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Copyright © Saudi Aramco, 2006. All rights reserved. No portion of this presentation may be reproduced, by any process or technique, without the express written consent of Saudi Aramco
Session Chair:Ghaleb AL-Dandan, Project Manager
Saudi Aramco
Presenters:Bader AL-Hammadi, Senior Estimator Marwan AL-Nasser, Business Analyst
Minh Branton, Cost Analyst
Session TitleApplications Supporting Capital
Projects: SAP Project Management Information System (PMIS)
What We’ll Cover …
• Session Objective• SAP Implementation @ Saudi Aramco• Brief Project Background• Project Benefits• SAP PMIS Scope• Speakers Presentations & Demonstrations
Session Objective
• To share the experiences gained in developing ERP applications pertaining to Capital Projects within a dynamic and complex environment.
• To illustrate the usefulness of those applications in other similar organizations.
What We’ll Cover …
• Session Objective• SAP Implementation @ Saudi Aramco• Brief Project Background• Project Benefits• SAP PMIS Scope• System Demonstrations
SAP Implementation @ Saudi Aramco
Business InformationWarehouse
BW
ISIS Telecom, Healthcare, Aviation, Oil
Enterprise PortalEnterprise Portal
HRHuman Resources
Payroll & BenefitsPerformance Management
Core
e-Banking
AramcoSAP
Environment Health & Safety EH&S
Strategic EnterpriseManagement
SEM
Materials ManagementMM
SDSales & Distribution
TFM Transportation Service ProcurementSRV
PMIS
FI Finance & Reporting
PMPlant Maintenance
QMQuality Management
ESTEstimation
PS Projects System
What We’ll Cover …
• Workshop Objective• SAP Implementation @ Saudi Aramco• Brief Project Background• Project Benefits• SAP PMIS Scope• System Demonstrations
Brief Project Background
• The Expansion in Saudi Aramco Capital Program• Distributed nature of the Project Management Teams• The need to create innovative tools to better manage
and control the entire Project lifecycle
What We’ll Cover …
• Session Objective• SAP Implementation @ Saudi Aramco• Brief Project Background• Project Benefits• SAP PMIS Scope• System Demonstrations
Project Benefits
• Business process improvements and automation• Providing a Forecasting tool for PM Capital Projects
Components• Improve data collection, historization and reporting
capabilities for Project Management• Replacement of open shop systems with Saudi
Aramco corporate applications
What We’ll Cover …
• Session Objective• SAP Implementation @ Saudi Aramco• Brief Project Background• Project Benefits• SAP PMIS Scope• System Demonstrations
Project Scope
Capital ProjectPlanning
Conceptual DesignEstimates Prep.Schedule AnalysisCash Flow ApplicationBenchmarking
Construction
Expenditure PlanningCash flow expenditureValue Practices
Project Close OutAutomate SAEP-329Project Cost IndicesBenchmarkingArchiving
PMIS Basic Eng/ Funding/ Detailed Design
DBSP EstimatesProject ProposalSchedule DevelopmentExecution PlanningEstimate Accuracy
Project Scope
PMIS
Estimation
Mgt Reporting Cash Flow
Estimating
Project Close Out
Summary
Eng. & Est. Integration
Tools
CADA
Estimate Accuracy
Construction Statistics Engineering
Statistics
Project Performance
Indices
Expenditure Reporting
Benchmarking
BP Forecast
BP Analysis
Expenditure Forecast Reporting
CADA
Scheduling
Value Engineering
Project cost
indices Cash Flow
Project Material
Capital ProjectPlanning
Conceptual DesignEstimates Prep.Schedule AnalysisCash Flow ApplicationBenchmarking
Construction
Expenditure PlanningCash flow expenditureValue Practices
Project Close OutAutomate SAEP-329Project Cost IndicesBenchmarkingArchiving
Basic Eng/ Funding/ Detailed Design
DBSP EstimatesProject ProposalSchedule DevelopmentExecution PlanningEstimate Accuracy
Project Scope
Management Management ReportingReporting
Business PlanBusiness PlanForecastForecast
Business Plan Business Plan AnalysisAnalysis
EstimationEstimation
Project Management Information System
Expenditure Expenditure ForecastForecast
System Demonstrations
Marwan Nasser
Minh Branton
Bader Hammadi
Presenter
Business Analyst
Cost Analyst
Senior Estimator
Position
Capital Projects Analysis and Reporting
Expenditure Forecast
Estimating and Business Plan Forecast
System
Questions?
