KRONOS FOR ENERGY

Oil and Gas

Use Case Review

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 • Our use cases apply across the
Industry Segments. However, to
simplify the presentation, we
have placed use cases by
Industry Segments.

Industry Benefits
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Exploration & Production
• The upstream oil and gas industry has long relied on sophisticated technology to safely find
and produce oil and gas resources originating under the earth’s surface

• Onshore or offshore, successful E&P requires a highly skilled workforce, including a firm’s own
employees as well as contractors in the areas of engineering, construction, and oil field
services

• Upstream is turning to technology to improve the effectiveness of its valuable labor resources

• Kronos provides workforce management tools which enable you to optimize the efforts of the
entire workforce so you can achieve your E&P goals in a  safe, cost effective and highly
productive manner

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Automate Complex Pay Policies

BEFORE AFTER RESULTS ACHIEVED

• With a high degree of complexity in
pay rules, variances commonly
occurred between labor hours and
paid hours resulting in significant
over-payment to employees
• Using ERP system to automate
timekeeping was expensive and
required a great deal of manual
intervention to pay people
• Managers spent on average half a
day each week to manage, review
and approve their crews time cards
• Immediate processing of accurate
time data, applying site and union
specific pay rules to actual
employee clock times, made
overtime and other adjustments
effortless
• Pay rules and overtime equalization
were easily configured and
updated without the need to write
or modify code
• Management is alerted when an
timekeeping exception occurs and
requires their attention
1. Reallocate FTEs that formerly
handled time and payroll
2. Technology is flexible enough
to handle 100% of the
organization’s pay policies
across multiple sites and unions
3. Automated pay policies
reduced union grievances, labor
compliance disputes and over-
payment
4. Management given valuable
time back to work on revenue
producing tasks

“As our labor policies change over time, Kronos’ building block approach is the fastest and most
effective way to keep up with those changes, on our own, without the need for heavy customization.”
- Senior IT Analyst/Manager

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Job Costing and Joint Interest Building

BEFORE AFTER RESULTS ACHIEVED

• Unable to determine the true cost
of labor associated by well or job.
Resulted in inaccurate billing and
delays in payment
• Inaccurate labor budgets led to
cost over-runs and increased
unplanned over-time
• Made operational decisions based
solely on a limited high-level view
of tasks, which hit the companies
bottom line directly
• Gained a single, integrated view
of labor, equipment, and WIP for all
activities, from setup to final quality
inspection
• Now capturing work orders from
ERP and production systems and
passing back complete and
accurate labor allocation data
• Able to find the true reasons for
bottlenecks, quality issues, and
inefficiencies
1. Reduced non-productive time
and drove efficiencies in labor
processes
2. Able to grow profit margin by
understanding and controlling
actual labor expense
3. Feeding labor cost information
into corporate accounting and
billing systems for faster, more
accurate customer billing and
payment

“With Workforce Activities, we can collect and analyze labor data across a wide range of criteria such as
employee, job code, department, and project. This insight, combined with detailed activity-by-activity data, gives
us much more control over productivity and labor costs.” - Business Systems Manager

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Transportation
• Tankers and pipelines are proven, efficient and economical means of connecting petroleum supply
and demand

• With both of these means of transportation proper workforce management can mean the difference
in meeting operational and safety goals
• PHMSA regulations and the Jones Act introduce industry requirements which mandate the need to
ensure proper HoS guidelines are met both in the field and in the control room
• Automated schedule enforcements and call list prioritization can ensure that the right resources is in
place at the right time, reducing fatigue related incidents

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Scheduling to Meet Skill and Certification
Requirements
BEFORE
• Encountered challenges related to
providing schedules that
maximize productivity while
ensuring employee safety and
compliance with certifications
• Shift supervisors spent 8-10 hours
per week on scheduling issues
• Managing both the planned and
unplanned time off is difficult and
time consuming with a manual
scheduling process
AFTER
• An optimized scheduling
solution, integrated with automated
time and attendance that aligns
labor needs with operational needs
• Managers create employee
schedules staffed with
appropriately trained and
certified employees easily with
automated selection of best
employee fit to job
• When someone calls off, the
system creates an open shift and a
call list of eligible & best fit
replacement employees
RESULTS ACHIEVED
1. Automated the labor scheduling
process, so the right employees
are in the right place at the right
time
2. Minimized compliance risk with
automated, uniform enforcement of
industry regulations, union
agreements, and/or organizational
policies when scheduling
employees
3. Managers not only reduced labor
costs by making more effective
staffing decisions, they increased
safety and compliance

“In addition to cost savings, the other benefits that we have achieved with the Kronos system
include having the information we need to ensure that every person carrying out work on the site is
trained in those tasks. Over the long term it means fewer injuries, better work practices, and
- General Manager
improved compliance with federal regulations.” © KRONOS INCORPORATED │ 4/6/20 │ 7
Manage Unplanned Overtime

