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Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

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Page 1: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Salient Margin Minder MaxActivity Tracking System

Performance Management for the Oil & Gas Industries

Page 2: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

2 Activity Based Performance Management Suite

About SalientSalient Corporation offers business and government a new solution for efficient management. Drawing on diverse data from multiple sources, our technology measures how business activity creates value – quality, financial efficiency, productivity – while its user interface eliminates barriers to use of this knowledge for continuous process improvement.

Salient’s technology platform is a super scalable in-memory OLAP system for activity based value scoring. Its user interface is a graphical toolbox for interactive, stream-of-thought data mining, visualization and root cause analysis. Overall, the technology enables non technical knowledge workers to evaluate process behaviors rapidly, eliminate waste and optimize outcomes continuously.

Founded in 1986, Salient today serves more than 35,000 users in 53 countries. For more information, visit www.salient.com.

Page 3: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Introduction 5 How Margin Minder Max Works 6

Improve Upstream Efforts 8 Production 8 Exploration 9 Monitor Midstream Operations 10

Manage Downstream Activities 13 Refining 14 Marketing 16

Go to Dead Net 18Managing Collections 19Integrate & Correlate 20Control & Optimize 21Testimonials 22

Salient Margin Minder MaxActivity Tracking System

Performance Management for the Oil & Gas Industry

Table of Contents

Page 4: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

More often than not, investments,

activities, and individual performers

in sales and marketing, distribution,

services and other operations don’t

connect in any visible way to bottom

line performance.

Page 5: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 5

Introducing Margin Minder®

MAX

Making the connection...in real time.

The Margin Minder® MAX system puts the right information where it counts, when it counts, directly in the hands of the people who make the daily decisions that determine company profitability. Margin Minder MAX is based on Salient’s UXT® high performance data exploitation system. UXT tracks commercial and operational data in real time. It integrates billing, syndicated, survey, supply chain and causal information and then organizes these data streams into a comprehensive, dead net accounting of the activity of the enterprise. Performers, managers and executives all get a never-before-possible capability to correlate their own actions to profit, growth, efficiency and productivity. MAX lets them see the connection graphically, continuously, in real time.

Margin Minder®

MAX

Page 6: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

6 Performance Management for the Oil & Gas Industries

HOW Margin Minder Max WORKS

MAX lets managers and others package intelligence on the fly by pointing and clicking on “tabs”, rows or graphics. They can start from any-

place and go anywhere... drill into any business issue by product, asset, territory, service, partnership, contractual term down to the ultimate

distribution point (in any order). They can zoom in on any month, week, day, etc. For example, here is a graphical drill-down to investigate

decreasing margins.

On the following pages, you’ll see other examples that represent how everyone can use MAX to find exactly the information they need to achieve maximum performance.

In just seconds, trend the perfor-mance of any well over time.

On the following pages, you’ll see

In just seconds, trend the perfor-mance of any well over time.In just seconds, trend the perfor-

Compare product performance to last year or any other timeframe.

Just double-click to drill down into any area of concern (for example, crude oil), and list informa-tion for each account.

GasolineCrude

Jet FuelDiesel

KeroseneResidual Fuel Oil

Asphalt

Gasoline

In seconds, select any account and trend its performance over time.

Petrol Inc NA Oil Co MY Internat TransoilRevcon InternationalZicon FuelEuro Fuel Comp

Page 7: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 7

Tech Talk:

Margin Minder Max is a tightly integrated client /server business activity monitoring (BAM)

application that bolts on to several back office processing sources (no IT changes are

necessary). User access is from anywhere via TCP/IP LAN, WAN and Net.

Its data engine /server is highly scalable… to billions of transactions… without compromising

speed or granularity. It exploits all means… compression, n-dimensional grid indexing,

SMP and MPP and more… to deliver maximum intelligence in minimum time to hundreds or

thousands of on-line users. It integrates transactional and causal data from any source.

Its “Minder” client is a user driven intelligence assembler and presenter. It operates on both

fat and thin Windows® clients and reports in real time.

