Discovering supply chain benefits, from mill and factory to customer
The oil and gas industry has seen a boom in documentation requirements during the last few years. And we found ourselves head to head with this trend when supplying to a major end-user with operations in the North Sea. Our client, a global energy company, required 44 tagged instrument assemblies for a thermowell project. The original project scope required 72 documents, which would involve up to 6 hours’ engineering review time per document. This time equated to a cost of more than £19,000, with documentation and QA costs totaling around 28% of overall project costs. This was the perfect opportunity to demonstrate JWF’s added value by reviewing documentation, cutting related costs and passing this saving on to our client.
To reduce costs, we decided to challenge the traditional way of doing things. Through a combination of our experience and common sense approach to document management, we standardised and reduced our client’s project documentation count from 72 to 44. Our reduction in documentation created a consequent reduction in QA and administration review with additional supply chain benefits. We were also able to deliver Wake Frequency Calculations and GA drawings earlier in the process and created a standardisation for thermowell design, GA templates and compliant PQR/WPS documents.
direct cost savings
cost savings on engineering review
By taking a broad view of the project’s documentation needs, asking the right questions and reducing the number of documents, we saved more than £11,000 for our client. Savings included a 61% reduction in engineering review time and a 12% reduction in direct costs across the project. Now that JWF has standardised thermowell documentation, we can pass on the benefits to future clients, potentially saving considerable expenditure across the North Sea.
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