The oil and gas industry is very asset intensive and any downtime can have a significant impact on an organisation’s bottom line. The maintenance of these assets is not only important from a productivity point of view but because of the significant health and safety implications of any failure.
A well defined process and fully integrated asset management solution will manage the risk and complexity associated with assets, enabling a detailed view of asset costs and where this cost can be reduced. It will also ensure the right people are in the right places with the right tools, thereby enhancing safety precautions.
Pan Ocean Oil Corporation were having issues organising business processes as they didn’t have a full-function accounting system, and were instead using local bank ledger software, with no capacity for asset management. Therefore the company recognised the need for a change in order to improve business processes. Tony Calderley, IT Consultant to Pan Ocean, identified Infor EAM as the asset management system for the company. “EAM allows Pan Ocean to carry out straightforward configuration changes and data migration activities,” Tony said.
In addition, the company is experiencing cost savings, which Tony said primarily stem from EAM’s ability to keep track of inventory, plan maintenance and manage procurement, thereby avoiding costs Pan Ocean would otherwise incur.
“Due to the remote locations where we operate, we need to order equipment and critical spares well in advance, often as much as six months lead time is required. For example if we’re running a family of large engines in a jungle location, we need extra equipment or critical spares and they’re not ordered early enough, then in order to get them onsite in time we would have to air freight them. The EAM system allows Pan Ocean to manage this process, so we have the potential to save $2+ million a year by avoiding air freight costs,” he said.
Tony had previously worked with Infor SunSystems and said this was the company’s financial accounting solution product of choice from the onset.
‘Infor SunSystems sells itself on being a single ledger, multi-currency system and that’s hugely important. We didn’t need an expensive or cumbersome solution, we wanted something simple and flexible that was multi-currency, and SunSystems met that need,’ he said.
For Tony, transparency, faster process cycle times and cost savings are the major advantages of the new systems.
“It’s important to remember that Pan Ocean is a business that’s come from spreadsheet and paper-based processes. So previously if a draft purchase order was raised it went around the cycle for approval and then was issued, but once it left each desk we had no visibility over its progress. However now we can track transactions in the system, which provides transparency and control.
“The system also enables the proper separation of duties and robust business controls – which is important in the environment we work within. Other efficiencies include improved and more reliable execution.
“The EAM side handles asset management, materials management and enterprise wide procurement, so we can now match invoices, purchase orders and delivery notes; it sounds fundamental but we couldn’t do that consistently before,” he said.