Bookgasco 06draft2

TABLE OF CONTENTS

This report has been prepared by GASCO for general information only. Information contained herein has been

obtained from sources deemed reliable and no representation is made as to the accuracy thereof. This includes

government agencies, universities, third party suppliers, etc. GASCO does not guarantee, warrant or represent

that the information contained in this document is correct. Any interested party should undertake their own

inquiries as to the accuracy of the information. GASCOl excludes unequivocally all inferred or implied terms,

conditions and warranties arising out of this document and excludes all liability for loss and damages arising

there from.

01 EXECUTIVE SUMMARY

02 ERP Project Journey

03 Engagement Model

04 Milestones

05 ERP Assessment Overview Summary

06 GAP Analysis and Recommendations

07 MAXIMO

08 ORACLE FINANCIALS

09 ORACLE HCM

12 ERP Achievements

13 ERP PIR Department Head Workshop

15 Lessons Learned

17 Memories

As a result of the management discussion in Sir Bani Yas Management Retreat last January 2011, the CEO initiated the ERP Post Implementation Review to assess the ERP project’s success level, to identify the gaps and lessons learnt and to make recommendations for future projects.

The ERP Post Implementation Review (PIR) was conducted over a period of six months with members from HC, FM, CD, TS, IT and with the assistance of external subject matter experts. These experts were brought in to assess the business and IT maturity based on best practices and to come up with recommendations to bridge the gaps. The review was undertaken through online surveys, face-to-face interviews and workshops with key Management and end-users. The overall assess-ment of the project was relatively positive, as exhibited in the following pages.

ERP Post Implementation Review 03

EXECUTIVE SUMMARY

01ERP PIR

Online ERP Applications end-users Satisfaction Surveys.

344Online ERP Project Members Satisfaction Surveys29

3 Online ERP Project Vendors Satisfaction Surveys.

35 Face-to-Face interviews with SVP, VP and department heads from TS, CD, FM, HC and Plants.

Gap Analysis Workshop with Maintenance, Commercial, Human Capability, and Finance staff.

ERP Project Journey

Review planeed vs Actual objectives

Conduct Interviews & Syrveys

Achievements & Lessons Learnt

Identify Gaps

Recognize benefits realized

Formulate Recommendations

Develop Project Plan

Build Business Cases

ERP Project Initiation Analyze Project Performance Award External SME Face-to-Face Workshops / Surveys Document Achievements and Lessons Learnt Analyze / Verify Findings Design Improvement program and Engagement Model Present PIR to Management PIR PROJECT CLOSURE

Apr 2011 May 2011 Jun 2011 Jul 2011 Mar 2011 Jan 2011

32

02 gasco.com

[The ERP Project] is a vital enabler of our business, as it constitutes the backbone of so many of internal cross-functional activities. This implementation will be a significant improvement, a major change that will touch every GASCO staff, or contractor engaged in any working relationship with GASCO.

– Dr. Yves Pouradier

Review Process

+ERP System Engagement Model

An Engagement Model was introduced to monitor the ERP PIR recommendations

implementation and to review and control the new ERP initiatives. The Model consists of

three groups: the ERP Steering Committee to set future direction for ERP Solutions,

IT/Business Department Heads (Custodians) to monitor and control the initiatives,

and the systems’ custodian focal points to formulate enhancement initiatives and to

provide feedback on the success of enhancements.

As seen above, the Model provides a restricted process for introducing new initiatives or

enhancements into the ERP production environment with minimal disruption to the ongoing

operations and also to monitor the ongoing issues. As with all projects, user engagement

is a key factor to success, which was why GASCO tried to include the end users in as many

phases of the ERP project as possible.

03ERP PIR

2007

Milestones

Sept Apr May Mar Apr May Jun May Jun Jan Jun

2008 2010 2009 2011

Implementation Phase

GO Live - Drop 1 “ORACLE HCM”

GO Live - Drop 2 “MAXIMO & ORACLE Financials”

Pre - Implementation Phase

Post - Implementation PhasePost - Implementation Review

ActualPlanned

Maximo Upgrade

04 gasco.com

The ERP Project is a successful achievement by having and adopting a well-proposed plan and good team involvement from sites and HQ. Well done!

- Ismail al Hosani

PIR Project has all the right ingredients for success… Management support, End Users interest and support, and committed and competent Team Members.

