FMCs “lean-journey” towards delivering more efficient projects for our customers Ingmar Westervik
FMCs “lean-journey” towards delivering more efficient projects for our customers Customer Support ER Ingmar Westervik 4/23/2014 4/23/2014 XT Refurbishment Success 2014 1 FMC Technologies at a glance An oilfield equipment and services company • $6.7 billion revenue in 2013 • 19,400 employees worldwide • 27 production facilities in 16 countries • FORTUNE® Magazine 2012 World’s Most Admired Oil and Gas Equipment, Services Company 4/23/2014 XT Refurbishment Success 2014 2 Customer Support Eastern Region Scotland Norway Russia Italy Libya Mauritania Nigeria Ivory Coast Congo Angola Note: Subsea Service Bases Added as Market Needs Arise Subsea Service Center hub Remote Support 4/23/2014 XT Refurbishment Success 2014 South Africa • Supporting approximate 400 installed XT’s FMC Service Base Customer Provided facilities 33 New Facilities to increase MMRS capacity • Ågotnes – – – – Workshop (OH/Resert.); 3277 m2 Machining centre; 1350 m2 Warehouse; 1450 m2 Office Building; 10607 m2; 363 Offices – Storage/Workshop (MMRS); 7000 m2 4/23/2014 XT Refurbishment Success 2014 4 – Total: 23684 m2 – Total investment: 600 mNOK – Completed in end of 2014 and beginning 2015 SQDC - KEY PRIORITIES TO MAKE CUSTOMER SUCCESS • SAFETY - Safety will always be 1. priority » CS ER had 0 LTI and 0 HRI in 2013, based on all onshore and offshore activities performed in ER • QUALITY - Quality is important for our Customers » CS ER had 98,2% uptime in 2013, based on 57500 hours on rig/vessels where FMC is directly exposed to downtime • DELIVERY - OTD gives predictability for our Customers » CS ER was good in mob of of equipment for operations » Needed to improve on performance of complex MMR activities • COST - Cost is the end product of the above performance + Suppliers Cost 4/23/2014 XT Refurbishment Success 2014 5 Suppliers – An important contribution to reduce cost • • • • Frame agreement with key suppliers Long term relationship Apply to FMC and Operator’s requirements Approx. 50% of this volume performed within Hordaland 4/23/2014 XT Refurbishment Success 2014 6 ”Lean” to improve on performance of complex MMR activities DISASSEMBLY/ INSPECTION BID PURCHASE SERVICES PLAN PURCHASE PARTS 4/23/2014 XT Refurbishment Success 2014 7 ASSEMBLY/ TEST DOC & CLOSE Methodology • Thorough analyses – fact basis, common understanding – before jumping to solutions • Value stream focus – LEAN in all elements! • Test/experimenting solutions before rewriting all processes • Key factors 4/23/2014 Ensure a common understanding of the situation and the problems we need to solve Mobilise support in the development of solutions Agree on how to move forward XT Refurbishment Success 2014 8 STRUCTURED APPROACH • To understand what the problems really were and secure efficient improvement, we had a structured approach to analyzing the issues and designing the solutions 4/23/2014 XT Refurbishment Success 2014 9 Creating pull and close daily coordination is critical to ensure success in the flow Purchasing department Pull Key principles for efficient flow: Pull (parts and services) • Customer orientation everywhere Engineering Pull (documentation) QA • Simple and transparent flow • Pull at every step • Level production other 4/23/2014 Workshop XT Assembly Witeboard or screens creating transparency of status of the project at a glance XT Refurbishment Success 2014 Coordination/ communications/ issue resolution 10 • Standards and zero defects Example from the purchasing process – simplifying the upfront documentation process Approval Process Products Supplier Phase Send SMDR/ ITP Send procedures Yes SD In SAP? Put in SAP SMDR team No Produce In SAP? Yes Transmittal and DR4-form to supplier Route in to mail ITP, SMDR ok, and need for procedures? Route in to mail No SMDRCoordination SMDR meeting preparation SMDR meeting Put in SAP Route in to mail SMDRCoordination SMDR meeting preparation SMDR meeting Engineering SMDR team Verification Review Engineering Kongsberg Yes Reuse procedure in SAP? No QA Support Kongsberg ITP/NDT in SAP 4/23/2014 XT Refurbishment Success 2014 Yes No Product Engineer Support Verification Review 11 Example from the torque process The torque process steps - before WS MA The torque process steps - after Order slot time at torque Mount XT with extra tools Order slot time at torque Unscrew torus connector Order slot time at torque Disassemble THOM Transport Transport Transport Transport Transport Transport Building 2 Break torus Unscrew torus connector Break and disassemble THOM Break torus connector connector Mount XT with extra tools Order slot time at torque Disassembl e THOM Transport Transport Break and disassemble THOM Results in number of days 15 OH82 OH20 4/23/2014 2 5 1 3 XT Refurbishment Success 2014 12 20 -85% Key lessons learned • Holistic approach is key: Look at the full process, seeking the root causes • Broad involvement is critical to succeed • Applying a overall process perspective is difficult when the organization is used to operating within discipline-oriented departments • Unique opportunity to increase employee involvement and satisfaction • It takes time to make the changes sustainable • Challenging the way “we’ve always done things” reveals large potentials 4/23/2014 XT Refurbishment Success 2014 13
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