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Improving Crude Selection & Supply Management Discussion Document

Improving Crude Selection & Supply Management Discussion Document. December 1, 1998. Headlines. Caltex has identified substantial benefits to defining and focusing on improving the crude selection process to support their SEA refining network

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Improving Crude Selection & Supply Management Discussion Document

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  1. Improving Crude Selection & Supply ManagementDiscussion Document December 1, 1998

  2. Headlines • Caltex has identified substantial benefits to defining and focusing on improving the crude selection process to support their SEA refining network • Key steps to obtaining the benefits are: (1) thinking across existing organizations, (2) incorporating templates, sound methodologies and best practices to define processes to get a sustainable competitive edge, and (3) involving as many of the Caltex staff as possible in the process. • The timing of the work presents a unique opportunity to overcome the deterioration of margins and profitability throughout SEA • Throughout the project, the PricewaterhouseCoopers team will follow a sound methodology and project & change management approach

  3. Table of Contents I. Crude Supply Importance & Caltex Challenges II. Crude Supply Challenges III. Our Methodology IV. The PwC Advantage V. Appendices

  4. Why Crude Selection is Important • Crude Oil accounts for over 80% of refining operating cash costs • A 1% improvement in average crude slate cost ($0.20/bbl), at constant product slate, yields over 10% improvement in operating margin • Value creation opportunities in the crude planning, acquisition, and scheduling range from $0.20/bbl to $0.50/bbl • Incentives for improving crude oil supply management depend on refinery infrastructure such as location, size, complexity, and access to supply networks 0.50 0.30 0.10 Crude Supply Improvement Incentive, $/bbl inland inland Coastal Coastal hydroskimmer cracking cracking coking

  5. Caltex Crude Supply Challenges • Make as specific as possible for Caltex…. • Captive refineries • ..t • ... • ... • JV Refineries • ... • ... • …. • …. • Export Refineries • ... • …. • …. • Other • ... • ….

  6. Change IntegrationTM Approach Where are we? Where should we be? How do we get there? How do we stay there? Evaluate Envision Empower Excel Transition Management • Improving performance requires an approach that considers all interactions between the Company's organization, business processes, technologies and people, while supporting the design and implementation of enterprise-wide integrated change. • Our Change IntegrationTM framework was developed to guide organizations, such as Caltex, through the myriad of tasks and activities needed to achieve successful enterprise-wide change. It combines the fundamentals of successful change implementation with techniques for business process redesign, training, and technology deployment. • Designed to be flexibly applied, four stages (Evaluate, Envision, Empower, and Excel) provide the framework for implementing the operational and technological changes required to fulfill an organization's strategies and achieve competitive advantage.

  7. Integrated Project Approach The Evaluate phase identifies those areas of crude selection as a prime target for performance improvement through reengineering. In most complex organizations, performance gaps fall into one of two areas: process related and function related. The figure below outlines the 9 step methodology used for the crude selection process redesign. 1. Quantify reason for improvement Process or functional gap? Process restructuring path Functional problem solving path 5. Analyze causes; group into projects 6. Quantify benefits; define improvements 7. Select best solution; relate to processes 2. “As-is” analysis: process and value 3. Set vision for new paradigms 4. Generate ideas & opportunities 8. Redesign new processes 9. Develop implementation change plan Capture benefits; verify results Build new processes Ongoing

