1. Innovation – Prof Nick Amott

2. Summary
 Cubic Melons
 LNG (with thanks to Prof Brian Cox)
 Who are Fluor?
 Why Innovation is Important
 Real Examples of Successful
Innovations
 Some Innovations that Didn’t
Work
 Your Role in Innovation

3. Cubic Watermelons
 Why?
 Developed by farmers in
Japan in 2001
 Response to customer and
supermarket concerns
 Now viewed as a novelty
item due to high price and
inferior taste!

4. Titan – Saturn's Moon
Photographs from the Cassini probe.

5. Titan (Saturn Moon)
 What is the white spot?
 Titan is a long way from
the sun with an
atmosphere of
methane not air!

6. LNG – Liquefied Natural Gas
 LNG - Natural Gas that has
been converted to a Liquid
 Gas is cooled through
expensive liquefaction process
to -162°C @ 0.25 bar
 LNG has much greater energy
density than compressed gas
making it more efficient to
transport
 Expensive production process
and storage equipment main
barriers to widespread
commercial use.
 Prelude 488 m x 74m, more
than 4.5 soccer pitches end to
end - $12.6 billion

7. LNG on Titan?
 The Innovators friend
 There are 1012 litres of liquid
methane on Titan
 Approx. ¼ of Earth’s reserves
are present in LNG form
 Why don’t we go and recover the
LNG?
 How would we get it to Earth?
 Cost of putting 1 lb of payload
into space is $10,000
 Neil Downie’s 5th law of
Innovation, “Every problem
contains an opportunity” – (but
maybe an opportunity for someone
else – your children's children!)

8. What is Fluor?
 One of the world’s leading publicly
traded engineering, procurement,
construction, maintenance, and project
management companies
 #124 in the FORTUNE 500 in 2012
 Over 1,000 projects annually, serving
more than 600 clients in 66 different
countries
 Workforce of over 43,000 men and
women executing projects globally
 Offices in over 30 countries on 6
continents
 100 years of experience
Fluor Corporate Headquarters
Dallas, Texas

9. 9
Comprehensive Services
Program/Project Management
Pre-Design Design Construction Start-Up
Operations &
Maintenance
Solutions
 Computer
Modeling
 Conceptual
Design
 Estimating
 Feasibility Studies
 Permitting
 Project Financing
 Scope Definition
 Siting
 Technology/
License
Evaluation
 Front-end
Engineering
 Detailed
Engineering
 Cost Control
 Planning &
Scheduling
 Sourcing &
Supply
 Systems
Integration
 Safety Planning
 Construction
Management
 Craft Staffing &
Training
 Equipment &
Tools Supply
 Field Mobilization
 Material Control
 Quality Control
 Safety Programs
 Contractor
Management
 Commissioning
 Engineering Support
 Precommissioning
 Systems Checkout
 Initial Production
 Plant Readiness
 Turnover
 Asset Performance
Improvement
 Facility Management
 Plant Operations &
Maintenance
 Small/Sustaining
Capital Projects
 Turnaround, Outages
& Shutdowns

10. Why is Innovation Important to Fluor
 One of Fluor’s guiding principles states that the company is always
looking for:
“Methods to Capture, Share and Apply our
Knowledge to deliver Customer Solutions”
 To be able to fulfil this principle Fluor must be innovative and
provide an environment for innovation to thrive
 Innovation also allows the company to:
• Gain a competitive advantage over our competitors
• Retain, attract, develop and motivate a workforce essential for success
• Ensure quality and fit-for-purpose solutions are delivered to our customers
• Build and sustain a global community for all our stakeholders
• To maximise and increase margins and profitability for the company and
shareholders
So what does this mean!
Do it better, faster, cheaper!

11. Better – Faster - Cheaper
 Innovate the “work process”
 Change the paradigms
 Use the tools
ROI
£/$/€

12. How do we improve the work process using the
available tools ?
• Objective – Turn a Process concept into a decision
making design and cost estimate better, faster and
cheaper
• Have a Clear Vision of the End Product
• Just Enough and No More (JEAN)
–RTFC
–Don’t Outdo Competitor Deliverables
–Neil Downie’s 4th law, don’t over-deliver
• Completed the FEED on a $120M Ethane Treatment
Project with over 20 major equipment items in less than
one month

13. Work Process for +/-30%Cost Estimates
Process Simulation
Heat & Mat Balance
Prelim Cost Estimate
Prelim Equipment /
Line Sizing
QuickPlantSM
•Process Flow Dgms
•Equipment Data Shts
•Equipment List
•Load List
FrontRunnerSM
IPE
Equipment Based
Cost Analysis
OptimEyesSM
Layout Studies
Critical Equipment
Sizing Checks
•I/O Count
•Concrete MTO
•Piping MTO
•Structural steel MTO
•Plot plan /elevation

