Carrapateena proposal

Level 6, 37 Pitt Street Sydney, 2000 operations@supplylite.com Tel: + 61 4 3855 4099

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SUPPLY CHAIN MODELLING & OPERATIONS SOLUTION

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Mike Billingham CEO

PROPOSED SCOPE OF WORK - CARRAPATEENA PROJECT

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PROJECT DELIVERY

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OPERATIONS 10M F-001

7000T

1.5M 1.5M

MODELLING Supplylite.com

Supply Chain Visualisation Software

PHASE ONE - MODELLING 1.

Primary Outcome

3.

Decision Points Informed/Captured within the Model

Set up preliminary Supply Chain model on SUPPLYLITE as a collaborative Decision Support tool for Project stakeholders to

3.1. Procurement Package Definition

define, test and evaluate Procurement, Logistics and Material

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Control strategy for the Carrapateena Gold Mine project. Ideally, this model then transitions into the supply chain start point for Operations (Phase 2).

Procurement package delineation by BOM/BOQ with pricing logic.

•

Procurement package categorisation (noting categories below are indicative): •

Category One - In House (POs placed by KBR/ Ozminerals);

2.

Indicative Duration of Phase One

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Category Two - 3rd Party Agency (POs placed by KBR/ Ozminerals appointed procurement agency); and

Three months.

•

Category Three - Construction Subcontractor (POs placed by the Construction Subcontractor undertaking the installation of the material being procured – these may or may not be visible on SUPPLYLITE).

Supplylite.com

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RDD by package.

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ROS by package.

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Supplier delivery terms by package.

Supply Chain Visualisation Software

MODELLING CONTINUED...

3.2. Procurement and Material Control Logic

3.3. Systems Interfaces

•

•

Material traceability (via SUPPLYLITE) by package from supplier to site.

Validate and test existing SAP functionality to identify Last Mile exposure against Project User Requirement.

•

QA/QC and receipting logic by package from supplier to site.

•

(Any) Free Issue Material ISSUE to a Construction

procurement functionality, the procurement of services for the

Subcontractor.

Project could be catered for already outside of SUPPLYLITE

Physical temporary Warehouse and Laydown layout across

using existing Ozminerals ERP system [SAP]).

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the supply chain to support: •

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(Comment: Based on a limited analysis of existing SAP

Construction Schedule driven triggers to vary PO quantities,

Storage/laydown/staging of material pending transport

RDD and/or ROS Dates (within procurement contract

to site;

variation timelines).

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QA/QC of material not completed prior to arrival on site;

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PO Receipt/OSD triggers to support payment via SAP to:

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Receipting (including OSD) against PO Line Item

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Category 1 (In House) package suppliers;

not completed prior to arrival on site (see Systems

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Category 2 (3rd Party Agency) package suppliers or to

Interfaces);

the 3rd Party Agency; and

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Workpac definition not completed prior to arrival on site;

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Category 3 (Construction Subcontractor) package

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Material storage and preservation on site; and

suppliers or to the Construction Subcontractor where

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Workpac and material issue to Work Teams on site.

(if) payment milestones are linked to directly to a procurement outcome.

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Supplier RDD shortfall triggers which will impact on ROS Dates and the Construction Schedule

Supplylite.com

Supply Chain Visualisation Software

3.4. Supply Chain Cost Estimate

3.5. Package Allocations

Supply Chain logistics scope (in house/subcontracts),

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infrastructure, equipment, personnel and systems required to manage the “in house” Freight Profile:

Allocation of Suppliers to In House and 3rd Party Agency packages

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Supplier terms and conditions to be written into contracts including:

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from Procurement/Mobilisation point to site (Incoming

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Cargo); •

Use of SUPPLYLITE to pack material (against PO Line Item) for collection or shipment

from site to Demobilisation/Disposal point (Outgoing Cargo

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Handover points and conditions (FCA Named Place)

including waste).

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QA/QC and Receipting procedure

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OSD Reporting

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Readiness reporting against RDD

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RDD failure notification process

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PO variation mechanism

Supplylite.com

Supply Chain Visualisation Software

PHASE TWO - OPERATIONS 1.

