Lean Sigma DMAIC Methodology to Improve the Well Service Cycle Time on Oil Wells Produced using Sucker Rod Pumps to Minimize Lost Production Opportunities

Several factors that cause oil wells to go off-production can be due to artificial lift failure such as leaking tubing, downhole pump problems, paraffin or scale that inhibits fluid flow, parted sucker rods, etc. To revive wells that are off-production, well service work using a rig is required. Pendopo is one of Indonesia’s oldest oil and gas fields, discovered in 1912. From 2021 to 2023, 439 well service operations led to a loss of 124,983.67 barrels of oil production potential, equating to a revenue loss of USD 10,390,215.13. One of the issues contributing to high Lost Production Opportunities (LPO) is waiting time. Wells when experiencing problems cannot be immediately serviced using rigs because of the limited number of rigs and the length of the service cycle time in each well. This study aims to propose a strategy to improve the well service business process by shortening well service cycle time and reducing the waiting time for wells that are off-production to be reactivated. To achieve this goal, the Lean Sigma DMAIC method is used as a framework to define and measure the problem, identify the root cause of the problem, find alternative solutions, develop an improvement plan, and control the implementation. The analysis results indicate that well service operations can be simplified by combining several steps through the application of various innovations. Simplifying work steps can reduce the operation cycle time by about 20 hours per well or 16.5% of the current standard cycle time for well service using rigs. The opportunity to utilize a crane to replace a rig on certain jobs that meet the specified criteria has the potential to cut time significantly. This method might result in a cycle time reduction of 110 hours per well or 89% of the current standard cycle time with rig-based. The strategy of combining work process simplification and the use of crane-based as an alternative for well service can provide a shortening of cycle time which has an impact on reducing waiting time, reducing LPO, and will increase the company’s revenue.

Introduction

Business Issue

Pendopo is one of Indonesia’s oldest oil and gas fields, discovered in 1912. As a mature field whose oil wells can no longer flow naturally, Pendopo field uses several types of artificial lifts to produce the oil. Artificial lifts are prone to problems that could lead to failure, which results in off-production wells. Some factors that cause wells to go off-production can be due to leaking tubing, downhole pump problems, paraffin or scale that inhibits fluid flow, parted sucker rods, etc.

Well service work using a rig is required to revive wells that are off-production. Annually, there are more than 100 well service operations conducted each year in the Pendopo field. Six rigs are utilized to perform workover and well service operations.

Waiting time is the duration from when the well stops producing (off) until it can be produced again. Waiting time includes the time the well waits for the rig due to a priority-based queue and the time the well is serviced using the rig.

Lost Production Opportunities (LPO) refer to undesired production losses due to operational reasons or non-technical issues. Pendopo field is experiencing problems with prolonged waiting times for wells that require rigs to be produced again through well servicing operations. According to data from 2021 to 2023, 439 well service operations resulted in a loss of 124,983.67 barrels of oil production potential (LPO), equating to a revenue loss of USD 10,390,215.13.

Objectives

The objectives of this study are to analyse and determine the aspects requiring improvement in the well servicing operations process, find methods to shorten well service cycle time to reduce waiting times and propose a strategy to improve the well service business process to reduce the waiting time for wells that are off production using DMAIC framework.

Research Scope and Limitation

The research and implementation are limited to Pendopo oil and gas field and focus on the tasks and responsibilities under the control of the Well Services Department in Pendopo field.

Literature Review

Lean Six Sigma is an approach to quality, productivity, and profitability. One of the Lean Six Sigma improvement methods is called DMAIC—Define, Measure, Analyze, Improve, and Control. The application of DMAIC, which is one of the methods of quality improvement used in the Six Sigma concept, can increase the effectiveness while adequately reacting to the appearing problems (Smetkowskaet al., 2018). The application of Lean Sigma in the oil and gas industry enhances quality, operational efficiency, and environmental outcomes (Eteyen, 2024). Lean Six Sigma incorporates Lean’s principles of speed and immediate action into the Six Sigma improvement process itself, increasing the velocity of improvement projects and hence results (George, 2023). These concepts—proven in other industries—are being adapted by several operators in the oil industry, while building on the existing petroleum industry’s knowledge of quality and statistics (Buell & Turnipseed, 2018).

