SABIC PARTNERSHIP WITH CONTRACTORS CONTENTS • Introduction and Background • The Objective • Recommendations • The Result • SABIC Contractor Management System Features • SABIC Contractor Management System Benefits • SABIC Contractor Management System Process • Summary No. 1 INTRODUCTION * More than 30 Years of Partnership * More than 500 Service Contractors * More than 5,000 Contractor Employees * 64,630,954 Contractor Man-hours (K.S.A.) (Year 2011) * 70,795,010 Contractor Man-hours (K.S.A.) (Year 2012) No. 2 BACKGROUND COLLABORATIVE EFFORTS SABIC Contractors SABIC EHSS SABIC Sites Other SABIC Functions Global Procurement Services No. 3 THE OBJECTIVE 1. STRENGTHEN THE PARTNERSHIP BETWEEN SABIC & CONTRACTORS. 2. LEVERAGE THE PERFORMANCE OF CONTRACTORS No. 4 RECOMMENDATIONS SHEM-04 Training & Competency SHEM-05 Contractor Management System SHEM-08 Safe Work Practice TO STUDY AND REVIEW CURRENT SABIC SHEMS. SHEM-10 Incident Reporting System SHEM-15 Transportation No. 5 RECOMMENDATIONS EVALUATION EXECUTION REGISTRATION TO STUDY AND REVIEW CURRENT CONTRACTOR MANAGEMENT SYSTEM PROCESS. PREQUALIFICATION MOBILIZATION DE-MOBILIZATION SELECTION No. 6 RECOMMENDATIONS SABIC KSA TO STUDY AND REVIEW BEST PRACTICES AVAILABLE GLOBALLY IN MANAGING CONTRACTOR SAFETY. NON-SABIC GLOBAL SABIC EUROPE SABIC IP NON-SABIC - KSA No. 7 THE RESULT Contract Management Contract Management Contract Management System System System Contract Management System SHEMs Procedures Policies & Regulations Best Practices No. 8 SABIC CONTRACTOR MANAGEMENT SYSTEM FEATURES? Robust Comprehensive Easy Contract Management System Clear Unified No. 9 SABIC CONTRACTOR MANAGEMENT SYSTEM BENEFITS? INPUT PROCESS OUTPUTS Contractor EHSS /Quality Compliance SHEMS Contractor Competency Procedures Policies/ Regulatory Improve Relationship / Engagement Contract Management System Contractor Management / Leadership Contractor Performance Best Practices Value, Business Growth and Continuity No. 10 SABIC CONTRACTOR MANAGEMENT SYSTEM PROCESS Registration Phase • Registration • EHSS & Technical Assessment Process. • Re-Qualification: • EHSS & Technical assessment process for existing contractors. • Planning: • Developing a clear Scope of Work and complete the Selection Process. • Pre-Execution: • Involve selected contractors in the Prior Arrival requirements, Mobilization of the manpower & equipment and prepare for next phase. • Execution: • Getting the site required Training & keep frequent Audit and Evaluation. • Post-Execution: • Site Restoration & Demobilization. ReQualification No. 11 SABIC CONTRACTOR MANAGEMENT SYSTEM PROCESS REGISTRATION/RE-QUALIFICATION PHASE No Service Provider as New Registration or ReQualification Fulfilled Requirements? (GPS) No Yes SABIC Contractor Qualification Team(SCQT) [under SQ Section] Qualified to be a vendor? Yes SABIC Registration Number/ReQualified No. 12 SABIC CONTRACTOR MANAGEMENT SYSTEM PROCESS PLANNING PHASE New Service Request thru SAP PR Fulfilled PR Requirements? GPS Yes (End User) GPS RFQ Contractor to Submit Bid EHSS & Technical Bid Evaluation (Site EHS/End User) No No Correct Gaps Contract Award Commercial Bid Evaluation (GPS) EHSS/Tech. Bid Acceptable? Yes No. 13 SABIC CONTRACTOR MANAGEMENT SYSTEM PROCESS PRE-EXECUTION PHASE Prior Arrival Training (Contractor) Conducted as per Matrix ? (End User) Yes Safety Induction Program I.D. Cards No Kick-off Meeting Points Cleared? Kick-off Meeting Equipment/ Tools Inspection Inspection Passed? No Yes No Permitted for Plant Entry Correct Gaps Yes Stickers Reject Entry No. 14 SABIC CONTRACTOR MANAGEMENT SYSTEM PROCESS EXECUTION PHASE Yes Is contractor ready for execution? Execution Preparation Certificate to Start Work Site EHSS Training (End User/ Contractor) Work Permit No No Contract period more than 3 months? Yes Declare completion of activities No Correct Gaps Found Gaps in Audit ? Frequent Audit & Evaluation Monthly Monitoring Report (contractor) Yes No. 15 SABIC CONTRACTOR MANAGEMENT SYSTEM PROCESS POST EXECUTION PHASE Contractor Ready for Demobilization from Site All points in Site Restoration Checklist cleared? Yes Site Restoration Certificate Final evaluation and report No Upload Final Evaluation Report in SABIC Supplier Portal No. 16 SUMMARY • SABIC & Contractors Partnership. • Contractors Engagement with SABIC System Development. • Having common systems at SABIC Sites. • Helping contractors by doing frequent Audits & Evaluation. No. 17 THANK YOU!