Primary Outcome

Deploy SUPPLYLITE as a cloud based Supply Chain Management

3.

Procurement Centric Functionality

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Raise Purchase Orders for material that will be tracked on

solution for the management of Project material from supplier to site. The actual functionality required will be selected by the client.

SUPPLYLITE. •

QA/QC and receipt against Purchase Orders.

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Track sourcing, packing and shipment of material from

2. Duration

supplier to site.

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20 months.

Provide transaction based traceability of all unique items from source to ISSUE or ACQUITTAL on site.

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Provide material management within temporary warehousing and laydown infrastructure between suppliers and final ISSUE of material to Work Teams on site.

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Trigger payment through SAP against Purchase Order/ Purchase Order Line Item.

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Provide linked document repository Purchase Orders, Inspection Release Certificates, Heat Certificates, OEM Preservation Instructions and OSD Reports.

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Provide full Supply Chain Dashboards and Reporting for Procurement.

Supplylite.com

Supply Chain Visualisation Software

4. Generic Functionality Available

Build the material catalogue from BOM, equipment, sustainment commodities and waste profile

Ship against contractor, package,WBS, diagram and required on site dates

Build purchase orders against suppliers/fabricators

1.5M

7000T

Recursive consignment packing at suppliers

Tracking of level 1 fabrication

Recursive receipting and OSD reporting

Upload purchase orders, delivery dockets and technical documentation Photograph any item and tag with a date, description and location

Dashboards and reporting portal

Supplylite.com

1.5M

Cargo configuration and dangerous goods

F-001

200LM

10M

Linked vessel schedules, manifests and stow plans for deck/tank cargo

F-001

F-002

12

Road transport schedules, manifests and load plans

F-003

100

50

96LM

Technical acquittal against WBS diagram and workpacs

Task based date stamped supply chain activity

F-001

F-002

F-003

FABRICATE

PACK

UNPACK

MANIFEST

LOAD

UNLOAD

BREAK

RELEASE

ISSUE

CLEAR

ACQUIT

STOW

Full blockchain inspired based traceability of material

Container management

Supply Chain Visualisation Software

ABBREVIATIONS & DEFINITIONS BOM

Bill of materials

A bill of materials or product structure (sometimes bill of material, BOM or associated list) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and quantities of each needed to manufacture an end product.

BOQ

Bill of quantities

The bill of quantities provides project specific, measured quantities of items detailed on technical drawings.

ERP

Enterprise resource planning (system)

The integrated management of core business processes, often in real-time and mediated by software and technology.

FCA

Free carrier (named place)

For the purposes of this project, “Free Carrier” means that the seller fulfils his obligation to deliver when he/she has handed over the goods to the buyer or to the buyer’s agent at an agreed point and in accordance with the handover conditions specified in the Purchase Order.

IRC

Inspection release certificate

Certifies that the item meets the required specifications and was in good condition. Usually raised during the QA/QC check.

OEM

Original equipment manufacturer

A company which produces parts and equipment that may be marketed by another manufacturer.

Supplylite.com

Supply Chain Visualisation Software

OSD

Overs, shortage and damages

Checks of material against purchase orders to confirm amounts align with order quantities and no damage has occurred prior to hand over by the supplier.

QA/QC

Quality assurance/quality control

Checks of material to confirm that they meet defined technical standards and/or consumer expectations.

PO

Purchase order

Order for material or services from a supplier usually at a pre-agreed rate per unit of measure.

RDD

Required delivery date

Date material is to be made available for handover by a supplier at the agreed hand over point.

ROS

Required on site date

Date which is project equipment and materials should be delivered to the site in order for the project schedule to be maintained.

SAP

‘Systems, Applications and Products’

German-based European multinational software corporation that makes enterprise software to manage business operations and customer relations.

UOM

Unit of measure

A unit of measurement is a definite magnitude of quantity, defined and adopted by convention or by law, that is used as a standard for measurement of the same kind of quantity.

