Oracle Industry Solutions For Mining

Transcription

1 <Insert Picture Here> Oracle Industry Solutions For Mining Judy Hamlin Industry Principal

2 SAFE HARBOR STATEMENT The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

3 Agenda Oracle s Industry Position Industry Business Drivers Oracle s Solutions <Insert Picture Here> 3

4 <Insert Picture Here> Oracle s Industry Position 4

5 Natural Resources 4 of the Top 10 Coal Mining Companies Use Oracle Applications to Run Their Business 4 of the Top 7 Steel Companies Use Oracle Applications to Run Their Business 4 of the top 8 Metals Mining Companies 4 of the top 10 Gold & Silver Mining Companies Use Oracle Applications to Run Their Business Use Oracle Applications to Run Their Business 5

6 Key Natural Resource Customers 4 of the Top 8 Metal Mining Companies 4 of the Top 7 Steel Companies 6

7 Oracle Market Position Mining Oracle Is Committed To Mining Companies 4 of the top 10 Coal Mining Companies run Oracle Applications 4 of the top 10 Gold and Silver Chemical Companies run Oracle Applications 4 of the top 10 Metal Mining Companies run Oracle Applications The new Oracle tools give Solid Energy the functionality we need to make better decisions about overhaul and replacement of assets, preventive maintenance routines, and rationalization of spare parts and rotables. By ensuring we have accurate records of maintenance and expenditure on assets, we can determine the condition of assets at any given time and identify a poorly designed plant so it can be redesigned. And Oracle Has A Strong Value Proposition For Them Strong Mining application footprint EAM, Process Mfg., Distribution, Fuels, Supply Chain, Projects, etc. Oracle has the lowest Total Cost of Ownership Software Hardware Professional Services Fastest speed to implementation And Provides the shortest time to benefit realization -- Warren Maslin, Chief Financial Officer, Solid Energy 7

8 Oracle Customers Mining The new Oracle tools give Solid Energy the functionality we need to make better decisions about overhaul and replacement of assets, preventive maintenance routines, and rationalization of spare parts and rotables. By ensuring we have accurate records of maintenance and expenditure on assets, we can determine the condition of assets at any given time and identify a poorly designed plant so it can be redesigned. -- Warren Maslin, Chief Financial Officer JD Edwards (now Oracle) significantly lowered our operating costs, improved our efficiency, Helped us face the challenges posed by technologies and also facilitated smooth execution of our exports. The net effect has been An improvement of quality and the reduction of costs. -- Nayan Pansare, Chief Financial Controller 8

9 Customer Success Story $23B world s leading producer of aluminum Includes manufacturing, mining and utility operations 39 countries, 350 manufacturing plants, 127K employees Live on 11i at 57 sites Discrete & Process Manufacturing, Order, Configurator, iprocurement, Supply Chain Planning, Financials, HR, Enterprise Asset, Project Costing Design partner for Enterprise Asset Management 10K users performing 55K concurrent requests per day Realized Business Benefits Implemented requisition-to-pay solution 20% below projected cost Reduced accounts payable transaction processing costs by 89% Increased use of online procurement tool by 295% Drastically reduced req-to-pay cycle times Converted more than 10,000 monthly paper check payments to electronic Enabled acquired company to be integrated in 120 days Expected Business Benefits 25% inventory reduction 15% productivity increase 5% material cost savings 15% cycle time reduction 20% improvement in customer service 9

10 Oracle Proven Results Sample in Natural Resources Scope Global Timeline Systems Replaced Notes Solid Energy E-business suite Global single instance 6 months Upgrade Oracle & legacy, standalone procurement & maintenance Systems Deployed Oracle Balanced Scorecard for management information Deseret Power E-business suite North America (Coal Line & Power Plant ) 22 weeks Legacy On time and under budget Barrick E-business suite Multiple mine sites rolling out to HQ 24 months Legacy system, standalone proc urement & maintenance systems, some new Mine site implemented as phase 1, head office to follow Posco E-business suite Global Single Instance 28 Months Multiple Implemented new global business processes and standardized Alcoa E-business suite; Strategic Network Optimization 47 Sites 7 months* 43 legacy Procurement & Finance systems Implementing order-to-cash (25 sites live), Enterprise Asset Management (7 sites live) and Human Resource 10

11 <Insert Picture Here> Industry Business Drivers 11

12 Key Natural Resource Drivers Industry Consolidation Merger and acquisition activity increasing along with joint venture activity Disparate systems result in high maintenance costs and poor access to corporate-wide information Need to be able to assimilate new acquisitions quickly Globalization Customers, supply chain, and competition have all become global Additional functional and business process requirements New governmental and compliance issues Escalating Cost Pressures Energy, labor and raw material prices impacting return on capital Need to improve operational effectiveness for supply chain planning, transportation, procurement and capital projects. Fluctuating Market Demand Up and down cycles challenge product mix and expansion/consolidation planning Current up cycle provides cash to improve infrastructure 12

