2002

to work together. Bernie will keep the Steering Team advised of any recommended action to
ensure we are consistent with the members’ wishes.

Globalization Ad Hoc Team Report – Bruce Roberts and Batuk Patel

(Guests)
The active members of the current Globalization Ad Hoc Team include Bob Donaho - Dow
(team leader), Batuk Patel – Dow, Bruce Roberts – Aramco Services, Jim Steller – Shell, John
Franzwa – BP, Richard Sander – Atofina, Pierre Charlon – Atofina, and John Clarkin – UOP.
The team held several conference calls and had one face to face meeting to develop the current
follow-up report. The charter of this team was to establish the level of support for PIP
Globalization and to make recommendations to the Steering Team on a path forward.

Bruce started by recognizing that PIP has at least 11 new member companies and significant
changeover of Steering Team members from older member companies since the previous
Globalization Study Team reported out to PIP. Copies of the April 2000 original Globalization
Study Team Report were handed out to the Steering Team members present at today’s
meeting. The PIP office has copies of this report and will send to other Steering Team members
on request.

The Power-Point slides linked below were used to cover the following topics:

¾ History of PIP Globalization

¾ Charter of the Ad Hoc Team
¾ Process Used
¾ Survey Results
¾ Globalization Plan Overview (April 2000 report out)
¾ Globalization Experience (DOW)
¾ Implementation Issues
¾ Recommendations of Path Forward

"PIP Globalization
Ad Hoc Tm Presen

A motion was made by Kenneth Brewer and seconded by Bill Wormington to accept the
first recommendation from the Ad Hoc Team to form a permanent PIP Globalization
Committee. This was clarified to ensure that the Committee would be responsible for
developing specific future recommendations for Steering Team action or approval. These
future globalization proposals would be based on the remaining recommendations from
the Ad Hoc Team report and the previous Globalization Team report. The motion passed
unanimously.

The Steering Team is requested to send their nominations for the new permanent
Globalization Committee to the Director ASAP. Without volunteers, the
Committee cannot get started. Post meeting note: Bruce Roberts – Aramco Services
and Linda LaRose – Shell have volunteered thus far.

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PIP Steering Team Meeting / July 17, 2002

New Function Team Leaders (Electrical, Vessel, and Piping) – Bernie

Ebert
Electrical – From Scott Shannon (Aramco Services Company) to Larry Sims (KBR) and Richard
Kirby (Fluor-Daniel)
Vessel – From Bernie Shelley (DuPont) to Clay Rodery (BP)
Piping – From Jim Tesch (Kvaerner) to David Copenhaver (Eastman)

Action completed - The Steering Team recognizes, acknowledges, and accepts these
Function Team Leader changes. The Steering Team also recognized the substantial
contributions made by the outgoing Team Leaders over the past two years. This is
clearly in evidence with the availability of numerous new Practices in each discipline. A
big thanks to these folks for their leadership.

Practice Generation Proposals – All

There were no Practice Generation Proposals for consideration.

Practice Revisions Proposals - All

The following Practice Revision Proposals were considered:

CSA:

CVS02010 - Geotechnical Engineering Investigation Specification (Reaffirmation)

CVE02705 - Engineering Guide Double Contained Sewers (Pipe in Pipe Systems) (Withdraw)

Electrical:

ELSSG11 - Design and Fabrication of Electrical Power Center (Technical Revision)

ELSSG11D - Design and Fabrication of Electrical Power Center Data Sheet (Technical
Revision)
ELSGS11 - Design and Fabrication of Low Resistance Neutral Grounding Resistor 2.4 to 15 kV
(Technical Revision)
ELSGS11D - Design and Fabrication of Low Resistance Neutral Grounding Resistor 2.4 to 15
kV Data Sheet (Technical Revision)
ELSMT01 - AC Squirrel Cage Induction Motors (200 HP and Below up to 600 Volts) (Technical
Revision)
ELSMT01D - AC Squirrel Cage Induction Motors (200 HP and Below up to 600 Volts) Data
Sheet (Technical Revision)
ELSSG01 - Design and Fabrication of Low Voltage Metal Enclosed AC Power Circuit Breaker
Switchgear (Technical Revision)
ELSSG01D - Design and Fabrication of Low Voltage Metal Enclosed AC Power Circuit Breaker
Switchgear Data Sheet (Technical Revision)
ELTFT01D - Field Inspection and Testing of New Electrical Equipment Data Sheet (Technical
Correction)
ELIMT000 - Motor Installation Details (125 Details & Index) (Complete Revision)
ELIMTN00 - Motor Installation Details - Nameplate (Complete Revision)
ELIMTS00 - Motor Installation Details - Stand (Complete Revision)
ELIMTT00 - Motor Installation Details - Terminal Box (Complete Revision)