Supplylite.com

Supply Chain Visualisation Software

THE PAST In 2008 and 2009 our team worked across multiple Gorgon tenders

through WAPET prior to the marine offloading facility being

advising construction contractors on supply chain strategy. A

constructed.

common theme was a lack of focus on freight profile development, supplier/fabrication timelines, mobilisation infrastructure cost and

Significant last mile systems exposure was identified across

required on site dates at work breakdown structure level.

procurement, configuration, staging, scheduling, manifesting, clearing, stowing, loading, unloading and distribution of

Collectively, this oversight was to present a major challenge when

project cargo.

EPCM stakeholders were seeking to sequence project cargo to Barrow Island to meet project schedule priorities.

The solution for the on island last mile exposure was “TASKIT”. This was built for the Sydney 2000 Olympics and sold to the Toll Group

In late 2009 our team lead the mobilisation of the Barrow Island

in 2010 redeveloped as “LTMS”. As of early 2018, LTMS was still in

supply base. Early scope focused on the unloading and distribution

use manifesting vessels from Barrow Island in support of existing

of project cargo shipped to Barrow Island by LCTs and barges

JDE/iLogistics deployments.

Supplylite.com

Supply Chain Visualisation Software

THE FUTURE SUPPLYLITE is a unique to market cloud based supply chain decision support platform built for EPCM projects within the oil and gas and construction sectors. Our space is last mile exposure where existing ERP systems are unable to provide all project specific functionality.

Version 1 was launched at the 2018 Australian Oil and Gas Expo following ten years in design and two years of development.

As Chevron now moves into Gorgon Phase 2 with what we assume will be a primarily decentralised subcontractor owned supply chain, we would like to introduce SUPPLYLITE’s modelling and “overwatch” capabilities. We are also looking to introduce the modelling and operational capabilities of SUPPLYLITE to Gorgon Phase 2 subcontractors.

Unique GUI Graphics

Supplylite.com

Supply Chain Visualisation Software

VALUE PROPOSITION Our value proposition is multi-faceted and flexible. Based on our observations on Gorgon and our work developing onshore/offshore supply chain strategy for Woodside’s Browse Project, we realised that SUPPLYLITE functionality needed to extend across the whole EPCM spectrum and/or provide a LITE solution for a small part of it.

Importantly, we also identified that the owner and/or EPCM lead contractor may want to have visibility of decentralised supply chain activity which lies in subcontractors’ scope. This “overwatch” may be required for material on the critical path or to deconflict project infrastructure chokepoints.

Accordingly, our full value proposition extends through the development of the supply chain strategy during FEED/planning phase, where subcontractor supply chain scope options can be tested, through to full supply chain operations. The key is to target the ‘usual suspects’.

Supplylite.com

Supply Chain Visualisation Software

THE USUAL SUSPECTS

Lack of VISIBILITY

Existing ERP systems not providing full visualisation of the supply chain for all stakeholders Actual supply chain cost deviated significantly from the cost estimate Actual freight profile deviated significantly from the freight profile estimate Supply chain capacity and sequencing did not align with required on site dates in the project schedule

Recurring DELAYS

Lack of ACCOUNTABILITY

Supplier and Fabricator delays impacting on schedule were not visible in real time

Containers of inventory sitting in laydown areas without packing lists

Engineering, procurement, Logistics and material control staff operated in silos

Undeclared dangerous goods found in cargo ​ Container weights not verified in accordance with state, national and international law ​ No ability to trace critical items from source to site ​ No common reporting portal for all stakeholders

Multiple systems, spreadsheets and emails used to manage supply chain operations ​ Packing lists, manifests and stow plans were not linked within a common system No workpac functionality to support inventory in temporary laydown areas on site

Gaps and/or overlaps in supply chain scope 3rd party logistics provider activity and cost was not visible in real time

Supplylite.com

Supply Chain Visualisation Software

HOW SUPPLYLITE WORKS Modelling SUPPLYLITE provides a physical supply chain mapping based

During FEED and or the project planning phase, the SUPPLYLITE

interface with individual nodes being owned by a single contractor,

modelling module enables multiple supply chain constructs to be

shared by multiple contractors or established as a project node.

modelled, evaluated and priced against a freight profile and

In a historical Gorgon context, the Australian Marine Complex

project timeline.

