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by: Nayef S. Al-Utaibi Abqaiq Plants

Abqaiq Plants Experience in Implementing Lean Six Sigma. by: Nayef S. Al-Utaibi Abqaiq Plants. Introduction. Abqaiq Plants Initiated the in-house Lean Six Sigma Projects in 2005 Lean Six Sigma Training was Provided by OCD. Background.

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by: Nayef S. Al-Utaibi Abqaiq Plants

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  1. Abqaiq Plants Experience in ImplementingLean Six Sigma by: Nayef S. Al-Utaibi Abqaiq Plants

  2. Introduction • Abqaiq Plants Initiated the in-house Lean Six Sigma Projects in 2005 • Lean Six Sigma Training was Provided by OCD

  3. Background Lean Six Sigma isa data-driven business process optimization methodology which aims to reduce variation, eliminate non-value added activities, and significantly improve process quality. • 1st Introduced by Motorola in 1980’s

  4. Background Total Quality Management Process Reengineering Lean Process Six Sigma

  5. Financial Perspective Customer Perspective Internal process Perspective Abqaiq Plants Strategy Map Transform Performance Optimize Portfolio BIC Focus Areas Reduce Cost & Enhance Revenue Perform Only Value-Added Core Services Support Local Economy Achieve Optimum Quality & Reliability Risk & Reliability Management Lean Six Sigma Methodology Minimize Minor Maint. WO Labor Cost Utilize Risk Management Enhance Efficiency of Core Processes Improve T&I Planning Effectiveness Support Saudized Contractors Achieve Highest Standards of Safety & Env. Deploy Technology & Encourage Innovation Prepare Workforce for the Future Enhance Workforce Competency & Create Learning Environment Enhance Empowerment & Accountability Deploy Knowledge Management Envision Future Jobs Requirement Learning Perspective

  6. DEFINE ANALYZE CONTROL IMPROVE MEASURE Minimize Minor Maint. WO Labor Cost Improve T&I Planning Effectiveness

  7. Project Definition Minimize MM WO Labor Cost Objective • Reduce Minor Maint. Work Order cost by 30% Defect Definition • Variation of MMWO Cost • Actual MMWO cost exceeds planned cost Benefits • Annual Saving of $263M • Reduce the overall Department backlog • Optimize the Department resources deployment

  8. Project Definition Minimize MM WO Labor Cost Process Sponsor • Manager, APMD Project Champion • Superintendent, MSD Master Black Belt • KURT ROBERTSON Black Belt • N.S. AL-UTAIBI Team Members • G.M. AL-Ghamdi • Y. Al-Rashid • A Al-Mousawi • Y. Al-Sarouj

  9. Lower Specification Limit Upper Specification Limit Data Measurement Histogram Plot 0$ 500$ No. of Minor Maint. WOs

  10. Data Analysis Data Distribution Plot Labor Cost 2004 2002 2003

  11. MMWO Linear Relation Unit 1 Unit 2 Unit 3 Unit 4 Data Analysis Scattered Plot Variation is a direct function of planning Actual Minor Maintenance Cost Planned Minor Maint. Cost

  12. Wrong planning Overcharging Over-reacting Wrong Material Craft unavailability Duplication Time sheet Scheduling Eq. unavailability Bad whether Data Analysis Fishbone Diagram Measurement Material Personnel What causes the variation in labor cost? Environment Method Machine

  13. Data Analysis Failure Mode & Effect Analysis (FMEA)

  14. Process Improvement Release & Save MMT Plan MMT Create MMT Create Notification Create MMWO Start Stage Materials Rank/ Schedule MMWO Picklist/Issue Materials Reserve 9CAT Materials Assign work to Labor Execute the Work Enter History Print & hand MMWO to Craftsman Fill & Appr. Time Sheet Confirm work completion Accept Work & Close Not. Settle MMWO Cost Approve Not. History Tech. comp. MMWO Business Complete MMWO End

  15. Process Improvement Create MMT Release & Save MMT Plan MMT Rank/ Schedule MMWO Picklist/Issue Materials Start Execute the Work Fill & Appr. Time Sheet Enter History Accept Work & Close Not. Tech. comp. MMWO Settle MMWO Cost Business Complete MMWO End 12 Steps (40% Leaner Process)

  16. Create MMT Release & Save MMT Plan MMT Rank/ Schedule MMWO Picklist/Issue Materials Start Execute the Work Fill & Appr. Time Sheet Enter History Accept Work & Close Not. Tech. comp. MMWO Settle MMWO Cost Business Complete MMWO End Process Control • Revive Accountability • Process Awareness • Performance Measures • Re-define SAP Role Assignment • Enhance SAP-PM04 • Alert in case of MMWO duplication • Alert in case of exceeding planned hours KPI KPI KPI KPI

  17. Lean + Sigma 2.4 3 3.5 4 # of Steps 80% 93% 96% 99% 12 80% 93% 96% 99% 13 80% 93% 96% 99% 14 80% 93% 96% 99% 15 80% 93% 96% 99% 16 80% 93% 96% 99% 17 80% 93% 96% 99% 18 80% 93% 96% 99% 19 80% 93% 96% 99% 20 Overall Project Results Reduces non-value add steps Improves quality of value-add steps

  18. Summary • Lean Sigma is an effective work processes enhancement tool • Promising results are guaranteed with proper implementation • Knowledge gain and individual development is an added benefit

  19. Thank You

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