Petronas project management system
(PPMS) process diagnostic

How PETRONAS reviewed their project environment to define a roadmap to optimise the delivery of their capital projects in a troubled Oil & Gas environment.

Situation

Oil & Gas was in flux with oil prices plummeting causing impacts at every aspect of the industry. PETRONAS in response has identified the need to improve their performance and efficiency throughout the organisation.

As core part of this response was to evaluate the efficiency and effectiveness of capital project delivery throughout PETRONAS including Upstream, Downstream & Gas business unit. A major area for improvement was the PETRONAS Project Management System (PPMS) which is the standard in which all Capital Projects are governed.

Axceligent was engaged to conduct a diagnosis to identify improvement opportunities for Capital Project Delivery in PETRONAS.

Approach

Our team used an Improvement approach based on the principles of Lean 6 Sigma, Theory of Constraints and Management Operating Systems to conduct a diagnosis on the PETRONAS Capital Project Delivery environment including the PPMS.

The diagnostic approach focused on three key aspects that influence business effectiveness, namely:

• People – Understanding the cultures of stakeholders and project management teams
• Process – Evaluating existing processes, procedures and guidelines available in the organisation and determining its effectiveness to support overall business and project outcomes.
• Systems – Assessing available tools and systems that were in place to support project delivery

Activities involved in the approach were the following:

• Kaizen Workshops & Stakeholder Interviews
• Visual Process Mapping & Analysis –Brown-Paper Mapping
• Gap Analysis & Opportunities Assessment
• Governance & Project Structure Review
• Process Alignment Reviews
• Centralised Project Management Office Review
• Process Compliance Analysis

Highlights

• Identified a journey for Capital Project Performance improvement with 3 key areas of focus including the alignment of departmental processes, supplementing the ease of use of processes and to implement a Decision-Making Solution that will support the PPMS process.
• Identified over 110 gaps identified in the process each with recommendations to address these gaps whilst supporting the 3 key areas of improvement focus.

Petronas project management system
(PPMS) process optimisation

How PETRONAS optimised their Project Governance to introduce tailored Fit-for-Purpose governance processes

Situation

PETRONAS was undergoing major adjustments in their business to suit the harsh economic environments brought about by low oil prices. A key priority area was to focus on improvements to support the performance of capital delivery and improve the value gained from undertaking these ventures.

Axceligent had previously supported PETRONAS in identifying the key focus areas for Capital Project performance improvement with a focus on the PETRONAS Project Management System (PPMS) which is the standard in which all Capital Projects are governed.

We had then been tasked with expanding on these key areas to optimise the PPMS and to initiate the digitalisation of the processes using our Work Management Platform, RevaEDGE.

Approach

Axceligent’s approach was to key in and address core gaps and follow-through on recommendations given to PETRONAS through the PPMS Diagnostic whilst optimising the PPMS process.

To do this, Axceligent’s approach was to introduce the following:

• Alignment of Vision & Mission, Value Propositions and processes
• Simplification of PPMS framework for enhanced usability
• Introduce a Fit-for-Purpose, Risk-Based Assessment to provide segmentation of Projects
• Introduction of Process Roadmaps based on project segmentation to allow Fit-for-Purpose execution of projects
• Alignment of PPMS with other departmental process and optimise synergies to enable focus on delivery and execution of projects
• Align the Process Framework with the Work Management Platform to enable full digitalisation of the process framework within RevaEDGE

Activities involved in the approach were the following:

• Process Design Workshops & Interviews
• Process Framework Blueprint Development
• Detailed Process Design Development & Documentation
• Process Digitalisation Roadmap

Highlights

• Developed a Fit-for-Purpose Tool based on Project Risk Segmentation of Projects that drove the identification of PPMS requirements
• Developed optimised PPMS for Capital Projects incorporating Fit-for-Purpose requirements with 3 Process Roadmaps based on Project Complexity & Overall Project Risk