Providence Process Solutions
Professional Service Offerings
Craft Brewery 3-Phase Service Offering Overview
I have designed my business model to support a three phase design / build approach. This three phase design / build
solution includes:
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Phase 1, (1 - 2 Months) – Beverage plant design definitions and financials.
Phase 2, (3 - 6 Months) – Beverage plant layout and process systems design.
Phase 3, (6 - 9 Months) – Project management, equipment ordering & installation.
This approach will provide a brewing company with the ability to navigate through their financial decision making process
in phases allowing them to make informed “Go”, “No-Go” decisions at the completion of phases 1 and 2, before
proceeding with the actual build process outlined in phase 3.
The remainder of this document will outline each phase in detail. Please feel free to contact me if you wish to discuss
any of these services in more detail or would like to create a custom program specific to your current or future brewing
needs.
Sincerely,
Vernon J. Spaulding
President / Owner
Providence Process Solutions, LLC
C: 262-770-1292
E: vern@prov-ps.com
Providence Process Solutions, LLC - vern@prov-ps.com - Cell: 262.770.1292
Providence Process Solutions
Professional Service Offerings
Phase 1 Overview
Phase 1 Objective – Phase 1 was designed to provide a customer with a set of General Accepted Accounting
Practice, (GAAP), approved set of financials. These financials are created in Microsoft Excel and delivered to the
customer in a .PDF format. Data used to complete these financials will be procured via phone conference calls and
WebEx Internet communications with the beer manufacturer. The deliverables associated with phase 1 is used to
assist the beer manufacturer with enough data to determine if their project is feasible and whether a phase 2
deployment will be pursued.
These communications will take several hours of time and we will cover a variety of operations related subjects
specific to beer types, process requirements, production schedules, production capacity requirements, and
packaging requirements. In addition, a variety of commercial and financial discussions will take place specific to
forecasts, distribution, production costs, sell prices, loan portfolios and investor interests, and timing.
Phase 1 Overview:
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Workbook Primer – Workbook navigation instructions.
Break-Even Analysis – Calculates BE by the BBL's per year.
Balance Sheet – Includes assets, liabilities and equity over 5 years.
Source & Use – Includes cash sources and uses over 5 years.
5 Year Income – Includes traditional financial categories.
Cash Flow – Defines net cash flow from operations over 5 years.
Debt Schedule – Defines debt sources, amounts and 5 year interest & principle payments.
Depreciation Schedule – Defines yearly asset depreciation and 5 year accumulations.
Start-Up Costs – Defines total estimated start-up costs including equipment costs.
Equipment Costs – Includes all process equipment costs, freight, rigging, start-up.
Shareholder Presentation – PowerPoint format including all key financial highlights.
Phase 2 Overview
Phase 2 Objective – Phase 2 was designed to provide a beverage manufacturer with a set of detailed engineering
drawings that include a plant wide process functional specification, plant process equipment layout drawings, a
production and utility requirements workbook, process piping flow drawings, MEP & structural facility requirements
document, electrical drawings, supplier contracts, architectural firm and general contractor coordination, and a
project plan.
These documents would be used to support shareholder funding meetings, plant renovation requirements, and
equipment qualification testing for final vendor payment releases. A more detailed description for each service is
listed below.
Just like phase 1, phase 2 was designed to provide all the technical information and cost validations necessary to
proceed with phase 3 build process. A beer manufacturer may choose to proceed with phase 3 at the completion
of phase 2 or may choose to place the project on hold until specific commercial conditions are met.
Providence Process Solutions, LLC - vern@prov-ps.com - Cell: 262.770.1292
Providence Process Solutions
Professional Service Offerings
Phase 2 Deliverables
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Process Automation Specification, (1 Month) – This document defines how all equipment is to operate with
heavy emphasis on the brew house tank functions. The document defines all process automation equipment
vendors, model numbers, for PLC’s, HMI’s, VFD’s, standard industrial control, and all instrumentation. This
document is then used as a basis for designing the automation system and is used as an operational checklist
during equipment commissioning to verify that all equipment is operating to the beverage manufacturer’s
requirements before final payments are made to process automation and equipment suppliers.
Plant scope for this service includes the grain room, brew house, fermentation cellar, filtration systems, heat
pasteurization, packaging lines and storage systems. All secondary process equipment like boiler systems,
Co2 systems, compressed air systems, glycol chiller systems, coolers, and bulk grain / spent grain storage are
all included in this plant wide specification.
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Plant Layout Drawings – This AutoCAD document will include both initial and long-term equipment layouts
and include mill room, brew house, spent grain management, beer fermentation, filtration, pasteurization, CIP,
packaging, and inventory equipment. In addition, all secondary equipment like boilers, glycol refrigeration,
carbon dioxide, compressed air, oxygen and nitrogen will also be included in this service and all designed to
optimize floor space, limit pipe runs, and increase overall process efficiency. Note: This service is best served
when an existing building drawing is available from a local architect by which process equipment can then be
placed within.
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Production and Utility Requirements Schedule – This Microsoft Excel workbook defines a 24 hour
production day based on a 1-6 batch per day scheme. Once properly defined, equipment production capacities
can be defined like boiler size, Co2 vaporizer size, all process tank sizes, and packaging equipment sizes.
These sizes then define our fluid loads, which in-turn, define our process piping sizes. The production schedule
workbook also defines natural gas, water and sewer usages which is required by most local utility service
providers. This workbook supports the plant equipment layout.
