2014 Software Global Client Conference

2014 Software Global Client Conference
How to Enable a
High-Performance
Organization in the
Oil & Gas Industry
Presenters:
Omar Halaseh
Stan DeVries
Definition: High Performance Organization
● In High Performance Organizations Strategies are important but
Execution is the key.
● In an HPO there are well defined processes that are measured and
accountable.
● In an HPO everyone understands how their actions are measured and
so how they impact the Scoreboard.
● Consequently the Operations staff are empowered to make decisions
that impact the Scoreboard.
● In an HPO the organization beats it GM targets by 3-5%
2014 Software Global Client Conference
How to maximize value for the business…
2014 Software Global Client Conference
The latest frontier in the performance journey
Latest Frontier:
Real-Time
Performance
Management
As margins continue
to trend downward…
…refiners continue to
look for new ways to
gain more efficiencies
in their performance
journey.
2000
2014 Software Global Client Conference
Today
“Know”
“Act”
(sense)
(respond)
How is the performance journey evolving?
Real-Time Performance Management
Closing the gap
between “knowing”
and “acting”
2010
Performance-Driven Integration
People, Process & Technology Integration
Business Process Integration, Application Integration, SOA,
People, Culture & Change Management
2000
Integrating the
people &
technology silos
Process & KPI Alignment, Digital Dashboard, Predictive
Analytics, Empowering the Front-lines
Asset Management
Reliability & Availability, Preventive & Predictive Maintenance,
RIM, RCM, Handhelds
Supply Chain Management
1980
Building out the
portfolio of refinery
systems
1990
Regional Planning, Demand Forecasting, Back Office
Automation, Enterprise Trading & Risk Management
2014 Software Global Client Conference
Production Management
Planning, Scheduling, Production Accounting, LIMS,
Process Historian
Plant Automation
Distributed Control, Regulatory Control, Advanced Control
Do you need a step-change in performance?
2014 Software Global Client Conference
Hurdles to acting closer to real-time
Accessing the right
information…
No shortage of
real-time data

Navigate up or down –
depending on
access privileges

Role-based
(and secure)
“version of that truth”

Single, integrated
“version of the truth”
of performance data
50% of information
received by managers
has no value*
Managers spend 1-3
hours a day searching
for information*
Lots of dashboard
within silos with partial
information – wrong
diagnosis as a result of
incomplete context.
2014 Software Global Client Conference
* Source: Accenture
What is required to enable the HPO vision?
• Right Domain
Expertise
Business
Process
Empowering
Enhancement
the frontlines
to take action
2014 Software Global Client Conference
• Right Metrics
• Right Behavior
•
•
•
•
•
Right Data Sources
Right User
Right Context
Right Diagnosis
Right Decision
• Right Action
• Right Accountability
• Right Time
Dynamic
Performance
Structured
&
Measures
Workflow
CultureSoftware
of
linked measures
leading
KPIvia
Decomposition
–
&Methodology
lagging KPIs
Intelligence/
“Single
version
Dashboard
of the
truth” via
role-based
Enterprise-wide
Dashboard
Visibility,
dashboards
Linking
Leading/Lagging KPIs
Actionable Reporting,
& Integration Platform
accountability
How to build a high-performance culture?
Culture of proactive and
accountable decision making
that recognizes and rewards
individuals for results
Do we have a
winning attitude?
Actionable leading KPIs with
sufficiently granular information to
help guide the front line staff to
take proper corrective action
High Performance
Organization
High Performance Organizations
must get both right!
2014 Software Global Client Conference
Are we
winning?
KPI Decomposition & Alignment
Overview & Case Study
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2014 Software Global Client Conference
Structuring & Linking KPIs into a Cascading
System of Leading/ Lagging Indicators
Lagging Indicators
Upper Management
EBITDA
Gross Refining Margin
Solomon Ranking
Gross Refining Margin
Lagging Indicators
Middle Management
Throughput
Actual vs. Budget
Solomon Indices
Energy Costs
Maintenance Costs
MRO Inventory
Costs
Operator
Hydrocarbon Inventory
Costs
Energy Costs
Solomon Indices
Throughput
Yields
Leading Indicators
Temperature
Reflux Flow
Catalyst Circ. Rate
Now
2014 Software Global Client Conference
Solomon Rankings
Minutes
Days
Weeks
Quarters
Our KPI Decomposition Methodology –
KPI structure is key
Dynamic Performance Measures (DPM)
is our patented methodology for defining
and linking KPIs

