Salient Margin Minder Max
Activity Tracking System
Performance Management for the Oil & Gas Industries
About Salient
Salient Corporation offers business and government a new solution for efficient management. Drawing on diverse data from multiple sources, our
technology measures how business activity creates value – quality, financial efficiency, productivity – while its user interface eliminates barriers to
use of this knowledge for continuous process improvement.
Salient’s technology platform is a super scalable in-memory OLAP system for activity based value scoring. Its user interface is a graphical toolbox for
interactive, stream-of-thought data mining, visualization and root cause analysis. Overall, the technology enables non technical knowledge workers to
evaluate process behaviors rapidly, eliminate waste and optimize outcomes continuously.
Founded in 1986, Salient today serves more than 35,000 users in 53 countries. For more information, visit www.salient.com.
2 Activity Based Performance Management Suite
Salient Margin Minder Max
Activity Tracking System
Performance Management for the Oil & Gas Industry
Table of Contents
Introduction How Margin Minder Max Works 5
Improve Upstream Efforts Production
Exploration
Monitor Midstream Operations 8
8
9
Manage Downstream Activities Refining
Marketing
13
14
16
Go to Dead Net Managing Collections
Integrate & Correlate
Control & Optimize
Testimonials
18
19
20
21
22
6
10
More often than not, investments,
activities, and individual performers
in sales and marketing, distribution,
services and other operations don’t
connect in any visible way to bottom
line performance.
Introducing Margin Minder MAX
®
Making the connection...in real time.
The Margin Minder® MAX system puts the right information where it counts, when it counts,
directly in the hands of the people who make the daily decisions that determine company
profitability. Margin Minder MAX is based on Salient’s UXT® high performance data
exploitation system. UXT tracks commercial and operational data in real time. It integrates
billing, syndicated, survey, supply chain and causal information and then organizes these
data streams into a comprehensive, dead net accounting of the activity of the enterprise.
Performers, managers and executives all get a never-before-possible capability to correlate
their own actions to profit, growth, efficiency and productivity. MAX lets them see the connection
graphically, continuously, in real time.
Margin Minder
®
MAX
Performance Management for the Oil & Gas Industries
5
HOW Margin Minder Max WORKS
MAX lets managers and others package intelligence on the fly by pointing and clicking on “tabs”, rows or graphics. They can start from anyplace and go anywhere... drill into any business issue by product, asset, territory, service, partnership, contractual term down to the ultimate
distribution point (in any order). They can zoom in on any month, week, day, etc. For example, here is a graphical drill-down to investigate
decreasing margins.
Gasoline
Compare product performance to last year or any
other timeframe.
Gasoline
Just double-click to drill down into any area of
concern (for example, crude oil), and list information for each account.
Crude
Jet Fuel
Diesel
Kerosene
Residual Fuel Oil
Asphalt
Petrol Inc
NA Oil Co
MY Internat
Transoil
Revcon International
Zicon Fuel
Euro Fuel Comp
In just seconds, trend the performance of any well over time.
In seconds, select any account and trend its performance over time.
On the following pages, you’ll see
other examples that represent how
everyone can use MAX to find exactly
the information they need to achieve
maximum performance.
6
Performance Management for the Oil & Gas Industries
Tech Talk:
Margin Minder Max is a tightly integrated client /server business activity monitoring (BAM)
application that bolts on to several back office processing sources (no IT changes are
necessary). User access is from anywhere via TCP/IP LAN, WAN and Net.
Its data engine /server is highly scalable… to billions of transactions… without compromising
speed or granularity. It exploits all means… compression, n-dimensional grid indexing,
SMP and MPP and more… to deliver maximum intelligence in minimum time to hundreds or
thousands of on-line users. It integrates transactional and causal data from any source.
Its “Minder” client is a user driven intelligence assembler and presenter. It operates on both
fat and thin Windows® clients and reports in real time.
Sales Accounting Systems
Other Transaction
Processing Systems
Financial Systems
®
Margin Minder
MAX
Load & Go (optional)
Virtually Any Other Source!
