Maintaining sustainable performance in operating petroleum assets via a lean-six-sigma approach
Authors: Ratnayake R.M. Chandima , Chaudry Osman 
Published: February 2017

Purpose

This paper aims to demonstrate the possibility of maintaining triple bottom line (TBL) sustainable performance in the petroleum industry via a case study. In particular, it presents the utilization of a lean-six-sigma (LSS) concept for investigating one of the underperforming support service activities in an engineering contractor (EC) and to indicate how LSS concepts enable the barriers to maintaining sustainable petroleum operations to be reduced for maintaining sustainable petroleum operations.

Design/methodology/approach

A case study has been carried out in an EC organization in relation to one of the support services (i.e. valves requisition process [VRP]) to demonstrate how LSS concepts enable the barriers to maintaining sustainable petroleum operations to be reduced for maintaining sustainable petroleum operations. Value stream mapping (VSM) and value stream analysis (VSA) have been utilized to investigate the barriers that inhibit sustainable operations. VSM and VSA have been performed to investigate the underperforming activities in the selected support service (i.e. VRP) using a current state map. After performing VSA, a future state map has been developed, indicating possible improvements in overall TBL sustainable performance.

Findings

VSM and VSA enable the barriers to maintaining TBL sustainable operations in the petroleum industry to be investigated, while minimizing waste in the ECs and asset owners’ organizations.

Research limitations/implications

The study has been limited to ECs’ support services, which have been delivered based on asset operators’ requirements.

Practical implications

The suggested LSS approach and related analysis help practicing engineers to perform similar analysis for different engineering support services. Improved performance in support service results minimize health, safety and environmental challenges in asset operations, and the resulting waste reduction increases the return on investments.

Social implications

Effective delivery of the assessments minimizes potential delays in projects related to petroleum operations, mitigating future accidents. It enhances the TBL sustainable performance of an asset-intensive industrial organization.

Originality/value

This manuscript addresses the inherent TBL sustainable performance challenges in the petroleum industry that have been caused by delayed projects. The responsibilities of projects’ delivery are mainly attributed to ECs. The EC organizations are operating in project mode, and projects delays are inherently caused by the frequently changing nature of: operators’ requirements; suppliers’ and/or manufacturers’ capabilities and restrictions; and lack of standardization in documentation and work processes (i.e. because of different engineering projects’ demands). Hence, this manuscript illustrates a methodology to demonstrate the possibility of TBL sustainable performance improvement in the petroleum industry via a case study (i.e. VRP-related project delivery performance improvement) in an EC organization utilizing the lean concept.