Track: Senior Design Project / Final Year Project (FYP) Presentation Competition

Abstract

Supply chain management is a series of activities for ordering materials or service which appear in transportation, inventory, material handling and information techniques. Oil and Gas companies seek to improve their supply chain because they face problems in cost, duration, flexibility and cooperation between supplier and end user. In addition, drop in oil price is considered as a great challenge for supply chain in Oman Oil and Gas industry. The project aims to improve supply chain of Oil and Gas industry by applying Lean Six Sigma. Therefore, this project is important for Oil and Gas companies because there are few reported researches in this aspect.

The methodology of our project includes literature review, data collection, data analysis, and suggested solution. Literature review is based on understanding supply chain problems and studying the methods of Lean and Six Sigma. To implement the project, data were collected from supply chain department at Petrogas Rima LLC regarding duration of contracting process activities. Data was analysed by the first three stages of DMAIC technique; define, measure and analyze. In define stage, the major problem of contracting process, wastes, value-added and non-value added activities were identified using SIPOC (Process from supplier to customer), process flow and value stream mapping. Some of the non-value-added activities are considered as enabling activities that cannot be ignored or removed but it can be improved. In measure stage, the highest frequency waste was determined using Pareto chart and the longest activities duration were defined using Gantt chart. It was found that, the waiting time was the highest repetitive generated waste. Tender period and technical evaluation were the longest activity duration of contacting process. Standardize the strategy, implementing simulation model of contracting process to reduce non-value added activities using contracting software system instead of manual contracting process were the most suggested solutions.