PIDX Standards Activities

1
PIDX Standards Activities

• Tena Allain
• PIDX Standards Subcommittee Chair
• March 29, 2001

2
What is PIDX ?

• A non-profit trade association for the Petroleum
  Industry
• Membership open to all industry participants
• Promote the development of open standards for
  exchanging industry transactions

3
Balancing Standards Development
INDUSTRY ASSOCIATIONS
High
COLLABORATION
Low
ENTERPRISE
Slow
Fast
SPEED OF IMPLEMENTATION
4
PIDX Standards Efforts

• Data
• Commodity
• Attribute
• Item
• Transactions
• Process

5
Data Commodity Coding

• UNSPSC
• Uniform Standard Product and Services
  Classification

6
Catalog Standards Potential
100
Discrete
Coding
Commodity
Transactions
0
More Complex
Catalog
Custom/Unique
7
UNSPSC Commodity Initatives

• May 2000
• 25 Companies
• Target 7 Commodity Segments
• Segment Leaders Volunteered
• Added over 1,400 New Petroleum Related Commodites

8
UNSPSC Commodity Classification

• 71 Mining, Oil and Gas Drilling Services
• 7111 Oil Gas Drilling and Exploration Services
• 711115 Oil and Gas Exploration
• 71111501 Seismographic Surveys

9
UNSPSC Commodity Completed

• Chemicals Gas Materials
• Mining Machinery Equipment
• Distribution Conditioning Systems, Equiment
  Components
• Mining, Oil and Gas Drilling Services

• Dave Schaffer, Halliburton
• Randy Clark, Baker Hughes
• Joe Hitchman, CIMIS Mike Drews, ExxonMobil
• Bimal Chopa, Schlumberger

10
UNSPSC Commodity Remaining Work

• Fuels, Fuel Additives, Lubricants and
  Anti-Corrosives
• Mining Machinery and Accessories
• Industrial Production and Manufacturing Service

11
UNSPSC Commodity Attribute Initiatives

• August 2000
• 45 Companies - 75 individuals
• Developed Process
• Prioritized Commodities

First Industry to Address Common Attributes
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Defined Attributes

• Warren Sneider, Consultant
• Joe Hitchman, CIMIS
• Steve Green, Weatherford
• Neil Crawford, FMC Corp.
• Randy Clark, Baker Hughes
• Richard Hyland, Trade Ranger

• Casing Tubing
• Pipe, Fittings, Flanges
• Cementing products
• Wellhead Equipment
• Specialty Chemicals
• Motors

13
COMMODITYOIL COUNTRY CASINGUN/SPSC CODE
20113101

• 6-5/8
• 28
• 0.417
• API 5CT
• N80
• SEAMLESS
• 8-ROUND LONG
• RANGE 2
• 6.625

• OUTSIDE DIAMETER
• NOMINAL WEIGHT
• WALL THICKNESS
• PRODUCT SPECIFICATION
• GRADE
• METHOD 0F MANUFACTURE
• THREAD TYPE
• LENGTH
• OUTSIDE DIAMETER
• etc...

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Unfinished Commodity Attributes

• Controls/Controllers
• Measuring, observing, and testing instruments
• Drilling Fluids
• Drill Bits
• Downhole completion products

• Power Sources
• Pumps
• Seals
• Lubricants
• Pneumatic machinery and equipment

15
CIMIS - Common Industry Material Identification
System

• Completed Identify Catalog descriptions
• Pipe
• Tubing
• Casing
• Fittings
• Continue Working on Valves

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TRANSACTIONS

• EDI and XML
• Our Past Blends with Our Future

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PIDX Standards Transactions Initiatives

• Completed
• EDI
• Published White Paper Petroleum Direction for
  the New Technology of XML
• MMS BLM XML consultation with POSC

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PIDX Standards Transactions Initiatives

• Next Steps
• Material Safety Data Sheets
• Petroleum Industry Data Dictionary
• XML Implementation Guides
• Create Core Components
• Approved PIDX XML Schemas

19
PIDX Material Safety Data Sheets Task Group

• Joint project with Federal Government
• Collaborating with other industries
• Looking for completion by year end
• Developing XML Schema

20
Petroleum Industry Data Dictionary PIDX XML
Development

• Foundation to build XML Schemas and DTDs
• Use Tool to Convert EDI and other formats to PIDD
  Terms
• PIDD then used to develop Standard Petroleum
  Industry Schemas
• Submit Schemas from PIDD for PIDX Approval
  Process to become API Recommended Practice

21
PIDD XML Example
XML Example ltAbondonedDategt1231200
0lt/AbandonedDategt
22
Future of XML

• ANSI X12 Committee and United Nations EWG are
  combining effort to construct recommendations
  from ebXML
• Complete Publish Recommendations for
• Core Components
• Business Processes
• Transport Protocol
• etc.

