Integrated Business Management System

SPD’s management systems and organization of the company are another important success factor in addition to its people and technologies. A straightforward and streamlined organizational structure with clear functional duties and transparent management system and reporting lines facilitate the operation of the company as a single whole and contribute to its performance.

SPD supports a high level of integration of its operations and information flows. One example is its Well and Reservoir Management project, which involves several business units and departments in an integrated way, allowing the company to quickly and safely perform its drilling programme, optimizing the position of the wells, their robustness and high availability, and assuring maximum recoveries and a low level of operating costs in the long term.

To maintain the costs of operations at a low level, SPD implements a number of programmes in the area of data quality and business process management. One such project, the MAYAK data quality management project, is aimed at creating a new system to collect, process, store and use information. SPD has already developed standards and principles that will determine the organization of the single data base of the company. All employees who have access to the data base will get instantaneous access to updated and reliable information, which is only one click away. Consequently, SPD employees will spend less time looking for data and checking it, which will considerably simplify the process of making reports.

SPD seeks to continuously improve its business management processes. For the purpose, the company uses the LEAN methodology as a tool to optimize its processes. The methodology is extensively used in manufacturing companies, and in particular, in the automotive industry. The approach is to break down every process into its constituent elements, some of which contribute to the end result, and some do not. A traditional approach to the optimization of business processes is to improve the efficiency of the overall effort to achieve the result, while the LEAN methodology will mainly focus on those activities that do not play a role in achieving the end result. Having adopted this methodology, SPD is actively working to identify and eliminate such wasteful activities to improve the overall efficiency and reduce costs. The LEAN programme has a potential to considerably improve processes in all departments of the company. SPD is implementing a number of projects already, including those aimed at improving the performance of ESPs, well testing operations, water sampling activity and others.

SPD uses advanced management tools to optimize its operations, including an integrated system resource planning and accounting system based on SAP R/3 software. The current version of this solution under the internal corporate name EP Blueprint was implemented by the company in January 2004. Its Project Management and Maintenance Management modules enable detailed planning of all activities in these areas. Based on these detailed plans, SPD puts together cost forecasts, determines the need for internal resources, as well as external services and materials, which are then transferred to a Materials Management module. This module incorporates smart tools to manage contracts with external vendors, optimize inventories and monitor actual costs at all stages of the process. Efficient use of the Finance module and the Controlling module, as well as the use of a Special Ledger allows accountants to prepare tax reports, maintain fiscal and cost accounting in line with requirements of the Russian law, and provide corporate reports to shareholders in a timely manner and in accordance with international standards. Adoption of the SAP R/3-based EP Blueprint system allows the company to solve principal tasks: provide automation and transparency across operations, reliability and accuracy of uniform data, improved business controls, and interactive approvals and reporting. In particular, the integrated planning system is being used to optimize internal resources and interfaces with company departments, aimed at a joint solution for integrated goals in drilling, construction of oilfield facilities, as well as in the repair of earlier commissioned assets.