opn logo here oil & gas industry enterprise project portfolio management -name--title- client...

OPN Logo HereOPN Logo Here

Oil & Gas IndustryEnterprise Project Portfolio Management-Name- -Title-

Client Logo Here

Copyright ©2009, Oracle. All rights reserved.

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be

relied upon in making purchasing decisions.The development, release, and timing of any features or

functionality described for Oracle’s products remains at the sole discretion of Oracle.

Prepared For:Client Logo

Here


Agenda

• Leadership: Oracle in Oil & Gas

• Value: Enterprise PPM (EPPM)

• Challenges: EPPM in Oil & Gas

• Solutions: Oracle Primavera for Oil & Gas

• Next Steps

• Contacts


Here


<Insert Picture Here>

Leadership: Oracle in Oil & Gas


Here

Copyright ©2009, Oracle. All rights reserved. 5

More than 200 upstream companies run Oracle Applications

Top 5 of 5 for Oil Field Service, Drilling and Equipment Providers run Oracle

49 of top 50 Energy companies run Oracle

Leadership in Oil & Gas: All Major Oil Sectors

More than 200 Downstream companies run Oracle Applications


”Oracle continues to build their presence in the oil and gas industry. This past year, Charles Phillips, President of Oracle, was invited to join The National Petroleum Council by the secretary of Energy. It’s quite a distinction for Oracle, as they are the only enterprise software company to be a part of the council. The National Petroleum Council is an oil and gas advisory committee to the Secretary of Energy. The council serves to represent the views of the oil and natural gas industries in advising, informing, and making recommendations to the Secretary of Energy with respect to any matter relating to oil and natural gas. This membership reflects their commitment to the oil and gas industry, and strengthens their understanding of the challenges facing the industry.” Catherine Madden

IDC, October, 2008

What IDC is Saying:

Leadership in Oil & Gas: Member of the NPC

Charles Phillips

President of Oracle Corporation


Leadership in Oil & Gas: Solutions Manage the Lifecycle

Oracle Primavera Focus



Value: Enterprise PPM (EPPM)


Here


We Live in a Project-based World: What Gets Measured, Gets Managed

3

The result: project failure.

1

every business manages projects

LOB 3

Plant 2

Div 1

Div 3

LOB 2

JV 1

LOB 1

Div 4

Plant 3

JV 2

DIV 2Plant 1

Flawed project selection

Cost overruns

Overallocated resources

Increased asset downtime

No enterprise visibilityRisk Mitigation

Strategy

Strategic Goals

Programs and Projects

FinancialReporting

Monitoring Performance

Talent Search

Planning & Execution

Distributed Information

Profitability

$€£ ¥

Cost Controls

and most have poorly defined processes.

2

Standalone products are the problem, not

the solution.


Insight, Transparency and Value: Aligning Strategy and Execution Drives Performance

BusinessValue

PROJECTMANAGEMENT (PM)

RESULTSPlan and Schedule Complex Projects

PROJECT CONTROLSPlannersProject ManagersProject Controls

PROJECTPORTFOLIOMANAGEMENT (PPM)

RESULTSProgramsResource ManagementRisk ManagementChange ManagementPlan and Schedule Key andComplex Projects

DIVISION/LOBPlannersProject ManagersProject ControlsResource ManagersProgram Managers

ENTERPRISE PROJECTPORTFOLIOMANAGEMENT (EPPM)

RESULTSStrategic AlignmentTalent ManagementCashflow ProjectionsPerformance and ControlProgramsResource ManagementRisk ManagementChange ManagementPlan and Schedule All Projects

ENTERPRISEWIDEPlannersProject ManagersProject ControlsResource ManagersProgram ManagersTeam MembersExecutives