  8. Crude Selection “Mega Processes” Based on our project experience, six “mega processes” in crude selection drive Return on Assets “ROA”. The diagram below shows a simplified conceptualization of the relationships between the projects. Crude Selection - ROA Improvement 1. Market Premises 2. Model/Assays 3. Risk Management 4. Acquisition Business Development 5. Crude Constraint Removal 6. Crude Selection Improvement Cycle 1. Market Premises - Market premises drive the entire crude selection and production planning process. This project will define all market assessment and premise development activities throughout Caltex. Premise issuance can be removed from the planning critical path and shifted from a calendar basis to an exception basis to improve market responsiveness. 2. Modeling/Assays - One aspect of this project will consolidate assay database maintenance and upgrade all assay applications for increased utility. The second portion involves a concerted effort at plant LP upgrading including explicit action item, plan and schedule development and exchange of modeling technology and best practices between refineries. Finally, as crude slates become more variable, more sophisticated scheduling tool applications will provide benefits by better identifying plant opportunities or pinch points. 3. Risk Management - This mega process includes two sub- initiatives: developing alternative crude pricing-valuing methods and redefining rules/procedures/goals for hedging. 4. Acquisition Business Development - Crude supply development is an activity that has become increasingly important as Caltex’s network has been expanded. This mega process support ongoing supply development with the goal of increasing supply options for both term and spot crudes. 5. Crude Constraint Removal - All refineries have various hardware constraints limiting crude flexibility. Investment strategies to eliminate these limitations should be reviewed. The corporate planning cycle requirements serve well at starting an ongoing program for review of hardware limitations. A second constraint to crude selection may be lube certification. Finally, operating paradigms developed over the years which limit crude capability need to be challenged. 6. Crude Selection Improvement Cycle - This project will shorten the time between market premise development and receipt of crude as well as redefining selection guidelines to focus on opportunity identification.

  9. Detailed Sub-Processes Hydrocarbon Value Chain Acquire & Administer Leases Explore &Develop Reserves Produce Crude, Gas & NGLs Supply, Market & Transport Market & Distribute Wholesale Products Sell Retail Products Refine & Process Feedstocks Once the “Mega Processes” are defined, the sub-process flow and key tasks need to be defined to understand and improve the flow of data and information. 2.0 ILLUSTRATIVE Refinery Premises 1.0 4.0 Acquisition Business Development Develop Systems/Model 3.0 5.0 Market Premises PwC best practices are available across the complete hrdrocarbon value chain. Optimal LP Solution Decision Support Process 6.0 Market Premises Tasks & Steps 3.1 Crude Pricing Gathering & Analysis 3.1.1 Mkt Intelligence Analysis 3.1.2 Evaluate Marker Crude Pricing 3.1.3 Forecast Monthly Marker Prices 3.2 Product Pricing Gathering & Analysis 3.2.1 Mkt Intelligence Analysis 3.2.2 Forecast Crack Spreads/Margins …………. …………. Refinery Scheduling & Op’s Guidance Planned Performance Crude Nominations & Delivery Windows 7.0 Crude & Term Feedstock Acquisition Continuous Improvement Actual Performance

  10. Evaluate: A Proposed Diagnostic ILLUSTRATIVE This template outlines the key work-steps that drive performance of the “Mega Processes”... Refinery Premises Acquisition Business Development Develop Systems/Model Market Premises Optimal LP Solution Decision Support Process Refinery Scheduling & Op’s Guidance Crude Nominations & Delivery Windows Planned Performance Crude & Term Feedstock Acquisition Continuous Improvement Actual Performance

  11. Week Ending 4 8 12 16 20 24 Interviews & Vision Session with Leadership • Define Level 3.0: • Process details • People • System features • Develop Opportunities Define Mega-Processes Business Model & Process Owners Define Target Environment (TED) Cross functional work sessions to: Define Level 2.0, Energize project and find & Validate opportunities Caltex Operating Principles Develop Next Stage Plans, & Timing Define Performance Measures Determine Best Practice & External Research Options High Level Business Model Present Change Plan Deliverable (s) Catalogue Tools, & Other Initiatives Conduct & Consolidate Research Manage Communications: • Management Team • Regional Organizations • Headquarters Organizations • Individual Refineries Sample Project Approach: Timeline This timeline has been used successfully with other clients...

