ConocoPhillips Scandinavia AS How ConocoPhillips improves its production processes with the SAS Knowledge Infrastructure Magne Bakkeli, SAS Institute - 18.05.06 Copyright © 2005, SAS Institute Inc. All rights reserved.
5 Topics 1
ConocoPhillips and the Good to Great (G2G) Programme
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The Business Needs: Maximized and Regular Production
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The Knowledge Infrastructure for More Efficient Field Operations
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Smart Applications = From Raw Data to Smart Decisions
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ConocoPhillips’ Benefits with SAS
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ConocoPhillips and the Good to Great (G2G) Programme
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Conocophillips is a Major Player in the North Sea Employs 2230 employees in Norway and the UK
600-1200 persons offshore at any given time
18 platforms in operations, 12 closed
Production per day: • Oil: Ca. 390 000 bbls • Gas: Ca. 400 mill. Scf
EKOFISK
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ELDFISK
TOR
EMBLA
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From Good to Great – The Greater Ekofisk Process Improvement Initiative
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The G2G Initiative & Expectations Include Drastic Improvements on the Bottom Line Each individual has clear goals and responsibilities
Each individual drives their own improvements
OOC & ODC are central to onshore/offshore work
Activity driven by integrated planning and value creation
Production efficiency almost 1% higher
OPEX ca 200mmNOK lower
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Timely decisionmaking based on better information
Focus on overall business goals rather than local priorities
Higher return on investment
Clear performance measures and follow up at all levels
Clear plans for further development of the organisation
A performance management culture 6
The Business Needs: Maximized and Regular Production
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The Goal: Maximize and Regulate Hydrocarbon Production through Better Decision Support
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The Capabilities: From Fail & Fix to Predict & Prevent Uptime
Problems Problems and and potential potential upsets upsets are are identified identified upfront. upfront. Warnings Warnings are are acted acted upon and downtime upon and downtime avoided. avoided.
The The Fixers Fixers are are Heroes. Heroes. Defects Defects are are not not eliminated eliminated effectively. effectively. Don’t Don’t have have time time to to improve improve Maturity
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The Needs: Business Intelligence Throughout the Organisation Planning: User driven reporting and analysis, Planning data availability, Forecasting capabilities
Onshore Operating Centre: Early warnings and alerts, Integrated plans
Finance: Integrated planning, Forecasting capabilities, Compliance/audit trail
?
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Platform Managers: Comprehensive daily morning report, Detailed production, constraints and HSE reports
Production: Early warnings and alerts, Detailed production reports, Production optimization,
Logistics: Logistics optimization, Forecasting, Integrated plans
Modifications, drilling & GGRE: User driven reporting and analysis, Planning data availability
Executives: Scorecards, trends, High level reports for all disciplines
IT Operations: User management, fast development of new reports, cost of operations
Maintenance: Maintenance optimization, Integrated plans 10
The Catalyst: Onshore Operating Centre Bridge Disciplines; Insight Through Collaboration Instead of Travel
Daily Production Monitoring Planning & Scheduling Logistics Drilling & Well Service Maintenance
“Time to Intelligence” is business critical for the daily offshore operations Copyright © 2006, SAS Institute Inc. All rights reserved.
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Business Improvement Initiative and the Onshore Operating Centre
Requires One Coherent Infrastructure to Support Decision Making Build OOC:: bring bring people people and and data data together, together, collaborate collaborate
Improve Business Processes:: do do things things differently differently and and smarter smarter
Knowledge Infrastructure Smart Applications
From Raw Data to True Collaboration and Fact-based Decision Making Copyright © 2006, SAS Institute Inc. All rights reserved.
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The Knowledge Infrastructure for More Efficient Field Operations
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80-90% of the Data Volume is “Non-SAP”
“We have so much data - what we need is information” Lars Christian Dahl, ConocoPhillips, in conjunction with work The Operation Centre Copyright in © 2006, SAS Onshore Institute Inc. All rights reserved.
