TOTAL E&P UK LEAN INITIATIVEoilandgasuk.co.uk/wp-content/uploads/2015/09/Brian-Rodger-TOTAL.… · oktober 15 Lean 6Sigma Yellow Belt Training Feb 2015 . 5 COMEXP LEAN May 2015.pptx

TOTAL E&P UK – LEAN INITIATIVE

Scottish Enterprise

2 COMEXP LEAN May 2015.pptx

Confidential – Do Not Distribute. Working draft for discussion purposes only. Information contained in this document does not imply that decisions have been made to take specific action. Any decisions/ implementation actions will take place within the required social and legal processes.

TOTAL E&P UK LIMITED (TEP UK)

• One of the top three operators in the

UK in terms of production and

reserves

• 2013 – 2014 production about 100 -

120k boep/d

• Employs around 1,100 people (staff

and contractors) > 40 nationalities

represented

• Will contribute almost 10% of the Total

Group’s daily production by end 2015

• Operated budget of £2.35 billion in

2014

• Expenditure of £6 billion over the next

five years.

TOTAL E&P UK LIMITED (TEP UK)



Opex per

barrel

Barrel

price

LEAN PROGRAM DEVELOPED TO PROVIDE AN ANSWER TO CHANGING CONTEXT

Gross

margin = - Declining

Production

volume ( ) x

0

20

40

60

80

100

120

140

01/13 07/13 01/14 07/14 01/15

$/bbl

2014B 2013R 2012R 2011R 2010R

+14%/year $ / Boe1

(MOD)

The context is changing quickly and

Total "way of doing" cannot remain the same



WHAT IS LEAN TO TOTAL E&P UK?

Lean 6Sigma Yellow Belt Training Feb 2015 oktober 15



LEAN OBJECTIVE : REDUCE WASTE

1

2

3

Understand what costs money

Identify associated wastes with

Lean tools and visual management

Prioritise

Follow-up

implementation,

secure impact

Start the cycle again

Conduct solution design for

complex problems

Implement directly 'Just-do-it'

solutions



Type of activity Strategy Desired future state

Obvious

waste

Hidden

waste

Value

adding

activity

Waste Value

adding

activity

Value

adding

activity

Hidden

waste

Reduce

Eliminate

Increase

100% 100%

The resulting gap can be used for value adding activities

INCREASE VALUE ADDING ACTIVITIES, ELIMINATE OBVIOUS WASTE, REDUCE HIDDEN WASTE



Systematic and wide-reaching approach

Fact-based rather than gut-based

Quantifies and prioritises opportunities

Rapid results & continuous improvement

Wide involvement across the organisation

Treats root causes, not symptoms

HOW DOES LEAN HELP US TO REDUCE WASTE?

Characteristics of the Lean approach Possible results

Reduce costs

Increase production capacity

Improve safety

Improve supply reliability

Bottom up approach



THE PROGRAM AIMS TO DELIVER SAVINGS IN LINE WITH AMBITION AND ENABLE TEAMS TO EVENTUALLY DEPLOY ON ALL TEPUK

Scope

Scope: Alwyn and Dunbar Opex

The core topics that will be covered are

• Maintenance & Production

• Onshore support

Deliverables

For these core topics, deliverables agreed

• Wastes and savings potential estimation on

defined scope, identified priorities

• Priority topics proposal for next phase

• Launched quick wins

• Visual management started in selected areas

to create more momentum

Mobilisation

phase

Mobilisation phase Solution design &

implementation phase Deployment phase

3

Waste identification

VSM/Process mapping

Engage visible actions

Solution

design &

roadmapping

Deep-dives

& ideal states

Implementation,

coaching

& fine-tuning

Set top-down targets

(Group led)

Ambition 0 1 2

Today

Quick wins / Lean tools / Managerial routines

16 weeks

full time

support

8 weeks

part time

support

16 weeks

deep dive



7 KEY BATTLES PRIORITISED AS A RESULT

Maintenance &

Production

Key battles

1. Develop visual scheduling & preparation

2. Refine offshore planning process

3. 5S for tools and parts

4. Improve stock management and part ordering process

5. Review current maintenance frequency

6. Group and level-load maintenance in packages.

7. Redesign and de-bottleneck maintenance change request process

Ta

sk

defi

nit

ion

T

ask

exe

cu

tio

n

i

ii

Onshore battle

Offshore battle

1

2

3

4

5

6

7



CUSTOMIZED AND A CORE LEAN APPROACH FOR BOTH ONSHORE AND OFFSHORE

Identify wastes

and root causes

Prioritise

opportunities Implement 'Just do it'

solution

Solution

design

Implement

solution Monitor

solutions

and

refine if

needed

Identify cost

drivers

What costs

us money?

