Oil & Gas Operational Efficiency

Rationalized facility footprint and labor requirements

Situation:
An Oil & Gas services company wanted to improve overall efficiency through facility and labor cost reductions while improving quality and productivity.

Actions:

  • Developed comprehensive plan to reduce rooflines and space requirements through consolidation and best practice implementation (Lean, 6S, Standard Work, Visual Factory, Optimized OEE, improved warehousing and supply chain operations)
  • Trained client workforce on Lean principles to ensure culture change and sustainability
  • Implemented 6S throughout client operations
  • Developed detailed move plans for facility relocations

Results: Reduced square footage, rooftops, and labor costs. Streamlined supply chain, simplified the organization, and ensured consistency through standard work application.

Kormac Results - Reduced square footage by 53% - Reduced rooftops by 6 - Achieved 21% direct labor cost reduction - Achieved additional 5-10% cost reduction through operational redesign. CS252