Lean Production Control - Bakken Well Factory
Channel: Project Production Institute
Date: 18/11/2021

Dougie McMichael, the VP of Hess’s global onshore production business, discusses at the symposium the company’s well factory in North Dakota, which uses a factory-type system for oil development to optimize the well production system and reduce variability.

Hess employs a last planner system, lean mindset, and technology application to improve operational performance and reduce variability in well drilling and pad manufacturing. The company emphasizes cultivating a servant leadership approach and integrated relationships between operators and suppliers.

McMichael notes that good relationships with suppliers and the use of processes to manage variability are essential to optimize production. He stresses the importance of managing variability and volatility in the oil and gas industry, which can arise from various factors such as changes in geology and the need to work with other customers.

McMichael also highlights the challenge of implementing technology and innovation into the company’s processes, the importance of people development, and the need for cost management.

#leanproductioncontrol #costmanagement #managingvariability