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PIDX – Supplier KPI Project Update PIDX Fall Conference Sept 12th -13th 2013 Daryl Fullerton, Actian
Michael Washington, ConocoPhillips
© PIDX, Inc. 2012
© PIDX, Inc. 2012
Supplier KPI Project Overview
Overview The PIDX Supplier KPI Projects main focus is to develop a Supplier
KPI Data Dictionary (Phase 1) followed by the development and
automation of Supplier KPI data transfer between Suppliers and
Oil & Gas Operators (Phase 2) beginning in late 2014.
Phase 1 project objectives are to compile an Industry Data Dictionary for
Standardization of KPI terminology and definitions, e.g. NPT, TRIR etc
Focus: Upstream / Downstream Commenced: 2011 Participants : c70
Contact: Daryl Fullerton [email protected]
Mike Washington [email protected]
Wins when Implemented • Standardization on KPI Terminology
• Industry Recognized and endorsed
Supplier KPI Data Dictionary.
• Significantly better QPR’s
• Cost savings for Service Companies
• More Accurate Data for Operators
•Standard for Supplier KPI Data Transfer
Key Drivers – Why we Need • Industry Wide KPI Definition Chaos
between different Operator KPI Definitions
and the Supply Chain Supplier Base
• Scorecard Overload
• Cost Savings Time = Money
• Better Data Accuracy
• Improved Data QA/QC
• Scorecard impact on working conditions.
Key Performance Indicators and Role in SPM
• What are Supplier KPI’s – Target Driven Metric Indicators that
help you maximise savings, improve quality and reduce incidents
with your organisations supplier base.
• Common KPI Categories in SPM may Include:
Cost / P2P - Spend Overruns, Non Productive Time, DSOs,
DPO’s, Payment to Net Terms Compliance Ratio
Delivery- Service Delivery, Product Delivery, On Time Logistics
HSE - Safety Record, Accidents, Spills, Near Misses
Quality - Job Quality, Product Quality
Risk - Late Delivery, Management, Staff Turnarounds, DIO.
Efficiency - Days 10k, NPT, Right First Time
Behavior / Innovation - New Ideas, Creativity, Value Add
Right First Time Invoices, Invoice Error Ratio
• Drilling and Completions
• Operations & Maintenance
• Refining
• Pipelines
• Aviation / Logistics
• Indirect Procurement
• Chemicals
• Decommissioning
KPI usage within Oil & Gas Industry
Performance KPI and Targets Examples
Importance of KPI’s and SPM?
© PIDX, Inc. 2011
1. Making sure we monitor performance to take
corrective actions for performance
Improvement.
2. Make sure we have the right KPI’s at Global
and also Category Line Level.
3. Use Historical Performance Data to award
future business
4. Ability to compare Apples with Apples and
avoid awarding contracts to suppliers in areas
that they dont have experience / proven track
record.
NPT ?
TRIR ?
KPI Terminology
Are we all speaking the
Same Language?
Industry – Current State of SPM
• Many Operators have SPM Initiatives in operation or
underway.
• Often Contract Awards for a new Supplier based on WOM or
past performance but KPI Terminology / Definitions may
differ. – Big Problem Area
• Many KPI initiatives are Regionally Focused or Category
Line Focused with no Global Company Wide KPI role up.
• Very few provide Visibility on KPIs on Real Time to Suppliers
• Often no way of telling whether A team or B team until things
go wrong – Likeness to Political Campaigns / Elections
• No way of facillitating regional Specific KPIs that Matter.
• Huge Drive to Standardise KPI terminology. Apples with
Apples and Like with Like.
• Automated of KPI data gathering extremely low.
Confidential © 2012 Actian Corporation 10
© PIDX, Inc. 2012
Supplier KPI Project Overview
Overview The PIDX Supplier KPI Projects main focus is to develop a Supplier
KPI Data Dictionary (Phase 1) followed by the development and
automation of Supplier KPI data transfer between Suppliers and
Oil & Gas Operators (Phase 2) beginning in 2014.
Phase 1 project objectives are to compile an Industry Data Dictionary for
Standardization of KPI terminology and definitions, e.g. NPT, TRIR etc
Focus: Upstream / Downstream Commenced: 2011 Participants : c70
Contact: Daryl Fullerton [email protected]
Mike Washington [email protected]
Wins when Implemented • Standardization on KPI Terminology
• Industry Recognized and endorsed
Supplier KPI Data Dictionary.