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PIP Steering Team Meeting / July 17, 2002

Machinery:

RESP003V - Specification for Vertical Centrifugal Pumps for Water Service (Reaffirmation)
RESP003S - Specification for Vertical Submerged Motor Centrifugal Pumps for Water Service
(Reaffirmation)
RESP003H - Specification for Horizontal Centrifugal Pumps for Water Service (Reaffirmation)

P&ID:

PIC001 - Piping and Instrumentation Diagram Documentation Criteria (Complete Revision)

Process Control:

PCTPLC01 - Programmable Logic Controller Testing Requirements (Withdraw)

PCSPLC02 - Programmable Logic Controller Instructions (Withdraw)
PCSPLC02D - Programmable Logic Controller Instructions Data Sheet (Withdraw)
PCSPLC01 - Programmable Logic Controller Specification (Withdraw)
PCSIP001 - Instrument Piping and Tubing Systems Specifications (Reaffirmation)
PCEPLC01 - Programmable Logic Controller Configuration Guidelines (Withdraw)
PCEFL001 - Flow Measurement Guidelines (Technical Revision)
PCDPLC01 - Programmable Logic Controller Documentation Requirements (Withdraw)
PCDPLC01D - Programmable Logic Controller Documentation Requirements Data Sheet
(Withdraw)
PCCIP001 - Instrument Piping and Tubing Systems Criteria (Reaffirmation)
PCCFL001 - Flow Measurement Criteria (Technical Revision)

Motions were made, seconded and approved to accept all of these PRPs.

Attendance Reports – Nancy Rushing

Nancy handed out the quarterly reports for Leadership Positions, Company Specific Information
and Function Team Reports (for sponsors and FTLs). Please advise her if you have any
comments. Reports for member companies not represented at today’s meeting will be sent to
ST members via US Mail.

Office Manager’s Report – Nancy Rushing

• The Function Team Leaders have agreed that the PIP office will look at creating a
check-list (references and other information) to be used for “approval” of a Practice that
is to be reaffirmed in the ADG-006 revision cycle.
• The question of should we continue to provide native files of published PIP Practices on
our website was discussed with the Function Team Leaders at their meeting yesterday.
There have been at least four significant users and opportunities identified for
continuation of this service. This includes feedback from at least one Steering Team
member. It was agreed that we will continue to provide native files of our Practices on
the website.
• Nancy summarized the final General Meeting 2002 report out. We came in at $4,184
under full budget of $62,500. There were 16 paying guests ($1600) to offset costs. The
cost for golf shirts was less than expected and meal costs were lower due to low turnout.
We had approximately 160 attendees signed up for the plenary session. There were 60
respondents to the feedback questionnaire. Overall feedback was very positive for all

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PIP Steering Team Meeting / July 17, 2002

sessions and activities. All presentation material and results are posted on the PIP web-
site at: http://www.pip.org/members/meetings/general/index.html
• Nancy acknowledged the creative work done by Molly Collins to redesign the PIP
marketing brochure, a copy of which was passed around the ST meeting room today.
• The PIP office is now beginning to use the new roster Access data base developed by
Fred Turner. Function Teams are still able to submit changes in Excel format.
• We have upgraded two computers in the office and have purchased a new PC projector
for our own use.
• Anne is working closely with the ECTT on editorial issues for improvements.

Director’s Report – Bernie Ebert

• We now have 18 member companies reporting adoption and implementation data
thanks to the additional input from Dow and Flint Hills Resources. Bernie presented
the Practices metrics as of July 10 as linked below:

"Web
Metrics_7-10-02.p

• Last night Bernie made the first orientation presentation for new Steering Team
members. Attendees included Wes Adams – Eastman, Steve Boudreaux – PPG, Lou
Kasprzyk – Atofina, and Gary Scroggs – Arch. The presentation was very successful
and feedback comments will be incorporated in future sessions.
• We have received a notice of Farmland Industries bankruptcy. They are a PIP
Subscriber who is paid up for 2002.
• We continue to receive copies of students’ feedback from new NIA-NITP sessions on
insulation Practices. Feedback has been very positive.
• The CII Executive Committee has agreed to allow international companies that do
not have a US presence to become members. A full membership vote of CII is
required to adopt this new policy. This could lead to future inquiries for PIP
membership from companies that do not have a US presence.
• CII is re-focusing their research topics toward “business results” as opposed to the
historical topics focused on “project results”. This will open business schools some
research opportunities with CII vs. past work done almost entirely by civil engineering
schools.
• Sunoco has named regular participation on all eight PIP function teams. This is a
very good response from our newest member company.
• The refractory team can still use additional participants. Contact Bernie or Syed
Rahman of Conoco if you have can provide a participant.
• The Steering Team Action Item List is continuing to be updated regularly. There has
been very little marketing progress on developing more licenses with systems
providers. The office will soon begin working on providing PIP acronyms to be
included on the website. There are no other major outstanding items since January
2000.

