Projects Summary

EUGENE EFIMOV

+7 915 11-024-11

[email protected]

EfimovED

EfimovED

2014

PROJECTS SUMMARY

LIST OF PROJECTS PROJECTS STATISTICS# Title slide

PROJECTS OVERVIEW

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Business process modeling and analysis“Rosneft”Development of theenergy efficiency measures “Gazprom neft”Development of theenergy management system (EMS)“Gazprom neft”Implementation of theenergy management system (EMS)“Gazprom neft”Estimation of theenergy efficiency potential“Gazprom neft”Development of thenew energy efficiency measures “Gazprom neft”Business process modeling and analysis“Roslesinforg”Formation of the contracting standard base“SIBUR”Development of the target model ofsupply chain management in Major Projects“Gazprom neft”Development of the scheduling methodology for supply service“URALCHEM”Headcount optimization“LUKOIL”Implementation of thequality management system (QMS)(internal project)

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* Projects 2-6 are components of the“Gazprom Neft” energy efficiency programme

AREAS: FUNCTIONAL UNITS:

CLIENTS: INDUSTRIES:

Energy efficiency improvement

Procurement efficiency improvement

Business process improvement

Services quality improvement

Headcount optimization

Production

Supply chain management (SCM)

Energy management

Quality management

Organizational development

“Roslesinforg”

“URALCHEM”

“SIBUR”

“LUKOIL”

“Rosneft”

“Gazprom neft”

Management consulting

Forest regulation

Chemical production

Petrochemicals

Petroleum refining

Petroleum production

53211

43212

111116

111117

N Number of projects

MANAGEMENT & LEADERSHIP: NUMBERS:

3555

1112174

projects I managed were completed successfully

projects included tasks of leadinga Client working group or Consultant team memberspeoples were in the largest project team under my supervisionemployees, whose development was my objective,got promotion to new position due to achieved results

months is the longest project duration

companies and its subsidiaries were involvedin projects realizationtechnical and cost proposals were preparedwith my participationtechnical and economic models were developed by me in the course of projects

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PROJECT

IndustryAreaDurationBackground

Deliverables

MY ROLEPositionSubordinates

Objectives

Results

Comments

PROJECTS DETAILS ( SLIDE 1 / 6 )

1. Business processmodeling and analysis

Petroleum productionBusiness process improvement4 months

Implementation of major project on construction and start of exploitationof “Vankor” oil field was accompanied by a rapid extensive growth of SAC “Vankorneft” 1 in the absence of elaborated plan of organizational changes. As a corollary effectiveness of existing Enterprise business processes is not sufficient to attain quantitative and qualitative targets set by Company.

Model of the current upper-level business processes of Enterprise was made. Core problems of described processes were identified and analyzed, promising areas for process optimization were determined and approved.

Project manager5 consultants (Consultant project team) Lead a team of consultants and realize the project successfully

Project was successfully completed:‐ performed works complied with the requirements specification‐ details and clarity of project materials surpassed the Client expectations‐ full payment for provided services were received‐ total project costs did not exceed expected value

Several steps of sale process were accomplished: negotiations were held with Customer (it included defining of project purpose and objectives,contract terms), technical and cost proposals were prepared and etc.

Set of project documents were formed: charter and schedule,a number of orders, acceptance certificate, progress reports and etc.

Interviews with organization subdivisions chiefs were conducted (information related to Enterprise business processes was gathered)

Goals in development of project team members were achieved(2 consultants were promoted to a higher grade under my mentorship)

1 SAC “Vankorneft” – subsidiary and affiliated company of “Rosneft”_

2. Development of theenergy efficiency measures

Petroleum productionEnergy efficiency improvement6 months

Sharp plunge in the oil price in a time of the global financial crisiswas followed by significant decline in oil production profitability.Energy resources are the one of the principal expenditure itemsof petroleum industry enterprises and therefore enhancementof the energy efficiency becomes a priority issue for oil companies.

Estimation of the energy cost reduction potential was performed.Range of administrative and technical measures aimed to energy savingwas formed, that set the stage for energy efficiency programme.

