doing business with ethics and integrity -- phe wmo...
TRANSCRIPT
SUPPLY CHAIN MANAGEMENT DOING BUSINESS WITH ETHICS AND INTEGRITY
-- PHE WMO PERSPECTIVE --
PHE WMO – SUPPLY CHAIN MANAGEMENT
Vendors Day Bersama – East Java 2017
Batu, 27 – 28 Juli 2017
PHE WMO OVERVIEW
CORE VALUES & CPI RESULTS
ETHICS & INTEGRITY LEADERSHIP
Contents
1
2
3
2016 Awards & Achievements:
•Zero Accident (TRIR = 0)
•Gold PROPER (Ministry of Environment)
• ISRS-8 Level 6 (DNV)
•Local Content Award (Ministry of ESDM)
•MURI Award on ISO14064 Certification and
ISO9001 Certification for Integrated SCM
•Patra Nirbaya Karya Madya (Ditjen Migas)
•Career Development Management Award
(SKK Migas)
•Fuel & Operational Efficiency Award (SKK
Migas)
•Oil & Gas Production Target Achievement
(SKK Migas)
•Patra Adikriya Madya (Pertamina)
•Local Hero Award (Pertamina)
Area: 1,666.26 km2
13,450 Oil (BOPD)
Gas (MMSCFD) 103.84
9,430
103.25
Production Profiles 2015 2016
Oil Prod Declining Rate 49.8% 24%
PHE WMO Profiles & Achievements
Milestone 1
International Standards & Best Practices ISO 14001 (2016) OHSAS 18001 (2015) ISRS-8 Level 6 (2016) Proper Gold (2016) ISO 9001 (2016 - SCM) HSE Management System CDM (HR)
[ 2-3 Years ] Top Three East Java Oil
& Gas Producers ISRS-8 Level 7 (DNV) Independent Safety
Culture [DuPont Chart]
ISRS-8 Level 8 (DNV) Culture of Quality
(Dupont)
Best-in-Class Leader Position [Top
10%] ISRS-8 Level 8 (DNV) Green Company Comprehensive
performance measurement
Employs state of the art information systems
Adopts cost effective technology
Works in collaborative cross functional terms
Milestone 2
Milsetone 3
World Class
[ 5-6 Years ] Top Ten National Oil &
Gas Producers ISRS-8 Level 8 (DNV) Interdependent Safety
Culture [DuPont Chart] Proactive Organization
(Dupont Chart) ISO 31000
Vision
Mission
To be a world-class oil and gas company
To maximize the oil and gas potential of West Madura Offshore through safe and reliable operations for the benefit of stakeholders.
2025
Journey to the World Class Standards
Asset Key Indicators
Reserve & Production Growth
• Exploration N-7 & Boyo-1 • Wells Development
12A1/12A2/2A3 & 24 • Oil & Gas 28,361 boepd
• Seismic for PHE-2, Exploration fo PHE-11 & PHE-10
• Wells Development PHE-7 & PHE-48
• Oil & Gas 45,137 boepd (Year 2021)
• Wells Development N-7, PHE-53, PHE-2, Ngimbang & Basement, PHE-11 Phase-1 & Pase-2
• Oil & Gas 54,689 boepd (Year 2027)
Operational Excellence • TRIR: 0 • ISRS-8 Level 7 • Reliability & Integrity:
98.50%
• TRIR: 0 • ISRS-8 Level 8 • Reliability & Integrity:
99.00%
• TRIR: 0 • ISRS-8 Level 8 • Reliability & Integrity:
99.50%
Cost Efficiency • Opr. Cost $15.25/BOE • Opr. Cost $10/BOE • Opr. Cost $8/BOE
People Development • Critical Position is fullfilled • Technical & Leadership Competeny
• Technical & Leadership Competeny
o High declining rate of oil production
o Demand-dependant for gas sales
o Expensive fit-for-purpose technology
Long Term
Medium Term
2018 – 2022 2023 - 2031
Challenges
Sustainable Growth Challenges
Short Term
<Quick Wins>
2016 - 2017
CLEAN
COMPETITIVE
CONFIDENT
CUSTOMER-FOCUSED
COMMERCIAL
CAPABLE
Corporate Core Values
CLEAN Professionally managed, avoiding conflict of interest, no tolerance to bribery,
uphold trust and integrity - in accordance to good corporate governance practices
Transparency & CPI Index 2016
Transparency International (TI) defines corruption as the abuse of entrusted power for private gain. This definition encompasses corrupt practices in both the public and private sectors. The Corruption Perceptions Index (CPI) ranks countries according to perception of corruption in the public sector. The CPI is an aggregate indicator that combines different sources of information about corruption, making it possible to compare countries.
Source: Transparency International
The Position of Indonesia In Asia
SPEED
COMPLI
ANCE
SPEED
COMPLI
ANCE ETHICS
& INTEGRITY
Supply Chain is frequently required to entertain urgent needs or quick action,
where at the same time compliance to applicable rules and regulations must also
be met...