Identification of Mentors for New ST Members – Tony DiVietro

Based on feedback from recent new members, it is suggested that new member companies
contact the PIP Director to sort details of their needs and to identify an appropriate current ST
member to mentor on given subjects. This has worked for recent new members and we will
continue to keep this informal for now. Bernie will advise new members of the opportunity.

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PIP Steering Team Meeting / July 17, 2002

Chairman’s Comments – Tony DiVietro

Tony recognized the soundness of PIP’s financial position and the positive impact of once again
keeping the 2003 dues at ½ the official rate. He was very pleased with the new subscription
from CNRL for piping Practices. The new marketing brochure really looks good and has a fresh
message about the PIP value proposition. The Latitude web meeting tool is expected to provide
good value to PIP. Tony also acknowledged the excellent success story presented by Keith
Chastain and the presentation made by PIDX at today’s meeting. He also is pleased with the
decision for us to develop a permanent Globalization Committee. Finally, he once again noted
the importance of all members submitting their adoption and implementation data.

Post ST Meeting Orientation Session for New ST Members -

Bernie Ebert
A second orientation presentation was made for Steering Team members. Attendees included
Robert Daniels – Parsons, Paul Gerstenberger – Solutia, Melanie Longmore – Conoco, Ralph
Miller – S&B Engineers, and Vinod Srivastava – Sunoco. Once again the presentation was very
successful and feedback comments will be incorporated in future sessions.

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 Process Industry Practices
FINANCIAL REPORT
Period Ending: June 30, 2002

YR END PROJECTION
2002 INCOME/ OVER/UNDER PERFORMANCE
BUDGET COST BUDGET MTD YTD
BEGINNING BALANCE
Carried Fwd. From Prev. Yr. 649,292 649,292 0 0 701,617
Adj. To Carry Fwd. 0 0 0 0 0
Reserve 300,000 300,000 0 0 300,000
TOTAL $949,292 $949,292 $0 $0 $1,001,617

INCOME
Dues 525,000 460,000 (65,000) 12,500 421,487
Subscribers Program 250,000 250,000 0 34,000 218,000
Product Revenue 20,000 15,000 (5,000) 715 4,700
Other 0 1,600 1,600 0 1,600
TOTAL 795,000 726,600 (68,400) 47,215 645,787

EXPENDITURES
Salaries & Fringe Benefits 520,000 440,000 (80,000) 34,195 205,338
Staff Travel 40,000 40,000 0 1,826 14,155
Office Operations 50,000 50,000 0 6,183 27,934
Consultants 100,000 50,000 (50,000) 3,554 9,876
Meetings 170,000 170,000 0 8,584 95,182
Publications/Distribution 10,000 10,000 0 0 2,559
Projects 0 0 0 0 0
Equipment 10,000 10,000 0 2,500 2,500
UT Overhead 63,000 54,000 (9,000) 3,979 25,029
CII Overhead 63,000 54,000 (9,000) 3,979 25,029
TOTAL 1,026,000 878,000 (148,000) 64,801 407,603

NET ($231,000) ($151,400) $79,600 ($17,586) $238,184

ENDING BALANCE $718,292 $797,892 $79,600 ($17,586) $1,239,802

07/14/00 P 1 of 1
Worksheet in ST_mtgnotes_Jul02.doc.xls
 YEAR INCOME EXPENSES BALANCE BALANCE
YEAR CUMULATIVE

1993 $ 450,000 $ 184,680 $ 265,320 $ 265,320

1994 $ 325,000 $ 313,739 $ 11,261 $ 276,581

1995 $ 431,621 $ 339,907 $ 91,714 $ 368,295

1996 $ 694,259 $ 531,068 $ 163,191 $ 531,486

1997 $ 517,863 $ 518,132 $ (269) $ 572,165 ADJUSTMENT +$40,948 CARRY FORWARD

1998 $ 550,663 $ 437,881 $ 112,782 $ 684,947

1999 $ 671,331 $ 619,656 $ 51,675 $ 736,622

2000 $ 872,402 $ 850,507 $ 21,895 $ 803,292 ACCRUAL ACCTG. ADJ.(+44,775)

2001 $ 941,566 $ 743,241 $ 198,325 $ 1,001,617

2002 $ 795,000 $ 1,026,000 $ (231,000) $ 770,617 2002 BUDGET ESTIMATED 10/19/01(Inc. Rev. 1/

2002 $ 726,600 $ 878,000 $ (151,400) $ 850,217 2002 PROJECTION - 7/02

2003 $ 725,000 $ 1,000,000 $ (275,000) $ 575,217 2003 PROJECTION - 7/02 @ 50% DUES

First PIP Practices published November 22, 1994.

