Dublin Core
Title
Value Stream Optimization for Oil Servicing Companies in Ghana: A Case Study of Schlumberger
Creator
Yaw Owusu
Description
In contemporary times, amidst the downturn in the Oil and gas business, many Oil and gas companies have had to fold up, resorted to severe head count reduction or merged to survive. It is therefore ciritcal if not imperative to resort to waste reduction in order to survive the current state of affairs, be sustainable in the long term as part of recovery and making supeior profits by retaining market share with a competitive advantage.
The proposed strategy used in this research is Value Stream Mapping. It’s a tecnique that optimizes the current flow process to identify and eliminate waste. It is a lean tool usaullay used on production floors. In our case it is adopted for a service compnay; Schlumberger Ghana. The research conducted a survey amongst the employee population to help identify waste, evalute their understanding of the Value Stream Mapping, understand how customers and Suppliers contribute to this process and calrify the overall company’s culture in respect to Value Stream Mapping. From the data received in this survey, it was realised that top amongst the issues of logistical delays were poor job planning and unrealistic lead times with 74% and 51% respondents agreeing to this assertion respectively. The data from this survey fed into the development of a leaner workflow logistical process by incorporating a planning team whose sole role is to assit with job planning and provide a better oversight and a dedicated logistics team stationed permanently at the port to assist with clearance of goods. There was an overall improvement in the Current State which had a lead time of 47 days out of which 23.5 days were value-added and 23.5 days were non-value-added times. The future State had 28 days lead time with 16 days value added and 12 days non-value-added time. This means there was a 40% improvement in the lead time comprising of a 19 day reduction, 32% reduction in the Value-added-time comprising of 7.5 day reduction and a 49% improvement in the non-value added-time conssisting of 11.5 days reduction over the current state. With the improvement of the current state and the introduction of the planning team, there is a continous effort to reduce unwanted inventory and obsolete products in the location to zero. This drive to reduce depreciation to the bearest minium coupled with the improvement in the flow stream will offset the financial loses of the company to move them back to profit making in the coming years.
The proposed strategy used in this research is Value Stream Mapping. It’s a tecnique that optimizes the current flow process to identify and eliminate waste. It is a lean tool usaullay used on production floors. In our case it is adopted for a service compnay; Schlumberger Ghana. The research conducted a survey amongst the employee population to help identify waste, evalute their understanding of the Value Stream Mapping, understand how customers and Suppliers contribute to this process and calrify the overall company’s culture in respect to Value Stream Mapping. From the data received in this survey, it was realised that top amongst the issues of logistical delays were poor job planning and unrealistic lead times with 74% and 51% respondents agreeing to this assertion respectively. The data from this survey fed into the development of a leaner workflow logistical process by incorporating a planning team whose sole role is to assit with job planning and provide a better oversight and a dedicated logistics team stationed permanently at the port to assist with clearance of goods. There was an overall improvement in the Current State which had a lead time of 47 days out of which 23.5 days were value-added and 23.5 days were non-value-added times. The future State had 28 days lead time with 16 days value added and 12 days non-value-added time. This means there was a 40% improvement in the lead time comprising of a 19 day reduction, 32% reduction in the Value-added-time comprising of 7.5 day reduction and a 49% improvement in the non-value added-time conssisting of 11.5 days reduction over the current state. With the improvement of the current state and the introduction of the planning team, there is a continous effort to reduce unwanted inventory and obsolete products in the location to zero. This drive to reduce depreciation to the bearest minium coupled with the improvement in the flow stream will offset the financial loses of the company to move them back to profit making in the coming years.
Subject
MSc Engineering Project Management
Publisher
Ghana Technology University College
Date
January 2018
Contributor
Mr. Emmanuel Kyere-Frempong