The improvement of contractor workforce productivity performance through collaborative approaches of the integrated performance measurement system (IPMS) and lean sigma process in the "mature oil field" operation (case study: Light oil operation in scattered "X" field)

• Main Author: Sejati, Rahadian Haryo Bayu
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15936/1/P6.pdf; http://repo.uum.edu.my/15936/; http://stmlportal.net/ictom04/TOC.html

Now days most of oil fields in Indonesia have been categorized as mature oil field operation and its oil production trend continued to decline. PT. ABC is a multinational oil company that had been operating and managing several oil fields in Indonesia since 50 years ago.The current situation has led to narrowing the company revenue margin since the lifting cost trend tends to increase while the total oil production declines over time and its major component is the contractor cost.Refer to stakeholder’s voice indicates that the contractor low productivity level occurs by too much workers showing in-effective manpower usage and in-efficient working time.The Integrated Performance Measurement System (IPMS) aimed the company to describe the performance measurement system of contractor workforce productivity in “Mature Oil Field” Operation in the form of business level integration that consists of Business Parent, Business Unit, Business Process and Activities. As the result, 3 (three) Key Performance Indicators (KPI) were determined during IPMS implementation in accordance to properly measure the current productivity level of contractor construction workforce in scattered “X” field as expected by the stakeholders.These Key Performance Indicators (KPI) are; Productive Ratio, Supervision Cost, and Schedule Compliance. These KPI’s are being applied for both Work-Unit Base and Resource-Hour Base Contractors. PT. ABC business process improvement tool of Lean Sigma DMAIC roadmap has been successfully applied to provide statistical data baseline, analytical root cause, generate the improved scenario to achieve metrics as defined and sustain its improved process within the next 12 months of control phase.The total financial benefits claimed is US$ 2.4 MM by improving ~ 43% working time productivity ratio, supervision cost saving by 10% and sustain effective 8 (eight) hours working of resource-hour base contractor.The Integrated Process Measurement System (IPMS) and Lean Sigma collaborative approaches have given a platform of common understanding among the parties and measurement of progress towards readiness for the process improvement deployment as well as to ensure its sustainability.