1. Supplier KPI Project Meeting
Houston PIDX Fall Conference - Sept 14th 2012
Chair Daryl Fullerton
Vice Chair: Mike Washington
© PIDX, Inc. 2012

2. Agenda Sept 14th Meeting Project status KPI portfolio
Objectives
Status project plan
Roadmap – Short / Long term
KPI portfolio
KPI Data Dictionary Template
KPI Supplier performance areas/categories –Discussions
Statoil Overview –Performance Areas
Performance area - Group work
Performance Areas Agreement
Participant overview – role, competance and commitments – discussions
Onwards London - Next meeting
Actions bullets – Individual To do’s
Deadlines
Rough- cut agenda discussions for London workshop
© PIDX, Inc. 2011

3. Supplier KPI Project 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 Commenced: Participants : c70
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.
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

4. Goals and Objectives 2012 -2015 Short Term Goals (2012 Q3, Q4)
Medium Term Goals (2013 )
Long Term Goals ( )
Educate / Recruit
Continue to meet, educate and recruit additional interested parties to Supplier KPI Workgroup.
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
Meetings
1 x London (Oct 2012)
Outputs:
Mapped Indicators to Performance Areas
Build Develop Grow
Grow Participant Numbers
Performance Area Team Meetings.
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)
Outputs:
Release of Latest Version of KPI Data Dictionary after each Quarterly Meeting
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
© PIDX, Inc. 2012 4

5. Workgroup Meeting Participation / Expressions of Interest
Workgroup Meeting Participation / Expressions of Interest
Operators
Suppliers
Software / Consultancy 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
(*) Expressions of Interest to become involved.
Aker Solutions
Amec
Baker Hughes
Cameron
GE Oil & Gas
Halliburton
KCI bv *
NCH Corporation
Quality Distribution Systems
Schlumberger
Siemens
Weatherford
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
© PIDX, Inc. 2012 5

6. Why Become Involved? 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

7. Performance Areas Framework
SUPPLIER
HSE
QUALITY
DELIVERY
COST
BEHAVIOUR 7
10/04/ Classification: Internal

8. Performance Areas Framework (Detailed)
Budget
Risks
The common performance area and are divided into sub groups.
The same performance areas are valid for all categories.
Within each Performance Area there are numerous performance areas within three different sub groups:
Performance Area
Sub performance area L1
Sub performance area L2
Performance indicators
General performance indicators
Category specific performance indicators
Contract specific performance indicators
SUPPLIER
HSE
TRIF
SIF
Environmental Incidents
Risk Management
DELIVERY
Material delivery
Time
Quantity
Flexibility
Service delivery
See OTIF materials
QUALITY
Quality deviation
COST
Total cost
Compliance with compensation format
Cost reduction
Market benchmarking
BEHAVIOUR
To be developed
Performance indicators applicable for most contracts and categories.
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/Company representative 8
10/04/ Classification: Internal 8

9. Total recordable injuries frequency (TRIF) Lost time incidents (LTI)
HSE
Total recordable injuries frequency (TRIF)
Lost time incidents (LTI)
Restricted work cases (RWC)
Medical treatment cases (MTC)
First Aid cases (FAC)
Work related sickness
Serious incidents frequency (SIF)
Dropped objects (actually)
Near Miss (Nr)
No. Near miss / Actual incidents
No. Authority Notification
Security incidents
Environmental Incidents
No. Serious spills
No Spills
Risk Management
HSE program
Activity list
Average day action over due
Risk Assessment
Sub supplier monitoring 9
10/04/ Classification: Internal

10. Delivery Time Material delivery Quantity DELIVERY Flexibility
Service delivery
See OTIF materials 10
10/04/ Classification: Internal

11. Quality Quality of Material QUALITY Quality of Service
Procedure violation
Breach of contract
System failure
Technical deviations
Insufficient documentation
Labelling and packaging deviation
Quality of Service
Drilling performance – m/day
Rig capacity (rig time available)
Manpower capacity (organisational development compared to plan)
Examples of performance indicators: 11
10/04/ Classification: Internal

12. Cost
Examples of performance indicators:
COST
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 12
10/04/ Classification: Internal 12

13. Behaviour Corporate social responsibility (CSR) and ethics Behaviour
Compliance with Supplier Declaration
Follow-up of sub-suppliers’ compliance with Supplier Declaration
ISO 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
Code of conduct compliance (Online portals with self assessment questionnaire compiled into a report for each company. Example: Sedex, BSCI, Factlines)
Collaboration
Supplier meetings (Y/N, #meetings)
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
10/04/ Classification: Internal

14. Project Contacts
Project Chair: Daryl Fullerton
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
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 14