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205180 cm with jde
The document discusses Cenovus's implementation of Primavera PCM to improve its project cost tracking capabilities. Previously, Cenovus used an Access application for manual cost tracking and reporting. The new PCM solution will provide a centralized, integrated cost management system linked to its JDE ERP system and Primavera P6 scheduling software. The PCM implementation is part of Cenovus's larger E1 program to upgrade its IT systems and position the company for growth.
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205180 cm with jde
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- 2. Forward-looking information This presentationcontains certain forward-looking statements and other information (collectively “forward-looking information”) about our current expectations, estimates and projections, made in light of our experience and perception of historical trends. Forward-looking information in this presentation is identified by words such as “anticipate”, “expect”, “plan”, “forecast” or “F”, “target”, “could”, “focus”, “milestone”, “proposed”, “potential”, “projected”, “objectives”, “may” or similar expressions and includes suggestions of future outcomes, including statements about our growth strategy and related schedules, projected future value or net asset value, forecast operating and financial results, planned capital expenditures, expected future production, including the timing, stability or growth thereof, expected future refining capacity, anticipated finding and development costs, expected reserves and contingent and prospective resources estimates, potential dividends and dividend growth strategy, anticipated timelines for future regulatory, partner or internal approvals, future impact of regulatory measures, forecasted commodity prices, future use and development of technology including technology and procedures to reduce our environmental impact and projected increasing shareholder value. Readers are cautioned not to place undue reliance on forward-looking information as our actual results may differ materially from those expressed or implied. 2013 guidance, dated December 12, 2012, is based on an average diluted number of shares outstanding of approximately 766 million. It assumes Brent US$100.00/bbl, WTI of US$91.00/bbl; Western Canada Select of US$63.00/bbl; NYMEX of US$4.00/MMBtu; AECO of $3.40/GJ; Chicago 3-2-1 crack spread of US$20.00/bbl; exchange rate of $1.00 US$/C$. For the period 2014 to 2021 assumptions include WTI of US$90.00-US$105.00/bbl; Western Canada Select of US$76.00-US$85.00/bbl; NYMEX of US$5.25- US$6.00/MMBtu; AECO of $4.50-$5.25/GJ; Chicago 3-2-1 crack spread of US$9.00; exchange rate of $1.00-$1.07 US$/C$; and average diluted number of shares outstanding of approximately 769 million. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include: assumptions inherent in our current guidance, available at www.cenovus.com; our projected capital investment levels, the flexibility of our capital spending plans and the associated source of funding; the estimation of quantities of oil, bitumen, natural gas and liquids from properties and other sources not currently classified as proved; our ability to obtain necessary regulatory and partner approvals; the successful and timely implementation of capital projects or stages thereof; our ability to generate sufficient cash flow from operations to meet our current and future obligations; and other risks and uncertainties described from time to time in the filings we make with securities regulatory authorities. The risk factors and uncertainties that could cause our actual results to differ materially, include: volatility of and assumptions regarding oil and gas prices; the effectiveness of our risk management program, including the impact of derivative financial instruments and the success of our hedging strategies; accuracy of cost estimates; fluctuations in commodity prices, currency and interest rates; fluctuations in product supply and demand; market competition, including from alternative energy sources; risks inherent in our marketing operations, including credit risks; maintaining desirable ratios of debt to adjusted EBITDA as well as debt to capitalization; our ability to access various sources of debt and equity capital; accuracy of our reserves, resources and future production estimates; our ability to replace and expand oil and gas reserves; our ability to maintain our relationship with our partners and to successfully manage and operate our integrated heavy oil business; reliability of our assets; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; refining and marketing margins; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying manufacturing or refining facilities; unexpected difficulties in producing, transporting or refining of crude oil into petroleum and chemical products; risks associated with technology and its application to our business; the timing and the costs of well and pipeline construction; our ability to secure adequate product transportation; changes in the regulatory framework in any of the locations in which we operate, including changes to the regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon and other laws or regulations, or changes to the interpretation of such laws and regulations, as adopted or proposed, the impact thereof and the costs associated with compliance; the expected impact and timing of various accounting pronouncements, rule changes and standards on our business, our financial results and our consolidated financial statements; changes in the general economic, market and business conditions; the political and economic conditions in the countries in which we operate; the occurrence of unexpected events such as war, terrorist threats and the instability resulting therefrom; and risks associated with existing and potential future lawsuits and regulatory actions against us. The forward-looking information contained in this presentation, including the underlying assumptions, risks and uncertainties, are made as of the date hereof. For a full discussion of our material risk factors, see “Risk Factors” in our 2012 Annual Information Form and “Risk Management” in our most recent Management’s Discussion and Analysis, available at www.sedar.com and www.cenovus.com.