– Khalid al Katheeri

It was a golden opportunity for us to review the ERP Project Implementation to highlight the areas of improvement, lessons learnt and make sure that the ERP Project had solved the problem that it was designed to address. Thank you for the management who is always supporting us towards excellence.

– Jamal Omar Daqruq

GAP Analysis

Maximo

ERP PIR Assessment Overview Summary

The second part of the review was to assess the

effectiveness of existing ERP solutions and business

process gaps against leading best practices for

Maintenance, Commercial, Human Resource and

Finance.

The ERP PIR assessment was divided into two main categories: the first was an

assessment of planned versus actual objectives, deliverables, scope, schedule, expenses

and resources.

Maximo Upgrade

DeviationsNo / Minor / Major

10

1

ORACLE HCM

ORACLE Financial

Infrastructure

5

4

TOTAL : 28 No Deviations 12 Minor Deviations 2 Major Deviations

No / Minor / Major No / Minor / Major

The below chart illustrates the assessment results of planned versus actual achieved project

objectives for Maximo, ORACLE HCM, ORACLE Financials and the Infrastructure

subprojects. The major deviations were related to delays in implementing the Budget

management module [ORACLE Hyperion] and Journals workflow approval; both are

expected to be deployed by Q3 2011.

No / Minor / Major

73 issues were found, with the issues falling into

technical, process and/or human categories.

26 business cases and 33 quick win

actions were generated as recommendations to

bridge the gaps.

A TOTAL OF

issuesissu

es

issues

issuesbusiness

cases actions

actions

actio

ns

actio

ns

23

18

14

8

Maximo & Maintenance business processes

Maximo & CD business processes

ORACLE FINANCIAL & FM processes

ORACLE HCM &HC business processes

05ERP PIR

During the meeting

4

7

13

business

cases

busines

s

c

ases

business

cases

This section consolidates all gaps identified

during the workshops, project performance

deviations and ORACLE Financial/HCM

snag lists.

68%Excellent

6% Fair

26%Average

12%Fair

Average44%44%

Excellent AverageExcellent

Fair5%

27%68%

Comparison

The effectiveness of existing ERP solutions

and business process gaps were assessed against leading best practices

for Maintenance, Commercial, Human Resource and Finance.

A strategy and project plan

have been developed for the implementation

of these recommendations.

gasco.com

Oracle FinancialsMaximo Oracle HCM

Application Satisfaction Survey: Overall how would you rank your satisfaction with the following systems?

Maximo

GAP Analysis

• Better Coordination among IT Teams

• Analysis of Maximo Performance Issue by the Joint IT Team (team should be comprised of: Maximo Support team, IT Systems & Database team, IT Security Team, IT Network team)

• Analyze the Data Quality Errors in Maximo (especially in description of Assets, Locations and assignment of Asset to Locations)

• Data Cleansing Exercise (ensure that Accuracy, Completeness and Uniqueness of data is achieved)

• Review of Quality Check Process before entering the data in Maximo

• Standardization of Data Entry in Maximo by agreeing on Nomenclature and centralizing the data entry of new asset

• Use Safety sub module to get directions from Safety department

• Use Hazardous Material functionality

• Automate and Integrate the Permit to Work Process

• Reports should be generated and reviewed by Commercial Management to identify the lack of utilization of Commercial Directory

• Category Supplier History should be shared with Bid Opening Committee

• Implementation of Comprehensive Suppliers Performance Evaluation System

• Introduce comprehensive KPI to monitor supplier prequalification time

• Simplification of Prequalification Process for Non Critical Categories

• Unification of Supplier Prequalification Process and Directory across all Groups

• Budget check before raising a Non Term Contract

• Update and Preparation of all System Specifications

• Introduction of Design Authority and Change Control Procedure

• Introduction of Design Authority and Change Control Procedure

• Report Committee should formulate GASCO’S Reporting Strategy

Gaps Recommendations Maximo is slow from Plant Sites

Commercial Directory is not utilized Comprehensively

Lengthy Supplier Pre-qualification cycle

Budget Check for Non Term contracts is done at the Release Order level

Documentation is not updated once Change Requests are entered

Lack of System Enviroments

Lack of Strategy for Reporting Tools

Accuracy of data in Maximo

Maximo is not being used for HSE requirements

07ERP PIR

Thank you, IT,

for all your support.