  12. The PwC Advantage The PricewaterhouseCoopers advantage includes... • In-depth, relevant industry and process improvement experience • The style, techniques and credibility to build consensus across the organization • Creativity and breadth of vision • Independence of thought • A proven, comprehensive framework to define processes and manage change • Motivated and skilled resources with project and facilitation expertise • A customized project approach to meet your needs • Accelerated schedules using concurrent engineering, templates, methodologies and tight project management • An unparalleled commitment to client service

  13. Appendices The following appendices are included... • Crude Selection Issues & Best Practices • Crude Selection Drivers of ROA • PwC Change Methodology Details • Similar Project Experiences and Citations • Resumes

  14. Issues Quality Management - Bad quality hits you twice: when you buy and when you run Price Forecasting - “Because it isn’t an exact science, we never evaluate our performance in price forecasting…” Organizational Barriers - “Operations is King” mentality leading to overly-constrained crude slate vs. “Run what we can deliver” mentality leading to excessive operating volatility Poor Response Times - Distressed cargo opportunities ($0.50/bbl) last minutes, not hours or days Best Practices On-line quality analysis to drive redesigned process based on SPC concepts Continuous monitoring of actual vs. expected crude yields Centralized development of price forecast series with supporting views of industry fundamentals Spread-based prices that link to underlying (price transparent) futures contracts Creation of a process-centric crude supply organization, including crude supply/trading, planning analysts, and crude schedulers Improved information flow Simplify data manipulation & retrieval (central repository) Transfer LP ownership to commercial decision-makers for crude supply analysis Crude Supply Issues & Best Practices

  15. Issues Improper Use of Planning Tools/Methodology - spreadsheet tools, which do not consider processing constraints and improperly tuned/constructed LPs drive wrong decisions Planning/Optimization Skills - LP interpretation skills are in short supply; refinery planners today have better tools but have relatively light experience Price Risk Management - There is no silver bullet, but a good strategy will help mitigate price risk Performance Measurement - Focus remains on absolute margins and external benchmarking with little insight/guidance for improvement Best Practices Integrate refinery performance data and real-time inventory into blending/optimization tool structure Outsource model reviews and “tune-ups” Planning analyst is a key position in engineering career path - provide incentives for longer tours of duty Improve skills in LP interpretation and translation into operating targets Analyze the true price risk management needs of the business, considering historical earnings volatility, pricing terms for feedstocks, etc. Institutionalize a process that examines actual vs. optimal refining performance gap Itemize key components of the gap related to crude supply optimization Crude Supply Issues & Best Practices, cont’d.

  16. Issues Back Office Support - redundant and inefficient work processes; deal management and tracking Marine & Freight - Missing the call on future freight rates drives non-optimal crude selection Best Practices ERP systems and associated re-engineering Process alignment and clear ownership of freight issues Scheduling system able to optimize blend given a “window” Crude Supply Issues & Best Practices, cont’d.

  17. Key Margin Drivers Improved crude selection yields benefits which affect the gross margin and/or asset utilization ratios. Highlighted below are the elements of the “ROA tree” that will be affected by the crude selection processes. Market Premises Product Volume Revenue Distress Sales Price of Product Transportation Demurrage Net Margin Direct CEP Pricing Mfg. expenses Distress Purchases Crude & Feedstocks Costs Salaries & Benefits Non-ArabianCrude Indirect ROA Advertising Accounts Payable/Receivable Overhead Working Capital Inventories Operation Scheduling Asset Utilization Hardware Limitations Refineries Assays LP Runs & Nominations Terminals & Pipelines Fixed Assets Models Service Stations

  18. Key Margin Drivers Delivered Crude Prices Crude Costs Access to Crude Markets Acquisition & Transport Gross Margin Delivered Crude Slate Forecasted Crude Prices & Avails Crude Supply & Trading Effectiveness Product Prices An understanding of the complex interrelationships between the different drivers of the supply chain optimization process is key to focusing improvement efforts. Gross Product Value Forecasted Crude Margins (Optimal Slate) Product Slate Material Losses Access to Product Markets Product Marketing & Trading Effectiveness Scheduling & Operating Effectiveness Optimal Production Targets Forecasted Relative Crude Refining Values Forecasted Product Demand Demand Profile Quality/Grades Forecasted Product Prices Refinery Complexity Production Plan Planning Effectiveness Operating Drivers Structural Drivers Forecasted Plant Capability (Process Unit Availability)