Consultant3 production technology engineers (Client working group members) Develop measures to decrease artificial lift specific energy consumption

Energy consumption model of the producing wells was developed (Excel) Profitability model of operating the producing wells was developed (Excel) Energy efficiency potential study was completed:

‐ factors affecting energy consumption were identified‐ leverage over these factors and probable effects were determined‐ ideas were prioritized and directions for further work were selected

Package of energy efficiency measures was developed:‐ values of economic and technological effects were calculated‐ investment appraisal were made using various methods (NPV, IRR, PI) ‐ activities implementation schedules were prepared‐ target values of implementation KPI 3 were set

Pilot testing of suggested solutions was planned:‐ measurement and results processing technique were described‐ objects were chose, experiment schedules were prepared and etc.

3 KPI – key performance indicators_

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PROJECT


Deliverables


Objectives

Results

Comments

PROJECTS DETAILS ( SLIDE 2 / 6 ) 4

3. Development of theenergy management system (EMS)


External environment and operating conditions vary continuously during fields development. Therefore successful implementation of the identified energy efficiency potential 1 requires ongoing activities to update developed measures for the energy costs reduction, analyze energy consumption variances, search for the gaps and new energy saving opportunities etc..

EMS was developed on the basis of ISO 50001 standard. It enables the Company to face up to the energy saving challenges. Measures, developedat pilot SACs 2 were extended to each of the Organization subsidiaries.

Consultant2 production technology engineers (Client working group members) Develop the set of EMS tools Replicate energy efficiency measures at Company subsidiaries The following EMS tools were developed: “energy efficient design”

of a submersible equipment (selection of an optimal variant for completing the well with equipment from an economic point of view) and “energy efficiency monitoring” of a submersible equipment, including:‐ concept of the tool usage business process‐ calculation technique and computational model (Excel)‐ report form templates

Measures developed above were replicated. It included:‐ adaptation of the calculation methodology considering SACs specific‐ formation of the activities package for enterprises

Conditions were created which allow the Company staffto actualize typical energy saving measures on their own:‐ algorithms for calculating all types of activities effects were described‐ these algorithms were implemented as computational models (Excel)‐ staff were trained to use these models and in calculation techniques

1 see project #2 on slide 32 SACs – subsidiaries and affiliated companies of “Gazprom neft”

4. Implementation of theenergy management system (EMS)


Introduction of news systems at large companies in many cases does not produce expected benefits due to the lack of proper change management. It is possible to avoid a failed EMS implementation by performing system shakedown and providing environment conducive to effective system operation (adequate distribution of responsibility, tools automation etc.).

Company energy management standard was developed, which regulatesthe system functioning. The most laborious EMS elements were automated. Methodological assistance were provided to involved enterprises personnel.

Senior consultant3 analysts (Consultant project team members) Maintain and support the EMS processes automation Render methodological assistance to Company employees The following EMS tools were automated: “energy efficient design”

and “energy efficiency monitoring” 3 . For this purpose:‐ software requirements specification was formed‐ recommendations for selection of software developer were made‐ system tools methodology were transferred to software developer‐ software conceptual design was created and approved‐ software verification and validation were done

Methodological assistance was given to employees. It consisted of:‐ training in procedures and techniques‐ advising on emerging issues‐ expertise of produced materialsAs a result staff successfully mastered EMS tools

Section of Company energy management standard was prepared (guidance for prediction of of energy consumptionand factor analysis of energy consumption variances)

3 see project #3 on this slide

PROJECT


Deliverables


Objectives

Results

Comments


5. Estimation of theenergy efficiency potential


Thanks to good results it was decided to extend the energy efficiency programme to joint ventures, which hinder this process, seeing no reserves to decrease energy consumption. Situation is complicated by the fact that Company has no appropriate tool to determine the value of energy costs reduction potential and identify possible ways of its implementation.

Special technique was made which allow joint ventures personnelto estimate the potential on their own. After subsequent analysis several promising areas for energy efficiency enhancement were founded.

ExpertNone Render methodological assistance in the performance of project works

related to the artificial lift process, technologies and equipment Project team members without necessary expertise were trained in:

‐ production process peculiarities‐ algorithms used in previously developed computational models of

producing wells energy consumption and profitability of operating 1

‐ approaches applied in calculation of the effects of typical measures 1

As a result staff had adopted the accumulated experience successfully and become capable to accomplish tasks in area of estimation of the potential

Materials developed by Consultant were analyzed (its weaknesses were detected and adjusted to ensure perfect quality of provided services)

Concept of the potential estimation methodology was formed Set of energy efficiency indicators was developed to enable benchmarking

of the of enterprises operating under unequal oil production conditions Recommendations for development of power metering and accounting

systems were prepared (including careful analysis and feasibility study)

1 see project #2 on slide 3

6. Development of the newenergy efficiency measures


During the fulfillment of energy efficiency programme most part of production units were covered by typical measures for energy costs reduction. So that Company can free up resources for development of new activities and solve existing problems, such as low degree of automation, computational complexity and high labor intensiveness of calculations.

