Situation
- North America region, the largest component of a global oil field services organization was underperforming to budget and competition
- Subpar utilization of labor causing ballooning Overtime (OT). Rental equipment and higher maintenance costs were causing operational concerns
- Client needed analytical support and an independent review of their current processes
- SLKone was engaged to conduct a review of performance improvement opportunities focused on personnel utilization and profitability, in addition to costs to repair and maintain the client’s rental equipment fleet
Bespoke Solutions
- Conducted data analytics
- Conducted confirmatory interviews with the client team to align on root causes leading to underperformance
- Developed mitigation and prevention solutions to address root causes
- Created reporting capabilities to improve visibility into technician’s timesheets for proactive management of job schedules
- Implemented late rescheduling fees to reverse high reschedule rates causing increased OT
- Redesigned process for equipment rental returns to eliminate late fees
- Identified equipment misuse; led cross-functional initiative to educate internal and external customers and implement misuse fees
Leading With Results
- Improved utilizations by ~8.3% within 4 months yielding an additional $2.1M gross profit per year
- Identified $850k in rental costs for unutilized equipment
- Identified $4.1M in OT costs based on time entries outside of company policy
- Reduced maintenance costs by ~$1.8M per year