SAP IS-Oil Introduction
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Training Agenda
Day Introduction to IS-Oil 1
Module
Marketing, Contracts, Order Entry-MCOE Marketing, Accounting , Pricing - MAP
Hydrocarbon Product Management - HPM Transportation & Distribution - TD
Tariff , Duties & Permits - TDP
Exchanges - EHG
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Objective
Introduction on SAP IS-Oil. IS-Oil key Functionality Overview.
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Industry Value Chain
Crude Storage
Refining
Product Storage
Primary Transport
Secondary Transport
Exploration
Retail Stations
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Industry Segmentation
Upstream Exploration and production of crude oil, including the movement of crude oil from its source to the refineries
Downstream Petroleum operations after crude production, including the movement of oil from the refineries to the terminals and then to the end user
Oil & Gas Industry Upstream Exploration & Production Refining Downstream Marketing & Distribution
Wholesale
Retail
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Crude Oil Characteristics
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Whats in a barrel of crude Oil
Refineries upgrade crude into high value products
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Refinery basic concepts
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What is IS-Oil?
Industry Solution for the Oil Industry Standard suite of integrated systems with industry-specific enhancements Set of interfaces to enable links to external systems
Interface to API (American Petroleum Institute) C-Code tables Interface to Terminal Automation system Interface to Transportation planning
Built as a global product with regional and country-specific functionality
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Why IS-Oil?
Industry undergoing significant re-engineering. Desire for an integrated solution.
Industry can "share" in the development costs.
Don't want to build and maintain massive systems into the future. Industry continuously improving IT solutions to manage their value chain.
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Mission of IS-Oil
To provide a global solution for the oil industry, developed in conjunction with industry partners, which is flexible, fully supported, and integrates functions and information for the mainline business processes in the supply chain.
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IS-Oil Approach
SAP had the following approach to develop the Industry Solution which is now very well established in the Industry. Involving active customers from the oil industry. Set up of SAP Oil Development Centre. Develop an overview of the relevant business area. Identify best business practices specific to the oil industry. Reproduce the SAP core business functions in oil business processes. Identify necessary additional functions.
Design development, Realization, Quality assurance.
Launch of Industry template . Transition into further SAP environments
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IS-Oil evolution
ITS
Easy Web Transactions
Statoil B2B
Customer developments
Joint process definition JV accounting
Downstream Industry template
Industry Exchange
Exploration & Production
Standardized Processes >500 Customers >500.000 my SAP Oil&Gas Users
250 100 customers 50 customers 20 Mobil customers customers Hamburg
Joint process definition Downstream
Exchange Recon Business Service
Establish Establish R/3 Oil R/2 Oil consortium consortium
Global Industry Advisory Council
400+ customers
198 3
1990
1995
2000
2001
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Oil & Gas Industry Supply Chain
Exploration & Supply & Refining & Production Transmission Manufacturing Producer Crude Distributor Refiner
Primary Distribution Distributor
Marketing & Sales Marketer
Secondary Distribution Distributor
Retailing
Retailer
Refined Products & LPG Lubricants Natural Gas Natural Gas
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SAP Solution for Oil & Gas Industry
mySAP SCM for the Oil & Gas Industry is a complete and comprehensive solution to cover the movement of bulk volumes throughout the supply chain network. It provides support for activities in all lines of business - crude, refined products & LPG, lubes, natural gas and chemicals.
Exploration & Supply & Refining & Production Transmission Manufacturing Producer Distributor Refiner
Primary Distribution Distributor
Marketing & Sales Marketer
Secondary Distribution Distributor
Retailing
Retailer
IS-Oil Upstream IS-Oil Downstream Supply Chain Management Traders & Schedulers Workbench
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High level Oil & Gas Process
Procurement / Exploration
Production
Distribution
Sales
Returns
Long Term Planning (Network Design)
PLANNING
Mid Term Planning ( Supply Network Planning)
Demand Planning
OPTIMIZATION
Purchase Planning
Production Planning & Detailed Scheduling
Allocation, Transport Planning & Vehicle Scheduling
Short Term Demand Planning
SCHEDULING
Processing of Purchase, Production, Inventory Management, Distribution, Sales & Return
EXECUTION/ OPERATIONS
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SAP Solution Landscape for Oil & Gas Industry
PLANNING/ OPTIMIZATION
SCHEDULING
EXECUTION/ OPERATIONS
APO
Demand Planning (DP)
TSW
Inventory and Replenishment planning
IS-Oil
Financials
APO- Advanced Planner & Optimizer
The areas of demand/supply planning and forecasting, as well as supply chain balancing and optimization are addressed in APO.
Collaborative Planning
Interfaces to external Trading Systems
Exchanges
TSW- Traders & Schedulers Workbench
TSW covers the whole range of business requirements for Inventory and Replenishment Planning , Scheduling (including the Distribution Schedule), Nomination Processing, Marine Berth Scheduling and Integration into Execution Processing, including Ticketing.
