Supplier KPI WorkGroup Meeting Sept 14th 2012-V3

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Supplier KPI Project Meeting
Houston PIDX Fall Conference - Sept 14th 2012
Chair
Vice Chair:
© PIDX, Inc. 2012
Daryl Fullerton
Mike Washington
Agenda Sept 14th Meeting
1.
Project status
–
–
–
2.
Objectives
Status project plan
Roadmap – Short / Long term
KPI portfolio
–
–
KPI Data Dictionary Template
KPI Supplier performance areas/categories –Discussions
3.
Statoil Overview –Performance Areas
4.
Performance area - Group work
–
Performance Areas Agreement
5.
Participant overview – role, competance and commitments – discussions
6.
Onwards London - Next meeting
–
–
–
Actions bullets – Individual To do’s
Deadlines
Rough- cut agenda discussions for London workshop
© PIDX, Inc. 2011
Supplier KPI Project Overview
Overview
The PIDX Supplier KPI Project focus is to develop a Supplier
KPI Data Dictionary (Phase 1) followed by Automation of
Supplier KPI data transfer between Suppliers and Oil & Gas
Operators (Phase 2)
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
Key Drivers – Why we Need
• Industry Wide KPI Definition Chaos
• Scorecard Overload
• Cost Savings Time = Money
• Better Data Accuracy
• Improved Data QA/QC
• Scorecard impact on working conditions.
Commenced: 2011 Participants : c70
[email protected]
[email protected]
Wins when Implemented
• Standardization on KPI Terminology
• Industry Recognized KPI Data Dictionary
• Standard for Supplier KPI Data Transfer
• Significantly better QPR’s
• Cost savings for Service Companies
• More Accurate Data for Operators
© PIDX, Inc. 2012
Goals and Objectives 2012 -2015
Short Term Goals (2012 Q3, Q4)
Medium Term Goals (2013 )
Educate / Recruit
Build Develop Grow
•Continue to meet, educate and recruit
additional interested parties to Supplier
KPI Workgroup.
•Grow Participant Numbers
• Performance Area Team Meetings.
Develop
•Define KPI DD Template
•Define 5 Performance Areas
•Nominate Performance Area Team
Leads
•Mapping KPI’s To Performance Areas
•Appoint European Vice Chair
•Draft Version 1 of Supplier KPI
•Draft Version 2 of Supplier KPI
•Quarterly Release of Data Dictionary
Develop
•Version 1 of Supplier KPI Data Dictionary
to be circulated to Participating Members.
•Add KPI’s to Data Dictionary.
Meetings
Regular Performance Area Team Meetings
via Telecall.
4 Quarterly Meetings Per Year (F2F)
Meetings
1 x London (Oct 2012)
Outputs:
Mapped Indicators to Performance Areas
Draft Version 2 of Supplier KPI
Outputs:
Release of Latest Version of KPI Data
Dictionary after each Quarterly Meeting
© PIDX, Inc. 2012
Long Term Goals (2014 - 2015)
•Publish Supplier KPI Data 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 Excel Version of Supplier
KPI Template for XML similar to RP76
HSE
•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
2011 - 2012
Workgroup Meeting Participation / Expressions of Interest
Operators
BP
Cairn Energy*
Chevron
ConocoPhillips
EL Paso
Green Energy
Murphy Oil *
Noble Energy
Nexen
Origin Energy *
Petroleum Development Oman
Penn West Exploration *
RWE
Shell
Statoil
Tullow Oil *
Wintershall
Suppliers
Aker Solutions
Amec
Baker Hughes
Cameron
GE Oil & Gas
Halliburton
KCI bv *
NCH Corporation
Quality Distribution Systems
Schlumberger
Siemens
Weatherford
Software / Consultancy
Cortex Business Solutions
8over8
Pervasive Software
FPAL / Achililes
PICS
Software AG
StoneBond
ThruBit Logging Solutions
Total Participants / Interested
Parties = c70
Last Updated Date: Sept 2012
(*) Expressions of Interest to
become involved.
© PIDX, Inc. 2012
Why Become Involved?
1.
2.
3.
4.
5.
Data Dictionary Access – Exposure to More
KPIs
Your KPI’s are Part of a Standardized
Industry wide Accepted KPI Portfolio
Access to Quarterly Release of Supplier KPI
Data Dictionary
Network with Industry Peers on best practices
and Lessons Learned on SRM
Get Guidance on Establishing Supplier KPI’s
© PIDX, Inc. 2011
Performance Areas Framework
Performance Areas
HSE
SUPPLIER
QUALITY
DELIVERY
COST
BEHAVIOUR
•7
•15/03/2016
•
Classification: Internal
Budget
Risks
Performance Areas Framework (Detailed)
•
•
The common performance area and are divided into sub groups.
The same performance areas are valid for all categories.
Performance
Area
Sub
performance
area L1
•
Within each Performance Area there are numerous performance areas
within three different sub groups:
Sub
performance
area L2
Performance indicators
General performance
indicators
TRIF
Category specific
performance indicators
Contract specific
performance indicators
SIF
HSE
Environmental
Incidents
•
Risk Management
Time
Material delivery
Flexibility
SUPPLIER
DELIVERY
Service delivery
QUALITY
Quality deviation
Total cost
COST
Compliance with
compensation
format
Cost reduction
Market
benchmarking
BEHAVIOUR
•8
•15/03/2016
•
Classification: Internal
Quantity
Performance
indicators
applicable for most
contracts and
categories.
