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CIEP WCS Category Team Vision and Objectives

Drilling & Completions Well Construction Services Category Management Plan Eurasia BU November 2 nd , 2005. CIEP WCS Category Team Vision and Objectives. Vision. Main Objectives.

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CIEP WCS Category Team Vision and Objectives

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  1. Drilling & Completions Well Construction Services Category Management PlanEurasia BUNovember 2nd, 2005

  2. CIEP WCS Category Team Vision and Objectives Vision Main Objectives To be recognized by D&C as creating value while being viewed by suppliers as the customer of choice through working category management at the enterprise level and having alignment with the company’s business goals. • Develop PIT’s to drive OE/TCO improvements • Utilize KPI’s & scorecards to drive supplier performance • Implement at least two off the shelf technologies • Cost Management • Strategic Sourcings Key Elements of Business Strategy In Scope Out of Scope • N/A • Achieve Incident Free Operations • Collaboration with suppliers on the implementation of existing technologies and the development of new technologies • Create value through OE/TCO opportunities that align with the OPCO business goals • Improve Supplier Performance • ASBU • CUE • EBU • CBU • PNZ/SAT • LABU • IBU • SASBU • NMA • AASBU Category Structure Well Construction Services Pumping Dir. Drilling Fluids Wireline Rentals& Service Well Const Equip • Cementing • Cementing Tools • Stimulation • Sand Control Pumping & Tools • Directional Tools & Services • MWD/LWD • Whipstocks • Survey Tools • Drilling Fluids • Completion Fluids • Completion Fluids Filtration • Solids Control • Cased Hole Logging • Open Hole Logging • Perforating • E-line/Slickline • Coil Tubing • Fishing Tools • Tubular Running • TCP • Coring • Liner Hangers • Rental Pipe & BOP‘s • SCSSV‘s • ECP‘s • Screens/Blanks

  3. D&C-WCC Category Team Vision and Objectives Vision Main Objectives To be recognized by D&C as creating value while being viewed by suppliers as the customer of choice through working category management at the enterprise level and having alignment with the company’s business goals. • Develop PITs (ASRs) to drive OE/TCO improvements • Utilize KPIs & scorecards to drive supplier performance • Facilitate usage of existing/new technology and best practices • Manage category spend using Category Management tools and processes Key Elements of Business Strategy In Scope Out of Scope • Achieve & sustain Incident Free Operations • Create value through OE/TCO opportunities that align with OPCO business goals • Participation in the identification and implementation of existing/new technologies and best practices • Improve Supplier Performance through utilization of Category Management tools & processes • SUBSEA WELLHEAD & TREES SYSTEMS • CTNAU & CTOP BUs Category Structure Well Construction Materials OCTG Surface Wellheads/Trees Drill Bits Artificial Lift Equipment Other • Casing • Tubing • Connections • Accessories • Services • Fixed Cones-Purchased • Roller Cones-Purchased • Performance Agreements (rentals) • Services • ESPs • Rod Lift Systems • Gas Lift Mandrels & Valves • Wellsite Automation • Progressive Cavity Pumps • Other Lift Optimization Systems • Pumping Units • Tubular Coating • Tubular Inspections • Rod Inspections • Wellheads • Trees • Services

  4. CIEP WCS Category Team Charter • Scope: • Develop and Implement Category Management Strategy • Develop Category specific plans in alignment with Category Group strategies and prioritize and ensure deployment to maximize value to the Enterprise • Define Category program targets • Understand and incorporate business unit and regional requirements • Ensure alignment and partnering with business units • Manage and participate in value creation and value capture activities • Market and category/portfolio analyses • Assessment of Total Cost of Ownership and Value Chain opportunities • Sourcing, Make/Buy, and negotiations • Implementation of agreements and integration of suppliers • Ongoing supplier development, process optimization and contract management • Performance management of Suppliers and Users • Ensure appropriate resources to deliver business results • Provide Team staffing support • Engage suppliers in implementation of value adding technologies • Manage and apply Category Management program/process • Develop and roll-out Procurement best practices, processes and tools across Category • Coordinate with CVX Procurement or other appropriate COEs • Coordinate Regional and Local category activities for Enterprise • Ensure collaboration and Business and Region participation • Manage Resources and Organizational Capability • Manage projects and resource allocation • Help ensure safe and reliable operations through procurement processes and supplier performance plans • Establish joint scorecards and report effectiveness, compliance, etc. • Establish clear roles and responsibilities • Develop training requirements and career opportunities • Role/ Purpose: • The purpose of category teams is to provide business- directed procurement and operations supplier-related solutions to deliver superior business results • The role is to create competitive advantage by using the category management process in cross-OPCO, cross-functional, multi-location teams, guided by executive sponsors, to identify and capture significant 4+1 improvements, focusing especially on total cost of ownership and operational excellence, and to execute the actionable category plans. • Deliverables: • Assist in developing the Category Business Plan • Stakeholder management • Assist in identification of cross-opco initiatives • Process mapping • Category Best practices • Local Category Manager responsible for plan approval at SBU level • Membership (CM): • AASBU – Doug Fenn • ASBU – Jerry Smith • CUE – Graeme McKellar • EBU – Teresa Blackburn • IBU – Depi Sepdiana • NMA – John Kissiedu • SASBU – Tony Dorge • LABU Arg – Pablo Zarra • LABU Ven – Andres Portillo • LABU Col – Juan Carlos Arenas • PNZ – • CBU – • Well Construction Services (CIEP) – Randy English • Membership (SME): • AASBU – John Peters • ASBU – Jim Carroll • CUE – Frank Close • EBU – Eric Wagner • IBU – Hani Sadek • NMA – Jesse Morris/J. Bruton • SASBU – Richard Seaman • LABU Arg – Dick Lambert • LABU Ven – Greg Drury • LABU Col – Juan Carlos Arenas • PNZ – • CBU –

  5. D&C WCS 2004 Spend by PSL Eurasia BU - TCO

  6. D&C WCS 2005(H1) Spend by PSL Eurasia BU - TCO

  7. D&C WCS 2004 Spend by Supplier Eurasia BU - TCO

  8. D&C 2005(H1) Spend by Supplier Eurasia BU - TCO

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