BP Exploration Alaska
Location: Prudhoe Bay
Size: Mulitiple Locations (North Slope Alaska)
BP Exploration Alaska was experiencing an increase in technician downtime as technicians traveled across the Prudhoe Bay oil fields to requisition materials from the warehouses that should have been stored on-site. The on-site inventories did not include the right materials and were replenished on a sporadic schedule. A way needed to be found that would make materials more available to the technicians and allow them to be more productive.
Trommer & Associates implemented a three step plan to reduce technician travel time. The first step was to review the inventory stocked on-site and match the inventories to the demand. We then implemented a replenishment plan that serviced each off-site location on a weekly basis. This included the introduction of a stocked route truck for parts delivery and a RF Scanner to inventory and order parts either from the warehouse or from the truck’s stock. Lastly, we reviewed stock in each of the warehouses and suggested a reallocation of inventory at each facility to more closely match the stocking point with the area of use.
BP Exploration Alaska realized a 64% reduction in trips to the warehouse by technicians. The reallocation of inventory between the warehouses also reduced warehouse deliveries by 20%. Additional benefits include:
Parts truck can meet work crews at special project sites and supply work crews with the necessary equipment and eliminate downtime.
Realignment of the inventory allowed the conversion of one warehouse to a project shop and avoided the costs associated with new construction.
Service of the off-site storage areas increased 90%.