Page 6 - Shell 2022 Negotiations 20.05.2022

4/ PRIORITY 1: CAPEX REDUCTION

1. Creating & embedding the culture

We see this an opportunity to pivot the culture into a new direction with • AUK also propose an Enhanced VI mechanism linked to benchmark results
both our team and ecosystem of contractors. To accelerate the change we shown later in the presentation.
will setup a 120 day plan with Shell from the contract agreement go ahead.
Encompassing this we be a number of key commitments from our business:
The benefits of the Specification Cost Manager Disruptor
1. Artelia will invest in a dedicated Culture Change Coach Disruptor,
who will act as a change agent, to support and facilitate the change Area or Activity or Topic Potential Benefit
programme for 6 months. The Coach will provide senior members of
the team with one to one mentoring on how to drive the business Scope - Remove/Reduce - Review Reduced cost. Faster times on site.
change across within their teams. overall designs to see what elements
2. Each staff member will be re-inducted to the new culture through of each project can be omitted or
an off-site workshop in conjunction with Shell. This will be led by the reduced
senior leads. Specification - Improve/Change. Reduced cost. Potential to reduce total cost

4. All senior teams leads will have personal VI & KPI’s linked to Capex Identify alternative specifications and/ of ownership by reviewing the overall lifecy-
reduction, they will also have a quarterly review session to ensure or manufacturers and materials to cle of each area of the project.
that Capex reduction culture remains a key component of the reduce cost
contract. Additionally, Artelia Group will increase the bonus levels of Standardisation - Increase standard- Reduced design time, site familiarity with
the team members to encourage the team to make the change. isation of content of each project to components, less time on site, central
reduce design time procurement of components – all to reduce
AUK proposes a new structure aimed at delivering better value which will
feature: cost.
Procurement Strategy - Contractors Lower cost by matching procurement
• Specifications Cost Manager Disruptor - AUK will invest jointly with Shell
in a Specification Manager. Initially this role will be set up by Jim Lye - Review and revise procurement method to project requirements and market
supported by Michael Wagner, who will focus solely on driving benchmark methodology to suit projects being conditions.
savings (covered in the VI section of this presentation), monitoring delivered e.g. moving to a PMC Model
scorecards with several key contractors and supporting the Commercial for Destination Recharge
managers in driving Value Improvement activities. This individual will Reduce waste Reduce cost of waste disposal costs.
report directly to the Shell Key Account Manager. The costs for this
disruptor will be jointly shared between Shell and AUK (circa cost to Shell
£60,000)