“We managed to reach and exceed the specified goals”
Background – client
This relatively young and entrepreneurial offshore accommodation operator runs capital-intensive assets in extreme conditions, providing top quality floating hotels for offshore businesses all around the globe. Following steep declines in the oil price, the industry’s focus shifted from uptime and revenue to cost control, putting margins under pressure.
As the client transformed from an engineering company into a fully operating business, the company decided to commission an independent analysis of its operations. Mantec was chosen to perform the analysis due to their experience in the industry. It confirmed there was clear improvement potential within operational performance, both on- and offshore.
Analysis
The analysis revealed significant potential for improvement:
- The supply chain “request to pay” (RTP) process* involved multiple administrative departments. During the analysis it became evident that the interfaces were not defined and clear, creating longer lead times and ultimately a less productive and heavier organization than necessary.
- Disconnects existed between onshore and offshore operations.
- Opportunities to address purchasing costs were not realised, partly due to RTP issues and partly due to unclear roles and responsibilities.
- A structured approach to strategic procurement was not in place.
- No effective management operating system existed on the rigs, with crew resources not deployed effectively, resulting in more people offshore than needed.
*The Request to Pay (RTP) process refers to the full procure-to-pay cycle: from raising a purchase request, through approvals and ordering, to delivery, invoicing and payment.
Implementation
The company launched an improvement program to implement the recommended changes. The project focused on two areas: supply chain and rig costs.
- Supply chain process (consumables, spare parts and services): A completely revised process was developed and installed, with clear responsibilities, handovers and communication. Procurement activities were overhauled, and a dedicated sub-project reviewed all spend and suppliers.
- Rig costs: A performance management system was developed and rolled out across all rigs. It combined KPIs and review processes in a structured way, supporting improved performance. Consultants also assessed crewing on a rig-by-rig basis to develop optimal crewing plans.
Results
- Reduced overhead costs to administer the supply chain
- Lower rig inventory levels while increasing uptime of critical machinery
- Reduced purchasing costs
- Reduced rig crewing costs
- A performance management system now in place to support ongoing operational improvements
Client Feedback
“We, our internal staff, together with Mantec managed to reach and exceed the specified goals. Mantec and its consultants have been good at assimilating and understanding our company culture and organization. Their partnership with our managers and staff has been very successful and motivating and they have repeatedly provoked us into thinking differently.
We would therefore not hesitate to recommend Mantec to other businesses wishing to implement sustainable changes quickly, efficiently and with excellent result.”
Discover how Mantec can help your organisation unlock hidden efficiency potential – contact us today.
