OPERATIONAL TIME & COST IMPROVEMENT FOR ROUTINE SERVICE JOB AT RIG GBT-09 BY USING LEAN SIX SIGMA FRAMEWORK AT BLUE OIL COMPANY

• Main Author: Sintong O Tampubolon, Arnold
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71329
• Institution: Institut Teknologi Bandung

Blue Oil Company (BOC) is well-known for its large crude oil production in Indonesia. Facing the upcoming end of contract with Indonesian government, BOC keeps trying to maintain its production level. The condition challenges D&C (Drilling & Completion) Rig Hub team to optimize routine service job at one of its conventional rigs to decrease operational cost and loss production opportunity (LPO). Based on performance lookback in early April 2021, Rig GBT-09 cycle time performance did not meet the cycle time performance of other conventional rigs (BMS-05 and BN-09) in heavy oil area. Therefore, the intend of this final project is to improve operational time and cost from routine service job that executed by Rig GBT-09. Based on internal discussion and brainstorming session, there are five opportunities for improvement, that are cycle time improvement of rigging down rig, online to offline initial killing, cycle time improvement of rigging up rig, cycle time improvement of tree removal activity, and cycle time improvement of blow out preventer (BOP) test. Lean Six Sigma has been used by BOC to improve routine service activities at GBT-09. The methodology of Define-Measure-Analyze-Improve-Control (DMAIC) is chosen to ensure the successful of this project. In the Define phase, the author and team identify the business issue, define project scope, and develop project contract. In the Measure phase, the author and team measure the baseline activities and calculate cost of poor quality (COPQ). In the Analyze phase, the author and team analyze the baseline data and identify the possible root causes using fishbone diagram. In the Improve phase, the author and team gather any creative ideas of solution of the root causes, propose strategy for improvement, and propose new routine service procedure for GBT-09. The proposed solutions are to make new flow process for rig up, initial killing, rig down, tree removal, and BOP test activity. At last, in the Control phase, documentation and socialization are conducted to make sure the solutions are alive. This project shows satisfying result of reducing cycle time of routine service job at GBT09 from 20.70 hours to 18.04 hours per job. As a result of the reduced cycle time,BOC saves $4,040 operational cost after making improvement trial on 11 wells in April 2021. Moreover, BOC also successfully increase revenue for accelerating oil production of $838. Therefore, the total financial benefit after making improvement trial on routine service job of GBT-09 in April 2021 is $4,878.