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Our journey to Continuous Improvement
Our journey to Continuous Improvement Stavanger | September 26, 2016 Bengt Persson SVP, Head of Quality and Performance Solstrandseminaret om olje og...
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Our journey to Continuous Improvement Stavanger | September 26, 2016 Bengt Persson SVP, Head of Quality and Performance
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Aker Solutions is a global provider of products, systems and services to the oil and gas industry
13,000 EMPLOYEES
20
COUNTRIES
Solstrandseminaret om olje og økonomi
50
LOCATIONS
175
YEARS OF EXPERIENCE
© 2016 Aker Solutions
Lean initiatives have been around in Aker Solutions for many years
Geographically spread Division specific Focusing on factory sites
5S
VSM
Solstrandseminaret om olje og økonomi
White board meetings
A3s
© 2016 Aker Solutions
However, given the market situation and project performance, we saw a need for a more structured approach to improvements
US$ / bbl
US$ / bbl
Brent crude oil prices
Findings from survey on EPC projects
140 120 100 80 60 40 20 1985
64% Nylig kollaps
1990
1995
2000
2005
2010
Solstrandseminaret om olje og økonomi
Significant cost overrun
73% Significant schedule days overrun
2015
© 2016 Aker Solutions
Global Improvement Program – #thejourney
Targeting minimum 30 percent improvement in cost-efficiency across company and building culture of continuous improvement
Simplifying work methods, organizational set-up, geographic footprint and products and services
Solstrandseminaret om olje og økonomi
Leaner and more efficient processes that reduce overall costs of projects and products while boosting quality
© 2016 Aker Solutions
2015 Annual report
The results we see today
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
#thejourney – Lean SemiTM Production Platform Low-Cost Floater Unlocking Marginal Fields
30 %
reduced weight compared to a conventional topside design
§ Designed to make marginal field
developments with reserves up to 300 MMBOE viable in a low oil price environment § Based on proven building blocks with
conventional standard equipment § Down to 29 months delivery time § 6,000 metric tons topside
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
#thejourney – Engineering
30 % reduction in Engineering & Procurement service cost
50 % new target for cost reduction by the end of 2017
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
#thejourney – Manufacturing Tranby, Norway
50- 80 % reduction of lead time for assembly and testing of x-mas trees
20 %
reduction in direct hours
180%
increased machining run time
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
#thejourney – Fabrication Egersund, Norway
28 %
productivity improvement on direct fabrication on subsea projects last 12 months
38 %
productivity improvement on scaffolding last 12 months
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
#thejourney – Maintenance, Modifications and Operations (MMO) Selected project, Norway
64 %
reduction of man-hours and
57 %
reduction of costs
in project execution compared to study
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
#thejourney – Supply Chain Excellence
70% reduction in number of active suppliers by Q316
70% Reduction in Quality Surveillance related travels as hubs are organizing inspections to provide a leaner, simplified and more efficient service
193MNOK renegotiation of open Purchase Orders
.
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Our journey so far…
2015 Build up
2014 4Q Piloting
2016 - 2017 Global rollout
#thejourney
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
What is our approach?
Lean principles embedded in Quality and Operating strategy
Lean principles
Visible, coaching and driving change Leadership
Leadership
Solstrandseminaret om olje og økonomi
Lean training and coaching in all levels of the organization
Training
Improvements done locally and implemented globally
Operating system
© 2016 Aker Solutions
Lean principles in Aker Solutions
1
Understand customer value and create value from the customer perspective
2
Prioritize value chain flow efficiency over resource efficiency
3
Visualize work flow, progress and performance
4
Work according to defined standards and continuously improve
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Improvements executed and followed-up in a structured way Initiatives identified & potential validated
Target & Principles Established
Activities initiated & executed
Bottom line impact updated
KPIs established to track progress
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
First of all, before you jump into execution…..
1
Understand the problem “What are we trying to solve?”
3
2
Pick the right approach Keep it simple Build on what is already there
Verify with key stakeholders
Solstrandseminaret om olje og økonomi
Reconfirm problem statement Achieve a common view
© 2016 Aker Solutions
…then start testing and showcase the results ■ Run short, carefully selected pilots
■ Work with your change agents
To be updated
Results Work card preparation at SNADF in MMO
Engineering XMT Tranby in Kaombo
-54%
+172%
+76%
+78% Before After Plan
Team 1 Team 2 On time delivery (OTD) of documents
■ Deliver significant impact and
create awareness around the results
Lead time
Approval of supplier documentation in Kaombo WP03
-24%
+120%
-83%
Handled within a week
Confidential © 2015 Aker Solutions
Slide 18
Lead time
Productivity
Minor Modification project in MMO
-64%
Lead time
November 5, 2015
-57%
Cost
Preferred partner
Creating a demand and “pull” in the organization Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Along the way, we learned a lot about our operations …the root causes to our problems ■ Focusing on resource efficiency
and not flow
■ Lack of common view and
synchronization
■ Not aware of internal customers and
customers’ requirements
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
We have demonstrated our ability for a step change in performance
But how to build a Continuous Improvement culture and ensure sustainability?
Step change
Continuous Improvement
100%
50
NOK bn 0
0% 2015
2016
2017
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
■Improvements
need to be a part of daily work and everyone’s responsibility
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Create ambition and purpose to lead the way ■ Align and commit management to
ambition ■ Communicate purpose and be
transparent ■ Demonstrate a genuine commitment to
employees’ improvements efforts ■ Empower employees, offer training,
coaching and mentoring ■ “Just do it” micro improvements ■ Recognize improvements and
achievements
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Collaboration is key Collaboration with customer and suppliers boost business’ competitiveness
We see potential reduction* in collaboration:
10% in quality cost 40% in supplier documentation 40% in technical requirements to suppliers
50% in lead time reduction
* Based on selected project
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
Questions and Answers
Solstrandseminaret om olje og økonomi
© 2016 Aker Solutions
© 2016 Aker Solutions
Solstrandseminaret om olje og økonomi
|
© 2016 Aker Solutions
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