Gasco erp book final03102011_pdf1

GASCO ERP PIR

مرحلة املراجعة بعد التطبيقPost Implementation Review

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.

GASCO 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.

Contents04 Executive Summary

07 ERP Project Journey

08 ERP Engagement Model

11 Milestones

12 ERP PIR Assessment Summary

16 GAP Analysis and Recommendations

25 ERP Achievements

26 Lessons Learned

27 ERP PIR Department Head Workshop

30 Glossary

Maximo ORACLE Financials ORACLE HCM

Dear Colleagues,

The ERP Project was a journey resulting from a strategy review completed in 2007, and we embarked on it, because we needed to strengthen our position as an undisputed leader in the gas processing field in the region. To complete the life cycle of the project, the PIR was initiated as a process to identify the areas requiring improvement.

Our vision and corporate values emphasize our drive to continuously improve. The PIR, our next step toward excellence, shows Gasco’s commitment to openness and transparency in our processes and culture. It ensures that critical functionality is smooth and streamlined, it guarantees maximum benefits to the organization. This booklet is a concentrated summary of the ERP journey, a brief and succinct look at our approach, deliverables and experience.

Best Regards,

Mohammed A. Sahoo Al-SuwaidiChief Executive Officer, GASCO

وتفضلوا بقبول وافر التقدير واالحترام،

محمد عبدالله بن ساحوه السويدي

الرئيس التنفيذي، جاسكو

POST IMPLEMENTATION

REVIEW

www.gasco.ae03 www.gasco.aewww.gasco.ae3

النمو

الفخرو

Executive Summary

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 learned 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. A combined effort of the PIR team and the experts was undertaken to conduct 376 online surveys, 44 face-to-face interviews and 32 workshops with key Management and end-users. The results revealed 73 issues that fell into technical, process and human categories, and in turn, recommendations were generated and divided into two main categories: business cases and quick win actions, of which 26 business cases and 33 quick win actions were found.

The first part of the assessment included 2 major deviations, 12 minor deviations, and 28 no deviations of planned vs. actual project objectives of Maximo, ORACLE HCM, ORACLE Financials and the Infrastructure subprojects. 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. Throughout these assessments, a list of Lessons Learned was created to highlight which lessons were missed or achieved.

Additionally, 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 (Custodi-ans) to monitor and control the initiatives, and the systems’ custodian focal points to formulate enhancement initiatives and to provide feedback on the success of these enhancements.

In the following pages, you will be taken on a journey of the ERP PIR that will exhibit the overall positive assessment of the project.

ERP PIR 4

نبذة موجزة

www.gasco.ae5

املجتمع

01The Journey

Engagement Model

ERP Project

Every day, GASCO processes 4,889,000,000 standard cubic feet of gas.

تقوم شركة أبو ظبي لصناعات الغاز احملدودة

)جاسكو( مبعاجلة 4,889,000,000 قدم قياسي

مكعب من الغاز يوميًا.

- ERP Project Initiation

- Analyze Project Performance

- Award External SME

- Face-to-Face Workshops /Surveys

- Document Achievements and

Lessons Learned

- Analyze / Verify Findings

- Design Improvement Program and

Engagement Model

- Present PIR to Management

- PIR Project closure

344 Online ERP Applica-tions End-Users Satisfaction

Surveys

29 Online ERP Project Members Satisfaction

Surveys

3 Online ERP Project Vendors

Satisfaction Surveys

32 Workshops with Maintenance, Commercial, Human Capability and Finance staff

44 Face-to-Face Interviews with SVP, VP & department heads from TS, CD, FM, HC & Plants

2011 PIR showed us how to capitalize on the added functionality of the system and how to use it to its greatest potential. The review proudly details the extensive efforts of the ERP project team and benefits achieved after years of hard work, dedication and commitment. I look forward to these systems providing increased utilization of data and optimization of maintenance operations. Thank you for the combined energy from HQ and Sites and the support that was provided to make this project a company-wide success.