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The Knowledge Infrastructure Supports All Decision Making at CoP “The Knowledge infrastructure will provide right-time information that can be trusted at all times, by utilizing common business definitions and rules to make all data and information seem to be from one data source.” Pål Navestad, Project Manager, ConocoPhillips
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Knowledge Infrastructure Enables General Reporting and Custom Business Applications Data sources
Knowledge Infrastructure
Smart Applications
Small tables
Tech. metadata: data and user mngt
SAP & BW
Receiving and quality assurance of data
PI
NPAS
Reporting and interfaces for other jobs
Integrated planning
Incidents & Accidents Predictive Prevention Production optimization Daily Op Reporting
Business metadata: Adding knowledge, business rules ++
Maint. optimization
Common functions: Security, Comments, Decision Scenarios, Dimensions, Self-Service Analytics
Performance Mngmt
Other Alarms & alerts
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Action logs
Comments
Data mart
Cube
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From Raw Data to Information Information
Data Aggregation Integration Quality
Raw Data Well/Network
Historians
Real-Time
SAP
MS
Other
NPAS
PI
Honeywell
Maintenance
Excel
DIMS
REO
IP21
Siemens
Logistics
Project
Primavera
Hysys
Honeywell
ABB
BW (Financial)
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OREDA
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From Information to Knowledge Knowledge
Information
Raw Data Well/Network
Historians
Real-Time
SAP
MS
Other
NPAS
PI
Honeywell
Maintenance
Excel
DIMS
REO
IP21
Siemens
Logistics
Project
Primavera
Hysys
Honeywell
ABB
BW (Financial)
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OREDA
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Real-time Data Integration & Aggregation Currently reading data from more than 30 sources; Oracle, SAP, PI, NPAS, Excel, SQLServer etc.
Knowledge Infrastructure is about reading data from various data sources and connect them, but not necessarily store the resulting data.
The various data sources are integrated together trough mapping tables that connects the different database keys together.
Data Integration Studio is used in the process of gather data and to document how this is done.
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The Knowledge Infrastructure to Support all Decision Making Common information base for everyone,
providing the ability to utilize data that used to be cumbersome to get access to. • History and data quality procedures • Data access and security • Well documented processes and reduced person dependency.
Established a common reporting framework
where super users easily can share reports and information with others. • Data drill-down • Advanced statistical analysis • Self-service reporting
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Metadata Enables Transparency and Source Independence
The Infrastructure consists of a common set of technical metadata throughout the process from data integration to end-user utilisation, enabling full traceability
The data is presented transparently to the user through Information Maps, which hides complexity for the end user
Reports is built and made available in Web Report Studio. In addition, the portal and scorecards are used as top-level navigation to key reports.
The infrastructure builds on already established Active Directory security procedures.
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One Storage for Business Rules & Definitions Business definitions • Text to explain a business term, i.e what gross and net production signify (SPM)
Business rules • The method to calculate from gross to net production • Often a combination of text, formulas and numeric values (SPM, ETL)
Data quality rules • Valid values, treatment of missing (ETL)
Alerting rules • Definitions of alerts and thresholds for an indicator (SPM, ETL, + other sources) Copyright © 2006, SAS Institute Inc. All rights reserved.
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1st Phase Smart Applications to Solve Specific Challenges Chain Logistic Value Cost Planning Scheduling & Mgmt. Control Event Prediction Operational & Commercial Risk Mgmt.
Subsurface Scientific Data Quality Geologic Layer Segmentation
Commercial Intelligence
Seismic Analysis & Uncertainties Reduction Predictive Production Profiling
Subsurface Integrated Resources Planning & Scheduling Intelligence Knowledge -Integrating planning intelligence and information Demand Process Oil & Gas Forecasting Mgmt. departments, processes from all domain areas, Upstream and systems Intelligence Investment Solution -Execution controlProcess and adaptation Strategic Performance Profiling & Simulation Management Intelligence Investment Operational Control - Structured performance reporting and metrics & Financial & Asset Operational - PrioritisingFinancial actions where needed Planning, Intelligence Intelligence Mgmt. Scheduling & Investment Control Scorecarding &KPIs
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Activity Based Mgmt.
Corporate Compliance
Asset Portfolio & Risk Management
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& Control for Operations
Maintenance Optimization Incidents & Accidents Predictive Prevention
Prediction and Prevention of Negative Events -Finding patterns to avoid potential problems -Creating alerts and problem reports to solve problems
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1. Strategic Performance Management: KPIs & MCRS
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MCRS: Complete Performance Management Process Accurate Top-Down Approach: fact-based forecasts and predictions
Consistent Plans and consistent targets (KPIs)
Consistent right-time rescheduling and action distribution
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Alarms Alerts
Consistent, accurate and righttime control (KPI metrics and measures)
Comprehensive right-time Reporting – ability to detail and drill-down
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KPI & MCRS: Defines and Communicates Strategies and Plans Scorecards help create complex and consistent strategies throughout hierarchies, disciplines and geographies
Visualisations helps communicate strategies and plans
The diagrams also shows the relationships between indicators
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KPI & MCRS: Strategic and Operational KPIs with Actuals and Targets Supports corporate, strategic KPIs
Supports highly operational indicators at departemental levels
Used both onshore and offshore
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KPI & MCRS: Performance Review Meetings Standardized to Ensure Structure and Consistency Portal pages to support MCRS meetings at all levels in the organisation
Includes Terms of Reference, relevant KPIs and key reports.
