Veritas Case Studies

Case Study: Capability Improvement Plan

Written by Marketing | Feb 9, 2021 8:06:43 PM

Client: Mid-sized, onshore production operator

Situation 

A mid-sized, onshore production operator was seeking to reduce costs. The low crude price environment was demanding a more efficient use of both human and financial resources. Senior management believed there could be a high-value yield if they could figure out a way to leverage data more effectively.

Challenge 

The field personnel had been frustrated in the past when they were forced to apply digital solutions that were not fit-for-purpose. This time there was no room for failures or drain on resources since they had just gone through a firmwide headcount reduction. Additionally, safety needed to come first.

Approach

Bringing together the boots-on-the-ground personnel to have an initial workshop followed by multiple collaborative roundtable discussions, drove the conversation to avoiding lost production while improving maintenance costs for surface equipment. The three primary capabilities they needed to address would improve Operational Excellence:

  • Predictive maintenance/reliability (a shift in mindset from preventative maintenance)
  • Remote monitoring & optimization
  • Improved data acquisition and collaboration with service companies
The discussions centered around the people and process requirements first, followed by robust understanding of what a fit-for-purpose technical solution needed to deliver. Most importantly, any efforts would need to drive improvement in the following Key Performance Indicators (KPIs):
  • Throughput (avoid lost production)
  • Reduced corrective and preventative maintenance
  • Improve predictive maintenance (using data and analytics)

In conjunction with an ecosystem of digital solution partners to perform an analysis of the existing data infrastructure, a Capability Improvement Plan was developed to define cross functional workflows and personnel responsibilities. The analytics solution was then created to support the operational designs.

Results

An engaged workforce collaborated to execute a roll-out plan that was designed in stages from proof of concept to rapid implementation. The first documented result was a reduction in scheduled maintenance by 6-months. A subsequent result was identified as a $25 million year-over-year reduction in maintenance and repair costs.

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At Veritas Total Solutions is a management consulting firm that is focused on the energy industry. Our recent projects have helped clients achieve reduced operating costs, higher levels of business performance and standardization around best practices. We have achieved this through a combination of strategy, technology, and business process optimization. If you want to chat with us or if you are interested in learning more about our Integrated Operations capabilities, contact us or subscribe to our podcast and blog to stay connected.