top of page

Optimising MRO Inventory for an Oil Company

​

CHALLENGES

  • Lack of methodology to define inventory parameters 

  • Lack of formal Inventory Management process and roles 

  • Stockout of spare parts causing production loss due to operation shutdown 

  • Overstocked Items (USD 16 Mln) impacting working capital 

  • Inconsistencies on Master Data Records leading to incorrect inventory management decisions

ACTIONS TAKEN

  • Inventory Management and Master Data Management processes, roles and responsibilities defined and formalised 

  • Inventory Management Formal Policy defined 

  • Inventory Management Decision Making Tool developed 

  • Detailed Implementation Plan to operationalise new processes and achieve expected benefits

RESULTS

  • Increase of Service Level for Floating Platform Items – From 21% to 93% in 9 months, raising the total stock value up to USD 8.5 Mln 

  • Identification of inventory surplus – USD 15 Mln for Drilling items (current stock value: USD 50 Mln) and USD 1.2 Mln for Floating Platform items (current stock value: USD 2.2 Mln) 

  • Reduction of ~ USD 25 Mln from working capital for Drilling items in 12 months Implementation plan defined to extend optimisation methodology to Fixed Platforms and Third Parties inventory

bottom of page