“With Information comes Knowledge and with Knowledge comes Improvements”
Bader M. ALBader M. AL--HammadiHammadi
STUDY (+/- 50%) BUDGET (+/- 40%) ER (+/- 10%) Definitive
Study & Development DBSP Preliminary Engineering Detailed Engineering On-Stream
Determine Feasibility of Project
Initial Return on Investment
Involve very preliminarily scope info.
Project becomes part of the Capital ProgramAccuracy +/-50%
Refinement of the Study Estimate
Based on the Design Basis Scoping Paper (DBSP)
Accuracy +/- 40%
Forms an integral part of the project proposal
Prepared using a detailed scope, material take-off and vendor quotations.
Accuracy +/-10%
Based on awarded contracts
Project Close Out
Based on Actual
Project Life Cycle - Phases & Estimates
SAP Estimation &
Business Plan Forecast
Benefits Gained …….
Utilized Online rather than hard copy
Benefits Gained
Eliminated many manual processes
Replaced Several Legacy Systems
Benefits Gained
Single Corporate System
Historized Data (Costs, Quantity, Mhrs)
Benefits Gained
Provided tool for strategic planning (Future Projects)
Benefits Gained
Made a significant improvement to the process
Benefits Gained
Estimate Request Approval
Lead Estimator
Assignment
Estimate Preparations
Estimate Approval
Estimate Upload
Timberline
Estimate Delivery
Estimate Initiation
Estimating Business Process in SAP
Task (s) Assignment
EstimateTracking
Estimate Request Approval
Lead Estimator
Assignment
Estimate Preparations
Estimate Approval
Estimate Upload
Timberline
Estimate Delivery
Estimate Initiation
Estimating Business Process in SAP.
Task (s) Assignment
EstimateTracking
SAP Business Plan Forecast
Business Plan Forecast
3.0
2.0
8.0
5.0
4.0
0
1
2
3
4
5
6
7
8
$ B
illio
n
2007 2008 2009 2010 20110
10
20
30
40
50
60
70
80
90
2007 2008 2009 2010 2011
Mill
ion
Man
hour
s
S. Aramco KSA Others Region
0102030405060708090
Concrete(M3)
Steel(MT)
Pipe(MT)
Pumps(Each)
20072008200920102011
Business Plan Forecast- Commodities & Services
Major Equipment
BP ForecastBP ForecastReportsReports
Construction Mhs
Major Commodities Engineering Mhs
Forecast Engine
EstimationData
5-Year BP
` `
`
`
`
`
`
` `
`
`
` `
Business Plan Forecast
050
100150200250300350400450
2006 2007 2008 2009 2010
Carbon Steel PipingCarbon Steel Piping
Met
ric T
onna
ge
(x 1
000)
Major Commodities ForecastMajor Commodities Forecast
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010
Structural SteelStructural Steel
Met
ric T
onna
ge
(x 1
000)
Year
` `
1.00
1.40
0.80
1.60
0.75
1.00
0.25
0.75
0.15
0.85
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Man
hour
s (M
illio
n
'2006 '2007 '2008 '2009 '2010
In Kingdom
Out of Kingdom
Engineering Manhours Forecast
` `
Minh A. BrantonMinh A. Branton
Cash Flow System
Finance Projects System
Project Cash Flow Business Process
Cash Flow Reports Cash Flow Model Simulation
Historical Data Current Data
SAP
0 10 20 30 40 50 60 70 80 90 100
$ Ex
pend
iture
ERAERA
OSOS
ERA ERA –– OS DURATIONOS DURATIONPRIOR ERAPRIOR ERA POST OSPOST OS-- %%
8 mos.8 mos.
+ %+ %
6 mos.6 mos.22 mos.22 mos.
CASH FLOW EXPENDITURE DURATIONCASH FLOW EXPENDITURE DURATION36 mos.36 mos.