- Ahmed Bawazir

GAP Analysis

ORACLE Financials

Gaps Recommendations• Conduct Regular Meetings with Finance Team

• Introduction of Design Authority and Change Control Procedure

• Establish Payables Task Force Committee to investigate Payables process and eliminate manual controls and other non-value added activities in paying invoices

• Review and agree holistic integrated Period-End Closure procedure to meet the GASCO target (and strive to achieve industry benchmark)

• Configure Oracle to enable these available functionalities

• Capture Major Projects commitments in system

• Ensure end-to-end Budgeting Process before Hyperion implementation

• Increase the approval limits of the Accountant and Senior Accountant to reduce the work of Head of AP

• Establish Payables Task Force Committee to investigate Payables process and eliminate manual controls and other non-value added activities in paying invoices

• Review and agree holistic integrated Period-End Closure procedure to meet the GASCO target (and strive to achieve industry benchmark)

• Implement Oracle BI Applications and OBIEE

• Introduce financial KPIs according to IBM Best practices

08 gasco.com

Delay in resolving technical issues

Delay in Month-End Period Closing

Cash Management Process is manual

Major Projects Commitments are not captured in System

Budgeting Process is not fully automated

A lot of Manual work (manual verification) for Payments processes

Lack of Financials KPIs

ERP Project is one way towards continuous improvement and enhancing our business processes. Good luck!

- Hassan Al Hammadi

Memories

ORACLE HCM

Gaps Recommendations• Conduct an Effective Awareness Program Targeting Oracle End-Users

• Data Validation / Check Points

• Conduct an Effective Awareness Program Targeting Oracle End-Users

• Implement and Deploy Business Intelligence Reporting Tool

• Conduct an Effective Awareness Program Targeting Oracle End-Users

• Data Validation / Check Points

• Implement and Deploy Business Intelligence Reporting Tool

• Integrated Talent Management Framework:

Deploy Oracle Self-Service

Build a “Smart” Skills Matrix

Implement Oracle Talent Management Solution

• Integrated Talent Management Framework

• Adhere to the ad hoc payroll run and quick pay such that employee payments outside the payroll can be liminated

• Contractual Staff Payroll to be streamlined via Oracle.

• Carry out Business Process Realignment exercise escorted by effectual Change Managment

• Automate Expense Reimbursement

• Carry out Business Process Realignment exercise escorted by effectual Change Management

09ERP PIR

GAP AnalysisMarch 09th marks the beginning of the ERP Project Deliverables reaching the end users. A massive amount of energy and time has gone in ensuring that your requirements and quality standards are reflected in the final product - Oracle HCM.

- Yves Pouradier

Data Management & Quality Issues

Lack of Reliable Reporting

Limited Analytical Reporting

Oracle Competency Management not being used

Learning Management not leveraged

Performance Appraisal Management not utilized

Urgent Payments outside Payroll

Contractual Staff Salary Payment Process

Paper-based Expense Reimbursement

+ERP Achievements

ICT Achievement AwardGASCO ERP Maximo Project won the ICT

Achievement Awards of Best Energy Deployment of the year 2010 over the Middle East.

The ICT Achievement Awards honours the high achievers and trend-setters of the IT industry of

the region.

• The ERP Project experience introduced more skilled internal

support resources in both business and IT leading to major improvements in support quality and response time.

• Infrastructure was upgraded to the latest technology ensuring better security, performance and availability.

• Automated number of Financial & Human Capability processes resulted in improving the processing time and elimination of manual intervention.

• Automated the Maximo Maintenance and Commercial processes. As a result, the processing time and procedure compliance was im-proved and more than 1,156,000 workflows were initiated and completed since the go live date.

• More than 200 visits to Plants.

• More than 1,000 workshops conducted during the ERP Project.

• Fulltime members spent 10,000 additional working hours.

2010 IBM Maximo Supply Chain Best Practice Award

InnovationReturn on Investment

Empowering the User CommunityBest Practices

11ERP PIR

We are proud that GASCO is implemented state of the art professional tools, world class system, including new IT insfrastructure technology, all of which contributes to our corporate journey toward ecxellence.

- Adel Salem Alkaff

+

Last year ERP project planned 09th March 2009 for its de-liverables, and I am pleased to announce that the First ERP deliverable Oracle HCM is live and operational as of Today, 09th March 2009 as promised.

From today the single source of HR data is Oracle HCM. It is now up to all of us to utilize this new application to its full potential and ensure that the expected benefits to the organisation are realized rapidly.