July 5, 2002
/02)

July 5, 2002
 PIP Implementation Task
Team Charter
In accordance with the direction from
the PIP Steering Team the PIP
Implementation Task Team is to be
reorganized to monitor and promote
adoption and implementation of the PIP
Practices by the Member Companies.
The ITT Charter is a continuation of
one of the initial charter items as
follows:
“Recommend Actions to
Facilitate & Drive
Implementation of PIP
Practices, In Order to Optimize
the Value Delivery”

Following are the ITT Proposals

developed in 2001 with descriptions of
how the ITT will continue to support
them:
PIP ITT Charter – July ’02 Page 1 of 2
 PIP Implementation Task Team Charter
Action on Proposals

Proposal #1 – Practices Premises

No further work is required of ITT. The premises will be used by the Editorial
Consistency Task Team (Proposal #6) to guide the recommendations that are
made to improve the consistency of the Practices.

Proposal #2 – Implementation Resource Center

Monitor and promote input from the Member Companies. Review the IRC
periodically to determine if improvements are needed. In the future, develop
recommended practices for adoption and implementation of Practices drawing
from the successful practices and lessons learned submitted by the Member
Companies.

Proposal #3 – Member Company Review

Monitor the Work Process Team’s development of the process for Member
Companies to develop addenda during the MCR.

Proposal #4 – Vendor Involvement

Work with the discipline Function Teams to develop a position paper or other
documentation of policies and methods to use to define how to obtain consistent
vendor input for the Practices.

Proposal #5 – Cost Issues Guidelines

Develop guidelines or a position paper that defines the PIP strategy for pursuing
lowest life cycle and/or lowest initial investment cost for the Practices.

Proposal #6 – Editorial Consistency

Monitor and support the WPT and ECTT in their effort to develop guidance and
work practices to produce documents of immediately recognizable quality and
consistency.

Proposal #7 – Project Execution Strategies

No further work is required of ITT. It is anticipated that the Editorial Consistency
initiative (Proposal #6) will improve the use of the Practices for all project
execution strategies.

Proposal #8 – e-Commerce
No further work is required of ITT. Marketing Team is handling.

Proposal #9 – Implementation Training

This is a future initiative based on results of the other initiatives above.

PIP ITT Charter – July ’02 Page 2 of 2

 ASSOC. PIP: Author/Editor Checklist ADG001D
ADG001
PAGE 1 OF 2
January 2002

Document: Date: Rev:

Check Requirements Comments

Off (Required for non-compliance)

1. Title is descriptive of the contents of the document and gives

information as to the intended audience (e.g. “Fabrication
of...” “Installation of...”, etc.).
2. Purpose clearly states audience and intended use. Scope
clearly states of topics that are and are not covered.
3. References are listed only when used in the body of the text.
References must be officially published and readily available.
Government regulations are referenced only to support
technical requirements.
4. Definitions include terms that deviate from an ordinarily
accepted meaning or dictionary definition.
5. The requirements section of the document follows the typical
work process and includes only those requirements for which
the audience (as defined in the Purpose statement) is
responsible.
6. Headings and subheadings are used at each topic or subtopic
and are descriptive of the content.
7. Requirements are stated one per numbered paragraph or list
item.
8. Contents of referenced documents are not copied.
9. Requirements are clearly stated without explanation or
discussion. (The exception is design documents directed to
design engineers. In this case the explanation or discussion is
contained in a “comment” paragraph format.)
10. Use of tables, lists, and figures are maximized to convey
information clearly.
Reviewer’s comments:

Editor:
FT representative:
Date:
Implementation of PIP Piping
Practices into InterGraph PDS

