IT Application
[Font Size:L M S]

Sinopec constantly improves its IT systematic integration and application, offering strong support to its sound and rapid development. The Company’s IT system maintains a leading position among the Chinese SOEs.

ERP construction and application are further improved. With the number of subsidiaries with the ERP system amounting to 101, ERP within Sinopec has realized full coverage. Application of ERP has been improved via emphasis on fulfilling the target and setting up model enterprises. The enterprise ERP application is 100% on target while progress made in setting up model enterprises. 6 subsidiaries including Shengli Oilfield, Yanshan Petrochemical, and Zhejiang Oil Products Co. have been rewarded as model enterprises of comprehensive ERP application.18 subsidiaries including Zhongyuan Oilfield, Yangzi Petrochemical, Guangdong Oil Product Co. have been rewarded as model enterprises of ERP professional module application. The integrated BW system based on ERP enables the headquarters to gain knowledge on operation conditions of subsidiaries and conduct comprehensive analysis. ERP has played a critical role in strengthening management by the headquarters. ERP has been applied in not only resource planning, operation management but performance analysis and decision making.

Application of critical management systems scored new results. Centralized Treasury Management (CTM) system realizes full coverage. Taking advantage of domestic and overseas “Cash Pool”, we guaranteed cash supply while lowering cost. A constant online supervision mechanism for operation transparency helps effectively in combating corruption from its source. Total Budget Management (TBM) system helps the refining sector to achieve budget compiling from the SBU to production units, on-line approval, and a closed-loop management including budget execution monitoring, analysis and evaluation. Audit Information System (AIS) helps to achieve on-line full audit process management, which greatly supports daily coordination and information sharing between the headquarters and subsidiaries.

Production and operation management are further improved. Due to the improvement in production and operation command, supply chain and logistics management in the HQs, tracking of oil tanker route, monitoring of oil product pipelines and service stations are improved. The HQs achieve dynamic tracking and real-time monitoring of its whole production value chain. This not only supports the centralized scheduling and controlling of our operation but also further improves overall resources optimization. It brings significant economic benefits in areas such as optimizing plans, adjusting structure, maximizing volumes, monitoring price, adjusting inventory, tracking tankers and reducing delays. HSE management and emergency response system integrates operation and management among the HQs, subsidiaries and grassroot units, which helps improve the emergency handling ability by delivering HSE management information to the HQs in a timely manner.

IT system applications among subsidiaries are further deepened. Initial results are scored in optimizing production system with steady progress in oilfield E&D data compiling. Source data collection system is adopted throughout 6 oilfield subsidiaries, enabling standardized E&D data collection in 12 business categories. The pilot Shengli Oilfield Data Center achieves centralized management of E&D data at subsidiary level. Pilot application of Oil gathering and transportation optimization system and water injection optimization system are commissioned in Shengli Oilfield and Jiangsu Oilfield. They are rewarded the Third Prize for Sinopec Science and Technology Progress Award with impressive energy-saving and emission reduction effect. An independent IPR software system has been established preliminarily with a number of software reaching similar advanced level as foreign software such as Oil/Gas reservoirs comprehensive interpretation and drilling engineering design systems. They are widely used in our oilfields. E&D decision support system provides solid support to new block discovery and sustainable growth of reserves. MES, APC, and LIMS systems are applied in refining and chemical subsidiaries rapidly. With the MES system as its core, a real-time monitoring and digital management system is preliminarily established. This system provides a solid support to process optimization, resources allocation, cost efficiency and energy saving and decision making. The fuel card sales system and the retail management system are progressing well. The number of service stations where fuel cards can be used is over 20,000. Over 48 million fuel cards have been issued in total. The retail management system provides better customer service through centralized data management for oil products and non-oil products in 31 oil products marketing subsidiaries. Engineering subsidiaries achieve new breakthroughs in integrated application of the following software i.e., three-dimensional plant design, intelligent process pipeline and instrument process design. Some subsidiaries even established an integrated system of process design, engineering design, and project management for better engineering design and work efficiency.

Infrastructure & Information Management are improved. We speed up IT infrastructure construction in marketing subsidiaries outside Sinopec’s principal market and non-listed subsidiaries of the Company, intensify system safety and security check, strengthen maintenance of IT infrastructure and application systems, thus improving the capability in system monitoring and management. With the release of IT management assessment methods, 24 companies are rated as Class A in 2010 based on the following five aspects: IT management, IT development, IT application, system maintenance and information security. Operation and application is improved greatly through a series of “strive for better performance” campaigns like ERP application competition, competition for model enterprise and skill contest.

During the 12th Five-Year Plan period, Sinopec will further speed up its IT construction by improving IT system in non-listed and overseas subsidiaries, further upgrading the platforms of operation management, production and IT infrastructure and maintenance, continuously intensifying the integration of IT system, deepening IT applications, integrating information among subsidiaries and the HQs, setting up a unified, integrated, safe and efficient IT system so as to safeguard the Company’s core competitiveness and the sustained development.