Business Process Group Field Ticket Project Overview - … · Business Process Group Field Ticket Project Overview ... Schlumberger: Supplier Price Issues and Complex ... Source:

James Thompson, Business Process ConsultantSupply Chain Strategy and Technology

Business Process GroupField Ticket Project Overview

June 9, 20161

Agenda

Field Ticket Overview Key Finding and Recommendations Next Steps ConocoPhillips Initiatives

2

Field Ticket Project Overview

Field Ticket Project Problem Statement

Manual, paper-based and legacy processes

Massive amounts of transactional volumes exchange

Supplier spends excessive time driving to/from field offices for signatures

Overpayment/coding errors (joint venture audit issues, and adjustments)

Lack of real-time knowledge of activities or expenditures

4

Field Ticket Current State (Paper Delivery)

What do 15,000 tickets look like? You want me to find ticket #675321?

6

https://spcl48.cop.net/dept/cafdmpm/Shared%20Documents/Forms/AllItems.aspx?RootFolder=/sites/FDMprojects/Shared%20Documents/2013_Projects/FDM201302_Run_Ticket_Scanning/Pics/Videos&View=%7BB97589B7-E5CA-4FCA-BA7A-933A3BA43D13%7D

Goal of Project

Gain community adoption of the PIDX Field Ticket Schema by providing a best practice overview of the field ticket process for operators and suppliers.

This would allow the ability to successfully integrate field ticket data points into the standard PIDX Field Ticket Schema, along with driving technology in the industry.

Project started in January 2016

7

Supplier\Operator\Marketplace Collaboration

6/24/20168

Best Practice Area Finding Business Group Contact

Process Flow - Upfront POs John Stukes - OFS Portal Amy Nguyen - OFS Portal

Process Flow - Via Call-Off John Stukes - OFS Portal Amy Nguyen - OFS Portal

Invoice Coding ErrorsElena Dumitrascu - CortexBryan Fusilier - Aristotle's Alexander'sDarren Ebanks - Schlumberger

Field Ticket Integration with Drilling Software Christopher Hebert - (Aristotle's Alexander's)

Unmanned Location Field TicketsJean-Pierre Foehn - AmaltoBryan Pederson - AmaltoRick Conner - Schlumberger

Supplier Price Issues and Complex ServicesJohn Stukes - OFS Portal Amy Nguyen - OFS PortalTerry Thomas/Darrin Eubanks - Schlumberger

Source: PIDX Business Process Group Field Ticket Project

Field Ticket Participating Companies

6/24/20169 Source: PIDX Business Process Group Field Ticket Project

Key Finding and Recommendations

June 24, 2016

Field Ticket Project Key Finding

Research reveals disjointed and manual processes Continues to be a manual paper process

Leads to increase cycle time for payment to suppliers Leads delays of expenses results on operators financials

Service Call-offs continues to be the standard process Data input in drilling software continues to manual Field personnel not willing to adapt to technology Purchase Order Use is limited

Results in an increase of invoice coding errors Increase in invoice and field ticket processing time

June 24, 201611 Source: PIDX Business Process Group Field Ticket Project

Field Ticket Project Recommendations

Leverage Technology B2B Collaboration

Increase purchase order use Supplier\Operator Price Sheet Operator Coding Data Exchange. i.e. AFE, Project Number, Well

description, etc. Mobility Internet of Things, iOT

Reduce and/or eliminate paper field ticket Operators educate field personnel the importance of proper coding

June 24, 201612 Source: PIDX Business Process Group Field Ticket Project

Field Ticket Next Steps

June 24, 2016

Next Steps

May to December 2016

Phase 2 Developed guidance on the following challenges identified in phase 1 and measure results.

Socialize PIDX Activities

Monitor Suppliers/Operators/Marketplace Collaborations

Operator \ Supplier Data Exchange (POs, Coding Cheat Sheet) Generic end to end process flow Capture field ticket data fields

Drilling Software Field Ticket Integration Generic end to end process flow Capture field data fields

Technology Opportunities Explore Mobility Explore iOT solutions

June 24, 201614

ConocoPhillips Initiatives

June 24, 2016

Overview

16

Coding Exchange \Validation

Drilling Software

Integration

Supplier Marketplace Collaboration

Procurement Automation

Explore Paperless

Field Ticket

Close Missing Ticket Gap Reduce Coding Errors Reduce trucking cost Validate Volume Delivered or

