Here in Indonesia, beside in new field there are many oil and gas companies are operating in a mature field, problems raised when the company faced to manage how to achieve high recovery rates,how to use personnel effectively, how improve production and create an efficient cost structure. That would mean improving business processes, formalizing its corporate knowledge and supporting integrated long-term asset planning and short-term operational planning. I want to continue from my W7 blog discuss here about how could the company introduce workflow improve productivity as well as reduce maintenance cost to maximize production without disruptions.
Development The Feasible Alternatives
As previously mentioned in my blog W7, the approach from management to improve business process can also adapted from management view of improving maintenance performance that is:
- Business and Management : Skills used to translate an organization’s business goals into appropriate maintenance and reliability goals that support and contribute to the organization’s business results
- Manufacturing Process Reliability : Maintenance and reliability activities to the manufacturing process of the organization to ensure that maintenance and reliability activities improve the manufacturing process.
- Equipment Reliability : Two kinds of activities that apply to the equipment and processes for which the maintenance and reliability professional is accountable. First are those activities used to assess the current capabilities of the equipment and processes interms of their reliability, availability, maintainability, and criticality. Second are the activities used to select and apply the most appropriate maintenance practices, so that the equipment and processes continue to deliver their intended capabilities in the safest and most cost-effective manner.
- Organization & Leadership : Processes for assuring that the maintenance and reliability staff is the most qualified and best assigned to achieve the maintenance and reliability organization goals
Work Management : Skills used to get the maintenance and reliability work done. It includes planning and scheduling activities, quality assurance of maintenance activities, stores and inventory management.
Development Outcomes of Alternative
And from business and management perspective, plans of management action / instruction can be implemented into 3 categories :
- Plan activities and target resources more effectively with a big-picture view that integrates monitoring, control and optimization of physical production processes.
- Monitor events (triggers) and their daily follow-up within established procedures.
- Analyze planned maintenance data as a whole, not just specific issues or functions.
Selection of the alternative
The action plan from management as the alternative to improve business is not a mere as simple as described, because there are many challenges that should be faced as the basis of rational thinking process as follows:
- Balance the actions: Too much maintenance means higher costs, while too little means problems that could have been prevented.
- Regulatory requirements: Maintenance on some equipment is regulated, and companies must comply with regulations or risk loss of license.
- Collaboration / Business Interaction: The ability to share information among groups to minimize erroneous work orders, duplication of effort and/or delays in getting necessary work to be done.
- Imprecise maintenance schedules: Insufficient recommended maintenance schedules, as environmental factors and the equipment’s age can affect performance and maintenance needs.
- Difficulty for accessing information: Lack of standardization among incompatible systems in multiple locations makes it hard to get the information needed to optimize maintenance on all equipment.
- Undocumented processes: Reliance on human knowledge for maintenance needs is unwise, as the workforce is aging and will take that knowledge with them when they retire.
Analysis/ Comparison of the Alternatives
By using Tree diagram for the alternatives now we can attribute to review the possibility of alternatives can be quantified as they are implemented:
After thinking process as shown in figure.1 to figure.6 completed, then quantification of all management action plans can be shown as in the following table:
Selection of the Best/ Preferred Alternative Compared against the Criteria
The result of improving business process and cost reduction should have cover the following resolved:
- Increasing percentage of return on investment in the solution’s first year of operation.
- Critical maintenance issues are resolved quickly and efficiently, meaning a substantial reduction in irrelevant maintenance notifications, required man hours and the number of days that production performance falls under the lower limit.
- Fewer unscheduled production disruptions and increased production regularity.
Performance Monitoring and Post Evaluation of Result/ Follow up Assessment
The improvement process for reducing cost above is an interaction process. All parameters usually dependent to another process as a part of integrated system. The important factor should be considered is how to determine what kind of action plan at certain level of hierarchial part of the company to ensure the cost effectiveness of alternatives itself.
- Sullivan, William G., Wick, Elin M., Koelling, C. Patric. (2012), Engineering Economy. Chapter 5 Pp. 178 – 211, Fifteenth edition, Prentice hall.
- Brassard, Michael., Ritter, Diane. (2010), The Memory Jogger 2nd Edition (pp.112-117). New Hampshire, United States: GOAL/QPC.
- Kumar, U. and Ellingsen, H. P. (2000). Development and implementation of maintenance performance indicators for the Norwegian oil and gas industry. Proceedings of the 14th International Maintenance Congress (Euro maintenance,2000), 7-10 March, Gothenburg, Sweden, pp. 221-228.
- Society for Maintenance & Reliability Professionals (2012). Body of Knowledge. [ONLINE] Available at: http://www.smrp.org/i4a/pages/index.cfm?pageid=3323. [Last Accessed 9 October 2013].