Performance Improvement

In today’s oil & gas industry many organizations are struggling to improve their operating performance in response to market demands for lower costs, higher-quality products and services, shorter lead times, and higher returns on investment in infrastructure and resources. The market reality, however, is that investors are focused on demonstrated strategic performance improvement and cost management, explicitly enabling business design innovation and growth.

Oliver Wyman has assisted many companies in addressing business challenges in the areas of:

• Process redesign
• Benchmarking and performance management
• Sourcing and supply chain management
• Working capital management
• Lean Six Sigma operations improvement

Recent engagement example

Drilling strategy and effectiveness - For a large integrated company, Oliver Wyman identified specific opportunities to improve the company’s drilling strategy and practices by comparing the company’s own practices to “best in class” international operators. The economic impact of these improvement opportunities were quantified (close to $4M) and an action plan to implement improvement opportunities was developed.

Supply chain and working capital management: Oliver Wyman helped a major North American refiner/marketer develop a program to eliminate unnecessary inventory through supply chain optimization. The work resulted in more than $400 million of free cash and a lower operating cost structure.

Value sourcing: Oliver Wyman assisted a client in identify areas to reduce costs through improved sourcing across purchase categories and through redesigned sourcing processes. The resulting sourcing and inventory strategies yielded over $80 million (8%) of savings on an annual spend of over $1 billion