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Copyright © 2005, SAS Institute Inc. All rights reserved.
ConocoPhillips Scandinavia ASHow ConocoPhillips improves its production processes with the SAS Knowledge Infrastructure
Magne Bakkeli, SAS Institute - 18.05.06
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ConocoPhillips and the Good to Great (G2G) Programme1
The Business Needs: Maximized and Regular Production2
The Knowledge Infrastructure for More Efficient FieldOperations3
Smart Applications = From Raw Data to Smart Decisions4
5 Topics
ConocoPhillips’ Benefits with SAS5
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ConocoPhillips and the Good to Great (G2G) Programme
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ELDFISKEKOFISK TOR EMBLA
Conocophillips is a Major Playerin 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
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From Good to Great –The Greater Ekofisk Process Improvement Initiative
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The G2G Initiative & ExpectationsInclude Drastic Improvements on the Bottom Line
Productionefficiency almost
1% higher
OPEX ca200mmNOK
lower
Higherreturn
oninvestment
Aperformance management
culture
Each individualhas cleargoals and
responsibilities
Timely decision-making based
on betterinformation
Each individualdrives their ownimprovements
Clearperformancemeasures andfollow up at
all levels
OOC & ODCare central to
onshore/offshorework
Activity drivenby integratedplanning andvalue creation
Focus onoverall business
goals ratherthan localpriorities
Clear plansfor further
developmentof the
organisation
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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 Fixers areHeroes.
Defects are not eliminated effectively.
Don’t have time to improve
The Fixers areHeroes.
Defects are not eliminated effectively.
Don’t have time to improve
Problems and potential upsets areidentified upfront.
Warnings are actedupon and downtimeavoided.
Problems and potential upsets areidentified upfront.
Warnings are actedupon and downtimeavoided.
Uptime
The Capabilities: From Fail & Fix to Predict & Prevent
Maturity
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???
The Needs: Business Intelligence Throughout the Organisation
Finance:Integrated planning,
Forecasting capabilities, Compliance/audit trail
Platform Managers:Comprehensive daily morning
report, Detailed production, constraints and HSE reports
Production:Early warnings and alerts,
Detailed production reports, Production optimization,
Onshore Operating Centre:Early warnings and alerts,
Integrated plans
IT Operations:User management, fast
development of new reports, cost of operations
Executives:Scorecards, trends, High level
reports for all disciplines
Planning:User driven reporting and analysis, Planning data availability, Forecasting
capabilities
Maintenance:Maintenance optimization,
Integrated plans
Logistics:Logistics optimization,
Forecasting, Integrated plans
Modifications, drilling & GGRE:
User driven reporting and analysis, Planning data
availability
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The Catalyst: Onshore Operating CentreBridge 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
“Time to Intelligence” is business critical for the daily offshore operations
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Business Improvement Initiative and the Onshore Operating CentreRequires One Coherent Infrastructure
to Support Decision Making
Knowledge InfrastructureSmart Applications
From Raw Data to True Collaboration and Fact-based Decision Making
From Raw Data to True Collaboration and Fact-based Decision Making
Build OOC: bring people and data together, collaborate
Improve Business Processes: do things differently and smarter
Build OOC: bring people and data together, collaborate
Improve Business Processes: do things differently and smarter
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The Knowledge Infrastructure for More Efficient FieldOperations
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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 in The Onshore Operation Centre
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The Knowledge Infrastructure Supports All Decision Making at CoP
“The Knowledge infrastructure will provide right-timeinformation 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 InfrastructureEnables General Reporting and Custom Business Applications
Small tables
SAP& BW
PI
NPAS
Other
Data sources Knowledge Infrastructure
Tech. metadata: data and user mngt
Business metadata: Adding knowledge, business rules ++
Receiving and quality assurance of data
Reporting and interfaces for other jobs
Common functions: Security, Comments, Decision Scenarios, Dimensions, Self-Service Analytics
Action logs
CommentsAlarms & alerts
Smart Applications
Integrated planning
Performance Mngmt
Incidents & AccidentsPredictive Prevention
Production optimization
Daily Op Reporting
Maint. optimization
Datamart Cube
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DataIntegrationQuality
SAPMaintenanceLogisticsBW (Financial)
MSExcelProject
HistoriansPIIP21Honeywell
Real-TimeHoneywellSiemensABB
Well/NetworkNPASREOHysys
OtherDIMSPrimaveraOREDA
Raw Data
DataAggregation
Information
From Raw Data to Information
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SAPMaintenanceLogisticsBW (Financial)
MSExcelProject
HistoriansPIIP21Honeywell
Real-TimeHoneywellSiemensABB
Well/NetworkNPASREOHysys
OtherDIMSPrimaveraOREDA
Raw Data
Information
Knowledge
From Information to Knowledge
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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 traceabilityThe 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 & DefinitionsBusiness 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)
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Seismic Analysis &
Uncertainties Reduction
Subsurface Data
Quality
Predictive Production
Profiling
InvestmentProfiling & Simulation
Scientific GeologicLayer
Segmentation
CommercialIntelligenceCommercialIntelligence
SubsurfaceIntelligenceSubsurfaceIntelligence
Operational & Asset
Intelligence
Operational & Asset
Intelligence
Investment& FinancialIntelligence
Investment& FinancialIntelligence
Oil & GasUpstream
IntelligenceSolution
Incidents & AccidentsPredictivePrevention
Planning,Scheduling
& Control for Operations
MaintenanceOptimization
ProcessIntelligence
Control
KnowledgeProcessMgmt.