• Significantly better QPR’s
• Cost savings for Service Companies
• More Accurate Data for Operators
•Standard for Supplier KPI Data Transfer
Key Drivers – Why we Need • Industry Wide KPI Definition Chaos
between different Operator KPI Definitions
and the Supply Chain Supplier Base
• Scorecard Overload
• Cost Savings Time = Money
• Better Data Accuracy
• Improved Data QA/QC
• Scorecard impact on working conditions.
Apples with Apples
Why do we need Standardized KPIs
Drilling Fluids
Scorecard
Cementing
Scorecard
Helicopter
Scorecard
Integrity Mgt
Scorecard
Waste Mgt
Scorecard
5 Global KPI
2 x E&P Segment
10 x Category
5 x Sub Category
2 x Regional
1 x Local
5 Global KPI
2 x E&P Segment
7 x Category
2 x Sub Category
1 x Regional
1 x Local
5 Global KPI
1 x Aviation Segment
6 x Category
2 x Sub Category
0x Regional
1 x Local
5 Global KPI
2 x Ops Segment
7 x Category
3 x Sub Category
0 x Regional
1 x Local
5 Global KPI
2 x Ops Segment
4 x Category
2x Sub Category
2 x Regional
1 x Local
Apples with Apples – Industry Standardised KPIS
Need for Standardized Industry KPI’s
Drilling Fluids
Scorecard
Cementing
Scorecard
Helicopter
Scorecard
Integrity Mgt
Scorecard
Waste Mgt
Scorecard
5 Global KPI
2 x E&P Segment
10 x Category
5 x Sub Category
2 x Regional
1 x Local
5 Global KPI
2 x E&P Segment
7 x Category
2 x Sub Category
1 x Regional
1 x Local
5 Global KPI
1 x Aviation Segment
6 x Category
2 x Sub Category
0x Regional
1 x Local
5 Global KPI
2 x Ops Segment
7 x Category
3 x Sub Category
0 x Regional
1 x Local
5 Global KPI
2 x Ops Segment
4 x Category
2x Sub Category
2 x Regional
1 x Local
Apples with Apples – Global KPIs V Category v Local KPI’s
Need for Globally Inherited KPI’s
1. Cost Variance 2. HSE Incidents 3. Quality Conformance 4. On Time Delivery 5. Satisfaction Levels
Drilling Fluids
Scorecard
Cementing
Scorecard
Helicopter
Scorecard
Integrity Mgt
Scorecard
Waste Mgt
Scorecard
5 Global KPI
2 x E&P Segment
10 x Category
5 x Sub Category
2 x Regional
1 x Local
5 Global KPI
2 x E&P Segment
7 x Category
2 x Sub Category
1 x Regional
1 x Local
5 Global KPI
1 x Aviation Segment
6 x Category
2 x Sub Category
0x Regional
1 x Local
5 Global KPI
2 x Ops Segment
7 x Category
3 x Sub Category
0 x Regional
1 x Local
5 Global KPI
2 x Ops Segment
4 x Category
2x Sub Category
2 x Regional
1 x Local
1. Cost Variance 2. HSE Incidents 3. Quality Conformance 4. On Time Delivery 5. Satisfaction Levels
1. Non Productive Time 2. Incremental Benefit
Apples with Apples – Global KPIs V Category v Local KPI’s
Optional Segment Specific KPI’s
Drilling Fluids
Scorecard
Cementing
Scorecard
Helicopter
Scorecard
Integrity Mgt
Scorecard
Waste Mgt
Scorecard
5 Global KPI
2 x E&P Segment
10 x Category
5 x Sub Category
2 x Regional
1 x Local
5 Global KPI
2 x E&P Segment
7 x Category
2 x Sub Category
1 x Regional
1 x Local
5 Global KPI
1 x Aviation Segment
6 x Category
2 x Sub Category
0x Regional
1 x Local
5 Global KPI
2 x Ops Segment
7 x Category
3 x Sub Category
0 x Regional
1 x Local
5 Global KPI
2 x Ops Segment
4 x Category
2x Sub Category
2 x Regional
1 x Local
1. Cost Variance 2. HSE Incidents 3. Quality Conformance 4. On Time Delivery 5. Satisfaction Levels
1. Non Productive Time 2. Incremental Benefit
1. Drilling Fluids Cost per Bbl drilled 2. Mud-Related problem time 3. Down Hole Losses 4. Days per 10,000 Feet
Apples with Apples – Global KPIs V Category v Local KPI’s
NB Category Specific KPI’s
Drilling Fluids
Scorecard
Cementing
Scorecard
Helicopter
Scorecard
Integrity Mgt
Scorecard
Waste Mgt
Scorecard
5 Global KPI
2 x E&P Segment
10 x Category
5 x Sub Category
2 x Regional
1 x Local
5 Global KPI
2 x E&P Segment
7 x Category
2 x Sub Category
1 x Regional
1 x Local
5 Global KPI
1 x Aviation Segment
6 x Category
2 x Sub Category
0x Regional
1 x Local
