Driving operational performance in oil and gas

m
3. Supplier and contractor
management
L e ad i n g o p e rat o rs u n d e rs t an d t he y
u s t l e v e rag e t he i r s u p p l i e rs an d
co n t ract o rs t o achi e v e t he d e s i re d
l e v e l o f o p e rat i o n al p e rf o rm an ce .
Key challenges
• ►Prequalification and contracting: While supply chains and supplier networks have
become increasingly complex, prequalification requirements and contracts have
f ai l e d t o cap t u re t he s e co m p l e x i t i e s .
• ►Supplier and contractor risk: With increasing impact on business and operating
performance, risks associated with these portfolios must be adequately
understood, quantified and mitigated.
4. Asset reliability and
integrity management
• ►Field management and analysis: When organizations work with suppliers and
co n t ract o rs w ho s e p e rf o rm an ce i s n o t re l i ab l e an d w ho s e s e rv i ce av ai l ab i l i t y i s
unpredictable, value can erode by as high as 10%-15% due to ongoing inadequate
m an ag e m e n t an d f ai l u re t o m o n i t o r p e rf o rm an ce .
Key challenges
T he p i n n acl e o f g re at o p e rat o rs i s t he i• r ►Maintenance, reliability and integrity processes: When an organization fails to define
ab i l i t y t o re l i ab l y m e e t p ro d u ct i o n asset strategies, identify critical risks, institute appropriate barriers of protection,
targets and expectations. This requires an d o p t i m i z e as s e t an d p e rs o n n e l p e rf o rm an ce , t he i r as s e t p e rf o rm an ce s u f f e rs .
t he m t o t ran s i t i o n cap i t al p ro j e ct s
• ►Shutdown and turnaround management: Too often, organizations fail to effectively
i n t o p ro d u ci n g as s e t s , i m p ro v e d ay -
p l an , s che d u l e an d e x e cu t e t he s e m aj o r f aci l i t y i n s p e ct i o n s / re p ai rs i n a w ay t hat
t o - d ay as s e t u p t i m e an d m i n i m i z e t he
e n s u re s o n - t i m e co m p l e t i o n , co s t co n t ro l an d s af e co m p l e t i o n o f act i v i t i e s .
i m p act o f p l an n e d o u t ag e s .
• ►Operational readiness planning: When integration and planning are inadequate,
operators face increased difficulty in reaching the new assets to anticipate
p ro d u ct i o n n u m b e rs o n t i m e an d o n b u d g e t , w i t ho u t e x p e ri e n ci n g re cu rre n t i s s u e
t hat u p s e t p ro d u ct i o n .
5. Cost efficiencies Key challenges
T he m o s t s u cce s s f u l o rg an i z at i o n s • ►Cost drivers: Often we see organizations focused on first- and second-level drivers
i n s t i t u t e s y s t e m at i c ap p ro ache s t o without adequately understanding the third- and fourth-level drivers, leading to
i d e n t i f y an d t he n e l i m i n at e s o u rce s o f the true causes of inefficiency and cost escalation to be misdiagnosed, ultimately
v al u e l o s s , t arg e t i n g t he hi g he s t - re t u rn l i m i t i n g t he i m p act o f p ro p o s e d s o l u t i o n s .
areas first.
• ►Production management optimization: Through production planning, a robust
m an ag e m e n t s y s t e m , l o s s re p o rt i n g an d ro o t cau s e an al y s i s , p ro d u ct i o n
o p t i m i z at i o n can o ccu r. F ai l u re t o p ro p e rl y m an ag e an y o f t he s e are as ro u t i n e l y
l e ad s t o s u b o p t i m al p ro d u ct i o n , d i re ct l y i m p act i n g b u s i n e s s re s u l t s .
Driving operational performance in oil and gas |
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