Simple Multi-Attribute Rating Technique is one of the multi-criteria decision-making (MCDM) methods that has been widely applied because of its relative simplicity and transparency. The SMART approach is advantageous because it simplifies the decision-making process for customers by providing answers to simple understandable questions. Transparency is essential because it increases decision-makers’ trust in the method’s outcomes by making the underlying reasoning easier to understand (Taherdoost & Mohebi, 2024).

The model used in SMART has several stages as follows:

1. Identify the decision makers

2. Identify the problem and alternatives

3. Determine the relevant attribute and value factors

4. Assess the performance of the alternatives on each attribute. Value Function is used to transfer actual value to the order that is more appropriate to decision maker’s preference

Formula for a benefit attribute, where higher is better:

$$\begin{array}{r}V\left(x\right)=\frac{x-x_{min}}{x_{max}-x_{min}}\end{array}$$

Formula for attribute when lower values are better:

$$\begin{array}{r}V\left(x\right)=\frac{x_{max}-x}{x_{max}-x_{min}}\end{array}$$

where

x — value of attribute

$x_{min}$ — minimum value of attribute

$x_{max}$ — maximum value of attribute

5. Determine a weight for each attribute

6. For each alternative, take a weighted average of the values assigned to that alternative

7. Make a provisional decision

In this research, the SMART method is used to select the best solution among several alternatives obtained to resolve the root cause of the problem by considering the costs and benefits of each alternative.

Methodology

Research Design

This study was conducted with a combination of quantitative and qualitative research which is described in Fig. 1.

Fig. 1. Research design.

Data Collection Method

The quantitative data are used to identify symptoms and problems related to the well service business process. These data are essential for the Define, Measure, and Analyze stages in this research design. The qualitative data obtained from brainstorming, survey, and Focus Group Discussion (FGD) are required for the Analyze and Improve stages. Brainstorming involved parties in the well service work process who have sufficient knowledge, understanding, and experience. FGD is a valuable method in research for generating qualitative insights through collective discussions to explore ideas and understand complex issues that benefit from diverse perspectives. FGD is conducted by involving concerned stakeholders who can contribute and provide input to problem-solving.

Data Analysis

The collected data are analysed to obtain insights that will help to achieve research objectives. The method used is to combine quantitative and qualitative approaches.

Process Mapping (BPMN)

By reviewing the Working Guidelines and Standard Operating Procedure documents owned by the company, it will be possible to understand the current well services work business process. BPMN is used to evaluate current business processes in the Define stage and suggest an improvement of business process in the Improve stage.

Descriptive Statistics

Workover and well service reports can show statistics on the number of well service jobs during 2021–2023. The Rig daily operations report provides statistical data on cycle time and time distributions of well service jobs for each well during 2021–2023.

Root Cause Analysis (RCA)

The problem is searched for its root cause using the fishbone diagram tool or cause and effect analysis. The Root Cause Analysis is important to use in the Analyze stage of DMAIC.

Failure Mode and Effects Analysis (FMEA)

FMEA is a method to identify potential failures in a process. In this analysis, an assessment is carried out to determine the level of risk or impact of a cause of a problem or issue from the aspects of severity, occurrence, and detection. The issue with the highest Risk Priority Number (RPN) will be the priority that must be taken action for improvement.

Pareto Analysis

This method helps focus on the most critical areas for improvement. Pareto Analysis is beneficial for use in the Define, Measure, or Analyze stages of DMAIC.

Results and Discussion

Define

When there is a problem with the artificial lift that causes the well to go off-production, there will be a loss of production until the well can be produced again. The Well Service Department is responsible for executing well service operations. The well service program using a rig consists of several steps as in Fig. 2.

Fig. 2. Well service work process for SRP wells.

Table I shows that statistically, the number of well services in Sucker Rod Pump (SRP) wells is very high compared to Electric Submersible Pump (ESP) wells. SRP wells are showing a very high well service frequency every year. From 2021 to 2023, 439 well service operations led to a loss of 124,983.67 barrels of oil production potential, equating to a revenue loss of USD 10,390,215.13 as shown in Table II.

