The Infosys global supply chain management blog enables leaner supply chains through process and IT related interventions. Discuss the latest trends and solutions across the supply chain management landscape.

September 17, 2014

How Maximo can help optimizing the Pressure Pumping Services in Oil Field Services Organizations.

 

It is being observed that oil companies once rushed to get a well in the ground just to prevent their leases from expiring. Now that those leases have been established, these companies are now focusing on optimizing their operations so to extract the oil at competitive cost. In order to help these oil companies to maximize the gains from the existing oil fields, OFS (Oil Field Services) companies are offering the service mix called as IPM (Integrated Project Management). Analyst predicts that the OFS companies without the ability to deliver the IPM will go nowhere and will have to struggle for their existence. IPM helps the OFS organization to charge the fees for the expertise available within the organization. In near future most of the oil and gas exploration companies would be opting for IPM approach so that the specific expertise can be hired at the reasonable fees and the risk can be shared at affordable price. Thus making oil exploration more attractive and predictable.

Within IPM, Pressure pumping plays a key role .Pressure pumping services consist of cementing and stimulation services used in the completion of new oil and natural gas wells both onshore and offshore. Pressure pumping services play key role in optimizing the recovery of oil reserves and maintain optimal flow for producing wells.

 

According to MarketsandMarkets (www.marketsandmarkets.com), Global hydraulic fracturing market will grow to $64 billion by 2017. North America is expected to lead the global hydraulic fracturing production market. Currently North America leads the market with almost 90% of the market share. In North America the market is led by Halliburton, Schlumberger, Baker Hughes, Superior Well Services and Cud Energy Service.

Pumping machinery is very the critical component of the Pressure Pumping .Pumps are always subjected to wear, tear, erosion and corrosion and therefore can fail frequently. Therefore the correct operation, timely maintenance and lower downtime are very important to ensure uninterrupted services form these pumps. Unplanned failures can be avoided by timely inspection, follow up actions on observations of inspection and by planning periodical maintenance. Down time also can be reduced by adequate stock of general spare parts. Maintenance professionals have also noted that lack of preventive and timely maintenance or poor maintenance can further cause undue wear and tear of fast moving parts, and premature failure of the equipment. If not maintained properly pump can also result in increase in hydraulic and power losses and low efficiency. And finally inefficient running of the pump can increase the power cost. To support the preventive maintenance activities maintenance schedule also needs to be updated and revised based on the experience and analysis of failures and breakdown of the pumps. The preventive maintenance schedule shall mention the detailed steps to be carried out during the specific time intervals For example daily, monthly, quarterly, half yearly, annually etc. The PM schedule shall mention specific inspections and tests those can be performed at appropriate timespan.

 

Maximo can help optimize the operation by pulling these pumps in to the system as the assets along with their hierarchy and by defining the respective PM and job plans against each of these assets. These PMs can be invoked based on the usage or the duration. Maximo also offers the functionality wherein we can include the respective steps related to hazards and safety. Thus Maximo can help these pumps to be more effective and efficient

 

Thus by utilizing Maximo, Oil Field Services companies can improve the operating efficiency of the one of the key divisions within IPM. These savings generated can be passed on to the oil field companies.

September 15, 2014

Aspects of Shutdown Planning - Safety & Procurement

Safety: There may be many factors contributing to success of the shutdown and the most important is safety. As the safety performance is measured by the number of incidents/accidents, preparation is required to make it nil. So what type of preparation does it require? Identify a team which has experience in plant operations, handling hazardous material and occupational safety to prevent "grinding halt' issues. Team has to review the previous occurred incident/accident and identify the cause for the issue. Segregate the proposed list of activity as Ground work, working at height, Vessel entry and hot work. Do a pre-assessment on the activity that would be carried out and analyze the work area for any worker exposure risk. Safety team has to define the potential loss which is associated with hazards and present the need to eliminate the hazards to Shutdown team. If elimination is not possible detailed plan needs to be framed to deal with the hazards.

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Aspects of Shutdown Planning - Scoping, Kick-off & Identification

Plant Shutdown for a manufacturing or an energy company means a complete halt of operations which means the production lines are closed, hence no produce. But what does a plant shutdown mean to the maintenance function? Does plant shutdown mean that the maintenance operations also come to a halt? -No. On the contrary, plant shutdowns are planned to carry out maintenance and this activity is carried out in full swing. This needs to be carried out in a short time, as the production needs to be restored. To achieve this proper planning is required, as it takes production capacity off-line. Phases in shutdown planning can be broadly classified as PEP Planning, Execution and Post Execution.  This blog focuses on key factors to be considered through various phases of shutdown planning and execution that are put into use for effective plant shutdown.