14. Client Quotes
“You have a significant
competitive advantage over your
competition with this approach”.
Statoil Project Manager
“You’ve done in 4 days what our
other team have been doing for
four months”.
Project Estimator

15. Real Example – 3rd Generation ModuleSM Design
Evolution of Modular Construction
 1st Generation Modular Execution

16. Evolution of Modularization in Land Locked
Locations
 2nd Generation Modular Construction Execution
• 1st Generation plus:
• Equipment or PAUs (Preassembled Units)
– Equipment on module
– Modules around equipment

17. Where next – 3rd Generation modulesSM
 Get more into a module
 Reduce the space occupied by the module and plant by
optimising layout
 Use the developing hardware available to the full extent
 Patent the application to protect intellectual property

18. Site Envelope Statistics
Traditional
320,000 m2
2nd Generation
200,000 m2
3rd Generation
84,000 m2

19. Real Example – 3rd Generation ModuleSM Design
 Reduced TIC
• Reduced plot area lowers quantities
• Total labor hours down
• Work done in Shop
• Dramatic decrease in construction management
 Improved Safety and Quality
 Minimized Environmental Footprint
 Operations & Maintenance Needs Maintained
 Neil Downie’s 0th and 2nd law
• Think! (laterally, contradictions, outside the box)
• Surprises = Patents
 This is a success story!

20. Real Example – Sub-Sea Processing
 Allows production from offshore oil wells without needing
surface production facilities
 Includes
• Oil/Gas/Water Separation
• Multiphase Pumping
• Gas Compression
• Flow Assurance
 Advantages:
• Improves production from existing wells
• Allows production from previously ignored wells due to harsh operating
conditions
 Disadvantages:
• Reliability issues have stopped widespread adoption, however these
are being fixed
 Currently used in North Sea, West Africa and Gulf of Mexico

21. Some Ideas Do Not Work – The Segway
 Self-balancing electric vehicle
developed in 2001
 Described as the future of
transport and an innovation on
par with PCs and the Internet
 Solution to a non-existent
problem, i.e. towns and cities
designed for cars and
pedestrians and no space for
new types of vehicle
 Did not take into account
regulations – In UK not allowed
on pavements and not allowed
on roads
 Fine as a novel sight seeing
resource in Prague or Berlin!

22. Some Ideas Do Not Work – Windows Vista
 Launched by Microsoft in 2007 as a
replacement to Windows XP
 Highest market share gained was
19% compared to 75% for XP
 Problems included:
• Only 5% of computers sold could operate
all features
• File transfer was slower in Vista than
previous operating systems
• Most home and business software was
incompatible with Vista
• High price outside the USA
• Oh! And it messed up our home PC!

23. Fluor’s experience with software
 Do not change if it currently works
 No matter how much you test, some old and favoured
software will not work on the new system
 Sometimes the momentum of new software will force you to
change your operating system
 Do not try and create your ideal new software from scratch
 Neil Downie’s 1st Law of Innovation – Copy (modify/enhance)
when you can, innovate when you can’t

24. Some Ideas Do Not Work – Sinclair C5
 Battery assisted tricycle allowing
the C5 to be operated without
using the pedals
 Sold approx. 17,000 units making
the C5 “the best selling electric
vehicle” until 2011
 A number of design flaws:
• Cold weather shortened the battery
life
• Driver exposed to adverse weather
• Could not climb hills as the motor
was not powerful enough and
overheated easily
 Declared unsafe by the Department
of Transport

25. Your Role in Innovation
 Fresh and New to Situations
 Your first employer will be looking to you – challenge the paradigm
 Able to challenge ideas and conventions before becoming
“Stuck in your (Company) ways”
 Always be positive, use phrases like:
• “It might work because…”
• “Let me add something to your idea”
 Suspend Critical Judgement – The part of you saying …..
“It Won’t Work”
 Consider there may be more than one good way of completing a task
 Allow ideas to develop – Innovation is rarely perfect so add to, shape
and alter ideas
 “The Important Thing is to Never Stop Asking Questions”
Albert Einstein

26. Aims of the Royal Institution
Be Inspired (courtesy
of Prof Brian Cox)
 Royal charter 1800
 Diffuse knowledge
 Create inventions and
improvements
 Apply Science (Engineering) to
the common purposes of life
 We are Engineers, we are
empowered to be creative and
do good things!

27. Graduate Recruitment Process
Farnborough workforce looking to double in size;
Requirement for suitably qualified staff at all levels;
www.fluor.com/careers
Graduate Assessment Day