Differences & Use of Vendor Contracts vs SLAs vs NDA in manufacturing projects

Project execution using Turnkey solutions

How Venwiz vendors can aid in effective project execution using Turnkey solutions

Large infrastructure projects are usually developed using various methods. One of these methods is turnkey project development. ‘Turnkey’ stands for anything that is ‘complete and ready to use immediately. When applied to project development, a turnkey project meaning remains the same. A turnkey project is one that is designed, developed and equipped with all facilities by a company under a contract. It is handed over to a buyer when it becomes ready to operate a business.
Obviously, the entity responsible for building a turnkey project does it for the cost as agreed in the contract. The work of the company may include design, fabrication, installation, aftermarket support and technical service for the turnkey project.

Benefits of turnkey projects

Turnkey projects are mutually beneficial for both the company that develops them and the client that eventually takes over the projects. Some of the major benefits of turnkey projects are as follows:

  • Cost saving: A client hires vendors that are willing to make projects at a fixed cost mentioned in the contract.
  • Time saving: As there is no need for clients to assign their time, energy and resources on developing a facility, they get time to focus on their own businesses, while vendors who are experienced in the field can take on building the Turnkey soltuion.
  • Hassle-free: As the vendor is dedicating their time and energy to build the turnkey solution for the project, the client is free from of legal and technical challenges - the vednor accounts for the same. This is an inherent feature of the project development, especially in India.
  • Access to expert knowledge and technical know-how: A client running a particular business may not be an expert in building and operating a manufacturing unit for the same. Turnkey projects offer them a chance to hire expert vendors in the concerned field.

Strategies by Venwiz Vendors to help clients improve energy saving: 

Case study in collaboration with M/s Bright Construction & Co

The vendor M/s Bright Construction & Co is an EPC (Engineering, procurement, and construction) Civil Contractor and works with large-sized infrastructure projects. They cover all aspects of civil construction work - from building construction to equipment foundation and structural fabrication works.

Between 2012-2014, M/s Bright Construction & Co were working for BHEL (Bharat Heavy Electrical Limited) on a project at OPaL Dahej. Their scope of work covered the entire civil work for the Black Start DG sets for the CPP (Captive Power Plant).

Challenge:
The client needed to lay a foundation, that was to be constructed in one go.

The dry weight of the 8.3 MW DG set was ~130 MT, which increased substantially when the machine was filled with oil and water. The foundation of the equipment was of dimension 13M (L) X 4M (W) X 3M (H).

Heavy volume foundation, such as TG (turbo generator)foundation - steel support and shuttering is used, and due to continuous, high volume work, shuttering is viable and economical.

However, for a single foundation such as the one the client required, similar solutions were not available. The weight of the foundation was estimated to be 400+ MT which without proper support during concreting can break the support structure and create hazardous situations along with huge cost and delay implications.

Solution:
M/s Bright Construction & Co along with client engineers studied the problem and decided to reinforce the shuttering support with densely packed adjustable pipes, thus creating the provision to adjust the support at varied zones differently.

In addition to that, the structure was made self-supporting, (in line with Newton’s 3rd Law) by running additional TMT bars tying up the opposite side shutter plates. Vertical TMT bars embedded in the foundation raft were also provided for additional strength to the shutter plates. After the casting was set, these vertical bars were removed.

For further safety and to avoid any traffic-related delays at the busy site, the concrete pouring was scheduled on a Friday night, when all other work would not hinder the RMC mixers from reaching the site, from the batching plant.

Thanks to all these intensive and careful planning, innovation and safety measures, the work was completed successfully with the best finish of the concrete. No leakage, bulging, honeycomb etc., appeared on the foundation.

Benefit to the client:
The client managed to get their project completed on time and without any cost overrun. Additionally, due to the quality of the work being good, the PMC was delighted. Further documentation, payment release to BHEL happened smoothly.

Case study in collaboration with M/s A S Automation:

A leading polyurethane (PU) foam company had an urgent requirement for an automation turnkey project, for which they were unable to find the right resources in their plant`s vicinity

Proximity and access play a vital role in project execution. Manufacturing companies located within the vicinity of industrial hubs find it easier to discover resources that can get the job done efficiently. Inversely, for companies located far away from industrial hubs, project execution becomes more complicated.

Challenge:

The client was using a machine that is working in legacy control (i.e. an outdated computing software and/or hardware that is still in use). All the control loops were manually handled using controllers and relays.