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September 11, 2014

Planning for EAM Application Consolidation Program

Early millennium saw a burst in various IT applications addressing the needs of Enterprise Asset Management. Over the period it became a strategic application for asset intensive sectors like utilities, oil and gas, transportation etc. However back then, both IT infrastructure and the products were in nascent stage. Typical approach was to have a standalone environments for every site or business unit. Product offered limited functionality and usually there was a small local IT team to support the application. Over the decade IT infrastructure has evolved and so has the product capability. Keeping number of data centers limited and having centralize EAM solutions seems to be a natural choice now. Organizations with multiple standalone installations of EAM solutions are at the point of infliction and consolidations of these standalone instances is proving to be a logical path ahead.

Now that organizations are gearing up for the consolidation the major concern of the stakeholders is to achieve the targeted benefits and planning plays a crucial role in this journey. In this blog I am going to focus on various stages of planning for any EAM consolidation program.

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September 8, 2014

Crafting a Digital Enterprise using SMAC stack

Last week, one of our Senior VPs, Narry, also head of Hyderabad SEZ head, forwarded an invitation for a workshop on Digital Enterprise organized by HYSEA (Hyderabad Software Export Association http://hysea.in/) on 6-Sep-2014. Narry is one of the past presidents of HYSEA. Workshop being planned for a Saturday, initially I thought of ignoring, but considering the topic's relevance on the whole community around us - living and nonliving things on this planet - I decided to register. And this was one of the best learning and stimulating experiences I have had in recent past.

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September 2, 2014

Contract Assessment and its dependency on solution implementation !

The importance, awareness and complexity of streamlined contract management processes have been increased over the last few years. Many organizations have started moving to automate their contract management processes to streamline their intra organizational and vendor collaborations. Best-in-Class organizations are those who have established the "paperless contract" approach for managing procurement contracts.

Once an organization decides to implement contract management solution, the next step is to start with assessing leading market solutions and select the best one depending on its various parameters, features and capabilities of the solution. But how do you ensure whether the features you are going for will be really used or needed, to build in-house contract management system or whether contracting processes defined in the organization can be addressed by the selected solution, what could be the gaps, if any and what if solution cannot meet key requirements within contracting & procurement business processes???

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July 31, 2014

Condition Monitoring- A Case Study-Part II

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Condition Monitoring- A Case Study-Part I

Being currently involved in a research project on Asset Management practice in Construction industries, I have been interacting with folks within the industry to understand the peculiarities involved in their Asset Management practices. One such interaction I think is worth mentioning here and this relates to a sparingly or partially used maintenance practice- The Predictive maintenance in the construction industry. The projects awarded to the construction companies  largely depends upon their ability to deliver quality projects in a time effective manner requiring  them to rely heavily on the maintenance functions which drives the reliability parameters and hence governing the upkeep of the equipment. While the industry does reasonably well with the traditional kind of maintenance like preventive and corrective maintenance (CM), the proactive maintenance still lacks the charm.  What do we need for a successful condition monitoring, heaps of operational data? A high profile instrumentation infrastructure? Knowhow of slice and dice data analysis, possibly true but in my opinion these are not comprehensive enough. I think while these are some good enablers, the most important factor for a successful CM is the understanding of reasons behind the every actions which are being performed in the exercise, be it gathering or analyzing a specific set of data or performing a certain set of corrective actions to evade a failure and more importantly spreading this understanding to each and every stake holder involved in the CM exercise. You can witness several CM programs failing because of the limited understanding of holistic program goals. Here's presenting the case study of how a seemingly workable condition monitoring exercise can possibly go wrong.

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June 30, 2014

Automated Work Force Management - Part 1

In my last blog on workforce management I have highlighted some of common issues that a Service Provider organization faces in managing their field work force.  Issues like more time to analyse the work request, accurate assessment of the resource availability with the right skill set, lack of optimum utilization of resources, lack of visibility on the work execution, communication gap between field force and administrative office etc lead to high operating and administrative cost. Most of these issues can be addressed by brining automation and close integration between the key applications that caters to the end to end operations in Service Industries. Automated Workforce Management is an emerging trend in the highly competitive and price sensitive Service industry. The right level of automation can be achieved by tightly integrating various applications like Enterprise Asset Management, Scheduling, Mobility, GIS etc. that supports business operations and incorporate the required intelligence and automation within them

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June 27, 2014

Oracle Fusion Distributed Order Orchestration - The Next Gen Supply Chain Intelligence

Oracle Fusion application is the next- gen suite of enterprise resource planning from Oracle, leveraging the features and functionalities taken from Oracle E-Business Suite, JD Edwards, PeopleSoft and Siebel product lines and the suite is built on top of the Oracle Fusion Middleware.

Oracle Fusion Distributed Order Orchestration is an integral part of Fusion Supply Chain Management, which performs the Centralized decomposition/disintegration to itemize intricate orders into separate, interconnected fulfillment design targeting the multi- network, division and partner fulfillment networks.

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