Process & Industrial Group of

Burns & McDonnell
Burns & McDonnell
„ Multi-Division Firm
„ Energy
„ Infrastructure/Environmental
„ Waste Consultants
„ Aviation & Architecture
„ Process & Industrial
„ Total Employees: 1600
Burns & McDonnell
„ Process & Industrial Group
„ Refinery
„ Chemical Process
„ Food & Ingredients
„ Industrial
„ Industrial Power Plants
„ Boiler Systems
Process & Industrial Group IT
„ InterGraph PDS for 3-dimensional modeling
„ InterGraph SmartPlant for Intelligent P&Ids.
„ Joined PIP in November 2001
„ Wanted to use PIP Practices wherever possible.
„ First Application: Piping Specifications
„ Emarian
„ Material Control Database
„ Software Platform for Integrating Piping
Specifications into InterGraph PDS
Process & Industrial Group IT
„ EMarian
„ Formerly an independent German company.
„ Acquired and now part of InterGraph family.
„ Material Control Database with Modules
„ Material Management
„ Requisitions
„ Procurement
„ Site Control
PIP Piping Practices
Implementation Process
„ Joined PIP November, 2001
„ Investigated Piping Specifications
„ Selected 25 Piping Specifications most
commonly used
„ Contracted with InterGraph for
Implementation of PIP Piping Practices
into InterGraph PDS via EMarian
Piping Specifications Implemented
PIP Title
1CS1S01 Class 150, Carbon Steel, 0.063" C.A. (Process)
1SA0S02 Class 150, 304/304L Stainless Steel, 0.0" C.A. (Process-PTFE Packing/Gaskets)
3SA0S02 Class 300, 304/304L Stainless Steel, 0.0" C.A. (Process - PTFE Packing/Gaskets)
1CS1J01 Class 150, Carbon Steel, 0.063" C.A. (Core -Process, Jacket-Steam)
3CS1S01 Class 300, Carbon Steel, 0.063" C.A. (Process)
1CS1S02 Class 150, Carbon Steel, 0.063" C.A. (Steam/Condensate)
3CS1S02 Class 300, Carbon Steel, 0.063" C.A. (Steam/Condensate)
9CS1S01 Class 900, Carbon Steel, 0.063" C.A. (Steam/Condensate)
1SA0B02 Class 150, 304/304L Stainless Steel, 0.0" C.A. (Process-PTFE Packing/Gaskets)
1SD0B02 Class 150, 316/316L Stainless Steel, 0.0" C.A. (Process-PTFE Packing/Gaskets)
1SD0S02 Class 150, 316/316L Stainless Steel, 0.0" C.A. (Process-PTFE Packing/Gaskets)
1LT0F01 Class 150, PTFE-Lined Carbon Steel (Process)
6CS1S01 Class 600, Carbon Steel, 0.063" C.A. (Steam/Condensate)
12CS1TO1 Class 125, Carbon Steel, 0.063" C.A.(Utility-Air & Water), Category D
12CG0T01 Class 125, Galvanized Carbon Steel, 0.0" C.A. (Utility - Air & Water), Category D
12PD0H01 FM Class 150, High Density Polyethylene (HDPE) Fire Water (UL/FM Approved - Underground)
1PU0C01 Chlorinated Poly Vinyl Chloride (CPVC), 0.0" C.A. (Process)
1PV0C01 Poly Vinyl Chloride (PVC), 0.0" C.A. (Process)
1PP0H01 Class 150, Polypropylene (Copolymer), 0.0" C.A. (Process)
1LP0F01 Class 150, PP-Lined Carbon Steel (Process)
1NC0B01 Class 150, Alloy 276, 0.0" C.A. (Process - PTFE Packing/Gaskets)
1NU0B01 Class 150, Alloy 20, 0.0" C.A. (Process - PTFE Packing/Gaskets)
1SA0J01 Class 150, 304/304L Stainless Steel, 0.0" C.A.(Core-Process, Jacket-Steam)
1LK0F01 Class 150, PVDF-Lined Carbon Steel (Process)
1SP1S01 Class 150, 2205 Duplex SS (UNS S31803), 0.063" C.A. (Process)
3CS1J01 Class 300, Carbon Steel, 0.063" C.A. (Core - Process, Jacket - Steam)
Implementation by InterGraph
„ Contracted for inputting PIP Piping Practices
into the Emarian Database
„ Short Schedule
„ InterGraph used international engineering
firm to perform actual input.
Benefits and Concerns of Contracting
Input of PIP Piping Practices into PDS
„ Benefits
„ Single source point of responsibility
„ Knowledge of InterGraph PDS System &
Emarian
„ Concerns
„ Original schedule not met
„ Appartently one of the first times PIP
Piping Practices input into Emarian & PDS
by InterGraph personnel.
Current Status of Implementation
„ All 25 PIP Piping Practices input as contracted
„ Tested Specifications
„ Loaded into PDS
„ Placed components in PDS Models
„ Testing for all specifications not complete

„ Currently using 8 PIP Piping Practices on a

project
PIP Piping Practices Successes
„ Generally very complete
„ Commodities input and use, few problems
„ Piping
„ Fittings
„ Flanges
„ Valves
„ Lacking valve manufacturers and model numbers
requiring some research on our part for input
„ Piping Specialties
„ Had to add certain items specific to project
„ Vents, drains, strainers
Summary
„ Burns & McDonnell is a member and becoming
active in PIP
„ PIP Piping Specifications is our first
implementation
„ Limited internal resources caused outsourcing of
implementation into PDS
„ Currently installed and using PIP Piping
Specifications
„ Will use as default unless mandated otherwise by
client
„ We hope to use in other divisions (Energy)
 PIDX Overview