Table I. Well Service Statistics from 2021 to 2023 in Pendopo Field

Artificial lift	Detailed issues	Year			Total	Percentage
		2021	2022	2023
Sucker Rod Pump (SRP)	Tubing leak	44	39	37	120	28%
	SRP rod parted & worn out	25	21	18	64	15%
	SRP downhole problem	18	12	18	48	11%
	SRP stuck	14	4	2	20	5%
	Scale, paraffin, sand	13	20	9	42	10%
	Others	7	9	12	28	7%
Electric Submersible Pump (ESP)	Tubing leak	8	6	5	19	4%
	ESP downhole problem	26	26	17	69	16%
	Scale, paraffin, sand	2	3	2	7	2%
	Others	5	2	5	12	3%
Total		162	142	125	429	100%

Table II. LPO Caused by Waiting on Well Services

	Well types	Year
		2021	2022	2023	Total
Number of Well Services	SRP	121	105	96	322
	ESP	41	37	29	107
	Others	6	2	2	10
Lost Production Opportunities (barrels)	SRP	31,031.2	29,314.6	22,627.8	82,973.57
	ESP	21,046.7	12,577.1	8,304.9	41,928.70
	Others	–	81.4	–	81.40
Revenue Loss (USD)	SRP	2,352,016.7	2,751,396.8	1,747,619.9	6,851,033.41
	ESP	1,690,878.3	1,213,450.4	628,631.7	3,532,960.32
	Others	–	6,221.4	–	6,221.40

Measure

In this Measure phase, the main problem that will be the focus to be solved is determined using the Pareto Chart tool. Based on the impact on revenue loss, it can also be seen in the Pareto chart as in Fig. 3, which shows that SRP wells that are off and require well service result in the highest LPO, thus having the most dominant impact on revenue loss compared to ESP, injector, or natural flow wells.

Fig. 3. Pareto chart of loss revenue.

Fig. 3 shows that well service on the SRP well has a dominant impact on the Pendopo field problem, therefore in this study, the well service work process in SRP wells is chosen as the main focus for improvement.

The Rig-based well service cycle time is generally categorized into two phases, the moving phase and the operating phase. The moving phase is the phase where the rig starts moving and moving from one well to another followed by setup or rig up until the rig is declared ready to operate. This phase frequently encounters technical or non-technical obstacles. Non-technical constraints are usually more dominant in this phase. These non-technical constraints include rainy weather, social factors, long distances between wells, damaged roads, floods, damaged bridges, prohibitions on moving at night, and so on. These technical and non-technical problems might extend moving days, resulting in deviations between the time standards in the rig contract and the actual time in the field. The Well Services Department relies heavily on other departments during this moving phase, particularly the RAM Department for site access preparation and the Relations Department to address social concerns from local residents.

The operation phase is a continuation phase of the moving phase which starts from the bleed-off pressure and well killing activity until the completion of production observation. The obstacles often faced in this phase are more dominant in technical aspects such as fishing operations, loss circulation, sucker rod parted, tubing string stuck, and so on. These issues are manageable and can be addressed by the Well Services Department independently. Based on the conditions above, this study will focus on solving well services problems in the operation phase where the Well Services department functions as a problem owner and also as a problem analyst.

Table III indicates that there is a deviation in both the moving phase and the well service operation phase under normal conditions with no sucker rod breakage. The average deviation of moving days is 19.5 hours per well, while the average deviation of operating days is 25.15 hours per well. Table IV shows that there is a deviation in both the moving phase and the well service operation phase on wells with broken sucker rod problems. The average deviation of moving days is 24.57 hours per well, while the average deviation of operating days is 43.89 hours per well.

Table III. Deviation of Well Service Cycle Time in Normal SRP Wells

Area (Structure)	Well Depth (m)	Average Effective Cycle Time (hours)						Total
		Moving phase			Operation phase
		Actual	Standard	Deviation	Actual	Standard	Deviation
JRK	300–600	59.06	48	11.06	68.26	64.00	4.26	127.32
TAP	600–1000	82.25	48	34.25	125.54	73.00	52.54	207.79
BKB	600–1000	69.70	48	21.70	97.32	73.00	24.32	167.03
SPA	1800–2500	59.00	48	11.00	121.50	102.00	19.50	180.50

Table IV. Deviation of Well Service Cycle Time in SRP Wells with Parted Problem

Area (Structure)	Well depth (m)	Average effective cycle time (hours)						Total
		Moving phase			Operation phase
		Actual	Standard	Deviation	Actual	Standard	Deviation
JRK	300–600	48.67	48	0.67	62.67	67.00	−4.33	111.33
TAP	600–1000	83.83	48	35.83	129.17	76.00	53.17	213.00
BKB	600–1000	89.29	48	41.29	151.71	76.00	75.71	241.00
SPA	1800–2500	68.50	48	20.50	156.00	105.00	51.00	224.50

Based on the impact on loss revenue and time deviation from the standard, the main focus of this research is improving the sucker rod pump well service work process by reducing cycle time in the operation phase.

