Tag Archive for: O&G.

Oil and gas (O&G) production is crucial for Indonesia’s economy, and Company XYZ is actively involved in O&G exploration and production in three operational fields. Effective contracting and procurement procedures are essential for timely access to equipment, services, and materials while minimizing costs, delays, and risks. O&G procurement involves various responsibilities such as procuring drilling rigs, equipment, seismic services, and transportation. Insufficient planning in these processes can lead to project delays, increased expenses, and lower profitability. To address these challenges, the research proposes implementing Lean Six Sigma principles with the DMAIC methodology to improve the contracting and procurement process. In the Define phase, the current state of the contract award process is identified through process mapping. The Measure phase evaluates the internal contract routing approval performances, highlighting variations in completion time for IRS documents. The Analyze phase identifies factors contributing to redundancy, including lack of digitization, absence of a contract control system, time-consuming processes, and a complicated routing process. The Improve phase recommends three solutions: implementing a contract monitoring and control system, streamlining the contract approval routing process, and digitizing the contracting and procurement processes. These solutions aim to improve efficiency, coordination, and decision-making, ultimately enhancing the contract award process, reducing delays, and increasing operational effectiveness and profitability. The Control phase ensures the sustainability of proposed solutions through regular monthly reviews to assess the effectiveness of the control plan and make necessary improvements.