OJSC ARCTIGAZ is an oil and gas company that holds licenses for exploration and production of fields in the Samburgsky license area and for geological exploration and production of hydrocarbons within the Evo-Yakhinsky, Yaro-Yakhinsky and North-Chaselsky license areas (Russia). ARCTIGAZ's proven reserves according to PRMS standards as of December 31, 2014 amount to 695 billion cubic meters. m of natural gas and 127 million tons of liquid hydrocarbons.
We achieved an 11% reduction in excess inventory and a significant 21% decrease in goods delivery times.
The procurement department of one of the company's branches was faced with the goal of optimizing the Supply Chain Management processes to achieve significant cost savings while maintaining the rhythm and quality of deliveries.
The assessment revealed that approximately 30% of working hours were unproductive, excessive inventory tied up considerable working capital, and inaccurate calculation of delivery schedules intermittently resulted in shortages of essential components in warehouses, leading to production losses.
Systematic observation and statistical data collection on employee activities were conducted. Subsequently, employing a methodology for evaluating functional efficiency and process costs, we identified optimal workflow maps and sequences, determined the optimal staffing levels, and estimated process costs based on overall expenses.
This process facilitated the refinement of operational procedures accordingly.
We successfully identified and addressed the root causes of operational inefficiencies by optimizing planning and delivery processes and refining procedures to stock assessment. Utilizing a specialized methodology, we accurately determined the optimal staffing levels required.
As a result of these initiatives, we achieved an 11% reduction in excess inventory and a significant 21% decrease in goods delivery times.
One of the key outcomes of our revamped workflows is their improved predictability. Managers now have access to precise metrics and standards for each operational stage, enabling objective evaluations of employee performance and supporting constructive feedback loops. This systematic approach underscores our commitment to operational excellence, ensuring streamlined processes that align with our strategic objectives and enhance overall effectiveness.
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