- 3. Agenda • About Cenovus •The E1 Program • Previous Toolset / Methods • PCM Solution • JDE Impacts • PCM Integrations • External Data/Users • Summary
- 4. Strong integrated oilportfolio Values are approximate. Forecast production based on midpoints of guidance dated December 12, 2012. Bitumen estimates and Cenovus land at December 31, 2012. *See advisory. **Includes an additional 0.5 million net acres of exclusive lease rights to lease on our behalf and our assignees behalf. TSX, NYSE | CVE Enterprise value $30 billion Shares outstanding 756 MM 2013F production Oil & NGLs Natural gas 188 Mbbls/d 515 MMcf/d 2012 proved & probable reserves 3.1 BBOE Bitumen Economic contingent resources* Discovered bitumen initially-in-place* Lease rights** 9.6 Bbbls 56 Bbbls 1.5 MM net acres P&NG rights 5.5 MM net acres Refining capacity 229 Mbbls/d
- 5. External link toSAGD Video: http://www.cenovus.com/videos/operations/sagd.wmv Internal link here: S6 Steam-Assisted Gravity Drainage (SAGD)
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- 7. Cenovus ERP Implementation E1Program Overview EnterpriseOne Program Deliver integrated processes and systems comprising the following business areas Supply Chain Management HR Finance Technology Capital Projects Asset Management One Cenovus Program January 2011 Oct 2012 21 months Key Drivers • Obsolescence of current JD Edwards system • Growth in capital spending & asset base • Position Cenovus to support growth HR Upgrading JD Edwards (JDE) HR module XE to 9.0. Also, MyWorld is changing Finance Upgrading JDE Finance module Supply Chain Management New! Implementing JDE for procurement management New! Primavera implementation for cost management, project planning and scheduling Capital Projects Asset Management Replacing JDE with Maximo for management and maintenance of assets throughout their lifecycle
- 8. Supply Chain Management & CapitalProjects Asset Management Human Resources & Finance • Greenfield Implementation • Implementation of JDE 9.0 for procurement and commitments • Upgrade of Primavera P6 for Capital Projects Scheduling • Implementation of Proof of Concept of Primavera PCM for Capital Projects Cost Control • New integrations • Migration from JDE Xe to Maximo • Data cleansing, migration, validation • 18 new integrations between JDE 9.0 and Maximo, 16 via Oracle Fusion Middleware • Custom developed Approvals Portal – Sharepoint, BPM, SOA • Upgrade from JDE Xe to JDE 9.0 • Data cleansing and migration – reduction of 2 TB of data • Migration of 50+ integrations to JDE 9.0, many very complex • 150+ DB integrations moved to DW • Implementation of ERP Workspace with Sharepoint User Productivity Kit – Documentation, Online Help and Training Cenovus ERP Implementation - Facts
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- 10. Previous Toolset/Methods • ProjectCost Tracker • Access Application • SQL Database • Manual Entry • Excel Reporting • Cost Reports • Spend Profile
- 11. Cost Code Structure TheCost Code Structure integrates the Work Breakdown Structure and the Cost Breakdown Structure for effective cost reporting and benchmarking Cost Code Structure Cost Breakdown Structure Work Breakdown Structure
- 12. AFE / Object /Subsidiary Project Cost Codes Cost Code Structure AFE / Object / Subsidiary Project Work Breakdown Structure (WBS) Actual Work Activities LEMs
- 13. PCM Solution • CostFocused • Field Solutions • Reserve future functionality • P6 Scheduling • Keep Touch Points in mind • Project Flexibility • Plant • Non-Plant
- 14. One Structure, ManyWays AFE Object Sub Resp Area Work Pkg Discipline Sub-Disc. Sub Activity LEM Code 8 4 3 2 4 4 4 2 1 Infrastructure 10137134 8762 454 CN B011 0530 0000 00 X Camp 11141087 8762 454 HO CENO CONT 0000 00 X Offsites 10136451 8762 476 CT W06L PILG 0000 00 X Earthworks 11142360 8762 352 EP TROC 0000 302K 00 X Operations 09128714 8762 322 05 PLNT 0251 0302 00 X Telephone Lake 11142722 8762 364 CN TRAN 0000 TRAN 00 X MOC 11138853 8762 322 EP A001 CL12 0244 00 X Plant Facilities 11137411 8762 476 CT F02F 0202 0102 00 X
- 15. PCM Solution • CostWorksheet – Project Cost Codes • Contracts • Budgeted – Project Budget • Committed – JDE Orders ( PO/SO/RO) • Custom – JDE AFE’s (Funding) • Purchase Orders – Unassigned Costs (JE/SV) • Changes – All Types • Proposals – Flash Trends • Trends – Receipts / Invoices (by JDE Line)
