3Oracle Solutions Manage the Complete Lifecycle Oracle provides a complete, integrated set of solutions to meet the complex needs of the oil & gas industry. Only Oracle enables oil companies a comprehensive, integrated view of operations that are transforming the oil and gas business.Oracle Primavera focuses on key Upstream and Downstream areas, including capital project planning and maintenance.Oracle Maintenance Focus
5Why is Asset Lifecycle Management Important in the Oil & Gas Industry? The principles of the asset lifecycle have become more refined as Oil & Gas business models change and the spotlight of the regulator begins to focus on asset value and performance measures.There is now a greater dependency and need for the business to optimise the balance of risk and safety, cost and performance for all capital asset intensive projectsBest practices in asset management is now about linking business strategy and values to key business processes across the asset lifecycle – value lies in supporting asset lifecycle decision-making
6Asset Management At-a-Glance Asset StrategyPlanning and ExecutionBreakdown & ResponseTracking & CompliancePerform total cost analysisDevelop asset & spares strategiesEstablish 3rd party relationshipsCreate scheduleAllocate / procure materials & servicesMaintain, repair, build, or disposeIdentify unplanned maintenance / repairApprove / schedule work requestTrack and report projects & costsVerify complianceManage performance“Some Enterprise Asset Management vendors can mitigate the costs of a best-of-breed strategy by providing ready-to-use, fixed-price, productized integration; however, many buyers we talk to are looking for single-vendor solutions that provide fewer risks in relationship management and future upgrades.”– Kristain Steenstrup, Research Vice PresidentMaintenance can be boiled down into two transactions: things break and you have to fix them. Therefore, Asset Maintenance is the process of identifying a problem and resolving it through planning and execution of traditional maintenance activities. Material and resource availability must be taken into account when scheduling this maintenance.“Resource” is defined as including Labor and Equipment
7Asset Lifecycle Management InternalExternalEngineeringOperationsSuppliersContractorsRequirementsSpecificationsDrawingsSchedulesDefectsOrdersAdvancedCollaboration ToolsProject ManagementAsset Portfolio MgmtBuild / AcquireOperate / MaintainRetire / DisposePlanCommissionAssetMaintenanceAsset IntelligenceFinancialManagementOne of the most important uses of an EAM system is to provide full asset life cycle management. the functionality to plan and execute large projects over the life of assets so that a complete picture can be built up of the asset, its full service history and costs, so that an informed decision can be made on the disposal strategy.With this approach the equipment can be operated and maintained with a full asset history right through to disposal from the very first day it is commissioned.Global Asset Repository77
8Oracle Asset Lifecycle Management 80% of Maintenance CostDetermined by DesignBusinessModelingDisposeCapitalPlanDecommissioneAM EPPMAutovueBudgetManageDesign/SpecifyMaintainIntegrated lifecycle management means than managing maintenance work, materials and MRO Purchasing..(Shot at point vendors who define “Asset Lifecycle Management” in this way. Believe me, they will have heard this from point vendors.) Lifecycle management means MRO information is integrated with enterprise data sources—design, construction, fixed assets, purchasing et al—to insure hat all impacts are considered when managing the asset lifecycle.Construct/ProcureOperateInstall60% of Quality ProblemsAre Equipment RelatedKnowledge Transfer Loss10-20% of Total Investment8
9Out-of-the-Box Enterprise Integration Link to ALL Business Functions Across the Enterprise ReceivingPRIMAVERAAUTOVUESubcontractingTime &AttendanceProcurementManufacturingInventoryProjectsTeleserviceTime EntryWO Materials, Reqs Linked to WO & WorkflowTransactionsCostsUpdatesService Request Linked to Work OrderProject / Task, WO CostsProduction& Maint WOiSupplierPortalCustomersSuppliersWO Updates, CatalogsKPIs, Charts, ComparisonsIntelligenceEmployees& SkillsBalancedScorecardHumanResourcesPosting IntegrationLeases &ContractsChart of AccountsWOBillingAssetCapitalizationAssetLocationPropertyManagerAccountsPayableGeneralLedgerAccountsReceivableFixedAssetsAssetTrackingRequisition & PO Changes, AP-to-PO Matching & Reconciliation, AP-to-FA Mass Additions
