Presentation on theme: "Kathy Miller and Whitney Macormic, CITGO Petroleum Corporation"— Presentation transcript:
1 Kathy Miller and Whitney Macormic, CITGO Petroleum Corporation CITGO Refined Products Supply Chain Solution Combining R/3, IS-Oil, TSW and BW for an end-to-end solutionIntroductionKathy Miller and Whitney Macormic, CITGO Petroleum Corporation
2 CITGO’s SAP “Evolution” Operating Supply Chain Solution AgendaIntroductionCITGO’s SAP “Evolution”Operating Supply Chain SolutionThe Solution with Supporting DetailsQuestions
3 3 owned Light Product Refineries 2 owned Asphalt Refineries About CITGO PetroleumWholly owned by PDVSADownstream Only$17 Billion in Revenues3 owned Light Product Refineries2 owned Asphalt Refineries3 Joint Venture Refineries1,025 MB per day Refining CapacityAll Business Units on SAPWe wanted to share some hard facts about Citgo, so you can understand how we might compare to your organization.Hopefully, you will get a better idea of some of our tremendous successes and challenges to be fully intergrated with SAP.
4 About CITGO’s Refined Product Group ~ 20,000,000 BBL System50+ Equity Terminals350 Exchange Locations100+ Terminalling Locations15+ Pipelines used1800+ Marine moves per yearOur Refined Product group alone has many challenges on a daily basis.
5 About CITGO’s SAP System 4200 named users~ 500 concurrentSingle Instance, 2.5 TB Database4.6C Oil and GasAll R/3 Modules except QMAll Business UnitsInitial Implementation 1/98 – 11/99Implmentations:Asphalt and FI – January 1998Light Oils – June 1999Lubes – November 1999
6 “SAP” Core R/3 + IS-Oil (Jan ’98) Traders Schedulers Workbench “SAP” Evolution: ‘98 – ‘02“SAP”Core R/3+IS-Oil(Jan ’98)TradersSchedulersWorkbench(Jun ’99)CustomDevelopment(Jan ’98-’02)BusinessWarehouse(Aug ’01)Key here is to clarify that we use the term SAP generically, but our solution is made up of several different products as well as a lot of custom development (mainly for automation.)(Each square has a hot link to the details of each.)
7 Business Unit Reporting (’99) Profitability Analysis (’99) Core R/3Financials (’98)Asphalt Logistics (’98)Business Unit Reporting (’99)Profitability Analysis (’99)Full Exchange Processing (’99)Terminalling Agreement Processing (’99)Processing Agreements for Petrochemicals (’99)
9 Interfaces to 3rd Party Software Custom DevelopmentInterfaces to 3rd Party SoftwareTerminal AutomationPetroexTransportation Companies (Pipelines, Truck Freight, Marine Companies, etc.)Demand PlanningEnhancing SAP programsSeveral TSW modifications…much better in 4.6CFunctionality extensions in several areasCustom reportingTransportation costsExchangesBusiness Unit Reporting
10 Total System Physical Inventory Projection BWTotal System Physical Inventory ProjectionGasoline, Distillates, TurbineRegion-level projection“Priced” Inventory Projection
12 Rundown with scheduled delivery Scheduler’s “playground” The TSW WorldPipeline NominationRundown with scheduled deliveryScheduler’s “playground”Immediate updates to rundownInventory graph from rundownMarine NominationEvent LogScheduling and RVPPlanning tool for destination schedulers.Allows “What If” scenarios w/o disturbing current noms or PO’s and SO’s.Allows these scenarios w/o regeneration of rd.Can graph directly from rd to compare to target inventories.RVP BOM allows us to view all data on one product code.Schedulers, marine folks are required to enter much data.
13 TSW NominationSchedule a barrell delivery into Meridian on June 18th - stock transfer (plant-to-plant).
14 TSW Nomination on Rundown Quick overview of layout of rundown – daily, SAP book and physical inventory, receipts vs. issues, right most column has truck activity.Rundown shows the receipt and the effect on the inventory projection.Touch on the header numbers on rundown (book, physical, Alternate, Inventory limits).ATAC feedsRundown now an ALV control in Service Pack 1. Look and feel of spreadsheet and real-time – should be very nice.
15 Scheduler’s “Playground” Custom built transaction to allow very flexible, very easy replenishment planning. Enter in how you want to change the current scheduling and the rundown is automatically updated to reflect the new inventory position.Nothing is actually changed in SAP (nomination, order, etc.) except for the rundown.Nightly job ‘cleans up’ the playground so the users don’t have to worry about it.In this example, the scheduler wants to determine what will happen if they can’t get the entire barrells as originally thought, now they may just receive in So, create a proposal for 5000 to take this out of their inventory projection on the rundown.
16 Scheduler’s “Playground” Shows the ‘proposed’ schedule change as an issue on the rundown.Notice that the nomination information is still the same. That is because nothing in TSW or SAP R/3 has actually changed yet, except the rundown.The SAP Book inventory projection reflects the proposal.
17 Inventory Graph From Rundown Inventory graph called from rundown or stand alone.Graphs rundown numbers.Difference in BOOK and physical s/b bottoms – check with Kathy?
18 Marine NominationMarine nominations not much different except for UOM and material at item level. Main difference is the event log – next screen.
19 Event Log Event type link to G/L accounts Configure however you’d like Lots of reporting off of event logEvent log becoming more important as more of our Asphalt and Crude business uses TSW.Currently working with several vendors on getting files from them with ‘event’/dock information so that we can automatically update the event log.Drill down capability into SAP R/3 documents (i.e. freight purchase orders).Free form text can be entered too.
20 Scheduling and RVPHandling of RVP from scheduling/actualization perspective works very well.Master data setup makes most if not all of the process happen automatically.Date driven – so if schedule slips and/or for year to year RVP changeover.