What costs us more

than it should? Why? What should we do to address the situation?

Repeat the process; keep improving forever

1 2 3

Have we

improved?

4

Ac

tivit

ies

To

ols

& t

ec

hn

iqu

es

Cost driver trees

Impact-feasibility

matrix

5 whys

Value stream

mapping


framework

VA/NVA analysis

Management

routine

Kaizen

workshop Visualization

Roadmapping



VISUAL MANAGEMENT: 3 STEP PROCESS WITH EACH TOOL HAVING A SPECIFIC OBJECTIVE TO CHANGE BEHAVIOUR

Visual board & Briefing

● Guarantee the fulfilment of daily capacity of technicians

● Increase visibility within the team to enlighten issues

● Empower technicians to maximize their occupation

● Push maintenance supervisors anticipate issues (breakdown, break

into the plan)

Field Tour

● Guarantee maintenance supervisors time on field

● Structure the points to check safety, quality, schedule

● Push for a forward looking approach (not justify why we didn't achieve

the plan, but take action to achieve plan)

● Lock maintenance supervisors by team pressure with display on board

Measurement & Continuous improvement

● Follow up team performance – acknowledge success understand

opportunity for improvement

● Identify root causes of non achievement of plan to trigger continuous

progress workshop

Visual scheduling & prep



BATTLE 1: VISUAL SCHEDULING AND PREPERATION

Who

What

When

List with fall

back work

Visual board

leverages

existing KPI

sheet

Resourced and prepared

jobs ready for execution in

case another job cannot

start/continue

DA

Y S

HIF

T

NIG

HT

SH

IFT




A VISUAL BOARD TO INCREASE VISIBILITY AND INFORMATION SHARING

• Create a bridge between

plan and technicians

• Develop sharing of

information among teams to

empower all technicians

• Anticipate reactions toward

problems (breakdown,

change in plan...)

• Attend briefing

• Update board

• Leverage available information

• Suggest any improvement

Objective

Technician

role




FIELD TOUR TO SECURE SUPERVISOR TIME ON FIELD

• Secure the supervisor time

on field

• Support to maintenance

technicians by practical

actions

• Coach maintenance

technicians where required

Objective

• Share information during

supervisor tour

Technician

role




MEASUREMENT TO IDENTIFY NEXT TOPICS TO IMPROVE

• Share team results of the

previous day

• Identify major topics of

improvements

• Uncover root causes which

prevent smooth work

process.

Objective

• Share information

• Participate to workshop on

identified problems

Technician

role




Visual Scheduling – Plan Execution #1 A

ch

ieve

me

nt

of

we

ek

ly p

lan

1 Visual scheduling

implemented

Avg after boards

Avg before boards

Ex

ec

ute

d p

lan

ho

urs

+22% Visual scheduling

implemented

1558

1230

84% 86%

90%

80%

0%

100%

29-D

ec

22-D

ec

15-D

ec

08-D

ec

07-D

ec

30-N

ov

23-N

ov

9-N

ov

2-N

ov

26-O

ct

19-O

ct

12-O

ct

5-O

ct

28-S

ep

21-S

ep

14-S

ep

16-N

ov

7-S

ep

31-A

ug

24-A

ug

17-A

ug

10-A

ug

03-A

ug

83%

27-J

ul

85%

20-J

ul

73%

13-J

ul

85%

06-J

ul

80%

29-J

un

22-J

un

15-J

un

08-J

un

78%

01-J

un

90%

25-M

ai

86%

18-M

ai

83%

11-M

ai

86%

04-M

ai

80%

27-A

pr

86%

20-A

pr

78%

13-A

pr

86%

06-A

pr

87%

30-M

ar

81%

23-M

ar

84%

16-M

ar

75%

09-M

ar

72%

02-M

ar

67%

23-F

eb

79%

16-F

eb

76%

09-F

eb

69%

02-F

eb

72%

26-J

an

76%

19-J

an

80%

12-J

an

68%

05-J

an

70%

86%

Actual (4wk avg)

