IADC 1 COMPANY CONFIDENTIAL 5/22/14 Who Are ESI? In business - - PowerPoint PPT Presentation

Competency Assurance through the capture, preservation and sharing of tacit knowledge

IADC Conference Dubai, UAE – 22nd May 2014

5/22/14 COMPANY CONFIDENTIAL 1

IADC ¡

In business for over 30 years, Energy Services International, Inc (ESI) is a single source solutions provider to the global offshore drilling industry Acquired by Clyde Blowers Capital in February 2013 the combined experience of heritage businesses Vicksburg Marine Inc, Southern Technology & Services and Benchmark Instrumentation make ESI the industry leader in jacking, skidding, crane & drilling systems inspection, repair, maintenance & upgrading for the world’s drilling contractors Approved by DNV, ABS & API and a member of the International Association of Drilling Contractors, ESI supports shallow & deep water fleets regardless of vessel design or location

Who Are ESI?

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Bringing ¡together ¡more ¡than ¡50 ¡years ¡of ¡offshore ¡drilling ¡experience ¡under ¡one ¡roof ¡ ¡

• What is the problem?
• Some definitions
• Why is competence important?
• What is tacit knowledge?
• Why do we need to capture it?
• How do we capture & share it?
• What are the next steps?

Contents

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What is the Problem?

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(Short ¡Movie ¡– ¡File ¡Size ¡too ¡big ¡for ¡embedding ¡in ¡PPT ¡ ¡ Please ¡click ¡on ¡You ¡Tube ¡Link ¡> ¡hGp://youtu.be/vMgWhzfa5R4 ¡) ¡

Com·pe·tence [kom-pi-tuhns] noun The quality of being competent; adequacy; possession of required skill, knowledge, qualification, or capacity. Tacit knowledge [tas-it] adjective (As opposed to formal, codified or explicit knowledge) is the kind of knowledge that is difficult to transfer to another person by means of writing it down or verbalizing it.

Some Definitions

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• Increasing safety standards
• Increasing performance expectations (Uptime/Completions)
• Aging vessel fleet (Old Technologies)
• New vessel build cycle (New technologies)
• More onerous contractual liabilities
• Emerging nations competitive threat
• Government and regulatory requirements

Why is Competence Important?

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Previously our industry was structured as follows…

• Vertically integrated businesses with many rigs built in house
• High employee retention & long service with same employer
• Widespread use of apprenticeships & home grown talent
• Low tendency to use subcontract or temporary labour

All of which meant that knowledge was often not documented or codified, and when it was, it was paper based and not digitised. Also informal deviations from the limited documentation that did exist were commonplace…

• Use of out of date or down rev drawings/specifications
• Learn by doing or standing next to someone doing same job
• Cigarette paper under lathe cutting tool (anecdote)

Furthermore technical/operational employees tended to retain knowledge in their heads, rather than share or document it as a means of job protection in case of future layoffs during industry downturns

What is Tacit Knowledge?

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The Demographic Time Bomb – Age Range of E&P Staff Once we lose this tacit knowledge it will take many years for it to be re-learned and some of it will be lost forever By capturing, codifying, and sharing this knowledge we can all maintain and improve our competitive position, enhance safety and avoid a backward step in uptime and well completion performance across the industry

Why do We Need To Capture It?

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0% ¡ 10% ¡ 20% ¡ 30% ¡

< ¡25 ¡ 25-­‑29 ¡30-­‑34 ¡35-­‑39 ¡40-­‑44 ¡45-­‑49 ¡50-­‑54 ¡ > ¡55 ¡

• Average ¡age ¡is ¡50 ¡years ¡old ¡
• 50% ¡of ¡staff ¡will ¡re=re ¡in ¡next ¡5 ¡yrs ¡
• 54% ¡in ¡role ¡for ¡less ¡than ¡2 ¡years

¡ ¡ ¡

• 53% ¡cite ¡lack ¡of ¡training ¡as ¡# ¡1 ¡issue ¡

¡

• *Hays ¡Oil ¡& ¡Gas ¡Salary ¡Report ¡201/Rigzone ¡

How Do We Capture & Share It?

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1) ¡TACIT ¡KNOWLEDGE ¡CAPTURE ¡ 4) ¡RECRUITMENT ¡OF ¡TRAINERS ¡ 3) ¡INVESTMENT ¡IN ¡ ¡ TRAINING ¡INFRASTRUCTURE ¡ 5a) ¡INTERNAL ¡DEPLOYMENT ¡ 5b) ¡EXTERNAL ¡DEPLOYMENT ¡ 2) ¡TRANSLATION ¡TO ¡TRAINING ¡MATERIALS ¡

SALES, ¡ENGINEERING, ¡FIELD ¡SERVICE, ¡PROJECT ¡ MANAGEMENT, ¡PROCUREMENT ¡ CUSTOMERS, ¡SUPPLIERS, ¡CLASS ¡ORGANISATIONS, ¡ SCHOOLS ¡& ¡COMMUNITY ¡GROUPS ¡

ESI Knowledge Academy

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ExisBng ¡ Planned ¡

COMPANY CONFIDENTIAL www.esijackup.com

Global ¡training ¡in… ¡ ¡

• Jacking ¡Systems ¡
• Skidding ¡Systems ¡
• Crane ¡Systems ¡
• Drilling ¡Equipment ¡
• LiQ ¡& ¡Roll ¡Systems ¡

The capture, preservation & sharing of the tacit knowledge which existed within the minds of employees at ESI has now allowed us to improve…

• Safety
• Quality
• Lead times
• Troubleshooting
• Product design

Now that this knowledge base exists we are collaborating with customers, suppliers and class organisations to further improve performance across the industry Next steps in this process are…

• IADC Course Accreditation
• API TPCP Accreditation
• Online Academy
• Virtual Class Room
• Online Training Guides (You Tube)
• Smartphone/tablet based tools
• Google Glass Pilot Program

What Are The Next Steps

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Thank You & Questions?

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