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Oil & Gas

NEEDS-BASED RESULTS

 

Oil & Gas

SITUATION

Large Canadian oil producer, with $5b in annual capital projects, needed help to resolve issues with significant cost overruns.

DRIVER GOAL

  • Reduce the cost of execution by 20% for major and base capital projects.

RESULT

  • On target to achieve a 20% improvement in project cost and schedule attainment.
  • Implemented a methodology for tracking cost and schedule attainment.
CS-325 large

Case Study

Reduce Capital Expenditures

Issue

One of the largest oil production companies in Canada was experiencing schedule and cost overruns in capital projects. With more than $5 billion dollars in annual capital projects, it was determined that significant gains could be made by implementing a more formal system to manage the project work, remove barriers and improve performance in relation to productivity, schedule attainment, headcount control, indirect costs, overtime, and the tracking of contract terms and conditions. The Highland Group was asked to customize and implement a System For Managing capital projects, to deliver improvements in meeting budget and timeline, and deliver a 20% decrease in cost of execution.

Highland Approach

The Highland Group analyzed the existing project management system to understand the cause of delays, redundancies and budget overruns, then designed a structured project management system to give visibility to project team performance and enable management to control overall execution.

Actions Taken

Designed and implemented a System For Managing with tools to manage the work, remove barriers and improve performance. Specific components include:

  • Daily and weekly schedules;
  • Daily project controls;
  • Daily and weekly reviews;
  • Short-interval management tools;
  • Barrier identification and removal;
  • Schedule attainment and tracking; and,
  • Modularized training for future projects.

On target to reduce capex by

20%

for major projects

The Highland Group delivered a practical, consistent method for project management that provides structure and puts more accountability on the contractor.

Related Information

industry-based

Project Leader

Manufacturing & Industrial

Joseph is a senior executive with more than 40 years of international industry management and consulting experience, primarily in the areas of process improvement, working capital optimization and operational metrics. Having served in more than 21 countries around Latin America, the Caribbean, the Pacific Rim, and North America, Joseph is skilled at implementing successful and sustainable change programs in culturally diverse environments.

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.

Project Director

Mining

Sean is an executive with more than 17 years of experience in operational management, process improvement, cost reduction, revenue enhancement and consulting in multiple industries, including mining. He has participated in several operational engagements in the mining sector worldwide.