Peter Verhulst, SVP (CS) ”

“

The introduction of the Engage-ment Model is a prime example of a Company coming together and collectively striving to meet its goal. The organization and execution of the model should be replicated and followed throughout all future relevant projects.

Marwan Al Hammadi, VP (TS)”

“

At a Glance Jan

Mar

Apr

May

Jun

Jul

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ERP Project Journey

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.

ERP Steering Committee

ERP Engagement Model

An Engagement Model was introduced to monitor the ERP PIR

recommendations implementation and to review and control the new

ERP initiatives.

ERP PIR 8

www.gasco.ae9

العمل الجامعي

02What Was Planned

Planned vs. Actual ERP PIR Assessment Summary

GASCO was the winner of the 2010 Sheikh Khalifa Diamond Excellence Award.

فازت شركة جاسكو بجائزة الشيخ خليفة

لالمتياز عن الفئة املاسية عام 2010

2007

Sept Apr May Mar Apr May Jun May Jun Jan Jun

2008 2010 2009 2011

Implementation Phase

Planned vs. Actual

Milestone

The ERP PIR assessment was divided into two main categories: The first part was an assessment of planned versus actual objectives, deliverables, scope, schedule, expenses and resources.

The above chart illustrates the assessment results of planned versus actual achieved project objectives for Maximo,

ORACLE HCM, ORACLE Financials and the Infrastructure subprojects.

Planned

Planned

Planned

Planned

Planned

Planned

Actual

Actual

Actual

Actual

Actual

Actual

GO Live-Drop 1 (ORACLE HCM)

Pre - Implementation Phase

GO Live-Drop 2 (Maximo & ORACLE Financials)

Post - Implementation Phase

Post - Implementation Review

Milestones

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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.

The second part of the review was to assess the effectiveness of existing ERP solutions and busi-ness process gaps against leading best practices for Maintenance, Commercial, Human Resource and Finance.

A Total of 73 issues were found, withthe issues falling into technical, process and human categories.

26 business cases and 33 quick win actions were generated as recommendations to bridge the gaps.

Maximo Upgrade

NO Deviations 10Minor Deviations 1Major Deviations 0

ORACLE FinancialsNO Deviations 9Minor Deviations 6 Major Deviations 2

ORACLE HCMNO Deviations s Minor Deviations 4 Major Deviations 0

TOTAL:28 NO Deviations

12 Minor Deviations2 Major Deviations

InfrastructureNO Deviations 4Minor Deviations 1 Major Deviations 0

“”

“”

We were happy to support HQ’s effort in this large-scale project and to see it fully aligned with the needs of the Plants. The results of the PIR identified how the new system can enhance our systems to assist our jobs even more.

Mahmoud Al Mazmi, VP (OMH), Buhasa Plant

The business objective, in terms of implementing an integrated ERP system, was achieved. The PIR helped to define the technical issues and recommended some ways to close these gaps and eliminate the deviations.

Abdulla Al Minhali, SVP (T)

ERP PIR Assessment Summary

ERP PIR 12

www.gasco.ae13

التحسينات املستمرة

GAP Analysis and Recommendations

03GASCO and ADNOC Distribution are leading the way to expand the use of Natural Gas for Vehicles (NGV). Natural gas is not toxic or corrosive and is cheaper than gasoline at the filling stations.

تقود شركتا جاسكو وأدنوك للتوزيع مبادرة توسيع

استخدام الغاز الطبيعي كوقود للسيارات. ويتميز

الغاز الطبيعي بأنه غير سام وال يسبب التآكل وهو

أرخص من البنزين في محطات التموين.

www.gasco.ae15

املهنية

النجاحو

The effectiveness of existing ERP solutions and business process gaps were assessed against leading best practices for Maintenance, Commercial, Human Resource and Finance.

This section consolidates all gaps identified during the workshops, project performance deviations and ORACLE Financials/HCM snag lists.

A strategy and project plan have been developed for the implementation of these recommendations.