I would like to thank the Project Team for their continious dedication and the very long working hours they spent on the project over the past months. I would like also to recognize all other employees who contributed to the ERP Project in a genuine spirit of openess, trust and teamwork, thus ensuring this succes.

Best Regards,

Mohamed A. Sahoo Al - SuwaidiGeneral Manager , GASCO

+

The ERP Post-Implementation Review was held at Al Rimal Club on 23 June to present the ERP Maximo and Oracle findings and to discuss the feedback from the three-year long project.

Peter Verhulst (SVP, CS) welcomed the guests and was soon followed by Ben Stanberry from the International Institute of Research (IIR), who was brought in to discuss Change Management and how GASCO can benefit from this inevitable organizational process.

Mr. Stanberry created a ‘crime scene’ to demonstrate how the 12 most common corporate characteristics can ‘kill’ change and how GASCO can better assimilate to and prepare for changes in the future. In the afternoon, IBM external consultants held workshops for Maximo and Oracle users.

Also, a yoga instructor was brought in to show the team how stretching and breathing can help to relieve stress.

PIR Dept Head Workshop

ERP PIR 13ERP PIR

ERP PIR

23 JUNE 2011

workshop

Improvement

Lessons Learnt

MISSEDERP EXPERIENCE No comprehensive business case was developed for the ERP Project. The business case should clearly state the expected business benefits and define measurable objectives, goals and deliverables. Data cleansing exercise was carried out during the ERP Project, but it was not sufficient. More attention should be given to the ERP data quality.

COMMUNICATION Change Management was not carried out properly and some ERP applications faced user resistance.

MANAGEMENT More sites visits need to be conducted to ensure the implementer capabilities, collect lessons learnt and to overcome the ERP challenges.

CORE-TEAM CONTINUITY Core team continuity is the driver of the project: Part-time involvement of some of the project team members and ending of the steering committee meetings caused a gap towards the end.

ACHIEVEDUSER PARTICIPATION Encourage the participation of low level users who use the system more frequently in all project phases, especially requirements. They should be identified early on and involved in decision making to get their buy-in and manage their expectations. (Source: Senior Mgmt Survey)

VENDOR SUPPORT Ensure vendor is certified and qualified and has the required competencies and capabilities. Moreover, vendor support continuity after the implementation is completed is essential to increase awareness about the system. An agreement should be signed at the project start to ensure their commitment. (Source: Senior Mgmt Survey)

TEAMWORK The dedicated ERP interface team to test the process from end-to-end point of view contributed in minimizing the integration issues. (Source: PIR Presentation) Grouping and Allocating Project members from business, IT, and external vendor in one location increased team’s productivity. (Source: PIR Presentation)

MANAGEMENT Planning and simulating the ERP cut-off date more than 4 times minimized the Go Live risks and improved the team readiness. (Source: PIR Presentation) The ERP Systems deployment was smooth through the Soft & Safe Drops approach, which increased the stability probability and minimized the culture shock. (Source: PIR Presentation)

COMMUNICATION The ERP Project was successful in managing the communication process so that all stakeholders were informed of the project status on-time. Many methods were used, including web portals, emails, and newsletters. (Source: PIR Presentation)

4 3

32 32

3Were the project objectives achieved?

31

Did the implmentation process go according to plan? Was the project

successful in your view?

Overall did you think the ERP was a succes?

no yes

15ERP PIR

ERP Implementation, we are introducing a very powerful set of systems, but we need to remember that we will be working with data migrated from different legacy systems running on different platforms. It is critical that activeties like data clean up and data migration are approached in a comprehensive manner, and all aspects are considered, tested and quality reviewd.

- Abdulla S. Al Minhali

Improvement

-

System integration, utilizing standard interfaces and taking advantage of best practices, will help all of us to access quality information immediately, in order to take decisions in time. More robust interfaces between Maximo and the Oracle are amongst the major benefits we will experience from the new ERP slution.

- Rashed Abdulla Al Shamsi,

AGM(A)

GASCO’s business enviroment is one of significant growth. ERP is a necessity to accomodate this growth. Successful implementation of ERP requires a preparedness of our employees to accept change!

I would urge every one to actively acquire the knowledge of how to work with the new system and take full advantages of the training program provided by the project.

As extra, E-Learning tools will be provided, for all those who wish tp practise on their time, at their pace, and focus on a specific subject. This is an opportunity to enhance individual skills as well as GASCO’s business.

- Cyrilles Huijsmans

Assistant General Manager (Operations)

Memories

17ERP PIR