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Process Definition

• Identifying Opportunities
• Services Configurable Products

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Definition of Service

• Catalogable
• Request at detail attribute level
• Pricing at lowest level
• Description / Hours / Rate / Skill
• Non-Catalogable
• Variable pricing and availabity
• Detail attributes vary based on condition
• Scope of Work subject to change

25
OG Services Standards Potential
100
of Spend
Tranactions
0
More Complex
Catalogable
Negotiable
26
Background

• eProcurement is well defined for materials,
  catalogable services and auctions
• There is a gap with complex / configurable items
  with eProcurement applications

27
ComProServ Task Group
Defining Complex Products and Services for the
Petroleum Industry
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Complex Services Benefits

• BUYER
• Lower Processing Costs
• Eliminate Data Keying
• Reduce Errors
• Electronic Reconciliation
• Order Visibility
• Commitment Tracking

• SELLER
• Lower Processing Costs
• Eliminate Data Keying
• Eliminate Recycle Errors
• Improve Forecasting
• Reduce Late Pay
• Reduce Outstanding Receivables

29
Task Group Value

• Collaborative Effort among Buyers and Sellers
• Streamline the Procurement Services Process
• Facilitate Data Exchange

30
Complex Services Process
ERP
Buyer
Contract
_at_ eProcurement
ERP
ERP
Request Work
Estimate Approved
Work Request/ Contract Release
Verify Qty of Work Performed
Match Request/ Release to Amount
Route for Approval
_at_
_at_
_at_
_at_
_at_
_at_
ERP
Approval to start work

• Quote/Estimate
• Commodity Level Description
• Timing

Summary of Work
Payment
Marketplace
Website / Collaborative Tool

• , Detail by Commodity
• Hours
• Equipment
• Material

Scope Work
Work Estimate
Schedule Work/Job
Create Invoice
Work Ticket

ERP

• Detail
• Hours
• Equipment
• Material

ERP
ERP
ERP

• Commodity
• Hours
• Equipment
• Material

Contract

• Detail
• Hours
• Equipment
• Material

ERP
Seller / Contractor
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Project Objective

• Develop open and non-proprietary data exchange
  and communication standards to enable the buying
  and selling of complex products and services in
  the petroleum industry for
• - Business to Business
• - Business to Marketplace
• - Marketplace to Marketplace

B1
B2
s
s
s
M1
s
M2
b
b
b
b
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Project Scope

• Understand Process Workflow
• Develop a Recommended Practice
• Define transaction flow for process
• Identify transaction data elements
• Complete Data Dictionary Implementation Guide
• Pilot Upstream service
• Refine Business Case for industry acceptance
• Develop rollout plan for additional services
• Collaborate with other industry standards bodies

33
Design and Development Process
Design Teams
Pilot/ Test Validate
PIDX Standard
Architecture Team
____________ ____________ ____________ ___________
_ ____________
Data Design Process
Plan
Design
Develop
________ ________ ________ ________ ________
________ ________ ________ ________ ________
________ ________ ________ ________ ________

• Determine Repository
• Petroleum Industry Data Dictionary Additions
• Object Models

• Implementation Guide Content
• Review and Edit
• Approved Recommded Practice

• Define Scope
• Team Charter
• Steering Committee Approval

• Process Diagrams
• Requirements Documents
• Steering Committee Approval

• Transaction Data Models
• Document Type Definitions (DTDs)
• Data Element Definitions
• Steering Committee Approval

34
Task Group Organization
Pilot Team 1
Pilot Team 2

• Project Oversight
• Resource Commitment
• Agree to Test/Pilot

• Project Management
• Cross Team Coordination

Communications

• Technology Selection
• Repository Determination
• Standard Adherence
• XML Expertise

• Design Process
• Develop Transactions
• Identify Data Elements
• Functional Expertise

35
Project Timeline /Milestones
Communications
PIDX
Program Management
Design Team
Plan Phase II
Architecture Team
Plan Phase II
Implement 1
Pilot Team Company1
Implement 2
Pilot Team Company 2
3
4
5
1
2
0
36
Closing Comments
. we have the opportunity to become either
victims or architects of our future .