SIEMENS

According to an old Austrian saying talking brings people together. It’s the Austrian way of saying that shared aims can only be achieved by continually exchanging ideas. The more complex the goals, the more important it is for experts to regularly exchange information and incorporate new knowledge into the decision-making processes.

This also applies to gas-turbine power plants, which are highly complex facilities consisting of many components. Gas and steam turbines, generators, and auxillary systems need to be developed in parallel. All of these components are delivered as a package and must be optimally synchronized to ensure the best performance. Achieving this goal isn’t easy because technical requirements differ according to the region involved and customer demands.

In order to effectively manage delivery times and production costs, energy experts at Siemens developed the “Package Approach” management system a few years ago. The approach ensures continual information exchange among major participants. But this isn’t as easy as it sounds. “Often, hundreds of engineers work on the development of new components for gas turbines,” says Dr. Jan-Marc Lischka, who is responsible at Siemens Energy for improving the competitiveness of gas turbines. Market analysts, customer service representatives, procurement specialists, and many other experts are also involved in the process.

This growing level of complexity explains why structures have been created to ensure regular communication between all parties. Each part of a package is supervised by a manager and the entire package is overseen by a ‘Package Frame Owner.’ “Project participants meet every three months with the executive team from the business unit involved to discuss the project’s status and develop a joint product strategy,” says Lischka. Such conferences also take into account the current competitive situation on the market when addressing ongoing and future projects. For example, procurement managers know from the start which approach is being taken in relation to a new development and can thus align their purchasing strategy at an early stage or adjust it as changes occur.

“No gas turbine can be developed separately to meet the special requirements of an energy supplier or any other company,” says Lischka. “That would not be economically feasible and would take too long.” Nevertheless, the overall package is tailored to the demands of various markets and customers. For example, there is currently very little demand in Germany for base load power plants whose electricity production covers basic supply needs. Instead, energy companies are interested in power plants that can be run up to full capacity quickly in order to compensate for dips in the power supplied by plants based on renewable sources. “During the planning stage, we therefore have to take rapid starts into account,” says Lischka. “Such starts increase the load on certain components, which therefore need to be more robust.” The Package Approach not only incorporates the associated costs from the beginning but also considers delivery times for materials. Costs and delivery times have been lowered considerably as a result.

Things are different in the U.S., where gas power plants are undergoing a Renaissance due to the country’s low gas prices. In this context, Florida Power & Light (FPL) recently became interested in greener electricity production. To this end, FPL ordered three new SGT6-8000H gas turbines for a modernization project at one of its plants. The turbines require around one-third less fuel per kilowatt-hour of generated electricity than the units previously used.

The 60-hertz gas turbines, which are being manufactured at a Siemens plant in Charlotte, North Carolina, are scheduled to enter service in 2016. Thanks to the Packet Approach, it was possible to further develop the SGT6 turbines just-in-time for installation in a pilot facility. “We were able to offer exactly the type of product FPL was looking for at exactly the right time – at a price the company was willing to pay,” says Lischka. The new management approach has also secured the team that developed it a place among the finalists for the Siemens “top+ award 2012.” The team will be competing in the Cost Optimization & Finance Excellence category.