SAP s Commitment to Interoperability. High North IO Interoperability Workshop September 16, Chuck Pharris Oil and Gas IBU

Transcription

1 SAP s Commitment to Interoperability High North IO Interoperability Workshop September 16, 2008 Chuck Pharris Oil and Gas IBU

2 Agenda 1. SAP Upstream Perspective 2. We Get It 3. Owner Operators Already Using SAP to Tackle This Problem 4. Summary SAP 2007 / Page 2

3 Upstream Environment: The Battle For New Resources Balancing Profitability against Sustainability NOC s EXPLORE APPRAISE PRODUCE Control Resources DEVELOP DISPOSE Sustainability NOC s Exploit Niche Resources Independents Harvest Mature Resources Integrated Majors Compete for Resources Integrated Majors FOR SALE Independents $ Profitability

4 Today, Many Barriers Exist to Achieve Both Profitability and Sustainability in the Upstream Oil & Gas Industry Difficult to provide transparency and manage complex ownership and partnership relationships EXPLORE APPRAISE PRODUCE Challenge to reduce F&D and production costs for assets with increasing complexity & remoteness Difficult to acquire, develop, and manage an aging and tightening industry talent pool DEVELOP DISPOSE Lack of interoperability across production asset s design to disposal lifecycle EH&S requirements disconnected from normal asset operations Sub-optimal portfolio of competing capital investments Unable to efficiently maximize production from existing pools Difficult to assess assets true relative performance to make timely disposal decision

5 Upstream Players Can Better Balance Profitability and Sustainability by Providing Ownership transparency, compliance and controls across asset lifecycle EXPLORE APPRAISE PRODUCE Result: Compliant and managed international relationships with competitive advantage DEVELOP Integrated operational management of remote assets Result: Reduced Finding & Development and lifting costs Employee Lifecycle & Knowledge DISPOSE Result: Improved productivity & safety with less HR cost Interoperability across lifecycle with all constituents and their systems Result: Reduced capital & improved asset performance Integral management of EH&S requirements along the value chain Result: Improved safety and compliance at lower cost Result: Improved ROCE, reduced risk, improved asset portfolio performance $ Full visibility and analysis of capital & productivity improvement projects Accuracy and transparency into asset s relative performance in portfolio

6 Agenda 1. SAP Upstream Perspective 2. We Get It 3. Owner Operators Already Using SAP to Tackle This Problem 4. Summary SAP 2007 / Page 6

7 SAP 2007 / Page 7 We Understand the Interoperability Objectives Return on Assets Asset Utilization: OEE, Run Time, Availability Dashboards & Alerts Performance: Quality, Cost, Yield, On-Time Energy use Safety/Compliance 6 sigma, Lean, Reliability Teams Profit/Usage per Route, Plane, Media Asset etc Inventory Days

8 SAP 2007 / Page 8 We Understand the Key Trends that are Driving Towards Interoperability 1. Business Performance Optimization Leveraging of all data sources to improve quality and speed of decision making WWW 2. From Individuals to Communities Collaboration accelerates on boarding, improves efficiency and speeds innovation 3. From Businesses to Business Networks Focus on core competencies enables maximum productivity

9 SAP / Page 9 Managing Asset Lifecycle Continues to be a Disjointed, Tedious and Frustrating Process We Understand the Current State Asset Performance Excellence Remains Elusive HQ Design/ Engineer Engineering V.P. Operations Operations Maintenance Audit/ Retire Acquire Maintain Construct Commission Operate

10 We also Understand the Goal? Integrated Processes on a Business Process Platform v SAP 2007 / Page 10 Manage the entire asset lifecycle, maximize its use and productivity and ensure adherence to enterprise and regulatory procedures

11 SAP / Page Joerg 11 Koesters 11 SAP Maximizes Asset Performance in the Process Industries across Full Lifecycle Process Industries PLAN & DESIGN PROCURE & BUILD COMMISSION OPERATE MAINTAIN RETIRE Design, Build and Commission Asset Visibility and Performance Maximize Asset Uptime Asset Safety and Compliance