BEFORE AFTER RESULTS ACHIEVED

• Employee timekeeping data was a
week old, so managers couldn’t
adjust schedules to avoid
unplanned overtime
• Complex union rules for awarding
overtime were difficult to adhere to
using manual tracking methods
and grievances were common
• Managers had no visibility into
their employees’ actual worked
time and had difficulty determining
how they were doing against
overtime and labor budgets
• Supervisors get alerts letting them
know when an employee is at risk
of entering overtime
• Over-time rules are automated in
the system so that managers and
supervisors can easily maintain
compliance with union and
company overtime contracts
• Managers can access data in real-
time and make informed overtime
decisions based upon impact to
their labor budget
1. Real-time visibility into
employees’ hours lets managers
adjust schedules to avoid
unplanned overtime, while
meeting customer needs
2. More efficient processes and
data accuracy have increased
manager and employee
satisfaction and reduced
compliance risk

“By seeing overtime in our Kronos solution, managers can drive down
costs by sending employees home if needed.” - Vice President, Operations

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Refining
• The transformation of crude oil into the products that enrich everyday lives is achieved through
complex processes in which equipment and labor play critical roles

• Kronos solutions provide real time visibility into the status of your refining operation – labor, work
in process, and equipment 
• This visibility translates into the ability to make better operational decisions. Decisions which can
help to increase productivity, improve resource utilization, minimize compliance risks, increase
safety and control operational expenses.

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Attendance
BEFORE
• Unable to effectively track employee
attendance, resulting in incorrect
recording of perfect attendance
bonuses and days off
• Relied on paper records for
tracking time and attendance
accessing information from paper
files and three separate databases
• Attendance policies were not
followed by some supervisors
resulting in favoritism and paying
employees for time when they were
not working
“Kronos certainly saves me from having to argue with the union. Even looking at
it conservatively, I’d say that our union grievance rate has declined
between 25 and 30 percent.”
AFTER
• Employees can check their
attendance status any time
through self-service Kronos
terminals
• Attendance policies are enforced
consistently across the company
• Improved attendance tracking has
helped increase employee
engagement and drive up moral
- HR and Safety Director
RESULTS ACHIEVED
1. Able to control incidental &
extended absences resulting in
significant savings
2. Standardized attendance policy
and centralized enforcement
significantly reduces absenteeism
and controls labor costs
3. Accurate leave tracking improves
compliance with state and
federal leave regulation
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Schedule to Demand

BEFORE AFTER RESULTS ACHIEVED

• Struggled enforcing regulatory,
union, and company policies and
generating a complete audit trail of
scheduling and staffing decisions
• Manually tracked overtime and
made multiple phone calls to fill
open shifts
• Schedule problems often required
the use of costly overtime to fill
open shifts. Had no way to assign
shifts equitably in accordance with
union rules
• Able to minimize understaffing and
overstaffing by filling open shifts
with qualified candidates in
minutes, rather than hours
• Removed the guesswork and
manual effort from scheduling of
staff to meet operational demands
• Employees are able to access their
schedules in a familiar calendar
view from time clocks, desktop self-
service, or their mobile phones
1. Increased employee engagement
and minimized understaffing
and overstaffing
2. Leverage integrated labor data
to create optimized schedules and
make real-time staffing decisions
3. Integration of timekeeping with
scheduling is helping drive better
overall staffing decisions that
improve the bottom line

“All plant personnel are cross-trained in multiple functions in our operation, and all are certified in multiple disciplines.
This allows us to flex the entire plant toward key bottlenecks as they are defined. The Kronos scheduling solution
allows us to create optimized schedules and make real-time decisions.” - Plant Safety Manager

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Fatigue Risk Management

BEFORE AFTER RESULTS ACHIEVED

• Unable to track employee work
days and time to DOT/ANSI/API
RP 755 requirements and
recommendations
• Checking schedules manually to
prevent fatigue risk was too time
consuming, complicated and error
prone putting employees and
employers at risk
• Determining the list of employees
who were eligible and available to
fill open shifts was cumbersome,
time consuming and inaccurate
• Automated warnings and
prevention of over scheduling at
risk employees
• Managers assign employees to
shifts without having to sift
through employee timekeeping
records to ensure the limitations for
consecutive shifts or requirements
for rest between work sets are not
violated
• Automated skill and certification
verification allow supervisors to
make appropriate schedule swaps
1. Reduced the costs that result
from worker fatigue, including
accidents, injuries, and
absenteeism
2. Enhance compliance with
ANSI/API RP 755 by
automatically applying Hours of
Service Guidelines
3. Reduced risk of non-compliance
with fatigue management
guidelines and fewer union
grievance filings related to FRM

“By more fully understanding these risks and costs, our firm has reduced absenteeism and
injuries, lessening the risk of accidents, and most notably increasing productivity and
improving quality in daily operations by reducing fatigue impaired work.” - Plant Safety Manager
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Delivery
• Carriers have to contend with unpredictability in the cost of fuel and equipment and the volume of
freight in their networks

