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Oil & Gas

NEEDS-BASED RESULTS

 

Oil & Gas

SITUATION

Canadian oil sands corporation needed help to implement a structured management system in concert with a corporate-wide reliability initiative.

DRIVER GOAL

  • Achieve a 20% productivity improvement in contractor trade labor.
  • Reduce excess and slow-moving spares inventories by 50%.

RESULT

  • Reduced excess and obsolete inventories by $555,000.
  • Achievered organization reduction benefits of $2.4 million for contractors and $750,000 for client personnel.
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Case Study

Restructure Facilities Management, Improve Productivity & Reduce Costs

Issue

Having recently completed a Discovery and Design engagement with this Canadian oil sands corporation, The Highland Group concluded that the client lacked the structure, process, tools and behaviors to support sustained contractor productivity improvements. However, putting a structured management system in place in concert with the corporate-wide reliability initiative would free up 20% more hours for time on tools (based upon field studies) and improve materials management. Additionally, the current organizational structure, roles, accountabilities, and request to job execution process were in a state of transition.

Highland Approach

The Highland Group developed customized training packages for short-interval management and a System For Managing specifically targeted at work selection, planning, scheduling and execution processes. Partnered with client teams to develop and install new reporting and tracking processes and systems that were focused on removing barriers and increasing contractor productivity and reducing maintenance costs.

Actions Taken

  • Designed and installed a System For Managing for each of the Facilities Management and Operations organizations including short-interval management.
  • Installed an excess/obsolete material depletion process targeted towards optimizing purchased part avoidance.
  • Redesigned and realigned work order process flow around the corporate reliability initiative.
  • Realigned the organization around defined roles and responsibilities.
  • Installed daily, weekly and monthly departmental governance and stewardship reporting mechanisms.
  • Aligned the client’s Facilities Maintenance organization around the corporate wide reliability initiative operating principles faster than any other Facilities organizations in all of the corporation’s families worldwide.

Achieved annualized savings on contractor labor of

$2.6m

and aligned all new processes to the corporation’s worldwide reliability initiatives

Related Information

industry-based

subject matter-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.