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PIDX Supplier KPI Project Update PIDX Executive Update – Dec 18th 2013
Daryl Fullerton, PIDX International
© PIDX, Inc. 2012
Table of Contents
© PIDX, Inc. 2011
1. Overview
2. Project Recent Wins – (Nov Dec 2013)
3. KPI Dictionary Update
4. Status Update on Timeline
5. 12 Point Plan ( 2014 - Next 6 Mths)
6. Marketing the Supplier KPI Project
7. Challenges
8. AOB
© 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 : c80 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.
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 facilitating 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 © 2013 PIDX 4
Project Recent Wins
Recent Wins for the Project (Nov Dec 2013)
© PIDX, Inc. 2011
1. BP on Board Project
2. IACCM interested in Joining Project
3. BP Submitted KPIs
4. Shell - Participation forms Submitted
5. Talks held with 8over8 about joining ( Contract Specific KPIs for Major Projects)
6. Chevron now have Nominated a dedicated representative
7. In talks with Glencore Xtrata about joining (they are one of the Worlds largest Mining & Exploration Cos)
8. In talks with Aramco about joining.
9. Interest from Genel Energy (Tony Hayward is CEO), Conversations had, Follow up Jan 2014
Project Plan
Project Timeline 2013- 2014
Q1 2013
KPI Dictionary
(alfa version)
Q1 2014
KPI Selection(Critical few)
KPI DefinitionsStandardized
KPI Dictionary(Beta version
Segmentation)
KPI DictionaryStandardized
Version 1
•9
Performance Areas (Level 1) Framework Agreed
•21/04/23 Classification: Internal
•
• QUALITYS
UP
PLI
ER
• DELIVERY
• COST
• BEHAVIOUR
• HSE
Level 1
Supplier KPI Data Dictionary Update (Dec 2013)
© PIDX, Inc. 2011
1. Template for Data Collection Agreed.
2. 5 Performance Areas Defined and Agreed.
3. Over 440 KPI’s recieved and in progress of being added to Master Data Dictionary
4. KPI’s Submitted by 15 Companies
5. Planning for Conversion of KPI Dictionary Spreadsheet to from Excel to Data Base underway.
Accomplishments to Date
KPIs to StandardizeKPI Name KPI Definition
Total Recordable Incident Rate (TRIR) = Recordable Cases * 200,000 / Hours Worked
OSHA Severity Rate OSHA SR = (Lost Workdays + Restricted Workdays) * 200,000 / Hours Worked
Lost Workday Case Incidence Rate LWIR = Lost Workday Cases * 200,000 / Hours Worked
OSHA Incidence Rate(OSHA IR) = (Lost Workday Cases + Restricted Workday Cases) * 200,000 / Hours
Worked
Actual Costs Vs Planned Cost Days(Actual Cost of Services/Actual Operating Time (days))/(Planned Cost of Services/Planned
Operating Time (days) )
NPC % OF ACTUAL COST (Total non productive Cost NPC/Actual Cost of Services)*100.0
Days per 10k (Total number of drilling days / Total feet drilled)*10,000
NPT in % of operating time (Product Line Related Total Non-Productive Time NPT (days)/Actual Operating Time (days))*100.0
Operating Efficiency % Operating Efficiency = (Operating Time-Agreed NPT)/Operating Time x 100
Days Away from Work Injury Freq. (Days Away From Work Injuries/Total Manhours)*200000.0
Stop Cards Issue Rate Number of Stop Cards recorded for the supplier per 200,000 man hours
Recordable Injuries and Illnesses Frequency (No. of Recordable Injury and Illnesses*200000.0)/No.of Man-hours worked
% Objectives Met (number of objectives met / number of objectives defined) * 100
On Time Delivery Rate On Time Delivery in Full to Specification / Total Deliveries Received
Right First Time Invoicing Rate Invoices received Right First Time / Total Invoices Received *100
