CONTINUOUS IMPROVEMENT (LEAN)

The Role of Continuous Improvements (Lean) in Improving Work Processes, Performance and Safety

Abdullah Al Hinai

1. WORK FLOW

2. WHY DO WE NEED TO CHANGE – CASE FOR CHANGE

3. THE STEP CHANGE

4. KEY GAME CHANGERS – SUCCESS FACTORS

5. BENEFITS

6. QUICK WINS

AGENDA

PROCESS FLOW in WORK PRACTICES

Idea/ Value Creation/ Objectives & Goals

Feasibility Studies/ Basis for Design

Detail Design

Construction / Work Execution

Operations & Maintenance /Services

Can we continue doing things the same way?

If we continue doing things the same way we do, we will always get the same results

“Insanity is continuing doing something the same way you always being doing it and Expecting Different RESULTS”

What will happen if we don’t change the way we manage our business???

WHY DO WE NEED TO CHANGE???

1. Unstable Global Economic Conditions/ Recessions 2. Increased cost and demand of resources 3. Increased operational cost 4. Dynamic manpower market (high attrition rate)5. New technology demand requiring new set of skills6. Strict legislations ….

TODAY CHALLENGES- CASE for CHANGE

More Specific to Oil & Gas Industry1. Mature & Large Organisations2. Declining fields3. Aging facilities4. Increased Complexity (EOR)5. New line if expertise and skills requirements6. New operational and Integrity challenges7. Water/gas/ wastes/ chemicals management8. Increased operations & maintenance cost

TOYOTA

1. Moving from Weaving Industry to Car Manufacturing

2. High cost , Low reliability cars

3. Poor Sales

4. Continuously increased expenditure in attempt to improve

5. A Step Change – Do things differently (Toyota Production System)

The Primary Focus of a Lean Conversion is to Eliminate Waste and Create “Continuous” Flow.

In most processes, value added lead-time is 5-10% of total lead-time, and is scattered throughout the process

Lean activities concentrate here

Traditional improvement activities concentrate

here

90% 5-10%

Time

RawMaterials

FinishedGoods

The STEP CHANGE – Lean Conversion

WHAT LEADS TO INCIDENTS OR POOR PERFORMANCE

1. Language and communication barriers

2. Unclear instruction

3. Complexity

4. Lack of knowledge and skills

5. Complicated procedures

6. Fatigue and tiredness

7. Short cuts

8. Poor house keeping

9. STRESS

10. ………etc

THE IMPROVEMENT PROCESS - KEY GAME CHANGERS1. Lean Thinking & Lean Tools Implementation

1. End-to-End Process Mapping & Identify Critical Processes

2. Improve & streamline processes through Diverse Execution methods, such as (Just do; Practical problem solving (PPS), Kaizen, Lean Projects & Value stream mapping, Six Sigma projects..etc)

2. Leaders Standard work (LSW)

1. Leader standard work for leaders at all levels

2. Process performers Standard work

3. Go See

4. Visual Management & Visible performance

3. Continuous Improvement Ideas Boards & Huddles

◼ Structured Approach and Systematic work practices

◼ Drives Simplicity

⚫ Job Break Down, Work Instructions, Standard Operating Procedures (SOPs)

◼ Standardization

⚫ Common Approach, standard work practices, Simplified SOPs, WI

◼ Focus & Importance – Rule out non adding value activities

◼ Prioritisation (LSW, process performers standard work, CI Sessions)

◼ Visual Performance (what you cant measure, you cant improve)

- Learn Together - know together - act together

CI & LSW Aim & Focus (Key Outcomes)

HOW(Lean SOPs)

GLOBAL STANDARD PROCESS vs Lean SOP

How do you enable CI environment in the face of global standards and SOPs?

