Braskem s Project and Portfolio Management. Contini, Tiago

Transcription

1 Braskem s Project and Portfolio Management Contini, Tiago

2 Speaker Bio Tiago is Telecom Engineer and Certified Associate in Project Management (CAPM) with over 5 years of experience in IT Project Management and 4 years of experience in PMO In his current role as PMO Member at Braskem, Tiago is responsible for CA Clarity PPM administration and for the Process of Portfolio Management Before joining Braskem, Tiago worked several years, managing IT support teams

3 Summary About Braskem Scenario before CA Clarity PPM Braskem s processes and requirements Idea Management Processes Project Management Processes Portfolio Management Process Scenario with CA Clarity PPM

4 Brazilian Petrochemical Company Competitive Integration Extraction 1st generation 2nd generation 3rd generation Naphtha Added Value Condensate Competitiveness Raw Materials Basic Petrochemicals Thermoplastic Resins Plastic Converters Market Leadership #1 Petrochemical company of Latin America Cost Competitiveness Scale Integration Technological Autonomy Know-How

5 18 Industrial Units Chlorine / Soda PVC HDPE / LLDPE HDPE/UHMWPE Alagoas Bahia Chlorine/Soda HDPE/LDPE/LLDPE LDPE LLDPE LDPE / EVA LDPE / EVA HDPE HDPE São Paulo Basic Products PVC Triunfo Basic Products Polypropylenes Polypropylenes PVC Specialties Polypropylenes

6 Economic Financial Performance Gross Revenue Net Revenue R$ 23,0 bi R$ 18,0 bi EBITDA Exports R$ 2,4 bi US$ 2,2 bi Source: Braskem

7 Innovation and Technology R$ 70 million in innovation projects in 2008 Over US$ 330 million in assets 169 researchers 219 patents filled 8 pilot plants 17% of the revenue obtained in 2008 by resin sales is due to products launched in the market in the last 3 years.

8 Innovation and Technology Green Polymers 1st company in the world to certify a 100% renewable polymer POLYETHYLENE POLYPROPYLENE Awards

9 High Level of Corporate Governance Level 1 of Corporate Governance at BOVESPA 100% tag-along for shareholders Compliance with SOX Code of Practice: Establishes values, principles and practices that regulate the company s actions Ethics Committee Internal Audit Pre-established corporate policies Negotiation of estate values Financial Management Insurance and Guarantees Health, Safety and Environment Social Responsibility Committees Fiscal Council Finances & Investment People & Organization Strategy & Communication Incentive Plan, allowing to align interests with value generation Four independent members in the Council Information system for the Administration Council and the Fiscal Council

10 New Projects Green Polyethylene Ethylene-alcohol: Commitment to Sustainability Construction start / Cornerstone: April 2009 Pilot Plant Production: ~ 12 mt/year Operation start: 2011 Investment: R$ 488 million Plant of ethylene from 200 Kt ethanol Estimated demand: ~ 500 Kt Ethanol consumption: 460 million liters Target markets: United States, Europe and Japan Industries: Auto parts and consumables Partnerships with national and multinational Food, auto parts and cosmetic sectors 100% renewable raw material: Sugar cane ethanol

11 Growth Investments 30 kton HC Resinas Camaçari 1,200 kton PE Venezuela 450 kton PP Venezuela 300 kton PP Camaçari 350 kton PP Paulínia 130 kton Special Solvents Camaçari 200 kton Green PE RS 200 kton PVC Alagoas Projects in evaluation: Peru PE/ Ethylene cracker Bolivia PE/ Ethylene cracker Brazil PE- PP/ Heavy oil cracker Source: Braskem

12 Braskem Vision: evidence in the global scenario: Presence among top 10 Paulínia Trikem Polialden Politeno 2006 Ipiranga / Copesul 2007 Petrochemical Triunfo Become leader in thermoplastic resins in Latin America Be among the top 10 petrochemical companies in the world in market value Revision of 2012 Strategy Revision of 2020 Strategy Source: Braskem

13 Sumary About Braskem Scenario before CA Clarity PPM Braskem s processes and requirements Idea Management Processes Project Management Processes Portfolio Management Process Scenario with CA Clarity PPM

14 Scenario before CA Clarity PPM Well defined processes: ideas, project and portfolio management; 40 portfolio evaluation variables; Excel basis tool; Five small portfolios (by business unity) and one big portfolio (all Braskem); To much time from portfolio inventory to portfolio approval; Decentralized Management over all the portfolio process (inventory, approval and following); Low control over Project Management (cost, time, scope changes, etc.); The Challenge Find a software that meets all Braskem s requirements and needs.

