Aibel suppliers

Expectations and key success factors
Eddie Eide – Senior Procurement Advisor Draugen EPCm Project
Company overview
■ Industry pioneer with over 100 years
■ A leading service company within the
oil, gas and renewable energy industry
■ Eight locations in Norway and four
■ Aibel employees around 5,000
■ Annual turnover in 2013 approximately
12 billion NOK
Company overview cont.
■ 50 % ownership in EMC (Egyptian
Maintenance Company)
■ Long term maintenance and
modifications contracts
■ Deliver new platforms and modules
■ Present on half of the offshore
installations and 4 onshore terminals
in Norway
■ Successfully entered into offshore
wind market
Aibel locations
Yard in Haugesund
Yard in Thailand
Headquarter in Stavanger
Aibel suppliers
■ Current status – our supplier
■ Suppliers are key to Aibel - 2/3 or
approx. 60-70% of value creation is
Huge influence on Aibel
Purchases per county in Norway
NCS - Future expectations
■ Good potential for new large and small
■ Further optimization of the shelf
■ New installations under construction will
provide new MMO contracts
■ Deferred maintenance and modifications
will provide new employment
■ There will be industrial development in
northern Norway
■ The industry has undergone continuous
restructuring – we will succeed again!
Strategy and goals
■ Aibel has a leading position on the
Norwegian continental shelf and aims to
maintain this position
■ We aim to expand internationally
■ Need for cost reduction and increased
efficiency - We reposition and make
Integrated and cost effective execution
Increased international interest in the
implementation of our projects
Aibel, international share
What is important to us – and our clients
■ Delivery performance
■ Quality
■ Documentation
■ Solution provider, not (only) a
supplier of goods and/or services
■ Cost awareness
■ Cost optimisation - The ability to be
creative and proactive
Efficiency and productivity
Key personnel
Main focus areas
■ Knowledge of specifications
■ Reliability in delivery
■ Quality in execution
Knowledge of specifications
■ Pay extra attention HSE & working
■ HSE requirements must be first
priority in all projects
Our biggest customer, Statoil, have
increased focus on working
environment for maintenance
■ Offer according to specifications in
If supplier offer standard equipment
– specify exceptions
Reliability in delivery
Effects of delays are increased both in cost
and schedule! Therefore:
■ Be ‘realistic’ regarding delivery time
You will be challenged – know your
capabilities and the risks involved
■ Inform when in trouble
Do not expect to solve all problems
– inform us and work to solve it
■ Give us the possibility to reduce the
negative effects
Quality in execution
■ Use qualified sub-suppliers
Contractual demands / selected
makes etc.
■ Ensure quality and expedite!
■ Use your quality system in project
Do it right the first time
■ Negative trend in ‘punch-items’ and
‘warranty issues’
‘Short-cuts’ on quality does not pay
The key to success
■ Project deliverables
■ Quality
■ Schedule
■ Productivity
■ A winning culture
■ A good working environment
Areas of improvement
Where suppliers can contribute:
■ Schedule – My Responsibility
■ Capability vs. capacity
■ Estimation and experience data
■ Commercial awareness
■ Cost optimisation
■ Continuous improvement
HSE, Compliance and Quality
Health, safety and environment
Zero injury philosophy
Specific KPIs for HSE
Lost time incidents
Total recorded injury rate
Serious injury rates
Sick leave
HSE programme developed yearly
Action plan for overall activities
Local action plans tailored for each
■ An important goal for Aibel is to deliver consistent and
correct quality for all our projects.
■ Through our management system W3, we ensure that
we always use our best practice for the execution of
projects and work.
■ The management system fulfills the requirements of the
following standards and directive:
■ ISO 9001: Quality management systems
■ ISO 14001: Environmental management systems
■ BS OHSAS 18001: Occupational health and safety
management system
■ Pressure equipment directive 97/23/EC module H
■ ISO 3834-2: Fusion welding
■ ISPS: International code for the security of ships and of port
■ Many years of experience in developing
and living up to high business
compliance and ethical standards
■ Implemented new methods and systems
in recent years to ensure a highly
compliant and ethical business conduct
(Code of Conduct)
Procurement Method
As it is vital to get:
the right material
in the right quality
to the right site
at the right time
at the lowest total cost
Procurement is a key for success in all
our projects.
Overall method
ProVision is the standard method for
start-up, execution and close-out of
Procurement process
Visualized in W3 and includes all
relevant procurement procedures,
templates and method descriptions
needed for procurement in a project.
Aibel SAP or customers ERP (Enterprice
Resource Planning):
The Material Management module in SAP
Reservations (qty, specifications, need dates, status)
Purchase Orders (PO)
Reports (status, commitments)
Achilles – database for relevant suppliers
Procurement Corporate Frame
Agreements - database
New Vendor Request - database
Proarc – document control system
Procurement Toolbox
Documentation requirements
Attached to an inquiery you will find a typical example of Supplier Documentation
Requirement List (SDRL) showing documentation and data tables to be submitted
with the bid and as a part of the PO-delivery.
Read this carefully and calculate the costs assosiated.
Invest the necessary resources to deliver the documentation according to the
Documentation is 50% of the delivery!
How to become a supplier to Aibel and Shell:
Achilles registration!
Step 2: Mail regarding “New Vendor Request” will be issued from Aibel asking for
Address information
Ownership information
Initial Contact Information
Payment information
Aibel will evaluate and check / approve information
Aibel to perform verification of received information
Close / check any gap – go or no go
NB: Aibel use Achilles as the basis of “Approved Vendor List” and has it own area where
vendor information is available – Achilles is a “key” to be approved!
Step 3: How to become a supplier to Aibel:
Aibel`s Supplier Qualification Process consist of a “questionnaire” asking for info
Management and leadership, information and analysis, strategic planning, human
resources, process management, business improvements and operational results,
customer focus and satisfaction, supply management and HES.
Aibel will evaluate and score completed form
Verification of received information (visit)
Close any gap – go or no go
Prequalification levels if approved
Supplier Quality Management after approved
Supplier verifications/audits is performed, also based on “Key
Performance Indicators”
Supplier approval and re-approval
Maintenance of Aibel Approved Vendor List (Achilles)
Key performance indicators is established and shared with
supplier`s to agree if any corrective action is required on one or
both sides to improve performance.
Non Conformance system in place
Typical findings at new suppliers
Missing or insufficient:
HSE thinking not according to expectations in the oil&gas industry
Presentation of organisation
- Missing organisation chart
- Diffuse responsibility
Systems for reporting of injury and sick leave
Target for TRIF factor and strategy to keep low
- Total Recordably Injury frequency
Number of injuries x 1 mill mhr / actual mhr
Risk management systems
Typical findings at new suppliers
Verification and Audit systems for subcontractors
Systems to satisfy Norsok S-006
Risk management of working environment
Treatment of nonconformance
Monitoring of ability to deliver, quality cost, ”on time delivery” etc
Documentation of prosesses and results of these
Systems for high ethics standard
Capacity and competence to handle complex systems
What to remember
Aibel use only Achilles approved suppliers who are also Aibel approved.
Aibel has an open approach regarding co-operation and new vendors.
Aibel will keep “find contracts” updated to reflect current opportunities.
All vendors to Draugen must be TA (Technically Approved) by Shell.

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