6% Fair 12% Fair

Average

Fair5%

ORACLE FinancialsMaximo ORACLE HCM

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

Comparison

GAP Analysis and Recommendations

Average

Excellent68%

26%44%

Excellent44% 68%

Average27%

Excellent

ERP PIR 16

الثغرات والتوصيات

Maximo Maximo is slow from Plant Sites

Commercial Directory is not utilized comprehensively

Accuracy of data in Maximo

Maximo is not being used for HSE requirements

1

2

3

4

• 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

Gaps and Recommendations

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”“ 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

5

6

7

8

9

• Introduce comprehensive KPI to monitor supplier pre-qualification time

• Simplification of pre-qualification Process for Non Critical Categories

• Unification of Supplier pre-qualification 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


• Report Committee should formulate GASCO’S Reporting Strategy

The ERP PIR helped to discover and further define the Major Projects Group’s needs, including storing contracts, capturing commitments and identifying future inventory. Once this is accomplished, the benefits of the systems will be realized.

Abdul Aziz Al Ameri, SVP (P)

”


“ Throughout the PIR and the implementation of these advanced technological tools, it became evident that the increased amount of workflows have positively impacted and improved business processes. The end result has shown drastic improvements in efficiency.

We are committed to excel in all we do. With this and the long-term vision and prompt execution of our leadership, our continued corporate journey of excellence will be a successful one.

Adel Salem Alkaff, VP (CD)

ORACLE Financials

Delay in resolving technical issues

Delay in Month-End Period Closing

Cash Management Process is manual

Major Projects Commitments are not captured in System

1

2

3

4


• Conduct Regular Meetings with Finance Team


• 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 on 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

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Budgeting Process is not fully automated

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

Lack of Financials KPIs

5

6

7• Implement Oracle BI Applications and OBIEE

• Introduce financial KPIs according to IBM Best Practices

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

”


We at the Plants look forward to the continuous improvement that Maximo will provide to the Operations division.

Adel Bamardouf Al Amoodi, VP (OMA),

Asab Plant

Maximo is our essential tool in helping the decision-making process, leading to better allocation of resources and achieving our mission of asset management in line with operational and technical integrity standards.

Saeed Y. Al Ameri, VP (OMR),

Ruwais Plant

It is encouraging to know that the support and expertise of the IT division will enable Operations to meet our safety and maintenance objectives once the Maximo HSE Module is fully implemented.

Abdul Nasser Al Mughairbi, VP (OHB),

Habshan and Bab Plants

“

“

“

”

”

ORACLE HCM

Data Management & Quality Issues

Lack of Reliable Reporting

Limited Analytical Reporting

Oracle Competency Management not being used

1

2

• Conduct an Effective Awareness Program Targeting Oracle End-Users

• Data Validation / Check Points

3

4



• Implement and Deploy Business Intelligence Reporting Tool


• 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

www.gasco.ae21

Learning Management not leveragedPerformance Appraisal Management not utilized

Urgent Payments outside Payroll

Contractual Staff Salary Payment Process

Paper-based Expense Reimbursement• Automate Expense Reimbursement

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

5

6

7

8

9

• Integrated Talent Management Framework

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

• Contractual Staff Payroll to be streamlined via Oracle

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

”


”

“

Automated workflows, business process enhancements, coupled with new features and functionalities that reflect industry’s best practice were all very welcome in our division. The integration of ORACLE Financials with Hyperion Business Intelligence tool is expected to simplify the 2012 planning and budgeting process. We look forward to continual improvements and to leverage the capabilities of both ORACLE Financials and Hyperion to meet GASCO’s transformation needs.

Ahmed Al Beiti, VP (FM)”

The ERP PIR has helped us in identifying and bridging the gap between end users expectations and the actual project deliverables in order to meet Gasco Corporate objectives with respect to asset integrity, reliability and availability.

Abdul Raqeeb Al Haj, VP (OPL), Pipelines

From the Plants perspective, the ERP PIR was not even an option and we really appreci-ate the attention that was given to Operations and its specific needs. We are positive that the Maximo Maintenance system is central to our capability to deliver and will help us in the future to meet increasingly demanding objec-tives, not only in terms of performance but also integrity and HSE.