- 16. PCC’s in PCM Element Cost Code Cost Code Title Object Code (Custom Field) 29 Characters (30 Max) 31 Characters (34 Max) Character(4) Infrastructure 10137134-454CNB0110530000000X 8762-454-CN-B011-0530-0000-00-X 8762 Camp 11141087-454HOCENOCONT000000X 8762-454-HO-CENO-CONT-0000-00-X 8762 Offsites 10136451-476CTW06LPILG000000X 8762-476-CT-W06L-PILG-0000-00-X 8762 Earthworks 11142360-352EPTROC0000302K00X 8762-352-EP-TROC-0000-302K-00-X 8762 Operations 09128714-32205PLNT0251030200X 8762-322-05-PLNT-0251-0302-00-X 8762 Telephone Lake 11142722-364CNTRAN0000TRAN00X 8762-364-CN-TRAN-0000-TRAN-00-X 8762 MOC 11138853-322EPA001CL12024400X 8762-322-EP-A001-CL12-0244-00-X 8762 Plant Facilities 11137411-476CTF02F0202010200X 8762-476-CT-F02F-0202-0102-00-X 8762
- 17. JDE Tag File •PCC’s from PCM • No Account Masters • Unique Values • Status • Active – OK to Commit/Charge • Inactive – No new commitments • Closed – No new charges
- 18. JDE w/ ACAFields AFE Object Sub ACA 1 ACA 2 ACA 3 8 4 3 6 11 0 Infrastructure 10137134 8762 454 CNB011 0530000000X - Camp 11141087 8762 454 HOCENO CONT000000L - Offsites 10136451 8762 476 CTW06L PILG000000E - Earthworks 11142360 8762 352 EPTROC 0000302K00M - Operations 09128714 8762 322 050251 0251030200O - Telephone Lake 11142722 8762 364 CNTRAN 0000TRAN00S - MOC 11138853 8762 322 EPA001 CL12024400T - Plant Facilities 11137411 8762 476 CTF02F 0202010200X - Resp (2) + Area (4) Sub Activity (2) + LEM Code (1) CWP Work Pkg (4) + Disc / SubDisc (4) (Discipline)
- 19. PCC Validation • AFEof Interest? • Cat Code Populated • PCM Project Name • PCC Combination • Does a match exist? • PCC Status • Available for commitment
- 20. AFE’s (Funding) • Startedin AFE Navigator (Add-on) • Account Master Level • AFE.Object.Subsidiary – No WBS • AFE12345.OBJ.SUB.0000000… • Flagged w/ Category Code • PCM Project Name
- 21. AFE’s (Funding) • Startedin AFE Navigator (Add-on) • Account Master Level • AFE.Object.Subsidiary – No WBS • AFE12345.OBJ.SUB.0000000… • Flagged w/ Category Code • PCM Project Name
- 22. Changes – AFE’s •Supplements • Started in AFE Navigator • Account Master Level
- 23. Project Budget • StatusDriven • Project Estimate – Unapproved • Baseline Budget – Approved • Project Cost Code Level • Data Length Bound • AFE-RCAREAWPKGDISCSAL • OBJC-RC-AREA-WPKG-DISC-SA-L
- 24. Changes – Budget •Anticipated Changes – Flash Trends • Project Code Level • Realized Changes – Budget Change Mgmt. • Project Cost Code Level • Types: Trend, Scope, Budget Transfer • Funding: Contingency, Mgmt. Approved
- 25. Commitments • JDE Orders •Purchase Orders • Contracts • Service Orders • Project Cost Code Level • AFE.OBJ.SUB – Standard Fields • PCC – Adv. Cost Accounting Fields • Order Suffix = ‘000’ • No Revisions to existing lines
- 26. Changes - Commitments •JDE Orders • Project Cost Code Level • AFE.OBJ.SUB – Standard Fields • PCC – Adv. Cost Accounting Fields • Order Suffix > ‘000’ • New Lines only • No Revisions to existing lines
- 27. Receipts & Invoices •JDE Orders • Project Cost Code Level • AFE.OBJ.SUB – Standard Fields • PCC – Adv. Cost Accounting Fields • PCM Trends module • Linked to Commitments • Actual Received – Invoices • Actual Expended – Receipts
- 28. Unassigned Costs • JDEJournal Entries • JDE Standard Vouchers • $0 PCM Purchase Orders • Invoices for Actual Amounts
- 29. JDE PCM Account MastersCost Worksheet AFE’s Contracts - <Custom> Supplements Change Orders JDE Orders – (PO/SO/Contract) Contracts – Committed JDE Receipts Trends – Actuals/Expended JDE Invoices Trends – Actuals/Received Journal Entries PO’s / Invoices (Unassigned) Standard Vouchers PO’s / Invoices (SV-VendorID) JDE – PCM Integrations JDE PCM Cat Code 28 Value Manual Project Name Tag File Cost Worksheet
- 30. JDE – PCMIntegrations • Match Point • AFE Category Code • Project Name • Frequency Daily • Toolset • MTG Frameworks
- 31. Non-JDE Data • ProjectCost Codes • Baseline Budget • EP Change Managements • EP Commitments
- 32. PCM Utilities • MatchPoint • Project Name • User Driven • Toolset • Java Application • Excel Templates
- 33. Cost Report • AllPCM Cost Codes • Account Master • Project Cost Codes • Sections • Budget – Baseline + Changes • Commitments – JDE / Non-JDE • Received – JDE / Non-JDE / JE&SV • Invoiced – JDE / Non-JDE / JE & SV
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- 35. Spend Profile • SummarySpend Plan • Roll-up • Directs – Discipline • Indirects – Subsidiary Code • Forecast Line Item Codes • Trends Module • Actuals Issued
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- 37. Summary • Successes • Issues •Concerns • Lessons Learned • Next Steps • Q&A