5 Global KPI
2 x Ops Segment
7 x Category
3 x Sub Category
0 x Regional
1 x Local
5 Global KPI
2 x Ops Segment
4 x Category
2x Sub Category
2 x Regional
1 x Local
1. Cost Variance 2. HSE Incidents 3. Quality Conformance 4. On Time Delivery 5. Satisfaction Levels
1. Non Productive Time 2. Incremental Benefit
1. Drilling Fluids Cost per Bbl drilled 2. Mud-Related problem time 3. Down Hole Losses 4. Days per 10,000 Feet
Global Apples with Apples Plus Category Level KPIs
Benefits of PIDX Supplier KPI Standard for
Transmission of Supplier Performance Data
Industry Accepted KPI Data Dictionary
Reduced Costs of Data entry
Increased Data Accuracy
Mitigation of Risk
Apples with Apples
Better Supplier Performance Comparisons
Global Account Managers – Like with Like
Better Scorecard Compliance
Better QPRs
Focus now on Performance Improvement V Time Consuming Data Entry
Less Operator Supplier disputes over Data
Common Industry Supplier KPI Terminology
Project Status / Timeline
© PIDX, Inc. 2012
Goals and Objectives 2012 -2015
Educate / Recruit •Educate and recruit additional interested
parties to Supplier KPI Workgroup.
Develop
•Define KPI DD Template
•Define Performance Areas
•Nominate Performance Area Team
Leads
•Mapping KPI’s To Performance Areas
•Draft Version of Supplier Performance
KPI (Quarterly Release)
Meetings
1 x London (Oct 18th 2012)
1 x Houston meeting (Nov 29th 2012)
Outputs:
1.Draft Version of Supplier KPI (circulated to participants)
2.Performance Areas Defined and
Agreed
3.Indicators mapped to performance
areas
Build Develop Grow •Grow Participant Numbers
• Performance Area Team Meetings.
Develop
• Include new Supplier Performance KPIs
to Dictionary.
•Group similar indicators within a
Performance area.
•Start standarization work of KPI
Meetings
Houston - Feb 27th & April 5th 2013
London May 1st 2013
4 Quarterly Meetings Per Year (F2F)
Regular Performance Area Team Meetings
via Telecall.
Outputs:
1.New submitted KPI’s mapped to
Performance Areas (Ongoing)
2.Quarterly release of Supplier
Performance KPI Dictionary, Alpha, Beta
3.Identified potential indicators to be
standardized
4.Suggestions of standard indicators
•Publish Supplier KPI Dictionary for
Industry Review and Feedback.
•Engage / Survey with IT Vendors on
current data transmission formats for
Supplier KPI Data.
•Gauge Interest for Pilot 2014
•Develop XML Version of Supplier
KPI Template for XML Data
Transmission
•Plan for Data Collection Pilot
between 2 Operators and 3 Suppliers
(2015)
Outputs:
•Agreement of Supplier KPI Data
Dictionary Definitions by Operators
and Suppliers.
•Pilot Take-up & Usage of Data
Dictionary
Short Term Goals (2012 Q3, Q4) Medium Term Goals (2013 ) Long Term Goals (2014 - 2015)
© PIDX, Inc. 2012
2011 - 2013
Workgroup Meeting Participation / Expressions of Interest
Apache
BP
Cairn Energy*
Chevron
ConocoPhillips
EP Energy
Green Energy
Kinder Morgan
Murphy Oil *
Marathon
Noble Energy
Nexen
Origin Energy *
Penn West Exploration *
RWE
Shell *
Statoil
Talisman
Tullow Oil *
Wintershal
(*) Expressions of Interest to become involved.
Aker Solutions
Amec
Baker Hughes
Cameron
GE Oil & Gas
Halliburton
Oceaneering
Pacific Drilling *
Schlumberger
Siemens
Tetra Technologies
Transocean
Weatherford
Total Participants / Interested Parties = c70
Last Updated Date: Feb 2012
Operators Service Companies / Suppliers
© PIDX, Inc. 2012
KPI Data Dictionary Contributing Companies &
Organisations & Desired State
Already Submitted KPI’s
Conoco Philips
Statoil
Halliburton
Nexen
OSHA
Actian
PICS
Wintershall
Afren
Hackett Group
Sasol
Update as at Aug 2013
Apache
Aker Solutions
Anadarko
Amec
Baker Hughes
BP
Cameron
GE Oil & Gas
EP Energy
Hess
Marathon
Oceaneering
Pacific Drilling
Schlumberger
Transocean
Weatherford
And as many more contributors as we can get.
