WorleyParsons Procurement How Can We Balance Quality With Value? Tim Armstrong Village Urban Resort, Bury 20 October 2015

Transcription

1 WorleyParsons Procurement How Can We Balance Quality With Value? Tim Armstrong Village Urban Resort, Bury 20 October 2015

2 The Value vs Cost Balance Is it ever OK to choose Cost over Value? Are there hidden impacts with the cheaper alternative? Energy Industries Council (EIC)

3 Potential Hidden Costs Iceberg Energy Industries Council (EIC)

4 Quality starts with. This goes for process, as well as product (eg delivery, service etc.) Energy Industries Council (EIC)

5 Heard any of these? It s only a small thing No we don t need to check it What could go wrong? We ve always done it that way Yeah but these people are much cheaper We are restricted to use this company They can sort that out later Get worried Energy Industries Council (EIC)

6 Time Checking is an Investment Energy Industries Council (EIC)

7 Cost Quantums The trouble is, that Prevention cost is the only one appearing on a spreadsheet! Energy Industries Council (EIC)

8 Quality in a nutshell Energy Industries Council (EIC)

9 Japanese Approach We can improve Quality while reducing Costs and schedule Japanese automotive industry is a good example Have you looked at Lean Techniques for your business? Energy Industries Council (EIC)

10 Lean Initiatives 1. Transport Reduce transport arrangements 2. Inventory Eliminate / reduce inventory. Where feasible. 3. Motion Is there wasted effort in your delivery process? 4. Waiting Dead time, check where waiting is a hold-up in your process. 5. Overproduction Are you making too much of something? 6. Over-processing Are you working too hard in making something? 7. Defects Avoid Energy Industries Council (EIC)

11 In closing Quality doesn t just happen. It is planned and diligently executed Communicate are you supplying what is wanted? Are you getting what you ordered? Get clarification assumption is the mother of all foul-ups Eliminate Waste! Simple processes are the easiest to follow and the most robust Energy Industries Council (EIC)

12 Counterfeit, Fraudulent, and Suspect Items (CFSI) The threat of CFSI is a growing concern in the globalised business environment (UNODC 2010; EPRI 2009). Increasing trends in global outsourcing, the transnational nature of projects and products, and the ease of transferring information and knowledge have all changed the dynamics of global business; within this new environment, industry has seen a substantial increase in the number of CFSI cases. This trend has created a critical need for in-depth research of the current industry strategies and practices to mitigate the loss of product integrity in the capital project supply chain. (See Figure 1.) Energy Industries Council (EIC)

13 CFI Risk Energy Industries Council (EIC)

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15 Customer Sector Groups Infrastructure Minerals, Metals & Chemicals Hydrocarbons Infrastructure 15 Environment & Society Water Ports & Marine Terminals Rail Restoration Specialist Infrastructure Resource Infrastructure Urban Infrastructure Coal-fired Power Gas-fired Power Nuclear Power Networks Renewable Energy Resource Power Advanced Solutions Aluminum Bauxite & Alumina Base Metals Chemicals Coal Ferrous Metals Iron Ore Pit to Port Arctic & Cold Climate Floating Production Systems Gas Processing Heavy Oil & Oil Sands INTECSEA LNG Offshore Topsides Onshore Developments Petrochemicals Pipeline Systems Refining Sulphur Technology Unconventional Oil & Gas

16 Office Locations Diverse geographic presence 31,400 people 148 offices 46 countries 16

17 Delivery Organisation Deliver large, complex, strategically important projects with success and certainty Agile, reliable, fit-forpurpose business, bringing global expertise and networks to our customers locally Long term strategic partnerships with customers, delivering value through performance and an integrated offering that maximises capital efficiency of existing assets 17

18 18 Procurement Process

19 19 Procurement Risk Areas

20 How to do Business With WorleyParsons Self Registration on WorleyParsons Supplier Portal Key Contacts can identify relevant prospects and identify lead buyers on specific projects. Keep in contact but not too frequently Most of WorleyParsons Clients require bidders lists to be based on Clients Approved Vendor List. Perform well and you will get repeat opportunities 20

21 Supplier Portal Designed to provide WP Buyers worldwide with a single Global supplier Database. Standardized process for registration and establishing capability of Suppliers Self registration to input Supplier details Mandatory acceptance of Supply Chain code of Conduct and ethical terms and conditions Enables performance rating against PO s/ Subcontracts Enables Prequalification of Suppliers Us/Opportunities/Pages/default.aspx 21

22 Key Contacts Tim Armstrong Procurement and Contracts Manager WorleyParsons Northern Operations. Signal Point, Bredbury Park Way, Stockport, SK6 2SN, UK 22

23 Any questions? Tim Armstrong Village Urban Resort, Bury 20 October 2015

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