12What makes up Oracle’s Visual ALM Solution? AutoVue Enterprise Visualization + Oracle Asset Lifecycle Management SolutionsDifferentiate your Oracle ALM and Asset Management solutions by adding document visualization and collaboration capabilities to your business processesAdd unique value to asset management processes
13Specialized information is left out of the enterprise network Document Collaboration Challenge The Asset Information Management ChallengeEnormous volume of varied informationToo many islands of informationEngineering data locked in engineeringRapidly changing environmentMultiple versions of the truthIncreasingly complex compliance requirementsSpecialized information is left out of the enterprise network
14AutoVue Enterprise Visualization Collaborate Securely on Any Document Contracts, RFIs,…Floor Plans, 2D Specs…3D models, assemblies…View, access and share any document typeAdd digital annotations and commentsCollaborate in real-time via the WebAccess document online and offlineIntegrate into back office, content management, front end solutionsMaintain data security and integrityPrint & batch print documents14
15Oracle’s AutoVue Annotations speed up reviews and approvals Annotations/Red lines as separate layersGraphical and textual componentsMultiple levels of annotationsOriginal document not affected15
16eAM Primavera Projects AutoVue AutoVue Visual Applications Capitalize on Asset Information to Drive Process Innovation80% of Maintenance CostDetermined by DesignConnect islands of infoVisual context within business processesPPM – validate tasks feasibilityALM – improve workforce productivityEnrich visual context throughout asset lifecycleVisually document changes of configurationCapture repair best practicesInstallDesign/ SpecifyBusiness ModelingCapital PlanOperateMaintainConstruct/ ProcureManageBudgetDisposeDecommissioneAM Primavera Projects AutoVueNote: Make sure to explain that we are talking about the Asset Information Management challenge, as well as the Product Information Management challenge.60% of Quality ProblemsAre Equipment RelatedKnowledge Transfer Loss10-20% of Total Investment
22Oracle Enterprise Project Portfolio Management Single Corporate System of Record Project Financial ManagementPortfolio Management & OptimizationProgram & Project ManagementResource ManagementRisk ManagementEnterprise Resource ManagementHuman Capital ManagementFinancial ManagementFinancial OperationsGovernance Risk & ComplianceStrategic HCM ProcessesWorkforce Service DeliveryWorkforce Admin. & ManagementSupply Chain ManagementEnterprise Performance ManagementProduct Lifecycle ManagementProcurement/ Value Chain PlanningTransportation & LogisticsStrategy ManagementBusiness PlanningProfitability ManagementOnly comprehensive Enterprise PPM solution from a single vendorCoherent and complete solution for Enterprise PPM with ERP, database, middleware, and analytics)Bringing together complex scheduling and industry-specific PPM processes with project financial management, skills and inventory management, and other enterprise solutionsEnd-to-end visibility and control for improved decision making, coordination, and collaborationConsolidated view of enterprise and project portfolio for an accurate, up-to-date view of project, people and financial performanceOLTP & ODSSystemsDesktopExcelXMLBusinessProcessCollaboration Processes
23Enterprise & Plant Challenges: Integration to Drive the Optimization of Capital, Assets and People Capital InvestmentStrategically managing portfoliosAssessing, modeling and mitigating riskEnhancing visibility of EPC partnersManaging complex programs & projectsAsset EfficiencyManaging scope changes quicklyAccess to real-time dataCollaboration throughout the companyMetrics/measurement to drive KPIsTalent ShortageAssigning the right people to the right projectsLeveling resources and resource optimizationPoor resource utilizationAs outlined on the previous slide, fragmented and siloed information and data makes the 3 key challenges of the enterprise and plants even worse. Lack of real time information from numerous sources in order to make the correct business and project management decisions is impacted.With business information in multiple silos that do not communicate, with time lags between information updates, and what has happened at HQ, the plant and the field, we end up managing projects through the review mirror.A good example is the accounting system. Historical information, typically two to three weeks old. But it does not allow for proactive project management.Proactive project management is needed to address the above challenges; with robust PPM solutions, interoperability and access to real-time information many of the challenges can be addressed.
