Abstract
Production planning and performance management imply diverse challenges, mainly when dealing at corporate level in an integrated operating company. Production forecast considers technical capacities, available capacities, and operationally agreed target capacities. Such complex process may hinder taking advantage of market opportunities at the right time. Proactive scenario management and information visibility across the organization are key for success.
This paper intends to share the lessons learned while rolling out a countrywide integrated capacity model solution supporting corporate production planning and performance management. The rollout processes aimed at digitizing the monthly and yearly production forecasting. In addition, these processes shall enable formulating proactive scenarios for avoiding shortfalls, maximizing gas throughput, production ramp up, and minimizing operating cost from existing capacity.
Abu Dhabi's Integrated Capacity Model is an integrated production planning and optimization system relying on a large-scale subsurface-to-surface integrated asset model system; in this paper, we focus on the incremental progress of the challenges derived from the various rollout efforts. The rollout of such a complex solution relies on basic tenets for managing the change across a large organization.
The first tactic is about continuous stakeholder engagement through value demonstration and capabilities building. Engagement is achieved by continuously providing information about proactive shortfall and opportunity identification within the installed asset capacity. Monthly asset reviews provide the basis for user interaction and initiate the basis for establishing ad-hoc production maximization scenarios. Establishing a data governance and performance metrics were also key for embedding the solution in the business processes.
The solution delivers tangible and intangible value. From the tangible point of view, it contributes to production efficiency gains by compensating during specific proactively identified shortfalls and after-the-fact events. As a result, our solution has been instrumental in deriving cost reduction scenarios and profitability gains due to optimum GOR management. In addition, the system use has reported various intangible gains in terms of better data utilization, enhanced corporate database quality and reduced overall human load in managing production capacity.
The solution described in the paper implements a simpler way the production planning and performance management at corporate level in a large integrated operating company. The in-house developed tool and its implementation is a novel approach in terms of integration, complexity, and practical application to the fields in Abu Dhabi.
Entrepreneurial lean thinking for sustainable business modeling: a workshop design for incumbent firms
