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CSC Proprietary and Confidential OIL AND GAS DIVISION OVERVIEW

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CSC Proprietary and Confidential

OIL AND GAS DIVISION

OVERVIEW

5/26/2016 BE10_0334 2© 2010 Computer Sciences Corporation

Across the globe ― when delivery is critical

Since 1959, We’ve Been a Leader in Business and IT Services

We are a world leader in leveraging program

management and technology to develop business

solutions and services

Market-leading corporations and major government

agencies partner with us when delivery and large

program management are critical to their mission

Our 95,000 professionals serve clients in

more than 52 countries

We have a 51-year track record of client service

excellence

Our global delivery network provides consistent

delivery of solutions and services ― common

processes/methodology and highly skilled, cost-

effective, multilingual resources

We are CSC: an NYSE, $16.3 B in revenues, a

Fortune 200 and Fortune “Most Admired Company” ―

51 Years Strong

Who Is CSC?

5/26/2016 BE10_0334 3© 2010 Computer Sciences Corporation

CSC’s Focus and Investment in Oil and Gas Is Strong

Australia

3,400

Industry Focus Areas

Geographies

Americas

47,900

EMEA

20,500

Asia

19,400

Industries

Consumer Products and Technology

$2.7B

HealthServices

$1.1B

Financial Services

$3.0B

Public Sector

$5.4B

Manufacturing

$2.7B

Chemical, Energy

& Natural Resources

$1.4B

Total Revenue

$16.2B

Total Employees

95,000in 52 Countries

• Business/IT Strategy

• Business/Process Transformation

• Program Management

• Package Evaluation and Selection

– ERP, Work Mgmt, Asset Management

• Work/Asset Mgmt Optimization

• Field Service Mobility

• Enterprise Compliance & Sustainability

• Petroleum/Enterprise Intelligence

• Supply Chain Optimization

• Knowledge Management

• Digital Oilfield/Pipeline

• Reliability-Centered Maintenance

• Security (Physical/Cyber)

• Cloud Business Models

• Package Implementation

• System Development & Integration

• Apps Modernization/Rationalization

• Business Intelligence

• Infrastructure Outsourcing

• Apps Outsourcing/Management

PLAN

BUILD

MANAGE

OPERATE

900+ Energy

Professionals

CSC’s Focus in Oil and Gas

5/26/2016 BE10_0334 4© 2010 Computer Sciences Corporation

Oilfield Services

Exploration & Production

Transportation RefiningPrimary

Distribution Secondary Distribution

Retailing

CSC’s Experience and Clients Span Across the Oil & Gas Industry Value Chain

Industry

5/26/2016 BE10_0334 5© 2010 Computer Sciences Corporation

ERP ProcessesCore Business Processes Supporting Processes

Su

pp

ort

Str

ate

gic

Op

era

tio

nal

Ex

ec

uti

on

Collaboration & Information/Document Management

Commercial Management

Infrastructure Management

Facilities & Plant Management

Surveying and Geospatial Data Management

Off-Take & Storage Management

Enterprise Management (Corporate, Divisional, Asset, Site)

Production Recording & Analysis

Geological & Reservoir Modeling

Process Control

Facilities Planning & Scheduling

Transport Management

Environmental Management

Marketing

Sales Mgmt.

Product Quality & Inventory Management Drilling Management

Geophysical Surveys (Seismic, etc.)

Geological & Petrophysical Surveys

Reservoir Simulation

Appraisal & Feasibility

Market & Customer IntelligenceCompetitor Intelligence

Enterprise Asset Management

Human Capital Management

Production Scheduling

Engineering &Construction Mgmt.