1566

1312 1191

2 000

3 000

0

06-J

ul

1 107

29-J

un

1 231

22-J

un

15-J

un

08-J

un

1 543

01-J

un

2 349

25-M

ai

1 450

18-M

ai

1 917

11-M

ai

823

04-M

ai

1 359

27-A

pr

1 554

20-A

pr

1 234

13-A

pr

1 442

06-A

pr

1 431

30-M

ar

1 931

23-M

ar

1 203

16-M

ar

1 386

09-M

ar

777

02-M

ar

1 534

23-F

eb

1 309

16-F

eb

1 219

09-F

eb

749

02-F

eb

790

26-J

an

1 344

19-J

an

1 788

12-J

an

1 684

05-J

an

928

2 270

03-A

ug

1 482

27-J

ul

1 207

20-J

ul

1 422

13-J

ul

2 175

29-D

ec

22-D

ec

15-D

ec

08-D

ec

07-D

ec

30-N

ov

23-N

ov

16-N

ov

9-N

ov

2-N

ov

26-O

ct

19-O

ct

12-O

ct

5-O

ct

28-S

ep

21-S

ep

14-S

ep

7-S

ep

31-A

ug

24-A

ug

17-A

ug

1 969

10-A

ug

Executed plan hours

Executed plan hours (4wk avg)

+12%

1. Achievement of weekly plan is the key indicator to measure efficiency increase. If the achievement of weekly plan increases while the executed plan hours remain the same, the overall efficiency is improved. When both indicators increase, i.e. when a better achievement of plan is combined with more executed plan hours the total improvement is even greater.

83%

74%

21 September / W39

79%

2249



OPPORTUNITY TO REDUCE BY 50% INVENTORY OF MATERIALS HELD OFFSHORE

Value is linked to closed work orders

1.0

0.5

0.0

Value of material line items

on hold shelf (£, M)

1.0

53%

47%

Related to open WOs

Related to closed WOs

0 100 200 300 400 500

0.5

0.4

0

0.3

0.2

0.1

Cumulative stock value

Material line items linked to

closed WOs

Only 30% of items

accounts for 90%

of total value

Stock mgmt & parts ordering

2 kinds of savings : materials and

management time

Approx. 50% of holdshelf

value related to closed

WOs, lost for future works

Create stock items for

specific low value parts to

capture important info and

save time



RETURN AND TRANSFORMATION OF PARTS FROM BLACK STOCK TO ONSHORE INVENTORY CONTINUES

In total, ~300 unused items have been returned so far

Stock mgmt & parts ordering

• Steady return flow

to avoid wave

effect for engineers

4267 67

24 24 24 24 24 39

302 302265

275 275 275 275 275 275 275 260

88888

5

600

400

500

300

0

WK 24

535

0 186

7

WK 23

535

0 186

7

WK 22

500

0 186

7

WK 21

500

0 186

7

WK 20

500

186

12

500

12

488

WK 18

500

WK 19

535

3

225

Value (£, k)

WK 27

535

3

225

WK 25 WK 51 WK 49 WK 47 WK 45 WK 43 WK 41 WK 39 WK 37 WK 35

535

3

225

8

WK 33

535

3

225

WK 31

535

3

225

WK 29

535

3

225

Scrap Returned to vendor Converted to 1-series Returned, not yet converted Total potential

• Electrical hold-

shelf (32 items)

• Electrical

switchgear (10

items)

1 • Instrument

graveyard (5S)

(47 items)

2 • Instrument

holdshelf

(74 items)

3

1 2 3

Next steps:

Identify Holdshelf items

outside NAB Stores to

capture residual potential

North Alwyn

Potential will be reassess

in September after 1st

cleaning phase



1. 31Z consists of 2 PWRI pumps. After grouping, 31Z only requires a full outage 1x per year (vs. 3 before). The other 4 interventions shown, include only small 6m PMs. 2. Plant section 14L shows maintenance interventions by different work centers, for each of the individual trades, the plant section is grouped.