Strategy

10


Visibility and Accountability

Resources

Oracle EPPM: Providing Complete, Global Visibility and Accountability

TimeScope

PPM

Align

PlanReport

Monitor

ExecuteAnalyze

Global, Real-time Coordination

Strategic Planning

Enterprise Asset Management

Profitability

Supply Chain

Human Capital

Finance

Program Mgmt

Resources

Visibility

Change Control

Forecasting

Risk Mitigation

What-if

Deliver Projects On Time, Within Budget, As IntendedDeliver Projects On Time, Within Budget, As Intended

11


• Integrate business process and data with key enterprise systems

• Manage the program lifecycle from idea to execution

• Control project costs and financials

• Forecast cash flow

• Assess risks and develop contingency plans

• Align workforce enterprise goals and supporting project initiatives

• Collaborate with entire project team including back office operations, internal resources, contractors, and executive management

Align

Plan

Execute

Monitor

Analyze

Report

A Single Source of Truth: Linking Corporate Goals with Operational Plans


Provide governance across the enterprise to deliver the right projects and programs.

Advance warning and analysis to reduce risk and eliminate project failure.

Accelerate projects and programs to satisfy customer and clients.

Deliver on commitments: what gets measured, gets done.

Value

Visibility

Velocity

Accountability

Oracle’s Enterprise Project Portfolio Management: Because All Stakeholders Deserve a Single Version of the Truth

13



Challenges: EPPM in the Oil & Gas Industry


Here


Enterprise & Plant Challenges: Integration to Drive the Optimization of Capital, Assets and People

Capital Investment• Strategically managing portfolios

• Assessing, modeling and mitigating risk

• Enhancing visibility of EPC partners

• Managing complex programs & projects

Asset Efficiency• Managing scope changes quickly

• Access to real-time data

• Collaboration throughout the company

• Metrics/measurement to drive KPIs

Talent Shortage• Assigning the right people to the right

projects

• Leveling resources and resource optimization

• Poor resource utilization


Capital Investments: Lead the Way Out of the Recession with a Focus on the Right Capital Projects

•The Oil & Gas Industry is the last major industry to emerge from a recession1

•The number, size, scope, and complexity of portfolios and projects has increased

– Picking the right projects is critical since rigs still “can fetch more than $600,000 a day to rent”2

– Project investments are huge with US$12,000,000,0003 devoted to project-based work

•Cost errors and shorter schedules have major impacts– 25% reduction in construction schedules– Mistakes generate cost overruns in the US$100s of millions3

•The challenge – project portfolio optimization– Ensuring CapEx drives ROI and shareholder value

– Forecasting funding and cash flow

– Assessing risk during portfolio prioritization

– Understanding the impact of contingencies on costs and timing


Project Portfolio Optimization: Unique Challenges in a Tough Economy


•Plan -- Create a long range plan and rank projects

•Execute – Update, track and react to project changes & risks

•Measure – Easily assess project financials and KPIs

Create a competitive advantage by prioritizing enterprise investments based upon financial considerations, risk tolerance and resource constraints

Project Portfolio Optimization: Assessing, Prioritizing & Selecting the Right Capital Projects


Project Portfolio Optimization: Managing Annual Capital Spend of $25B

COMPANY

Our client is one of the largest energy and petrochemicals companies in the world with over 100,000 employees in more than 100 countries. With five major business segments they are one of the top 5 IOC’s globally.

CHALLENGES

The company needed to better manage – i.e., develop, assess, prioritize and select – it’s portfolio of capital projects totaling $25B annually.

SOLUTION

The client had already been successfully using Primavera in plant operations across 37 of their sites. With a focus now to improve their capital project processes, in order to drive a greater ROI, the company selected Primavera’s P6 Enterprise Project Portfolio Management solution.

.

