Scribd
Upload
128 views1 page

Reduction Cost

The toolkit provides tools and methodologies for cost management centered around principles based on client project experience. The tools include spend analysis, contingency estimation, activity-based operating budgets, and contract prioritization. The methodology focuses on cost reduction, cost management and control, performance management, and systems and transformational changes. The goal is to identify savings and efficiencies through challenges to unnecessary spending, activity-based analysis of costs, and process improvements.

Uploaded by

ucchauhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
128 views1 page

Reduction Cost

The toolkit provides tools and methodologies for cost management centered around principles based on client project experience. The tools include spend analysis, contingency estimation, activity-based operating budgets, and contract prioritization. The methodology focuses on cost reduction, cost management and control, performance management, and systems and transformational changes. The goal is to identify savings and efficiencies through challenges to unnecessary spending, activity-based analysis of costs, and process improvements.

Uploaded by

ucchauhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 1

Methodology summary Toolkit

Our toolkit is centered around a set of basic principles, with tools are based on actual client project experience, which
are constantly updated to incorporate new approaches and lessons learned.
Spend analysis pro forma

Management challenge
session

Estimation
Contingency
Review and challenge
non- activity based budgeted
cost for necessity

Inefficiencies

Estimation
Contingency

activity based
Operating
Budgets

Inefficiencies

Activity based budget review


to understand cost drivers and
challenge spend

Operating
Budgets

Current Year Revised Financial Plan

Actual

Unsupported
Balances

Current Year Financial Plan

Contract prioritization matrix

$m
Bottom-up Budgets

Savings

(Cumulative)

2005

2006

2007

2008

39.1

(4.1)

(5.8)

(5.9)

15.0%

(0.0)

(0.3)

(0.8)

2.1%

(By cost center)


Longer-term Business Cases

Procurement Savings

(0.1)
39.1

Longer-term Business Cases

(0.4)

1.0%

(4.1)

(6.2)

(7.1)

18.1%

0.0

(0.8)

(2.5)

(6.9)

(9.6)

(Out of scope variable cost saving)


(4.1)
Key:

Toolkit Areas
Cost Reduction
- Kick-off presentation
- Meeting approach, schedule, and agendas
- Spend analysis and rebudget pro forma
- Contracts review pro forma
- Management challenge session presentations

Bottom-up forecast
Top-down estimation pending clarification

Cost management
framework

Gap analysis
spider charts

Allocation
of budget
construction

3
2

Business
Process Execution

Contracts, Contractors
& Supply Chain

Budget owner
organizational
structure

Invoice processing
- Engage vendors for invoice

Transformation
- Business improvement plan
- Lean Principles Playbook (e.g., value stream mapping and waste
elimination)
- Change management methodology and tools
- Corporate Performance Management

Invoice processing
- Tulsa SLA updates and
process changes
- Automate approval
process with exception
parameters

structure and frequency


Initiate stamp approval and Contractor deployment
coding process and
& management
re-allocate resources
- Agree and implement
Define exception parameters
SPM
non-performance
repercussions
Contractor deployment &
management
- Agree Operations & PSCM
Integrated budget
support roles, DoA , etc
- Commence integrated
- Initiate field ticket validation
budget/forecast
& quality control process
processes using activity
plans and
- Take ownership of SPM
cost standards
- Leverage W MS to
Integrated budget
monitor monthly spend
- Define routine activity cost
against budget
standards
- AFE construction & Rig
Schedule process changes
-

Relative
Financial/
Operational
Impact

0
Drivers
for cost
increases

Systems and Transformational Changes

Supported

Cost
management
tools

1
Performance
Performance
Management
Management

Cost Management and Control


- Kick-off presentation
- Assessment framework and maturity matrix
- Gap analysis and spider charts
- Recommendations roadmap and prioritization framework

Recommendations
roadmap

Cost estimation and


budget construction
4

Cost Management & Control

Cost forecasting
and reporting

Immediate & Controllable Actions


Asset specific targeted
recommendations
Invoice processing
- Design field ticket support
package
- Resolve DoA interpretation and
application issues
Contractor deployment &

management
- Identify and dedicate PSCM
single points of contact
- PSCM resource technical
training
- Design field ticket quality
control process
Integrated budget
- Commence job

Budget owner skills,


training, and capacity

Anticipated
Benefits
Realization

execution analysis
Formalize and document
budgeting roles and processes

Degree of Difficulty
0 to 6 months

6 to 12 months

12 to 18 months

Principles

Simple tools to increase efficiency based on what has worked in the past,
tailored to your needs

Minimize time required to use the tools dont over-engineer the process

Cascading levels of detail as required by sponsors, team members,


and stakeholders

Rapid escalation of issues to facilitate decision-making

Intelligent Cost Reduction

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy