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How Can LSS Improve the Oil and Gas Industry?

Six Sigma – iSixSigma Forums General Forums Implementation How Can LSS Improve the Oil and Gas Industry?

This topic contains 5 replies, has 4 voices, and was last updated by  Mike Carnell 1 month, 4 weeks ago.

Viewing 6 posts - 1 through 6 (of 6 total)
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  • #242345

    Camelia John
    Participant

    Hello friends,

    How to improve Oil and Gas Industry by Lean Six Sigma?

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    #242348

    Katie Barry
    Keymaster

    @cameliajohn Did you search our site? We have a section of content on applying LSS to energy. Industries > Energy: https://www.isixsigma.com/industries/energy/

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    #242349

    Camelia John
    Participant

    Not yet. Thanks for the link @katiebarry

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    #242383

    Sergey Glukhov
    Participant

    Camelia, hi.

    There’s lots of information on using LSS in Oil Industry. The best known examples are by Chevron.

    If you send me your email I will send to you all I have in my archives.

    Sergey

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    #242384

    Sergey Glukhov
    Participant
    #242607

    Mike Carnell
    Participant

    @carmeliajohn Oil and gas is a very large area. Is there a particular place in that chain you are looking? If you lok at the current issues in oil and gas and the oil and gas recession you have to understand cost is always going to be a huge issue. It is the basic “last man standing” mentality. You are in a commodity business. The market determines the price so your basic cost model is Market Price – Cost = your profit. There is always going to be that point where when your cost is equivalent to Market price you are break even. Your cost is higher than market price and you loose money. At the very least any cost reductions can have a significant impact on the oil and gas business. The other analysis you need to do is where is the leverage. You don’t want to sell a project on reducing the price of copiers leases for your office when you are paying $27,000 per day to have a drill rig on site. Find out what matters.

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