  19. Creating Value in the Oil Supply Process - Our Methodology • Our methodology is based on the four levers of improvement: Information Technology - the management and integration of information, Process - the way work is accomplished, Organization - the reporting structure, and People - increasing individual contribution. Using these four levers as a foundation to drive improvement is Price Waterhouse’s approach for solving complex problems and delivering long lasting solutions to clients. Technology • Price Waterhouse’s Solution: a centralized data repository with integration tools. • Integrated oil movement and refinery information systems promote better planning and operational decisions, thereby increasing asset utilization. • Centralized deal tracking and price forecasting databases. Process People • Integration of planning, scheduling and operations allows the crude blend to be closer to the optimum. • An institutionalized performance measurement process to evaluate actual vs. optimal gaps drives continuous improvement in gross margin. • Better-trained planning analysts produce more commercially-effective operating plans. • Properly designed incentives align individual and team goals with business goals and objectives. Organization • Alignment along key supply chain processes allows optimal solutions across the supply chain to be achieved. • Embracing the view that the refinery is the internal customer of Crude S&T yields dramatic improvements in knowledge transfer and profitable decision-making.

  20. Leveraging the People ENVISIONING At the heart of the Envising Stage, cross-functional visioning workshops are conducted. These workshops are organized and carried out to promote creative “out-of-the-box” thinking. Internal Inputs Desired end state Scope of vision Evaluation Report Vision Process Design TED Envisioning Workshop Strategic Facts Facilitation Vision in terms of Segment Processes Detailed Design of Operational Problems Participation People & Culture Select High-Return People & Culture Technology Opportunities Consensus Processes & Systems Process Redesign Technologies Technologies Opportunities Structures/Facilities Structures Perform Detailed Integrated with Process Performance Measures Redesign of Selected Designs and Targets Business Processes External Inputs Comparison/ Benchmarking Data Best Practices Customer Research Other industry experience

  21. Relevant Citations RELEVANT PETROLEUM CLIENTS PricewaterhouseCoopers believes strongly in its ability to help petroleum clients implement major change and dramatically improve bottom line performance. This confidence is based on a history of satisfying and exceeding client expectations on a variety of reengineering projects in the petroleum industry and elsewhere. This section introduces references from several relevant PricewaterhouseCoopers engagements. The citations show a sample of experiences that are directly related to stated petroleum client requirements. • Amerada Hess • Amoco USA • Amoco/Exxon Chemical Joint Venture • Amoco Malaysia • Ampol Refining • ARCO -Thums Subsidiary • Australian Petroleum Pty Ltd. • BASF South East Asia • B.F. Goodrich • British Gas • British Petroleum USA-UK • Chevron • Clark Oil • Conoco • Crown CEntral • Eastern Group • Exxon Chemical • Exxon Company, U.S.A. & International • Gas & Fuel Corporation of Victoria • HB Fuller • Hercules • Indian Oil Corporation • Koch Industries • Koch Refining • Kuwait Petroleum Corporation • Lagoven S.A. • Marathon • Maraven S.A. • Maxus Energy • Mobil Chemical • Mobil Oil • National Association of Convenience Stores • National Auto Truckstops • Neste Oy • New Zealand Refining • Pennzoil • Pequiven • Petrolite • Repsol • SAMAREC • Saudi Aramco • Shell Australia • Shell Austria • Shell Caribbean • Shell Chemical, USA • Shell Europe • Shell Oil Trading • Shell Netherlands • Shell/Royal Dutch • Singapore Aromatics Company • SONAT Exploration • StarEnterprise • Tatneft - Russia • Total Petroleum • UOP • Valvoline • Yaroslav Refinery          

  22. Similar Project Experience 100 BPUSA Supply Star Enterprise BP OTI Koch S&T NZRC IOCL TOTAL’ Risk Projects Degree of Process Improvement Stasco Refiner Pricing 0 Degree of Change 100

