The results of the activities for 2021 have been summed up in the CODS of KMG Engineering LLP.

Mr. Pavel Tsypin, the Head of the Center for Organizational Development and Standardization of the KazNIPImunaigas Branch, has shared with the colleagues the results of the work done.

– Pavel Yevgeniyevich, what Projects did the employees of the Center work on last year? Where and how were the lean production methods applied?

– As is known, at the end of 2020, as part of the KazNIPImunaigas Branch of KMG Engineering LLP, the Center for Organizational Development and Standardization was established, which served as the start for the implementation at a professional level of a new line of activity to provide consulting services and support the process of development of the production systems of the subsidiaries and affiliates of NC KazMunayGas JSC, using the methods and tools of the lean production.

The formation of the Center has taken place during 2021. We have successfully implemented the Project the “Lean production in Oil Services Company LLP”.

Within the frames of this Project, the experienced experts acted as business trainers, conducted training, consulted the employees of Oil Services Company LLP on the implementation of the transformation projects, aimed at increasing the operational efficiency. As a result, 20 transformation projects were implemented, the total economic effect made up KZT 240 million, the net present value (NPV) made up KZT 657 million, and the payback period was only 9 months. As a result of the implemented Project, Oil Services Company LLP acquired a new system (a business process) for the continuous improvement of its production system. An organizational development service has been created at Oil Services Company LLP, which will support continuous improvements in the Company on an ongoing basis, using the methodological foundations and knowledge, transferred from the specialists of the Center for Organizational Development and Standardization of the KazNIPImunaigas Branch of KMG Engineering LLP. Against the background of the obtained positive results, the General Director of Oil Services Company” LLP, Mr.Tamenov N.Zh., has expressed his gratitude. in an official letter sent to the General Director (the Chairman of the Management Board) of KMG Engineering LLP, Khassanov B.K.               

– And which of the other KMG subsidiaries and affiliates use this system?

– Similar work of advising and supporting the development of the production system, using the methods and tools of the lean production continues at Ozenmunaigas JSC. Thus, in 2021, a large-scale work was carried out to train the OMG employees and plunge them in the lean production methodology, numerous training seminars were held, more than 150 employees were covered, including the workers, engineering and technical personnel, and managers. The first transformation project for the division of labor of the oil and gas production operators was launched, which provided for the standardization of the work for maintaining the oilfield equipment, delineating the areas of responsibility and improving the quality of the equipment maintenance and current repairs.

– Can you tell us more about the Virtual Assistant Project?

– 2021 is a successful year for the Center for Organizational Development and Standardization, since we have managed to launch a new project to create a software module, the “Virtual Assistant” based on the idea, put forward for the digitalization of the production processes at the operational level. This software module is created by the order of NC KazMunayGas JSC as part of the creation of the “ABAI” corporate information system. The Virtual Assistant is a multi-user specialized software application, which allows for the communication between the workshop workers, provides access to the production and regulatory and technical information, allows for the prompt input of the production information on the status and operation parameters of the equipment, oil production facilities. The virtual assistant is supposed to be developed both to work on a personal computer and on a smartphone with the Android operating system. In November 2021, the Project team at the Center for Organizational Development and Standardization under KazNIPImunaigas of KMG Engineering LLP has started developing the regulatory and technical documentation and requirements for programming the module. 

– Pavel Evgeniyevich, how is the standardization process carried out and what has been done in this direction?

– As is known, the main goal of the standardization activity is to maintain and develop the management systems based on the use of the unified (uniform) norms and standards.

In 2021, we have fully completed all the work, which began in July 2019 on the development of the time standards, consumption rates of the material, fuel and energy resources, elemental estimated standards and prices for the well construction. For the first time in the history of NC KazMunayGas JSC, its own up-to-date regulatory framework has been created, which makes it possible to make objective calculations of the well construction costs, based on the resource calculation method and in the current prices and tariffs. At present, when forming estimates for the well construction, as part of the formation of the design estimates, the base-index method and estimated norms, developed in 1984, are used without taking into account the existing level of development in the field of engineering and technology, and labor productivity in the field of well construction. Based on the results of the development of the regulatory documents, the four Copyright Certificates have been obtained for entering the information into the state register of the rights to the objects, protected by the copyright, issued by the National Institute of Intellectual Property of the Ministry of Justice of the Republic of Kazakhstan. Based on the developed estimate-normative basis, the calculations of the construction cost of 58 wells, drilled by Oil Services Company LLP for Mangistaumunaigas JSC have been made in the testing mode, a comparative analysis of the duration and cost of the constructed wells has been carried out.

The express analysis of the number of the employees of subsidiaries and affiliates (the subsoil users) of NC KazMunayGas JSC is carried out on a regular basis. In 2021, the express analysis of the current headcount has been carried out for 5 companies of NC KazMunayGas JSC, and the appropriate recommendations have been issued to improve the organizational structure and staffing schedule.  

In general, summing up the conversation, I would like to emphasize that due to the fact that all work in 2021 has been completed on time and at a high level of quality, despite the existing sanitary and epidemiological restrictions, the volume of work to be done in 2022 has been formed by 20% more. This indicator demonstrates the opportunities for the development and expansion of the Center for Organizational Development and Standardization. I would like to take this opportunity to thank, first of all, directly the team members of the “Lean Production at OSC” Project, since the Project has been successfully completed and a good effect has been obtained, as well as all the employees of the Center without exception for the well done job, and to wish them further development and achievements of higher performance results!

1.       The lean production at OSC:

Fig. 1 The process of implementing the 5-point tool is being carried out (1 Sorting. 2 Keeping clean. 3 Compliance with order. 4 Standardization. 5 Improvement).                                                                                           All materials and tools of the metalwork premises are sorted and distributed to the established places, at the same time their need and storage volume are assessed, excess stocks are placed in the “Quarantine Zone”.

Fig. 2 The Project office. Under the guidance of KMG Engineering experts (Sergei Osminin, on the right), the transformation leaders – the OSC employees, carry out value stream mapping, develop measures to improve the operational efficiency of the Company’s business processes.

Fig. 3 The Virtual Assistant. A prototype mobile version of the operator’s digital assistant for oil and gas production. The application allows you to receive step-by-step instructions for servicing the oilfield equipment units, using a video camera and a built-in microphone to record deviations in the equipment operation, and promptly submit the requests for the repair and restoration work.

 The participants of the “Lean Production at OSC” Project 

Tsypin Pavel – the Head of the CODS (the Project Coordinator)

Osminin Sergei – the Chief Expert (the Project Manager)

Kadralin Maksat – the Project Expert (the Project Co-Manager)

Maktai Didar – the Chief Expert (trainings and seminars).

Shakhatova Aliya – Senior Engineer (The Project document support).

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