Business Impact Summary
"Through Mincom Ellipse, Ecopetrol manages about 289,000 catalogue items, and over 100,000 inventory items of more than 300,000 assets.”
Ecopetrol performs crude oil and natural gas exploration, production, refining, and transportation. Ecopetrol had too many software developments and information needed to be centralized. As a 15-year technological partner of Ecopetrol, Mincom has provided the ideal solution for Ecopetrol’s comprehensive asset management environment. The project had an internal return rate of 165% in five years, with benefits valued at over $20 million, such as:
- Inventory streamlining
- Increased equipment availability
- Operational cost reduction (cost model)
- Savings in man-hours for plant inspections in the materials function
- Integration of operations and maintenance, and strengthening of teamwork
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The Company
Ecopetrol (formerly Empresa Colombiana de Petróleos) performs crude oil and natural gas exploration, production, refining, and transportation. The largest company in Colombia and one of the largest integrated oil firms in Latin America, Ecopetrol has two large refineries (Barrancabermeja and Cartagena) strategically located to supply the domestic market and to export oil and oil products to the southern US. Ecopetrol explores for oil and gas across Colombia, and is expanding internationally through exploration partnerships in Brazil, Peru, and the US (Gulf of Mexico). In 2007 the company reported proved reserves of 468 million barrels of oil equivalent. The Colombian government owns 90% of Ecopetrol.
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The Challenge
Ecopetrol had too many software developments and information needed to be centralized. After a meticulous evaluation process, Ecopetrol decided to initiate a project called “Corporate Maintenance, Materials and Accounts Payable Management System” (known by its Spanish acronym, SCAM), the goal of which was to implement Mincom solutions at Ecopetrol for managing maintenance, materials and treasury with the object of optimizing the management function, maximizing profitability, and minimizing costs. With this goal and enterprise vision in mind, Ecopetrol sought to acquire an integrated system that was capable of meeting the demands of the areas of Operations, Maintenance and Logistics, thereby optimizing the efficiency of resource management in order to achieve maximum availability and utilization of its assets, and reaching high standards of efficiency, effectiveness and productivity.
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The Solution
As a 15-year technological partner of Ecopetrol, Mincom has provided the ideal solution for Ecopetrol’s comprehensive asset management environment of 2,900 users in 32 districts, 320,000 assets at 125 warehouses, 15,500 monthly maintenance work orders, and 289,000 materials catalogued at an approximate cost of 100 million dollars and a total annual maintenance budget of 350 million dollars.
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The Result
The Mincom Ellipse software solution enables significant maintenance and inventory cost savings and increases the enterprise’s productivity by managing and providing the information necessary for adequate and timely decision-making, thus anticipating needs and minimizing the impact of the risks inherent to the business.
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