  23. Credentials INDUSTRY ENDORSEMENTS PricewaterhouseCoopers is recognized throughout the industry as a leader in client service delivery. PricewaterhouseCoopers has excelled in satisfying chemical products clients by listening and understanding their issues. We have been recognized repeatedly by our clients for providing excellent service and innovative approaches to business solutions. “The PwC team is our partner in the fullest sense of the word. Their knowledge and experience in the chemical processing industry, coupled with their experience with information systems implementations and their ability to integrate with and become part of my team, guarantees that we will be successful with our implementation and our business renewal efforts.” - Bill Noglows, General Manager North American Operations Cab-O-Sil Division, Cabot Corporation “The primary reasons we chose PwC, in descending order of importance were: ‘Their commitment to provide experienced staff to the project! Not only were they prepared to commit one of their leading managers for the whole project . . . they would provide highly experienced staff in support of each module implementation.’ ‘An implementation methodology which made sense.’ ‘ A willingness to partner with Hercules in the ups and downs of any project as extensive as what we are trying to achieve’.” - Christopher J. WithamChief Information OfficerHercules “PwC came across as clearly having our best interests at heart; not just their own interests. It is not an US and THEM; it is clearly them and us TOGETHER.” - Charlie Cox Information Systems Project ManagerShell Chemical SAP Project

  24. Supply Project Experience • Star Enterprise - Bulk Supply Reengineering • Star Enterprise, the $6.0 billion joint venture of Texaco and Saudi Aramco, refines and markets petroleum products in 26 Northeastern states. Price Waterhouse conducted a focused ten week “Assessment” of Star’s downstream crude and products supply to market chain to identify revenue improvement projects as Star faced decreased refinery margins and increased competition in the market. • Reengineering design projects were initiated to capture benefits that were quantified in three priority areas: improved crude selection and acquisition ($18.0 MM/yr), improved distillate disposition ($9.0 MM/yr) and development of a Star marine chartering capability ($1.5 MM/yr). • Indian Oil Company Ltd. (IOCL) - Supply Chain Reengineering • India's largest petroleum refiner and marketer, has awarded Price Waterhouse a Business Process Transformation (BPT) and IT strategy planning project to cover the client's crude/product supply logistics, refinery management, wholesale product sales and distribution, and the finance and HR support functions. The project's aim is to define supply chain improvements and implement the systems needed to increase IOCL profitability, reduce product losses and improve product mix.

  25. Supply Project Experience • Koch Industries - Supply & Trading (S&T) Operations Reengineering • Price Waterhouse conducted an Assessment, Benefits & Costs (ABC) re-engineering project at Koch Supply and Trading (KS&T). It included trading and risk management for crude (domestic & international), feedstocks, all refined products and chemicals for Koch's domestic and global supply operations. The project identified a range of process and system improvements to streamline the front-middle-back office measurement and accounting processes. • The analysis includes all processes behind the traders: trade capture, risk analysis, scheduling, operations, paper & physical settlement, accounting, compliance and decision reporting. • Major U.S. Independent Refiner - Price Forecast Application • Price Waterhouse was engaged in 1997 to assist with the design and implementation of identified improvements to the refinery short-term planning process. With an emphasis on management of integrated forward price curves, and tighter integration between Supply & Trading and Planning, Price Waterhouse assisted the client in the functional specifications and requirements of a new pricing application that calculates flat prices for export directly into the linear program planning model. • The new price forecasting process and price management application will enable shorter decision support cycles, improved accuracy and ownership of price forecasts, and more meaningful analyses of price sensitivities.

  26. Supply Project Experience • BP USA - Crude and Products Trading Reengineering • In 1993 Price Waterhouse was engaged by BP to help implement improvements in Trading, Crude and Product Operations, and Inventory Control. Price Waterhouse’s Business Process Transformation (BPT) approach was used to minimize non-value added activities; identify industry best practices and procedures, and implement new business processes. Opportunities were identified in the following areas: elimination of redundant tasks in voyage, demurrage and inventory management; integration of systems to support business processes in demand forecasts and exchange inventory balances; transfer crude selection process from logistics level to commercial level. • Benefits of the project included reduction in the number of personnel involved in voyage management, reduced contract approval time, reduced invoice generation time, and a lower working capital from lower oil inventories. • BP OIL UK (OTI) - Middle-back Office Reengineering • BP’s OTI affiliate is considered by many in the industry to be the global benchmark for effective centralized supply, trading and risk management performance. Price Waterhouse did a detailed redesign study of the front, middle and back office operations to improve service to internal and external customers. • Six distinct acquisition and sale processes were reviewed: crude & feedstocks, products, LPG, futures/options, derivatives and outside processing. Ultimately all processes were standardized and new performance measures were implemented to tighten control in a constantly volatile environment. High-level system requirements were also defined to give OTI a responsive, unified decision-making tool and data repository.