Performance Management for the Oil & Gas Industries
7
MAX can organize every type of fact (costs, revenue, profits, time, incident counts, causal information) to integrate and organize the vital
statistics from every business activity. Starting with upstream operations, MAX can track assets, capacities, locations, distances, volumes,
operational costs, etc., of production and exploration.
Some examples of what you can do:
• Trend performance over time at every level... the entire company or region down to the single
well or platform.
• Identify under/overperformers to maximize investments.
• Integrate production information with midstream and downstream activities to provide a complete
picture of profit and productivity.
Visualize production trends by region, well, or any other way.
Production
Company P&L
Well Costs vs Volume
Platform Status
Well Status
Platform Repairs
Volume
Wells by Region YTD
Well Repair Costs
Production vs. Budget
Batch Analysis - NE
Batch Analysis - SE
Low-Volume Wells
Low-Volume Platforms
New Wells vs. Old Wells
Just click to see important views you use every day.
8
Performance Management for the Oil & Gas Industries
Exception (Wells) ME 11/1999 [Barrels >=300]
Production
Set expectations on the fly
- who or what passes or fails.
For example, wells with volume over say, 300 barrels per month (10 barrels per day).
Just double-click to list
wells that aren’t meeting expectations.
Barrels
Operation Cost
In just seconds, trend the performance of any well over time.
Volume
Well: 03093
Mbd
Performance Management for the Oil & Gas Industries
9
MONITOR MIDSTREAM OPERATIONS
MAX can integrate pipeline or tanker capacities, locations, production schedules, volume
shipped, orders placed and supply levels, as well as asset costs (repairs, depreciation, fuel,
etc.). It integrates all of these into a comprehensive view of product transportation and
storage. Some examples of what you can do:
• Improve efficiency of assets to reduce costs.
• Spot shortages or missing volumes to reduce potential lost income.
• See the product pipeline daily.
Compare number of work orders, cost of repair and depreciation, and repair time between tankers or other types of assets.
Tanker
DNCB368
Instantly, break down
any piece
of data into its
component parts.
10
Performance Management for the Oil & Gas Industries
Compare pipelines by region or any other way.
Crude
Pipelines
Mix columns show the percent
in each Area.
For example, the SouthEast
has only 8.8 percent of pipelines but 73.4 percent of pipeline repair costs.
Refined
Crude
Double-right-click to list pipelines of any type in any area.
PIPELINE: V2529
Mbd
Regular Gasoline
Midgrade Gasoline
Premium Gasoline
Diesel Fuel
Kerosene
Other
Instantly, investigate any
pipeline. For example, look at
quantities transported.
Performance Management for the Oil & Gas Industries
11
MONITOR MIDSTREAM OPERATIONS
List, then sort vehicles by % change in fuel efficiency.
For example, in a fleet of more than
600 vehicles, some show up with numbers that require explanation.
CHEVR
FREIGHT
CHEVR
FREIGHT
FREIGHT
CHEVR
DF900
TANKZ90
TF750
TANKZ90
TANKB90
TF750
Supply Trends.
How many days of supply do I have? How should I adjust my production or transportation schedule?
Tank T09282
12
Performance Management for the Oil & Gas Industries
MANAGE DOWNSTREAM ACTIVITIES
MAX can track all of the facts (sales volume, refined volume, revenue, products costs, operational costs, etc.) of refining and marketing to provide a clear picture of performance and
opportunity at any level. Some examples of what you can do:
• Compare key indicators across channels, markets, key accounts, products, etc.
• Compare any one indicator across several time-frames.
• Trend performance over time.
• Find performance outliers by price and volume (or any other measures).
Compare Performance over Multiple Timeframes
(for example, refined volumes this month and year-to-date vs. last year).
Refining
Refinery
Smithtown
Mbd
Smithtown
Westville
Johnston City
Mandersville
Compare Sales Reps by Sales Revenue in each Category.
Performance Management for the Oil & Gas Industries
13
MANAGE DOWNSTREAM ACTIVITIES - REFINING
Compare budgets to actual results by division or any other way.
Refining
Westville >
By: Division
Distillation
Highlight over and
under achievers.