Analyze

In the Pendopo field, the most widely used artificial lift type is the Sucker Rod Pump (SRP), this is because SRP has numerous advantages. However, SRP also has various weaknesses in its operation that lead to the risk of stopping production at any time. Operational failures are extremely common in beam rod pumping units (Fakheret al., 2021). A properly designed rod string should provide failure-free pumping operations for an extended period of time (Takacs, 2015).

Brainstorming was conducted through interviews and questionnaires involving selected personnel based on their positions, experience, and knowledge in well-service operations. The respondents comprise nine employees, including well service engineers, supervisors, rig superintendents, and an assistant manager. Discussions and interviews were focused on finding factors causing problems from the aspects of Machine, Method, Material, Environment, and Man. Cause-and-effect diagrams. Also called fishbone diagrams, they show hypothesized relationships between potential causes and the problem under study. Once the C&E diagram is constructed, the analysis would proceed to find out which of the potential causes were in fact contributing to the problem (Jacobs & Chase, 2018).

After the root causes are obtained using a fishbone diagram as shown in Fig. 4, the next step is to weigh them using FMEA (Failure Mode and Effects Analysis) as shown in Table V and Fig. 5. This method is used to understand the potential for failure and the impact of failure on the system or operating process. This method assesses risk based on the identified failure modes, their impacts, and causes, and prioritizes root causes requiring improvement or corrective action.

Fig. 4. Root cause analysis using Fishbone diagram.

Table V. Failure Mode Effect Analysis

Factor	Root causes	Failure mode	S	O	D	RPN
Method	Wells with parted sucker rod problems require the pump pulled out for troubleshooting.	Too many steps in the well service program	9	9	7	567
	Additional step: tubing pressure testing for quality control
Machine	Rigs have limitations in lifting or pulling speed.	Well service operations using rigs cannot be executed rapidly	9	9	6	486
Material	Budget limitations for the use of new materials	Sucker rod and tubing material failure often occurs	5	7	6	210
Man	Inadequate training or benchmarking	Work as usual, with no innovation or improvement	4	4	6	96
Environment	Well sites located near the residential area	Work temporarily stopped due to environmental factors	4	4	2	32
	Rainy season
	Bad weather condition

Fig. 5. Pareto chart of Risk Priority Number (RPN).

A Focus Group Discussion (FGD) was conducted involving Subject Matter Experts (SME) and decision makers related to the well service process business from various levels—the field, zone, regional, and sub-holding—such as Drilling & Well Intervention Senior Manager, Well Intervention Manager, Field Manager, Well Service Assistant Manager, and Senior Engineers. The objectives of FGD are to identify possible alternative solutions to the dominant root causes and select the best option to address the problems. Table VI shows alternative solutions resulting from the Focus Group Discussion.

Table VI. Alternative Solutions

Factor	Root causes	Impact	Alternative solution 1	Alternative solution 2	Alternative solution 3
Method	Wells with parted sucker rod problems must still have the pump pulled out to be put back into production.	There are too many steps in the well service program	Add 1 rental rig unit to increase the number of servers	Simplify the well servicing operation process while maintaining the existing number of rigs.	Simplify the well servicing operation process and utilize equipment other than rigs.
	Additional step: tubing pressure testing for quality control
Machine	Rigs have limitations in the number and speed of string pulls	Well service operations using rigs cannot be executed rapidly

The Simple Multi-Attribute Rating Technique (SMART) method is used to support the decision-making process. This method was chosen because it is simpler, suitable for quick decisions with few criteria and alternatives, and stakeholders are easier to involve and understand the method. The first step is to identify the attributes by making a value tree.

A value tree, as shown in Fig. 6, is used to help perform cost & benefit analysis. Cost is a crucial attribute to consider when making decisions. Table VII shows the cost of each alternative.

Fig. 6. Value tree of the attributes.

Table VII. The Cost Associated with Options

	Alternatives	Rent (USD/month)	Fuel (USD/month)	Crew (USD/month)	Total Cost (USD/month)
A	Add 1 rental rig unit to increase the number of servers	747,945	158,766	–	906,711
B	Simplify the well service operation process	610,959	135,120	–	746,079
C	Simplify the well service operation process and utilize equipment other than rigs	614,023	136,021	1,514	751,558

Measurable attributes are not given direct ratings but are assessed using value functions to determine values based on decision-maker preferences. In this case, measurable attributes such as cycle time, preparation time, and safety risk are given value functions, while unmeasurable attributes such as social risk and personnel competency are given direct ratings based on judgment by decision-makers.