Removed Increase Procurement

Efficiency

Data Coding Exchange (To reduce invoice errors)

17 Source: PIDX Business Process Group Field Ticket Project

800

600

200

Pool

Field \ Run Ticket Overview

One data set for all Portal based cloud solution Upfront data checking

Mobile apps Electronic run tickets Streamlined reconciliations Enhances process controls

Electronic Field Ticketing

19

ShipXpress

Sites with Tanks

Missing Ticket Exception

SCADA

HaulRequests

Tank Haul Prediction

ToolIOC

TransporterSystem

TicketCapture

AvocetTicketData

TicketData

Tickets

TankLevels

(SCADA)

Tank Levels

End of Month Closing Process

Tickets

Destination Facility Ticket Capture

Tank Levels

Advantages of Electronic Ticketing Eliminates paper tickets Shared data set for all Streamlined reconciliations Upfront data checking Reliable Timestamp Enhances process controls Reduces replacement ticket churn Enables near-daily processes Visibility of portal-based cloud solution Reduce trucking cost via metrics Mobile apps

Marketplace Provider

BI Analytics Missing Tickets

IInternalDatabas

e

Leveraging IoTs and cloud integration to improve field ticketing

Service Request

Field Ticketdata

CodedField Ticket

ApprovedField Ticket

Invoice

Process:1/ Service request (IoT sensors)2/ Field ticket (mobile)3/ Invoice4/ Payment

Service Provider

Producer

Unmanned location

Source: PIDX Business Process Group Field Ticket Project

Questions

June 24, 2016

Appendix (Business Process Meeting)

June 24, 2016

Plan work/ schedule services

Perform Service(s

)

Receive Signed FT w/

coding

Confirm FT

PO = Purchase OrderFT = Field TicketINV = Invoice

Create PO/

Request for

Service

Confirm Scope

PIDX XML INV/

FT data & attachment

Pay invoice

Receive Payment

Update system w/ FT data & validate coding

Submit INV w/ PO coding data

elements & signed FT

Receive data to AP

Review & App?

N

Y

Re-verify INV

INV Rate &Price Validation

Drilling / INV details or line item details

Man

ually

don

e

Man

ually

don

e

Man

ually

don

e

Purchase Order

Mar

ketp

lace

If received FT copy, store locally or update internal

system

Receive/Pass approved

INV response

Receive Respons

e

Confirm Scope

Present FT for job

confirmation

On-site Service (FT) Validation

Man

ually

don

e

Review FT

Supp

lier

Ope

rato

r

Receive data to DS

Source: PIDX Business Process Group Field Ticket Project

Field Ticket Process Flow Overview Purchase Order

Plan work/ schedule services

Perform Service(s

)

Receive Signed FT w/

coding

Confirm FT

PO = Purchase OrderFT = Field TicketINV = Invoice

Call-off/Request

for Service

Confirm Scope

PIDX XML INV/

FT data & attachment

Pay invoice

Receive Payment

Update system w/ FT data & validate coding

Submit INV w/ PO coding data

elements & signed FT

Receive data to AP

Review & App?

N

Y

Re-verify INV

INV Rate &Price Validation

Drilling / INV details or line item details

Man

ually

don

e

Man

ually

don

e

Man

ually

don

e

Mar

ketp

lace

If received FT copy, store locally or update internal

system

Receive/Pass approved

INV response

Receive Respons

e

Confirm Scope

Present FT for job

confirmation

On-site Service (FT) Validation

Man

ually

don

e

Review FT

Supp

lier

Ope

rato

r

Receive data to DS

Source: PIDX Business Process Group Field Ticket Project

Field Ticket Process Flow Overview Call-Off

Data Elements Validation (Pre-Field Ticket Process)

Planning Schedulin

g

MK

Supp

lier

Ope

rato

r

Receive data

elements (.xlsx or

csv)

ERP

Project Mgmt

Compile data

Receive Data file

Convert data to

PIDX XML

DE = Data elementsMK = Marketplace (Operator)PIDX XML = previously defined schema if available?

Send data

elements file

DrillingSoftware

Supplier

access to MK?

Y

N

Convert data to

PIDX XML

Validate data file

Send PIDX XML to

Supplier

Via

Inte

grat

ion

orM

anua

l

Leverage existing PIDX XML data?

Leverage existing PIDX XML data?

Confirm/ Send

notification

DataDiscren

cy?

