OPERATIONAL BUSINESS REVIEW

An Operational and Organisational Business Review for an Oil Services Company

CLIENT

Divisional President and Executive Board

ACTIVITY

Major subsea services company

"ONE OF THE LARGEST SUPPLIERS OF SYSTEMS, PRODUCTS AND SERVICES TO THE UPSTREAM OIL AND GAS SECTOR"

KEY ISSUES:

The key issue for this company was a substantial increase in new customer orders. Normally, winning business is a time to rejoice, but in this case it created concern that the operational structures and manpower would not be able to withstand the additional workload.

There were complex internal issues that made analytical interpretation of the organisation challenging. The entire company was structured around a matrix that, when operating well, created internal customers and suppliers. The negative side was that staff had many managers with differing agendas and competitiveness within the management hierarchy had led to conflicting directives and inertia.

Culturally, the main challenge for the company emanated from the impending sale of the business. The workforce within the UKCS area believed there was no requirement to improve their business, as their new owners would surely bring in new processes. A fatalistic culture was pervasive throughout the organisation.

 

THE APPROACH:

Operational analytics were used to assess the capacity and productivity of each function. Gap and root-cause analysis followed to establish reasons for short falls in performance. A road map was then created showing what should be implemented to improve performance and sustain change.

 

THE OUTCOME:

Capacity models using future demand were developed showing areas where workload would overstretch labour and factory availability. These were detailed models showing exactly how much and when the division would be over subscribed.

A detailed review of the production area resulted in a material flow model of ‘actual’ vs ‘potential’ showing untapped capacity. The project management process was reviewed and critiqued and a set of qualified improvements proposed. A suggested structure for the organisation was also modeled and discussed with the senior team.

In summary, the outcome was that with improvements to the operation and structural changes in the management hierarchy, the company could deliver against future customer forecasts.