Sales Accounting Systems

Other Transaction Processing Systems

Financial Systems

Virtually Any Other Source!Load & Go (optional)

Margin Minder®

MAX

Page 8: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

8 Performance Management for the Oil & Gas Industries

Production

Volu

me

Visualize production trends by region, well, or any other way.

MAX can organize every type of fact (costs, revenue, profits, time, incident counts, causal information) to integrate and organize the vital

statistics from every business activity. Starting with upstream operations, MAX can track assets, capacities, locations, distances, volumes,

operational costs, etc., of production and exploration.

Some examples of what you can do:

• Trend performance over time at every level... the entire company or region down to the single

well or platform.

• Identify under/overperformers to maximize investments.

• Integrate production information with midstream and downstream activities to provide a complete

picture of profit and productivity.

Wells by Region YTDWell Costs vs VolumePlatform StatusWell StatusPlatform RepairsWell Repair CostsProduction vs. Budget Batch Analysis - NEBatch Analysis - SELow-Volume WellsLow-Volume PlatformsNew Wells vs. Old Wells

Company P&L

Just click to see important views you use every day.

Page 9: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 9

In just seconds, trend the performance of any well over time.

Set expectations on the fly - who or what passes or fails. For example, wells with volume over say, 300 bar-rels per month (10 barrels per day).

Just double-click to list wells that aren’t meeting expectations.

Production

Exception (Wells) ME 11/1999 [Barrels >=300]

Well: 03093

Volu

me

Mbd

Barrels Operation Cost

Page 10: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

10 Performance Management for the Oil & Gas Industries

MONITOR MIDSTREAM OPERATIONS

MAX can integrate pipeline or tanker capacities, locations, production schedules, volume

shipped, orders placed and supply levels, as well as asset costs (repairs, depreciation, fuel,

etc.). It integrates all of these into a comprehensive view of product transportation and

storage. Some examples of what you can do:

• Improve efficiency of assets to reduce costs.

• Spot shortages or missing volumes to reduce potential lost income.

• See the product pipeline daily.

Compare number of work orders, cost of repair and depreciation, and repair time between tankers or other types of assets.

Instantly, break down any piece of data into its component parts.

Tanker DNCB368

Page 11: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 11

RefinedCrude

Crude

Pipelines

PIPELINE: V2529

Regular GasolineMidgrade GasolinePremium GasolineDiesel FuelKeroseneOther

Mbd

Compare pipelines by region or any other way.

Mix columns show the percent in each Area. For example, the SouthEast has only 8.8 percent of pipe-lines but 73.4 percent of pipe-line repair costs.

Double-right-click to list pipe-lines of any type in any area.

Instantly, investigate any pipeline. For example, look at quantities transported.

Page 12: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

12 Performance Management for the Oil & Gas Industries

Supply Trends. How many days of supply do I have? How should I adjust my production or transportation schedule?

List, then sort vehicles by % change in fuel efficiency.

For example, in a fleet of more than 600 vehicles, some show up with num-bers that require explanation.

CHEVR DF900FREIGHT TANKZ90CHEVR TF750FREIGHT TANKZ90FREIGHT TANKB90CHEVR TF750

Tank T09282

MONITOR MIDSTREAM OPERATIONS

Page 13: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 13

MANAGE DOWNSTREAM ACTIVITIES

MAX can track all of the facts (sales volume, refined volume, revenue, products costs, opera-

tional costs, etc.) of refining and marketing to provide a clear picture of performance and

opportunity at any level. Some examples of what you can do:

• Compare key indicators across channels, markets, key accounts, products, etc.

• Compare any one indicator across several time-frames.

• Trend performance over time.

• Find performance outliers by price and volume (or any other measures).

Compare Sales Reps by Sales Revenue in each Category.Compare Sales Reps by Sales Revenue in each Category.

Compare Performance over Multiple Timeframes

(for example, refined volumes this month and year-to-date vs. last year).

Refining Refinery Smithtown

Smithtown

Westville

Johnston City

Mandersville

Mbd

Page 14: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

14 Performance Management for the Oil & Gas Industries

MANAGE DOWNSTREAM ACTIVITIES - REFINING

Highlight over and under achievers. You set the criteria, for example, here red indi-cates a division exceed-ed budgeted amount by over 10%.