N

Y

Send PIDX XML to

Supplier

Receive confirmatio

n

Validate data

Send notification

Data Elements Validation (Pre-Field Ticket) Process Proposed

Send fromPlanning

Scheduling

MP

Ope

rato

r

Send data from ERP

Procurement

Send data from Project

Mgmt

Receive data file

Send data file

FT = Field TicketINV = InvoiceMP = Marketplace (OPER)OPER = OperatorRESP = ResponseSUPP = Supplier

Receive/ Validate data file

Store data for INV

validation

Compile/ map data elements

Share data w/

Field & Operation

Source: PIDX Business Process Group Field Ticket Project

Data Elements Validation (Pre-Field Ticket) Process Proposed

Proposed list of data elements API# (US) API# equivalent (outside US)? PO# / WO#

MP/Operator map (cross-reference) all remaining data elements

AFE Supplier ID Approver Reviewer Contract# or/and OLA# GL Account

Cost Objects & Activity/Op WBS Element Network Network Activity Cost Center Plant Code

Drilling Software Data (sub process) ProposedM

PSu

pplie

rO

pera

tor

Receive/ Send eFT data file

Receive Signed FT eFT?

Y

N DS = Drilling SoftwareeFT = electronic Field TicketMP = Marketplace (OPER)OPER = OperatorSUPP = Supplier

Create/ Send INV to MP or

OPER

Receive eFT data

Access to MP?

N

Send eFT data

Update DS w/ data

Y

Via

Inte

grat

ion

Job complete

d

Store data file

Finding and Recommendations

June 24, 2016

Field Ticket Coding ErrorsOpportunities and Challenges

6/24/201630

Opportunity

Invoice Coding Errors are a problem across the industry. The issue

causes longer time to pay for Suppliers and inefficient use of time for

the Operator in the AP department disputing invoices over incorrect

data.

By reducing Invoice Coding Errors, Suppliers and Operators can gain

efficiencies in the invoicing process. Both parties are willing to

participate in a solution to simplify the process of transferring

accounting codes across all documents in the transaction. If the issue

is addressed in the Field Ticket, it corrects itself in the invoicing

process.

June 24, 201631

Business Value

Reduce costs of manual validation of accounting codes

Reduce reworks from Operator AP and Supplier AR

Reduce Days Sales Outstanding for Suppliers

Potential early pay discounts for Operator

Reduce Supplier cost to maintain competitive pricing

June 24, 201632

Challenges to be addressed to succeed

Effectively share correct accounting codes with Supplier Eliminate hand written data transfer of accounting data

(stamps, fields on paper Field Ticket, etc.) Proactively insure Supplier has the correct data Establish processes for Suppliers to follow when missing critical

data Remove the responsibility of maintaining this data from field

level personnel

June 24, 201633

Field Ticket Integration with Drilling Software

6/24/201634

Opportunity

Field Ticket data is manually approved and keyed into Drilling Software by Operator Company Reps from paper field tickets

provided by Suppliers. This is an inefficient and error prone process

which introduces delays in Safety, Cost, and Performance metrics

management.

Supplier Field Ticketing data and approval should be integrated with Operator Drilling Software in near real-time through a PIDX standards

based schema. This will facilitate the exchange of ticketing data

between Suppliers and Operators providing operational efficiencies.

June 24, 201635

Business Value

Reduce costs of manual keying of field ticketing data by Company Reps through data integration

Near real-time visibility into Field Spend and AFE management Better insights into drilling activities Operational performance improvements Proactively monitor and manage Supplier Operational, Safety, Cost,

and Performance metrics

Reduce Supplier manual reporting costs Reduce stand-by charges PIDX standard ticketing interfaces supporting all third parties

June 24, 201636

Challenges to be addressed to succeed

Map current processes Wells, AFE, supplier, and approval management Capture additional field data beyond field tickets Define coding and costing master data sources Price, Catalog, and Coding validation during import Determine which Company Reps can approve Associate tickets to right Well/AFE/GL after approval Address paper suppliers

June 24, 201637

Unmanned Location Field Tickets

6/24/201638

Challenges to be addressed to succeed

Getting the field ticket approved Getting the right coding But even more challenging (no company man onsite- large volume of

transactions in some cases) ID of the well and location could be a problem Service request is based on either: Routine maintenance (fluid hauling) Emergency phone call associated or not to blanket order

