Our Understanding of the Study Objective is…
This presentation is the property of its rightful owner.
Sponsored Links
1 / 5

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


  • 88 Views
  • Uploaded on
  • Presentation posted in: General

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.

Download Presentation

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

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


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

B

O

P

C

Project Team 1

Project Team 2

Project Team 3

Integrated Engagement Approach

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

Week Ending

1

3

9

12

13

ROCE Gap

Evaluation

Competitive Gap

Evaluation

“Sustaining

the Gains”

Stage:

Assessment

Ongoing

ManagementReview

F

K

A

Prioritze

Hot

Spots

Prioritze

Hot

Spots

Validate Objective(s) with Leadership

Catalogue XOM Data by ROCE & De-compose

Determine Qualityof External Data

Define 3-5 Year Scenarios

Define Action Plans

Synthesize Results

G

IdentifyCompetition

Define Joint Team “Guiding Principles”

L

Develop Additional Strategies to Improve Performance

Set Next Stage Analysis Criteria

Feedback and Balanced Scorecard

Review all Work to Date

H

Set New Priorities

Set New Catalogue -Shareholder Value

M

Q

Build Matrix to Test Strategies against Scenarios

Define Implementation and Change Projects

I

Interpret XOM Analysis - Set scope

  • Construct Models:

  • Market

  • Technical

  • Financial

D

Suggest Other Measures

Create Detailed Workplan, Estimates & Resource Needs

E

N

J

Calculate True Gaps

Define skills transfer

Re-Define Gaps

Re-Define Gaps

Get New XOM L/R Plan Assumptions

Relate XOM L/R Plan Assumptions

R

Communication & Knowledge Transfer


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

Related Capabilities

Management and shareholder reporting is a PwC core competency. Additionally, we can provide...

  • Integrated Performance Management: We recently completed a Performance Improvement, Measurement and Management project at Mobil upstream USA. We helped finalize a Balanced Scorecard, develop specific measures for the business units and implement a data warehouse to aid in their decision analysis and investment process. We are currently doing a similar project at Texaco and at Oxy Chemical.

  • 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.

  • C-Store Performance: PwC recently completed the NACS (National Association of Convenience Stores) future study for the c-store industry though and beyond 2005. The study provided an assessment of the future forces shaping the outlook for: key product categories, resource markets, consumer markets, competitive trends, the economic environment, the regulatory environment, and the technological environment. It then developed a series of planning premises for industry executives. Study findings were presented at the NACS Leadership Assembly in February 2000.


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

Related Capabilities

Management and shareholder reporting is a PwC core competency. Additionally, we can provide...

  • Portfolio (Long Term) Risk Evaluation: The PwC Energy Risk Management practice has applied sophisticated quantitative tools and models to help energy clients optimize the tradeoff between operational efficiencies and optionality within a clients asset base. The PwC approach supporting this analysis is called Simulated Strategies, a methodology we are currently using to analyze another energy company's long term capital investment decisions. The Simulated Strategies SM for Operations initiative employees Monte Carlo simulation in developing probability-based distributions of financial performance at the operating asset level (i.e., refineries, petrochemical plants, etc.). These base case profiles are then be used to simulate the impact of alternative joint operating/financial strategies on asset performance, with respect to both risk and return.

  • Merger Benefit Realization: - Daimler Chrysler… Unilever-Best Foods

  • Energy Innovation Center:

  • Working with Experts (SIR Privatization Strategy): PwC developed a diagnostic evaluation and privatisation strategy for the SIR refiner in Cote d' Ivoire. Cote d'Ivoire, the West African republic wanted to sell its 47% share of the 54,000 BCD refinery. To win the work we leveraged our respected refinery valuation services group and teamed up with Muse Stancil, a respected international energy consulting firm with offices in Dallas, Los Angeles and London. We were also be assisted on the project by other outside technical resources.


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.


  • Login