Allocation & Reconciliation

CSC Supports All Functions of the Business Every Day

Explore Transfer DeliverProduceDevelop

Industry

5/26/2016 BE10_0334 6© 2010 Computer Sciences Corporation

Industry Issues and Trends

• Industry consolidation/M&A and cost cutting initiatives highlight the need for enterprise

standardization of processes, automation where possible and one source of integrated,

actionable data

• “Big Crew Change” — Doing more with less people

• Complexity has increased — along with production demands (get more, faster)

• Declines in existing assets still has to be addressed

• Too much time is spent looking for/processing data

• Companies with cash may use the opportunity to purchase additional resources at lowered

market value

• Productivity improvement areas will still get funded — analytics, knowledge retention and

transfer, collaboration, mobile workforce, process optimization

• Scheduling of assets, equipment, resources, and transportation will still be a major

requirement

• With the rise in Joint Ventures to fund economies for NOCs, independent operation of

systems and services will increase

• IT’s importance to the business is becoming much more strategic as automation and ‘get

more, faster’ are enabled by technology

Industry

CSC Proprietary and Confidential

PETROLEUM ENTERPRISE

INTELLIGENCE

5/26/2016 BE10_0334 8© 2010 Computer Sciences Corporation

Business Intelligence: to improve profit generation through doing the

“right” projects “right” and controlling costs

Process Intelligence: to standardize best practice work processes and

techniques while adapting to the global work environments

Location Intelligence: to track the location of critical resources and

assets while working in the What-Where? world

People Intelligence: to understand in real-time, the organizational

capabilities and skills essential to effective business performance

CSC’s PEI framework is a set of pre-integrated technology components, along with

the data and process models that enables customers to build specialized portals

that blend business, process, location, and people intelligence

What Is Petroleum Enterprise Intelligence?

Petroleum Enterprise Intelligence

5/26/2016 BE10_0334 9© 2010 Computer Sciences Corporation

Integrates Technical, Operational and Financial Systems

Optimize the effectiveness

of operational decisions

Understand the

financial impact

of field decisions

Optimize drilling/

production and maximize

profitability

Financial Performance Management

Planning and

Budgeting

Human Capital

Management

ProcurementFinancials Supply Chain

Operational Systems

Petroleum

Enterprise

Intelligence

Technical Systems

Process

Control

Drilling MaintenanceGeologic Health, Safety,

Environment

Production Workforce

Management

Reservoir

Petroleum Enterprise Intelligence

CSC Proprietary and Confidential

DIGITAL OILFIELD

5/26/2016 BE10_0334 11© 2010 Computer Sciences Corporation

Digital Oilfield(Normal impact area)

Digital Oilfield for Production Optimization

Strategic, tactical and operational decisions are being made. The range of options

and the time allotted for decisions decreases with time.

Months Weeks Days Hours Minutes

Average time required before decisions must be made

Decreasing range of options

Increasing Urgency

Digital Oilfield

OperationalTacticalStrategic

Digital Oilfield

5/26/2016 BE10_0334 12© 2010 Computer Sciences Corporation

Digital Oil Field Definitions

• Consistent

framework for

data and

knowledge

• Remote

operations and

control

• Decision support

• Optimization

through planning,

modeling and

analytics

• Real-Time

response to

market conditions

Trajectory and Seismic

3-way VC

RT Drilling Parameters

Petrophysical Analysis

RT log data

RTGS RT Structural

Dip Analysis

ReportingGeosteering

Correlation

G&G — Drilling

Digital Oilfield

5/26/2016 BE10_0334 13© 2010 Computer Sciences Corporation

“Back to the Future” — Lessons Learned from the Digital Oil Field

• Finding data is a problem

• Work flows need to be analyzed and

developed

• Change management is required to ensure

alignment

Key Drivers

* SPE Digital Energy Forum 2009

Digital Oilfield

Technology

Business

Process Change

Management

Process and Technical Key Elements of the

Digital Oilfield:

• New workflows optimized for total asset

performance

• Increased automation

• Process optimization AND optimization

processes

• Remote decision-support center

• Wellwork (maintenance) optimization

• Artificial lift optimization

• Gauges/sensors linking subsurface & surface

• Wireless/RFID

• Real time reservoir management

• Data Management/“One Version of the Truth”

• Communications infrastructure

• IT infrastructure

• Application Rationalization/Modernization

• Application and process integration

Digital Oilfield

CSC Proprietary and Confidential

ENTERPRISE COMPLIANCE AND

SUSTAINABILITY

5/26/2016 BE10_0334 15© 2010 Computer Sciences Corporation

KEY CONSIDERATIONS:

•Enhance business value

•Improve internal

operations

•Strengthen relationships

•Be an important

accountability mechanism

Sustainability — It Is Part of the Past, Present and FutureAmerican Petroleum Institute Guidance

“The oil and gas industry also recognizes

that reporting on sustainability or non-

financial indicators to those who are

affected by or can benefit from oil and gas

operations and products is a valuable tool in

managing and measuring progress.

