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Vision of Success

Vision of Success. All Major Capital projects use one Standard Cost Coding Structure. SCCS is easy to use Projects transition to report out easily Its easy to compare costs between projects- both inside TCO and across Chevron

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Vision of Success

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  1. Vision of Success • All Major Capital projects use one Standard Cost Coding Structure. • SCCS is easy to use • Projects transition to report out easily • Its easy to compare costs between projects- both inside TCO and across Chevron • We find ways to facilitate flow of coding from contractor to TCO • SCCS and project controls are complementary- no interference and minimum duplication of effort

  2. Objective & Scope… continued • Major Capital Project’s Costs • FE costs – optional • Establish standard Cost Breakdown Structure that can be filtered for individual project needs • Build SCCS into Kildrummy CostManager • Coordination with PRC In the SCOPE Outside the SCOPE • Non capital costs • Standard codes flow through ARIBA as a Metadata • Use Standard SCCS in E1 • Standardization of WBS • Custom Software like code builder • User manual documentation

  3. Implementation Plan • Phase 1: Identification of opportunity • Phase 2: Alternative generation • Phase 3: Develop preferred alternative • Demonstration on Preferred Alternative • Decide on SCCS (Methodology: involving stakeholders) • Mapping with E1 codes (Methodology: workshop ) • Identifying the Gaps • Identify process improvement opportunity • Phase 4: Issue SCCS – and Deploy to Users • Existing Phase 3 projects will have to commit time and resource to do a one time conversion from existing CBS to Standard CBS • Phase 5: Address Process Improvement Opportunity – (identified in Phase 3)

  4. Discussion: Standard Cost Coding Structure • SEP and even GUP should consider using the SCCS • Will we be able to get contractors to reliably use our SCCS • Confusion about “2200 Procurement” in SCCB - consider clarifying • The “front end” of cost codes, WBS, is custom for each project, independent and complementary to SCCS • Asset capitalization and other project custom requirements are supported by WBS • Need a simple visual diagram to communicate SCCS to project leaders • Get buy in from PMs before implementing • Try to capture lessons learned from Downstream Standard CBS • Address applicability to small projects – same structure in simplified form • Will need to provide training in SCCS for account analysts • We should implement as soon as possible – no reason to delay • Show how the WBS-CBS-benchmarking-WBS feedback loop works TCO Confidential 4

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