Offshore performance management in optimal state

Friday, 18 April 2008 15:37
orgalogo.gifIn the previous 30 year Orga developed from local service organization to a global full service company with its own products and solutions for the offshore industry. This widening and internationalization also were reason for the development of an integral steering model by the concern controller Herman Doornhein supported by a new management information system. After comparing several options, Orga chose for a pilot with Bizzscore of EFM Software. After the success of this pilot, Bizzscore now is rolled out worldwide. The chosen software is an integral part of the management reviews and performance benefits within Orga.

orga.gifOrga started more than 30 years ago as an electrical service and maintenance company working on North Sea Offshore Oil and gas platforms. While inspecting and servicing installed marine lanterns, foghorns, aviation obstruction lights, DC power systems and explosion proof electrical equipment the company developed ideas and innovative products to improve the reliability of these systems contributing towards enhanced safety and reduced operating expenses.

After a period of more than 10 years of product development Orga began to manufacturer their own range of products in 1985. Amongst the first clients to install Orga systems were NAM (Shell / Esso) in the Netherlands, and Shell operating companies in the United Kingdom and Malaysia. Their example was soon followed by most of the major oil and engineering companies.

Today, Orga is a major player in its field and has marketing, sales, engineering, production and service facilities in the Netherlands, United Kingdom, United States of America, Switzerland and Malaysia.

Need for information
Recently Orga has applied it’s specialist knowledge to develop an innovative line of aviation obstruction lights in accordance with International Civil Aviation Organization (ICAO) and United States Federal Aviation Authority (FAA) requirements.

The growth of Orga was reason for increasing demand for management information. Herman Doornhein was asked in 2001 to search for management models which fulfill the information need of Orga. From the results of his research the Balanced Scorecard, Activity Based Costing and the Theory of Constraints were chosen for implementation in the management information system.

These models provide the higher executives with management information. Besides, the combination of these models gives the individual managers with a clear overview of the matters on which should be focussed.

Several software suppliers were invited for a presentation. The common BI propositions, among which Cognos, Business Objects and EFM Software, were considered. Orga chose for a pilot with Bizzscore of EFM Software. Crucial factors in the decision process were the attractive costs of the product, the support for new management models and the fact that the Business Control department was able to control the project themselves, so minimal resources were were needed from the IT department.

In the beginning of 2004 the pilot of Bizzscore started. At the Schiedam headquarters five users were given access to the application. A number of key users were trained in a short period of time and within 3 days of implementation support of EFM Software the initial management model was built. After a demonstration to the management team, it was decided to expand the number of users and use Bizzscore company wide.

Dashboard
The company wide implementation meant installing the software for the five different sites of Orga (Schiedam, Houston, Kuala Lumpur, Zurich and London). Twenty different dashboards were build in Bizzscore, of which each held approximately seven indicators. Within each dashboard the several indicators are weighted against each other, by which an overall score can be calculated.

This index defines in which level the managers of Orga share in the profits. Early in the morning and during lunch new data is imported and the KPI-scores are recalculated. This means the managers can almost keep constantly track of the planning for reaching their targets. At the same time they can see how successful their projects are carried out, with the help of a number of underlying KPI’s.

“We were able to provide our managers with almost real-time information. Using the Web client of Bizzscore, this information is available for our managers anywhere in the world. Besides, the higher management can point out within the dashboards on which matters they think the focus should be. In the past the focus lay completely on turnover sometimes, while the margins were forgotten; these are now visible next to each other.

The other companies which have held a presentation for us were perhaps able to offer a similar solution. With Bizzscore, however, we have a solution where the business has full control, without having to depend on IT. EFM Software was able to deliver a solution at a fraction of the costs of alternatives and in a much shorter time than the other software suppliers could offer”, so says Herman Doornhein.