At a Glance
One of the world’s leading oil and gas companies, operating in all areas of the sector, selected Renoir as its preferred supplier to support its global upstream operations in improving the efficiency of work execution.
Renoir conducted 28 studies and data analyses, engaged 70 people, and logged 268 potential improvement opportunities before developing a roadmap to implement the opportunities.
At the end of the project, our client successfully increased their technician wrench time, reduced backlog hours, and was on track to realize US$7 mil in potential savings, with approximately US$1 mil realized in the closing year.
Key results
35%
permit preparation readiness 14 days ahead of schedule
40%
reduction in backlog hours from 20,000 to 12,000
82%
increase in technician wrench time
83%
reduction in control of overdue work
Background
Our client is one of the world’s leading oil and gas companies, operating in all areas of the sector, including upstream, refining, petrochemicals, and retail and marketing. At the time of this project, they were working with their joint venture partners to produce 3mmboe/d.
They established their first office in West Asia in the 1990s and operate under several production sharing and host government agreements. Their facilities include offshore oil and gas platforms, a processing terminal and export pipelines.
Analysis
A task force team, known as the Tiger Team, was established to ensure the quality and sustainability of the Work Efficiency Improvement Project (WEIP). The WEIP was designed to ensure safe and efficient work execution through process improvements and cross-functional integration of three key execution processes: work control, activity planning and work management system.
Based on a 15-year history of successful collaboration covering upstream and downstream work between the client and Renoir, we were selected as the preferred supplier to support the client’s global upstream operations in improving the efficiency of work execution.
A partnership was established between the client’s office and Renoir Consulting to:
- Develop the client’s team to successfully implement the WEIP throughout the region in an autonomous and sustainable manner.
- Achieve targeted financial results based on active steering of nine identified operational Key Performance Indicators (KPIs) and:
– Ensure safe execution of work through improved schedule stability
– Increase productivity by improving wrench time and schedule performance
– Optimize core and contractor workforce to align with productivity improvements
– Identify waste and cost reduction opportunities
To define and quantify the opportunities, a “Go See Assess” analysis was conducted to enable Renoir’s team of consultants to identify gaps in compliance with the existing planning and scheduling process, execution efficiency, contractor management system and KPI effectiveness.
Renoir conducted 28 studies and data analyses, engaged 70 individuals and logged 268 potential improvement opportunities across five different processes. Key findings were then discussed and a roadmap for implementing the opportunities was delivered and agreed with key stakeholders.
“Focused approach with dedicated resources helped us to deeply understand our operation challenges, identify and implement improvement solutions. I am very pleased with progress so far and looking forward to expand this initiative to wider Midstream organization.”
Project Approach
A project team was set up consisting of subject matter experts in planning, scheduling, production and maintenance from the client’s office and Renoir consultants.
The change phase of the project consisted of two phases, Renoir’s Focus Process® and Installation. During the Focus Process phase, we formed the change team and engaged with the client’s key results owners. Together with key stakeholders, the team developed detailed solutions to ensure full alignment with the project goals, deliverables and plan.
The project covered two aspects, technical and tactical. The technical solutions were aimed at changing the management system elements and improving process efficiency. The tactical aspect included the training and individual coaching sessions for the client.
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Implementation
The changes agreed upon during the “Go See Assess” phase were implemented over a period of 30 weeks in these four major workstreams:
- The overall Management Control System (MCS)
- Planning and scheduling for operations and maintenance
- Execution discipline
- Contractor management
Approximately 40 solutions across these workstreams were developed in detail, visualized, dry-run and agreed with the stakeholders.
Activities
The core of the implementation process was daily coaching of key stakeholders. Activities included meetings and maturity assessments. Scorecards were reviewed on a weekly basis to ensure behavioral change and full implementation changes.
During the 20-week implementation period, the project team worked closely with client experts to install solutions that positively impacted KPIs, meeting effectiveness, permit preparation, and contractor efficiency.
Key personnel were trained on the new solutions to facilitate process improvements. Role-based coaching was instrumental in embedding the new solutions into daily routines to maximize their impact.
Key client roles were also trained in fact-based decision making. KPI dashboards were installed and used to monitor the performance of the nine identified operational KPIs and to drive improvement actions based on the root causes identified in the dashboard.
In parallel with the process improvement, the Tiger Team was trained on the fundamentals of the Renoir implementation approach. The training was designed to support the rollout of the WEIP and build implementation capability for future change and improvement projects.
Results
20%
reduction in scaffolding quota from 500 tonnes to 400 tonnes by permanently removing 130 tonnes of long-standing scaffolding
25%
reduction in management meeting hours from 954 to 687 hours per month
US$7 mil
in potential savings with approximately US$1 mil realized by year-end of the project
The WEIP has achieved significant success in four key areas:
- Exceeded financial targets
- Improvement in KPIs: Stakeholders at various organizational levels agreed to significant improvements in five out of nine KPIs, including wrench time, overdue backlog, overdue permits, schedule stability, and PM conformance.
- Create a cultural shift: A clear change in people’s mindsets and behaviors laid the groundwork for sustainable change.
- Develop a skilled team of change agents: The region now has a team with the confidence and skills to implement further improvements in the future.
Based on these successes, the client is now considering applying the same approach to its offshore assets in the region.
*We have intentionally omitted client-specific details to maintain strict confidentiality.
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