The end-user kiosk for information
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KPI & MCRS: Performance Review Meetings Actions for Non-performing KPIs are Logged
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2. Prediction and Prevention of Negative Events
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Alarms and Alerts: Alarm Workflow
Alarm generator
Alarm or alert Portal ” new problem”
Decision alternative(s) Action log
Comment
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Alarms and Alerts: Predictive Agent System to Prevent Unexpected Shutdowns
A rule set
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A rule graph
Diagnostics - early warning
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1st Step: Making Production Data Easily Accessible
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1st Step: Making Production Data Easily Accessible
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1st Step: Making Production Data Easily Accessible
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Alarms and Alerts: Improves and Revitalises Alarming Prediction • Simple thresholds • Bottleneck detection • Pattern recognition • Data mining
Alarms by using: • Alarms based on role • Sent by portal, SMS or email
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3. Integrated Planning & Scheduling
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Planning & Scheduling: Integrated Planning Defined
“Integrated planning refers to the merging of a wide variety of planning systems into a single system for the purpose of identifying dependences between the systems and finding ways to optimise the planning, which can be affected by many different parameters”. Copyright © 2006, SAS Institute Inc. All rights reserved.
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Planning & Scheduling: Integrated Operational Planning and Execution Aggregation of planning intelligence from different planning systems • SAP Maintenance, SAP Logistics, MS Projects, Primavera, DIMS, MS Excel, other.
One single, integrated operational plan • for all disciplines and geographies, with different timehorizons from long to short term
An integrated performance management structure • supported by integrated planning and cost management processes
Ability to predict and forecast top-down • in non-detailed segments of the plan and compute many scenarios and rank them for optimal performance Copyright © 2006, SAS Institute Inc. All rights reserved.
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Planning & Scheduling: Linked Reports Improve the Planning Process
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Planning & Scheduling: Meetings Standardized to Ensure Structure & Consistency
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Planning & Scheduling: More Efficient Planning and Control Integrated Planning • Combine mutual characteristics and dependancies between jobs • Equipment without maintenance plans • Equipment that is repeatable in several maintenance jobs
Internal and External Reporting • Norwegian Government • Planned vs. Actual • Reports from tests
Correlation and dependancies • Which jobs are related and dependent on each other? • Most efficient re-routing with emerging problems • Full view gives better utilization of SAP
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Additional Smart Applications Chain Logistic Value Cost Planning Scheduling & Mgmt. Control Event Prediction Operational & Commercial Risk Mgmt.
Commercial Intelligence
Demand Forecasting Investment Profiling & Simulation Operational Financial Mgmt. & Investment Control Scorecarding &KPIs
Investment & Financial Intelligence
Activity Based Mgmt.
Subsurface Scientific Data Quality Geologic Layer Segmentation
Seismic Analysis & Uncertainties Reduction Predictive Production Mapping and Optimization Profiling Subsurface
of the Physical
Process Intelligence Knowledge Process process Optimising the production Oil & Gas Mgmt.
Upstream Intelligence Solution
Operational & Asset Intelligence
Process Intelligence Control
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Planning, Scheduling & Control for Operations
Maintenance Optimization Incidents & Accidents Predictive Prevention
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Asset Portfolio Corporate & Risk Compliance ManagementOptimization Maintenance
- True Condition-Based maintenance - Safety- and Cost-Based Corrective Maintenance
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ConocoPhillips’ Benefits with SAS
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Strategic, Tactical and Operational Usages Scorecards
Strategize
Consolidate
Reports & Analytics Analyze
Design
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Plan
Report Out
Choose
Decision Alternatives
Prediction & Alerting
Drive
Knowledge Infrastructure
Distribute
Shared Data & Metadata
Report In
Detect Escalate
Monitor
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Efficient Decision Support Enables Continous Improvements Continous improvements based on quality information
Declining slope without systems support
Timely decision-making based on better information
Clear performance measures and follow up at all levels
Activity driven by integrated planning and value creation
Production efficiency almost 1% higher
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The Daily Production Efficiency is More Stable and on a Higher Level
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The Business Value: Payback in Under 1 Year
Proven business value
Historical success since 2001 in using SAS for indicators and reporting before the Data to Decisions project Example: Removal of 20% of costs and man-hours in preventive maintenance
High estimated future business value
G2G is set to save the Greater Ekofisk operations NOK 1.4 Bn annualised dependent upon efficient systems to deliver the benefits. ROI calculations for this project shows payback in under 1 year.
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