Operational effectiveness – improving performance
Getting the very best out of operational activities has become vital for oil and gas companies. Reserves are becoming more inaccessible and expensive to get out of the ground. New technologies and engineering solutions need to be maximised. Scarce talent has to go further. Midstream and downstream activities need to gain margin. Above all, industry safety is critical.
Operational excellence is no longer something to strive for – it is a ‘must have’. PwC’s operational excellence services can ensure you deliver. We’ll develop a picture with you of the gains you can make. Then we’ll make sure you are on an accelerated path to make them real. You’ll have a clear understanding of your destination and the confidence to get there fast.
We’re close to the industry and have insight into the challenges you face. We’ve seen the problems companies often trip over. For example, the pitfalls of not involving developers or receivers early enough, or the difficulties operations and subsurface sometimes have in collaborating. We’ve got substantial major project development expertise as well as existing asset optimisation capabilities. Our operational excellence solutions give you:
- A structured approach to assess current operations and design improved processes which are linked to strategies. Supported by a PwC proven methodology and toolbox that accelerates the project, involves management and key employees.
- Support to implement the project, securing the ownership and commitment of functions to deliver continuous improvement.
- An outcome that results in a documented “one way of operating” embedded in your business management system and with clear links to people and competences.
PwC is a leading adviser to the global energy industry, working with every segment of the business – from upstream to midstream to downstream – to provide business solutions tailored to meet your needs. For more than 100 years, we have helped energy companies succeed.
How PwC can help you
Some of the areas where our operational effectiveness add real value to organisations include:
- E&P blueprint – E&P companies need to prepare organisations for new challenges, e.g. Related to new operator responsibilities – affecting required capabilities, improvement, scaling of organisation and compliance. Also used to scale down, improve selected areas.
- E&P competence management – Ensuring that the organisation have sufficient capabilities (Competence, Capacity – Capabilities) within E&P areas – to support operational plans, and to be compliant with external requirements.
- Asset optimisation – The industry’s asset intensity, scale of operations, extensive use of third-party services, aging workforce, and aging assets and infrastructure create a need for operational excellence to manage not only the operational risks, but also to improve profitability.
- Sourcing and procurement – E&P companies need to establish strategic capabilities to meet aggressive year–on-year cost reduction targets while supporting the changing operational, risk and compliance needs of the business. Reliability maintenance – Upstream, midstream and downstream clients all face the growing challenges of aging assets and the continual need for high reliability and availability. This requires a focus on accommodating defects safely and efficiently as well as working to eliminate defects.
- Major projects (turnaround/capital) – Maturing assets requiring significant investment but project management and control organisations are often inefficient and ineffective. This leads to cost overrun and schedule slippage.
- Integrated planning / Performance management – Clear linkage between strategy and operations is accomplished utilising robust planning and performance management processes that provide each level of the organisation the information to make decisions and understand risk and operational performance.
- Demand drive value chain / operational improvement – Within large IOC and NOCs performance is often optimised within a business silo and not across the value chain. Companies are now re-evaluating enterprise profitability and finding from an industry perspective that some customers, markets, products, trading strategies and even businesses have opportunities for improvement and integration.
- Supply chain transformation – The design & development of large scale & complex supply chain transformations in capital intensive industries such as oil and gas, utilities & telecommunications. The development of a holistic strategy which embraces category management, the evaluation of core incompetencies, technology integration & benefits realisation.
- Procurement optimisation / category management – Improve visibility and scope self funding scope programs Enterprise asset management – Ensuring the availability of business critical assets, and achieving a step change in uptime, at reduced CAPEX and operational cost.