Liquid

Pipelines
 Liquid Pipelines Benchmarking Program

Juran Benchmarking has been providing benchmarking services

to the oil and gas industry since 1995. During this time we have
compiled an extensive database of performance data from
thousands of assets operated by NOCs, IOCs and independent
oil and gas companies worldwide.

Our highly effective normalisation approach, the Juran Complexity

Factor© ensures like-for-like comparisons of performance between
benchmarked pipelines to realise actionable results
and improvement opportunities.

Why Benchmark? Benchmarking Scope

Benchmarking is widely recognised as an
essential tool in developing an effective strategy
to drive performance improvement.
By benchmarking your liquid pipelines with Juran
Benchmarking you will receive a comprehensive
analysis of performance at the asset-level,
comparative rankings to show your asset’s
position against industry peers and leading
performers, a detailed gap analysis with
actionable findings that indicates areas of
strength as well as improvement opportunities.
The benchmarking provides:
The benchmarking scope has been developed
in conjunction with participating companies
and focuses on the operational efficiency and
effectiveness of liquid pipelines, whether crude
oil, petroleum products or petrochemicals.
In the region of 200 key performance indicators
are measured, providing a comprehensive
analysis that identifies opportunities for:
• cost optimisation
• increased manpower productivity
• enhanced effectiveness

20%
• A foundation for performance improvement
• A comparison of current performance with an TYPICAL
external perspective PRODUCTIVITY
IMPROVEMENT
• Quantification of improvement opportunity LEVELS
potential
• An understanding of leading practices that
enable superior performance
• Identification of strengths & improvement
opportunities
“Participating in the Juran
• A basis for gap closure to realise ROI
Benchmarking Program allowed
• An evidence-base for decision making
  us to illustrate to our Top
Management our strengths and
weaknesses compared to other

15%
players in our industry and to
AVERAGE
COST SAVINGS seek their support for actions for
POTENTIAL improvement initiatives”
IDENTIFIED
Asset Director
Benchmarking Scope
Juran Benchmarking has developed metrics models that describe the key efficiency and
effectiveness performance areas associated with the operational performance of a pipeline.
Benchmarking data is collected and analysed in line with these models.

Efficiency
Efficiency is determined by measuring operational costs of labour and materials, manpower time
employed and energy consumed. KPIs address operations and maintenance for the pipeline
system, pump stations and control room activities. Also analysed are business overheads such as IT,
procurement, finance and HR. An energy efficiency analysis examines energy consumption in relation
to volumes transported.

All cost and manpower data are normalised by the Juran Complexity Factor© to provide a comparative
picture of efficiency.

Total Company

Pipeline Pump Station Control Room General & Business &

System O&M O&M Administration Development
O&M

Competitiveness
Competitiveness of a pipeline is determined by examining costs, manpower levels and energy use in
relation to the volumes transported. This provides a good indication of the commercial competitiveness,
in terms of the cost of transportation per unit of volume transported.

Effectiveness
Effectiveness focuses on the quality of performance outcomes. KPIs examine a multitude of
performance areas including; availability and reliability, delivery point interruptions, integrity incidents,
lost time incidents and near misses, and emissions.

Total Company

Pipeline Health & Environment Quality of Incidents HR &

Utilisation Safety Service Training
Benchmarking Analysis
The analysis is conducted on two levels; Performance Comparison and Gap Analysis.

Performance Comparison
Benchmarked Assets Group Averages
The first level of analysis provides an
overview of your pipeline’s performance

Normalised Cost
compared to the other benchmarkers.
A comprehensive analysis is conducted Quartile 3

comparing your asset to the benchmarks

for all areas of efficiency and Median

effectiveness performance. Quartile 1

Pipeline X

Region A
Region B
Region C

Global
Gap Analysis Efficiency gaps: breakdown of gap to 1st quartile
The second level of analysis is the
company-specific gap analysis in relation 40.9%
to the leading performers, which offers
a detailed insight into the strengths
and improvement opportunities of
Cost

32.2%
the pipeline. Improvement potential
is quantified and recommendations 16.2%
provided for gap closure, thereby 10.7%
signposting where improvement
activities should be targeted. Pipeline X Operations Maintenance Business Functional 1st
Overheads Support Quartile

Positioning Analysis Positioning analysis and asset performance trend over time
A positioning analysis is conducted 45
High Effectivess Leading Performance
and for those companies participating 40

over multiple benchmarking cycles, an 35

Pipeline X 2016
Pipeline X 2015
analysis of performance trends over 30 Pipeline X 2014

time is also provided.