BENEFITS

•Total savings of $50M/year

•Top-down and bottom-up portfolio planning capabilities enabled more flexible and accurate planning

•Forecasting resources globally prevented resource over allocation and bottlenecks

•Increased visibility and management were enabled through a true enterprise solution by providing multi-user, multi-project and multi-region capabilities


•The deteriorating economy requires a greater focus on existing assets

– Spare capacity could be tight because the new financial environment could squeeze investment1

– Responsiveness to changing market conditions is asset driven

– Preventative maintenance reduces costly reactive maintenance

•Maintenance management drives return on assets (ROA)– Essential to an organization’s financial success and a key Wall Street

metric2

– Proactive maintenance organizations can dramatically increase craft productivity3

•The challenge – optimizing existing assets – Optimizing both the routine/daily and complex maintenance process– Accessing real-time data & responding to rapid changes – Collaborating throughout the enterprise– Integration to EAM, ALM and ERP systems

Asset Efficiency: “Rust” Never Sleeps, Neither Should Maintenance Programs


Optimizing Existing Assets: Operational Excellence Drives Success in a Down Economy


Optimizing Existing Assets: Completing Projects On-time and On-budget

•Plan – Quickly develop & communicate projects more effectively

•Execute – Manage tasks & activities

•Measure – Assess costs and risks easily

Reduce operating costs by managing schedules, resources, and costs across all complex – shutdowns, turnarounds – and routine/daily maintenance projects


Optimizing Existing Assets: Execute Best-in-Class Turnarounds

COMPANY

Marathon Oil Corporation is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing and transportation. They’re the fourth largest United States-based integrated oil company and the nation's fifth largest refiner.

CHALLENGES

Become more efficient in the maintenance and turnaround efforts for its seven refineries including the challenge of managing overlapping turnarounds

SOLUTION

The former Ashland refineries used Primavera for scheduling and documentation, while the original Marathon refineries were on a mainframe-based system. In order to standardize its turnaround processes the company made the decision to adopt Primavera enterprise wide for all seven refineries.

“Going with one system makes our maintenance planning and operations more efficient”. “And, our unified planning process helps us to maintain the efficiency we need to stay at that [best in class] level of excellence.”

Sean Levy

Turnaround Specialist

Marathon Petroleum

BENEFITS

•Able to schedule and carry out both lengthy and quick turnarounds, depending on the nature of the facility

•Contractors also use Primavera to update their work

•Can easily move planners from one refinery or turnaround project to another and leverage experience

•Evened out demand for limited resources, such as pipefitters

•Visibility into maintenance planning company-wide


Optimizing Existing Assets: Streamline Shutdowns and Standardize Processes

COMPANY

The Kuwait National Petroleum Company (KNPC) was established in 1960 and now manages one of the world’s largest oil complexes, comprising three adjacent refineries that produce more than 850,000 barrels of oil per day.

CHALLENGES

•Prior to integration, KNPC had 31 different systems in place to manage maintenance and turnaround work and the numerous software tools and excessive system customization requests complicated IT operations

•Business practices were not unified and there was limited information sharing, without a centralized information repository

•Needed to manage refinery operations to prevent or limit production losses, while ensuring the safety of staff and the environment

SOLUTION

Standardized on Primavera for project management and scheduling and integrated with both IBM Maximo and Oracle Human Capital Management and Financials. Primavera is leveraged across the enterprise to provide a consistent and accurate planning environment.

“From the initial quotes to awarding of contracts and beyond, we can track all elements of purchasing and payments, as well as the progress of the work itself.”

Project Management Professional (PMP)Kuwait National Petroleum Company

BENEFITS

•7% reduction in shutdown duration

•Savings of US$21 million per year, with US$3 million from manpower reduction

•Increased efficiency in procurement cycle; a reduction from 2 months to an average of 9 days

•Information flow is both fluid and bi-directional, so start and finish dates can be calculated based on resource availability

•Eliminated the inefficiencies of the silo approach; with single centralized database, KNPC can manage global KPIs from any site


Talent Shortage: Enhance the Use of Limited Talent & Capture Best Practices

•The largest number of retirements will occur over the next decade1

– The average age of an employee is 46 to 492

– “There has never been a time when our industry so needs outstanding talent.”2 -- Rex Tillerson, CEO, ExxonMobil

•Limited talent is a risk to portfolios & projects– Lack of skilled talent is increasing project costs and complete dates