13 Current trends Fluctuating commodity prices Market consolidation Goal of creating efficiencies and acquiring market share and reserves CEO s desires to become largest Search for new uses for output Desire to negotiate long term contracts Environmental issues Substantial investment in R&D for process improvement 13

14 Mining Industry Characteristics & Value Drivers Heavy utilization of capital assets, 24x7 operations Primary control is cost containment and process enhancement Quality (assay content) of product drives operations and production planning Optimize Asset Performance is key driver Maximize availability, reliability AND utilization Reduce operating costs; maintenance is key variable Minimize spare parts inventory & carrying costs Monitor production cost statistics & adjust processes Financial & Operation Visibility Report/inquire on consolidated information from all sites Reduce/Delay Capital Expenditures Rationalize each sites contribution to entire operation 14

15 Value Awareness Issues Asset Management Maximize ROA Maximize equipment utilization and reliability / minimize down-time Minimize equipment maintenance cost Maintenance prioritization by criticality Spares inventory reduction Workforce Management Efficient processing of trade labor payroll, and reporting Reduced labor administration costs in the back office Site Optimization Optimize mine site production through performance measurement Facilitate deployment of resources to maximum benefit. Revenue / Capital maximize the return on invested capital, i.e, maximize the productivity of plant and heavy equipment. 15

16 Value Awareness Issues Gross Margin/Cash Cost of Production minimization of direct site operations costs with improved efficiency, minimization of mine site operating costs, and ultimately cash cost of production. Revenue Growth driven by increased productivity of fixed assets and product quality SG&A/Revenue minimize overhead that burdens operations. Systems Flexibility Ease of reporting / performance measurement / consolidation of remote sites Ease of systems implementation on remote site / portability of systems Improved back-office staff productivity 16

17 <Insert Picture Here> Oracle s Solutions 17

18 Oracle s Value Proposition for Mining Oracle is committed to the Mining Industry Deep mining application footprint Global access to metrics and flexibility to respond to changes in the business environment Lowest cost of ownership & fastest time to benefit 18

19 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Mining Asset Lifecycle Management Mining Operations Supply Chain Management Enterprise Management/Collaboration Technology CONFIDENTIAL DRAFT 19

20 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Geological Modeling* Enterprise Mine Planning Supply Chain Planning Enterprise Budgeting Mining Asset Lifecycle Management Mining Operations Supply Chain Management Enterprise Management/Collaboration Technology * 3 rd Party Solution CONFIDENTIAL DRAFT 20

21 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Mining Asset Lifecycle Management Project Portfolio Management Project Management Project Costing Asset Maintenance Asset Decommissioning MRO & Service Procurement Mining Operations Supply Chain Management Enterprise Management/Collaboration Technology CONFIDENTIAL DRAFT 21

22 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Mining Asset Lifecycle Management Mining Operations Mine Planning* Mine Dispatch & Operations* Production Reporting Preparation Plant Management Stockpile Management Blend Management Environmental * Health & Safety Supply Chain Management Enterprise Management/Collaboration Technology * 3 rd Party Solution CONFIDENTIAL DRAFT 22

23 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Mining Asset Lifecycle Management Mining Operations Supply Chain Management Supply Chain Planning Assay Management Contract Management Sales Management Price Management Transportation Planning Transportation Execution Enterprise Management/Collaboration Technology CONFIDENTIAL DRAFT 23

24 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Mining Asset Lifecycle Management Mining Operations Supply Chain Management Enterprise Management/Collaboration General Ledger Payables Receivables Cash Management Fixed Assets Business Intelligence Scorecard Reporting Technology Human Resources Payroll Training Benefits Time & Labor Recruitment CONFIDENTIAL DRAFT 24

25 Mining Solution Map Suppliers Capital Project Asset Extraction Processing Logistics Sales & Marketing Customers Business Planning Mining Asset Lifecycle Management Mining Operations Supply Chain Management Enterprise Management/Collaboration Technology Service Oriented Architecture Systems Management Identity Management Enterprise Application Server Grid Computing Security BPEL CONFIDENTIAL DRAFT 25

26 Complete Asset Lifecycle Management Integration Out of The Box Balanced Score Card AR Fixed Assets Dispose Business Modeling Capital Plan General Ledger Planning & Budgeting Decommission AP Budget Time & Labor isupplier Manage Maintain Assets Design/ Specify Configurator OSN iproc Inventory Operate Install Construct/ Procure Purchasing Projects Property Production Service 26

27 Know More Visibility to Key Performance Metrics Do More Enable New Business and Growth Strategies Spend Less Total Cost of Ownership, Time to Value, Risk 27