Greater use of Assets: Oil&Gas Company Increases production and profitability to historical levels.

Seeking to put behind difficult financial years, the company sought greater use of its assets by centralizing certain processes and better articulating the different business processes to better serve the client.

 

Context:

 

After years of very tight profitability, in 2013 the company finally managed to reverse the situation with high alignment and leadership where the pull strategy from the client had a relevant preponderance.

Opportunities:

 

6 multidisciplinary teams were formed to comprehensively address the operation of the company, who detected opportunities for productivity improvements. A change was generated in the way of approaching internal challenges, incorporating fresh perspectives from multiple areas that allowed the existing silos to be broken.

 

The following work fronts were defined:

  • Management of inventories where the client needs it.

  • Logistics and transportation according to inventory management.

  • Management of the productive capacity of assets.

  • Centralized production capacity planning with integrated S&OP process.

  • Planning in the purchase of raw materials according to the new operating parameters.

  • Role of people in this new scenario of planning and production in continuous operations.

 

Proposed actions:

 

The teams identified the following solutions to the opportunities found:

 

  • Incorporation in volume coordination meetings with the largest clients.

  • Review of the transport system and pipeline logistics according to the new levels of production in the refineries.

  • Monitoring of production planning considering the refineries as a system and not individually.

  • Incorporation of supplies of raw materials considering the new systemic scenario.

 

Results:

 

In 2013, the company achieved historical results in profitability. The teams continued to work as part of their day-to-day work on continuous improvement, managing to significantly increase returns in the following years despite the change in leadership that it had.

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