Supply Network Planning SNP
Scheduling
Contracts / Orders
Production Planning Detailed Scheduling Transport Planning & Vehicle Scheduling
Collaborative Nomination
Inventory
Ticketing and Event Handling
Movements
IS-OIL
SAP R/3 with IS-Oil Downstream covers the processes of order entry, contract management, inventory management, transport and movement execution.
Global Availability to Promise (ATP)
Integration to R/3 Process
Transport
Usage in specific business lines (e.g. chemicals, gas and lubes)
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IS-Oil Coverage of Industry Requirements
Industry-specific requirements addressed by IS-Oil
Generic business requirements covered by standard SAP
Company specific point solutions
Common Functionality for the World-wide Oil Industry
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Integration of IS-Oil
Client/server architecture Integrated solution
MM
Materials Mgmt
Comprehensive functionality
SD
Sales
FI
Financial Acctg.
Graphical user interface
CO AM
Asset Mgmt
Controlling
PP
Production Planning
Open system
QM
Quality Mgmt
R/3
PM
Plant Maint.
PS
Project System
Reference Model
Downstream
Upstream
WF
Workflow
HR
Human Resources
IS
Industry Solution
IS Oil
IS Publishing IS Banking
Enterprise Data Model Multinational use Distributed applications
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IS-Oil Solutions
Upstream
Exploration & Production
Downstream
Marketing & Retail
Addresses the business need during Oil Exploration, Field development, Production and Primary Transportation
Addresses the business need of Refineries, Primary Distribution, Terminal Management, Secondary Distribution, Marketing & Retailing
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IS-Oil Upstream Solutions
Joint Venture Accounting (JVA) : Offers the flexibility to provide a complete accounting system to meet the different reporting and business requirements that apply to joint venture operations during exploration and production. Production and Revenue Accounting (PRA) : To manage the volumetric allocation, ownership allocation, contractual allocation, and product balancing for national oil companies engaged in upstream production operations Production Sharing Accounting (PSA) : Supports the reporting requirements of oil Companies that operate under contractual arrangements with national governments.
Remote Logistics Management (RLM) : Support the supply of materials to production operations in remote locations, be they offshore or onshore
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IS-Oil Downstream Supply Chain Process
Gathering System Producer Contract Exchange Contract Supply Pipeline
Oil & Gas Production
Lubes Plant Refinery
Bulk Terminal Transfers, Sales, Purchases, Exchanges Bulk Terminal
Pipeline batches
Sales Contract
Exchange Contract Purchase Contract
Chemical Plant
Retail Stations
Commercial Customers
Sales Contract
Acquisition/ trading
Quotations Contracts Order Entry Pricing
Transport
Receipts / Deliveries Transit Losses / Gains Inventory Balances Purchases from Suppliers
Manufacturing
Inventory Balances Receipts / Deliveries Feedstock / Crude Purchases Finished Product Sales Production / Consumption Product Specifications Materials Planning
Storage/ Distribution
Receipts / Deliveries Sales / Purchases Scheduling of Deliveries Losses / Gains Planned Movements Inventory Forecasts Taxes
Marketing
Profit & Loss Analysis Sale to Customer Rebates / Pricing Customer Invoicing Retail Shipping Preplanning Export
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IS-Oil : Key Downstream Functionality
SAP Core
Acquire/ Trade
Transport
Manufacture
Store/ Distribute
Market
IS-Oil
MCOE HPM EXG TD MAP
Marketing Tariffs, Duties, Permits
Marketing, Contracts, Order Entry Hydrocarbon Product Management Exchange Handling
Transportation
Distribution
Accounting, Pricing
TDP
MRN
Marketing, Retail, Network
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IS-Oil : Key Downstream Functionality
MCOE - Marketing Contracts and Order Entry
Meets the requirements of the oil industry in the areas of fast order entry and contract processing.
HPM - Hydrocarbon Product Management
Covers Physical Inventory management of Oil products with Silo ( Tank ) management Functionality. Quantity Conversion Interface Functionality helps in converting Transaction quantity in to multiple Units of Measure using Petroleum measurement standards API /ASTM.
EXG Exchanges :
Contains functions for managing exchange agreements between Oil companies.
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IS-Oil : Key Downstream Functionality
TD - Transportation and Distribution
Covers the logistics activities related to Bulk movement of Oil Products.
MAP - Marketing Accounting Pricing
Covers the pricing requirements such as Formula & Average pricing for Oil products.
TDP - Tariffs, Duties, Permits
Provides functionality for calculating and posting excise duty for dutiable goods.
MRN - Marketing Retail Network
Provides functions for managing business locations such as service stations, depots and terminals
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Thank You