Reporting is also one important approach,

among others, for developing constructive

stakeholder dialogue and thereby fostering

a better understanding of stakeholders’

concerns.”

* Oil & Gas Industry Guidance on Voluntary Sustainability Reporting April 2005.

EC&S

5/26/2016 BE10_0334 16© 2010 Computer Sciences Corporation

The CSC EC&S Solution Has the Processes and Tools to Assist in Controlling GHG

• Two of the most effective approaches

to controlling GHG emissions in the

petroleum industry long term are*:

– “Behavioral” and Simple Process

Changes

– Energy Efficiency Improvements

1. Where are you?

2. Where should you be?

3. How do you get there?

* Pathways to a Low Carbon Economy McKinsey and Company.

EC&S

1. Where are you?

2. Where should you be?

3. How do you get there?

Measurement

Set PointControl

EC&S

5/26/2016 BE10_0334 17© 2010 Computer Sciences Corporation

Business Problem: Customers Cite …

• Current processes insufficient to control the corporation’s

compliance or its accountability for the extended supply chain

• Rapidly evolving regulations and requirements that continue to draw

on scarce resources

• Existing infrastructure is challenged to meet even minimal

requirements

• Disparate systems and decentralized data collection causing

reporting at multiple times and levels

• New roles, cross functional responsibilities and culture change

• Ongoing disruptions across the enterprise in product revenues,

operational performance and new product introductions

• Who is concerned:

