• Index
  • Projects
  • Organization of a comprehensive digital program for transformation of the Tatburneft LLC Facility Management Company management system

Facility Management Company Tatburneft LLC

Organization of a comprehensive digital program for transformation of the Tatburneft LLC Facility Management Company management system

Winning project within the “Specialized Software Solution for Oil & Gas industry”  category of the ComNews All-Russian competition “Best IT projects for the oil & gas industry 2019”.

Project Objectives

  1. Development of a business processes and regulations target model to ensure precise division of labor and responsibilities, interaction of all departments and employees, information between them and determination of directions for further innovative development of the company.
  2. Creation of a single information environment for collection and storage of production and business information with the ability to quickly generate reports on said basis.
  3. Optimization of key business processes, reduction of manual labor and duplicated operations, introduction of the “single point of entry” principle.
  4. Improving efficiency of internal corporate communications owing to the efficiency, structuredness, completeness and timeliness of information.
  5. Reduction of fixed costs, optimization of structure, size, and company resource management processes.
  6. Increasing spending control through the implementation of a business planning system and proactive control of spending limits.

Project goal: To increase company efficiency through creating an integrated management system.

Facility Management Company Tatburneft LLC (part of TagraS Holding) provides a wide range of services in drilling and well development for oil and gas companies, both on a turnkey basis and as separate services. Being a key player in its market segment, the company is constantly improving its technical base and has been closely involved in complex informatization for more than two years. The program of transformation and development of a management system was organized for this purpose, which entails creation of a comprehensive information system (CIS) supporting production, management and administrative processes thereby making them uniform, transparent and understandable by all departments.

Before the start of the Program, the company conducted a thorough audit of processes, information systems and existing IT infrastructure. According to the results of the initial survey, the following problems were identified: weak interaction between business process participants, too many localized programs, complexities arising from upgrading, integration and adaptation of tools to the needs of the company, etc.

Existing IT tools did not sufficiently support company processes. Information flows in the management system required more structuring and transition to a modern platform for the comprehensive informatization of the company’s management system.

The ITPS Group of Companies was chosen as an integrated IT partner to undertake digital transformation of the Tatburneft LLC Facility Management Company. In the course of the coordinated operation, a number of projects were developed and implemented as part of the Program, in which many cross-functional working groups were involved. The overall goal of the transformation of the management system was to increase the manageability of the company, reduce expenses and production costs, and to reduce execution time of the main production processes in compliance with existing technological standards.

The finalized works can be divided into two major stages. The first is process modeling, preparation of a development strategy, integrated solution architecture and project program management tools. The second stage is design, implementation and commissioning of integrated CIS functional modules.

Development of a business process and CIS architecture target model.

During the first stage, the Tatburneft LLC Facility Management Company specialists, together with the consultants, developed the target model for the company's business processes, which was divided into three units: basic production processes (well construction, development, grouting, supervising, etc.), supporting processes (property management, procurement, logistics, MRO, etc.), management processes (production planning and analysis, budgeting, accounting and tax accounting, HR, investment management, etc.). An overview of all company activities was compiled in a unified process model with details concerning the functions of departments and employees, and their roles in the management structure. The regulatory framework of the company was supplemented with each top-level business process’ description to which all subordinate methods and instructions were attached.

The information received made it possible to create a flow chart of information exchange between business processes. Based on a unified process model, an integrated information system (CIS) architecture has been developed. With regard to processes and organizational structure, the functional and technical requirements have been formed for the creation and integration of each of the integrated information system modules. After determining the requirements for the functionality of CIS, a roadmap was developed comprising a project list and timelines for module implementation.

Modern software products 1C: ERP Enterprise Management, 1C: Holding Management CORP, 1C: Salary and HR management, CORP, 1C: ITIL, 1C: Document Management CORP, formed the application basis of the integrated information system at the Tatburneft LLC Facility Management Company.

To ensure streamlining of operations and for keeping normative and regulatory documentation of the company current, an “NRD Library” information system was created with a “quick access” option, searches based on custom parameters and document preview functionality. To manage the Project Program, a portfolio and project management system was developed.

