An Oil and Gas Company Gets Lean to Fuel Significant Savings

Rather than transfer the burden to customers and shareholders, the client tasked us with streamlining operations and eliminating unnecessary elements and tasks to make the company leaner and more efficient. We started by focusing on workforce reductions that would have a significant impact on second- and third-quarter earnings. We noted the organization had too many managers and supervisors. In one division, a supervisor might be responsible for up to 25 people. In another, a similar supervisor would oversee just six subordinates. To better balance the workforce, we used span of control diagnostic tools, looked at current organizational charts, interviewed managers, defined essential business tasks and separated core activities from less essential items.

Next, we focused on eliminating unnecessary work flows. Some tasks needed to be tied into the overall operating framework to increase their efficiency. Our team also focused on streamlining essential business processes that weren’t naturally absorbed after the acquisitions. By optimizing processes, we positioned the company to operate at optimal efficiency.

To drive operating expenditure reductions, we used process mapping to depict current processes. Employing lean methodology, we worked with the process owners to identify and correct gaps. We found ways to optimize transit tasks by reducing the amount of time spent driving between sites.

We then applied the same logic to the pipeline management operating system. With hundreds of assets and thousands of tasks, our client needed a better way to schedule the tasks of measurement technicians. By rotating pumps and valves, inspecting pipes, checking for corrosion, checking for deformation and looking for leaks, we identified the best way to manage these functions via work orders. Given the high level of regulatory scrutiny in this industry, accuracy and accountability were of paramount importance. Failing to adhere to regulatory standards would result in further inspections and fines.

We helped our client schedule their pipeline operators and divide areas of responsibility into zones with defined travel times between them. We also created a tool to re-sequence tasks and minimized travel time by implementing a call-in process. After operators completed tasks, supervisors could monitor the results and investigate potential delays.

Rather than transfer the burden to customers and shareholders, the client tasked us with streamlining operations and eliminating unnecessary elements and tasks to make the company leaner and more efficient. We started by focusing on workforce reductions that would have a significant impact on second- and third-quarter earnings. We noted the organization had too many managers and supervisors. In one division, a supervisor might be responsible for up to 25 people. In another, a similar supervisor would oversee just six subordinates. To better balance the workforce, we used span of control diagnostic tools, looked at current organizational charts, interviewed managers, defined essential business tasks and separated core activities from less essential items.

Next, we focused on eliminating unnecessary work flows. Some tasks needed to be tied into the overall operating framework to increase their efficiency. Our team also focused on streamlining essential business processes that weren’t naturally absorbed after the acquisitions. By optimizing processes, we positioned the company to operate at optimal efficiency.

To drive operating expenditure reductions, we used process mapping to depict current processes. Employing lean methodology, we worked with the process owners to identify and correct gaps. We found ways to optimize transit tasks by reducing the amount of time spent driving between sites.

We then applied the same logic to the pipeline management operating system. With hundreds of assets and thousands of tasks, our client needed a better way to schedule the tasks of measurement technicians. By rotating pumps and valves, inspecting pipes, checking for corrosion, checking for deformation and looking for leaks, we identified the best way to manage these functions via work orders. Given the high level of regulatory scrutiny in this industry, accuracy and accountability were of paramount importance. Failing to adhere to regulatory standards would result in further inspections and fines.

We helped our client schedule their pipeline operators and divide areas of responsibility into zones with defined travel times between them. We also created a tool to re-sequence tasks and minimized travel time by implementing a call-in process. After operators completed tasks, supervisors could monitor the results and investigate potential delays.