New measurement assurance system puts controls in place.
Sustainable program generates oil and product savings.
Strategic Intent
Improve margin and operating income by implementing an industry-best measurement assurance system; Provide insights and processes for improving management of oil and product loss across the entire supply chain
Situation
- Largest oil refinery in North America
- $135 billion in revenues with over 20,000 employees
- Oil loss a critical business issue
- Share price hovering near 52-week low
- Increased political and shareholder pressure
Issues and Barriers
- Most employees unaware how oil loss impacts operating income
- Lack of definition and clarity around oil-loss issues contribute to ineffective management of losses and recovery pursuits
- Failed initiatives illuminate difficulties in implementing and sustaining change management solutions
- Two separate, entrenched cultures responsible for lack of unity and efficiency
- Lack of compliance to directives coming from sources lower than executive level
Key Implementations
- Develop an industry-best measurement assurance program for oil custody transfers
- Standardize measurement practices across facilities
- Implement a management reporting system to highlight transactions with a variance greater than the contractually agreed tolerance, enabling prompt corrective action
- Implement the same system to track trends by supplier, refinery and product
- Establish clearly defined roles and responsibilities to ensure effective interfaces between departments
Results
With the issues previously inhibiting the effective management of product custody losses properly addressed, visibility and control of product transfers improve. This measurement assurance program is successful in reducing oil product losses, increasing revenue and improving margin.
- Over $10 million in identified benefits
- New measurement assurance group is established to oversee management of oil product loss
Client Perspective
Brooks really helped us understand how to bring the various departmental processes together to make this effort successful.
—Director, Measurement Assurance
Helping us identify and manage the complex organizational and operational elements of putting this type of management process in place is precisely why we brought in Brooks.
—Chief Operating Officer