  27. Supply Project Experience • New Zealand Refinery - Supply Chain and Support Process Reengineering • Price Waterhouse was engaged in mid-1997 to reengineer the New Zealand Refining Company Ltd., (NZRC) with major shareholdings by: British Petroleum, Mobil, Caltex, Petrocorp and Shell. • The client's overall aim was to reduce manpower costs by at least 25% over the next five years. This assignment encompassed the supply chain and refinery support processes: Manage the Business, Prepare Production Plans, Receive, Produce and Distribute Product, Maintenance, Develop and Improve Facilities, and Provide Support Services. • Shell International - Stasco • Shell International is the largest of 3 worldwide regional supply trading organizations operating in London. PW was retained to act as primary facilitator to help build on an internal re-engineering project by conducting over a dozen top and mid level vision sessions with 40-50 key Shell decision making staff. The project was primarily a “mid and back office” efficiency improvement which started when the trading deal had been completed. The Shell “As-Is” work followed every process needed to accurately track and close the deal transaction for both crude and products. The workshops reached consensus on a valid and achievable “To-Be” vision which became the basis for future implementation work by the Shell team. • Total Petroleum - Downstream Reengineering • Price Waterhouse, France undertook a reengineering and IT project for the downstream European operations of Total. The scope included: four refineries, 20 terminals and 2,000+ retail outlets. The challenge was how to improve the downstream decision processes, overall organization and information system to fit customer needs and improve the flexibility of Total’s organization. Major system needs identified during the planning project included: advanced crude oil acquisition and transportation systems; an integrated finished products management system and state-of-the-art retail marketing and merchandising technology.

  28. Risk Management Project Experience • Conoco - Risk Management Alignment • Price Waterhouse conducted a comprehensive Commodity Risk Management and Trading and Business Risk Profile Assessment for the world-wide operations of Conoco, early in 1997. • Conoco's world-wide commodity risk management and trading framework was assessed in interviews with Conoco's Chairman and senior management team against the senior management expectations and objectives, corporate business plans and strategy, leading best practices and the Price Waterhouse Risk Management Framework. • Secondly Conoco's current business risk profile was assessed using Price Waterhouse pioneering research into how companies are positioning themselves to focus on Opportunity Risk, Uncertainty Risk and Hazard Risk. • Crown Central Petroleum Corporation • Price Waterhouse performed a comprehensive assessment of crude supply and trading practices and related risk management activities. • Assisted senior management in developing a comprehensive trading, risk management and operational performance benchmark framework for the crude supply area.

  29. Risk Management Project Experience • The Eastern Group (subsidiary of Statoil) • Price Waterhouse assisted the Eastern Group in evaluating trading and risk management practices. • Identified and analyzed enterprise-wide commodity and trading exposures and assessed effectiveness of current risk management practices. • Performed strategic assessment of trading and risk management infrastructure. • Identified strategic risk management/trading infrastructure needs and assisted senior management in identifying and developing functional requirements for integrated risk management and trading system platform. • Advised on optimum enterprise-wide risk management framework & organization.

