The transformation of the operations management system (OMS) is a key programme to improve efficiency and achieve the goals set out in our 2030 Strategy. Its purpose is to maximise the company’s operational efficiency by enabling reliable and safe operation and engaging all employees in a culture of continuous improvement.
Key focus areas of operational transformation
A new approach to goal setting
The shift in goal setting boils down to the fact that, rather than basing plans on previous achievements, the company will base its planning on potential, i.e. the limit of available resources. This will enable the company to:
- define realistic expectations;
- determine how ambitious its plans can be; and
- prioritise the efforts of the whole organisation.
The main tool used for this purpose is comprehensive potential assessment (CPA). This is an example of a cross-functional effort. Any potential assessment should consider the specific aspects of each process and accurately estimate its potential for optimisation, thereby identifying an achievable target supported by adequate resources over the foreseeable future. As at year-end 2020, comprehensive potential assessment had been carried out at key assets accounting for over 75% of Gazprom Neft Group EBITDA.
Operational efficiency potential improvement has been made possible by deep and comprehensive examination of internal optimisation capabilities and international best practices for the entire range of production processes. The definition of achievable level also includes the expected impacts of the implementation and systematic use of performance improvement tools (OMS tools).
Consistent and systematic OMS tool development has been rolled out to 25 Group subsidiaries. The total impact of initiatives identified using the OMS tools in 2020 exceeded ₽12.7 billion.
Fostering an environment of continuous improvement
To foster the target production culture in 2020, the operational transformation programme’s efforts were focused on:
- increasing engagement through corporate leadership model tools;
- using routine management practices aimed at changing the existing leadership culture by developing effective leadership skills; and
- improving the infrastructure handling ideas and problems across all levels of the company.
Gazprom Neft intends to have all its managers implement modern routine management practices. Established algorithms and principles of behaviour, which describe routine actions, such as meetings, feedback, performance dialogues, visual management and inspection rounds, build trust between employees and improve their willingness to solve any operational problems.
Best practice codification and rollout were also ongoing. Although the format of the traditional Successful Practices Roadshow was changed due to the pandemic, the number of successful practices selected and refined to comply with universal requirements grew to 156 in 2020. Based on previously selected successful practices, 34 practices were also rolled out to other subsidiaries, with 15 practices implemented outside their original implementation division.
Implementation of the operational reliability management model
- Approval was granted for the Production Asset Reliability Management – Downstream processes.
- Process Descriptions have been prepared and approved.
- Standardisation of downstream reliability management processes is ongoing.
- Development of a maintenance and repair management system based on SAP PM and 1C:EAM is ongoing.
- Development of a system that can provide predictive analysis of dynamic equipment condition and comprehensive diagnostics of heat exchangers is underway.
- A single end-to-end maintenance management business process has been developed, approved and is being implemented in the Upstream Division.
Developing the target organisational structure:
- Production control centres (PCC) were further developed at refineries.
- Role and responsibility matrices for production asset reliability management have been developed and implemented.
- The organisational and functional structure of the Production Support Centre, a single cross-functional unit for subsidiaries, has been developed in the Upstream Division.
- A pilot in-house team of coaches to build operational reliability capabilities has been selected and trained in practical skills.
- The Production Efficiency Department of the Corporate University has developed and delivers courses on RCM Analysis Practice and RCFA Analysis Practice.
Operational and engineering staff have been equipped with the following reliability management tools:
- Walkaround inspection maps have been developed and are in use.
- Standard operating procedures have been developed.
- The shift handover procedure has been updated.
- Equipment criticality analysis and ranking, maintenance and condition management strategy development are ongoing
Key performance indicator management:
- The analytics (KPI) reporting system has been upgraded.
- Reliability KPI (including availability) calculation has been automated.
- The functionality of production performance management information systems has been improved.
|Element 1||Leadership and culture||Ensuring that managers play a leading role in creating an engaging environment to enable the company to achieve its strategic goals|
|Element 2||Reliability management||Achieving the target level of production asset safety and cost-effectiveness throughout the entire life cycle through targeted risk-based maintenance, and reasonable extension of service life and technical equipment durability|
|Element 3||Process flow management||Ensuring that production processes are safe, efficient and sustainable|
|Element 4||Organisational development and competency management||Ensuring that organisational resources are effectively secured and allocated; assigning responsibility and developing staff competencies|
|Element 5||Operational risk management||Ensuring that a uniform, risk-based approach to operations management has been adopted, in order to improve operational efficiency by minimising unplanned losses from operational risk through actions to reduce their likelihood and mitigate their consequences|
|Element 6||Contractor and supplier management||Ensuring the efficiency and safety of work performed/services provided by contractors, and the efficiency of materials and equipment supplied|
|Element 7||Project management||Ensuring that project goals are achieved efficiently|
|Element 8||Data, information and document management||Making the best management decisions based on data, information, and documentation|
|Element 9||Environmental and social impact management||Preventing unacceptable impacts on people and the environment|
|Element 10||Change management||Ensuring that changes within the company are efficient and maintain operational continuity|
|Element 11||Stakeholder management||Identifying stakeholders in operations, communicating with them and building constructive stakeholder relationships as part of operations|
|Element 12||Performance management and continuous improvement||Improving operational efficiency by using continuous-improvement tools|