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Decrease in unplanned deferment and increased productivity! (Exploration & Production, Case Study) |
Background
The client is a multi national oil company engaging over 245,000 employees, joint venture staff and contractors in 37 countries. Production in 2008 at all oil & gas facilities averaged 3.2 million barrels of oil equivalent (boe) daily.
As is in any similar organisation there are defined requirements to perform corrective and preventative maintenance activities. In recent years the client has, though, recognised that the costs of maintaining off-shore and on-shore installations have been rising faster than expected - sometimes alarmingly so. To make matters worse, unplanned deferment rates have also continued to rise with a perception that manpower produc-tivity was decreasing.
Some underpinning causes were identified in Operational Excellence assess-ments that were carried out at several installations. Common themes that were considered to be major contributors to the problems were: little or no maintenance of planning & scheduling, lack of transparency between operations, engineering and maintenance activities, poor utilisation of SAP, and metrics (KPIs) that had no connection to the overall work management process.
The challenge
Achieving buy-in into the case for change and presenting the causes to a wider community of onshore and offshore leaders. This was accomplished by:
1. Identifying reasons for the increase in costs
2. Evaluating the influences that identify and affect the “what’s in it for me” factor
3. Finding the ways and means to reverse unplanned deferment
The solution
A tactical team was chartered to focus on the Work Management process. This tactical team was sponsored by the VP of Exploration and Production (E&P) and became one of the top 6 must dos in all of E&P. The focus for this team was to identify, develop, install and sustain an improved work management process that would focus on three primary areas and their interfaces. The primary focus areas were maintenance planning and scheduling, optimisation of SAP, and the appropriate KPIs.
The elements of the initiative build on the foundation laid by the ongoing improvement processes of Root Cause Analysis (RCA) and Equipment Improvement Teams (EIT). While EIT and RCA focus on defect elimination in plant and machinery across on-shore and off-shore facilities, the three work order management themes focus on waste elimination in the maintenance workflow process to deliver a structured, disciplined approach in the way installations are maintained. This project has now taken on a life of Global implementation. The directive is to have this process installed at all identified Top Quartile assets by year-end 2010.
This implementation is about teamwork - it is about Operations and Maintenance teams working together with their support teams to deliver safe, reliable production with a focus on delivering world class maintenance processes covering the following key areas:
• Identification and Prioritization
• Preparation (what and how, including materials and services)
• Scheduling (who and when)
• Execution and Close Out
• Review and Improvement
Implementation is being driven through a combination of changing the way people work together as teams, improving the way in which SAP is used to enable maintenance delivery and ensuring consistent use of a Measures Dashboard for gauging performance and supporting business decision-making.
Benefits
Prior to these improvements, schedule compliance averaged around 10%, while PM compliance averaged around 90%. By trending the process measures the team began to identify and remove the waste from the process, which then allowed them to focus on the delivery of maintenance and achieve right first-time success. Schedule compliance is now better than 80% with PM compliance running at over 98%.
The performance is viewed in the Dashboard and discussed as a part of the Dashboard review meeting.
• Reduced oil deferment by over 18% and gas under-deliveries by over 25%
• Close to 100% reliability ytd, having finished the previous year at 89%
• Getting through 15% more work with the same number of people
• 5980 boe/day improvement just in one region. This is the equivalent of adding another plant to the fleet.
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Benefits
• Cost-savings opportunity of 20% to 30%
• Identification of the main causes of waste
• Greater than 15% productivity
• Overview of unproductive work hours and their causes
• Achieving > 80% schedule compliance and > 98% PM compliance within 9 months
• Reduced oil deferment by over 18% and gas under-deliveries by over 25%
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Decrease in unplanned deferment and increased productivity! (Exploration & Production, Case Study) »