• While a transportation management system can help you optimize routes, fuel consumption, and
the movement of goods throughout the channel, and an ERP system can provide transactional
data, if you’re not optimizing your workforce, you’re missing perhaps your greatest opportunity to
impact profit and service levels

• When you optimize employee productivity and control labor costs, you’re able to uncover hidden
capacity, increase margins, and gain a competitive edge

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Attestation at End of Shift
BEFORE
• Had employees hand write if they
witnessed or were involved in a
safety incident at the end of their
shift
• Manually tracked if safety
inspection was done at start or end
of shift
• No way to have employees
validate the hours they worked
AFTER
• Provides a simple and easy-to-
use process for collecting start of
shift or end of shift safety incident
information
• Also used for attesting to meal
breaks
• Employee Validates their hours
worked each day
RESULTS ACHIEVED
1. Able to go back through
attestation responses when
employees wrongfully filed
accident claims
2. When safety incident was noted,
management was able to follow
proper documented procedures
3. Reduced employee grievances
and lawsuits
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Time and Labor Reporting

BEFORE AFTER RESULTS ACHIEVED

• Generating reports was labor
intensive and expensive. Often
times the data was not accurate or
timely. Some reports took days to
compile and get into managers
hands
• No visibility into OT costs until
after the pay period often caused
budget overages
• Managers used week old reports
to make labor adjustments in an
attempt to achieve on-time and on-
budget delivery
• Enhanced Safety Readiness
program with on premise reporting
that helps identify staff on site in the
event of an emergency
• Now able to produce leave, backfill,
and other reports in minutes,
instead of hours or days
• Managers get information how they
like it; consistent, familiar, and
easy for taking prompt action
1. Supervisors and management are
able to make informed labor
decisions quickly and accurately,
improving productivity and
reducing labor costs
2. All Kronos punch data is sent to
the system, giving executives
access to detailed information to
help them evaluate labor costs,
including unplanned overtime
and non-productive time
3. Labor audits made much easier
because all decisions and data
are easily reportable

“We have seen a significant return on investment in going with Kronos by managing
overtime better and having one system instead of separate systems for payroll and HR
functions. Kronos gives managers visibility as employees approach overtime, -to keep Manager
Operations close
tabs on it to minimize labor costs.” © KRONOS INCORPORATED │ 4/6/20 │ 15
Consumer
• To deliver exceptional service you need to recruit, select, and retain best-fit employees who can
provide the highest level of engagement and quality service customers expect from your brand

• It’s the new norm where customers set the bar on customer service expectations

• At Kronos, we’re uniquely positioned to help you follow through on your customer service promise
with our retail-specific suite of workforce management solutions

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Validate Meal Breaks

BEFORE AFTER RESULTS ACHIEVED

• Were unable to ensure meal breaks
were being properly enforced per
state and federal labor laws
• Unable to validate that employees
are not working during meal periods
• Had to pay in excess of $15M
dollars to settle legal claims for
missed meal breaks
• Had no way to block employees
from returning early from their
meals
• A simple and easy-to-use process
for maintaining meal break
documentation
• Managers able to ensure meal
breaks are taken and for the
required time per state and federal
labor laws
• When employee invokes the “No
Lunch” flag the auto-lunch-deduct
for the day is canceled and the
supervisor is notified
1. Improves enforcement of wage
and hour policies avoiding law
suites and penalties
2. Easier than ever to enforce and
validate employee meal time
compliance
3. Should an employee have to work
through a meal break, they are
automatically compensated per
applicable labor law

“Failing to comply with government labor regulations and collective bargaining agreements
can lead to serious financial consequences and other repercussions. With Kronos, it makes it
easier for both managers and employees to comply with state, local, union,Manager
- Field Operations and
organization policies.” © KRONOS INCORPORATED │ 4/6/20 │ 17
ACA Compliance

BEFORE AFTER RESULTS ACHIEVED

• No way for capturing and recording
hours worked to ensure accurate
ACA compliance reporting
• Supervisors unable to easily
validate that they are scheduling
employee’s time in order to
minimize compliance risk while
maintaining appropriate staffing
levels
• Losing customers to competition
as cuts in employee hours
negatively impact customer service
• Maintain accurate employee ACA
eligibility information and monitor
employee eligibility changes
automatically
• Able to quickly schedule
employees while maintaining
compliance with ACA hour
requirements
• Easy-to-run reports containing
employee time information and
have these available to managers in
field locations
1. Organization can show
compliance to Federal agencies
through use of automated system
reports
2. Proper process and systems in
place to ensure ACA compliance
issues are handled immediately
3. Supervisors are able to quickly
schedule employees without
overscheduling or
understaffing

“Kronos helps you stay on top of ACA regulations and organization-specific

policies, so you’re better prepared to maintain accurate, consistent data and provide
proof of your ACA compliance efforts to the IRS and Department of Labor.” - Compliance Manager
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