Total Participants / Interested Parties = c70
Last Updated Date: Aug 2013
KPIs Submitted to Date Followups
Outputs from May 1st 2013 London Meeting
© PIDX, Inc. 2011
1. Education / Participation – Update on Project Status
– 3 New Operator Companies
– 2 New Supplier Company
– Strong & Growing Interest from many of the Major Service Companies
– 1 New Industry Organisation
– 1 new Service Company
2. Current KPI Data Dictionary – Over 250 KPI’s Mapped to 5 Performance Areas
3. Actions / Next Meeting Dates Defined – Actions Defined from Meeting Participants
– Ongoing KPI Collection from new and existing participants
– KPI Data Dictionary Load
– Define explanations for Performance Areas
– Plan Meetings future meetings
Supplier KPI Data Dictionary Update
(Aug 2013)
© PIDX, Inc. 2011
1. Template for Data Collection Agreed.
2. 5 Performance Areas Defined and Agreed.
3. Over 400 KPI’s recieved and in progress of
being added to Master Data Dictionary
4. KPI’s Submitted by 12 Companies
5. Planning for Conversion of KPI Dictionary
Spreadsheet to from Excel to Data Base
underway.
Accomplishments to Date
•25
Performance Areas (Level 1) Framework Agreed –Sept 14th 2012
•17/09/2013 Classification: Internal
•
• QUALITY S
UP
PLIE
R
• DELIVERY
• COST
• BEHAVIOUR
• HSE
Level 1
Performance Areas (Level 2 & 3) Deemed Beyond Project Scope as Company Specific
•26 •17/09/2013 Classification: Internal
•
Level 1 Level 2 Level 3
Material delivery
Service delivery
DE
LIV
ER
Y
Quantity
Time
Flexibility
Quantity
Time
Flexibility
Project Timeline 2013- 2014
Q1
2013
KPI
Dictionary
(alfa version)
Q1
2014
KPI Selection
(Critical few)
KPI Definitions
Standardized
KPI Dictionary
(Beta version
Segmentation)
KPI Dictionary
Standardized
Version 1
Future Meetings / Deliverables Schedule (Next 6 Mths)
© PIDX, Inc. 2011
Meetings
2013
Q4 - Houston Meeting – Sept 13th 2013
Location Schlumberger, Houston
Q4- London Meeting – Oct 17th 2013
Q3 / Q4 Continue to Map New KPI’s as
and when recieved from participant
Companies.
2014
Continue to Map New KPI’s as and when
recieved from participant Companies.
Q1 / Q2 Meeting Locations to be decided
Supplier Performance Dictionary
releases
2013
Q2 / Q3- Populate Supplier KPI Dictionary
Alpha Version 1.08 to 1.12
Q4 October - Draft Supplier Performance
KPI Dictionary BETA V1
Q4 December – Ver 1- Supplier KPI
Dictionary
2014
Q2 2014 – Ver 2- Supplier KPI Dictionary
Submitted V Standardised
2013 Goal
Mapped
Why Become Involved?
© PIDX, Inc. 2011
1. KPI Dictionary Access – Exposure to More
KPIs
2. Your KPI’s are Part of a Standardized
Industry wide Accepted KPI Portfolio
3. Access to Quarterly Release of Supplier KPI
Dictionary
4. Network with Industry Peers on best practices
and Lessons Learned on SRM
5. Get Guidance on Establishing Supplier KPI’s
Participant Involvement / Commitment
© PIDX, Inc. 2011
1. Completion of the Participation Forms to Participate on the Supplier KPI Project
2. Submission of KPI’s to PIDX for inclusion in the Supplier KPI Dictionary
3. Participation at Supplier KPI Quarterly Meetings / Calls in person or by
Teleconference.
4. Where Participant Co has a ”Performance Area Team Lead” on the project they
should allocate 4 Hours per Mth for associated Tasks with this voluntary role.
5. Have delegated authority to socialise the Supplier KPI Project within their respective
Organisation.
6. Have Authority to call in other members of their Organisation for subject matter
expertise across Performance Areas where appropriate
7. Be willing to Present a Case Study at future Supplier KPI Meetings to highlight their
organisations SRM/SPM Project and Lessons Learned on Supplier KPI
Implementation
Participant Obligations & Project Commitment
Q & A
Contact:
Linkedin Group:
Supplier Performance Relationship Management Group (Oil
& Gas)
© PIDX, Inc. 2011