Classification Standards
And
Content Management
Houston, TX
July 17, 2002

Greg Ardoin - ConocoPhillips

Jerry Hubbard – OFS Portal
Petroleum Industry Data Exchange

• A committee of the American Petroleum

Institute
• Membership open to all members of the
oil and gas industry
• Original mission associated with EDI
• Current mission associated with product
classification and transaction standards
 PIDX Mission Statement

• To create and maintain classification

and transaction standards to enable
the exchange of electronic
information in a structured and
consistent manner
 PIDX Critical Success Factors

• Participation of PIDX membership

• Funding of a PIDX secretariat
• Funding of a management tool
• US industry adoption
• International industry adoption
• Marketing and promotion
 PIDX
Members
 The Business Need

As eCommerce becomes a reality...standards and classification are

necessary

Level of IT integration Need for standardized data

structures
now
Integrated
Supply Chain International Standards
mid90’s for eCommerce
IT-integration
of different units Common data Conglomerate Standards
in conglomerates structures are
early90’s
needed to facilitate
Integrated
Standard Software an easy data exchange Company Standards
for individual Companies between inter linked
80’s units
IT-support
of individual Process Standards
business processes
 Keys to eCommerce
Content is the Foundation
Customer

Complex products/services
require interaction between
buyer and supplier
Standards are a must for
interoperability
B2B

Quality content is a must for

e-commerce to function

Supplier
 The Market
Market Focus Complex
Collaboration
Products/Service

Catalogable Configurable Custom

80% of the
8800%
%oofftthe
Transactions heVVaallue
ue
Content
 A Brief History of Content

• Early content providers focused on buyer inventories rather than

supplier content
– Legacy description issues
– Taxation issues
– Early ERP software loading issues
• In 1998 the focus changed to supplier content
– Maturation of ERP systems
– Advent of eProcurement systems
– Recognition that eCommerce requires quality content
 Market Motivators

• The Buyers are being motivated by:

– Implementation of ERP and eProcurement systems
– The promise of eCommerce paybacks
– A competitive edge (and not wanting to be left behind)
– A realization that partnering with suppliers through
electronic data exchange makes good business sense
• The Suppliers are being motivated by:
– Pressure from their Buyers
– Implementation of ERP and eProcurement systems
– A competitive edge (and not wanting to be left behind)
The ERP Content Solution Myth

• Unfortunately, many ERP systems were purchased without due

regard for the quality of content required to realize their full
functionality

• Quality content is the engine that drives eProcurement and the

foundation for the paybacks

• Now that many Buyers are starting to fully use their ERP
systems, quality content is becoming very important to success
 Legacy Data Unmasked

• Most suppliers have multiple legacy systems in

multiple locations
• These systems usually contain unstructured,
incomplete and sometimes inaccurate descriptive
information
• Nomenclature is poorly applied
• Units of measure are missing
• Descriptions are stark at best
• Content rationalization is required for sourcing
 The Power of Standards

• Standards allow trading partners to speak the same

eProcurement language

• Standards protect suppliers from being forced to

maintain multiple descriptions for the same item

• Standards reduce the amount of individualized

mapping during transactions
 What content is needed,
and when?
Sourcing Ordering Fulfillment

Identification Selection Order Delivery Invoicing Payment

Noun-Modifier BASIC
Content
Vs. Use SIMPLE

COMPLETE
 Simple Data for Fulfillment
Complete
High Simple Data
Data

% of Complete
Market Product
Needs
Information
- required to
enable an
intelligent
buying decision
Low

Time
 Basic Content

• Used for fulfillment purposes only

– Contains commercial but no technical attributes
– Contains a minimum of a part number, a price and a
short description extracted from the legacy system
– Example:
• Part Number: BH1234
• Price: $75.00
• Description: GV 6 150 CS
 Simple Content
• Used for either fulfillment or ordering
– Contains commercial but no technical attributes
– Is assigned to a Noun/Modifier template
– Contains a minimum of a part number, a price, a
Noun/Modifier and a short description extracted from
the legacy system
– Example:
• Part Number: BH1234
• Price: $75.00
• Noun/Modifier: Valve, Gate
• Description: GV 6 150 CS
 Complete Content

• Can be used for fulfillment, ordering and sourcing

– Contains commercial and technical attributes
– Is assigned to a Noun/Modifier template
– The legacy description is fully rationalized
– Example:
• Part Number: BH1234
• Price: $75.00
• Noun/Modifier: Valve, Gate
• Description: Size: 6 in, Rating: 150 psi, Material:
Carbon Steel
 PIDX Product Classification
Standards
• Approximately 1,500 upstream oil templates developed by OFS
Portal, Trade-Ranger and oilfield product subject matter
experts were populated into the PIDX CatMaster tool in
Provisional Status.