GOOD CONTINUATION OF THE PM GROUPING BATTLE ON ALWYN 3 ADDITIONAL PLANT SECTIONS BEING GROUPED; 4 ONGOING

PM grouping

J F M A M J J A S O N D J F M A M J J A S O N D

Plant

section

# Maint.

visits

Implemented

in SAP

Waiting for

Implemen-

tation

+4

18E 2

14A 2

14B 3

14C 4

14F 2

14G 2

13A 2

18F 8

18J 9

18K 15

18L 20

18Q 5

18R 9

31Z1 10

18T 7

18U 4

18V 7

20A 8

20B 6

20C 9

+3 14H 8

14L2 10

40C 5 40B 9 40A 6

40D 5

+4 Grouping

being done by

Offshore Plant

Authorities

North Alwyn



Sort: Sort out everything that is

not needed

1 Set in Order: What is

needed gets an ergonomic, designated

and labeled place

2

Shine: Cleaning the work place from ground

up

3

Standardize: Set up checklists and routines to

maintain defined standards

4 Sustain: Motivate people to make 5S a habit

5

5S IS A STRUCTURED METHODOLOGY TO CREATE AN ORGANIZED AND TIDY WORKPLACE



NEW STANDARDS

Easy visualization to verify inventory

Sockets with different drive are naturally

separated via an automatic standard

Automatic standard: Socket items that are ¾" drive are

in the storage boxes and do not fit on the hangar. This

standard avoids that different drive sockets will mix up

Full set of spanners Tape indicates easily

where items are missing

Quick check of

inventory for

storage boxes is

possible thanks

to inventory

labeling



5S IS THE BASIS OF A LEAN PROJECT BUT MUST REMAIN IMPACT FOCUS

5S step Description Examples on Alwyn

Sort

Set in order

Shine

Standardize

Sustain

• Take out all items of the area

• Sort the items

– Scrap

– Return to stock1

– Keep

• Organize needed items in logical way

– Frequency

– Ergonomics

– Work package

• Ensure the area is cleaned

• Install lighting

• Set periodic inspection and maintenance targets

• Document procedures and guidelines for first 3 steps

• Establish new standard for area

• Install audit system to verify the standard

• Ensure self-discipline of the employees

• Emphasize 5S messages regularly, e.g. during toolbox

meetings

1. This is aligned with Key Battle #4 – Parts ordering and Stock mgmt. Unused 2-series (linked to equipment, i.e. non-consumables) will be sent back for conversion to programmabel stock and integration in the Altens warehouse


5S CHECKLIST FOR AUDIT IN PLACE TO MAINTAIN THE NEW STANDARD

5S AUDIT FORM

AREA Billy's shed – P03 main deck DATE

NAME

SORT

SET

2 Ensure shelf is in place and in good condition. All tools are either hung on tool hangars or available in storage

boxes. NPT pipe die set is placed on the ground below the imperial sockets.

1 Ensure area is open, clean and well-lighted. Broken lighting should be notified and fixed.

Tools have each a designated storage place in reach of the technician.6

7 No tools are missing (indicator tape is in place to indicate where tools are missing).

8Indicator tape is in place and in good condition. Broken or loosening indicator tape should be replaced to

maintain visibility on inventory.

9 Tools (sockets, spanners and flogging spanners) are clearly marked with their size. Size is clearly visible.

10 Verify storck benches are positioned within the red line marked area on the ground below metric size sockets

3 Ensure only the required tools are present in the area (sockets, spanners, flogging spanners, NPT pipe die set,

torque wrench adaptors, extensions and spare hangars). Non required items should be removed.

5 Ensure available tools are in their correct position (e.g. all 80mm spanners arranged together).

4 Verify that tools are arranged in a logical way, i.e. sockets, spanners and flogging spanners together and

ordened by size and standard (metric or imperial).

Y/N

Y/N



SELECTED LEAN BATTLES WITH MEASUREABLE SAVINGS ON NNS SINCE APRIL 2015.

Choose, Focus and Act with a LEAN perspective result in actual savings of

£1.25M in 5 months and improve efficiency of work by >25%

Battles Achievements

Visual Management •Visual Scheduling

•Field Tour

•Root Cause Measurement

• Alwyn: ~26% improvement in productivity of maintenance core crew

• Alwyn: reduction of 6 adhoc crew with direct savings and no deterioration in compliance

• Dunbar: ~39% improvement in productivity of maintenance core crew.

• Dunbar: ~40% reduction of Cat ‘A’ backlog

• Scaffolding: significant improvement in planning, destruct and co-ordination

Parts ordering and stock

management

• New process in place to return direct purchase items into onshore stock mgmt

• 300 items being returned onshore for a total value of ~£250k

• No longer a culture of storing “black stock” on site

PM frequency • Systematic review of PMs being executed in Maintenance Obeya room

• Reduction of 15,000 hours in SAP to date.

• Vendors scopes ongoing review has saved ~£100K per year to date

PM grouping • 170 hours reduced plus non measureable hours in connection with linked disciplines

• 7500 BOE/year to be realised from grouping online/offline maintenance of CGL

compressor. (~£300K)



Back Up Slides



INDIVIDUAL QUALIFICATION HAS ITS CLEAR REQUIREMENT AND ROLL OUT ONGOING ACROSS MULTIPLE DEPARTMENTS

Basic knowledge about LEAN and

WASTE

Knowledge about LEAN tools

methodology

Able to use Lean methodology to

run projects

Autonomous for any Lean initiatives and able to coach green belt

1 hour presentation

• Able to know what lean is.

