Exploration & Production
SITUATION
Major gas exploration and production company needed to significantly reduce operating costs by improving schedule performance and enhancing the ability to forecast and plan.
DRIVER GOAL
- Compress the Exploration through Production cycle by 8 days (10%).
RESULT
- Identified annualized savings of over $15,000,000.
- Compressed the Exploration through Production cycle by 13.1 days (16.25%)
Case Study
Transform Operation (Lean) & Optimize Supply Chain
Issue
A major gas exploration and production company needed to significantly reduce operating costs. The Highland Group was asked to assist with improving schedule performance, enhancing the ability to forecast and plan, and reducing lost time for major pieces of equipment.
Highland Approach
The Highland Group’s analytical professionals conducted an analysis of the operation to identify root causes of equipment failure and cost and performance improvement opportunities. Concurrent with the implementation of the targeted improvements, the team set about developing and implementing a structured management system to link high-level Driver Goals to field projects and performance and to enable the organization to maintain and build upon the gains achieved.
Actions Taken
- Utilized Lean and Six Sigma tools to define and implement process and fleet improvements.
- Developed and implemented a project management system that reduced overtime, complied with DOT regulations and improved the level of service. The system supported:
- Well scheduling;
- Resource management;
- Performance measurement;
- Coordination of activities;
- Communication of status and action items;
- Forecasting of events, resource needs, backlog amounts, and potential costs; and,
- Evaluation of departmental performance to schedule.
RELATED CASE STUDIES