You set the criteria, for
example, here red indicates a division exceeded budgeted amount by
over 10%.
Distillation
Conversion
Storage
Treatment
Quality Control
Safety
Facility Management
Refining
By: Refinery
Smithtown
Unit Product Cost
Compare fluctuations in per unit
product costs by refinery. Trend
results over time.
Smithtown
14
Performance Management for the Oil & Gas Industries
Westville
Johnston City
Mandersville
Trend capacity vs volume refined to see potential lost revenue.
Refinery
Smithtown
Volume Refined
Capacity
Pot. Lost Sales
Simply draw a box about any area
of concern to find out more.
Volume Refined
Capacity
Pot. Lost Sales
Performance Management for the Oil & Gas Industries
15
MANAGE DOWNSTREAM ACTIVITIES - MARKETING
Trend sales volume, sales revenue, and sales margin (profits).
Category Petrochemical
In one second, smooth the graph to see general
trends.
Product
Regular Gasoline
Instantly plot and drill into outliers where performance is not meeting expectations.
For example, stations with below average
price and volume.
Mbd
Volume
16
Performance Management for the Oil & Gas Industries
Analyze increasing/decreasing volume, costs, revenue or margin.
For example, are sales volume increases due to more franchise gas stations, greater volume per station, or both?
NorthEast >
Gasoline
Mbd per Station
Stations
Category
Point and click to list gasoline
volume sold at each station.
Average volume per station
Active franchise
gas stations
NorthEast >
Category
Gasoline
Address
City
Mbd
Performance Management for the Oil & Gas Industries
17
Not only does MAX provide the information and tools to make more money, but it can also enable
you to collect that money when it’s due. MAX seamlessly integrates accounts receivable (A/R)
information (invoice amounts, paid amount, A/R balances, contact information, etc.) with data from any or all types of transactions to measure
the effectiveness of every partnership, account ... all the way down to the individual transaction.
Some examples of what you can do:
• Compare A/R balances to revenue, margin, or any other sales measure.
• Make others (sales representatives, district managers, etc.) aware of and responsible for past due accounts.
• Quickly identify the riskiest accounts and provide all information required for immediate action.
Compare AR balances and days past due by region, key account, etc.
Petrol Inc.
NA Oil Co
MY Internat
Transoil
Milkey Way Fuel
Tres Oil Inc.
Petrotransport
Restoil Corp.
Instantly, list the worst overdue
invoices, along with contact information for immediate action.
47732
72928
12627
10292
18
Restoil Corp.
Restoil Corp.
Restoil Corp.
Milky Way Fuel
over 90
over 90
over 90
over 90
95,607
56,590
35,391
34,911
Performance Management for the Oil & Gas Industries
95,607
56,590
35,391
34,911
Maria Jones
555-383-3838
Jonny Sanchez 555-292-3838
Maria Jones
555-533-3838
Julia Louise
555-383-4482
GET TO DEAD NET PROFIT
MAX brings all revenues and costs from every business activity together in a comprehensive
accounting of dead net profit contribution. The result is available every day at every level... for the
individual relationship, person, product, location, asset or event... up to the enterprise.
Gross Revenue
Gross Profits
(whatever you call it)
(however you define it)
–
–
–
–
–
Cost of Goods & Services
Discounts
Rebates
Recoveries
etc.
+
“ Dead
– All Other Expenses
– Sales & Distribution
– Advertising & Marketing
– General Administration...any others
+ All Other Revenues (whatever they are)
= Net
Profit”
Performance Management for the Oil & Gas Industries
19
INTEGRATE & CORRELATE
The previous pages show some examples of activities that MAX can track and integrate; however, these are just a few of the possibilities that
MAX introduces to business performance management. MAX can track any type of data (volume, money, time, incident counts, business conditions or causals) from any type of upstream, midstream, or downstream activity (research, exploration, production, transportation/pipeline, refining, and marketing). MAX can integrate any or all of this information from any source to show how all activities affect each other and ultimately
bottom line profitability.