With the existing system, the client was not able to improve the process and with the limitation in technology, they also faced the challenge of data extraction and analysis.

Solution:

The client reached out to M/s A S Automation whose team was nearly 1500 km away from the plant. Despite the distance, M/s A S Automation managed to get the project executed successfully, by automating the entire process (Full Automation Control) which includes report generation, alarm generation, user controls and much more.
M/s A A Automation, upgraded the entire process into a closed-loop control system using the latest technologies. As part of the project different closed-loop control systems were taken up and used for execution such as chemical mixing, temperature control, maintaining foam concentration, excess tank fed to external sources, measurement at each stage etc.

Outcome:

Upon implementation, the client successfully came out of the legacy system. Usage of PLC (programable logic controller) gave them a technological advantage. This helped them in improving the process. The client was also able to view periodic reports, receive alerts and alarms, monitor user restrictions and controls etc.

The two factors affecting remote project execution:

  • Client’s accessibility to competent vendors away from the plant.
  • GST taxation policy for working in different states.

The clients were extremely satisfied and signed up with M/s A S Automation for repeat orders.

At Venwiz we realize the importance & impact we can have on your businesses and provide you a platform to search & discover the best vendors. Click here to begin your search now. 

 

 

 

Impact of the budget on the MSME sector of India

Venwiz hosted a session on the Impact of Union budget 2022 on MSMEs on 5th February 2022. During the session, we covered the important announcements relevant to MSMEs in the Union budget 2022, with our guest speaker CA Anil Kumar Gupta.

CA Anil Kumar Gupta is a practising Chartered Accountant, based out of Delhi. He heads Anil S Gupta Associates, a 40-year-old CA firm. He is a trusted advisor to listed corporates, unlisted MSMEs and foreign companies in India.

HVAC as a Service – Trends that are driving the industry

There has been an evident and growing need to work with more sustainable solutions in the manufacturing industry in recent years. The focus for manufacturers with regards to HVAC has been to make building operations more efficient, sustainable, and cost-effective. 

This has spurred the move towards an unexplored business model for HVAC manufacturers- HVAC as a Service (HVACaaS). 

What is HVACaaS or HVAC as a Service? 

Much like any manufacturing equipment required at a plant, HVAC is also traditionally bought and installed, following which it becomes the floor manager’s responsibility to ensure smooth operation. Maintaining these systems is always a concern for the maintenance manager and often, the breakdown of HVAC systems leads to a cascading effect as the subsequent processes get affected. 

In order to overcome this, HVAC as a service is introduced. The service provider will be responsible for maintaining the health of the equipment post-installation and commissioning. And with the integration with IIoT in the preventive and predictive techniques, real-time mapping of the equipment health is available. This reduces the load on the maintenance manager and also helps in preventing breakdowns, thus saving time and money. 

HVAC is one of the most energy-consuming and often the most neglected equipment in the industry. Apart from high energy consumption, water consumption is also high. A good HVAC system with the best technology, followed by proper temperature control and maintenance, will help companies reduce their operational and maintenance costs.     

In this article, we will explore a few HVAC trends that have been growing in the industry over the past couple of years. We will also review strategies implemented by our vendors for HVAC energy saving. 

HVAC trends in 2022:

To study the future of the industry, let's first look at the major shift that occurred during the covid-19 pandemic outbreak. The year 2020 brought the HVAC industry under the spotlight, with major establishments trying to review and assess the impact of HVAC units on the spread of Covid-19. W.H.O put out a roadmap and guidelines to address the same, which helped manufacturers realign towards driving safety and improving their HVAC systems.. Here are some of the trends that emerged:

1. Smart Technology 
In manufacturing plants, heating, ventilation, and air conditioning (HVAC) operation accounts for up to 60% of their entire energy consumption. 

Due to this, there was a pressing need to move towards sustainability and reduced energy consumption. One of the most significant technological growth outcomes in the HVAC industry has been a shift towards smart technologies. 

Automated maintenance systems are one such smart technological solutions that allow managers to control HVAC technology from a control room. This technology alone can help manufacturers reduce 30% in energy consumption. Likewise, the integration of other smart technologies such as IIoT in HVAC equipment, will boost the growth of the HVAC industry.

2. HVAC Predictive Maintenance

HVAC components require ongoing maintenance. If the maintenance is not undertaken, energy performance degradation can happen. Studies have shown that predictive and proactive maintenance help reduce HVAC energy consumption costs in the range of  5% up to nearly 40% percent, depending on the equipment and systems involved.

