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 – 22 nd May 2014 IADC ¡ 1 COMPANY CONFIDENTIAL 5/22/14

Who Are ESI? 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 Bringing ¡together ¡more ¡than ¡50 ¡years ¡of ¡offshore ¡drilling ¡experience ¡under ¡one ¡roof ¡ ¡ COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 2

Contents 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? • COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 3

What is the Problem? (Short ¡Movie ¡– ¡File ¡Size ¡too ¡big ¡for ¡embedding ¡in ¡PPT ¡ ¡ Please ¡click ¡on ¡You ¡Tube ¡Link ¡> ¡hGp://youtu.be/vMgWhzfa5R4 ¡) ¡ COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 4

Some Definitions 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. COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 5

Why is Competence Important? 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 • COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 6

What is Tacit Knowledge? 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 COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 7

Why do We Need To Capture It? The Demographic Time Bomb – Age Range of E&P Staff • Average ¡age ¡is ¡50 ¡years ¡old ¡ 30% ¡ • 50% ¡of ¡staff ¡will ¡re=re ¡in ¡next ¡5 ¡yrs ¡ 20% ¡ • 54% ¡in ¡role ¡for ¡less ¡than ¡2 ¡years ¡ ¡ ¡ 10% ¡ • 53% ¡cite ¡lack ¡of ¡training ¡as ¡# ¡1 ¡issue ¡ ¡ 0% ¡ • *Hays ¡Oil ¡& ¡Gas ¡Salary ¡Report ¡201/Rigzone ¡ < ¡25 ¡ 25-­‑29 ¡30-­‑34 ¡35-­‑39 ¡40-­‑44 ¡45-­‑49 ¡50-­‑54 ¡ > ¡55 ¡ 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 COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 8

How Do We Capture & Share It? 2) ¡TRANSLATION ¡TO ¡TRAINING ¡MATERIALS ¡ 3) ¡INVESTMENT ¡IN ¡ ¡ 1) ¡TACIT ¡KNOWLEDGE ¡CAPTURE ¡ TRAINING ¡INFRASTRUCTURE ¡ 4) ¡RECRUITMENT ¡OF ¡TRAINERS ¡ 5a) ¡INTERNAL ¡DEPLOYMENT ¡ SALES, ¡ENGINEERING, ¡FIELD ¡SERVICE, ¡PROJECT ¡ MANAGEMENT, ¡PROCUREMENT ¡ 5b) ¡EXTERNAL ¡DEPLOYMENT ¡ CUSTOMERS, ¡SUPPLIERS, ¡CLASS ¡ORGANISATIONS, ¡ SCHOOLS ¡& ¡COMMUNITY ¡GROUPS ¡ COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 9

ESI Knowledge Academy ExisBng ¡ Planned ¡ Global ¡training ¡in… ¡ ¡ • Jacking ¡Systems ¡ • Skidding ¡Systems ¡ • Crane ¡Systems ¡ • Drilling ¡Equipment ¡ • LiQ ¡& ¡Roll ¡Systems ¡ XXXX ¡ COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 10

What Are The Next Steps 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 • COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 11

Thank You & Questions? COMPANY CONFIDENTIAL www.esijackup.com 5/22/14 12