2014 Software Global Client Conference - …iom.invensys.com/EN/SoftwareGCC14Presentations... · 2014 Software Global Client Conference Definition: High Performance Organization In

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%


How to maximize value for the business…


The latest frontier in the performance journey

As margins continue

to trend downward…

…refiners continue to

look for new ways to

gain more efficiencies

in their performance

journey.

Latest Frontier:

Real-Time

Performance

Management

2000 Today

“Know” (sense)

“Act” (respond)


How is the performance journey evolving?

Building out the

portfolio of refinery

systems

Closing the gap

between “knowing”

and “acting”

Plant Automation Distributed Control, Regulatory Control, Advanced Control

Production Management Planning, Scheduling, Production Accounting, LIMS,

Process Historian

Supply Chain Management Regional Planning, Demand Forecasting, Back Office

Automation, Enterprise Trading & Risk Management

Asset Management Reliability & Availability, Preventive & Predictive Maintenance,

RIM, RCM, Handhelds

People, Process & Technology Integration Business Process Integration, Application Integration, SOA,

People, Culture & Change Management

Performance-Driven Integration Process & KPI Alignment, Digital Dashboard, Predictive

Analytics, Empowering the Front-lines

19

80

1

99

0

2

00

0

20

10

Integrating the

people &

technology silos

Real-Time Performance Management


Do you need a step-change in performance?


Hurdles to acting closer to real-time

* Source: Accenture

Navigate up or down –

depending on

access privileges

Single, integrated

“version of the truth”

of performance data

Role-based

(and secure)

“version of that truth”

50% of information

received by managers

has no value*

Accessing the right

information…

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.

No shortage of

real-time data


Empowering

the frontlines

to take action

Structured &

linked measures

via leading

& lagging KPIs

“Single version

of the truth” via

role-based

dashboards

Culture of

accountability

• Right Domain

Expertise

• Right Metrics

• Right Behavior

• Right Data Sources

• Right User

• Right Context

• Right Diagnosis

• Right Decision

• Right Action

• Right Accountability

• Right Time

Dynamic Performance

Measures

KPI Decomposition

Methodology –

Linking

Leading/Lagging KPIs

What is required to enable the HPO vision?

Intelligence/

Dashboard

Enterprise-wide

Dashboard Visibility,

Actionable Reporting,

& Integration Platform

Business Process

Enhancement

Workflow Software


How to build a high-performance culture?

Do we have a

winning attitude? Are we

winning?

High Performance Organizations

must get both right!

Culture of proactive and

accountable decision making

that recognizes and rewards

individuals for results

Actionable leading KPIs with

sufficiently granular information to

help guide the front line staff to

take proper corrective action

High Performance

Organization

2014 Software Global Client Conference 13

KPI Decomposition & Alignment Overview & Case Study


Structuring & Linking KPIs into a Cascading

System of Leading/ Lagging Indicators

Now Minutes Days Weeks

Middle Management Throughput

Actual vs. Budget

Solomon Indices

Energy Costs

Upper Management EBITDA

Gross Refining Margin

Solomon Ranking

Operator Temperature

Reflux Flow

Catalyst Circ. Rate

Lagging Indicators

Gross Refining Margin Solomon Rankings

Leading Indicators

Throughput Yields MRO Inventory

Costs

Maintenance Costs Solomon Indices Hydrocarbon Inventory

Costs

Energy Costs

Lagging Indicators

Quarters

http://www.gettyimages.com/detail/photo/businessman-giving-presentation-in-boardroom-royalty-free-image/sb10067560y-001

http://www.gettyimages.com/detail/photo/mixed-race-manager-standing-in-factory-high-res-stock-photography/113190105


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


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


SASOL: Structuring & Linking KPIs Sasol Infrachem

Steam

Generation Rectisol Water

& Waste ATR

Steam

Station 1

Steam

Station 2

Boiler 1 Boiler 7 Boiler 8 Boiler 17

Unit-level

RTA Models

Business

Systems

Area-level

RTA Models

Plant-level

RTA Models

Plant Management

Business Management

Factors

(i.e. cost)

(HR)

Production Management

Operator

DPM’s DPM’s DPM’s DPM’s

DPM’s DPM’s

DPM’s

Strategy

Action Measure


Results (Baseline)

20

25

30

35

40

45

50

55

60

65

70

80 90 100 110 120 130 140 150 160

Production Rate

Cost/

Unit

Baseline month

DPM Month 1

DPM Month 2

Each dot represents hourly performance


Results (Month 1)

20

25

30

35

40

45

50

55

60

65

70

80 90 100 110 120 130 140 150 160

Production Rate

Cost/

Unit

Baseline month

DPM Month 1

DPM Month 2


Results (Baseline and Months1,2)

20

25

30

35

40

45

50

55

60

65

70

80 90 100 110 120 130 140 150 160

Production Rate

Cost/U

nit

Baseline month

Month 1

Month 2

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

6% Feedstock cost

savings

4% Electricity cost

savings


RTPM: System Architecture


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


Next Steps

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

Typical stakeholders:

● VP of Refining

● Plant Manager

● Operations Manager

● Tech Services Manager

● Maintenance Manager

● Planning Manager

Schedule a demo of RTPM solution > Contact: [email protected]

mailto:[email protected]



24 Confidential Property of Schneider Electric

Related Conference Events

> Demo Station 7

> Area: Operations, Asset Management,

Information Management, HMI &

Supervisory Control

RTPM Demo (EXPO)

> Connect People, Process, & Technology

for Intelligent Operations

> Wednesday 2:30 pm

> Room: Suwanee 11

> Speakers: Stuart Parker, Paul Feder

GEN INT 16


Q&A Building a High-Performance Organization

in the Oil & Gas Industry

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All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies or their respective owners.

Documents

2014 Software Global Client Conference - …iom.invensys.com/EN/SoftwareGCC14Presentations... · 2014 Software Global Client Conference Definition: High Performance Organization In