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Process Flow Diagrams – These AutoCAD based drawings define all process gas and fluid flows, process
instrumentation required, process valves and all motors and pumps. A separate set of drawings are created
for process fluids like wort, beer, etc., Co2 / oxygen / nitrogen, compressed air, chilled glycol, steam, CIP, and
process water. These drawings are used by the local pipe installers as a guide by which they are to install all
such piping so that accurate contractor bids can be provided for all piping, piping apparatus, and pipe
installations. These drawings can also be used to procure process piping permits through local regulatory
agencies. Note: These diagrams cannot be created unless a process automation specification, plant layout
drawings and a production and utility requirements schedule have been created.
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MEP & Structural Facility Requirements Document – In addition to creating all electrical drawings, (service
listed below), this service includes assisting the architect with the development of mechanical and plumbing
specifications as they relate to the brewing process equipment physical facility space requirements. Specifics
include: air turns per hour, and filtration specs for HVAC, Class II Div II requirements for the mill room, water
sink and COP hose bib locations and flow rates, and all process equipment floor drain requirements. Note:
This service can only be provided after the services listed above have been completed.
Providence Process Solutions, LLC - vern@prov-ps.com - Cell: 262.770.1292
Providence Process Solutions
Professional Service Offerings
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Complete Set of Electrical Drawings – This service includes the design of all facility electrical loads including
lighting photometric drawings, power distribution drawings, grounding and bonding instructions, panel
schedules, incoming transformer requirements, line voltage drop analysis and a detailed electrical subcontractor bidders specification. All drawings are provided in AutoCAD and ready for local certification stamps.
It also includes, (at the general contractor’s request), a review of all electrical bids for accuracy and electrical
contractor selection recommendations. Bidder Q&A is also included. Finally, all high dollar power distribution
and lighting equipment is pre-designed, and quoted directly from an electrical distributor to the beverage
manufacturer in order to save the beverage manufacturer money.
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Supplier Contracts – Once all process design documents have been completed, customer selected process
equipment supplier contracts will be solicited. Note: If the beer manufacturer agrees to use Providence Process
Solutions Preferred Partner suppliers, phase 3 project management costs can be reduced by as much as 50%.
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Architectural and General Contractor Coordination – This service is optional and can include the solicitation
of contracts from up to 3 separate architects and general contractors for detailed review and recommendation
to the beer manufacturer as to which firms to hire. Providence Process Solutions would coordinate the
scheduling of existing building inspections or new building design concepts along with all the necessary
information required to design a building or renovate an existing building so that the building can properly
support all process equipment and utility requirements. Providence Process Solutions will then work with the
beer manufacturer approved architect and general contractor to solicit building construction / modification costs.
These costs are then loaded into the phase 1 financials accordingly.
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Project Plan – The project plan is created using Microsoft Project and can be provided to the customer in
Microsoft Excel or a .PDF file format. This plan defines all key milestone events as well as the supporting tasks
in a multi-page detailed work breakdown schedule, (WBS). Each task is qualified using Project Management
Institute, (PMI), standards and includes all facility design / build items as well as equipment procurement,
installation and start-up tasks. The project plan integrates all building construction / modification tasks that are
supplied by the chosen general contractor and architect including permitting, and city approvals.
Providence Process Solutions, LLC - vern@prov-ps.com - Cell: 262.770.1292
Providence Process Solutions
Professional Service Offerings
Phase 3 Deliverables
Phase 3 – Project Management – Once the project is formally approved based on the completion of phase 2
deliverables, phase 3 project management can begin. As mentioned earlier, if the customer chooses to
purchase plant process equipment from Providence Process Solutions Preferred Partners, the project
management rate charged will be 2.5% of the project costs managed by Providence Process Solutions.
Otherwise, the project management fee is typically set to 5% of the equipment value.
All project management activities comply with PMI standards and include periodic project team meetings, tight
coordination with the general contractor, all equipment contract administration, all process equipment
installation including rigging, process piping installation and guidance for local building contractors on items
specific to process equipment requirements. Equipment start-up and training oversight is also included as part
of this service.
In order to effectively manage the build of a brewery, Providence will physically move to the job-site location for
whatever time is required to support the project management contract’s scope of supply. On-site time typically
begins a few weeks before the first tank is scheduled to arrive and finishes when the first batch of beer is
packaged. I project sign-off list is managed after each piece of equipment has been successfully started up.
Once all equipment had been signed off by the customer, the project is closed and the Providence job-site
manager departs from the work site.
Beer Manufacturer’s Responsibilities
The beer manufacturer will need to provide PPS access to the facility for utility and infrastructure evaluations. In
addition, PPS will require access to the beer manufacturer’s key management team ranging from the brew master,
chief operations officer, quality manager, plant engineer, chief financial officer and president / owner. PPS will also
need copies of the building drawings in AutoCAD format. PPS will need copies of the city and / or underwater
aquifer water tests to evaluate any potential water treatment concerns. Other utility service information will also be
required in order to ensure compatibility with brewery process requirements.
Project Timing
A complete brewery design can take many months to complete. Phase 1 and Phase 2 engineering with architectural
drawings and general contractor input can take as long as 4-10 months. Therefore, it is critical that the beer
manufacturer have proper expectations as to the level of technical detail associated with designing and building a
brewery and the time it takes to properly navigate through these design processes. A poorly designed project on
the front end will cost the brewery tens if not hundreds of thousands of dollars on the back end as well as frustration
and anxiety. Therefore, it is highly desired to get Providence Process Solutions involved with new plant designs as
early as 12 months before ground breaking occurs.
End of Document
Providence Process Solutions, LLC - vern@prov-ps.com - Cell: 262.770.1292