– Mistakes due to poor/deteriorating project management skills are driving up costs

•The challenge – doing more with less– Investing in the right projects to maximize resource optimization

– Assigning the right staff to the right project

– Capturing best practices/methodologies for the future workforce


Doing More with Less: Get the Right People On the Right Projects at the Right Time


Doing More with Less: Manage Resources and Capture Knowledge

•Plan – Get the right resources for the job

•Execute – Manage resource bottlenecks and over allocation

•Measure – Capture best practices

Level resources across all projects – capital, shutdown, routine, etc. – and proactively track resource demand so workforce is not over allocated


Doing More with Less: Managing Limited Resources Effectively

COMPANY

The company is a world-leading contractor for the oil and gas industry. With headquarters in northern Europe and offices worldwide, the company transports, installs and removes oil and natural gas platforms and subsea pipelines in locations that span North and South America, West Africa and Europe.

CHALLENGES

The company contracted with an IOC to manage a complete platform project. These comprehensive projects, however, come with much greater risk. They require a more complex planning and delivery schedule, including challenging resource considerations.

SOLUTION

The client decided to standardize on Primavera P6 for its web-based view of the enterprise and ability to handle major resource challenges. Furthermore, Primavera was running on a centralized Oracle database.

“We must have the ability to see where resources might be shared during any particular phase of a project, particularly during tight economic times.”

Planning Manager

BENEFITS

•Engineering resource managers can look into the resource pool of colleagues and see where they may be able to pull people from one particular project in order to expedite another

•Provides insight into both resource requirements and capacity at every stage of the project

•10 project managers can coordinate over 2,000 activities – including people and material

•Integration with sub-contractor’s plans – and resources – helps streamline the project’s delivery

•Standardization is helping to enable a more collaborative environment across the enterprise



Solutions: Oracle Primavera for Oil & Gas

Client Logo HerePrepared For:


Committed to Asset Intensive Industries: Enabling Optimization Through EPPM

Proven capital project planning, control and execution within a rigorous risk framework to optimize CapEx spend,

mitigate risk and reduce costs

Successful planning and management of complex global projects – plant shutdowns

and turnarounds – as well as routine maintenance to reduce OpEx, enhance craft productivity and increase asset efficiency

Build Maintain

We are the de facto standard for the global Oil & Gas Industry


Solutions for Oil and Gas: Focused Offerings for Capital Projects & Maintenance

Oracle | Primavera PPM

Effectively maintain and increase the efficiency of existing assets

Monitor budget allocations against key performance indicators

Identify and select the best exploration and production opportunities

Invest in and deliver projects with superior returns Coordinate existing resources and quickly train

new talent Maximize labor pools globally through an

integrated approach


Primavera P6 Enterprise Project Portfolio Management:•Prioritize project portfolios

•Balance resource capacity

•Plan, schedule, and control

•Allocate best resources and track progress

•Monitor and visualize project performance vs. plan

•Foster team collaborative management

•Integrates with ERP & EAM systems

Primavera Risk Analysis:•Determination of cost and schedule risk exposure

•Predictive forecasting

•Contingency and mitigation modeling and assessment

•Manage risks to maximize return and minimize uncertainty

•Set realistic expectations of project cost and schedule

Primavera Inspire for SAP:•Create master schedules from related work

•Increase visibility of all work types, ensure efficient resource utilization

•Reduce system administration requirements and IT/maintenance


• Interoperability – no more siloed/fragmented data

• Leverage a single version of the truth – one source of integrated

information

• Manage CapEx more effectively – successfully choose, plan and

execute projects

• Drive down OpEx – increase craft productivity through better planning,

allocation of resources, and cross-training

• Deliver on time and on budget – effectively coordinate & collaborate on

multiple projects and programs

• Do more with less – maximize productivity of limited resources

Solutions for Oil & Gas: Leading Technology to Meet Challenges of Executives and Project Teams



Next Steps


Contacts

opn logo here oil & gas industry enterprise project portfolio management -name--title- client...

Documents