– VP Regulatory, VP Compliance, VP EH&S

– CEO, CFO, COO, CIO, SBU or Business Heads

– VP Supply Chain

EC&S

5/26/2016 BE10_0334 18© 2010 Computer Sciences Corporation

Carbon Asset Management/Greenhouse Gas Accelerators

EC&S

Technical Architecture

Regulatory Expertise and

Business Processes

Strategic Planning Collaboration, Data Capture and

Data Management

Data Capture

Workflow for EPA

ACES Regulation

Program Management

Dashboards

Capture Templates

Regulatory Reporting Environmental Plant

Data Management

Repurpose Plant Process and Emissions Data

Concept Architecture

Core DiagramCommunication

ECHA IntegrationSubstances

CSC REACH

Core Architecture Diagram v0.2

REACH Master Data

Substances

Preparations

Articles

Suppliers Customers Legal Entities

Substance

Management

Substance

Volume

Tracking

Use and

Exposure

Management

Supply Chain

Collaboration

Legal Entity

Management

SIEF

Management

BPMS/

Worksflow

Content

Management

Data

ManagementIntegration

REACH

Registration

REACH

Dossier

Preparation

Billing and

Invoicing

Classification

& Labelling

Portal IUCLID

BPMSSIEF

ManagementCore Process Core Data

Core

Technology

Security

REACH

Inquiry

REACH

Monitoring

REACH Master Content

CSA/CSR SDS ECHA

Dossiers

Contracts/

Agreements

Contract

Management

Compliance

Tracking/Audit

Collaboration

Architecture Overview

Application Area

Map

LIMS/Testing

SystemsERP Systems

SIEF Management

Supply Chain

Communication

Management

Substance Volume

Tracking

New REACH functionality or

extended existing functionality

Legal Entity

Management

ECHA

Communication

& Dossier

Management

Existing functionality

REACH BI &

Reporting

Content Management

and Authoring

Billing &

Invoicing

Volume Data

Testing & Exposure Data

PPORD Data

Aggregated

Volume Data

Organizational

Data

Information

Request/Response

Information

Request/Response

REACH

Documentation

CSC REACH

REACH Application Architecture v0.1

Organizational

Data

Alerts, Notifications,

Authorizations

Classification

& Labelling

Data

Data

Models

CLIENT LAYER

CSC REACH

Reference Architecture Stack Diagram v0.1

SECURITY

Authentication

Encryption

Provisioning &

Administration

Non-

repudiation

Authorization

SYSTEMS

MANAGEMENT

Monitoring

Alerts &

Notifcations

Scheduling

DATA SERVICES LAYER

PLATFORM SERVICES LAYER

BUSINESS SERVICES LAYER

PROCESS MANAGEMENT LAYER

ACCESS AND PRESENTATION LAYER

Portal/Portlet

Web

Application

Desktop

Application

Web Service

Process

Execution

Engine

Master Data

Management

Content

Management

Collaboration

Tools

Process

Monitoring

Reporting E-Mail

ERPLegacy

ApplicationsBusiness

Services

Application

IntegrationService Bus

INFRASTRUCTURE LAYER

PlatformsNetwork Storage

Application

Server

IUCLID5ETL

Business

Rules

Repository

Metadata

ManagementBI

CSC GHG/Carbon Accelerators Bring Immediate Value

CSC Proprietary and Confidential

ENTERPRISE ASSET

MANAGEMENT

5/26/2016 BE10_0334 20© 2010 Computer Sciences Corporation

Operation and

Maintenance

Maintenance Program Data

Owner/Subcontractor

• Condition Monitoring

• Preventive Maintenance

• Shutdowns/Overhauls

• Breakdown Maintenance

• …

Owner/Operator

• Modifications

• Extensions

• Asset Retirement

• …

The EAM Master Data Challenge

Engineering, Procurement

and Construction

Plant Design Data

Bridging the GAP Between Two Worlds …

OEMs

• Collaboration

• Design

• Procurement

• Construction

• Subcontracting

• Handover

EPC Providers

• Production

• Documentation

• Delivery

• Warranty

EAM

Equipment Data

Equipment Manufacturing

Asset/Maintenance Data

Capital Projects

5/26/2016 BE10_0334 21© 2010 Computer Sciences Corporation

Client EAM Solution Life Cycle

Pre-Feed Feed Design Build Commission Maintain Retire

Owners EPC Operators

Additional

CSC Services

• EPC Collaboration

• Tools/Data Standards

• EPC Sourcing Strategy

• Continuous Handover

• Enterprise Architecture

• Role Based Portals

• Innovation Labs

• Data Cleanup/Loading

• Data Conversion

• Process Design Service

• Engineering Design Service

• PLM Services

• Data Management Services

• Network Performance

• Infrastructure Optimization

• Data Security/Privacy/Firewalls

• Infrastructure/Hosting ITO

• ERP Integration

• Location Rollout Services

• Plant Monitoring Services

• Plant Infrastructure Services

• Procurement and Sourcing

• Supply Chain/Logistics

• Document/Content Management

• Infrastructure/Hosting ITO

• ERP Instance Consolidation

Illustrative

EAM

Single Solution with Multiple Customers

CSC Proprietary and Confidential

REPRESENTATIVE CLIENTS/

ENGAGEMENTS

5/26/2016 BE10_0334 23© 2010 Computer Sciences Corporation

Profile • BHP Billiton is an industry leader in major commodity businesses, including aluminum, ironore, copper,

energy, coal and metallurgical coal. BHP and CSC signed a 7 year, $470 million IT contract, with CSC

providing consulting, systems integration and outsourcing services. CSC acquired the assets of BHP

Information Technology Proprietary Ltd., a wholly owned subsidiary of BHP. BHP extended the original

agreement with CSC under a $19 million outsourcing project with Minera Escondida Limitada; the world's

largest copper producing mine based in Chile. 1,700 employees transitioned to CSC.

Business

Challenge

• In 1999 BHP was forced to change as Australia's protective tariffs crumbled, Asia's economy remained

dormant, and the mining industry suffered from stagnant profits and slumping commodity prices. Under new

leadership, BHP restructured and sold its power, engineering, insurance, and information technology

businesses. BHP decided to focus on its core competencies, oil, gas and minerals, whilst delivering

innovation and technology to aggressively deliver additional value and increased competitiveness.

