Selecting and Implementing Maximo at Progress Energy

Agenda

2

• Progress Background

• Information Systems Evolution

• Operations Strategy

• Maximo at Progress

• Project Structure and Timelines

• Where we are in our Maximo journey

• Lessons Learned

Integrated Project

3

LNG Terminal Location

4

Prince Rupert Gas Transmission

5

Snap Shot of the North Montney Joint Venture

66

As of Q1 2016 Total Wells

Montney Horizontals Drilled 602

Montney Horizontals on Production 515

Drilled Uncompleted 87

Production Capability – Natural GasProduction Capability – Condensate & NGLsTotal Production Capability

~700 mmcf/d10,00 bbls/d

~130,000 boes/d

*Resource figures are effective Dec 31, 2015**Contingent and Prospective Resource figures are High Case estimates

0

500

1000

1500

2000

2500

3000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Capital Forecast Lost Investment Capital

($M

M)

Upstream Capital InvestmentNorth Montney Joint Venture

Appraisal Phase Development PhaseDelays – Lost Investment

Approval delays expected to result in $5B lost investment between 2016-2018

7

Clearly Communicated Corporate Direction

8

• Appraisal Phase

• Proved Reserves for 30+ year supply of feedstock to LNG Facility

• Increase in D&C activities

• Increase in Infrastructure and Facilities to support growth

• Development Phase

• Increase production for feedstock to LNG Facility

• Production increase to 2 bcf/d (330k boe/d)

• Stable capital program

• Sustainment

• 100% reliable, low cost production

• Utility Company

• Consistent repeatable processes

Progress may have changed overnight but people and processes take time!!

Information Systems Strategy Evolution

9

• Pre-PETRONAS• People based processes

• “Best of Breed” solutions

• Effective yet disjointed business processes

• Clean Data! – Achieved through “lot of eyes”

• Post-PETRONAS• System based processes

• Enterprise class solutions but still fit for purpose

• Integrated processes

• Data controlled through exception reports and clearly defined roles

• Strong adherence to controls and governance

A strong IS Strategy must align with Business Objectives

Information Systems Roadmap

10

• Roadmap was created to be strategic rather than tactical or reactive

• Appraisal Phase• Drilling

• Lease, Facilities and Pipeline Construction

• Project Scheduling and Management

• Reporting and Payment Solutions

• Development and Sustainment• Operations

• Enterprise Asset Management

• Marketing

Operations Mission Statement

11

EAM Benefits

12

• Consistent integrated business processes across Business Units

• Improved operational effectiveness and efficiency

• Integration across functional departments

• Optimized work management

• Increased asset runtimes and reliability

• Reduction of equipment failures

• Improved visibility into Operational data and reporting

• Flexible system configuration and scalability

The benefits of an EAM were supported by Progress Management. A selection process yielded Maximo.

Program Realizations

13

• Leadership had a strong vision

• Large gap existed between leaders and executors

• Org Charts were still evolving

• Departments were still being created (Supply Chain)

• Business Processes had not been developed or re-developed

This is not a system implementation, it is a Business Process Project!

Success Factors – Governance and Program Structure

14

Success Factors – Long Implementation Timeline

We are here

Project complete (in sustainment phase)

Project in progress

Project in progress

Project in planning phase

15

Success Factors – Business Engagement

16Business Engagement and Communication is the key to success!

Each project follows the same process in order to drive business engagement

Project 1 – Asset Identification

17

1,436

141

1,219

Facility/Well Count (+2800)RemainingLocations toVerify

Invalid LegacyLocation Data

VerifiedLocations

13,732

2,716

11,803

Asset Count (+28000)RemainingAssets to Verify

Invalid LegacyData

Verified Assets

Legacy Data Set

Cleanse Verify Enrich Validate

Asset Walk Down Completion Targets

SBU – Mar 31

WBU – Jun 30

EBU – Sept 30

DBU – Oct 31

Project 2 – Incidents and Investigations

• System GO-LIVE May 2016

• In sustainment phase

• Several enhancement releases planned

Item Month Prior to Go-Live

MonthAfter Go-

Live

Total to Date in

Maximo

Total Number Events Reported 195 215 821*

Total Number Near Misses Reported 15 33 113

Total Number Unsafe Acts and Unsafe Conditions Reported 180 182 708

Total Number of Actions entered (Events, HazOps & Inspections) n/a n/a 242**

*Total Number Events Closed = 613 (75%)**Total Number Actions Closed = 84 (35%)

18

Project 3 – Management of Change (MOC)

• System GO-LIVE is scheduled for October 31st

• Focus on Engineering Management of Change

• Equipment & Infrastructure changes

• Safety & Protective Control System changes

• Chemical & Feedstock changes

• Program & Procedure changes

• Standardizes and enforces MOC screening, review and approval processes across Operations, Facilities and D&C departments

Business Requirements 102

System Requirements by Application Type

348

Administration (Org Settings, System Settings)

8

MOC Application 214

MOC Request Application 117

Resources (People, Person Groups)

9

System Requirements by Configuration Type

348

Application Configuration 257

Automation Script 6

Security 3

Start Center 2

Workflow 80

19

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Project 4 – Work Management

CorrectiveQ1 - 2017

PreventiveQ2 - 2017

PredictiveQ3 - 2017

SchedulingQ3 - 2017

Asset IntegrityQ4 2017 – Q1 - 2018

Fun

ctio

nal

• Corrective Maintenance

• Failure Analysis

• Time Entry• Preventive

Maintenance• Job Plans• Routes• Counter Meters

• Gauge/CharacteristicMeters

• Predictive Maintenance• Condition Monitoring• Criticality Analysis

• Scheduling• Capacity Planning• Material Planning• Turnaround

Planning• Cost Analysis• Labor Analysis

• Corrective Maintenance• Failure Analysis• Time Entry• Preventive Maintenance• Job Plans• Routes• Scheduling• Capacity Planning• Material Planning• Turnaround Planning• Criticality Analysis• Cost Analysis• Labor Analysis

Inte

grat

ion • eDocs • PI? • Qbyte/AFE

NAV/ADP?• Solufy/Other

Schedulers?

• REMS?

Ass

et S

cop

e • Rotating• E&I• Measurement• Tanks• Pressure

• Rotating• E&I• Measurement• Tanks

• Rotating• E&I• Measurement• Tanks

• Rotating• E&I• Measurement• Tanks

• Pressure• Pipeline

20

Lesson Learned (so far!)

21

• Internal sales cycle is always a challenge

• Not all Subject Matter Experts are equal

• Communication to business and field is essential

• Assets take a long time to validate

• Mobility (will business apps ever catch up to consumer apps?)

• Business processes never stop changing

Thank You

22