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1 Saudi Aramco © Copyright 2015, Saudi Aramco. All rights reserved.
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Saudi Aramco
© Copyright 2015, Saudi Aramco. All rights reserved.
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Saudi Aramco Journey to ExcellenceSa
fety
Envi
ron
me
nt
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Re
liab
ility
Saudi Aramco Journey to Excellence
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Exce
llen
ceSaudi Aramco Journey to Excellence
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Challenges
Our Strengths
chieve & ustain
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Use Best Practices and Processes
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Outline
OE Background
Description of OE Components
OE Deployment at Saudi Aramco
Targets & Implementation Plan
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Engaging/catalyzing the Kingdom
Competitive Saudi energy sector
Kingdom's domestic energy
ATP initiatives
Delivering an agile, flexible & efficient organization.
Optimizing our processes
Strategy development and corporate decision making
Business process streamlining
Planning & budgeting
Operational excellence
Capital efficiency
Business performancemeasurement & management
Growing our business
Chemicals
Refining & marketing
Crude mix productionstrategy
Unconventional gas
Distribution, Retail, & Branding
Operational excellence
Building our capabilities
Technology
Leadership engine
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Operational Excellence
Safety Environment Reliability EfficiencyCost/
Profitability
SA Operational Excellence
Others(Enabling Elemts)
Overarching umbrella for company Focus Areas and Enabling Elements
Drives focus on what matters most while ensuring sustainability
Provides structured approach to Achieve and Sustain Excellence
Processes Practices Methods Tools Technologies Capabilities
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Impact
Standardized & Programmatic Implementation
Operational
Excellence
Operational
Efficiency
Competitiveness
Requirements
Legal & Regulatory
Compliance
Risk
Mitigation
Prevent Catastrophic
Losses
Mitigate Value Destruction
Sustain Competitive
Advantage
Value Creation
Operational Excellence Evolution
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0
10
20
30
40
50
60
70
80
90
100%
OperatingIncome
91%
43%
Sales
32%
69%
Total Assets
37%
79%
Return onSales
0%8%
Return onAsset
6%9%
Firms with Structured OEExcellent Firms with no Structured OE
Companies adopting structured OE are gaining almost double benefits compared to other successful companies with no structured OE
Benefits of OE
Ref: Kevin B. Hendricks, Vinod R. Singhal
Sustain Performance
Improvements
Enhance Knowledge
Sharing
Capture Best Practices
Standardize Pockets of Excellence
Unleash Innate Potential
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OE is One of the Top Global Challenges
Source: The Conference Board, CEO Challenge, 2013
Human Capital
Operational Excellence
Innovation
Customer Relations
Global Political/Economical Risk
Government Regulations
Global Expansion
Corporate Brand & Reputation
Sustainability
Trust in Business
0.0 0.5 1.0 2.5 3.02.01.5
CompanyBenefits $Billion/ Year
Company A 1.5
Company B 1.0
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Outline
OE Background
Description of OE Components
OE Deployment at Saudi Aramco
Targets & Implementation Plan
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SA Employees
Conducted 8
workshops
covering all AA’s
and YLAB
Thought Leaders
Contacted a
number of OE
thought leaders
Literature
Reviewed 50+ OE
related
literatures
Mgt Interviews
Interviewed all
Corporate Mgt &
Exec Mgt
Corporate
Management
Executive
Management
Other
Management
Members
Other Companies
Visited Major
OIL/GAS
companies, JVs
and others
Operational Excellence Data Gathering
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OE Model
Operational Excellence Components
OE Implementation Guide
OE Assessment
OE GovernanceFacilitator & Coordinator
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OE Model
OE Implementation Guide
OE Assessment
OE Governance
OE GovernanceOE AssessmentOE Model OE Implementation Guide
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OE Implementation GuideOE Model OE Assessment OE Governance
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HSE
ReliabilityEfficiency
Cost & Profitability
CustomerFocus
HumanResources
AssetManagement
ProcessManagement
FinancialResources
ExternalServices
Policies & Strategies
Information& DocumentManagement
ChangeManagement
RiskManagement
Innovation,Learning &Continuous
Impv.
CorporateSocial
Responsibility
Leadership &
Accountability
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
Expectations
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Processes and Best Practices Consistency
Implementation approaches Culture, mindsets and behaviors
Implementation tools
OE Implementation GuideOE Model OE Assessment OE Governance
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Review of Performance(Results)
Review of Processes’ Implementation (Sustainability)
(Focus Areas) (Enabling Elements)
ExcellentMatureCommitted to
ExcellenceNeeds Improvement
0.0 1.0 2.0 3.0 4.0
1st
Level
2nd
Level
3rd
Level
4th
Level
Level of Excellence
OE Implementation GuideOE Model OE Assessment OE Governance
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Saudi Aramco Operational Excellence Department
OE Implementation GuideOE Model OE Assessment Guide OE Governance
Permanent Engine
OE Facilitator & Coordinator
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Table of Content
OE Background
Description of OE Components
OE Deployment at Saudi Aramco
Targets & Implementation Plan
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OE Deployment at Saudi Aramco
Identify Improvements Opportunities
Conduct Assessment
& Gap Analysis
Develop Specific
Processes
Assign Required Resources
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Introduce OE to Admin Areas
Train OE TeamsCustomize OE
ManualContinue OE rollout
Admin Area
Dept. 1
Dept. 2
Dept. 3
Wave 1 Wave 2 Wave 3
OE Deployment at Saudi Aramco
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Corporate Mgt. Systems, GIs,
Procedures, etc.
Site Specific Processes
Clear Ownership and Responsibilities
Alignment with KPIs
OE Processes
Min. OE Req’t. Commitment to OE Improvement Opp.
Plan
DoCheck
Adjust
Customize OE Manual
Train OE Teams
Introduce OE to Admin Areas
Continue OE rollout
OE Deployment at Saudi Aramco
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• 2015 - Departments will conduct Self-Assessment Annually
• 2016 - OED will lead the Integrated Corporate OE Assessments
Integrated OE Assessments
Piloted Assessors Training Course
• Piloted OE Assessor Training Class (5 days)
• Enhanced the training material based on input from Corporate Entities SMEs
Building Operational Excellence Assessors Capabilities
Prepared Assessor Training Course
• Internationally recognized OE Licensed Training Provider
• Prepared customized training material to meet SA requirements
Commenced Assessor Training
• International OE Assessor Certification
• Targeting to certify more than 600 assessors from all SA departments
OE Deployment at Saudi Aramco
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Outline
OE Background
Description of OE Components
OE Deployment at Saudi Aramco
Targets & Way Foreword
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OE Targets
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OE Targets
100% of SA organizations implemented OE processes 100% of SA organizations completed OE assessment2015
When What
90% or more of SA organizations achieved top OE level (i.e. Excellent) 2020
Implementation is underway through structured implementation Plan
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Our Quest for Operational Excellence
Excellence is Integral Part of Saudi Aramco’s DNA and Core Values
OE will Improve SA Agility and Efficiency
OE Culture must Grow and Strengthen
OE is the Vehicle for Achieving Higher Performance Levels
In 2020, Saudi Aramco is the world's leading integrated energy andchemicals company, focused on maximizing its income, facilitating thesustainable and diversified expansion of the Kingdom's economy, andenabling a globally competitive and vibrant Saudi energy sector.
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Saudi Aramco Operational Excellence
