CHESM and CATEGORY MANAGEMENTMANAGEMENT Punluek (PAUL) Kittisares Regional Category Manager, SCM Contractor Forum Feb 11, 2011

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Table of Content

Categor Management (CM) Category Management (CM)

Category Structure

G Governance

Value

CM d CHESM P CM and CHESM Process

Key Decisions in CM and CHESM

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Category Management

C t M t i th t t Category Management is a process that promotes effective management of suppliers and expenditures. K l t f th i l Key elements of the process involves

• Category Planning

• Sourcing and Renegotiation

• Supplier Management

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Category Structure

D&CD&C• Drilling • Completions • ExplorationsExplorations

O&E Infrastructure • Asset teams • Facility Engineering

• IT • HR • Finance

MCP • Major Projects • CUEL

Logistics • Marine • Aviation

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• Shore base

Governance

Working Team Category Contract Review g• Contract Owner • CHESM

Representative • Category Manager

g yLeadership Team (CLT) • Functional managers

Committee (CRC) • General Managers • Finance manager

OE/HES• Category Manager • Asset managers • OE/HES manager• Legal manager • SCM manager

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VALUES

O ti l E llOperational Excellence

Efficiency

Safety

Cost Reliability

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CHESM and CM process

SourcingSourcing• CHESM contractor

rating • CHESM audit

E l ti d• Evaluation scorecard

ContractingContract Contracting• CLT/CRC approval

process

Contract Expiration • CHESM Post

contract review

Performance Management • Service Quality Meeting

(SQM)

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• CHESM Interim performance review

• Advance Supplier Relationship (ASR)

Key Decisions by CM on CHESM

Operational control

Working Team

• Operational control• Risk Ranking • Contractor RatingTeam g

• Contract Award

CLT

Contract Award• Approval of Contractor rated C or lower • Contract Owner Assignment

C t t A dCRC

• Contract Award• Approval of Contractor rated C or lower

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CHESM Leadership Team

•Overseeing• External Overseeing Contractual Issues

External Stakeholders (Contractor/ Sub- contractor)contractor)

CHESM LT CRC

OE Steering Committee

(OESC)

OE Governance

Council (OEGC)

• Internal Stakeholders (Employee)

• Overseeing OE

( )(OEGC)

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(Employee)

Thank you