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The People Formula

The target condition for recruiting and hiring could include things like cycle time, quality of candidates, cost of recruiting, offer acceptance rate, and overall employee turnover. Once the target conditions are established, the process can be managed and improved through kaizen to continually improve its contribution to the organization, as a whole. Continue reading

Lean in Oil & Gas – Part Two

One thing that becomes clearly evident during the commissioning process is that many problems that surface during handover actually result from work done – or not done – earlier in the development process. An appreciation for systems thinking starts to take hold and people begin to focus on improving the upstream engineering, design, and construction processes. Continue reading

Lean in Oil & Gas – Part One

In an oil and gas operation, this approach can apply to an individual process, an asset, or the organization as-a-whole. To continue to improve and sustain the gains, however, it is critical to keep in mind that the ultimate objective is absolute perfection (including perfect safety, no spills, no delays, etc.). Whether or not achieving absolute perfection is possible does not matter. Everybody in the organization needs to feel responsible for making problems – or examples of non-perfection – visible, and working to continually close the gaps. When looked at in this way, it becomes clear that lean involves looking at everything a business does as a continual experiment in the pursuit of perfection. Whenever a problem occurs, the experiment has failed and change is needed, and the result is a tighter, more predictable, and more robust process. Continue reading