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Oil and gas operations achieves 82% increase in technician wrench time

December 5, 2024 | Operational Excellence

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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 its operations.

  • Renoir carried out 28 studies and data analyses, involved 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 realise US$7 million in potential savings, with approximately US$1 million realised 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 execution of work 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:

  1. Develop the client’s team to successfully implement the WEIP across the region in an autonomous and sustainable manner.
  2. 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

    – Optimise 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 people 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 organisation.”

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 the key stakeholders, the team developed detailed solutions to ensure full alignment with the project objectives, 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.

Implementation

The changes agreed upon during the “Go See Assess” phase were implemented over a period of 30 weeks in these four main workstreams:

  1. Contractor management
  2. Execution discipline
  3. Operations and maintenance planning and scheduling
  4. The overall Management Control System (MCS)

Around 40 solutions across these workstreams were developed in detail, visualised, dry-run and agreed with the stakeholders.

Activities

The core of the implementation process was the daily coaching of key stakeholders. Activities included meetings and maturity assessments. Scorecards were reviewed on a weekly basis to ensure behavioural change and full implementation changes.

During the 20-week implementation period, the project team worked closely with the 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 maximise 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 realised by year-end of the project

The WEIP has achieved significant success in four key areas:

  1. Create cultural change: A significant change in people’s mindsets and behaviours laid the foundation for sustainable change.
  2. 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.
  3. Exceeded financial targets
  4. Improvement in KPIs: Stakeholders at various organisational levels agreed to significant improvements in five out of nine KPIs, including wrench time, overdue backlog, overdue permits, schedule stability, and PM compliance.

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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