Norway is an offshore nation and a world leader when it comes to expertise and technology. The industry is growing, and the competition is high. This demands high standards of quality, competence and efficiency. The war for talent is hard. Prices and market demand which are volatile and partially unpredictable, combined with public regulations and environmental legislations, makes this industry very complicated.
Demands for cost efficiency are increasing and there’s a constant need for investing in the newest technology. Our experience, due to several projects, is that Lean contributes to increasing the quality, increasing volumes and creating stability. At the same time the methodology attracts the best people. We have assisted many organizations operating in the offshore industry. Ask us for references.
Case Study 1 – Offshore
Some of the findings suggested that the lead-time was too long and processes of maintenance of heavy equipment were too costly. Weak daily management. Unstructured and little standardization in the work practices. It was a complex organization with unclear measures regarding critical deliveries. Not enough competencies and a lot of job rotation of workers on critical parts. Lack of updated standards and drawings regarding the execution of different tasks.
We conducted an analysis in order to reveal the biggest sources of loss and we suggested measures and priority. We established a 24 hours goal measurement function on work department level in the organization. We implemented KPI development down to a daily level in order to visualize the delivery precision, lead-time, error rate and improvements. We established improvement groups on the most vital and critical areas of improvement in the “flow process”. In particular, critical main KPI’s on delivery precision and lead-time on the heaviest tools. We agreed on critical standardization projects – not at least how much of the quantity of orders were to be considered standard and which should be considered “tailor”. We implemented 5S and a standardization of critical processes, routines and procedures in the entire organization. This work was anchored in users needs and the involvement of those who work close to the processes.
The lead-time for critical tools was halved, and revenues were doubled for the entire organization. Improved billing on additional work.
The organization is today considered high profile and has a strong collaboration with a main player within oil and gas. Attractiveness related to customers and coworkers is significantly improved.
Case Study 2 – Engineering
The main problem dealt with Engineering and completion of projects. There was a lack of standardized experience from former projects. This led to a wide usage of overtime and rushing work the very last day of the project. A lack of formalized key knowledge and profit pressure. There was a lot of looking around for parts, waiting, and delays on parts. Constant revisions of drawings and redoing of work. Design frozen was hardly ever done properly. This lead the situation where the client could ask for changes throughout the project and the company wasn’t sure if they were to bill the extra work or not.
Implementation of 5 S in the workshop areas. Implementation of daily goal measurement and daily status quo 24 hours meetings. Implementation of critical improvement measures, among other things standardization within assembly, Engineering and acquisitions. Restructuration of the complete meeting structure. In addition a line of strategic improvements and adjustments were implemented.
70% time saved within assembly. Doubled productivity within Engineering. Significantly better delivery precision. A strong increase of the base line. Significantly improved order and systemization, productivity and individual ownership. The company has during the later years become a role model for an important number of offshore companies which have been inspired to implement their own Lean development, also greatly improved their employer attractiveness.
Among others – ask for references within your area of business.