12 SAP 2007 / Page 12 Asset Safety and Compliance Closed Loop of Key Operational Risks Zero Incident Rate = Realize Corporate Safety Strategy and Risk Transparency and Operational Risk + + Assure Process Safety + Mitigate Asset Integrity Risks Chief Compliance Officer (Sponsor) COO, Chief Compliance Officer Plant Manager, Environmental Engineer, Chief Compliance Officer Plant Manager, Industrial Hygiene and Safety Officer, Chief Compliance Officer Plant Manager, Maintenance Manager, Engineering Manager KPIs: Safety Record Public Reputation Corporate Fines and Penalties Cost of Compliance Value Proposition Keep the Stakeholders Informed and Involved Establish safety strategy, risk management, compliance policies & objectives Governance & reporting structures of Change Process Provide transparency to all stakeholders Keep the Environment Safe Transparency on worldwide environmental legislations and internal policies Cost efficient management of compliance Enterprise wide objectives & reporting Community advocacy Keep the People Safe Create a proactive health and safety strategy and realize it in daily operations and procedures Manage compliance and control exposure to hazardous substances Incident management, reporting and learning Keep the Assets Safe Increase reliability of assets while decreasing maintenance costs Realization of various maintenance and safety strategies Effective prevention of incidents that harm people or the environment The COO and Chief Compliance Officer will drive towards a zero incident rate, reducing operational risks and improving public image as a result of providing a closed loop operational risk management system enabled by comprehensive solution that identifies, plans & executes mitigating actions, and monitors all environmental, safety, and mechanical integrity risks in a proactive and compliant manner powered by SAP ERP, SAP Environmental Compliance, SAP EH&S, SAP Learning Solution, SAP GRC Risk, Business Objects, SAP MII, SAP Mobile Asset and RCMO by Meridium.

13 SAP 2007 / Page 13 Asset Safety and Compliance Enabling Process Safety, Standardization and Visibility Chief Compliance Officer (Sponsor) Performance Monitors: Safety Record Public Reputation Corporate Fines and Penalties Cost of Compliance Integrates Business Processes Across Stakeholders COO, Chief Compliance Officer Keep the Stakeholders Informed and Involved COO, Plant Manager, Chief Compliance Officer Keep the Environment Safe COO, Plant Manager, Chief Compliance Officer Keep the People Safe COO, Plant Manager Keep the Assets Safe Chief Compliance Officer Corporate EHS KPI Monitoring Corporate EHS Risks Corporate EHS Compliance Reporting EHS Audit COO Corporate EHS KPI Monitoring for Operations Corporate EHS Risks EHS Compliance Reporting for Operations Plant Manager Task Execution and Reporting Environmental Permit, Risk, Requirement Operational H&S Risk Analysis for Work Areas Operating Permits Risk Analysis for Critical Assets Environmental Engineer Task Execution and Reporting Environmental Permit, Risk, Requirement Action, Deviation and Response Planning Data Collection for Emissions, Consumption, Measurements Environmental Incident and Reporting Industrial Hygiene and Safety Officer Task Execution and Reporting Operational H&S Risk Analysis for Work Areas Safe Operating Procedures, Certificates and Training Occupational Health Occupational Incident and Reporting Permit to Work/ Lockout Tagout Maintenance Manager Engineering Manager SAP 2007 / Page 13 Task Execution and Reporting Design/Change Assets for Safety Maintenance Strategy Maintenance Planning Maintenance Work Orders Permit to Work/ Lockout Tagout

14 SAP has Portfolio, Ecosystem, and Platform to Meet Significant Portion of the Need Designing, Building and Commissioning Assets Asset Visibility & Performance Maximize Asset Uptime Asset Safety and Compliance Value Extensions Primavera Inspire Meridium - RCMO NRX Asset Center Open Text SAP RPM Meridium - RCMO Primavera Inspire NRX Visual Information for Plants SAP MAM SAP E-Sourcing/CLM Open Text Meridium - RCMO SAP GRC Risk Work Clearance SAP Environmental Compliance Infrastructure Options Adobe Interactive Forms Analytics (BI, Business Objects) SAP MII Foundation SAP PLM SAP NetWeaver (PI, MDM, et. al.) SAP ERP (PM, PS, MM, et. al.) SAP EH&S Note: SAP Learning Solution applicable to all projects SAP 2007 / Page 14 = Partner Solutions