DistillationConversionStorageTreatmentQuality ControlSafetyFacility Management

Refining Westville > By: Division Distillation

Compare budgets to actual results by division or any other way.

Compare fluctuations in per unit product costs by refinery. Trend results over time.

Refining By: Refinery Smithtown

Smithtown Westville Johnston City Mandersville

Uni

t Pro

duct

Cos

t

Page 15: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 15

Trend capacity vs volume refined to see potential lost revenue.

Simply draw a box about any area of concern to find out more.

Refinery Smithtown

Volume Refined Capacity Pot. Lost Sales

Volume RefinedCapacityPot. Lost Sales

Page 16: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

16 Performance Management for the Oil & Gas Industries

MANAGE DOWNSTREAM ACTIVITIES - MARKETING

Trend sales volume, sales revenue, and sales margin (profits).

In one second, smooth the graph to see general trends.

Instantly plot and drill into outliers where per-formance is not meeting expectations. For example, stations with below average price and volume.

16 Performance Management for the Oil & Gas Industries

formance is not meeting expectations. Product Regular Gasoline

Volume

Mbd

Category Petrochemical

Page 17: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 17

Analyze increasing/decreasing volume, costs, revenue or margin.

For example, are sales volume increases due to more franchise gas stations, greater volume per station, or both?

Average volume per sta-tion

Active franchise gas stations

Point and click to list gasoline volume sold at each station.

Category Gasoline

NorthEast >

Stat

ions

Mbd per Station

Category Gasoline

NorthEast >

Address City Mbd

Page 18: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

18 Performance Management for the Oil & Gas Industries

Instantly, list the worst overdue invoices, along with contact informa-tion for immediate action.

Not only does MAX provide the information and tools to make more money, but it can also enable

you to collect that money when it’s due. MAX seamlessly integrates accounts receivable (A/R)

information (invoice amounts, paid amount, A/R balances, contact information, etc.) with data from any or all types of transactions to measure

the effectiveness of every partnership, account ... all the way down to the individual transaction.

Some examples of what you can do:

• Compare A/R balances to revenue, margin, or any other sales measure.

• Make others (sales representatives, district managers, etc.) aware of and responsible for past due accounts.

• Quickly identify the riskiest accounts and provide all information required for immediate action.

Petrol Inc.NA Oil Co

MY Internat Transoil

Milkey Way FuelTres Oil Inc.

PetrotransportRestoil Corp.

47732 Restoil Corp. over 90 95,607 95,607 Maria Jones 555-383-383872928 Restoil Corp. over 90 56,590 56,590 Jonny Sanchez 555-292-383812627 Restoil Corp. over 90 35,391 35,391 Maria Jones 555-533-383810292 Milky Way Fuel over 90 34,911 34,911 Julia Louise 555-383-4482

Compare AR balances and days past due by region, key account, etc.

Page 19: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 19

GET TO DEAD NET PROFIT

MAX brings all revenues and costs from every business activity together in a comprehensive

accounting of dead net profit contribution. The result is available every day at every level... for the

individual relationship, person, product, location, asset or event... up to the enterprise.

Gross Revenue(whatever you call it)

– Cost of Goods & Services– Discounts– Rebates– Recoveries– etc.

Gross Profits(however you define it)

– All Other Expenses– Sales & Distribution– Advertising & Marketing– General Administration...any others+ All Other Revenues (whatever they are)

+ =Dead Net Profi t

Page 20: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

20 Performance Management for the Oil & Gas Industries

INTEGRATE & CORRELATE

The previous pages show some examples of activities that MAX can track and integrate; however, these are just a few of the possibilities that

MAX introduces to business performance management. MAX can track any type of data (volume, money, time, incident counts, business condi-

tions or causals) from any type of upstream, midstream, or downstream activity (research, exploration, production, transportation/pipeline, refin-

ing, and marketing). MAX can integrate any or all of this information from any source to show how all activities affect each other and ultimately

bottom line profitability.

