IFS Enables Future Growth for Heerema Fabrication Group

Technology Category

Analytics & Modeling - Process Analytics
Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Cement
Oil & Gas

Applicable Functions

Facility Management
Procurement

Use Cases

Construction Management
Rapid Prototyping

Services

System Integration

The Challenge

Heerema Fabrication Group (HFG), a leading company in the offshore oil & gas and energy, engineering and construction industry, was facing a significant challenge. For over a decade, HFG had been using custom-built software for its primary business process. However, with the company's revised strategy of becoming a global EPC(I) contractor, the legacy software rapidly became obsolete. A new ERP software was necessary to support HFG's emphasis on becoming a global player in engineering, procurement, construction and installation (EPC(I)) and turn-key contracting. The company needed a solution that would support its core processes, facilitate collaboration with subcontractors, and provide project management support for EPC(I) projects. The challenge was to find a solution that would meet these requirements while also being financially viable.

The Customer

Heerema Fabrication Group (HFG)

About The Customer

Heerema Fabrication Group (HFG) is part of the Heerema Group, a leading company in the offshore oil & gas and energy, engineering and construction industry. The Heerema Group designs, constructs, transports, installs and removes offshore facilities for the global oil & gas and energy industry. Over the years, Heerema has become a significant international player in the offshore construction industry. The Heerema Group consists of two divisions: the Heerema Fabrication Group (HFG) and Heerema Marine Contractors (HMC). HFG specializes in the engineering and fabrication of large and complex structures, while HMC transports, installs and removes all types of offshore facilities. HFG has three yards around the North Sea, two in the Netherlands (Zwijndrecht and Vlissingen) and one in Hartlepool in the UK. In 2006, HFG acquired an engineering company in the US. HFG has more than 800 employees worldwide and over 2,500 subcontractors.

The Solution

After a thorough analysis of their needs and requirements, HFG selected IFS as their new ERP solution. The selection process included a workshop with an elaborate business case and scoring of the presented solutions by all project team members. IFS was chosen for its support for core processes, collaboration with subcontractors, and project management support for EPC(I) projects. After the selection, HFG started a small pilot involving all key users from the North Sea yards. The implementation began in the fall of 2007 at the Hartlepool, UK, yard and was expected to finish in 2009. One of the key success factors was involving IFS consultants in HFG's integrated project team. This approach ensured that the IFS consultants were fully committed to understanding HFG's business and delivering the desired results.

Operational Impact

The implementation of IFS not only meant saying goodbye to HFG's legacy systems, but it also led to a complete turnaround for their three yards. For the first time, key users from three different locations met their peers, shared their best practices and designed new procedures. This led to greater visibility of having integrated applications and improved procedures. The hard work of integrating procedures seems to be paying off more than expected. By sharing experiences and working as a team, spin-off projects have emerged, which is an unexpected benefit for HFG. The IFS consultants have become a natural partner to HFG, taking responsibility and showing commitment to the result.

Quantitative Benefit