Case Study

Lead Time Reduction: Oil & Gas Well Pad Development

Problem

Our client, an upstream Oil & Gas producer, wanted to reduce overall project time to increase total project economics. A Kaizen team was brought in to work with discipline leads to map the process, identify and eliminate waste. 

Root Causes

The client had a multi-disciplinary approach that carried excessive waste in schedule from task to task as different departments were engaged.  It was difficult for client team members to gain an unbiased high-level view of the total process due to the complexity involved.

Solution approach

• Kaizen’s experienced team led a project mapping exercise in order to define the current state, identify waste and determine the ideal future state of the development process going forward.
• Engagement of client’s executive, leaders, employees used extensively.
• Time sensitive decisions made using lean Obeya principles.

Benefits

• Lead time of development reduced from by more than 50%
• Significant financial savings realized from:
  • ­Employee time savings
  • ­Sourcing savings
  • ­Increased NPV due to capital savings and timeline reduction