Supplier KPI Project MeetingHouston PIDX Fall Conference - Sept 14th 2012

Chair Daryl FullertonVice Chair: Mike Washington

© PIDX, Inc. 2012

Agenda Sept 14th Meeting

© PIDX, Inc. 2011

1. Project status– Objectives– Status project plan– Roadmap – Short / Long term

2. KPI portfolio– KPI Data Dictionary Template– KPI Supplier performance areas/categories –Discussions

3. Statoil Overview –Performance Areas

4. Performance area - Group work– Performance Areas Agreement

5. Participant overview – role, competance and commitments – discussions

6. Onwards London - Next meeting– Actions bullets – Individual To do’s– Deadlines– Rough- cut agenda discussions for London workshop

© PIDX, Inc. 2012

Supplier KPI Project Overview

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: 2011 Participants : c70 Contact: Daryl Fullerton dfullerton@pidx.org Mike Washington michael.washington@conocophillips.com

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

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.

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Goals and Objectives 2012 -2015

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

Meetings1 x London (Oct 2012)

Outputs:Mapped Indicators to Performance AreasDraft Version 2 of Supplier KPI

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.

MeetingsRegular 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

Short Term Goals (2012 Q3, Q4) Medium Term Goals (2013 ) Long Term Goals (2014 - 2015)

© PIDX, Inc. 2012

2011 - 2012Workgroup Meeting Participation / Expressions of Interest

BPCairn Energy*ChevronConocoPhillipsEL PasoGreen EnergyMurphy Oil *Noble EnergyNexenOrigin Energy *Petroleum Development OmanPenn West Exploration *RWEShellStatoilTullow Oil *Wintershall

(*) Expressions of Interest to become involved.

Aker SolutionsAmecBaker HughesCameronGE Oil & GasHalliburton KCI bv *NCH CorporationQuality Distribution SystemsSchlumbergerSiemensWeatherford

Cortex Business Solutions 8over8Pervasive SoftwareFPAL / AchililesPICSSoftware AGStoneBondThruBit Logging Solutions

Total Participants / Interested Parties = c70Last Updated Date: Sept 2012

Operators Suppliers Software / Consultancy

Why Become Involved?

© PIDX, Inc. 2011

1. Data Dictionary Access – Exposure to More KPIs

2. Your KPI’s are Part of a Standardized Industry wide Accepted KPI Portfolio

3. Access to Quarterly Release of Supplier KPI Data Dictionary

4. Network with Industry Peers on best practices and Lessons Learned on SRM

5. Get Guidance on Establishing Supplier KPI’s

•7

Performance AreasPerformance Areas

Performance Areas Framework

•18/04/23 Classification: Internal

•

Budget RisksPerformance Areas Framework (Detailed)

•8 •18/04/23 Classification: Internal

•

Performance Area

Sub performance

area L1

Sub performance

area L2

• The common performance area and are divided into sub groups. • The same performance areas are valid for all categories.

General performance indicators

Category specific performance

indicators

Contract specific performance

indicators

• 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

Performance indicators

• Within each Performance Area there are numerous performance areas within three different sub groups:

•9 •18/04/23 Classification: Internal

•

Delivery

•10 •18/04/23 Classification: Internal

•

Quality

•11 •18/04/23 Classification: Internal

•

Examples of performance indicators:

•12 •18/04/23 Classification: Internal

•

Cost Examples of performance indicators:

Behaviour

•13 •18/04/23 Classification: Internal

•

© PIDX, Inc. 2012

Project ContactsProject Chair: Daryl Fullerton Email : dfullerton@pidx.orgDaryl 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 Email : Michael.Washington@conocophillips.comMichael, 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 ConferencesHe 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