The Opportunity

Our client experienced drilling rig delays, resulting in running 18.4 days behind drilling schedule.  The delayed delivery of wells results in lost production, an opportunity of ~ 3.12mbeod / ~$219k  in lost revenue each week.

Nonproductive time (NPT) was 18% versus a target of <2%, 50% of the engineering & operations teams time was consumed with hidden waste which if removed would allow them to perform scope that will help with rig reliability & therefore NPT. 

Our client wanted to eliminate this waste for both the asset & teams, they identified the scoping, prioritisation, planning, scheduling & execution of all activities could potentially impact NPT.

Approach Taken

To address this a cross-functional team, from the drill rig, were brought together to undertake a Value Stream Mapping (VSM) session. The issues identified during the VSM were Root Cause Analysed (RCA) & opportunities to improve or eliminate identified. 

These opportunities were then worked by the same team during a 3 day Kaizen event, opportunities realised were: simplification of rig engineering processes & how they work, identify & prioritise simultaneous operations & drilling outage scopes, rationalise Planned Maintenance Routines, clarify rig down communication protocol, rig Engineering funding process reviewed & simplified & support timetable established, visual management system implemented for proactive prioritisation & delivery. 

Benefits Realised

Improvement ideas implemented during the Kaizen Event gave 4968 hours back to business through more efficient use of rig engineering time. This time back enabled engineering to get a clear understanding of vulnerabilities & defects & provided the capacity to address these. 

Drilling schedule now ahead of plan with NPT <=2%, cost avoidance of $496k through liquidation of project carry over & punch list scopes.

Reduction of non-productive time & bringing the drill schedule forward brought a $22.8m production revenue gain. 

Increased morale of drilling & engineering teams through them being empowered to define & implement the improvements & also though the removal of frustration & delays.

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PBI Success Story – Rig Reliability