PROCESS IMPROVEMENT ON WORKOVER RIG CONTRACT TRANSITION TO ELIMINATE DELAY DELIVERY OF NEW-ENTRANT CONTRACTOR BY USING LEAN SIGMA METHOD

• Main Author: Arliyando, Lamdamatra
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/47516
• Institution: Institut Teknologi Bandung

PT CEPI as major oil producers in Indonesia has a challenge to maintain its production by drilling and workover operations. Drilling operation has been in-economic since the oil price slump in FY 2015, so business strategy is switched from Drilling-Workover into 100% Workover operation. This switching strategy is considered a short-term strategy responding to global oil slump. Workover operation is performed by workover rig which ranging about 250 to 450 HP. Beside rig contractors, other supporting parties are involved in operations, such as service company sub-contractors. Those parties provide services as per short, medium, and long-term contracts. Global oil slump in 2015 has implications on replacing long-term contracts into short-term contracts. The current contract transition owns the 'loophole' of delay delivery that has resulted in Loss Potential Opportunity (LPO). In other words, LPO equals to cost of poor quality (COPQ). Delay rig delivery valued on average 18.3 days or equals to LPO about IDR 65 Billion or equals to US$ 4.5 MM. The Company expects all rigs are delivered and commenced on time. Delay rig delivery has impacts on less job executed, or oil well serviced, and delay put-on-production (POP), and decreasing oil gain. If the Company could not achieve the lifting target, furthermore, national oil production could be also decreased. In this study, we conduct research based on the DMAIC framework. The problem is identified clearly and major contributing factor of delay delivery comes from two (2) major problems, which are: 1). WellSafe process takes longer than expected, and 2). Rework on close finding. Furthermore, Current Reality Tree (CRT) Analysis results in six (6) root causes that is required to reduced or eliminated using contractual or operational point of view. In total, there are eight (8) generated alternatives are passing through decision-making process. These alternatives are implemented all, but ranked based on decision criteria and priority. In the end, we propose control plan, control mechanism, and implementation schedule. We expect that in next contract transitions, expected on February 2021, if there is any new-entrant contractors entering the tender and winning the bid, they could deliver services on-time and results in zero delay delivery.