Where does the wrench time go?

Based on recent industry research, average wrench time (time spent adding value to equipment, plant and machinery) in the North Sea oil industry is less than 4 hours per 12-hour working day.

Poor productivity has long been an issue in the oil and gas supply chain. Actual wrench time illustrates the productivity crisis we referenced in our webinar, Thriving in a $50 barrel economy, and reaffirms our belief that rapid changes must be made if the industry is to meet today’s challenges.

The financial ramifications of a recorded drop in productivity from 80% to 60% in the UK Continental Shelf since 2004* could perhaps be absorbed if barrel prices had remained healthy. In today’s market, however, they are completely unsustainable.

In parallel, cost inflation in the North Sea has been averaging over 10% per annum for the previous ten years. This combination of low productivity and rapidly increasing costs is threatening the late life prospects of the North Sea.

So where is the time going? From our research, technicians are regularly shedding hours on the following areas:

Waiting: This stems largely from poor planning and lack of organisation. Many technicians lose time performing unnecessary tasks or waiting for equipment, third party assistance or the completion of reactive maintenance.

Administration: As well as being highly susceptible to error, the need to complete off-shore paperwork manually has consistently been a drain on technician time. Technicians lose time finding supporting information (e.g. User Manuals), recording completed work and equipment information (which then has to be completed for a second time by back-office staff) and communicating with technical experts. It is a hugely inefficient system that accounts for around 10-15% of a typical working day for the majority of technicians.

Meetings: The expansion of a technician’s role and increased regulatory requirements has resulted in time being lost to more meetings. Mobility apps and productivity tools can ensure all information is available for safety briefings and all identified risks are quickly captured and actioned.

While, to an extent, each of these issues has always existed in the industry, it has taken a crisis to trigger the need for response.

The drop in barrel prices means businesses can no longer sweep such productivity problems under the carpet and must embrace innovation that prioritises visibility and connectivity.

Operational mobility can help with each of the above areas by allowing businesses to:

• Plan and deliver all work and equipment information electronically
• Capture all work results and equipment data electronically
• Execute all safety briefings electronically
• Auto-complete timesheets electronically
• Define and capture productivity metrics
• Measure, report and incentivise to meet benchmark productivity