Archive for Oil & Gas Industry’ Category

7+1 WASTES Understanding the Cost of Waiting
Apr

25

2016

7+1 WASTES Understanding the Cost of Waiting

Waiting – People, Processes or Product People and machines can wait, the less your customer’s product or service waits the better and more efficient your company will be. Waste of Waiting Waiting is one of the 7 wastes (or 7+1) common to manufacturing, service industry or the office and often the one that people most identify with. Everyone is familiar with the mantra “time is…

Readm More

The Leaders Role in Implementing Lean
Apr

19

2016

The Leaders Role in Implementing Lean

1 – Define Value This may appear unnecessary as you would think most companies clearly know what the value is they deliver to their customers. Oddly it is often not defined. Value is essentially the service or product your customers need or pay for and nothing more. Actions the company do that do not contribute to product delivery are waste and can be eliminated or…

Readm More

CLOSE-SHORING Getting a Little Closer
Apr

7

2016

CLOSE-SHORING Getting a Little Closer

Reshoring II – Close-shoring Close-shoring is the practice of demanding that a supplier is based close to the customer’s location to facilitate the sharing of best practices and innovation between the two. When done strategically it can significantly lower supply chain risks and overall costs. What is Close-shoring? Close-shoring is the extreme opposite of off shoring. Close-shoring is when you require your supplier who otherwise…

Readm More

EFFECTIVE COST CUTTING Time Equals Money
Mar

15

2016

EFFECTIVE COST CUTTING Time Equals Money

If you want to cut costs cut cycle times Cost cutting is a requirement for a lot of companies not just those hit by the downturn in oil and gas. Automotive part suppliers often have an annual 3% price reduction built into the contract. The challenge for companies is how to cut costs without negatively affecting performance or shifting the cost from one part of…

Readm More

How to Handle Divergent Customer needs who aren’t even Paying the Bills?
Feb

24

2016

How to Handle Divergent Customer needs who aren’t even Paying the Bills?

The first step in applying Lean to any organization is being able to define the Value the organization delivers. Normally in Lean we define value add work as “what the customer wants to pay for”. There are however many situations when the customer is not the one paying, so we need another way to define value add. Example 1 – Traditional Lean Definition The simplest…

Readm More

Overproduction, one of the 8 wastes of Lean. Image: Hakan Forss
Apr

14

2015

Lean in Oil and Gas — What you Need to Know Now

Lean Manufacturing, Lean Processes, Lean X. It seems everyone is talking about Lean process these days. Google “Lean” and you’ll be greeted with millions of search results — 213,000,000 results to be exact. Google “Lean in oil and gas” and you’ll get fewer results (only 25,700,000), but still it’s not hard to see that Lean is gently infiltrating the oil and gas sector. “Lean consulting”…

Readm More

Red for Stop and Green for Go
Mar

18

2015

Red for Stop and Green for Go

Visual management – traffic lights Everyone is familiar with how traffic lights work, few would argue that green means go, amber be ready to stop and red means stop. Traffic lights are used internationally from Calgary to Chattanooga. The familiarity is such that my 3 year old will shout “GO” at a green light and “STOP” at a red light. Situation This is a lesson…

Readm More

Art of Mastery and Lean
Mar

11

2015

Art of Mastery and Lean

Last week there was an insightful article in Wired Magazine on “Why We Should Design Some Things to Be Difficult to Use” well worth reading. The article dealt with the challenge and joy in mastering how to drive an old Land Rover, a difficult task. The article at the same time gave insight into why Lean is often resisted precisely because it often disassembles the…

Readm More

Creating Momentum for Lean Transformation Better is a good Start
Mar

3

2015

Creating Momentum for Lean Transformation Better is a good Start

Take your Opportunity Lean is often about momentum, building momentum and keeping it going. How does a company start to join the dots and keep going? Often the challenge is not about getting the perfect first step but taking any step that gets you going in the right direction. After all if you have failed to make any progress in the last few quarters speed…

Readm More

Going to the Gemba to understand you have to see it
Feb

24

2015

Going to the Gemba to understand you have to see it

Quickest way to map a process is to walk it : The client was part of a large multinational company and struggling to deliver the required engineering services to other parts of the parent company. At the start of our work delivery of over 40% of engineering projects was late to schedule, threatening the overall project schedule. This situation meant the management team was coming…

Readm More


Page 1 of 3123