Solution

Description

• CSC manages BHP Billiton's: Desktop, Network, Midrange, Helpdesk, Applications management and

development

• CSC have set up an "Innovation Fund" with BHP Billiton for the development of joint initiatives. Global

process project-Deployment of global process and standards. Developed GPS wireless technology

applications to control activity from the mines to delivery.

Results • IT spend cut by 30%, 2600 SLA levels set---94% achieved. Seamless integration of BHP and Billiton and

other acquisitions. Globally accessible infrastructure and support allowing BHP Billiton to concentrate on its

core business-A record of profit of $608 in 2001. Online customer solutions-Minerals, logistics, steel and

diamonds-secure trading framework. Streamlined business to business with online external partner trading

system.

BHP Billiton — Managed Services

5/26/2016 BE10_0334 24© 2010 Computer Sciences Corporation

Chevron

CSC has worked with different Chevron BUs on significant projects like:

• GUITSA — Qualitative and quantitative assessment of IT capabilities and project readiness across all business units

within Upstream

• DERM IM — CSC assisted the DERM leadership team to develop a cohesive vision and strategy for Information

Management

• CCUIM — Collaboration, Communications, and Unstructured Information Management Vision to

provide guiding strategy and project road map for CCUIM

• GIL3 — Hardware upgrade and Vista deployment. CSC had the lead role representing CNAEP

• UWT — Transformation of core upstream processes — strategy and planning phases

• ETC PMO — CSC strategy consultant led the effort to re-scope, develop new approach and re-start Chevron’s

master data management project

• DQM — Strategy and framework for implementing data quality management practices in GU

• IMS — Incident Management System implementation for HES

• Reserves Accounting — Project Management over the development and implementation of the GU reserves

accounting system

• SharePoint Framework — Develop standards and guidelines for SharePoint deployments in GU

• SharePoint Arch and Deployment — Develop specific SP architecture, templates, governance, support models, and

deployment plans for GU business units

• PASA — CVX developed a tool to automate annual pay determination. CSC led the testing and global deployment of

the new tool for Upstream

• Planning and Production Scheduling System (Thailand) — Lead developer and integrator

• Water Forecasting and Induction System (Thailand) — CSC led Green Initiative

• Application Development and Management (Philippines) — CSC Managed Services

5/26/2016 BE10_0334 25© 2010 Computer Sciences Corporation

Petrobras — 12 Year Relationship and 35+ Projects

CENPES • Mapping and Implementation of the Technology Management Process of Petrobras

• Optimization of the SAP PM and Asset Maintenance Management at the CENPES

Materials • Implementation and operation of the PMO of the Projects in the area of Materials

• Mapping of the Procurement Process

Shared

Services

• Implementation and operation of the PMO of the SAP R/3 implementation in the E&P

• Definition and Restructuring of the Shared Travel Processes

• Implementation of the Portal of the Shared Services area

Corporate • SAP R/3 Support to the SOX Project

• Business Evaluation and Performance

• Definition and Restructuring of the SMS Processes

• BPM at DSG

ANI and

Subsidiaries

• Implementation of the SAP R/3 - Petrobras Bolivia, Petrobras Colombia and PAI

• Main projects at PESA - Support to the Integration of the Merging with Pecom, Competitively Study and

Strategic Sourcing

• Main Projects at Transpetro - Benchmarking of Ducts and Terminal Tariffs and PMO of the CEO Audits

5/26/2016 BE10_0334 26© 2010 Computer Sciences Corporation

Petrobras — 12 Year Relationship and 35+ Projects

E&P • Implementation and operation of the PMO of the SAP R/3 implementation in the E&P

• Implementation of the SAP BW in the E&P

• Implementation and Operation of the PMO of the strategic initiatives of the E&P

• Implementation of the PMO for the Monitoring of the 30 largest Production Development projects

• Implementation and Operation of the PMO of the PLANGAS

• Implementation of the PLANSAL PMO

• Optimization of the Process of Partnership Operation

• Optimization of the Exploratory Processes of Partnership Operation

• Implementation of the E&P-ENGP Management System

• Definition of the PB Value Chain and Breakdown of the Wells, Exploration and Production process

