Intelligent Energy – KCA Deutag Implementation

Tailored technology is the key for oil and gas sector companies seeking to address the modern-day commercial imperative of developing and delivering effective business management systems in an increasingly global operating environment.

The successful delivery of a new SAP system by independent consultancy Absoft for international drilling and engineering contractor KCA Deutag is testimony to the direct gains to be made from taking an integrated approach to critical areas such as human resources and payroll management.

KCA Deutag had already been using a version of SAP for finance, human resources and some material management at its German base, but not in the UK. Consequently, disparate legacy systems began to accumulate across its various international sites and business functions.

The group required a system that would provide a single global platform from which to operate and support its growth, across all of its companies – and decided that implementing SAP R/3 Version 4.6c throughout the organisation would provide the scalability required, whilst maintaining standardised business processes across the organisation’s global operations.

With Absoft engaged to carry out the full, detailed implementation, the project was to be completed in two phases: the first encompassing finance, controlling (FICO) and human resources (HR)/payroll; the second featuring plant maintenance and materials management modules.

The first phase has been delivered successfully and on budget - and Absoft retained to provide ongoing expert support for HR, payroll and finance in the UK.

The HR module features a series of key areas of functionality and bespoke reporting, including competency management, UK and international payroll, organisational management, time management, personnel administration, training and events, and personnel development.

Phase one completion means KCA Deutag now has established common business processes across the organisation, designed to support its future growth and enable more effective use of resources.

The first phase has:

  • created a single source of data relating to a host of personnel-related issues that integrates seamlessly with other business areas
  • generated more accurate and effective workforce-related decision-making
  • increased productivity due to the elimination of tasks such as data entry duplication
  • reduced training and mobilisation costs thanks to increased automation of routine tasks.

In the longer term it’s expected that KCA Deutag will enjoy increased competitive advantage and margin protection due to optimised competency management, reduced cost of compliance with HSE and legal requirements, lower IT system costs, and increased employee satisfaction.

KCA Deutag HR Co-ordinator Susan Young said: “The fact that our new system is fully integrated and set up to met the precise needs of our business means we can get things done so much more efficiently now. All the HR, payroll and competency information and processes we need are easily accessible, and SAP’s powerful reporting facilities allow us greater control over work scheduling and resource planning.”