June 24, 201639

Challenges to be addressed to succeed

Getting the field ticket approved Getting the right coding But even more challenging (no company man onsite- large volume of

transactions in some cases) ID of the well and location could be a problem Service request is based on either: Routine maintenance (fluid hauling) Emergency phone call associated or not to blanket order

June 24, 201640

Challenges to be addressed to succeed

Getting the field ticket approved Getting the right coding But even more challenging (no company man onsite- large volume of

transactions in some cases) ID of the well and location could be a problem Service request is based on either: Routine maintenance (fluid hauling) Emergency phone call associated or not to blanket order

June 24, 201641

Improving the process by deploying technology in phases

Phase 3: devices in the field to capture asset ID NFC, bar code, RFID readers capture asset ID, location and time onsite Coding is automatically generated based on these elements Enrichment of the field ticket and the invoice via a cloud based solution

Phase 4: IoT devices Service request is triggered directly by the sensors and sent to the service

company

June 24, 201642

Improving the process by deploying technology in phases

Phase 1: coding (PO#, AFE #, etc) is transmitted ahead of the job by the operator

by emails or via a portal Phase 2 : Collaborative Field ticket portal between vendors and

operators Field ticket is either keyed in or uploaded or B2B transmitted to a

portal by a vendor then reviewed and coded by the operator

June 24, 201643

The long term vision

Service Request

Field Ticketdata

CodedField Ticket

ApprovedField Ticket

Invoice

Process:1/ Service Request (IoT sensors)2/ Field ticket (mobile)3/ Invoice4/ Payment

Service Provider

Producer

Payment

Unmanned location

Supplier Price Issues and Complex Services

6/24/201645

Supplier Price Challenges & Complex Services

Invoices get rejected due to wrong price for each line item (system does not check entire invoice and send list of errors at one time)

Supplier not knowing of price changes until invoices get rejected Operator compares invoice pricing to FT pricing Supplier has no visibility of when operator approves price sheet Zero price items (complex pricing)

June 24, 201646

Next Steps

Supplier/Operator/Marketplace Collaboration Share Best Practice Success Stories

Pilot Projects to Measure Efficiency - (May to Dec 16) Explore Technology Options Purchase Orders - (Limit Service or Material) Master Data or Cheat Sheet Exchange Operator Email Alert of Invoice Coding Issues

June 24, 201647

Potential Benefits or Opportunities to Explore

Tangible Close Missing Ticket Gap Reduce Coding Errors Reduce trucking cost Validate Volume Delivered or Removed Increase Procurement Efficiency

Touchless process and reduction of coding errors

In-Tangible Enhance planning and scheduling Metrics to manage haulers (demurrage, mileage, time, etc.) Eliminate deliveries to unauthorized disposals Potential litigation or fines in event of incident Validation of load volumes

Auto compare SCADA volumes to ticket volumes and create exceptions

48

Business Process GroupField Ticket Project OverviewAgendaField Ticket Project OverviewField Ticket Project Problem StatementField Ticket Current State (Paper Delivery)What do 15,000 tickets look like?Goal of ProjectSupplier\Operator\Marketplace CollaborationField Ticket Participating CompaniesKey Finding and RecommendationsField Ticket Project Key FindingField Ticket Project Recommendations Field Ticket Next StepsNext StepsConocoPhillips InitiativesOverview Data Coding Exchange (To reduce invoice errors)Slide Number 18Electronic Field Ticketing Leveraging IoTs and cloud integration to improve field ticketing QuestionsAppendix (Business Process Meeting)Slide Number 23Slide Number 24Data Elements Validation (Pre-Field Ticket Process)Data Elements Validation (Pre-Field Ticket) Process ProposedData Elements Validation (Pre-Field Ticket) Process ProposedDrilling Software Data (sub process) ProposedFinding and RecommendationsField Ticket Coding ErrorsOpportunities and ChallengesOpportunityBusiness ValueChallenges to be addressed to succeedField Ticket Integration with Drilling SoftwareOpportunityBusiness ValueChallenges to be addressed to succeedUnmanned Location Field TicketsChallenges to be addressed to succeedChallenges to be addressed to succeedChallenges to be addressed to succeedImproving the process by deploying technology in phases Improving the process by deploying technology in phases The long term visionSupplier Price Issues and Complex ServicesSupplier Price Challenges & Complex Services Next Steps Potential Benefits or Opportunities to Explore