• Mapping and Implementation of the E&P Business Processes and Optimization of Process Management

in the E&P (Implementation of the E&P Process Office)

• Mapping and Implementation of the E&P-SERV Customs and Purchasing Processes

ABAST • Definition and Restructuring of Supply Chain Management Processes

• Integration of Business Processes of the SAP R/3

• Optimization of the inventory of final products

• Improvements on the solution implemented in the SAP

• PMO of the Strategy Initiatives of Downstream Corp

• Excellence of Downstream Processes

• Supply Chain Assessment and Benchmarking for Crude Oil and Refined Products

IT • Implementation of the SAP R/3 at BR Distribution

• Implementation of the SAP R/3 at Petrobras – Sinergia Project

• Implementation of the SAP R/3 CFM module

• Implementation and Operation of the PMO of the Sinergia Project

• IT Governance for Petrobras Internationalization

5/26/2016 BE10_0334 27© 2010 Computer Sciences Corporation

Strategy • Implement a Business Intelligence architecture and dashboard solution that easily integrates with existing

ERP applications (Oracle EBS) and has a high degree rapidly enabled dashboards. The solution also must

be able to expand to include HR, Payroll, Financials, Procurement and Supply Chain, P2ES, Allegro and

other varied source systems

Approach • Apply an iterative and rapid deployment approach with varied business communities all leveraging the

same technical platform. The approach must show near-term results to the business community and then

allow for expansion of those deliverables over time

Business

Challenge

• Key personnel spend most of their time validating numbers instead of analyzing what the numbers are

saying

• Reduce cost and time associated with compliance reporting

• No “one version” of the truth

• Lean Business Intelligence team. Sensitive nature of business data requires governance and security

• Seamless security integration to Noble environment

Solution

Description

• CSC worked in partnership with Noble Business Intelligence team to install the OBIEE platform and the first

application using Human Resources Analytics Fusion Edition application

• CSC guided the BI team in making the necessary modifications to the configuration and data mappings due

to the decisions that were made during the implementation of EBS HR

• The foundation is in place to proceed with the remaining business functions in a repeatable model

Results • Delivered complete solution in 6 weeks using 2 full time and 4 part-time resources

• Solution included 3 – 5 dashboards

• Out of the box dashboards and reports that are easily understood

• Provided expansion of solution to Payroll, Financials, Procurement and Supply Chain

Noble Energy — Business Intelligence

5/26/2016 BE10_0334 28© 2010 Computer Sciences Corporation

Representative Engagements — Oilfield Services and Exploration & Production

• Kerr-McGee

– Implemented a Knowledge Portal for Transformation Group

– Developed Information/Knowledge Management Strategy and Architecture

• Schlumberger

– Designed, implemented, and providing ongoing support for global customer

engineering support application that links field sites to regional technical service

center hubs

• Baker-Hughes

– Designed field operating concept and business case for INTEQ

– Developed a digital business strategy for Hughes Christensen, Baker Hughes’ Drill

Bit Manufacturing Division

• BHP Petroleum

– Partnered with Novistar on Design and Upgrade of Oil Production Management

application and underlying Oracle11i application stack

– Developed the Petroleum Portal for integrated production views

• EXCO Resources

– Developed IT strategy and implemented P2ES oil and gas accounting package

and SCADA system

5/26/2016 BE10_0334 29© 2010 Computer Sciences Corporation

Representative Engagements — Transportation and Wholesale Marketing and Trading

• El Paso Corporation

– Conducted Business Process Re-engineering which led to a new business

strategy and a series of new acquisitions

– Led the business and IT integration of Tenneco, Sonat and Coastal

• Energy Merchant BU for National Energy Company

– Led gap analysis, design, construction and deployment of MUREX gas trading

application

– Currently conducting design phase for the TPT NG XL trading system

implementation

• Major Petroleum Products Pipeline Company

– Conducted a Business Transformation project with the goal of building a “real-time

pipeline” that operates at the optimal economic and operationally efficient state at

