Yinson Annual Report 2020

76 MANUFACTURED FINANCIAL NATURAL SOCIAL & RELATIONSHIPS HUMAN ORGANISATIONAL Yinson Holdings Berhad SECTION 4 OUR CAPITALS Asset Lifecycle Management ALM is defined as the process of managing an asset from ‘cradle to grave’. ALM aims to optimise asset usage by identifying potential inefficient processes in each stage of an asset’s lifecycle, derived through the monitoring and utilising of available data. Ultimately ALM aims to safeguard the integrity of our assets, optimise performance and provide objective data-based recommendations for continuous learning and development through all phases of a project. Yinson focuses on four main areas within ALM, which are Asset Reliability, Asset Performance Data, Maintenance System Management and Lifecycle Efficiency. In FYE 2020, the ALM Department was established, with strategy and goals formalised and communicated across the Group. With the concept and organisational structure now in place, Yinson will focus on optimising the already established systems that fall within ALM and further establish new identified functions, such as Performance Data Management and Lifecycle Efficiency processes. Enhancement of Group’s ERP system Since 2014, Yinson has embarked on a continual improvement initiative to synchronise accounting data through a Group-wide ERP system named IFS. The system enables information to be seamlessly shared amongst departments and across geographical borders, decreasing communication gaps and creating greater time and process efficiencies. A key benefit of this system is that it creates a digital, near paperless operation environment. While this has an obvious positive impact on the environment, it also results in integrated and common information outputs from stakeholders, improving cost analysis integrity, quality and efficiency. During FYE 2020, Yinson performed a successful upgrade to the latest version of IFS. Out of the box came modern interfaces, global and intercompany support as well as enhanced support on customer configuration. With the stabilising phase nearly over, focus is moved to harvest the benefits where Yinson will explore and optimise usage and functionality of IFS including third-party add-ons. The areas Yinson are currently exploring covers accounting, supply chain, document management, project and Computerised Maintenance Management System (“CMMS”) modules. In the same year, IFS CMMS module was progressively and successively rolled out to its operational FPSOs. The CMMS module is tightly integrated with full supply chain, document management and accounting, all in a replicated solution providing full access to needed data both onshore and offshore. In terms of accounting, as at 31 January 2020, Yinson has completed migration of 51 out of 57 reporting sites to the IFS system, with the remaining sites targeted to be migrated by December 2020. GOALS SET FOR FYE 2020 PROGRESS GOALS SET FOR FYE 2021 Expand our offshore communication system to include digital reporting for punchlists, mechanical completions and commissioning Currently being implemented for FPSO Anna Nery project Implement on all future projects Strengthen Corporate Advisory function through digitalisation Explore digitalisation solutions for tax and treasury processes • Implement new Treasury Management System • Implement new Tax Management and reporting solution