Project Cash Flow Model
• 1100 - New Process Facilities• 1200 - Onshore Maintain Potential• 1300 - Onshore Pipelines• 1400 - Communications• 1500 - Plant Improvements• 1600 - Civil/Infrastructure• 1700 - Site Development• 1800 - Offshore Facilities• 1900 - Power Generation and Distribution• 2000 - Distributed Control System
Project Types
1100 - New Process Facilities• 1101 - Crude Production Expansion• 1102 - Wet Crude Handling Facilities• 1103 - Gas Oil Separating Plants• 1104 - Water Injection System• 1105 - Gas Plant and Facilities• 1106 - Gas Gathering and Distribution• 1107 - Refinery Expansion• 1108 - Terminal/Marine Facilities• 1109 - On-Shore GOSPs
Project Sub-Types
Cash Flow ModelCash Flow Model
Project B Project B –– Gas PlantGas Plant
Project C Project C –– Gas PlantGas Plant
ERA FC
Historical Projects Historical Projects with Different Durationwith Different Duration
ERA FC
ERA FC
OS
OS
OS
Cash Flow Model
FCOSES ERA
Project A Project A –– Gas PlantGas Plant
ES
ES
ES
ES – Expenditure StartERA – Expenditure Request (Funding) Approval
OS – On StreamFC – Financial Close-out
Increment% of Expenditure
$0.1M$0.1M$0.5M$0.5M$2.0M$2.0M$3.0M$3.0M$7.0M$7.0M$8.0M$8.0M$9.0M$9.0M$9.0M$9.0M$5.0M$5.0M$3.0M$3.0M$1.5M$1.5M$0.5M$0.5M
12Q12Q11Q11Q10Q10Q9Q9Q8Q8Q7Q7Q6Q6Q5Q5Q4Q4Q3Q3Q2Q2Q1Q1Q
1010998877665544332211
Quarterly
Expenditure
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Project Cash Flow System Usage
• Front-End Planning • Historical Projects Benchmarking • Cash Flow Forecast Refinement
Project Cash Flow System Capabilities
• Real Time Extraction of Historical Database• Real Time Online Analysis to Check Information• Benchmark against Historical Projects• Produce Cash Flow Expenditure Duration • Develop Project Schedule Cash Flow • Produce Quarterly Expenditure Forecast• Produce a Large Variety of Reports• Allows the User to be an Analyst
New Cash Flow Model SimulationDATA INPUT FOR A NEW PROJECTDATA INPUT FOR A NEW PROJECT
PROJECT NUMBER: PROJECT TITLE:PROJECT TYPE & SUBTYPE:ESTIMATED ERA(FUNDING) APPROVED DATE:ESTIMATED ONSTREAM DATE:ESTIMATED COST: US$
RESULTS OUTPUTRESULTS OUTPUT
0 10 20 30 40 50 60 70 80 90 100
$ Ex
pend
iture
1010998877665544332211
ES ERA OS FC
$0.1M$0.1M$0.5M$0.5M$2M$2M$3M$3M$8M$8M$10M$10M$15M$15M$10M$10M$5M$5M$3M$3M$1.5M$1.5M$0.5M$0.5M
12Q12Q11Q11Q10Q10Q9Q9Q8Q8Q7Q7Q6Q6Q5Q5Q4Q4Q3Q3Q2Q2Q1Q1Q
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% E
xpen
ded
Cash Flow Model ComparisonHISTORICAL PROJECTSHISTORICAL PROJECTS
OffshoreOffshore
OnshoreOnshore
TotalTotal
Offshore Facilities Onshore Facilities Total
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Ongoing Project Mode l 1 Mode l 2Ongoing Proj Cumula tive Mode l 1 Cumula tive Mode l 2 Cumula tive
BY
QTR
S ($
x 1
000)
CU
MU
LATI
VE (
$ x
1000
)
ERA
OS
Cash Flow Model Comparison
ONON--GOING PROJECTGOING PROJECT
NEW PROJECTNEW PROJECT
NEW PROJECTNEW PROJECT
ONON--GOING PROJECTGOING PROJECT
STUDY (+/- 50%) BUDGET (+/- 40%) ER (+/- 10%) Definitive
Study & Development DBSP Preliminary Engineering Detailed Engineering On-Stream
Determine Feasibility of Project
Initial Return on Investment
Involve very preliminarily scope info.
Project becomes part of the Capital ProgramAccuracy +/-50%
Refinement of the Study Estimate
Based on the Design Basis Scoping Paper (DBSP)
Accuracy +/- 40%
Forms an integral part of the project proposal
Prepared using a detailed scope, material take-off and vendor quotations.
Accuracy +/-10%
Based on awarded contracts
Project Close Out
Based on Actual
Project Life Cycle - Phases & Estimates
Marwan N. ALMarwan N. AL--NasserNasser
Capital Projects Analysis and Reporting – Solution Drivers
• Multi Billion Dollar Capital Program• Large and distributed PMT offices worldwide • Need for scalable reporting solution• Need for consistent and accurate reporting• Data analysis requirements
Questions?
“With Information comes Knowledge and with Knowledge comes Improvements”