15 Summary About Braskem Scenario before CA Clarity PPM Braskem s processes and requirements Idea Management Processes Project Management Processes Portfolio Management Process Scenario with CA Clarity PPM

16 Braskem s Processes and Requirements Idea Management Inventory Individual Approval Ideas Portfolio Approval Project Management Engineering Approval Capital Approval EA EA ExA Project Management FEL 1 Business Assessment FEL 2 Conceptual Engineering FEL 3 Basic Engineering Execution Detailed Construction Engineering Operation Performance Evaluation DR1 DR2 DR3 DR4 DR5 Portfolio Management Inventory Categorization Small (BU) Portfolio Evaluation and Balancing Braskem s Portfolio Evaluation and Balancing Braskem s Portfolio Authorization Braskem s Portfolio Reevaluatio n Braskem s Requirements Support all Processes (workflow approbations); Centralized Management to all Processes; Centralized and secure Data Base; Easy to use; Information on demand (correct and fast); Graphical Analysis; Multi-user operability and Web based application; All world support; Over 600 projects a year (over MMU$ 670); According to PMI Process;

17 Sumary About Braskem Scenario before CA Clarity PPM Braskem s processes and requirements Idea Management Processes Project Management Processes Portfolio Management Process Scenario with CA Clarity PPM

18 CA Clarity PPM Idea Portfolio Management Inventory Idea Score

19 CA Clarity PPM Idea Portfolio Management Individual Approval (Workflow at Clarity) Idea Portfolio Approval (Graphical Analysis) Project Management

20 CA Clarity PPM Project Management - Centralized Data Base Project Charter Project Name; Project Number; Project Scope; Project Objectives; Project Category; Project Start and End Date; Braskem Project Unit; Project Manager;

21 CA Clarity PPM Project Management Project Life Cycle All phases (FEL1, FEL2, FEL3, EXECUTION, OPERATION) and gates (DR1, DR2, DR3, DR4, DR5) using Clarity action items and Workflow.

22 CA Clarity PPM Project Management Engineering Approval Electronic Approval using Clarity forms, action items and workflows.

23 CA Clarity PPM Project Management Document Management

24 CA Clarity PPM Project Management Project Team

25 CA Clarity PPM Project Management Scope Changes Control Registry Change Aprovation (Clarity Workflow)

26 CA Clarity PPM Project Management Capital Approval Electronic Approval using Clarity forms, action items and workflows.

27 CA Clarity PPM Project Management Time Management

28 CA Clarity PPM Project Management Cost Management

29 CA Clarity PPM Project Management Cost Management Budgeting and forecasting by WBS

30 Portfolio Management Process Overview Process Steps Responsabilities Process Review Project Categorization Small Portfolio Analysis Braskem s Portfolio Analysis Braskem s portfolio approval ExComitee Strategic Planning Definition Definition of Budget Restrictions Braskem s Portfolio Approval PMO Process Revision (if necessary) BU support Braskem s Portfolio Analysis Business Units Comitee Portfolio Approval BU Portfolio Manager Validating information Portfolio Analysis PMO Follow-UP Project Sponsor Project Identification Portfolio Balancing PMO Portfolio Management Business Unit Support Portfólio Day BU Corporative Areas

31 Portfolio Management Buckets Braskem Methodology has five types of Buckets to evaluate different as well: Increase Profitability / Competitiveness Bucket 1 - Projects which primary motivation is to increase profitability or competitiveness of Braskem. Risk Mitigation /Operational Continuity Bucket 2 - Projects which main motivation is to reduce risk and operational continuity. Infrastructure and Support Bucket 3 - Projects which main motivation is infra-structure Strategics Bucket 4 - Projects to create new levels of cash flow. Special Bucket 5 - Investment needed to develop basic engineering.