Structured interview and data gathering

Strategic, operational, and financial
approach to analysis

Identify Widely Important Goals (WIG)

Identify real-time performance measures

Real-time accounting at plant floor

Roll-out and Implementation of
dashboards

Baseline and validation

Strategy/execution alignment

Role-specific
2014 Software Global Client Conference
Case Study –Sasol
What Sasol needed
High resolution cost and profit data in real time
Visibility to the value of improvement activities
More and better information from accounting
Focus only on improvements that provide value
Employees aligned with strategy
Improved morale and performance
2014 Software Global Client Conference
SASOL: Structuring & Linking KPIs
Sasol Infrachem
Business
Systems
Strategy
Business Management
Action
Measure
Factors
(i.e. cost)
Rectisol
Plant Management
Water
& Waste
Steam
Generation
ATR
(HR)
Plant-level
RTA Models
DPM’s
Area-level
RTA Models
DPM’s
Boiler 1
Unit-level
RTA Models
2014 Software Global Client Conference
Steam
Station 2
Steam
Station 1
DPM’s
Boiler 7
DPM’s
Production Management
DPM’s
Boiler 8
DPM’s
Boiler 17
DPM’s
Operator
Results (Baseline)
70
Baseline month
65
DPM Month 1
DPM Month 2
60
55
Cost/Unit
50
Each dot represents hourly
performance
45
40
35
30
25
20
80
90
100
110
120
Production Rate
2014 Software Global Client Conference
130
140
150
160
Results (Month 1)
70
Baseline month
65
DPM Month 1
DPM Month 2
60
55
Cost/Unit
50
45
40
35
30
25
20
80
90
100
110
120
Production Rate
2014 Software Global Client Conference
130
140
150
160
Results (Baseline and Months1,2)
70
Baseline month
Month 1
Month 2
65
60
When Operators:
• Understand cause and
effect relationship
between financial
metrics and operating
variables
• Empowered to act
• Results are certified by
accountants
• Payback Less than 6
months
Cost/Unit
55
50
45
40
35
30
6% Feedstock
cost
savings
25
4% Electricity cost
20
savings
80
90
2014 Software Global Client Conference
100
110
120
130
Production Rate
140
150
160
RTPM: System Architecture
2014 Software Global Client Conference
Similar Engagements in the last 3 years
● South African Coal and Oil (SASOL)
● Saudi Aramco Total Refining and Petrochemicals Co (SATORP)
● Rabigh Refining and Petrochemical Company (PetroRabigh)
● Cheniere Energy Inc.
● Abu Dhabi Gas Industries Limited (GASCO)
● Bin Sohn Refinery (PetroVietnam)
● Abu Dhabi Gas Liquefaction Company (ADGAS)
● GS-Caltex Refinery
2014 Software Global Client Conference
Next Steps
Schedule a demo of RTPM solution
> Contact: [email protected]
Half day workshop with key
stakeholders to:
● Explore the potential of Real-Time
Performance Management in your
company
● Learn what other companies are doing
● Learn what to look for in a Real Time
Performance Management solution
2014 Software Global Client Conference
Typical stakeholders:
● VP of Refining
● Plant Manager
● Operations Manager
● Tech Services Manager
● Maintenance Manager
● Planning Manager
Related Conference Events
RTPM Demo (EXPO)
> Demo Station 7
> Area: Operations, Asset Management,
Information Management, HMI &
Supervisory Control
Confidential Property of Schneider Electric
GEN INT 16
> Connect People, Process, & Technology
for Intelligent Operations
> Wednesday 2:30 pm
> Room: Suwanee 11
> Speakers: Stuart Parker, Paul Feder
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Q&A
Building a High-Performance Organization
in the Oil & Gas Industry
2014 Software Global Client Conference
©2014 Schneider Electric. All Rights Reserved.
All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies or their respective owners.
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