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Data-Driven Operational Improvements
- 1. 0 5 10 15 20 25 Efficiency & NPT Graphs Posted Data Driven Pre- shift Meetings Blender Reliability Focus Established Industry Math Stand-up Speak-up Post Well Reviews Maintenance Program Improvement ABC’s of Behavior Supervisor Swap-out Small Works Teams Accelerating & Sustaining Operational Excellence NPT Focus Established ROI NUMBERS INTANGIBLES UNEXPECTED Safety Tracker Trust Tools Traction Our 3-phase approach 19% NPT Reduction = $63 million annualized win! Teamwork. Pride. Transformed from lowest to highest revenue fleet. Most-improved safety record in the district Client’s highlights Significant Coaching Events NPT as % of Total Time Client: North American Energy Services
- 2. 0 200 400 600 800 1000 1200 1400 1600 Reliability Measure Posted & Communicated Change over communication Standardized & Documented T-Valve Innovation Blender Maintenance Sheets Small Work Teams Stand up Accountability Established Blender Reliability Focus • 96% Reduction in Blender Down Time Annualized = $10,000,000 win! • Safety hazard minimized thorugh T-Valve innovation • Improved job quality and client customer relations Blender Down Time in Minutes Equipment readiness plan Industry Math TRUST TRACTIONTOOLS
- 3. 0 200 400 600 800 1000 1200 1400 1600 Dec Jan Feb March April Reliability Measure Posted & Change over communication Standardized & Documented T-Valve Innovation Blender Maintenance Small Work Teams Equipment readiness plan Established Blender Reliability • 96% Reduction in Blender Down Time Annualized = $10,000,000 win! • Safety hazard minimized thorugh T-Valve innovation • Improved job quality and client customer relations Blender Down Time in Minutes
- 5. 50 55 60 65 70 75 80 85 90 95 100 Pumping Efficiency TRACTIONTOOLS • Increased Pumping Efficiency 25% = $36 million annualized win! • Decreased labor costs 28% with 0 impact to service quality • Achieved best safety record in district > 320 days incident free Industry MathProcess Improvement Work Teams Million Dollar Road Map Intro to active supervision Established PE Focus Pre-job planning measure twice, cut once!Big ticket million dollar ideas researched/tested & rolled out across all fleets High impact low cost opportunities identified & executed Managers become leaders by modeling the right behaviors & developing their people Young operators with something to prove set ambitious goals TRUST
- 6. $4,000.00 $24,000.00 $44,000.00 $64,000.00 $84,000.00 $104,000.00 $124,000.00 $144,000.00 $164,000.00 $184,000.00 Trucking Standby Cost in $ per Month • Saved $1.5 million in Stand By charges • Safer work site with less backlog of trucks on the pad • Happy Vendors = Consistent Sand Supply Industry Math Intro to active supervision Established PE Focus
Editor's Notes
- $900,000 in missed revenue in December *1500 minutes X $600 per min* $42,000 in missed revenue in April *70 minutes X $600 per min* $858,000 Monthly Savings X 12 months = $10,296,000
- At the hydration/blender connect there was usually a mess to clean up while swapping lines. The guys came up with a t-valve to put there to help with the mess. The valve was tested and proven not only to reduce the mess, but also created an efficient way to control/change flow as needed New T-valve minimized NPT, doesn’t take 2 operators to swap out lines frees up man power etc.
- Increased average Pumping Efficiency of 25% *Potential increased capacity of 26 stages/month equal to $36 million per year! August 2014 107 stages completed at average $116,000/stage 107 x 25% = 26 stages per month x 12 months = 312 stages per year Best safety record of any WTX fleet at > 320 days incident free C&J WTX August 2014-April 2015 Young fleet, no supervisor or manager older than 30! Told they were the best of the best and expectations were high Million Dollar idea: Switching fluid end lube system from red grease to rock oil = less packing blown & millions in savings When they realized safety was tied to performance it was pushed to the forefront and helped them achieve best record in the district
- This data comes from the last WTX Business Review with Ron 2013