Docstoc

Value Chain Lab primer-Bill Diggons-April 2011 - SPEGCS.org

Document Sample
Value Chain Lab primer-Bill Diggons-April 2011 - SPEGCS.org Powered By Docstoc
					Value Chain Lab® Methodology
Aligning operator & service company goals/objectives




Value Chain Lab® is a registered trade mark of Centric Performance
Value Chain – those entities and activities
involved in the design, production, marketing,
distribution and support of an organization’s
business and operational objectives.
                          Competitive Advantage, Michael Porter


Lab – a place providing opportunity for analysis
and practice.
                            Webster’s New Collegiate Dictionary
 DISTRIBUTION SYSTEMS       QUALITY
                            CONTROL



  PRODUCT DESIGN




SUPPLY CHAIN
MANAGEMENT     COOPERATIVE COMPETITION
                                         Bill Thomas
                                             Creator
                                         Value Chain Lab®
Anonymous Big Servco
            Service
Operator
           Company
                                              Service
 Operator
                                             Company



You’ve done a great job, but
we’re going to tender the next
project to get our costs down.

            We think we’ve earned a continuation of
            the contract or at least an opportunity to
            win a direct award. Why are you wasting
            your time and resources on a paperwork
            exercise that will have little bearing on
            the real project cost down the road?
                                            Service
 Operator
                                           Company



You’ve got to be the cheapest,
compliant and creative – you
are too passive. Be more
proactive and bring us your
best ideas.
                  We’re tired of being b*tch slapped
                  at the annual performance review.
                  Your return on capital employed is
                  double what we make and you still
                  want us to lower our prices?!
                                               Service
 Operator
                                              Company



They make no distinction between major new
projects with technology evaluated by impact on
NPV, IRR and ROCE and ongoing activity with
technology impact evaluated on local lifting cost,
and the risk posed to established plans, budgets
and targets.
  Our technology has lowered your total cost of
  operations. Your teams have the data to prove it
  but they won’t give us credit for it . . . you give us
  a spec and ask for a price and then complain
  when we can’t quantify our value and risk profile.
                                              Service
 Operator
                                             Company



Reverse auction
3 bids and buy or complex tenders
Long term contracts w/o escalators
Technical score cards not revealed
Commercial weighting not revealed
Win-win is double win for us
Refuse take or pay
                             Choose not to participate
                 Bid low and introduce surprises later
                Score cards not aligned with E&P KPIs
               Overly focused on commercial aspects
Perceptions impact performance



Perceptions are shaped by language



Future-based language transforms perceptions




              The Three Laws of Performance, S. Zaffron & D. Logan
   Operator




KNOW, not no




    Service
   Company
KNOW, not no
KNOW, not no
                             Operator View


   RPF/Bids/                            Contracting         Securing
                     Negotiating
    Tenders                               / Legal          Equipment
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________




      KPI                                                  Scheduling
                      Invoicing           Support
    Process                                                  Work
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
                        Service Company View

                       KPI and            Model
     Direct                                                 Securing
                        goal             business
    awards                                                 equipment
                       setting             case
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________




     Score                                                 Scheduling
                      Invoicing         Operations
    carding                                                  work
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
________________   ________________   ________________   ________________
                    Operator View


RPF/Bids/                  Contracting    Securing
            Negotiating
 Tenders                     / Legal     Equipment


  KPI                                    Scheduling
             Invoicing      Support
Process                                    Work



               Service Company View

             KPI and         Model
  Direct                                  Securing
              goal          business
 awards                                  equipment
             setting          case


  Score                                  Scheduling
             Invoicing     Operations
 carding                                   work
Pre-Lab Data Gathering
    and Preparation



   1-hr Facilitator
   Conference Call
                           Cross-boundary
                            Collaboration
         8-hr
   Value Chain Lab
                             Performance
                             Scorecarding




                            Technical Plan




                         Commercial Alignment
                                      Service
Operator
                                     Company




            ETDBW        ETDBW
           Score Card   Score Card
            Operator                               Servco


Identifies roadblocks                 Builds customer
that impede progress                  loyalty and allows us
and communications                    to earn more business
                                      through performance

   Lowers procurement                    Improves resource
   costs—less overhead                   utilization
   and time through
   better focus upfront

       Reduces operating                     Eliminates non-value
       costs since liability,                add activities to
       risk reduction and lost               reduce costs
       time are in scope

           Positions us to be first              Aligns our objectives
           to benefit from new                   with customer’s
           technologies,                         business drivers
           enhancements and
           service initiatives and
           resources
             Service
Operator
            Company




 Operator


 Service
Company
Beijing Office             London Office
Qittitut SinoVentures      Qittitut Consulting
1002 Everlast Plaza        15 Palace Place Mansions
No. 39 Anding Road,        Kensington Court
Chaoyang District          London W8 5BB UK
Beijing China 100029       +44 (79) 0991.5114
+86 (10) 6442 3605
                           Houston Office
Boston Office              Qittitut Consulting, LLC
Qittitut Consulting, LLC   1302 Waugh Drive, Suite 277
21 James Street            Houston TX 77019
Brookline MA 02446         USA
USA                        +1 (713) 240.7714
+1 (617) 316.7192
                           U.S. Switchboard
                           +1 (800) 362.8661             www.qittitut.com

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:7/4/2012
language:English
pages:24