Mapping the inbound logistics of the refineries & terminals (plants) onshore at StatoilHydro, identify main problems and issues and suggest quick wins and possible solutions

Abstract

The aim of this paper is to identify main problems and issues in the supply chain of the inbound logistics at StatoilHydro’s onshore plants. The identification will be based on a mapping of the chain, where value added activity is in focus. The problems and issues will be evaluated and prioritized according to suggested quick wins and possible solutions will be identified. The recommended solution will be based on the elaborated theory of muda and the principle of lean thinking. The research was conducted by the leads of Action research and resulted in a comprehensive mapping of the supply chain and the procurement process, with a definition of customer value, value stream, costs and risks. Through the analysis of the chain with the seven wastes of lean thinking as a reference point, several problems were defined. These problems had all in common that they were inhibiting flow of goods or information through the chain. As not all the wastes were just as easy to eliminate, they were categorized and prioritized due to: quick wins, which problems that contributed most to increase flow if they were eliminated and the problems that could not be eliminated because they are not in the hands of StatoilHydro. By eliminating the different problems and issues derived, StatoilHydro may increase the reliability and efficiency of their supply chain. As these factors were the ones valued by the customer, an effort should be made to increase flow so the information and goods may move faster through the chain. The alternative solutions to how StatoilHydro may accomplish this have been evaluated in this paper. Through this evaluation, following recommendations were made due to their ability to add to customer value: ♦ Increase flow by organizing for focus on process rather than task, by appointing a responsible for the whole purchasing process, including arrangement for transport. Quick wins may be gained. ♦ Strive to better communication between the different steps in the chain ...