Host Accounting/
Data Warehouse
®
Margin Minder
Administrative Costs
MAX
Inventory & COGS
Tracking System
Asset Tracking
20
Performance Management for the Oil & Gas Industries
Transactions
CONTROL & OPTIMIZE
Because MAX integrates granular data from many sources, it allows you to see dead net profit at every level for precise financial control and
continuous accounting of the value chain.
But more than that, it shows how these transactional values relate to business constraints and conditions. The result is the ability to measure
real productivity (e.g. per hour, per employee, per barrel) and provide that information at the appropriate level to executives, regional managers,
in-field workers, etc., so that everyone has timely, relevant information to optimize every decision made and action taken.
For example, a P&L for the entire company...
Company Best Oil Company
Volume
...one region, refinery, well, etc.
Total Sales
Cost of Sales
Distribution
Transportation
Financial Gains
Refinery
Operating Income
Administrative Expenses
Other Expenses
Capital Investments
Taxes
Volume
Total Sales
Cost of Sales
Distribution
Transportation
Financial Gains
Net Income
Average Rev/Employee
Operating Income
Administrative Expenses
Other Expenses
Capital Investments
Taxes
Average Volume/Well
Average Volume/Refinery
“Dead net profit & growth”
“Dead net productivity”
SmithTown
Net Income
Average Rev/Employee
Average Volume/Refinery
Performance Management for the Oil & Gas Industries
21
TESTIMONIALS
“Our Sales Managers are
now about 100% more
effective with Margin
Minder.”
Aaron Dym, Controller, MIS
W&L Sales (Coors distributor), Harrisburg,
Pennsylvania
A GREAT TOOL FOR INTERACTIVE SCOREKEEPING
“We have to be able to get new products to market in a hurry, and then just as quickly we have
to be able to determine if the product is going to be successful. We have to identify its strongest
niches and be able to specifically market it to those areas. The Margin Minder system is a great
tool for interactive scorekeeping, and it keeps us from making expensive mistakes.”
Allen Savasta, Director of IS.
Oasis Foods Company, Hillside, New Jersey
THIS IS PHENOMENAL
“I can’t think of what we don’t track with UXT (MAX). With about 13,000 customers and 60
drivers, we now have real-time control of our profit and loss activities enterprise wide. We
especially like the ability to monitor profit performance of individual sales people, and recently
decided to base part of their compensation on margin delivered. This is phenomenal.”
Ellen Morgan, Data Systems Manager
Royal Crown Bottling Corp., Evansville, IN
A SYSTEM THAT IS EASY TO USE, MAKES THE DATA EASY TO
UNDERSTAND
“We want our sales people selling, we don’t want them pounding on a spreadsheet to get data
they don’t want or can’t use. And they’re not analysts. They want a system that is easy to use,
makes the data easy to understand and does all this very quickly and visually. Margin Minder is
the single best tool we have for monitoring supermarket sales.”
Steve Gottlieb, Vice President of Planning and Financial Reporting
Carvel Ice Cream Bakery, Farmington, Connecticut
A TOOL TO WATCH PROFIT & LOSS IN REAL TIME
“We definitely saw payback on the product within the first year, no question about it. Salient is
used as a control monitor to immediately solve problems. Between 10 remote warehouses, plus
a large distribution center, Salient brings it all together in the form of a sales tool for branch
locations and at the corporate headquarters it is a tool to watch profit and loss in real time.”
Bill Barten, IT Manager
Carolina Beverage, Salisbury, North Carolina
22
Performance Management for the Oil & Gas Industries
In summary, Margin Minder MAX...
• Bolts on to any ERP, data warehouse, accounting or departmental data source.
• Scales to fit your company, no matter how big it is.
• Integrates and organizes all of the information you collect.
• Provides graphical, real-time monitoring of value contribution at all points, for all
persons, functions and processes.
• Supplies feedback in time to affect outcomes.
• Delivers extremely fast ROI, with operating margin efficiency improvement of 3%
or better.
Call Salient Corporation for more information now (607 739 4511).
Margin Minder®
MAX
Salient Corporation
203 Colonial Drive
Horseheads, NY 14845 USA
phone: 607 739 4511
fax: 607 739 4045
salient.com
©2009 Salient Corporation