all times

• Interstate Pipeline Division of a Large Diversified Energy Company

– Helped design and construct a new generation pipeline management system

based on valuation of contract opinions

5/26/2016 BE10_0334 30© 2010 Computer Sciences Corporation

Representative Engagements — Refining, Chemicals and Retail Distribution

• Chevron

– Redefined retail marketing business objectives for convenience stores and

developed a new business operating model

– Performed a strategy engagement and defined the business model for jobber and

dealer customer care center

• Clark Refining

– Replaced Plant Maintenance, Materials Management, Yield, Inventory, Process

Historian and LIMS applications across 3 plants

• DuPont

– Performed strategy, design, development, deployment and application hosting for

a Knowledge Portal supporting employees within the Safety Consulting Practice

– Supported deployment and enhancement many SAP/MES projects

• BP

– Developed a commercial transport product offering and business case for

transport carriers and consumers

– Designed and helped implement a wireless device strategy for plants and

refineries “Clipboard to Computer”

5/26/2016 BE10_0334 31© 2010 Computer Sciences Corporation

Objective • Reengineer procurement and maintenance processes in order to combat rising costs due to heavy

regulation and tough domestic and international competition.

Approach • Developed supplier partnerships as a primary

strategy for reducing procurement costs and

improving quality of materials utilized

• Reduced the number of vendors from 175 to 1

• Shortened cycle time from two weeks to nearly

instantaneous

• Eliminated bureaucracy from the current

process and produced a streamlined and

efficient procurement process

• Improved materials availability and productivity

in the maintenance area

Results • Annual savings estimated at $60 million

• Early savings (first year) of $2.5 million realized

• Post-first-year savings of close to $20 million realized

• Post-second-year savings projected at $58 million

A Large Independent Oil Refiner

Supplier

Criteria

Supplier

#1

Supplier

#2

Supplier

#3

Supplier

#4

Supplier

#5

Operations Fit

Cultural Fit

Strategic Fit

Financial Fit

5/26/2016 BE10_0334 32© 2010 Computer Sciences Corporation

Objective • Corporate had mandated that the procurement organization identify and realize purchase cost savings as

part of a corporate wide initiative to reduce operational expenditures in all divisions

Approach • CSC worked with the client’s business units and its purchasing organization to determine purchase cost

reduction opportunities

Results • Identified improvement initiatives including the integrated supplier program for MRO items, and developed

work plans which included activities, resources and timelines required to achieve $100 million per year of

purchase cost reduction savings

A Chemical, Oil & Gas Company

Site Business

Plan

Assessment

Meeting

Develop

Opportunity

List

Preliminary

Review with

Site

Management

Refine

Opportunities

Agreement of

1998 Plan with

Site

Management

• Data collection

• Site management

interviews

• Are we focusing in

the right areas?

• Are our priorities

aligned?

• Key opportunities

• Score cards

• Workplan/ Timeline

• Resources

• Benefits

• Savings target

included into

annual operating

plan

5/26/2016 BE10_0334 33© 2010 Computer Sciences Corporation

Objective • Develop a supply chain vision

• Assess the benefits of achieving that vision

• Determine how applications and business change would enable those benefits

• Develop a high level plan for achieving the benefits and the resulting return on investment

Approach • Work with a cross functional team from client and CSC

• Concentration on:

– Demand Planner and Supply Chain Planner

– Sales forecasting, planning and inventory management processes

• Activities:

– Perform interviews and analyze best practices to determine SC vision

– Perform high-level future state business process design based on SC vision

– Identify opportunity areas based on gaps between current and future states

– Analyze, quantify and prioritize those improvement opportunities

– Verify how applications would provide the technology to achieve future state

– Determine the Business Diamond changes in addition to technology that would be required to achieve

future state

– Determine a high-level implementation plan with associated costs and resource

Results • Annual benefits in 7 figures identified

• Supply chain vision and future state planning processes outlined

• Applications identified as adequate to solve demand forecasting, inventory management and pipeline

replenishment requirements

Downstream Division of a Major Oil Company

5/26/2016 BE10_0334 34© 2010 Computer Sciences Corporation