Application of Lean Manufacturing Principles to the Upstream Oil Industry

---

Disciplines: Completions | Drilling | Production and Operations | Reservoir

Course Description

This course begins with examining the origins of the Toyota Production System (TPS) with Ford in Detroit, TWI during WW2, and the Demin PDCA cycle in post-war Japan. These principles are now used by every automobile company and we have successfully applied them to upstream work in the oil industry. Actual examples will cover from initial reservoir characterization work to well selection and planning to drilling and completion.

Time will be spent on why and how to streamline day-to-day work using a multi-year infill drilling project (over 500 wells per year for 12 years) and project to drill 190 horizontal well with the world’s closest spacing. Throughout, participants will be encouraged to share their experiences an ho they might apply the principles in their own work.

Topics discussed will be:

• Toyota Production System
  • Just-in time production, customer pull rather than target push
  • Types of waste and how to eliminate them
• Kaizens and Six Sigma processes
• Product families and value streams
• Using Last Planner spreadsheets rather than complete project schedules
• Using Andon boards to visually track progress towards goals
• Standardizing reservoir description products
• Developing error-proof forms and software
• Examples of TPS and Lean Manufacturing
  • Infill drilling project
  • Horizontal drilling project
  • Relationships with contractors

At the end of this course, participants will be able to:

• Understand the lean manufacturing principles that have revolutionized the automobile industry and see how the principles fit the oil industry and be able to apply the principles to their daily work
• Understand the different types of waste and how to identify them; learn techniques to remove waste in order to gain efficiency and reduce costs
• Understand the importance of mapping value streams and creating even flow by level-loading work processes; learn why integrated teams with multiple short projects work more effectively than discipline silos with intermittent large projects
• Understand that their goal is customer satisfaction and the customer does not need more than he/she wants; learn how Last Planner® techniques will help deliverable be on time and correct.
• Appreciate the value of data standardization and product standardization; learn how to do ‘standard work’ and realize that this is just a starting point for improvement

Learning Level

Introductory

Course Length

1 Day

Why Attend

The Toyota Production System and Lean Manufacturing has revolutionized the automobile industry and it has become a disruptive technology in other industries. It will soon impact the oil industry.

Our industry has a reputation of being slow to adopt new technologies and techniques. However, a Lean Manufacturing mentality gained by attending this course introduces new ideas and ways of performing knowledge work that can change this paradigm while contributing to the bottom line with reduced cycle time and improved quality. A significant additional benefit is that engineering and geoscience professionals can spend more time doing innovative work and less time fixing problems or reacting to system upsets-all while reducing waste.

Who Attends

Engineers involved in wells from initial design to completion and putting on-line, geoscientists and engineers wanting to streamline their workflows.

CEUs

.8 CEUs (Continuing Education Units) are awarded for this 1-day course.

Cancellation Policy

All cancellations must be received no later than 14 days prior to the course start date. Cancellations made after the 14-day window will not be refunded. Refunds will not be given due to no show situations.

Training sessions attached to SPE conferences and workshops follow the cancellation policies stated on the event information page. Please check that page for specific cancellation information.

SPE reserves the right to cancel or re-schedule courses at will. Notification of changes will be made as quickly as possible; please keep this in mind when arranging travel, as SPE is not responsible for any fees charged for cancelling or changing travel arrangements.

We reserve the right to substitute course instructors as necessary.

Instructors