To be developed
See OTIF materials
Example:
• HSE is relevant
within most
categories
• Owner: HSE
Procurement
•
Performance
indicators which
may vary
according to the
needs of the
categories.
Example:
• Rig availability is
relevant within
Drilling & Well.
• Owner: Category
manager
•
Performance
indicators which
may vary
according to the
needs of the
contracts.
Example:
• Characteristics
related to a
specific product
• Owner: Contract
responsible/Comp
any representative
Lost time incidents (LTI)
Total recordable
injuries frequency
(TRIF)
Restricted work cases (RWC)
Medical treatment cases (MTC)
First Aid cases (FAC)
Work related sickness
Dropped objects (actually)
Near Miss (Nr)
No. Near miss / Actual incidents
HSE
Serious incidents
frequency (SIF)
No. Authority Notification
Security incidents
Environmental
Incidents
No. Serious spills
No Spills
HSE program
Risk Management
Risk Assessment
Sub supplier monitoring
•9
•15/03/2016
•
Classification: Internal
Activity list
Average day action over due
Delivery
Time
Material delivery
DELIVERY
Quantity
Flexibility
Service delivery
•10
•15/03/2016
•
Classification: Internal
See OTIF materials
Quality
Examples of performance indicators:
Procedure violation
Breach of contract
Quality of Material
System failure
Technical deviations
Insufficient documentation
QUALITY
Labelling and packaging deviation
Drilling performance – m/day
Rig capacity (rig time available)
Manpower capacity (organisational development
compared to plan)
Quality of Service
Procedure violation
Breach of contract
System failure
Technical deviations
Insufficient documentation
Labelling and packaging deviation
•11
•15/03/2016
•
Classification: Internal
COST
Cost
•12
•15/03/2016
•
Classification: Internal
Examples of performance indicators:
Total cost
Invoiced value*, Ordered value, Delivered
value, Spend framework agreements,
Production cost, Unforeseen costs, Costs
related to claims, Maintenance estimate,
Lifecycle costs, Variaton/change orders,
Value/Cost, Cost of poor quality
Compliance with compensation format
Number of invoices with errors, Number of
non-compliant cases registered
Cost reduction
Bonus, Stretch targets, Increase of efficiency
Market benchmarking
Rate level, Price trend, Benchmark price
Behaviour
Compliance with Supplier Declaration
Follow-up of sub-suppliers’ compliance with Supplier Declaration
Corporate social
responsibility (CSR) and
ethics
ISO 26000 Social responsibility (human rights, working conditions, environment,
trustworthy conduct, local community contribution)
Compliance with ethics standards
Completed ethics and anticorruption compliance e-learning programme
Assessment made by IDD-unit prior to contract signing (passed audits, risk areas,
rating of the supplier and follow-up actions)
Environmental impact assessment
Behaviour
Code of conduct compliance (Online portals with self assessment questionnaire
compiled into a report for each company. Example: Sedex, BSCI, Factlines)
Supplier meetings (Y/N, #meetings)
Collaboration
Prioritisation of Statoil
Compliance & Leadership training completed
Responsiveness and availability
Service orientation, attitude and proactivity
Innovation
New ideas leading to improvements (internally or in Statoil), delivery, quality, cost
reduction, standardisation, business process
Number of patents
•13
•15/03/2016
•
Classification: Internal
Project Contacts
Project Chair: Daryl Fullerton
Email : [email protected]
Daryl has been working within the Oil & Gas Industry for the last 12 years. His area of specialism is Supply
Chain & Procurement Management Solutions including Supplier Performance Management Systems,
Supplier Risk Management, HSE Performance Management, Drilling Performance Management, P2P, B2B
integration, and eInvoicing. Clients he has worked for include BP, BG-Group, ConocoPhillips, Chevron,
Noble Energy, Origin Energy, Oxy, Respol, Shell and TNK-BP.
Daryl now works with Pervasive Software as Oil & Gas Industry Principal.
Daryl is Chair of the PIDX Supplier KPI Standard Workgroup and is actively working with Operators and
Service Companies to better define Supplier KPI Terminology and to automate this data gathering
process. He is also a Member of the Aberdeen Group Global Supply Chain Research Council.
Daryl studied Accountancy at University College Galway and went on to complete a MA in Advanced
Accounting and MSc in Computing and Information Systems, Daryl is a member of SPE, IADC, ISM and a
frequent speaker at Oil & Gas Supply Chain Conferences.
Project ViceChair : Michael Washington
Email : [email protected]
Michael, has been working within the Oil & Gas Industry for the last 8 years and is currently in the role of
Integrated Performance Lead at Conoco Phillips. His area of specialism is Global Supplier Performance
Management, KPI development and Quality Performance reviews, Software Implementation, Performance
Management tools, Metrics, Economic modeling & analysis, Supplier Risk Management, Business
Planning, Production scheduling, Procurement, Supply Chain, Material Planning, HSE Performance
Management, Drilling & Completions Performance Management, Strategic Sourcing, and Process and
Quality Management
Michael is Vice Chair of the PIDX Supplier KPI Standard Workgroup and is actively working with Operators
and Service Companies to better define Supplier KPI Terminology and to automate this data gathering
process and has participated in several Oil & Gas Supply Chain Conferences
He acquired his BBA at Sam Houston State University, Michael is a member of ISM, SPE, APICS, and has
a Six Sigma Green belt Certification, and APICS certification courses
© PIDX, Inc. 2012
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