Formula for cost and time related (lower is better):

$$\begin{array}{r}V\left(x\right)=\frac{x_{max}-x}{x_{max}-x_{min}}\end{array}$$

By applying this formula, the values obtained for several attributes where the lower value is better, such as safety risk, cycle time, and preparation time.

The safety risk is assessed based on the possibility of increased risk referring to the company’s risk register if the alternative is implemented. Alternative C obtains the highest value because it has the lowest risk level, while alternative A obtains the lowest value because it has the highest potential risk level as shown in Table VIII.

Table VIII. Value Function for Safety Risk

	Alternatives	Safety risk (point)	Value
C	Simplify the well service operation process and utilize equipment other than rigs	148.0	100
B	Simplify the well service operation process	171.0	62
A	Add 1 rental rig unit to increase the number of servers	208.0	0

The cycle time is assessed based on the estimated duration of well service operations for each well. Alternative C obtains the highest value because it has the fastest cycle time potential, while alternative A obtains the lowest value because it has the longest probable cycle time per well as shown in Table IX.

Table IX. Value Function for Cycle Time

	Alternatives	Cycle time (hours)	Value
C	Simplify the well service operation process and utilize equipment other than rigs	84.0	100
B	Simplify the well service operation process	101.0	54
A	Add 1 rental rig unit to increase the number of servers	121.0	0

The preparation time is assessed based on the time needed to prepare the alternative until it can be implemented. This preparation time may involve the preparation of resources such as contracts, equipment, materials, and labor. Alternative B obtains the highest value because it has the potential for the shortest preparation time, whilst alternative A obtains the lowest value because of its potential for the longest preparation time shown in Table X.

Table X. Value Function for Preparation Time

	Alternatives	Preparation time (month)	Value
B	Simplify the well service operation process	4.0	100
C	Simplify the well service operation process and utilize equipment other than rigs	5.0	75
A	Add 1 rental rig unit to increase the number of servers	8.0	0

The social issue pertains to the possibility of social disruption resulting from the implementation of the selected alternative. The social issue attribute is directly rated by decision-makers because it is difficult to measure, so the value is based on the experience and judgment of the decision-maker. The personnel competency attribute is also directly rated by evaluating current competencies and determining whether upskilling is required if the alternative is implemented. The judgment of the decision maker is necessary to assign this value. After obtaining the value of all attributes, a comparison is made between the costs and benefits as shown in Table XI.

Table XI. Cost and Benefit of the Attributes

	Alternatives	Cost/month (USD)	Safety risk	Cycle time	Preparation time	Social risk	Personnel competency
A	Add 1 rental rig unit to increase the number of servers	906,711	0	0	0	0	100
B	Simplifying the well service operation process while maintaining the number of rigs	746,079	62	54	100	100	50
C	Simplifying the well service operation process and utilizing equipment other than rigs	751,558	100	100	75	80	0

The weight of each attribute is determined in the FGD involving decision makers. This weighting is required to determine which attributes are prioritized or are considered significant variables in the decision-making process. The results of this weighting are presented in Table XII.

Table XII. The Weight of the Attributes

Weight of the attributes based on DM’s ranking	Original weight	Normalized weight
Safety risk	100	0.31
Cycle time per well	85	0.27
Preparation time	65	0.20
Social risk	45	0.14
Personnel competency	25	0.08
Total	320	1

Determining the weight of the attributes:

$$\begin{array}{r}Normalizedweight=\frac{Originalweight}{Totaloriginalweight}\times 100\mathrm{\%}\end{array}$$

Tables XIII–XV are the calculation of the weighted value for each attribute.

