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2022 | Buch

Improving Supply Chains in the Oil and Gas Industry

12 Modules to Improve Chronic Challenges for Maintenance, Repair and Operations


Über dieses Buch

This book analyses and proposes solutions to one of the core challenges faced in the Maintenance, Repair and Operations (MRO) supply chains in the oil and gas industry, a field that is currently impacted by low oil prices, emerging technologies and a societal transition to cleaner energies. It describes the end-to-end nature of the oil and gas supply chain, and challenges paradigms and accepted ways of working within the industry – such as wastes driven by broken interfaces, naivete regarding supply chains, and the practice that considers re-organisation to be the answer to these challenges – and identifies opportunities to shift this paradigm towards reliability and value.

Moreover, the book shares the authors’ front-line experience and encourages readers to consider deploying the solutions presented in their own contexts. The insights from the book’s 12 modules are based on personal experiences and are industry-generic, allowing them to be transferred to other MRO supply chains. Readers are encouraged to use this book as a reference for their own supply chain transformations.

The book is primarily intended for practitioners, including chief operating officers, chief financial officers, chief supply chain officers, engineers and heads of procurement, purchasing, operations, and materials management.


Chapter 1. Lower Forever
When I was growing up, there were always two businesses that were considered to be as ‘safe as houses’, the banks and the oil companies. The comments used to be that ‘Joe has a great job in banking, they will do well, the banks are a really safe place to work’. And so, it was with the oil industry—this person has been out on the rigs or working in Saudi, we will always need oil. That was what they said… .
Sanchay Roy, Stewart Dunbar
Chapter 2. The OPEX Challenge
Winston Churchill is credited with the statement ‘Never let a good crisis go to waste’ when he was working to form the United Nations after WW2. This was a time when the world had indeed made a significant detrimental impact on itself, ravaging nations, leaving industry on the floor and driving its population to the edge of despair. There could only be one way and that was up.
Sanchay Roy, Stewart Dunbar
Chapter 3. Supply Chain Development in Oil and Gas Industry
The oil and gas sector is a very specialised and focused industry, where deep knowledge and experience is the norm. Often there is a significant level of government involvement through either shared ownership and/or strict regulatory controls. Making genuine mistakes in some countries can lead to arrest and imprisonment. On the other hand, due to the level of government involvement and the size of contract awards, there can often be an unhealthy tension between trying to achieve the best outcome and satisfying senior partner expectations.
Sanchay Roy, Stewart Dunbar
Chapter 4. The Missing Pieces
The history of Logistics in the Oil and Gas Industry is complex. Given the remote location of assets it includes all modes—Land (ranging from pick-up trucks to large trailers, buses and cranes), Aviation (Rotary and Fixed wings) and Marine (Tugboats, security, houseboats, barges, Jack up barges, PSV, water taxis, flotels) with all its complexities and regulations. All of these modes also include the inherent health and safety (HSSE) exposure and in certain countries security measures. Theft, robbery and armed assault are often part and parcel of asset operations in some geographies.
Sanchay Roy, Stewart Dunbar
Chapter 5. Twelve Modules for Supply Chain Transformation
The biggest challenge for most supply chains is to create a repeatable process that runs effectively with minimal interventions and is capable of resilience within planned parameters. In most consumer-facing industries, significant effort is invested in designing resilience based on the variability of demand.
Sanchay Roy, Stewart Dunbar
Chapter 6. When Culture Meets Transformation
The definition of insanity, according to Einstein, is to keep doing the same thing over and over again but expecting different results. So would the right answer be to take the opposite approach and always try something totally different? Neither of these tactics is effective—the first one is akin to banging your head against a brick wall with invariably no noticeable change except perhaps a sore head. The second approach can have such a disruptive impact on the culture of the organisation that it can end up doing more harm than good and if it is done too often, it can appear that the leadership is clutching at straws maybe to appease shareholders rather than to secure the longevity of the business.
Sanchay Roy, Stewart Dunbar
Chapter 7. Getting Started
Another version of Einstein’s definition of insanity, attributed to Henry Ford is that ‘if you always do what you have always done you will always get what you’ve always got’. The British coxed 8’s rowing team used this wisdom to begin their training for their preparation for the 2000 Olympic Games in Sydney. They translated this into a question they asked before any training session or decision taken ‘will it make the boat go faster?’ If it moved them towards their goal, then they did it, if it did not then they did not do it. This approach even extended to them attending the opening ceremony, they asked themselves would attending this event make the boat go faster? What they decided was it would interrupt their training; it would interrupt their eating plan; it would interrupt their sleep. Consequently, they chose to watch the opening ceremony on the television in the Olympic village like the rest of the world. No doubt they got some significant negative press for doing this, but on 24th September 2000 at 10:30 am, they started a race in which they were not the favourites to win because they were being judged on previous performances of the British team in the Olympics. But the win they did and the hard work they put in to change the way they approached their training resulted in them beating Australia in the final by almost a second.
Sanchay Roy, Stewart Dunbar
Improving Supply Chains in the Oil and Gas Industry
verfasst von
Sanchay Roy
Stewart Dunbar
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