With intense cost pressures across the industry, the challenge to “do more with less” was suddenly very real. This client’s dilemma: How could world-class support from their vendors be continued in a more cost effective manner?
Simply reducing headcount or contract rates was not enough. These important oilfield services had to continue in a safe, and reliable way. It required a new way of working and a new style of decision making by front-line leaders within the vendor workforce.
Applying our Cost Excellence Methodology:
- Built a vision for success with the people executing the work. RLG led discussions with leadership and workers in the office and field, addressing cost concerns and the ability to continue critical support functions, like rig moves.
- Brought transparency to the costs they can control. When interviewed, most leaders expressed how difficult the existing accounting systems made identifying job and labor costs by activity or project. RLG partnered with finance and operations to develop meaningful data reporting and KPIs.
- Optimized efficiency by engaging those closest to the costs. This started through building accountability in weekly reviews of targeted cost KPIs. This drove better planning and execution decisions while quarterly business reviews offered both front line employees and management to discuss KPIs, accomplishments and prepare a plan forward for further gains. Teams offered ideas and stayed on the lookout for cost saving and efficiency improving opportunities.
- Standardized new best practices around planning, lessons learned, and cost review discussions to build sustainability. Employees were provided training in the new Rightsize process and those closest to the work had a strong voice in the rollout across the team.
This Accomplished an 18% drop in rig move time through a focus on lessons learned and planning ahead
Fleet equipment right sized by 26% due to better visibility of true utilization
“Let’s understand the costs, then bring transparency.”
Drilling and Wells Manager
“RLG is a great partner. They are a catalyst for change.”