New activities and associated analytical tools and instruments were developed to decrease energy consumption. Computational modelfor calculating initiatives effects were automated to a large extent.

Project manager3 consultants (Consultant project team) Lead a team of consultants and realize the project successfully Develop model for the TCO of submersible equipment valuation 2

Project was successfully completed:‐ all of the project goals were achieved‐ all of the project objectives were solved‐ positive feedback was received from the Client top management‐ services rendered by Consultant were paid in full‐ project came in under budget

Package of project documents was formed: project schedule, a numberof orders, acceptance certificate, progress reports, budget and etc.

TCO model was developed (Excel). It was used to estimate the probable effects of changing contractors, that operate submersible equipment.

Conditions were provided for the effective application of the model‐ algorithms for calculating TCO and its elements were described‐ step-by-step instruction for working with developed model was made‐ staff were trained to use this model and analyze contactors proposals

2 TCO – Total Cost of Ownership (it include not only purchase cost butvariety of operation expenses such as repair or fuel costs and etc.)

PROJECT


Deliverables


Objectives

Results

Comments


FSUERoslesinforg

7. Business processmodeling and analysis

Forest regulationBusiness process improvement2 months

Absence of competition and, as consequence, motivation for development and use of modern technologies (including management system) result in extremely low Enterprise efficiency. Nevertheless under conditions of economic downturn and growing demands to state-owned companies current executives have come to realize the need for qualitative change.

Managerial team were trained in the basics of process management methodology. Key business processes of the Enterprise were consideredand important directions for further development were determined.

Senior consultantNone Provide coordination and methodological support to Consultant team and

heads of Company units on business process modelling and analysis issues Several tasks regarding training of Enterprise subdivisions chiefs

in the process approach to management were accomplished:‐ teaching materials were formed for lectures with invited BPM 1 experts‐ Individual sessions with managers based on lectures results were held

(in order to consolidate theoretical knowledge and apply it in practice) Single format of business process modelling was prepared to ensure

efficient workflow of project team. It included notation parameters, diagram examples and templates, other instructions and etc.

Core business processes of the Enterprise were described:‐ process list and its intrinsic structure were created‐ process maps were made (MS Visio, EPC notation)

Problem areas of existing business processes were identified and directions for operational efficiency enhancement were determined

1 BPM – Business Process Management_

8. Formation of thecontracting standard base

PetrochemicalsProcurement efficiency improvement3 months

Target model of procurement system was developed and approved in previous projects at Company. There are several conditions required for implementation and operation of new processes to be successful.One of them is creation of regulatory framework containing all necessary procedures and work instructions for suggested tools and instruments.

Package of normative documents regulating the functioning of developed contracting processes were formed. Supply service staff were trained in new approaches and methodologies. Examples illustrating its use were prepared.

Senior consultantNone Develop the set of regulations (elements of contracting standard base) Create models of new processes in corporate software environment Regulations governing following processes “category management”,

“supplier performance management” and “obligation management”were developed in compliance with target model and included:‐ process steps detailed description‐ process maps‐ guidance for used contracting tools and instruments‐ risk analysis findings‐ documents examples and templates‐ key performance indicators

Model of procurement business process was made in Company database (ARIS, EPC notation) in accordance with developed regulations

Materials used to train supply service stuff to work with new processes and its features and specificities had been prepared

PROJECT


Deliverables


Objectives

Results

Comments

PROJECTS DETAILS ( SLIDE 5 / 6 ) 79. Development of the target modelof supply chain management (SCM)in Major Projects (MP)Petroleum production

Procurement efficiency improvement5 months

Implementation of MP holds the key place in Company strategy. At the same time there is used the same approach to supply of MP, as that for existing facilities, which does not take the specific of project activity into account. Insufficient flexibility, low authority level of field offices and milestones linked to calendar, rather than to project stage, lead to inefficiencies of MP.

Health check of MP supply system was carried out (including benchmarking). Target model of supply chain management was developed on the basis of assessment results with due regard to the worldwide industry best practice.

