Running Safer and More Efficiently at Baker Hughes – An...

SAP – EHS Management Conference

Running Safer and More Efficiently at Baker Hughes – An Integrated Software Solution

© 2011 BAKER HUGHES INCORPORATED. ALL RIGHTS RESERVED. TERMS AND CONDITIONS OF USE: BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER WITH ALL INFORMATION INCLUDED THEREIN IS THE CONFIDENTIAL AND PROPRIETARY PROPERTY OF BAKER HUGHES INCORPORATED AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INFORMATION OF BAKER HUGHES (COLLECTIVELY "INFORMATION"). BAKER HUGHES RETAINS ALL RIGHTS UNDER COPYRIGHT LAWS AND TRADE SECRET LAWS OF THE UNITED STATES OF AMERICA AND OTHER COUNTRIES. THE RECIPIENT FURTHER AGREES THAT THE DOCUMENT MAY NOT BE DISTRIBUTED, TRANSMITTED, COPIED OR REPRODUCED IN WHOLE OR IN PART BY ANY MEANS, ELECTRONIC, MECHANICAL, OR OTHERWISE, WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF BAKER HUGHES, AND MAY NOT BE USED DIRECTLY OR INDIRECTLY IN ANY WAY DETRIMENTAL TO BAKER HUGHES’ INTEREST.

Oct 03rd and 04th , 2011

Monty Lynes

Baker Hughes Inc.

HSE Manager of Performance Improvement & Information Management Systems

Agenda

• Company Overview

• Corporate Social Responsibility and Health, Safety, and Environmental (HSE)

• Implementation Approach

• Why Was SAP EHS Selected?

• Results and Achievements• Results and Achievements

• Future Roadmap

© 2011 Baker Hughes Incorporated. All Rights Reserved. 2

RESERVOIR DEVELOPMENT SERVICESGaffney, Cline & Associates, reservoir engineering and simulation, geological modeling and analysis, software

DRILLING and EVALUATIONDrill bits, directional drilling, formation evaluation, coring, surface logging,

wireline, drilling fluids

About Baker Hughes*

• Revenues: $13 billion

• R&D: $500 million

• 51,000+ employees

• Facilities in 72 countries

Who is Baker Hughes?Global Oil & Gas Services Leader

PRESSURE PUMPINGCementing, hydraulic fracturing, acidizing, stimulation, coiled tubing


wireline, drilling fluids

INDUSTRIAL SERVICESRefining, water management, petrochemical,

process and pipeline services, polymers and

well service products

COMPLETION and PRODUCTIONCompletion, intervention,intelligent production systems, artificial lift, completion fluids, oilfield chemicals

*FY 2010

• Operations in 90+ countries

Baker Hughes: Customer Focused Organization

Gulf of Mexico

US Land

CanadaEurope

Africa

Russia Caspian

Middle East Asia Pacific

Business Segments Global Support

Reservoir Development Services

Drilling and Evaluation

Completions and Production

Pressure Pumping

Industrial Services

US Land, GoM, Canada, Latin AmericaEurope, Africa, Russia Caspian, Middle East, Asia Pacific

Integrated Operations

Regions and Geomarkets

Latin America

Africa

Portfolio Management

Global Marketing

Supply Chain

Reliability and Quality


Corporate Social Responsibility (CSR)Striving to Operate in a Sustainable Manner

CSR and operating sustainably central to core values

Ethical and responsible business conduct

Invest to maintain strong CSR position:

• Legal compliance

• Safe and secure work environment

• Protecting the environment

5

• Supporting communities in which we work

• Sustainable technologies and products

Sustainable benefits to all stakeholders:

• Motivated employees

• Community growth and development

• Minimize risks

• Reduce costs

• Increase shareholder value

Health, Safety, and Environmental Strategy

Community of Practice and Process

Improvement Teams

develop standards

Centers of Expertisesets & validates frameworks

Guides


HSE&S Guiding PrinciplesRisk Based

Business FocusedCulture Driven

Business Units (with HSE&S Support)implements &

improves programs

Management Systems

defines requirements

Info

rms

Directs

Defin

es

Baker Hughes HSE&S Information System Challenges

Baker Hughes HSE&S utilizes several home grown point source solution applications to facilitate HS&E business processes.

• These applications overlap in function and when combined still leave

gaps in supporting the BHI’s HSE MS System.

This current state of HSE&S applications result in:This current state of HSE&S applications result in:

• Fragmented information,

• Inability to get an overall view of HS&E performance,

• Potential compliance risk,

• Increased support & maintenance costs,

• Misaligned prioritization and overall loss of focus on enterprise HS&E

goals.

• Limited capability in identified areas for targeted programs


Introduce a software solution starting with Incident Management that supports a step-change in the facilitating key HSE&S business processes to improve workplace

health & safety, reduce compliance risk, and overcome the challenges left behind

with a existing failing technology.

