Field Operational Excellence

Challenge: The North East Division of one of the largest US Midstream operators was under significant pressure due to increased Midstream capacity requirements. This was fueled by regional gas production growing to levels that surpassed historic local processing/transport capacity. Additionally, this unbalance was strongly attracting new midstream competitors to the market who were offering utilizing faster and less expensive solutions.

OUR ANALYSIS FOUND

The cycle time order to market was extremely long due to the Custom-design approach (~ 10 to 14 Months)

Likewise the high level of Customer driven tailoring also had negative ramifications into costs and predictability

The commercial business approach resulted in customers having extended lead times to commit to projects. In some instances this led to significant amounts of non-recyclable long lead items being acquired for projects, for which orders were later on withdrawn

The non-standardized design and construction approach also resulted in much higher planning and mitigation efforts to be able to operate under Industry Safety Standards

Maintenance and reliability efforts and costs were also poorly controlled due to the aforementioned Customer driven “high-specificity”

Implementation

Implemented a Modularized design which accelerated cycle time for construction by 3 months and reduced the Cost of Gathering/Compression units by 15%

Production & Operations

Design and Implementation of a simpler and more nimble organization with a robust decision making framework, more in line with the change to a standardized operation philosophy

Org Effectiveness

Significantly reduced the inherent construction risks on site by installing the “Lego” approach to construction and implementing daily safety meetings to strengthen the HSE “hearts and mind”

Safety

Re-designed the Operations Management System to better support the new standardized way of doing business, and trained all leadership teams throughout the NE division

Leadership

Transformed the Quality Approach from a construction lagging mode to a Proactive Quality tracking at the Supplier workshops and warehouses

Quality

Designed new reliability programs leveraging predictive maintenance and selective redundancy principles

Maintenance/Reliability

Implemented production planning, inventory controls, supported by a more robust process that preceded any new material orders by internal checks to rationalize the use of previous projects surplus materials

Supply Chain

CLIENT SUCCESS

Results of our engagement include:

Accelerated Order-to-Production cycle time by 30% which enabled a 15% Construction Costs Reduction and early revenue benefits 3 months ahead of servicing some 900 mmcf/d of local production.

“This Project has resulted in a fast paced merger value realization by making possible a truly integrated company with a single, standardized, faster, more reliable and less expensive approach to Design, Construct, Operate and Market Gathering and Compression Projects ”

SVP Engineering and Construction

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