Alain Delaytermoz, SVP (O)

“

“

www.gasco.ae23

االلتزام بالتميز

Achievements Lessons Learned

04GASCO CEO, Mr. Mohammed A. Sahoo Al Suwaidi, won ADNOC’s HSE Champion Award in 2009 for his outstanding efforts in supporting HSE initiatives within GASCO and across Abu Dhabi.

فاز الرئيس التنفيذي لشركة جاسكو، السيد محمد عبد الله بن

ساحوه السويدي، بجائزة أدنوك للصحة والسالمة والبيئة عام 2009

نظرًا جلهوده اجلبارة في دعم مبادرات الصحة والسالمة والبيئة في

شركة جاسكو وعلى مستوى أبو ظبي.

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 honor 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 improvement in processing time and elimination of manual intervention.• Automated the Maximo Maintenance and Commercial processes. As a result, the processing time and procedure compliance was improved 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.• Full-time members spent 10,000+ additional working hours.

2010 IBM Maximo Supply Chain Best Practice AwardInnovationReturn on InvestmentEmpowering the User CommunityBest Practices

We learned many lessons throughout the PIR, which contributed to quality improvement of the project deliverables and overall implementation. This project gave us, as a company, an opportunity to reflect on which areas we should focus our efforts for the next large project that awaits us. We should continue to strive for improvement on the lessons we missed yet be extremely proud of the lessons that were achieved.

Rashed Al Shamsi, SVP (A)

A vital component of PIR’s success is the continued support we received from end users and senior management. With continuous improvement and business process enhancement being our major goals, we could not have undertaken a project of this caliber without everyone’s full assistance and collaboration.

Najim Al Romaithi, VP (IT)

”

“

”

“

www.gasco.ae25

اإلجنازات

“ With Gasco’s rapid growth, it has become essential to plan well and utilize all our resources effectively. The PIR has highlighted the importance of implementing the Oracle’s Talent Management Solution, as an available resource to address staff management process. Management of such process effectively and efficiently will lead to improvement of employee motivation and better preparation of staff to fill future positions.

Rashid Annoon, VP (HC) ”

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.

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.

TEAMWORK The dedicated ERP interface team to test the process from end-to-end point of

view contributed in minimizing the integration issues.

Grouping and allocating project members from business, IT, and external

vendors in one location increased team’s productivity.

MANAGEMENT Planning and simulating the ERP cut-off date more than 4 times minimized the

Go Live risks and improved the team readiness.

The ERP Systems deployment was smooth through the Soft & Safe Drops

approach, which increased the stability probability and minimized the culture shock.

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.

MISSEDERP EXPERIENCE No comprehensive business cases were developed for the ERP Project. The business cases 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 site visits need to be conducted to ensure the implementer capabilities, to collect lessons learned 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.

4 3

3232

3Were the project objectives achieved?

31

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

successful in your view?

Overall did you think the ERP was a succes?

no yes

“ERP PIR 26

Lessons Learned ERP Achievementsالدروس املستقاة

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.

23 JUNE 2011

PIR Department Head Workshop

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Wor

ksho

p Lessons Learned

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 continuous 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,

Mohammed A. Sahoo Al-SuwaidiChief Executive Officer, GASCO

09 March 2009

Mem

ories

وتفضلوا بقبول وافر التقدير واالحترام،

محمد عبدالله بن ساحوه السويدي

الرئيس التنفيذي، جاسكو

-

A BusinessDrivenProject

الثقة

-

GLOSSARY

ERP – Enterprise Resource Planning, a system that is used to manage and coordinate all the resources, information and functions of a business.

Go Live Drop – the date on which a newly implemented system and its related components and functionalities become live and ready for use and the old system is no longer utilized.

Maximo – an IBM Enterprise Asset Management system used by Gasco for managing its Commercial and Plant Maintenance areas.

ORACLE Financials – an Oracle system used by the Finance Division to automate and streamline the financial business processes.

ORACLE HCM – a Human Capital Management system developed by Oracle, used by the Human Capability Division to manage HR, workforce and talent management functions.

PIR – Post Implementation Review

SME – subject matter expert

Printed October 2011

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