Table XIII. Weighted Value of Alternative A

Alternative A	Original eight	Normalized weight	Value x Normalized weight
Safety risk	0	0.31	0.00
Cycle time per well	0	0.27	0.00
Preparation time	0	0.20	0.00
Social risk	0	0.14	0.00
Personnel competency	100	0.08	7.81
Total			7.81

Table XIV. Weighted Value of Alternative B

Alternative B	Original weight	Normalized weight	Value × Normalized weight
Safety risk	62	0.31	19.38
Cycle time per well	54	0.27	14.34
Preparation time	100	0.20	20.31
Social risk	100	0.14	14.06
Personnel competency	50	0.08	3.91
Total			72.00

Table XV. Weighted Value of Alternative C

Alternative C	Original weight	Normalized weight	Value × Normalized weight
Safety risk	100	0.31	31.25
Cycle time per well	100	0.27	26.56
Preparation time	75	0.20	15.23
Social risk	80	0.14	11.25
Personnel competency	0	0.08	0.00
Total			84.30

Table XVI. Aggregate of Weighted Value

Alternative	Cost/month (USD)	Aggregate of weighted value
A	906,711	7.8
B	746,079	72.0
C	751,558	84.3

Table XVII. Cost and Benefit Comparison between Alternatives

		A		C
		$906,710.90	7.8	$751,557.73	84.3
B	$746,078.90			$5,479	12.3
	72.0			445.55
C	$751,557.73	$155,153	−76.5
		84.3	- 2,028.56

Choosing the most preferred efficient frontier point.

Fig. 7 shows that Alternative A has the highest cost with the lowest benefit; therefore, it is an unfavorable option. Alternative B has the lowest cost with a slightly lower benefit compared to alternative C. If the decision maker compares B and C, they must consider the extra value point, which is how much cost is required for each one-point increase in the value of the benefit. In the comparison between options B and C, if the extra value point is less than USD 445.55 then alternative B is the better option, but if the extra value point is more than or equal to USD 445.55 then alternative C is the better option. Examine a sample of the cycle time attribute, noting that alternative B has the lowest value with a weight of 14.34 (Table XIV), whereas attribute C has the highest value with a weight of 26.56 (Table XV). To increase the cycle time to the same as alternative C, it costs USD 5,479 for 12.22 points of the value of the benefit, therefore the extra value point is USD 448.39/point or greater than USD 445.55. Under this situation, alternative C is the most preferred option.

Fig. 7. Provisional decision: trading benefit vs cost.

Improve

After selecting Alternative C; simplify the well service operation process and utilize equipment other than rigs, the next step in the Improve stage is to formulate comprehensive implementation actions. In this stage, it will be determined how to employ equipment that can replace the rig, what work steps can be simplified, and what improvements in the business process by creating BPMN and flowcharts.

Simplifying the Well Service Work Steps

With several innovations that have been successfully tested in several fields, there is potential to simplify well service work steps. One of the innovation tools is the Tubing Tester Set (TTS), which is a tool used to perform tubing pressure testing with a test tool that can be fished or pulled using a wireline. With this simplification, several work steps can be eliminated which shortening the shortening the well service cycle time as shown in Fig. 8.

Fig. 8. Flow diagram of simplified well service work steps using a rig.

Rigless Well Servicing

The Pendopo field Well Services department has invented an innovative tool called the Mousetrap Revolution (MOTION) which is used to catch broken sucker rods. This tool allows for no replacement of parted sucker rods. MOTION, after successfully catching fish, can immediately function as a sucker rod collar so there is no need to do a fishing job to fish and pull out to the surface (Arifienet al., 2023). With this method, there is no need to pull out the tubing and pump from the well so it is possible to do well service without the need to use a rig (Fig. 9).

Fig. 9. Flow diagram of rig-less well service work steps using a crane.

A Crane has significant potential to be used as well servicing equipment on wells with parted sucker rod problems although it faces challenges in its application. Based on benchmark results, the use of cranes as well servicing equipment has been utilized in several companies in Indonesia, nevertheless, it has not been regulated for use in the Pendopo field.

From the results of the FGD, alternative C is selected, but the following preparations are required prior to implementation:

1. Application for permission to the Directorate General of Oil and Gas (Ditjen Migas) Indonesia for the use of cranes as well servicing equipment

2. Preparation of Hazard Identification (HAZID) and Hazard and Operability Study (HAZOP).

3. Development of a Working System that governs candidate selection, equipment specifications, personnel qualifications, certification, and comprehensive operational work steps with an emphasis on operational safety.