24Optimizing Existing Assets: Operational Excellence Drives Success in a Down Economy PlanCan we prioritize the maintenance backlog?Do we have the right – or enough – resources and capacity for success?Have we considered major risk factors including suppliers/service providers, weather, etc?Can we leverage best practices to reduce planning time and mistakes?Can we effectively communicate status/progress internally and externally?ExecuteCan I collaborate/coordinate with service providers through the project lifecycle?How do I balance resources across daily work, turnarounds and capital projects?Can I level resources to avoid over-allocation?Are we preventing scope creep?How can I continuously assess schedule & cost risk effectively?MeasureCan I improve unplanned downtime through better resource management?Will I minimize safety issues if I have the right people on the right projects?Can I increase wrench time and craft productivity with a diminishing pool of resources?Will I be able to measure service providers/contractors performance?How can I improve ROA and asset efficiency for stakeholders?
25Optimizing Existing Assets Reducing Daily & Shutdown/Turnaround Maintenance Costs ChallengeScheduling and leveling resources – both labor & equipment – from EAM applications to avoid over-allocationAdopting best practices and leveraging past experiencesAssessing costs and schedule risksSolutionOptimal resource use by getting the right people on the right projects at the right timeCapturing standardized processes for re-use (e.g., project templates)Enabling risk simulation (e.g., Monte Carlo) and analysis of projectsResultsKuwait National Petroleum Company reduced shutdown duration by 7% and saved over US$21M yearMarathon Oil avoided costly mistakes and delays by integrating processes with contractorsTotal is reducing costs by adopting project risk management practicesSimply put, maintenance is an expense so any reduction in the expense falls to the bottomline. The labor component of maintenance presents a challenge most notably because the costs associated with labor provide the greatest area for savings. Because making sure resources are available, qualified and deployed quickly to a project reduces costs. In addition, failure to get the right people on the right jobs has implications beyond cost, including safety and regulatory issues.Another example centers on the integration of Primavera and EAM (Enterprise Asset Management) solutions. Work Packages (generated via the EAM) contain numerous work orders which – without Primavera integration – necessitate opening each work order to see the specific resources allocated to the work order. With Primavera it’s one click and the total resource allocation for the Work Package is depicted graphically without the onerous and time wasting task of manually opening each work order in each Work Package.
26Doing More with Less: Get the Right People On the Right Projects at the Right Time PlanHow do I forecast my resource requirements 5, 10, 15 years into the future?How do I ensure I have the right resources for the project?Are we over/under allocating resources?Do our partners or service providers have the necessary skill sets?ExecuteHow can I quickly adjust for illness and other risk factors?If my other projects are delayed how does this affect my resource plan?Can I continuously monitor projects for issues and resource bottlenecks?How do we ensure adequate communication between the resources and project controls?MeasureHas craft productivity increased?Are we capturing best practices for the next generation?Did we reduce errors by assigning the right skill to the right task?Are resource constraints delaying the delivery of the project?
27Optimizing Existing Assets Reducing Daily & Shutdown/Turnaround Maintenance Costs Solution 1: Optimal Resource UseView available resourcesAvoid over allocation of resourcesSolution 2: Capturing Standardized ProcessesDevelop best practices
28Optimizing Existing Assets Reducing Daily & Shutdown/Turnaround Maintenance Costs Solution 2: Enabling Risk SimulationMap risks to activitiesView results for the entire project or selected WBSShow probability of success and contingency neededSee the impact of risk on project, activity dates and cost
29Solution Benefits Maintenance Capital Projects Operation Enhance routine maintenance and refinery turnaroundsImprove field service operations with greater asset visibilityCapture “As-Maintained” plant configuration changesImprove communication & collaboration by breaking down information silosImprove multi-team collaboration for expedited capital project expansion and constructionPrevent and protect against claimsImprove field and back office access to and collaboration around critical documents and design filesEnable fully integrated document review, collaboration, control and audit capability29
301 2 3 4 5 6 7 8 9 ALM + EPPM + Document Visualization Enables You To… Replace Standalone Maintenance Mgmt Systems2Manage the Full Asset Lifecycle3Drive Maintenance Best Practices4Drive transparency into project decision makers and business decisions5Balance and manage internal and external project resources6Improve means to control project/program costs and delivery time7Expedite project delivery with improved collaboration on visual data8Improve interoperability and break down information silos9Maximize plant reliability by assessing and addressing risks early