Oil and gas companies can save millions through precision and control of maintenance-crew productivity

4168Oil and gas companies can increase refinery productivity by as much as 30 percent and see a direct positive impact on the bottom line, according to an ARCADIS’ report. Based on a maintenance crew of 100 operatives, increasing productive time through precision and control resulted in $2 million to $3 million in savings annually.

In ARCADIS’ in-depth oil and gas operational excellence report, maintenance costs are typically the third largest expenditure in refineries, costing between $40 million to $70 million a year on maintenance alone.

“To achieve optimal performance, refineries aspire to attain a productivity level of 60 to 65 percent; however, in most facilities, productivity levels are underperforming by 30 to 40 percent,” said Dr. Bashar El-Jawhari, Oil & Gas Regional Sector Leader – Middle East at ARCADIS. “There is a significant gap to understanding the approach to measuring productivity among maintenance crews that require undertaking by the industry. Without accurate measures there is no baseline for developing a plan to improve output or measure progress and outcomes.”

The report underlines the inaccuracy of measurements due to absent understanding of time to tasks or miscalculations of output efficiency. The knock-on effect is that work crews spend only a small portion of the overall maintenance work on direct work. Crews tend to be more efficient during times of knowing they are being measure and as a result measurements should be based on random sampling.

The findings also reveals that variation factors such as weather conditions, health and safety regulations and site accessibility should be considered to help generate accuracy.

El-Jawhari continues, “Implementing basic economics to the strategy can really help oil companies identify areas for improvement and quantify potential savings. Factoring in work activity norms and other variables can have a powerful impact to improving maintenance-crew productivity.”

Dr. Bashar El-Jawhari will speak about Maintenance Cost Savings – Take Control of Your Maintenance-Crew Productivity and Efficiency to Drive Down Your Costs by 20% at the Operational Excellence Middle East event in Bahrain on 30 September at 12:20. The three day forum is being held under the patronage of the National Oil and Gas Authority of Bahrain and is officially supported by the Bahrain Petroleum Company.

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