Proposed Business Process

By selecting alternative C, it is necessary to develop business process improvement to enhance the existing business process prior to implementation. The well service work process begins with a proposal from the Petroleum Engineering department. This proposal must explain the issue that caused the well to need service. The Well Services department evaluates the well proposal and determines what equipment will be used. Well programs that meet the selection criteria for work with a crane will be assigned a crane for execution, while wells that do not match the criteria will be assigned a rig. After the equipment is determined, the Well Services department prepares a well work program and asks for approval from the field manager and the Well Intervention manager. After the program is released, the Well Service department coordinates with several related departments, including the RAM department for site and road access preparation, and the Supply Chain Management (SCM) department for crane or fleet preparation for moving rigs. The Well Services department will execute well service using a rig or crane according to the work program. After the service program steps are completed and the well start producing, observations and monitoring of the well production figures are carried out by the Production Operation department and evaluated by Petroleum Engineering. If the well production is considered good according to the specified parameters, the work is declared complete and the rig or crane will be released and then will move for well work on other wells as explained in Fig. 10.

Fig. 10. Proposed well service business process.

The Potential Impact of Improvement

The proposed improvements to be implemented are expected to have an impact on the acceleration of cycle time and cost savings for the company. Calculations are made to obtain an estimate of the benefits of this improvement. Minimizing work steps through the application of corporate innovations may lead to a reduction in cycle time by 20 hours per well, representing 16.5% of the existing standard cycle time for well service using rigs. The decrease in operating time will immediately affect costs. The cost components directly associated with cycle time are rig rental expenses and fuel expenses. This improvement might yield savings of USD 5,605 per well, representing a 16.5% reduction from the initial cost.

The opportunity to utilize a crane to replace a rig on certain jobs that meet the specified criteria has the potential to significantly cut time. This strategy has the potential to result in a cycle time acceleration of 110 hours per well, or 89% of the total standard cycle time that is currently the reference in the implementation of well service. This method also has the potential to generate significant savings when compared to previous methods that predominantly depend on rigs as the primary equipment for well service. The potential savings are USD 32,629 per well or 94% of the cost of well service using a rig.

Control

To ensure the long-term sustainability of the proposed improvements, an implementation plan and Standard Operating Procedure (SOP) will be developed during the Control phase. The implementation plan outlines the timeframe, monitoring strategies, responsible individuals, and objectives.

Standard Operating Procedure

To ensure that the implementation of this improvement, particularly regarding crane utilization as well service equipment, has clear guidelines and references, it is essential to establish a Standard Operating Procedure (SOP) that regulates the implementation of improvements in accordance with regulations, standards, and good engineering practices. The SOP that is created must at least include the following:

1. Criteria selection

2. Scope of work

3. Equipment specifications

4. Personnel qualifications and responsibilities

5. Detailed step-by-step work instructions

6. Safety measures/precautions

SOP must be tested, reviewed, and approved by authorized personnel and disseminated to all personnel involved. SOP can be revised and updated if there is room for improvement identified in its implementation.

Conclusion

DMAIC methodology is a very effective framework for implementing continuous improvement in a company. From the study that has been conducted, the following conclusions were obtained:

1. The analysis results indicate that well service operations might be simplified by combining several steps through the application of various innovations developed by employees, thereby eliminating several steps that can reduce operations time. In addition, optimization of production observation time also has the potential to shorten operation time.

2. Certain well issues, such as those involving parted sucker rods, can be addressed without the necessity of a rig. The opportunity to utilize a crane to replace a rig on certain jobs that meet the specified criteria has the potential to shorten cycle time significantly.

3. The proposed strategy to overcome these problems is by implementing a simplified well service work program that integrates rigs alongside the utilization of alternative units, such as cranes, in the well service process. This application requires the development of business process improvements, guidelines, standard operating procedures, work programs, and also permit from the regulatory authority.

Recommendation

Although operations cycle time might be improved by simplifying work steps and by utilizing equipment other than rigs for well service work, there remains potential for further improvement, including:

1. Identifying the factors that contribute to issues in the well, particularly those that lead to predominant and substantial failures resulting in pump-off. Improvements to the design of the downhole sucker rod pump string, surface facilities, and modifications of operating settings are essential to prevent issues such as tubing leaks and sucker rod failures, hence extending the well’s lifetime and reducing the frequency of well service.

2. Accelerating moving time can be one solution that will have a significant impact on shortening the well service cycle time. The current moving time appears to exhibit a gap between actual and planned times, this is due to many factors including the number of rig equipment loads, the distance between wells that are far apart, weather conditions, road conditions, social disruptions from the community, etc. Collaboration with several departments and good relations with relevant stakeholders is essential to resolve this problem.