STRATEGY AND OPERATIONAL RESEARCH TO IMPROVE THE PERFORMANCE OF PROGRAM GENERATION PROCESS BLUE OIL COMPANY CASE STUDY

• Main Author: Hendy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/50358
• Institution: Institut Teknologi Bandung

Blue Oil Company (BOC) is one of the largest oil producers in Indonesia. The company sometimes face a condition where one team pursues their objective by not looking at other units’ objectives. This condition may create a friction internally such as the case we have on workover program generation process. D&C engineering is accused by LSC of contributing to loss on potential oil. This is based on the number of not ready programs on the backlog. D&C Engineering is not agreed with the claim because of the absent of nonproductive time in workover rigs due to waiting on programs. The objectives of this final project are to find the alignment of between team’s objective and then found the improvement initiatives to reach the objectives. In this project, the writer analyzes the case based on the conceptual framework in two dimensions, which are operational and strategy dimension. In operational dimension, system thinking in operational research is used in analysis. The writer also develops mathematical model to simulate the condition in the operations. Meanwhile in strategy dimension balanced scorecard is used to do analysis. From the analysis, the writer found that there are differences in scorecard, multiple platform used in program generation, resource reallocation and influences of current SOP to the program generation process. All these elements contribute to the increase of program generation cycle time which directly connected to the program backlog and LPO condition. After found the root cause of the situation, alternatives of solution are selected and combined to design the best strategy. Strategy is selected with SMART methods where the weighted criteria are based on the inputs of decision maker & SME. Then, the writer formulated the final strategy as “AMPRS” which stands for Alignment, Monitor, Plan, Reinforce, and Support. These strategies are consisting of several activities which is designed to be the answer of the root cause of the case. The implementation of this strategy starts with the objective alignment, key metrics monitoring, action planning to achieve the objectives, reinforcement with the standard procedure, and end with supporting tools on working team. We divide these implementation strategies into two phases. First phase is to have key objective alignment and create dashboard for monitoring and planning. The second phase is to simplify the program platforms and create the SOP for the program generation process. Then before implementation of these activities the writer also layout the schedule, data collection, and behavior action plan. Finally, the writer reports out some of the implementation progress. It starts with the meeting between D&C engineering and LSC team to have an objectives alignment especially on agreeing the program cycle time. Then, the team has built the dashboard for monitoring and create a taskforce for reducing the cycle time / backlog. The cycle time reduction after the dashboard in place proofed its effectiveness. Then in phase two, the writer is on the testing phase on the simplified program platforms. Even though challenged by the Covid-19 condition this second phase is still progressing to support the working team reducing program cycle time.