• Approximately 3,000 midstream and downstream templates

developed by Trade-Ranger but not yet reviewed by supplier
subject matter experts will be populated into the PIDX
CatMaster tool in Draft Status.

• PIDX product classification template development and

management process is operational.
Product Classification
System (Taxonomy)
Technical Attributes may be
Mandatory or Supplemental

Noun-Modifier
PIP – Process Industry Practices
Carbon Steel Gate Valve
Trade Ranger – TROCS v6
Gate Valve
 PIDX Transaction Standards
• Eleven eXtensible Markup Language (XML) schema documents
developed for the oil and gas industry including:
– An Implementation Guide
– A Business Case
– A Maintenance and Development Process

• All were balloted by PIDX and ratified by the General Committee

as API Recommended Practice 3901, Version 1 – Parts I-IV.

• All are available today as open and non-proprietary standards

 PIDX Transaction Standards
• The available XML schema documents are:
– Request Requisition Return
– Quote Request
– Quote
– Quote Notification
– Order Create
– Order Change
– Order Response
– Field Ticket
– Field Ticket Response
– Invoice
– Invoice Response
 Service Forms Project
Goals and Deliverables
• Goals
– Information required to prepare a proposal
• Post award
– Electronic information exchange standards
• XML schema documents
– Consistent nomenclature
• Reusable components
• Deliverables
– Library of reusable components
– Updated Implementation Guide
– Updated Maintenance Guide
– Updates for UNSPSC Segment 71
– Update for PIDD
 PIDX Service Forms
• Service information forms are buyer to supplier XML documents
that provide details of:
– Well data
– Logistics
– Location
– Project management
– Project financial information

• Not a proposal response form but a way to electronically distribute

well information machine to machine
 Complex Services Forms Process
Post Award

Industry Standard Supplier Buyer Invoice

XML Document, Determined Reconciliation
attached to RFP Format Documents

PIDX
Complex Proposal Field
Services •Line Item Detail
Approval Invoice Payment
•Pricing Ticket
Forms

Well Data
Location
Logistics
Project Mgmt
Financial Products Services Contract

Industry Standard Sales Discounts Agreements

Classification Templates Punch-out Pricing Configurators
 Service Forms Developed

• Cementing Services
• Coiled Tubing Services
• Completion Services
• Logging Services Cased Hole
• Logging Services Open Hole
• Perforating Services
• Stimulation Services
• Oilfield Transportation Services
• Well Drilling and Drill Bit Services
• Well Testing Services
 Service Forms
Next Steps

• PIDX balloting will occur during summer

• Ratification as API Recommended
Practice by PIDX General Committee in
September
• All will be available on PIDX website in
October
 PIDX Next Steps
Complex Service Components
• Complex Products and Services are unique solutions and not
candidates for standardization

• Service components such as Labor, Equipment, and Third Party

Rentals allow for building templates and a standard nomenclature

• PIDX has initiated a project to develop service component

templates

• Participation by the UK government and North Sea buyers and

suppliers will allow the development of global standards
 CONVERGENCE

• Classification and transaction standards are being

concurrently developed today by industry verticals
and international standards bodies…
• Convergence between industry verticals in a global
fashion is necessary for the promised e-commerce
returns to be realized…
• PIDX, PIP, FIATECH, ISO 15926, UNSPSC,
ECCMA, Trade-Ranger, POSC, FPAL,
eCl@ss, GCI, CIDX, RAPID…are just some of
the players
 Globalization of PIP

July 17th., 2002

PIP Steering Team Meeting
(Presented by the Ad Hoc Team)

1
 Globalization of PIP
„ History of PIP Globalization
„ Charter of the Ad Hoc Team
„ Process Used
„ Survey Results
„ Globalization Plan Overview
„ Globalization Experience (DOW)
„ Implementation Issues
„ Recommendations on Path Forward
2
 History of PIP Globalization

„ 1999 - Globalization Study Team

Created
„ Representatives from Global Companies
„ April 2000 - Final Report presented to
ST
„ Fall 2000 - ADG009 work began
„ May 2002 - Ad Hoc Team formed

3
 Charter of Ad Hoc Team

„ Establish Level of Support for PIP

Globalization
„ Make Recommendations to ST on path
forward

4
 Process Used

„ Solicited members for Ad Hoc Team

„ Surveyed Ad Hoc Team Members
„ Reviewed the April 2000 Globalization
Plan
„ Discussed the survey results and the
Plan
„ Developed Recommendations