WHAT(Global Standards)

Following and using

STANDARDS = STANDARD WORK

Having STANDARDS STANDARD WORK=A Common Misconception…

STANDARD WORK - PROCEDURES

SOP = Standard operating procedure

WHERE TO DEPLOY CI Ideas Boards

Work Team Level / Supervisor

Senior Leadership/ Director

Middle management

Line Management/Section heads

WHERE TO DEPLOY CI Ideas Boards

• Performance/ Production Status• Inventory Levels• Resources Availability

Seeing As a Group

• Delivery Commitments• Goals And Schedules• Big Rules

Knowing As a Group• Consensus on Objectives,

Plans and Targets• Involvement in

Improvement Activities

Acting As a Group

Visual Performance & Visual Management

Learn Together - know together - Act Together16

VISUAL MANAGEMENT

Visual Performance & Visual ManagementVISUAL MANAGEMENT

14

DOES ALL THIS PAY OFF?!

“BENEFITS"

GENERAL BENEFITS- Activities alignments across all level of the organization and cross-functions

- Focus, prioritization and time freeing

- Stable plans and minimized interruption

- Assurance, sustainability and continuous improvement

- Better management Support and Coaching

- Process Lead time reduction and reduced inventory

- Standard Process and SOPs – Compliance

- Improvement Processes management, focus and improved quality

- Visual Performance, assurance and sustainability

- Step by step improvement

- Day to day obstacles removal

- Coaching for problem solving

- Team work and Employee empowerment

LSW

Lean

Projects

Visual Management

SUSTAINABILITY REPORT 2018 (PDO FACT FILES)

17

1. Furthermore, I am happy to report a 77% fall in the

number of Tier 1 process safety incidents and a 50%

drop in Tier 2 incidents – both the lowest since 2010.

2. In 2018, this supported the delivery of 142 efficiency

improvement projects, securing US$152 million in

cost savings.

3. So far More than 15,700 ideas have been generated

from across the Company and more than 6,000 have

been implemented.

Take Home / Quick Wins

◼ Look at the big picture - E2E process

◼ Identify critical Processes

◼ Break down processes & activities, Eliminate waste & Remove Obstacles

◼ Develop specific, simple & Clear SOPs/Work Instructions

◼ Simplify the standards & procedures (come up with simple SoPs)

◼ Use of Visual Management & CI boards (a good mix between leading

and lagging KPIs. Huddle around the VMs with the process performers

◼ Coach team (at working levels) for problem solving

◼ Leaders Go See (Go to Gemba)

Not being able to see the PROBLEM is the PROBLEM

In most processes, value added lead-time is 5-10% of total lead-time, and is scattered throughout the process

Lean activities concentrate here

Traditional improvement activities concentrate

here

90% 5-10%Time

RawMaterials

FinishedGoods

The STEP CHANGE – Lean Conversion

Thank You…

DRIVE DRIVE CULTUREHABITSROUTINES

Qs…?

FLM

OSW

L3 Audits

OI

5s

LSW

SOPs

CI Sessions

LSW 1-2-1 Reviews

Visual Performance

Gemba Walks

Structured

Systematic

Focus

Prioritisation

Visual Performance

Common Approach

Continuous Improvement

LSW

Simplification

Value Adding

BACK UP SLIDES

1. Value Streams Definition (End to End Process Mapping)2. Step by Step/ Incremental Improvement Journey3. CI Idea Boards 4. Leaders Standard Work (LSW)

DEPLOYMENT METHODS

Examples of Value streams1. Operations & Maintenance2. Project Delivery (feasibility, design, construction, commissioning & handover)3. Sales & Marketing4. Supply Chain (Contracting & Procurement)5. Services 6. Human Resources directorate7. Health, Safety and Environment 8. ….etc

New Ideas To Do Doing Completed

Possible – On Hold

Escalated ideas

Weekly Tally Sheet

Implemented _ Wall of Fame

Blank idea cards

Card sample of goodness

Submitted

implementedDropped Ideas

Team Members

Continuous Improvement (CI) Ideas Boards