(Henderson), Perth Supply Base, Dampier Supply Base and Asian Marshalling Yard (Thailand) would have been designated as projects nodes.

SUPPLY CHAIN SCOPE

REVERSE LOGISTICS WASTE TRANSFER STATION

SUPPLIER

COST ESTIMATE

PROCUREMENT PLAN/SCOPE

LAYDOWN AREA

OFFSHORE SITE

RISK DOMESTIC PORT/AIRPORT

FREIGHT PROFILE

WBS INFRASTRUCTURE

OVERSEAS FABRICATOR

SUPPLY BASE

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MARSHALLING YARD

ONSHORE SITE

ROS DATES

BOM/MATERIAL CATALOGUE SUBCONTRACTOR SCOPE

CHOKE POINTS

OVERSEAS PORT/AIRPORT

Supply Chain Visualisation Software

Operations During operations, SUPPLYLITE provides full visibility of and/or full control of all procurement, cargo configuration and shipment by subcontractor, package, WBS and required on site date. As alluded to, SUPLYLITE can provide the full spectrum of supply chain operations or be limited to a single node or activity; for example, packing containers in laydown area against a workpac.

Build the material catalogue from BOM, equipment, sustainment commodities and waste profile

Ship against contractor, package,WBS, diagram and required on site dates

Build purchase orders against suppliers/fabricators

200LM

1.5M

7000T

Recursive consignment packing at suppliers

Tracking of level 1 fabrication

Recursive receipting and OSD reporting

Upload purchase orders, delivery dockets and technical documentation Photograph any item and tag with a date, description and location

Dashboards and reporting portal

Supplylite.com

1.5M

Cargo configuration and dangerous goods

F-001

10M

Linked vessel schedules, manifests and stow plans for deck/tank cargo

F-001

F-002

12

Road transport schedules, manifests and load plans

F-003

100

50

96LM

Technical acquittal against WBS diagram and workpacs

Task based date stamped supply chain activity

F-001

F-002

F-003

FABRICATE

PACK

UNPACK

MANIFEST

LOAD

UNLOAD

BREAK

RELEASE

ISSUE

CLEAR

ACQUIT

STOW

Full blockchain inspired based traceability of material

Container management

Supply Chain Visualisation Software

THE NEXT STEP We will be conducting presentations on SUPPLYLITE functionality in Perth in late May 2018. For a Chevron audience we will include a Gorgon Phase 1 inspired model which showcases material procurement/fabrication, cargo configuration, staging, clearance, manifesting, stowing and shipping.

Although Gorgon Phase 2 presents as a different supply chain challenge (to Phase 1) in terms of control, ownership and scale, we are confident that our value proposition applies in some way, shape or form when the usual suspects are considered.

Supplylite.com

Supply Chain Visualisation Software

ERP INTEGRATION Our work with SAP has confirmed SUPPLYLITE’s space providing cloud based last mile solutions to companies with existing ERP systems. Ideally our solution includes interfacing with the ERP system for project specific information.

For example, accessing material catalogue and purchase order information required to undertake receipts/acquittals on SUPPLYLITE in project laydown areas and construction areas which do not provide ERP access or functionality to all stakeholders.

Similarly, at the conclusion of the SUPPLYLITE transactions, related information would be made available via open API to update the ERP system.

Supplylite.com

Supply Chain Visualisation Software

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PROJECT DELIVERY

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Supply Chain Visualisation Software

CONTACT US Mike Billingham CEO Level 6, 37 Pitt Street Sydney, 2000 operations@supplylite.com Tel: + 61 4 3855 4099

Supplylite.com

Supply Chain Visualisation Software

Level 6, 37 Pitt Street, Sydney, NSW 2000 | E: operations@supplylite.com | T: + 61 4 3855 4099 | W: supplylite.com