Chevron Thailand drills around 400 wells each year. There are different types of wells that required different types of material to drill. The process involves approximately 300 different active items. Each year the planning department identifies a 4-year drilling schedule, which includes the drilling project throughout the year.
Each project includes information on rig, AFE, well-type, number of wells, project start date, drilling start date and drilling end date. Each drilling project manager who is assigned to the drilling project will create the drilling plan and material requirements for the project.
Drilling materials are managed differently under difference type of contract by different contract owner. Material on hand are kept in many sources i.e. JDE system, MS Excel worksheet, vendor report. The business has faced many challenges from process as follows:
- Lack of drilling material visibility (Tracking where the existing drilling material is to avoid ordering new material and reduce stock on hand)
- No systematic linkage between material ordering and drilling plan (Tangible form)
- Manual process to communicate material planning to suppliers.
- Scattered demand from various stakeholders
Infinite - Material Balance Application Solution
- Implement IT system and process, for Drilling materials, to improve visibility and ensure optimization of materials ordering to improve capital stewardship.
- Optimized ordering of drilling material to meet customer needs.
- Leverage system capability and automate the process for material planning, ordering and tracking.
- It is a source of truth for drilling material visibility.
- Identify where the drilling material is e.g. pending assemble, pending PO delivery etc.
- Improve materials visibility at 3rd party storage
- Reduce inventory value/avoid unnecessary spending by utilizing existing material
- Reduce inventory replenishment processing time
- Reduce number of PR/PO
- Increase non-A and surplus material utilization
- Optimize warehouse space
- Time saving
(work efficiency gained from replacing manual with automatic process)
- Reduction of Inventory value by $33 MM as 2018 target
($19MM-O&M & $13MM-Drilling).