Appendix C Staple yourself to an order – Operations & Maintenance

Maintenance

Introduction

I have used the 10 steps adjusted to our scenario also for O&M.

For the close monitoring of the O&M OMC the intention was to staple myself to the order and

tracking this from the perspective of a SCM coordinator. I did not follow the order physically but was monitoring it closely through SAP during the process. I used the standard means to follow the

preparations and tracking through the supply chain.

I stapled myself to the O&M work order 23369294 and the shipment of a Hydraulic Valve - purchase order 4503252026

I decided to staple myself to the transportation of a hydraulic valve which was going to be shipped from the supplier premises at Sola to Statfjord A. The shipment should be picked up by Bring at Sola, and Bring should transport the equipment by road to the supply base Coast Center Base (CCB) at Ågotnes where it should be received and shipped to the Statoil platform Statfjord A.

Order planning

A hydraulic valve was requested for corrective maintenance to Statfjord A on work order 23369294 dated 05 April 2015.

Order generation

Purchase Requisition 1003453643 to source the valve was raised as a free text item 11 May 2015. A Request For Quotation (RFQ) was released by a purchaser 16 June 2015. No part was ordered at this stage. The work order status per 7 June is illustrated in Figure 10.3.1.

Figure 10.3.1 The work order status in SAP Sunday 7 June

Source: Statoil internal, Material Tracking – PM order

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Purchase order 4503252026 was then released 08 June 2015 to source the hydraulic valve. The lead time was 2-3 weeks from order date.

Cost estimation

Statoil received a quote specifying the cost for the hydraulic valve. This is confidential information and not revealed in this paper.

Transport of goods from supplier to the supply base

The supplier was located in the Stavanger area, and the delivery address on the purchase order was the supply Coast Center Base (CCB) at Ågotnes. The order for the transport from the Stavanger area to the supply base at Ågotnes was the responsibility of the supplier according to the purchase order. The Incoterms on the purchase order was FCA Sola.

There was no requirement in the purchase order that Statoil should be informed about the

transportation. Statoil did for this reason not get any information from the supplier up front about when the valve should be picked up by Bring and transported from the supplier facility to the supply base. The supplier confirmed that they did not give any information about shipping details to Statoil as this was not requested at this occasion.

To chase purchase orders not delivered in accordance with agreed delivery dates the purchaser normally runs a report in SAP on a weekly basis listing purchase orders with overdue delivery times.

The overdue purchase orders are then chased. The purchasers generally have a more pro-active approach for follow-up on prioritized purchase orders.

Delivery at the supply base

The hydraulic valve was delivered at Ågotnes, and a Goods Receipt (GR) was created for the hydraulic valve in SAP 7 July 2015 (Figure 10.3.2).

Page 144 of 147 Figure 10.3.2 Purchase order status per 10 July 2015

Source: Statoil internal, SAP - purchase order

After the Goods Receipt at Ågotnes the hydraulic valve was placed on a Hold area at the supply base to wait for further shipment to Statfjord A (Figure 10.3.3).

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Figure 10.3.3 The Valve is still in the Holding area per 17 July 13.00 PM

Source: Statoil internal, Material Tracking – PM order

Shipment from supply base to offshore installation and receipt at offshore installation

The work order was scheduled to be started early August 2015, and the hydraulic valve was scheduled to be transported from Ågotnes to Statfjord A in due time. The valve was scheduled for shipment 525648 in CCU number AMD2990 which was registered departed from the supply base 29 July 15.18 PM. The Shipment is registered as ended in VTMIS 31 July 10.15 AM (Figure 10.3.4).

Figure 10.3.4 Status of the shipment in SAP per 31 July

Source: Statoil internal, VTMIS

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The CCU number AMD2990 is listed in the shipment in VTMIS to have arrived at the installation 31 July 10.15 AM (Figure 10.3.5).

Figure 10.3.5 Offshore logistics container history in SAP

Source: Statoil internal, VTMIS

The hydraulic valve did arrive in due time for the scheduled start of 3 August for the job on work order 23369294. The work order status in SAP per 14 August illustrates the valve is delivered to the final destination through the green lights and status “Shipped, received offshore” (Figure 10.3.6).

Page 147 of 147 Figure 10.3.6 The work order status in SAP per 14 August 2015

Source: Statoil internal, Material Tracking – PM order

This concludes the transportation as there is no return transportation linked to the work order and purchase order.

Return shipment from offshore installation to the supply base

No part was being returned – not possible to identify if a part was returned.

Receipt and handling at the supply base

No part was being returned – not possible to identify if a part was returned.

Return transport of goods from supply base to supplier

No part was being returned – not possible to identify if a part was returned.

Billing

The Goods Receipt was done in SAP 7 July 2015 with reference number 5010356419. The supplier invoice was dated 06 July 2015 and was in line with quotation received.