Lean Six Sigma In Oil And Gas

Lean Six Sigma in Oil, Gas Petrochemical Industry has triggered the oil and gas industry to embrace more efficient means of operations. Lean Six Sigma has been applied by companies in oil and gas to increase reliability, improve production and reduce cost while running safe operations. Too much waste, too much redundancy and lengthy turn around time result in the most efficient oil and gas companies failing to meet customer expectations.

Oil & Gas companies are required to be flexible and agile to succeed because the industry continues to face a lot of problems like technical innovation, price volatility, and an uncertain regulatory environment. In the long-term, the principles of continuous improvement can drive the required results even in the most dynamic environments. This is why the Lean Six Sigma methodologies are gaining popularity in the oil & gas industry.

Why is Lean Six Sigma so important in this industry?

Lean Six Sigma practitioners should be able to:

  • Understand what value the process provides in oil manufacturing
  • Define the ideal state for the operation, system, and business
  • Understand the current condition and the gaps that need to be narrowed
  • Find the root causes of safety issues, production, variation and losses
  • Design a plan to address the gaps in quality

In the oil & gas sectors, this approach can be applied to individual processes or the entire organization. The goal is to achieve perfection with respect to spills, safety and delays. Everyone must realise that making problems visible and working to correct them is a main function of their job.

Some tips for implementing Lean and Six Sigma in Oil and Gas-

  • Lean Six Sigma has many advantages when applied rigorously to any Oil and Gas problem. Great results are guaranteed if all necessary conditions are met initially before taking the process any further.
  • Many tools and concepts used in Lean are not new in the oil and gas business. It is proven that the Lean and Six Sigma approach when applied rigorously can yield effective results by choosing the existing knowledge and appropriate statistics tools.
  • Lean Six Sigma guarantees continuous improvements and defect reduction and this is essential for the success of any business in a competitive sector such as oil and gas.
  • Some policies could hinder the improvement or the progress of the Lean Six Sigma approach. Such policies need to be relaxed, modified, or replaced.

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