15 SAP Understands the Power of Community Business Strategy Business Process Design Technology Architecture Solution Composition Implementation Operations Industry Thought Leadership Industry advisory council* Set the focus identify trends Industry Value Network Complete a solution with partners Co-innovation of Companies Industry standards initiative Enterprise Define common Service interfaces Community Identify and define Services Enterprise Services Community Define enterprise services for ES Repository Collaboration of Individuals Business Process Expert community Compose processes User groups* Connect, learn, influence, grow SAP Developer Network Technical implementation * Not a part of the communities of innovation at SAP, but a critical element in an SAP customer s options to work collaboratively SAP / Page 15

16 Agenda 1. SAP Upstream Perspective 2. We Get It 3. Owner Operators Already Using SAP to Tackle This Problem 4. Summary SAP 2007 / Page 16

17 PEMEX Gas speeds Information Delivery through connecting Plant and Enterprise Systems SAP 2007 / Page 17

18 Asset Safety and Compliance Success Story: Valero Energy Corporation HQ: San Antonio, Texas Annual Revenues: > $90 B USD (2006) Total Assets: $38 B USD Number of Employees: Approx. 21,000 Refining Throughput Capacity: 3.1 mil brls per day Number of Retail / Wholesale Sites: Approx. 5,800 Number of Wholesale Markets: 44 U.S. states, Canada, Latin America and the Caribbean region What: Successfully deploying HSE Asset Safety and Compliance solution across all operations to gain greater visibility Time: Initiated in Q4 2007, to be completed by Q Goals and Objectives for Project: Greater visibility to operations, safety and compliance Sharing of best practices across operations Proactive management of leading / lagging indicators Improved monitoring of assets, processes, performance Increased visibility to portfolio, incidents, risks and operations SAP 2007 / Page 18

19 Valero Energy High-Level Visibility Architecture for Asset Safety and Compliance SAP 2007 / Page 19

20 Visibility Architecture Deployment Plan for Asset Safety and Compliance SAP 2007 / Page 20

21 Near Real-Time Stakeholder Dashboard for Asset Safety and Compliance SAP 2007 / Page 21

22 SAP 2007 / Page 22 Solution Reduces Losses at the Plant, Shares Best Practices and Increases Visibility Deployed at 17 Refineries, integrating: 4 distinct process historians Dozens of other unique legacy systems and databases Proprietary technologies Highly detailed and inconsistent data Distributed environment w/sensitive bandwidth Created visually stimulating UI Executive Operations Center Media wall Plasma panorama Graphical, colorful, meaningful display Process Control Metrics Volume analysis Inventory control Process safety statistics Energy stewardship

23 SAP 2007 / Page 23 SAP is Committed to Open Standards Many examples of open platform success. Standards Development Business Process Integration

24 SAP 2007 / Page 24 SAP is Committed to Interoperability Already broadest portfolio of natively integrated solutions that span the enterprise We have a proven SOA platform that is being used for interoperability today We have multiple development/delivery approaches that would facilitate delivery of Open O&M standards We have the power of community to help drive both development and adoption

25 SAP / Page 25 Thanks for your attention Any questions? Ken Evans Sr. Director - Oil & Gas Industry Solution Marketing SAP Global Marketing Inc. T: E: ken.evans@sap.com Chuck Pharris Solution Manager Refining Industry Business Unit SAP Labs Inc. T: E: chuck.pharris@sap.com Mark Pyatt Sr. Director Mining & Mill Products Industry Solution Marketing SAP Global Marketing Inc. T: +1(469) E: mark.pyatt@sap.com

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