AssetPortfolio& Risk
Management
Operational Financial Mgmt.
& Investment Control
Scorecarding&KPIs
Activity BasedMgmt. Corporate
Compliance
Operational & Commercial Risk
Mgmt.
DemandForecasting
Event Prediction
Logistic Planning
Scheduling & Control
Value Chain Cost
Mgmt.
1st Phase Smart Applications to Solve Specific Challenges
2
Prediction and Prevention of Negative Events-Finding patterns to avoid potential problems-Creating alerts and problem reports to solve problems
3
Integrated Resources Planning & Scheduling-Integrating planning intelligence and information from all domain areas, departments, processes and systems-Execution control and adaptation
1
Strategic Performance Management- Structured performance reporting and metrics - Prioritising actions where needed
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1. Strategic Performance Management: KPIs & MCRS
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MCRS: Complete Performance Management ProcessAccurate Top-Down
Approach: fact-based forecasts and predictions
Consistent Plans and consistent targets (KPIs)
Consistent, accurate and right-time control (KPI metrics and measures)
Comprehensive right-time Reporting – ability to detail and drill-down
Alarms
Alerts
Consistent right-time re-scheduling and action distribution
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KPI & MCRS: Defines and CommunicatesStrategies 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 KPIswith Actuals and Targets
Supports corporate, strategic KPIs
Supports highlyoperationalindicators at departemental levels
Used bothonshore 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 theorganisation
Includes Terms ofReference, 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 or alertDecision
alternative(s)
Action log
Comment
Portal” new problem”
Alarm generator
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A rule set A rule graph Diagnostics - early warning
Alarms and Alerts: Predictive Agent System to PreventUnexpected Shutdowns
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1st Step: Making Production Data EasilyAccessible
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1st Step: Making Production Data EasilyAccessible
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1st Step: Making Production Data EasilyAccessible
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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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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”.
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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 time-
horizons 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
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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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Seismic Analysis &
Uncertainties Reduction
Subsurface Data
Quality
Predictive Production
Profiling
InvestmentProfiling & Simulation
Scientific GeologicLayer
Segmentation
CommercialIntelligenceCommercialIntelligence
SubsurfaceIntelligenceSubsurfaceIntelligence
Operational & Asset
Intelligence
Operational & Asset
Intelligence
Investment& FinancialIntelligence
Investment& FinancialIntelligence
Oil & GasUpstream
IntelligenceSolution
Incidents & AccidentsPredictivePrevention
Planning,Scheduling
& Control for Operations
MaintenanceOptimization
ProcessIntelligence
Control
KnowledgeProcessMgmt.
AssetPortfolio& Risk
Management
Operational Financial Mgmt.
& Investment Control
Scorecarding&KPIs
Activity BasedMgmt. Corporate
Compliance
Operational & Commercial Risk
Mgmt.
DemandForecasting
Event Prediction
Logistic Planning
Scheduling & Control
Value Chain Cost
Mgmt.
5
Mapping and Optimization of the Physical Process- Optimising the production process
4
Maintenance Optimization- True Condition-Based maintenance- Safety- and Cost-Based Corrective Maintenance
5
Mapping and Optimization of the Physical Process- Optimising the production process
Additional Smart Applications
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Reports & Analytics
Prediction& Alerting
ScorecardsStrategic, Tactical and Operational Usages
Analyze
Choose
DecisionAlternatives
Design
Report Out
Report In
Distribute
Strategize
PlanConsolidate Drive
MonitorEscalateDetect
Knowledge Infrastructure
Shared Data & Metadata
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Efficient Decision Support Enables ContinousImprovements
Timely decision-makingbased on betterinformation
Clear performancemeasures and follow up at all levels
Activity driven by integrated planning and value creation
Production efficiencyalmost 1% higher
Declining slopewithout systems
support
Continousimprovements based
on qualityinformation
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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 projectExample: Removal of 20% of costs and man-hours in preventive maintenance
High estimated future business value
G2G is set to save the Greater Ekofiskoperations NOK 1.4 Bn annualised -dependent upon efficient systems to deliver the benefits. ROI calculations for this project shows payback in under 1 year.