Supply chain costs typically represent at least ~70%-80% to overall company budget
ETHICS • Right or Wrong • Dynamic • Society • Subjective
LAW • Legal or Illegal • Static • Government • Objective
Integrity • Consistently comply with
company regulation, policy and procedure, conducts, morale and norms
• Is doing the right thing even when nobody is watching
(C S Lewis)
Ethics • Character, norms, morals &
ideals prevailing in a group, society
• They give an idea of what is right or wrong, true or false, fair or unfair, just or unjust, fairness, respect
The Nature of Ethics
PHE WMO’s Integrity Leadership Policy and Activities
PHE WMO Code of Conduct (Employees) PHE WMO Code of Conduct (Business Partners) Laporan Harta Kekayaan Penyelenggara Negara Roadshows / Town halls on Integrity Awareness Policy Guidelines on Gifts and Entertainment
during festive seasons (Hari Raya Lebaran, Hari Natal & Tahun Baru, etc.)
“No PO No Delivery”, “No PO No Pay” Policy PHE Whistleblowing System Internal Audits
Ethics and Integrity Leadership in PHE WMO
• PHE WMO is a company that conducts its business in an ethical and
responsible way, meets its environmental obligations and strives to contribute
to the community
• PHE WMO sets high standards for our people and our vendors/contractors, in
line with our commitment to perform as a role model company
What are Company looking for:
Best value of money (does not automatically means the
lowest price)
Whole of life costs (performance, maintenance and
disposal), quality, reliability and timeliness
Source, wherever reasonably commercially feasible,
energy efficient equipment, products containing recycled
materials and environmentally friendly.
Become a company with high standard of QHSSE
• HSE as part of the work culture
• Employee equality and professionalism
• Equal opportunity in the matters of work and employment
• Work environment of mutual respect, harmony, and free from violations and harrassment
• No drugs, alcohol or gambling in the work place
• Employee data security and confidentiality
• Ethical standard in dealing with business partners
• Comply with prevailing regulations, policies and procedures
• Act ethically, fairly and honestly
• Declare conflict of interests as soon as become aware of them
• Provide accurate information
• Healthy business competition
• Prevention of confidential information disclosure
• Ethical standard in dealing with government, public and mass-media
• Bribery and corruption
• Political activities
• Community and media relations
• Government relations
• Data, asset, financial integrity, and digital system
• Data, records and reporting
• Asset monitoring and securing
• Intellectual property right
• Digital system utilization and security
• Committee of Ethics
In PHE WMO, we instill an environment and commitment to
uphold highest standard of ethics and behavior
15
Procurement Do’s and Don’ts
o Do not provide false or give
misleading information
o Do not alter documents in any way
o Do not use side letters: written or
oral assurances regarding
discounts, credits, returns, contract
terms
o Do not bypass procurement
procedures
o Do not subdivide contracts or split
Purchase Orders to avoid review
based on established authority
levels
o Do not backdate documents
o Do not falsify records to support
fictitious transactions
o Do not manipulate input for
approval
o Do not forge signatures
o Do understand and follow the Code of
Conduct and Procurement Policy
o Do ensure that we challenge our Clients to
use appropriate Procurement Process
o Do understand the contents of contract
o Do ensure contracts are signed and dated
by parties
o Do review each page of the contract for
alterations
o Do keep your manager informed of contract
compliance issues
o Do ensure that exceptions require
proper/highest approval
o Do engage Contract Management or Legal
on any modification prior to acceptance of
contract
o Do ask for guidance and/or help whenever
you’re uncertain
o Do understand and adhere to the policies
for confidential information
o Do treat suppliers with the highest level of
professionalism and respect at all times
o Do treat all suppliers fairly
Transparency
Accountability
Independency
Responsibility
Fairness
Pertamina’s
GCG Principles
No Bribery
No Kick Back
No Luxurious
Hospitality
No Gifts
No Conflict of
Interests
No Confidential
Information
Sharing
No Favoritism
*) Decision Documentation Is Critical
What Is Required
What Is Best for Company
Laws, Regulations & Corporate Policies Legal Requirements
Integrity & Ethical Behavior Code of Conduct Policy
Business Controls
Analysis and Decisions Based on Facts and Good Business Sense
Decision* =
Requirements + Judgment
Commitment to GCG and Code of Conduct
Bribery and Corruption: When buyer and seller collude to ensure that the seller wins a contract, the buyer in return receiving a reward.
LEADERS TOP 20%
LAGGARDS BOTTOM 20%
Based on PwC’s Global Supply Chain Survey 2013 in determining Laggards & Leaders of the Industry
Suppliers of Choice
Customers of Choice
Highly Ethical HSE Standards Best Service Quality Products On-time Delivery Reasonable Price
Highly Ethical Fair Treatment Transparent
On-time Payment No Conflict of Interest Accurate Information
High Performers and Suppliers of Choice are Expected
True leaders ought not worry greatly about occasional mistakes,
but they must vigilantly guard against those things that will make
them feel ashamed.
Surround yourself with
associates who have the
courage to say no.
Many leaders only want
to hear the positive. It is
dangerous to be
employed by such
people.
WINNERS NEVER CHEAT