Days Sales Outstanding Ratio DSO ratio = accounts receivable / (annual sales / 365 days)
Days Payment Outstanding Ratio DPO ratio = accounts payable / (annual sales / 365 days)
Submitted V Standardised
Goal = Feb 2014 Publish the 21 or so KPIs for
Industry Feedback
Participation Update
© PIDX, Inc. 2012
2011 - 2013Workgroup Meeting Participation / Expressions of Interest
ApacheBPCairn Energy*ChevronConocoPhillipsEP EnergyGenelKinder MorganMurphy Oil MarathonNoble EnergyNexenPenn West Exploration RWESasolShell StatoilTalismanTullow Oil Wintershal
Aker SolutionsAmecBaker HughesCBICameronGE Oil & GasGenelHalliburton OceaneeringPacific Drilling *SchlumbergerSiemensTetra TechnologiesTransoceanWeatherford
Total Participants / Interested Parties = c80Last Updated Date: November 2013
Operators Service Companies / Suppliers
© PIDX, Inc. 2012
KPI Data Dictionary Contributing Companies & Organisations & Desired State
Already Submitted KPI’sAfrenBPConoco PhilipsHalliburtonNexenOSHA ActianPICSWintershallHackett GroupSasolStatoilWintershall
Update as at Sept December
ApacheAker SolutionsAnadarkoAmecBaker HughesChevronCameronGE Oil & GasEP EnergyHessMarathonOceaneeringPacific Drilling SchlumbergerTransoceanWeatherfordWintershall
And as many more contributors as we can get.
Total Participants / Interested Parties = circa 80Last Updated Date: December 2013
KPIs Submitted to Date Followups
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
Success – PIDX Standard for AutomatedTransmission of KPI Data between Suppliers and
Operators
SPM
140 Data Inputs
SPM
26 Data Inputs
KPI Data Inputs
Operator 1
Service Co 1
Service Co 2
Service Co 3
Operator 2
Service Co 1
Service Co 2
Service Co 3
Clients
70 KPI Data Inputs
Service Co 3 CRM
Internal DB’s
Clients
Operator 1
Operator 4
Operator 3
12 Point Plan
12 Point Plan ( Q1-Q2 2014)
© PIDX, Inc. 2011
1. Project Update to All Participants Jan 16th 2014
1. Update, KPIs for Standardisation
2. Project Plan
2. Marketing for Supplier KPI Feb Meeting Jan 20th 2014
3. Apoint VC Europe Jan 21st 2014
4. Announce VC Europe Jan 28th 2014
5. PSCM Conference (Ams) Jan 30th 2014
6. Supplier KPI eBrochure Feb 2nd 2014
7. Standardise KPIs (Feb 2014 to June 2014)
8. Houston Meeting Feb 20th 2014
9. Colate feedback from Houston Meeting Feb 23rd 2014
10. Publish Houston Meeting Minutes Feb 30th 2014
11. Marketing for Remaining 2014 Meetings Mar 3rd 2014
12. Publish Standardised KPIs V1 (to date) May 2014
Marketing
Marketing Plan for Supplier KPI
© PIDX, Inc. 2011
1. PIDX Conferences• Houston April 2014, London May 2014,
2. Adhoc Meetings• Houston February 2014• London March 2014
3. Direct Calls & meetings with Interested Parties
4. Oil & Gas Supply Chain Conferences
5. PIDX Website
6. Linkedin
7. Other Publications (Digital Energy, Oil IT)
8. Educate PIDX Country Reps
9. PIDX Supplier KPI - Ebrochure (2 Pager)
10. Presentation on Slideshare
Assistance Required
Challenges / Assistance Required
© PIDX, Inc. 2011
1. Registered Participation from more Suppliers possibly we could leverage some contacts in (OFS-Members)
2. Meeting Sponsorship• Houston Feb 2014• London May 2014
3. KPI Documentation / Repository
4. Financial / Travel Costs / Project Exposure• Third Party Conferences 3 Per Year @ $2000 each
example : http://pscm.insideintelligence.com/ 5. Costs - Consultants (Hackett ) ?
6. IACCM Membership (36000 Members 20% Oil & Gas
Help Market the Project through IACCM Surveys, Webinars etc Cost –Membership $3500 PA