• Understands target and main objectives

3-5 days training

• Certification based on a project delivery

with results assessed by Black Belt

• Able to manage small project

5 days training plus 12-18 months experience

• Certification based on supervision of green

belt project (at least 2)

• Able to manage and coach lean battle

1 day training

• Certification based on competencies

management

• Waste/main tools/principles

Requirements

110

trained

1 ongoing in

UK

0 in UK

42 trained

To date

Autonomous to build and sustain a Lean program

Based on experience

• Able to adapt strategy to lean initiatives

• Define the role and competencies

1 in HQ





SYSTEMATIC APPROACH AND TOOLS WERE APPLIED TO TACKLE BATTLES

Waste

identification Ideal state Pilot Rollout

Continuous

improvement

5 whys

Value stream

mapping


framework

VA/NVA analysis

Management routine

Kaizen workshop Visual monitoring

Workshop Obeya room

Coaching

To

ols

K

ey s

tep

Applied in Phase I Applied in Phase II

Identify and

quantify waste

using the Waste

Identification

Framework

Define an ideal

state without any

waste

Implement a first

pilot to validate

hypothesis and

confirm savings

Deploy solutions

among the

assets and the

organization

Measure results

and challenge

level of waste



LESSONS LEARNED BASED ON IMPLEMENTATION OF VISUAL MGMT ON ALWYN, DUNBAR AND ELGIN – EIGHT KEY SUCCESS FACTORS

Apply LEAN methodology and structure and involve LEAN team before introducing Visual Management

Organise onshore workshop with key stakeholders, asset management and next upcoming crew to design the tools

via a bottom-up approach

Invite supervisor from other site to present use of the tools and share experiences

Involve contractor management to highlight the support from their own organization

Organise offshore workshop with key stakeholders using bottom-up approach: it is important to have people (2-3)

that were present in onshore workshop as supporters

Ensure strong management support and visibility during briefings

Facilitate site-wide communication of LEAN implementation, and celebrate the success

Identify and implement Just-Do-It initiatives to create and enforce the momentum for change

Visual management

1

2

3

4

5

6

Eight key success factors to ensure teams are ready, willing

and able to adapt a "new way of working"

7

8



1 DAY OFFSHORE OBSERVATIONS OF A MAINTENANCE TECHNICIAN INDICATED ~10% OF DIRECT VALUE ADDED TIME

Workshop and

going at site

~20

New WO

assignment

PTW, job done

in system Walk back to office Valve assembly

~20 ~8 ~12 ~4

Familiarization

(parts/plans next WO)

~86

PTW Back to work, parts

not here, new WO Safety meeting

~30 ~11 ~9

Back to workshop

AM WO, pump

checking

~20 ~39 Launch isolation

for night shift...1

~71

Paperwork

Morning meeting,

WO assigned

Going to site

to check

~8 ~4

Check work site

~2

Walk to site, wait

Go to PTW room

Go to PTW room

~6 ~15 ~19

Print permit

Go to site

~10

Witness isolation Permit goes live Site check

Flush2

(imp. procedure?)

Find a funnel

(build one)

Let old oil out1

Find Oil (incl.

transportation)

~21 ~35 ~25 ~15

Remove bolt

Go to mtce. room,

new WO assigned

Back to workshop

Go PTW room,

DFT not possible

Fill w/ new Oil

the pump, EOJ3

~20 ~18 ~5 ~10

Paperwork

Go to PTW room

Prepare permit

in workshop

Check WO site

go to workshop

~17 ~22 ~10

Permit goes live

6h30

18h30

6h44

7h34

9h40

10h33

Break

35 min

11h22 Lunch: 1h08

Break 30 min

13h34

16h20

47%

43%

10%

Direct Value Added

Waste (NVA)

Preparation & Support



DEVELOPING NORMS TO ASSESS TEAMS MATURITY AND COMPETENCIES OF EACH INDIVIDUAL

Embed Lean Culture in all departments

Develop a common language within the organization

Build Lean competency development journey step by step for each individual

Developing team certification to validate Lean evolution

Create healthy competition between departments and sites

Motivate and reward success

Define target according to TEPUK ambition

TOTAL E&P UK LEAN INITIATIVEoilandgasuk.co.uk/wp-content/uploads/2015/09/Brian-Rodger-TOTAL.… · oktober 15 Lean 6Sigma Yellow Belt Training Feb 2015 . 5 COMEXP LEAN May 2015.pptx

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