W8_ASY_Workflow for Productivity Improvement


Problem Statement

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:

  1. 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
  2. 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.
  3. 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.
  4. 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
  5. 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 :

  1. Plan activities and target resources more effectively with a big-picture view that integrates monitoring, control and optimization of physical production processes.
  2. Monitor events (triggers) and their daily follow-up within established procedures.
  3. 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:

  1. Balance the actions: Too much maintenance means higher costs, while too little means problems that could have been prevented.
  2. Regulatory requirements: Maintenance on some equipment is regulated, and companies must comply with regulations or risk loss of license.
  3. 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.
  4. Imprecise maintenance schedules: Insufficient recommended maintenance schedules, as environmental factors and the equipment’s age can affect performance and maintenance needs.
  5. 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.
  6. 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:


Figure.1


Figure.2


Figure.3


Figure.4


Figure.5


Figure.6

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:


Tabel.1

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:

  1. Increasing percentage of return on investment in the solution’s first year of operation.
  2. 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.
  3. 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.

References

  1. Sullivan, William G., Wick, Elin M., Koelling, C. Patric. (2012), Engineering Economy. Chapter 5 Pp. 178 – 211, Fifteenth edition, Prentice hall.
  2. Brassard, Michael., Ritter, Diane. (2010), The Memory Jogger 2nd Edition (pp.112-117). New Hampshire, United States: GOAL/QPC.
  3. 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.
  4. 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].
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1 Comment

Filed under Asyhad, Week 08

One response to “W8_ASY_Workflow for Productivity Improvement

  1. Sorry Pak Asyhad, I know you put a lot of work into this but using Mind Maps is only a BRAINSTORMING tool…… OK so you’ve defined your problem (Step 1) identified all these different ALTERNATIVE (Step 2) but NO PLACE in your blog am I seeing any QUANTITATIVE or QUALITATIVE analysis of these options nor did I see any CRITERIA for the selection or prioritization of one over the other?

    My best and most sincere advice would be to take ONE of the options and using the tools and techniques found in Chapter 6 or Chapters 9 or 10 or Chapters 13 or 14 conduct SOME kind of qualitative or quantitative ANALYSIS. You’ve done a great job on the front end of it- Step 1, defining the problem and Step 2, identifying the alternatives, but at least in this blog I just am not seeing what I should be for steps 3 onwards…

    If you have any questions about what I am looking for don’t hesitate to email me, but right now, you haven’t really done anything other than identify the options…… There is nothing to support making any decision…?

    Suggest you go back and review Chapter 1, pages 7-15 again. And when you repost this, I will expect to see some QUALITATIVE or QUANTITATIVE analysis of each option, I will expect to see you identify the minimum acceptable criteria; I will expect to see you identifying which options MEET or EXCEED that criteia and I will expect to see you making a RECOMMENDATION to your management on a course of ACTION which is supported by your analysis.

    Make sense?

    BR,
    Dr. PDG, Jakarta

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