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© 2013 Chevron
TTA CY Spool InstallationDMAIC Control Phase Gate
Michael AnthonyMichael JobTTA-MCK
June 2015
© 2014 Chevron
Problem Statement
Over the past 3 years in Cymric, failures in Check Valves at Gauge Setting slots have been leading to pipe wall erosion loss, causing pipes to leak thus creating environmental and safety concerns for operations, while also leading to down oil and maintenance cost, a minimum of about $1500 per failure leak.
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© 2014 Chevron
Project Background
CVX / KSI are required to change out existing check valves to pipe spools on all active Diatomite wells in TTA-MCK.
List was created of existing check valves on gauge setting slots that needed to be changed.
Project handed to KSI Maintenance for installation of pipe spools. CVX required to take well off production for spool installation.
Scheduling work with existing well shutdowns avoids doubling downoil
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© 2014 Chevron 4
IPO
+
Low
0
KSI Crews, API
Spools Complete, Down Oil
Spools
Choke Inspection Queue
OutputsInputs
Process:
Spool Installation
Goal
Down Oil ($/barrel)
Safety (TRIR)
Weather Check Valves: Sell / Return for refurbishment
© 2014 Chevron 5
Current State
Spool installations scheduled for maintenance crews to do individually based off issued work-orders for each well
Well isolated previous to each scheduled installation KSI crew mobilize, issued permits, isolate / loto, and demobilize for
each spool installation
© 2014 Chevron 6
Future State
Spool installation added on to choke / temperature inspections or other Maintenance work occurring on wells that need spool installations
© 2014 Chevron 7
Sustainability / Scalability
Sustainability KSI / CVX continue to identify opportunities to eliminate redundant
work Spool installations continue to be scheduled with other maintenance
work to avoid double isolation and well downtime When Diatomite inactive slots are brought back online check valves
are replaced
Scalability
All CVX operations examine scheduled work and how to best combine existing work to eliminate isolation and well downtime
Combine PM’s, Repairs, Maintenance / Construction Work that have the same isolation points or permits issued
© 2013 Chevron
Financial Verification
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Month1. Spools Installed
2. Capital Avoidance
3. Oil LS Price 4. Barrels Saved 5. Down Oil
Avoidance 6. Valve
Refurbishment / Sale 7. Total Per
Month 8. AFB
November 2 325.60$ 56.15$ 52 2,901.3$ 3,226.9$ 3,283.0$ December 16 2,604.80$ 36.30$ 413 14,984.6$ 17,589.4$ 20,872.5$
January 18 2,930.40$ 29.30$ 465 13,624.5$ 16,554.9$ 37,427.4$ February 14 2,279.20$ 35.67$ 362 12,898.90$ 15,178.1$ 52,605.5$
March 8 1,302.40$ 31.77$ 207 6,565.80$ 7,868.2$ 60,473.7$ April 6 976.80$ 41.50$ 155 6,432.50$ 7,409.3$ 67,883.0$ MayJuneJuly 58,498.20$ 58,498.20$ 126,381.16$
AugustSeptemberOctober
NovemberDecember
January
(8) AFB: Project Total
(1) Spools Installed: Monitored by KSI Superintendent, reported installations based off workorders complete(3) LS Oil Price: Based off CVX LS monthly oil price
(4) Barrels Saved:
Assumptions
(5) Down Oil Avoidance: Oil LS Price x Barrels Saved = Down Oil Avoidance
(7) Total Per Month: Capital Avoidance + Down Oil Avoidance
© 2013 Chevron 9
Non-AFB Verification
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of MeasureHES At risk behaviors Workers' Compensation Costs Hours
Touch Points Loss of ContainmentDistance Driven Compliance RateRisk Exposure TRIRRisk Exposure inference Rate DAFWRTime Between Motor Vehicle Crash First AidsRisk Priority Number Near Misses
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of MeasureQuality Turn over rate Sigma level Percentage
Unplanned Absenteeism Rate First Pass YieldIdeas Generated Mean Time to RepairPersonnel Participating Mean Time Between FailureTool Utilization Preventive MaintenanceStandard Operating Procedures HandoffsCp: Potential Process Capability Decision / Approval PointsCpk: Actual Process Capability Recycles / ReworkReliability StandardizationAvailability Proportion Defective
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of MeasureTime Cycle Time Non-value Added Process Steps Hours
Wait Time Value Added Time Rate
Man Hours Operational Effectiveness Rate1 HR Per Spool
Isolation0 HR Per Spool Isolation
Total # of Check Valves Installed x1 HR
Turnaround Time Production AccelerationOvertime Lead Time Throughput time Process Cycle Effi ciency
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of MeasureCost Implied Future Value Early Payment Discount Hours
Labor Productivity Space UtilizationCost Per Transaction Full Time Equivalent (FTE) Value
AssumptionsTotal of 192 Spools must be replaced 1 HR x 192 Spools
© 2013 Chevron
SJVBU Lean Sigma Project Summary for Adoption Sharing
Before: Check valves are required to
be replaced with spools
Spools installations scheduled and installed
After: Spools installed with other well
and gauge setting shutdowns Spools installed with choke
inspections
1 hr. gain in time required to install spool with process.
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Lessons Learned, Predicted AFB, and Scalability Summary:• Lessons Learned: Communication between foreman and engineers enables combination of
work to avoid additional shutdowns• AFB: $150,000• Scalability: Combining work through-out departments and between foreman
Graphic(s) or Picture(s):
Before
After