Our Understanding of the Study Objective is…
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Our Objective for Today’s Q&A Session is... Clarify our understanding of the project PowerPoint PPT Presentation


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Our Understanding of the Study Objective is… ExxonMobil is "disappointed" with their 1999 and YTD earnings from their downstream operations. You are interested in a 90-120 day "gap analysis" to compare your performance with your competitors and identify some high priority areas for improvement.

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Our Objective for Today’s Q&A Session is... Clarify our understanding of the project

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Our objective for today s q a session is clarify our understanding of the project

Our Understanding of the Study Objective is…

ExxonMobil is "disappointed" with their 1999 and YTD earnings from their downstream operations. You are interested in a 90-120 day "gap analysis" to compare your performance with your competitors and identify some high priority areas for improvement.

Agenda

Our Objective for Today’s Q&A Session is...

  • Clarify our understanding of the project

  • Discuss highlights of our approach

  • Introduce our core team

  • Discuss related PwC citations and capabilities

Our Outline for the Hour is...

  • Introductions & objective clarificationMarty Stetzer10 min

  • Putting your ROCE gap in perspectiveCliff Mangano10 min

  • The importance of competitive analysisKevin Waguespack10 min

  • Look forward to “sustain the gains”Brian Harry10 min

  • PwC related capabilitiesMarty Stetzer10 min

  • Summary & wrap-upExxonMobil5 min


Our objective for today s q a session is clarify our understanding of the project

Integrated Engagement Approach

Our approach combines benchmarking, modeling and scenario planning. . .

Week Ending

Ongoing

Stage

Assessment

ROCE Gap

Evaluation

Competitive Gap

Evaluation

“Sustaining

the Gains”

Management Review

Prioritze

Hot

Spots

Prioritze

Hot

Spots

Validate Objective(s) with Leadership

Catalogue XOM Data by ROCE & De-compose

Determine Quality of External Data

Define 3-5 Year Scenarios

Define Action Plans

Identify Competition

Define Joint Team “Guiding Principles”

Develop Additional Strategies to Improve Performance

Feedback and Balanced Scorecard

Set Next Stage Analysis Criteria

Set New Priorities

Review all Work to Date

Set New Catalogue -Shareholder Value

Build Matrix to Test Strategies against Scenarios

Define Implementation and Change Projects

Interpret XOM Analysis - Set scope

Construct Models:

Market

Technical

Financial

Suggest Other Measures

Create Detailed Workplan, Estimates & Resource Needs

Calculate True Gaps

Define skills transfer

Re-Define Gaps

Re-Define Gaps

Project Team 1

Get New XOM L/R Plan Assumptions

Relate XOM L/R Plan Assumptions

Project Team 2

Project Team 3

Communication & Knowledge Transfer

f.


Our objective for today s q a session is clarify our understanding of the project

Related Capabilities

  • The Global Benchmarks Alliance (GBA): - A confederation of 50+ multinational corporations, leverage and share knowledge on their financial and cost management processes and work with PwC to identify world class best practices which underpin superior financial performance. Industry participants include: Shell, BPAmoco, Total

  • Benchmarking: We initiated an industry consortium for multiple operational benchmarking studies in USA producing regions (Permian Basin, Offhsore Gulf of Mexico, Gulf Coast, Rocky Mountains and San Juan Basin). Studies focused on upstream operations, including production, cost, personnel, production replacement, drilling and health, safety & environment.

  • Integrated Performance Management: W recently completed a Performance Improvement, Measurement and Management project at Mobil USA - upstream U.S. We were involved with helping finalize a Balanced Scorecard, develop specific measures for their business units and implement a data warehouse to aid in their decision analysis and investment process. We are currently involved with doing a similar project at Texaco, but in more detail concerning key performance drivers and specific measures at a fairly low level within the organization (foreman level). A similar project is underway at Oxy Chemical.


Our objective for today s q a session is clarify our understanding of the project

Related Capabilities

  • The Global Benchmarks Alliance (GBA): - A confederation of multinational corporations, facilitated by PricewaterhouseCoopers. Alliance members leverage and share knowledge on their financial and cost management processes and work with PricewaterhouseCoopers to identify world class best practices which underpin superior financial performance. More than 750 business sites representing 50 different countries and over 75 corporations have participated in the GBA. The GBA focuses on the organization of the finance function and major financial processes.

  • Benchmarking: We have completed multiple operational benchmarking studies in regions within the United States (Permian Basin, Offhsore Gulf of Mexico, Gulf Coast, Rocky Mountain Region and San Juan Basin). The most recent study was a few years ago. We did develop standardised study worksflows and schedules. We have not completed any study (the Permian Basin was the last) since calendar year 1998 (1997 operating results). The studies focused on upstream operations, including production, cost, personnel, production replacement, drilling and health, safety & environment.

  • Integrated Performance Management: W recently completed a Performance Improvement, Measurement and Management project at Mobil USA - upstream U.S. We were involved with helping finalize a Balanced Scorecard, develop specific measures for their business units and implement a data warehouse to aid in their decision analysis and investment process. We are currently involved with doing a similar project at Texaco, but in more detail concerning key performance drivers and specific measures at a fairly low level within the organization (foreman level). A similar project is underway at Oxy Chemical.


Our objective for today s q a session is clarify our understanding of the project

Martin C. Stetzer

Marty is a Managing Director in the global PricewaterhouseCoopers (PwC) energy practice, in Houston. He has over 10 years consulting experience with energy company management's in complex global engagements.

He came to PwC with 18 years of industry P&L experience with Esso Eastern, Superior Oil and Mobil. His downstream operations assignments included refining, supply, logistics and marketing in a wide variety of USA and international (Far East) locations

Marty is Practice Leader for the Supply Chain Management (SCM) services in the downstream. He knows the capabilities of the leading optimization software, developed thought leadership, presented at numerous industry SCM sessions and published two articles applying SCM techniques to improve performance of the downstream.

Representative engagements include:

  • Managed a re-engineering project covering the USA trading operation of Equiva. The primary objective was to define a world class, integrated front-middle-back office deal flow process for an operation handling over 7 MMBCD of crude & products.

  • Led a re-engineering supply chain project for a large merchant-refiner with refineries, terminals and extensive pipelines. Project redefined all processes downstream of the refinery: position management, scheduling, supply, exchanges, billing & collections

  • Conducted a benchmarking project for a USA oil industry purchasing organization committing $3.0 billion/yr. of project equipment, contracts and spare parts. Re-engineered business to streamline decision making and improve contracting effort.

    Publications:

    "Maximize competitive Advantage with a Supply Chain Vision" Hydrocarbon Processing, Feb, 1999 (co-author)

    "Beyond the Gate: A New Pacesetter Context for Profitability in Refining" Hart's Fuel & Technology, July 1998

    Marty has a BSME from the Kettering Institute in Michigan and an MBA from Carnegie Mellon in Pittsburgh.


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