21 And that’s TSW at CITGO…(the quick version) We can honestly say that at CITGO:histufforks
22 Business Warehouse Example One of our biggest frustration at Citgo has been that we are required to enter so much data into SAP, but we can’t get the data out as we need it, and as it makes sense for Operations.However, BW (Business Warehouse) has become that solution in extracting data from this monster data base.We have successfully been able to pull out of SAP all of these data points that give Citgo our total system inventory current and projected.Used for our Risk Mgmt purposes, inventory control, year-end inventory planning, etc.
23 AS OF MORNING OF LAST DAY OF MONTH Gasoline – Finished & Unfinished Improvement in ProcessInventory Projection ImprovementAS OF MORNING OF LAST DAY OF MONTHGasoline – Finished & UnfinishedJuly MB January MBAugust MB February MBSeptember 1024 MB March MBOctober MB April MBNovember MBDecember MBThis number represents the barrels of last days inventory versus financial close.Key: Keep data clean, up-to-date, valid, etc. so that the projection is more useable.Along with being able to get our data out.We now have a way to keep our data clean.BW allows Citgo to find go deeper into the data quickly to keep our data cleaner.This chart represents how we continue to improve on a monthly basis in keeping our data cleaner. This data is the barrel volume difference our projection was to our financial close.We started using BW for this activity along with Mgmt requirements in October
24 AS OF MORNING OF LAST DAY OF MONTH Improvement in ProcessInventory Projection ImprovementAS OF MORNING OF LAST DAY OF MONTHDistillateOctober 107 MBNovember MBDecember 802 MBJanuary 241 MBFebruary 227 MBMarch 156 MBApril MB
25 AS OF MORNING OF LAST DAY OF MONTH Improvement in ProcessInventory Projection ImprovementAS OF MORNING OF LAST DAY OF MONTHTurbineOctober 79 MBNovember 117 MBDecember 274 MBJanuary 145 MBFebruary 160 MBMarch MBApril 515 MB
26 Supply and IT analysts always have the latest technology…
27 SAP Supply Chain Solution: ’98–‘02 RefineriesRefineriesCore R/3TSWCustomDevelopmentDemand PlanningDemand Planning“CITGO” TerminalsCITGO” TerminalsBWSuppliers/PartnersSuppliers/PartnersHot links to each area for details.Information BrokersInformation Brokers
28 Production Yields (Actuals) Refinery InterfacesProduction ForecastsDaily data feed30-60 days outReliability of information has been an issueProduction Yields (Actuals)Weekends and holidays cause some “spiking” problemsWe capture actuals and forecasts from all of these data points.
29 Demand Planning Interfaces SAP to Demand PlanningActual Liftings for historical trendingDemand Planning to SAPTerminal/Material for TSW RundownsCustomer/Material for Exchange reportingForecasts then fed to BW for Inventory Projection reporting
30 CITGO Terminal Interfaces SAP to TerminalsCustomer Master dataAllocationsTerminals to SAPRack LiftingsPhysical Inventory LevelsBulk Issues and ReceiptsGains/Losses
31 Pipeline Companies Other Suppliers Supplier Interfaces Tickets Schedule Updates“Schedule dates” for pricingOther SuppliersInvoices from Product SuppliersInvoices from Trucking CompaniesLogistical data to/from Marine Companies
33 For those of you heading to the beach this summer…
34 Commitment from IT & Business Change Management Key Success FactorsCommitment from IT & BusinessChange ManagementCommunicationPower-user DevelopmentTrainingDecision MakingTest, Test, TestTimely and Accurate Data“It ain’t over ‘till it’s over”Commitment from IT & BusinessAvailability of key IT & BU personnel, Realize the running the business must come first, BU driving the design work, IT driving the development, This is going to be difficult!Change ManagementCommunicationCommunicate Early & OftenReduces chance of miscommunicationReduces stress associate with uncertaintyWhen people feel involved, they take ownershipPower-user DevelopmentBuilds system expertise in BU for future enhancement workSpeeds transition period after go-liveReduces dependency on Tulsa ITTrainingTraining developmentOn-line help developmentTraining deliveryDecision Making?Business must own, Clear decision-making process, Advantage over Products because of size, Impacts to system, processes, and peopleTest, Test, TestMust have user involvement, Close to parallel as possible, Reduces the risk of business interruption, Reduces post go-live heartburnDataMore data required, Automated feeds provides better results, Establishes the foundation for optimizationIt ain’t over till it’s overIncremental approach, Project doesn’t end at go-live!, this will be HARD, not plug and play, There will be startup issues, Post go-live optimization
35 “We changed SAP from being a barrier to a tool”. Famous Quote at CITGO…“We changed SAP from being a barrier to a tool”.Commitment from IT & BusinessAvailability of key IT & BU personnel, Realize the running the business must come first, BU driving the design work, IT driving the development, This is going to be difficult!Change ManagementCommunicationCommunicate Early & OftenReduces chance of miscommunicationReduces stress associate with uncertaintyWhen people feel involved, they take ownershipPower-user DevelopmentBuilds system expertise in BU for future enhancement workSpeeds transition period after go-liveReduces dependency on Tulsa ITTrainingTraining developmentOn-line help developmentTraining deliveryDecision Making?Business must own, Clear decision-making process, Advantage over Products because of size, Impacts to system, processes, and peopleTest, Test, TestMust have user involvement, Close to parallel as possible, Reduces the risk of business interruption, Reduces post go-live heartburnDataMore data required, Automated feeds provides better results, Establishes the foundation for optimizationIt ain’t over till it’s overIncremental approach, Project doesn’t end at go-live!, this will be HARD, not plug and play, There will be startup issues, Post go-live optimization