How Can LSS Improve the Oil and Gas Industry?

@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/

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

@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.