• Ability to obtain overall view of HSE performance through integrated Enterprise HSE&S information

Business Objectives


HSE&S information

• Foster an interdependent safety culture by increasing leadership engagement

around HSE activities

• Promote Health, Safety, and Environment through ownership

MethodologyServices

Push/pull learnings

Simplify

Standardize (BHI & Industry)

Adaptable

Project Plan (Road Map)

Leverage enterprise resources

Drive Interdependency

Business Objectives – Focus on Performance

Improvement


Methodology

Solution

Measures

&

Metrics

ServicesAdaptable

Engage Users

Improve Workflows

Integrate current Information Systems

Multiple Security Roles

Self-service

Dashboards

Reporting Strategies

Drive accountability

Identify leading indicators

Meet current & future business needs

Solution Critical Success Factors:

• Offer a comprehensive suite of solutions that support all key BHI HSE

Processes

• Innovative and user-friendly interface

• Robust and On-demand analytics

• Cost effective

• Ability to keep in pace with Business and leverage Master Data

Critical Success Factors and Project Challenges

• Ability to keep in pace with Business and leverage Master Data

Challenges to the Project

• Implement the software to all BHI employees (~35,000*)

• Solution must be user friendly

• Minimize deployment costs


*Pre- BJ Services integration (different set of business challenges exist)

Vendor Selection Process and Results

Systematic Approach

• Market analysis of top HSE&S software vendors

• Initial demos rated by business team

• Short listed vendors demonstrated

capability in a Proof of Concept

(POC)

Why SAP? • Global solution w/ multiple languages

• Cost-effective: licensing and support infrastructure in place

• More robust analysis and reporting

capability through BusinessObjects

© SAP 2007 /

• Team ratings gathered

• End result – SAP was selected

• Broad breadth of capability

• Ability to prove solution meets our

business process requirements

• User friendly interface through SAP’s NetWeaver Solution

• Mobility offering (Blackberry)

Analyzing HSE&S Reporting & InvestigationsElaboration and Improvement Opportunities

© 2010 Baker Hughes Incorporated. All Rights Reserved.

Implementation Approach Overall implementation timeline: 10 months

Pre-implementation

• Vendor selection

Implementation Process

• Overall timeline:

Resources

• Governance: HS&E

Capabilities delivered: incident management including: reporting, Investigation, causal analysis, corrective action planning, analytics

© SAP 2007 /

• Vendor selection (11 mo.)

• Process mapping / improvement (4 mo.)

• Overall timeline: 10 mo.

• Solution development w/ agile process (10 mo.)

• Pilot phase (4 mos.)

• Global deployment (1 mo.)

• Governance: HS&E & IT exec team

• Business sponsor: HS&E VP

• Project Team

• HSE PIIMS Mgr.

• HSE Performance improvement team

• IT Project Mgr & solution team

Partners: E2Manage, Infosys, TechniData (now SAP)

Results and Achievements Promoting safety through ownership

• Strategic platform (branded “Odyssey” within BHI) to consolidate HSE&S

business processes starting with Incident Reporting & Investigation

Management

HSE&S Solutions� Incident Reporting & Tracking

� Investigation Management


InnovationIntuitive user interface to deliver an easy to use application for the enterprise rollout

� Cause Analysis

� Air Emissions Management

� Statistics & Reporting

IT Making A DifferenceIT Making A Difference

Results & Achievements – Key Concepts (IR&IM)

Measures

Incident Specific Details

Multiple Subscriptions

Dash Board (Home Portal)

Improved Leading Indicators

Activity v. Result-Based

Measures

Self Service



Incident

Details

Learnings

Incident Specific Details

Work Activities

Did Happen /Could Happen

Legal/Security checks

� No. Gate Keeper

Multiple BST axis

Incident Owner

Impact to Goals

COF

Active Factors (General & SCORE) RCA Levels

Type of Event

Latent Factors(Root Causes)

Solutions (Type & Scope)

QA

IRB

Improved Workflow & Work

Relationships (inc. SAP HRMS

integration)

Best Practice ids

Lessons Learned

Libraries

Measures & Limits

Facility Hierarchy down to Equipment Operating

Scenario

Permit Hierarchy & Breakdown

Dash Board (Emissions) Self Service


Task Management by Role

Limit Checks with early warning

indicators

Business Objectives – Key Concepts (Emissions)


Emission Calculations & Tracking

Permits & Obligations

Scenario

Robust Calculation Engine

Regulatory checksFacility\Equipment Details

Facility\Equipment Owners

Calculation Library

Emission Calculations & Tracking for all

mediasIntegration to

SAP Inventory

Detailed Calculation Log

Role Based Security

Task Management by Role

Facility Hierarchy down to

Equipment Operating Scenario

Actual, Potential to Emit, and Forecasted Emissions

Results and Achievements Promoting safety through ownership


Best Practices and Lessons Learned

What went well

• Vendor selection / business case / sponsorship

• Project governance

• Cause Mapping

• Solution design

© SAP 2007 /

• Odyssey marketing video

Challenges

• Training and deployment on a limited timeline and budget

• SAP Patch Alignment

Lessons Learned

• Allow for more time and add additional training vehicles

2012

Odyssey Roadmap

2010

Incident

Management

Action Plan & Task

Management*

HSE Metrics

Collection

Odyssey –HSE&S Management Software Solution

2011

Risk Assessment

2012+

Audit & Inspection

ManagementManagement of

ChangeOccupational

Health

MSDS

Management

Chemical

Inventory

Emission Tracking

& Mgmt

Safety Observation

Program

Permits &

Obligations

19

Management*

Reports &

Dashboards*

Permits &

Obligation Mgmt.

Management Change

REACh

Compliance

Contractor and

Vendor Mgmt.

Health

Industrial

Hygiene

Energy Mgmt.

Crisis

Management

Envrionmental

Water, Waste

Mgmt.

Journey Mgmt.

Summary

Long-term strategy

• Developing an information strategy that supports our business model

• Driving continual improvement around workplace health and safety

• Fostering an interdependent safety culture

Pre-work


Pre-work

• Investing a significant amount of time and resources in the vendor selection

process

• Analyzing and improve the process before solution design

Data Information Knowledge Understanding Wisdom


Monty LynesBaker Hughes Incorporated

HSE Manager – Performance Improvement & Information Management Systems

Email: [email protected]

Main: 713.439.8340

CONTACT:

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