Front-End Loaded (FEL) Pre-Engineering Services Prevents Premature Capital Investment
IR Process is a Design-Supply-Build processing engineering company with Subject Matter Expertise (SME) regarding powder handling & processing applications. One of the services IR Process provides for our customers is pre-engineering services, also known as Front-End Loaded (FEL) engineering services. Why are FEL engineering services important for many process improvements that a facility is considering? The answer is simply because FEL engineering services should provide an industrial facility with more accurate costs and potential risks associated with process improvements and expansions the facility would like to consider for a minimal investment.
Customer Request
An existing customer of IR Process requested an equipment cost estimate to design and supply a material handling, batching and slurry mixing system to supply the existing forming machines that make products for the building materials industry. This customer wanted to upgrade their existing systems because they were very labor intensive, and their current procedures created a lot of waste and housekeeping challenges. The manufacturing operation was in an old industrial building and during initial discussions with the customer numerous concerns were identified.
Based on similar systems previously provided by IR Process, we were able to provide a verbal, ballpark estimates of $1.5M for the equipment and $2.9M (or more) for a completely installed system. These amounts could shift up or down depending on the detailed requirements of the system and other design considerations. Our customer explained their company is cost conscious when modifying existing equipment and procedures because many of the products they produce are low-margin items so understanding the return-on-investment (ROI) is important.
The customer implied this was slightly above their vision of the costs but they could probably justify this expenditure if the system worked as they wanted. However, the customer wanted more assurances regarding the total cost of the entire project. IR Process was unable to guarantee pricing without some preliminary engineering to more accurately establish the specific equipment required, layouts, control requirements & other impacts of the system on the facility.
Facility & Process Pre-Engineering Evaluation
IR Process explained how we complete our FEL engineering services and that specific deliverables our customers want could be individually requested. It was important to note that the costs to complete these FEL engineering services would be about less than 1% of the total cost of the project but more importantly, completion of these services would go a long way to establish not-to-exceed pricing and manage risks that would provide a safeguard against costs spiraling out of control due to unknown conditions.
The customer agreed is was a good investment and retained IR Process to complete a modified FEL2 scope of supply. The scope of work would include:
- Clarification and documentation of process rates and batch accuracies
- Preliminary evaluation of material handling, conveying and processing options
- Selection of technologies and preliminary engineering design of the critical pieces of equipment
- Development of Process Flow Diagrams (PFDs)
- Evaluation of the facility for equipment location and infrastructure.
- Development of General Arrangement (GA) Drawings with 3D SolidWorks Software.
- Outline of a basic controls structure
- Completion of Piping & Instrumentation Diagrams (P&ID)
- Generation of Input/ Output Drawings
Key Findings & Project Impact
During completion of the FEL process, we discovered another group of individuals at the plant had initiated an OSHA Arc-Flash Assessment which became very helpful during our evaluation process. Information from the 3rd party retained to complete the Arc-Flash Assessment indicated the facility was currently at or near its maximum electrical load and that additional equipment should not be installed without larger transformers & significant electrical upgrades. We were able to reduce scope for the FEL to save the customer money until the electrical systems at the facility were upgraded.
The above is a great example of how the scope of a project could get out of control if the proper steps are not taken to understand all potential costs associated with process improvements. This customer still plans to implement the process improvements, but this scope of work has been delayed while the facility upgrades and increases their electrical systems. If the customer would have initiated orders for the equipment with IR Process, they would have invested capital dollars into items they could not have used until the electrical upgrades were made. This would have exceeded their operation budgets and would have created undesirable situations.
Applying a System-Specific Approach to Every Project
This project is one example of how IR Process partners with customers to evaluate process improvements before major capital decisions are made. By taking a system-specific approach, our process engineers help clients reduce risk, clarify scope, and sequence projects effectively. If you are evaluating a process improvement, planning a system upgrade, or need early-stage engineering support, contact our engineers to discuss your application or request a quote to begin defining the right path forward.