Managing Challenges in OE Operationalization in Oil & Gas sector

Sreejith Pillai

pillai_sreejith@hotmail.com

Defining an OE model with the selected elements is the first step, presuming the need to have an OE model is
already deliberated and agreed with stakeholders. Typically, OE is headed by a very senior person having
Operations background and OE is all about achieving & sustaining Excellence through Standardization &
Optimization [Standardize, Optimize & Excel]. These clear expectations will provide clarity to the whole
organization and focus to the OE operationalization journey. The OE journey is not going to be easy and quick
since the organization as a whole is consciously gearing up for being world-class achieving Operational
excellence.

It is very important to note that the OE operationalization approach is modelled keeping in mind the existence
of current mature practices, life cycle approach, limited resource bandwidth at plants, typical reluctance to
change, etc. In my experience, a phased model implemented with the strong top management support and
competent resources will make OE Operationalization a success. A carefully planned & executed
operationalization programme will convince the top management as well as the operational units and other
stakeholders. The steps involved in any initiative shall include development of OE documents; Support
implementation & Sustain, and Governance [Performance Management and Assurance]. OE roll out need to
be through a series of interactive workshops leading my example and the domain experts should have the
right skill sets to manage this critical, ambitious journey of excellence, moving from good to great. Like any
successful initiative, begin with end in mind. Define OE end objectives, set KPIs & dashboard and them
develop documents and implement accordingly so that finally, OE as a team achieve objectives together.
Starting with a mind map that helps one to map all possibilities and then thinking out pragmatic solutions is
another way to ensure success.

The best way to arrive at an OE operationalization strategy is to define OE maturity model for OE as team and
for each of the OE elements so that the OE management team understands the where are we now and
where to get to. Once this is discussed and agreed, the OE operationalization strategy [how to get there] can
be discussed and agreed.

I had the wonderful privilege of getting involved in early discussions at OE conceptualization stage and THEN
successfully operationalizing one element, Technical Integrity within an ADNOC Oil & Gas operator
organization, which is very similar to OE models of major oil & gas operators. I have seen the confusions of
setting up OE team, recruitment process, and operationalization challenges and then seeing the light at the
end of tunnel to have a live Technical Integrity dashboard supported with a complete set of KPIs with an
improved companywide awareness level & integrity culture. Later on, I was part of Technical Integrity OE
optimization team.

Typical OE elements:
Sreejith Pillai / 2015
 1. HSE [including PSM & sustainability]
2. Asset Integrity [Technical Integrity, Operational Integrity and Design Integrity]
3. Operational Readiness [optimized Projects delivery]
4. Reliability & Asset Life Extension
5. Maintenance [including turn around & category management]
6. Production

OE Organization Structure:

While gathering OE team, it is very important that all excellence initiatives have to be led by domain experts
[having both operational and corporate experience] who can handle corporate initiatives which will also
require document development. Excellent communication skills, performance driven, passion and one of the
most skill set is tenacity. In my opinion, OE team should have at least two competency levels higher than the
plant personnel so that appropriate guidance can be provided that will result in buy-in and successful OE
implementation. Managing the OE implementation team effectively is itself a challenge and if not, the whole
intend of this support team will spiral out of control.

OE head Director / Vice President level person with 30+ years experience, preferably with
operations background
Senior Advisor [who has personally & successfully led similar OE operationalization projects, 25 +
years experience]
Domain experts [20+ experience in various OE domains]
Implementation support team [lean Six Sigma support to optimize business processes to deliver
process excellence+ change management advisor who can develop brochures, presentation
templates, etc. + coordinator]

SREEJITH PILLAI

Pillai_sreejith@hotmail.com

Sreejith Pillai / 2015