Expectations and key success factors
Eddie Eide – Senior Procurement Advisor Draugen EPCm Project
14.10.2014
Company overview
■ Industry pioneer with over 100 years
history
■ A leading service company within the
oil, gas and renewable energy industry
■ Eight locations in Norway and four
internationally
■ Aibel employees around 5,000
worldwide
■ Annual turnover in 2013 approximately
12 billion NOK
Company overview cont.
■ 50 % ownership in EMC (Egyptian
Maintenance Company)
■ Long term maintenance and
modifications contracts
■ Deliver new platforms and modules
■ Present on half of the offshore
installations and 4 onshore terminals
in Norway
■ Successfully entered into offshore
wind market
Aibel locations
Yard in Haugesund
Yard in Thailand
Headquarter in Stavanger
Aibel suppliers
■ Current status – our supplier
database
■ Suppliers are key to Aibel - 2/3 or
approx. 60-70% of value creation is
procured
Huge influence on Aibel
competitiveness
Purchases per county in Norway
NCS - Future expectations
■ Good potential for new large and small
discoveries
■ Further optimization of the shelf
■ New installations under construction will
provide new MMO contracts
■ Deferred maintenance and modifications
will provide new employment
■ There will be industrial development in
northern Norway
■ The industry has undergone continuous
restructuring – we will succeed again!
Strategy and goals
■ Aibel has a leading position on the
Norwegian continental shelf and aims to
maintain this position
■ We aim to expand internationally
■ Need for cost reduction and increased
efficiency - We reposition and make
improvements
■
■
Integrated and cost effective execution
model
Increased international interest in the
implementation of our projects
Aibel, international share
What is important to us – and our clients
■ Delivery performance
■ Quality
■ Documentation
■ Solution provider, not (only) a
supplier of goods and/or services
■ Cost awareness
■ Cost optimisation - The ability to be
creative and proactive
■
■
■
■
Efficiency and productivity
Reputation
Flexibility
Key personnel
Main focus areas
■ Knowledge of specifications
■ Reliability in delivery
■ Quality in execution
Knowledge of specifications
■ Pay extra attention HSE & working
environment
■ HSE requirements must be first
priority in all projects
■
Our biggest customer, Statoil, have
increased focus on working
environment for maintenance
■ Offer according to specifications in
inquiry
■
If supplier offer standard equipment
– specify exceptions
Reliability in delivery
Effects of delays are increased both in cost
and schedule! Therefore:
■ Be ‘realistic’ regarding delivery time
■
You will be challenged – know your
capabilities and the risks involved
■ Inform when in trouble
■
Do not expect to solve all problems
– inform us and work to solve it
■ Give us the possibility to reduce the
negative effects
Quality in execution
■ Use qualified sub-suppliers
■
Contractual demands / selected
makes etc.
■ Ensure quality and expedite!
■ Use your quality system in project
execution
■
Do it right the first time
■ Negative trend in ‘punch-items’ and
‘warranty issues’
■
‘Short-cuts’ on quality does not pay
off
The key to success
■ Project deliverables
■ Quality
■ Schedule
■ Productivity
■ A winning culture
■ A good working environment
Areas of improvement
Where suppliers can contribute:
■ Schedule – My Responsibility
■ Capability vs. capacity
■ Estimation and experience data
■ Commercial awareness
■ Cost optimisation
■ Continuous improvement
HSE, Compliance and Quality
Health, safety and environment
-
Zero injury philosophy
Specific KPIs for HSE
-
-
Lost time incidents
Total recorded injury rate
Serious injury rates
Sick leave
HSE programme developed yearly
-
Action plan for overall activities
Local action plans tailored for each
location
Quality
■ An important goal for Aibel is to deliver consistent and
correct quality for all our projects.
■ Through our management system W3, we ensure that
we always use our best practice for the execution of
projects and work.