  30. Downstream Team

  31. Staff Expertise Managed and conducted customer research and best practices investigation to support the reengineering of customer service and order fulfillment processes for a regional USA refiner-marketer selling 550,000 BCD to over 8,000 end user, reseller and dealer customers. Name and Project Position Summary of Experience Marty Stetzer Over 20 years oil industry experience in international downstream, P&L and upstream areas. Specific expertise includes: wholesale and retail marketing, supply, planning, engineering projects, refinery operations, Marketing & Supply Practice Leader purchasing and logistics. Has extensive experience in the PricewaterhouseCoopers CI/BPT Methodology in reengineering several domestic and international oil and gas companies. Background Experience Detail Director, Management Consulting Project Manager for a 6,000 hour re-engineering project for a large merchant-refiner with 3 refineries, 30 terminals and an extensive pipeline network. Project examined all product processes downstream of the refinery: customer setup, position management, scheduling, supply, exchanges, billing & collections. A joint client/PW team developed five improvement projects with over $20 million of potential savings in reduce inventory, better customer service and less price risk. Services, Petroleum Industry Group 21 Years Experience Project Manager for a re‑engineering "Assessment" of the downstream supply operation of Star Enterprise, the 50/50 Texaco/Saudi USA joint venture. Enhanced the PW CI/BPT "Evaluate" methodology to include: 5 facilitated workshops, confidential interviews, identification of 350+ issues, definition of a solid business model, development of activity & performance measures/CSF's. Identified and quantified 5 priority projects with over $60 million of benefits. Worked with joint STAR/PW team to implement and achieve benefits on 3 projects. Education and Certifications M.S., Industrial Administration, Carnegie Mellon, 1967 Graduate School of Industrial Administration (GSIA) GSIA Scholar, 1965 B.S., Mechanical Engineering, General Motors Institute PwC: 1990 - Present EDI Plus, Inc.: 1987 - 1990 Superior Oil: 1980 - 1985 Exxon: 1967 - 1980

  32. Staff Expertise Name and Project Position Summary of Experience Charles Kafoglis His experience includes analysis, design and implementation of large mission-critical systems across all platforms. Most recently served as project leader in delivering downstream client/server solutions to a variety Downstream Petroleum Client Service of domestic and international clients. Partner Background Experience Detail Partner, Management Consulting Responsible for PwC's Downstream Petroleum Consulting practice. Leads development of Services, Petroleum Industry Group application systems serving the operational needs of supply, transportation, and marketing business areas. 15 Years Experience Coordinates marketing, sales, human resource, and operational activities of this practice unit. Partner responsible for development of a client/server-based bulk products supply and transportation system for large downstream company. The system was developed as a result of a significant process change effort. Designed and implemented database system to monitor and report refined product stock losses for a large oil Education and Certifications and gas company. B.A., Mathematics, Colgate Designed and implemented an investment evaluation model to analyze proposed major capital investments in University chemical plants and refineries for a large chemical company and a trading company. M.S., Operation Research, Project manager responsible for development of client/server merchandise planning and production Northwestern University CDP, Certified Data Processor reservation system for large national retail chain. System was developed in C and utilized DB2/2 as backend server. PwC: 1983 - Present Gulf Oil Corporation: 1980 - 1983

  33. Price Waterhouse’s Supply Team • Rony Jammar • 6 years industry experience with Fina. • 9 years consulting experience with Bonner & Moore and Andersen Consulting. • Expertise in yield accounting, linear programming, and decision support processes. • Ken Johnson • 20 years industry experience from ARCO, Exxon, KBC, MK Ferguson, Ford Bacon and Davis. • Expertise in operations, process control and information technology. • Executive position experience. • Marty Stetzer • 18 years industry experience with Exxon and Mobil. • 10 years consulting experience. • Expertise in supply chain management and manufacturing processes. • Kevin Waguespack • 8 years industry experience with Lyondell. • 6 years consulting experience in the downstream petroleum business area. • Expertise in operational planning and optimization, benchmarking, strategic analysis, and performance measurement. • Gerry Madore • 20 years of total experience in refineries, gas plants and pipelines in both technical and operational roles. • 9 years at Sun Oil refinery as an Operating Superintendent, and Business Planning Manager. • Expertise in Change Integration applied to business planning and operational processes. • Jon Pierson • 3 years process industry experience with Dow Chemical • 3 years strategic consulting experience in process industries with Wright Killen & Co. • 3 years industrial software development in process industries with IISYS, Inc. • Expertise in strategy development, modeling, yield accounting, data reconciliation, and systems integration. • Russell Pell (Europe) • 7 years industry experience with Exxon. • Refinery experience in planning, scheduling and process engineering. • Expertise in co-ordination of supply chain management and refinery planning.

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