3. Data-driven Decision making

HVAC specialists are now transitioning towards using real-time metrics and data to help drive their decision-making. This is a shift from their traditional and instinctive mode of operation. Although HVAC specialists have their experience backing this instinctive decision-making, it can now be backed by data as well. This helps them tailor services specific to a system and situations. 

4. Zoned HVAC System

A multi-zone heating and cooling system that splits your spaces into smaller clusters. Each cluster or unit has its own operating mode and temperature set point. The major advantage of a zoned HVAC system is the energy-saving it provides which can reduce air conditioning costs by up to 30%.

Besides such trends, there are other factors to consider when shortlisting an HVAC service partner for your business. These include certifications, industry-specific requirements, and standards. For example

  • Industry-specific requirements for HVAC will be different and specific for every industry. The requirements for Pharma (Cleanrooms) differ from requirements for aerospace, oil and gas, steel, etc. these industries are heavy manufacturing industries and the installation/operation/maintenance of HAVC system will be different. They also need to consider systems that are explosion-proof and systems built for commercial Vs industrial spaces. 
  • LEED/GBCI/IGBC/GRIHA certified projects(No direct certifications) 

Unlike Calibration, HVAC does not require any mandatory certifications like NABL, but there can be energy efficiency-certified projects as listed above.

Strategies by Venwiz Vendors to help clients improve energy saving: 

Case study on M/s Technogreen Air Conditioning

M/s Technogreen Air Conditioning reduced energy consumption in the HVAC system for a client who is a leading pharma manufacturer. The team at M/s Technogreen air conditioning worked in collaboration with these clients across Pharma and other manufacturing industries for supply, installation, maintenance, AMC & turnkey solutions for HVAC systems including refrigeration, air conditioning, chillers, AHU, Cold storage. 

Challenge 1: 

The client was working towards sustainability and energy conservation. Analysis found that their HVAC system contributed to a majority of their power consumption. They needed a solution to reduce power consumption, without compromising the process temperatures.

In this particular case, M/s Technogreen air conditioning proposed the following solutions. 

Having worked with major manufacturing giants and gaining enormous experience in the field of HVAC, the team was able to

  • Study the existing heat load and optimize the compressor output
  • Conduct a season-wise study of heat load - During non-summer seasons, the filtered natural air is used for cooling. This implementation is quick and can be implemented without incurring huge investments

Outcome

The clients benefited drastically with a 20% reduction in energy consumption during the non-summer seasons. The vendor is appreciated for his work attitude towards reduction of energy consumption, without compromising the process and investment costs.

Challenge 2: 

The client had excessive individual ACs, thus increasing energy and maintenance costs and deteriorating the outdoor look of the building. In addition, the frequency of AC breakdowns is also increasing. 

Solutions by M/s Technogreen air conditioning: 

The Vendor accessed the existing occupancy and heat load. The vendor proposed to go for a larger compressor with multiple vents. The Client approved the proposal and it got implemented.

Outcome

The Client had control over the entire system as the problem of handling multiple systems was eliminated. The maintenance costs were also reduced. The Vendor is also appreciated for his proposal and project execution.

Case study in collaboration with M/s D B Engineers: 

The team at M/s D B Engineers worked in collaboration with their clients across various industries such as - Power & Energy, Metals & Mining, Chemicals, Pharma, Life Sciences & Medical Devices, Food Processing & Beverage, etc. The partners come with extensive expertise in HVAC systems and have worked with large organizations. 

Challenge: 

One of their clients was interested in the reduction of energy consumption of HVAC systems. This client had previously reached out to different vendors, but none of them provided a concrete solution for their problem. 

M/s D B Engineers figured out that the client was using an air-cooled, cooling tower which contributed to major power consumption. The team then suggested the client opt for a water-cooled cooling tower, given the plant did not have a water shortage issue.  

The outcome was that once the client installed a water-cooled cooling tower in a project executed by M/s D B Engineers, it resulted in a drastic energy reduction as per the client's initial requirements. 

At Venwiz we realize the importance & impact we can have on your businesses and provide you a platform to search & discover the best vendors. Click here to begin your search now. 

Reach us

Contact Us


Address

IndiQube Orion Co-working space, 24th Main Rd, Agara Village, 1st Sector, HSR Layout, Bengaluru, Karnataka 560102.

Call Us On

+91 9650001750

Whatsapp

Chat With us