PIDX Supplier KPI Project Update
PIDX Executive Update – Dec 18th 2013
Daryl Fullerton, PIDX International
© PIDX, Inc. 2012
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
Overview
Project Recent Wins – (Nov Dec 2013)
KPI Dictionary Update
Status Update on Timeline
12 Point Plan ( 2014 - Next 6 Mths)
Marketing the Supplier KPI Project
Challenges
AOB
© PIDX, Inc. 2011
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
Contact: Daryl Fullerton
Mike Washington
Commenced: 2011 Participants : c80
dfullerton@pidx.org
michael.washington@conocophillips.com
Key Drivers – Why we Need
Wins when Implemented
• 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.
• 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
© PIDX, Inc. 2012
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)
1.
2.
3.
4.
5.
6.
7.
8.
9.
BP on Board Project
IACCM interested in Joining Project
BP Submitted KPIs
Shell - Participation forms Submitted
Talks held with 8over8 about joining ( Contract
Specific KPIs for Major Projects)
Chevron now have Nominated a dedicated
representative
In talks with Glencore Xtrata about joining (they
are one of the Worlds largest Mining & Exploration
Cos)
In talks with Aramco about joining.
Interest from Genel Energy (Tony Hayward is
CEO), Conversations had, Follow up Jan 2014
© PIDX, Inc. 2011
Project Plan
Project Timeline 2013- 2014
KPI
Dictionary
(alfa version)
KPI Dictionary
Standardized
Version 1
KPI Dictionary
(Beta version
Segmentation)
Q1
2014
Q1
2013
KPI Selection
(Critical few)
KPI Definitions
Standardized
Performance Areas (Level 1)
Framework Agreed
SUPPLIER
Level 1
•9
•12/03/2016
•
Classification: Internal
•
HSE
•
QUALITY
•
DELIVERY
•
COST
•
BEHAVIOUR
Supplier KPI Data Dictionary Update
(Dec 2013)
Accomplishments to Date
1.
2.
3.
4.
5.
Template for Data Collection Agreed.
5 Performance Areas Defined and Agreed.
Over 440 KPI’s recieved and in progress of
being added to Master Data Dictionary
KPI’s Submitted by 15 Companies
Planning for Conversion of KPI Dictionary
Spreadsheet to from Excel to Data Base
underway.
© PIDX, Inc. 2011
KPIs to Standardize
KPI Name
KPI Definition
Total Recordable Incident Rate
(TRIR)
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)
= Recordable Cases * 200,000 / Hours Worked
Submitted V Standardised
Goal = Feb 2014 Publish the
21 or so KPIs for
Industry Feedback
Participation Update
2011 - 2013
Workgroup Meeting Participation / Expressions of Interest
Operators
Apache
BP
Cairn Energy*
Chevron
ConocoPhillips
EP Energy
Genel
Kinder Morgan
Murphy Oil
Marathon
Noble Energy
Nexen
Penn West Exploration
RWE
Sasol
Shell
Statoil
Talisman
Tullow Oil
Wintershal
Service Companies / Suppliers
Aker Solutions
Amec
Baker Hughes
CBI
Cameron
GE Oil & Gas
Genel
Halliburton
Oceaneering
Pacific Drilling *
Schlumberger
Siemens
Tetra Technologies
Transocean
Weatherford
Total Participants / Interested Parties = c80
Last Updated Date: November 2013
© PIDX, Inc. 2012
KPI Data Dictionary Contributing Companies &
Organisations & Desired State
KPIs Submitted to Date
Already Submitted KPI’s
Afren
BP
Conoco Philips
Halliburton
Nexen
OSHA
Actian
PICS
Wintershall
Hackett Group
Sasol
Statoil
Wintershall
Followups
Apache
Aker Solutions
Anadarko
Amec
Baker Hughes
Chevron
Cameron
GE Oil & Gas
EP Energy
Hess
Marathon
Oceaneering
Pacific Drilling
Schlumberger
Transocean
Weatherford
Wintershall
Update as at Sept December
And as many more contributors as we can get.
Total Participants / Interested Parties = circa 80
Last Updated Date: December 2013
© PIDX, Inc. 2012
Future Meetings / Deliverables Schedule
(Next 6 Mths)
Meetings
Supplier Performance Dictionary
releases
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
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
© PIDX, Inc. 2011
Success – PIDX Standard for Automated
Transmission of KPI Data between Suppliers and
Operators
Service Co 1
Operator
1
Service Co 2
Service Co 3
Operator
4
Operator
3
Clients
SPM
Service Co 3 CRM
KPI Data Inputs
Operator 1
Operator 2
70 KPI Data Inputs
SPM
26 Data Inputs
Internal DB’s
Service Co 1
Service Co 2
Service Co 3
140 Data Inputs
12 Point Plan
12 Point Plan ( Q1-Q2 2014)
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
1.
© PIDX, Inc. 2011
Marketing
Marketing Plan for Supplier KPI
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
© PIDX, Inc. 2011
Assistance Required
Challenges / Assistance Required
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
© PIDX, Inc. 2011