5
 Survey Results

„ Little Globalization of Corporate

Standards (except Aramco and Dow)
but major initiatives to do so (Shell and
BP)
„ Negligible Globalization of PIP Practices
„ Very limited resource availability
„ EPC input to survey needed

6
 Globalization Plan Overview

„ Charter
„ Key Benefits
„ Key Barriers
„ PIP’s Relationship to other SDOs
„ PIP’s Place
„ Strategy (Near Term)

7
 GST Execution Plan
„ Summary of the Plan – 1 page
„ Descriptions of Plan Steps – 5 pages
„ Charts of the Plans – 4 pages
„ Each is divided into a:
PIP Management Plan (near-term)
Function Team Plan (long-term)

8
 Charter
„ Identification of Benefits and Barriers to
Globalization
„ Develop Strategy
„ Develop Execution Plan
– Timetable
– Resourcing
– Short and Long Term Program
„ Presentations and deliverables
9
 Key Benefits
„ Harmonization leads to reduced cost &
increased quality of products sourced
worldwide
„ Expanding knowledge base increases
technical and quality assurance
„ Share of maintenance costs reduced
„ Alignment with current trends to
globalize
10
 Key Barriers
„ Members lack of knowledge and experience
with SDO’s and “foreign” standards
„ Lack of technical resources
„ PIP viewed as threat
„ “Not-invented-here” syndrome
„ Need to recognize regional codes and
international equivalents
„ Electrical is the exception rather than the
rule 11
 PIP Relationship to Other SDO's:
Applicable Technical Requirements

Jurisdictions/National Laws
Global Function of PIP

ISO

ANSI

Examples Only
Region Codes NEC IEEE ACI ASME API ISA
Local Codes ASCE
(CEN, IBC, ...)
Primary PIP Function

PIP Practices

Company A Company B Company C Company D Company E

( Project Specifications )

Company A Company B Company C Company D Company E

( In-house specifications, PIP overlays, etc. )
12
PIPGlobal
 PIP’s Place

„ Collect & Harmonize practices

„ Work with SDO’s to integrate owners
technical requirements
„ Migrate US requirements into ISO
„ Barrier may be getting “credit”

13
 Strategy (Near Term)

„ Achieve PIP acceptance worldwide

through collaboration with SDO’s
„ Demonstrate PIP credibility in US
„ Establish Globalization Committee
„ Conduct international survey
„ Establish working relationships with SDO’s
„ Develop Global practices guidelines
„ Restaff and train function teams
14
 Globalization Experience
(DOW)
„ Case for Change
„ Organizational Structure
„ Work Process
„ Results
„ Lessons Learned
– Global Discipline Technology Teams and
Technology Resource Networks
– Provide for Global and Local situations
– Data driven and justified
15
 Implementation Issues

„ PIP Commitment
„ Member company agreement to stay
the course
„ Creation and support of Globalization
Strategy ( Vision, Mission, Goals, Action
Plans)

16
Recommendations for Path Forward

„ Create a permanent Globalization

Committee
„ Conduct a worldwide Globalization Issues
Survey
„ Establish SDO relationships
„ Complete ADG009
„ Re-staffing and training of FTs’

17
 PIP Published Practices
July 10, 2002

600 Total Planned Practices

500
Pu b lishe d Pra ctice s

404 419
400 362
300
229
200

100 87
55
13 23
0
1995 1996 1997 1998 1999 2000 2001 2002
 Practices by Discipline
July 10, 2002

250 235
Number of Practices

Published 202
200
Planned

150

100 89 85
66
58
50
3239 39 38 33
15 20 19
78
0
CSA CIR ELEC MACH PC PIPE VESS WPT
 Critical Mass
The number of PIPs in each discipline
that can provide the core of a typical
project’s required specifications

400

300
314 331
200
PUB TOTAL
100 CM CM
0
7/8/02
 Critical Mass by Discipline
Through July 8, 2002

180
161
160 154
Number of Practices

CM Published
140 CM Planned
120
100
80
5961
60
4649
40
2020 1520
20 1010 1010
0
CSA CIR ELEC MACH PC PIPE VESS
 Member’s Adoption Data
Basis Members Reporting Through June 2002

• Adopted 44%
• Adopted, not yet implemented 20%
• Plan to adopt 20%
• No adoption plan, no application 2%
• No adoption plan, large addenda 4%
• No adoption plan, “other” 7%
• Undecided 22%
 Member’s Implementation
Data
Basis Members Reporting Through June 2002

• Implemented 24%
• No addenda 81%
• Minor addenda 12%
• Significant addenda 8%