Implementation of an integrated information system.

The capabilities of the 1C: ERP application solution on the latest 1C: Enterprise 8.3 platform made it possible to implement the following CIS systems and functional modules:

  • Information system for production planning and accounting

Enables drilling plan creation (well-drilling program), collection on the basis of drilling master reports and consolidation of daily production data, and forecasting taking into account historical data. The system integrates all drilling services into the general information environment, including well construction, grouting and special equipment, mud services, geo-navigation support, and supervision.

  • Information system for estimated calculations

Used to develop planned and actual estimates and estimates for tendering processes. Allows for standardization and analysis of works performed (estimates and pricing thresholds developed during the course of the design phase).

  • Information system for revenue-generating agreement management

Designed for operational planning of revenue from contracts held with customers of the company, taking into account all possible influencing factors, by automating calculations for planned revenue and tracking execution of technical and economic contract performance indicators.

  • Information system for supporting business processes

Subsystem for logistics management (logistics – procurement and warehouse management) and transport and logistics. The company's own transport is controlled through 1C: Transport Management (1C: UAT), an integrated subsystem in ERP. Interaction with external contractors is integrated through the cloud transport accounting system.

As a top-level subsystem, 1C: the Holding Management (1C: UH) solution was selected, which provides accounting, consolidation and processing of customer financial information.

The functionality of the respective modules includes accounting and tax accounting, treasury, contract accounting, and budgeting. The data for 1C: UH is provided through modules implemented on 1C: ERP.

The HR management information system includes the modules “HR Accounting” and “Payroll”. It was implemented on the basis of the 1C: Salary and HR management 8 (1C: ZUP) product, which was updated to the latest version and integrated into the CIS. With its help, the paper workflow was minimized, with data on HR training sent to 1C: ZUP directly from adjacent subsystems. The module also transfers up-to-date information on employees to all systems.

The information system for managing IT services is implemented on the 1C: ITIL platform, enabling high-quality IT services and support for all modules to be provided for the created comprehensive information system (CIS).

The information system for managing single directories integrates the structured directories of the company and provides users with access to normative and regulatory information. Directories are unified for all CIS modules and subsystems.

Result

  • The company has created a comprehensive information system (CIS), consisting of integrated functional modules that support all key business processes and allow information to be transmitted to all process participants at all levels of management.
  • Structured regulatory document storage via business processes providing the ability to search by custom parameters and establish links between documents has been ensured.
  • Normative and regulatory information has been unified, expanded and supplemented.
  • A “single entry point” approach has been implemented: data appears in the system at the exact place the information was generated and is used by all participants in the processes supported by all other CIS modules.
  •  As part of the unified data environment, data duplication has been eliminated, while the number of errors due to the human factor has been reduced.
  • The work of production services is now more clearly aligned with the economic and commercial units.
  • The time required for the development and approval of management decisions was decreased, while the speed of solving working issues and eliminating problems was increased;
  • The company has become more flexible/mobile - it quickly adapts to changes in the drilling services market;
  •  A single process model ensures a comprehensive picture of business processes and serves as a basis for planning and monitoring of projects to improve and enhance company management systems.
  • Deployed solutions are ready for integration with other systems as part of further development of the management system.
  • Comprehensive informatization of business processes is the basis for further digitalization of the company.
  • The project at the Tatburneft LLC Facility Management Company has come to define typical approaches for the implementation of CIS in other divisions of TagraS Holding.

Customer Feedback

“An efficient business model within a modern enterprise implies that all processes are streamlined and work together to achieve a specific result. For us, this is inextricably linked with increased controllability and productivity, lower costs, reduced well construction time, and optimization of labor costs. This is a large set of organizational transformations performed in strict compliance with all existing standards. A comprehensive information system created in collaboration with the ITPS Group of Companies, as well as economically-sound management approaches, is our solid digital “foundation” on which we build an efficient and competitive business. Our successful experience is highly valued at TagraS Holding. The innovative approaches we have tested were found to be useful in other divisions of the holding”.

Director of the Tatburneft LLC Facility Management Company, Albert Iskhakov

Download information about the project