Celanese is a global, integrated producer of specialty and intermediate chemical products. Celanese products, found in consumer and industrial applications, are manufactured in North America, Europe and Asia. Celanese is one of the world's largest producers of acetyl products, which are intermediate chemicals for nearly all major industries, as well as a leading global producer of high performance engineered polymers that are used in a variety of high-value end-use applications. Operations are primarily located in North America, Europe and Asia with manufacturing facilities in over 50 countries. The company employs approximately 8,350 employees worldwide and had net sales of approximately $9B in 2008.
Location: Dallas, TX (corporate)
Challenges before ENFOS:
- Environmental reserves and asset retirement obligations not being settled at an acceptable rate
- Difficulties delivering financial performance data
- Long, time-consuming financial planning periods reducing the productivity of staff
- Non-uniform processes, information management conventions, and approval documentation risked audit failures
Results with ENFOS:
- Reduced level of effort for key financial planning and performance management processes
- Improved performance accountability
- Elimination of legacy systems and associated costs ‐ Reduced cycle times to execute business processes
- Enhanced reporting capabilities
- Integration of financial planning with expenditure capture
After a successful implementation in early 2008, Celanese transitioned from a spreadsheet-based financial planning and reserve/ARO management process to the ENFOS web-based, enterprise platform. Additionally, many time-consuming and manual data management tasks were automated through the integration of ENFOS with the Celanese SAP ERP system. Results attributed to the ENFOS solution include better management control and transparency of project-specific and portfolio performance, improved productivity through the elimination of manual tasks and low-value added data administration, and improved decision-making through enhanced reporting and analysis. Contract labor costs have been eliminated for manual preparation and consolidation of multiple files and spreadsheets. Financial planning cycle times have been reduced from 2 to 3 weeks per review period to only 2 to 3 days while improving accuracy and response time. Several key accounting treatments for asset retirement obligations such as accretion and net present value have been automated helping to achieve the desired process improvements. And finally, Project Managers have improved their competencies associated with project financial management and they are able to see, in real-time, the impacts of decisions made regarding site strategy, work scope, actual expenditures, and future expected costs.
Celanese is leveraging ENFOS to improve environmental remediation and asset retirement obligation performance on a global portfolio of projects. Wanting to take a proactive approach, Celanese was challenged with a large portfolio of diverse projects involving multiple currencies, non-uniform data standards, and no single, standardized system or database. Difficulties also occurred with performance analysis across the portfolio and with providing project teams and corporate with performance information between review periods. Combining financial planning information with actual expenditures was a manual process and the flow of information to end-users was not on a real-time basis, creating gaps and exposure to cost overruns and non-supported decisions. Process controls, documentation, and approvals of reserve adjustments were not fully supported in the existing environment prior to ENFOS.
Celanese deployed the ENFOS Reserve Management solution for the active remediation and asset retirement portfolio. As part of the implementation, Celanese integrated ENFOS with SAP to capture actual expenditures and charges on environmental projects, ensuring accurate and real-time reserve balances. Project managers, corporate staff, and environmental consultants were trained on the application based on their role in the overall business processes being managed in ENFOS. All facility master data, including individual projects (environmental matters and areas of concern) are organized in the ENFOS hierarchy according to the Celanese structure supporting reporting, information rollups, and portfolio analysis. Supporting functionality selected by Celanese includes document management, activity planning and scheduling, custom report builder, report scheduler and autoreport generation, Excel reporting templates, and process management controls such as financial delegations of authority, automated next approvers, and the performance dashboard.