32 Portfolio Management Characterization The systematic prioritization has two main elements: Buckets - Grouped projects with similar characteristics; Dimensions Forms the basis of comparison between projects; Description Motivation Content Buckets Sets of comparable projects Difficulty of comparing Project Dimensions Elements of comparison projects Allow investments to be compared in many aspects Criteria and parameters

33 Portfolio Management Scoring Dimensions Keep? Dimensions Keep? Project Basic Information Market Attractiveness Project Brief Description Marketing Feasibility Dimensions Project Team Timing Strategic Leverage Score Balance Technology Attractiveness Technical Feasibility Financial Are there any dimensions, other than what was in the portfolio tool, that should be considered? List of Dimensions Criteria: Project Basic Information Risk? Importance Project Name N/A Criterial Project Basic Information Process Program Type Project Stage Project Status Is the criteria used in the Strategic Portfolio Management tool relevant and calibrated? N/A N/A N/A N/A Risk Yes No Importance Range Low (L), Medium (M), High (H) Strategic Leverage Score Weight Parameters Parameters Criteria 1. Congruence 2. Impact 3. Proprietary Position 4. Durability XX% XX% XX% XX% Only peripheral fit with business strategies? Minimal harm, no noticeable impact if program dropped? Easily copied? No distinctive advantage, quickly leap-frogged? Modest fit, but not with a key element of strategy? Moderate competitive and financial impact? Protected, but not a deterrent? May get a good few years? Good fit with key elements of strategy? Significant impact, difficult to recover if program is unsuccessful or dropped? Solidly protected with trade secrets, patents, serves captive customers? Moderate life cycle? Strong fit with several key elements of strategy? Business unit future depends on this program Position protected? through a combination of patents, trade secrets, raw materials access? and so on Long life cycle? 5. Synergy with other operations within the corporation XX% Limited to single application? Could be applied to another application? Could be adopted or have impact among several areas? Could be applied outside the BU?

34 Portfolio Management Parameter Evaluation Alinhamento Strategic Estratégico Alignment Verificar a aderência do projeto a estratégia corporativa da Braskem, considerando elementos como alinhamento às diretrizes estratégicas, desenvolvimento de competências, sinergias internas e externas, e impacto positivo geral Critério Alinhamento com as Diretrizes da Estratégia a- Excelência operacional b- Matéria-prima competitiva c- Aumento de rentabilidade em mercados em que já atuamos d- Desenvolvimento de novos mercados Desenvolvimento de Competências Diferenciadoras Sinergias Impacto Geral (meioambiente, segurança, imagem da Braskem, responsabilidade social) Peso 40% 20% 20% 20% Não traz competência diferenciadora Parâmetros Possui alinhamento indireto às Possui alinhamento com diretrizes estratégicas da diretrizes estratégicas da Braskem Braskem Traz perdas 0 Provoca perdas Não traz ganhos de sinergia Fortalece suas competências diferenciadoras atuais / traz nova competência que competidores já possuem Traz ganhos de Traz ganhos de sinergias internas sinergias externas (entre UNs) (fornecedores, competidores, clientes) Possui forte alinhamento com diretrizes estratégicas da Braskem Traz nova competência diferenciadora Não causa impacto positivo Traz ganhos de sinergias internas e externas Causa impactos positivos Causa grandes impactos positivos

35 Portfolio Management Bucket Selection Bucket selection by project Sponsor:

36 CA Clarity PPM Portfolio Management - Project Characterization Dimensions Complexity Strategic Alignment Context Attractiveness Tecnichal Attractiveness Quantitative Benefits

37 CA Clarity PPM Portfolio Management - Project Characterization Strategic Alignment Criterial Parameters

38 CA Clarity PPM Portfolio Management - Scorecard

39 CA Clarity PPM Portfolio Management Evaluation Tool - Efficient Frontier Ex: Best Choice (Score x Budget)

40 CA Clarity PPM Portfolio Management Evaluation Tool Graphical Analysis Bucket 1 - Bubble Graph NPV x Strategic Alignment x Cost x Risk NPV Strategic Alignment

41 CA Clarity PPM Project and Portfolio Management Dashboard

42 Actual Scenario Since Jan/2006; All Braskem's Processes (Idea, Project and Portfolio) running in Clarity; Over 600 users; Over 7000 projects (700 actives); More than 18 Industrial Units over 4 different states; One Click information for all management levels; VP approbation level; Centralized data base and information; Centralized Portfolio Management (PMO at Camaçari, Bahia); All World support; Fast portfolio scenarios; Be among the top 10 petrochemical companies in the world in market value

43 Questions?

44 Please complete a session evaluation form The number for this session is PP409SN After completing your session evaluation form, place it in the basket at the back of the room 44 May 16-20, 2010 Copyright 2010 CA. All rights reserved.