Senior consultant2 analysts (Consultant project team members) Perform qualitative analysis of supply chain management system

in major projects during first and second phases of project (3 months) 1

Information related to Company MP was gathered and well structured Primary characteristics of the current model were determined

for each project stage (according to stage-gate methodology):‐ procurement processes, its structure, responsibility assignment matrix‐ procurement tools and techniques used in projects fulfillment‐ management structure and scheme of interaction of participants

Cases of procurement failures which critically affected the course of the project (significant cost overrun, delays or disruptions) were investigated:‐ events sequences were reconstructed for each case‐ events that had caused the negative consequences were identified

revealed causes were linked with characteristics of the current model List of actual and potential problems was formed Review of the industry best practices for supply of MP was prepared

1 Phase 1 – health check of MP supply systemPhase 2 – benchmarking of MP supply system

10. Development of the scheduling methodology for supply service

Chemical productionProcurement efficiency improvement4 months

Company has shown rapid rate of growth since its founding in 2007 andlays a claim to be a leading fertilizer producer in Russia at the present time. However, level and pace of development of supply functions are not in line with these ambitious goals. Such problems as high purchasing prices,surplus inventory and etc. becomes an obstacles to the further progress.

Diagnostics of supply system was completed and according to its findingsthe set of recommendations for its enhancement were made. In addition,approach to the scheduling was proposed (one of the key areas of concern).

Senior consultantNone Form a package of actions to enhance the efficiency of supply system

during first and second phases of project (3 months) 2

Sections of technical and cost proposals were prepared(procurement categories, material and services catalogue)

SCM operational model was analyzed, including study of following items:‐ functioning processes and methodology it used‐ existing distribution of responsibility and authority

Core requirements of supply chain management system were determined Target model of business processes for the supply functions was designed

(based on Consultant SCM reference model) Program of initiatives towards transition to the target model was formed:

‐ initiatives content was described‐ initiatives were prioritized (“quick wins” were identified)‐ initiatives implementation schedule was developed‐ initiatives success factors and criteria were indicated

2 Phase 1 – analysis of the supply systemPhase 2 – development of the supply system target model

PROJECT


Deliverables


Objectives

Results

Comments


11. Headcount optimization

Petroleum refiningHeadcount optimization12 months

It is no secret that “LUKOIL” is far behind competitors on world markets in terms of the number of personnel. There was not paid much attention to this issue until recently, but commissioning of the new production facilities with shortage in specialized employees in the regions and, as consequence, growth in labor costs bring the Company to revalue this factor significance.

Project is underway. Its purpose – put into operation new production facilityat SAC 1 without increasing the number of personnel, that require to identify reserve for productivity enhancement and prepare detailed action program.

Chief specialistNone Coordinate and support the project at SAC with the “RLG International”,

engaged as external Consultant, during its first phase (3 months) Environment conducive to effective solving the set objectives was created:

‐ provision of information to project participants was established‐ project activities were harmonized with all other affected work‐ series of bureaucratic hurdles encountered at Company were overcome‐ information (PR) campaign was organized

(for this purpose I, inter alia, had to to develop publication schedule,assign responsibilities and control its execution, write several articles)

‐ assistance was provided in preparing and conducting workshops(idea generation sessions) and interviews with Company employees

A number of promising areas were identified on the basis of:‐ comparative and trend analysis of Company divisions personnel number‐ analysis of gaps between estimated and actual headcount‐ analysis of best practices in work processes streamlining

1 SAC – subsidiaries and affiliated companies of “LUCOIL”_

12. Implementation of thequality management system(QMS)Management consulting

Services quality improvement9 months

Long-term confident relations with the clients are particularly importantin highly competitive management consulting market. That is why Firm attaches great importance to customers satisfaction and its reputationas a reliable partner. To this end, Company is constantly searching forthe new opportunities to enhance the quality of provided services.

QMS was developed and introduced at “Power Management”.It was certified under international (ISO) and Russian (GOST-R) 9001-2008quality management standard by specialized organization “Bureau Veritas”.

Quality manager2 consultants (Company staff) Successfully realize internal project with methodological assistance of

contractor organization “TEM-Consulting” Project was successfully completed:

‐ system operates with the great profit for Company‐ system compliance with the standard was certified

QMS documentation was produced (quality manual, policy and objectives, quality records templates, documented procedures and work instructions)

QMS became fully operational:‐ staff were trained to work with system processes and tools‐ internal audits were carried out‐ initial filling of quality records was made

Contract management activity was performed. It included:‐ selection of contractor and accredited certification body‐ drafting contract and requirements specification‐ acceptance of the results of the fulfilled works

Career

Projects Summary