Tracking System

Margin Minder®

MAX

Host Accounting/Data Warehouse

Administrative Costs

Asset Tracking Transactions

Inventory & COGS

Page 21: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Performance Management for the Oil & Gas Industries 21

“Dead net profit & growth”

Because MAX integrates granular data from many sources, it allows you to see dead net profit at every level for precise financial control and

continuous accounting of the value chain.

But more than that, it shows how these transactional values relate to business constraints and conditions. The result is the ability to measure

real productivity (e.g. per hour, per employee, per barrel) and provide that information at the appropriate level to executives, regional managers,

in-field workers, etc., so that everyone has timely, relevant information to optimize every decision made and action taken.

“Dead net productivity”

...one region, refinery, well, etc.

CONTROL & OPTIMIZE

For example, a P&L for the entire company...

Volume

Total Sales

Cost of SalesDistributionTransportationFinancial Gains

Operating IncomeAdministrative ExpensesOther ExpensesCapital InvestmentsTaxes

Net Income

Average Rev/Employee

Average Volume/WellAverage Volume/Refinery

Company Best Oil Company

Volume

Total Sales

Cost of SalesDistributionTransportationFinancial Gains

Operating IncomeAdministrative ExpensesOther ExpensesCapital InvestmentsTaxes

Net Income

Average Rev/Employee

Average Volume/Refinery

Refinery SmithTown

Page 22: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

22 Performance Management for the Oil & Gas Industries

TESTIMONIALS

A GREAT TOOL FOR INTERACTIVE SCOREKEEPING“We have to be able to get new products to market in a hurry, and then just as quickly we have to be able to determine if the product is going to be successful. We have to identify its strongest niches and be able to specifically market it to those areas. The Margin Minder system is a great tool for interactive scorekeeping, and it keeps us from making expensive mistakes.”

Allen Savasta, Director of IS.

Oasis Foods Company, Hillside, New Jersey

THIS IS PHENOMENAL“I can’t think of what we don’t track with UXT (MAX). With about 13,000 customers and 60 drivers, we now have real-time control of our profit and loss activities enterprise wide. We especially like the ability to monitor profit performance of individual sales people, and recently decided to base part of their compensation on margin delivered. This is phenomenal.”

Ellen Morgan, Data Systems Manager

Royal Crown Bottling Corp., Evansville, IN

A SYSTEM THAT IS EASY TO USE, MAKES THE DATA EASY TO UNDERSTAND“We want our sales people selling, we don’t want them pounding on a spreadsheet to get data they don’t want or can’t use. And they’re not analysts. They want a system that is easy to use, makes the data easy to understand and does all this very quickly and visually. Margin Minder is the single best tool we have for monitoring supermarket sales.”

Steve Gottlieb, Vice President of Planning and Financial Reporting

Carvel Ice Cream Bakery, Farmington, Connecticut

A TOOL TO WATCH PROFIT & LOSS IN REAL TIME“We definitely saw payback on the product within the first year, no question about it. Salient is used as a control monitor to immediately solve problems. Between 10 remote warehouses, plus a large distribution center, Salient brings it all together in the form of a sales tool for branch locations and at the corporate headquarters it is a tool to watch profit and loss in real time.”Bill Barten, IT Manager

Carolina Beverage, Salisbury, North Carolina

“Our Sales Managers are now about 100% more effective with Margin Minder.”

Aaron Dym, Controller, MIS

W&L Sales (Coors distributor), Harrisburg,

Pennsylvania

Page 23: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

In summary, Margin Minder MAX...• Bolts on to any ERP, data warehouse, accounting or departmental data source.

• Scales to fit your company, no matter how big it is.

• Integrates and organizes all of the information you collect.

• Provides graphical, real-time monitoring of value contribution at all points, for all persons, functions and processes.

• Supplies feedback in time to affect outcomes.

• Delivers extremely fast ROI, with operating margin efficiency improvement of 3% or better.

Call Salient Corporation for more information now (607 739 4511).

Margin Minder®

MAX

Page 24: Salient Margin Minder Max · Salient Margin Minder Max Activity Tracking System Performance Management for the Oil & Gas Industries

Salient Corporation203 Colonial DriveHorseheads, NY 14845 USA

phone: 607 739 4511 fax: 607 739 4045salient.com

©2009 Salient Corporation