■ The management system fulfills the requirements of the
following standards and directive:
■ ISO 9001: Quality management systems
■ ISO 14001: Environmental management systems
■ BS OHSAS 18001: Occupational health and safety
management system
■ Pressure equipment directive 97/23/EC module H
■ ISO 3834-2: Fusion welding
■ ISPS: International code for the security of ships and of port
facilities
Compliance
■ Many years of experience in developing
and living up to high business
compliance and ethical standards
■ Implemented new methods and systems
in recent years to ensure a highly
compliant and ethical business conduct
(Code of Conduct)
Procurement Method
Method
-
As it is vital to get:
-
the right material
in the right quality
to the right site
at the right time
at the lowest total cost
Procurement is a key for success in all
our projects.
-
Overall method
-
-
ProVision is the standard method for
start-up, execution and close-out of
projects.
Procurement process
-
Visualized in W3 and includes all
relevant procurement procedures,
templates and method descriptions
needed for procurement in a project.
Tools
-
Aibel SAP or customers ERP (Enterprice
Resource Planning):
-
The Material Management module in SAP
-
Reservations (qty, specifications, need dates, status)
-
Purchase Orders (PO)
-
Reports (status, commitments)
-
Achilles – database for relevant suppliers
-
Procurement Corporate Frame
Agreements - database
-
New Vendor Request - database
-
Proarc – document control system
Procurement Toolbox
Documentation requirements
-
-
-
Attached to an inquiery you will find a typical example of Supplier Documentation
Requirement List (SDRL) showing documentation and data tables to be submitted
with the bid and as a part of the PO-delivery.
Read this carefully and calculate the costs assosiated.
Invest the necessary resources to deliver the documentation according to the
contract.
Documentation is 50% of the delivery!
How to become a supplier to Aibel and Shell:
Achilles registration!
Step 2: Mail regarding “New Vendor Request” will be issued from Aibel asking for
Address information
-
Ownership information
-
Initial Contact Information
-
Payment information
-
Aibel will evaluate and check / approve information
-
Aibel to perform verification of received information
-
Close / check any gap – go or no go
-
NB: Aibel use Achilles as the basis of “Approved Vendor List” and has it own area where
vendor information is available – Achilles is a “key” to be approved!
Step 3: How to become a supplier to Aibel:
Aibel`s Supplier Qualification Process consist of a “questionnaire” asking for info
on:
-
Management and leadership, information and analysis, strategic planning, human
resources, process management, business improvements and operational results,
customer focus and satisfaction, supply management and HES.
-
Aibel will evaluate and score completed form
-
Verification of received information (visit)
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Close any gap – go or no go
Prequalification levels if approved
Supplier Quality Management after approved
-
Supplier verifications/audits is performed, also based on “Key
Performance Indicators”
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Supplier approval and re-approval
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Maintenance of Aibel Approved Vendor List (Achilles)
-
Key performance indicators is established and shared with
supplier`s to agree if any corrective action is required on one or
both sides to improve performance.
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Non Conformance system in place
Typical findings at new suppliers
Missing or insufficient:
-
HSE thinking not according to expectations in the oil&gas industry
-
Presentation of organisation
- Missing organisation chart
- Diffuse responsibility
-
Systems for reporting of injury and sick leave
-
Target for TRIF factor and strategy to keep low
- Total Recordably Injury frequency
-
-
Number of injuries x 1 mill mhr / actual mhr
Risk management systems
Typical findings at new suppliers

Verification and Audit systems for subcontractors
■
Systems to satisfy Norsok S-006
■
Risk management of working environment
■
Treatment of nonconformance
■
Monitoring of ability to deliver, quality cost, ”on time delivery” etc
■
Documentation of prosesses and results of these
■
Systems for high ethics standard
■
Capacity and competence to handle complex systems
■
Engineering
■
Planning
■
Financial
Summary
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What to remember
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Aibel use only Achilles approved suppliers who are also Aibel approved.
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Aibel has an open approach regarding co-operation and new vendors.
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Aibel will keep “find contracts” updated to reflect current opportunities.
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All vendors to Draugen must be TA (Technically Approved) by Shell.
©
2008