Effectiveness

Pipeline X 2013
25

20 Pipeline X 2012

15

10

5
Lagging Performance High Efficiency
0
5 10 15 20 25 30 35 40 45 50
Efficiency

Pacesetter Performance
er
The Juran Performance Index© (JPI) provides a single es
ett 17.8
measurement indicating the operational performance in
c
Pa
to

terms of efficiency (costs and hours) and effectiveness. JPI

Gap

The performance of an asset is analysed in relation to SCORE 13.9

Juran Benchmarking Pacesetters, which comprise the
leading performers over a 5 year period. A dashboard 74.5
of performance critical KPIs is provided and the Costs
percentage of pacesetter performance achieved is
Hours
calculated for efficiency and effectiveness KPIs, which 42.6
Effectiveness
are added to arrive at an overall JPI score.
Our Approach
The Juran Benchmarking Cycle© provides
a well-established systematic approach to
the benchmarking.

Plan
Preparation and Planning benchmarking
Develop 7
A kick off meeting is held, during which action plan to 1
close gaps
the purpose, scope, methodology, and Collect
schedule are reviewed and agreed. 6 data

The Juran
Benchmarking Training Understand 2
performance Benchmarking
gaps Cycle©
An onsite benchmarking training
Validate
workshop provides each participant with a data
5
detailed understanding of the benchmarking, Analyse
the metrics to be used and their definitions & report 3
findings Normalise
prior to data collection commencing. 4 data

Data Collection and Validation

Each participating pipeline completes a data
collection document and returns it to Juran
Benchmarking by the agreed date. Help Desk
support is provided during the entire data
collection process such that any client questions
are answered promptly. All data is thoroughly
validated through our rigorous and unique three
stage validation process to ensure accuracy prior
to analysis.
Data Normalisation
The challenge in any benchmarking program is to
ensure that performance comparisons between
participating assets are made on a like-for-like
basis but how can this be achieved for pipelines
that are of differing sizes and designs?
Typically, comparisons are made on the basis of
transported volumes ($/boe). Whilst this provides
an important commercial perspective, it is not
representative of efficiency as transported
volumes will drive variable costs, leaving fixed
costs largely unchanged. Low utilisation, low
volume pipelines will always be disadvantaged in
such an analysis.
effective normalisation approach. The Juran
Complexity Factor© does just this. Our unique
methodology, developed over more than 30
years using empirical industry data, is statistically
proven as a highly effective way to normalise the
performance of pipelines. Using this approach,
benchmarkers can be confident that direct
comparisons between pipelines of differing
technical complexity and size are made on a truly
like-for-like basis, are valid and therefore result in
actionable findings.
Data Analysis and Reporting
Juran Benchmarking will analyse the data,
develop a comprehensive suite of charts and
tables and prepare a detailed written report
of the benchmarking results, tailored for your
company and including a company-specific
performance gap analysis. Uniquely the
comprehensive report includes around 200 key
performance indicators examining all aspects of
your pipeline’s operational performance.

Instead it is critical to reflect the drivers of cost

100%
and manpower, that is the installed equipment OF CLIENTS
that must be operated and maintained, in any SAY THEY
WOULD
RECOMMEND
US
 “We are very proud of our participation in the
Juran Benchmarking program, it was one of
our best decisions. This program has helped
us to improve in so many aspects and most
importantly, we could understand how we
operate and what our weaknesses were.”
Asset Manager

Company Management Presentations Developing Action Plans

A detailed post-report debrief presentation
of the benchmarking analysis is delivered to
the company management teams providing
an excellent opportunity to communicate the
findings of the benchmarking. Presentations are
made either face to face at company premises or
via an online meeting.
Sharing Leading Practices
Following the benchmarking analysis and issuing
of the report, Juran Benchmarking will host a
Best Practice Forum. This is exclusive to the
benchmarking participants, enabling companies
to exchange leading working practices in
a knowledge sharing workshop, under the
protection of a confidentiality agreement.
Through our Leading through Enhanced Action
Planning (LEAP) workshop, Juran Benchmarking
will work with your company to support you at
the start of your improvement journey. Together,
we will develop a detailed action plan of how
to implement improvement activities relevant
to your benchmarking results, enabling you to
realise a return on your investment.
Confidentiality & Anti-Trust
Juran Benchmarking undertake all activities in
line with the APQC and EFQM Benchmarking
Codes of Conduct. We ensure all benchmarking
programs are compliant with anti-trust /
competition law and all companies sign a
confidentiality agreement. Company data are
anonymised and treated with utmost care with
a rigorous process in place to ensure your data
are protected. All data are held in an encrypted
format and our highly secure members website
enables data to be exchanged safely and
securely.

91%
OF OUR CLIENTS
HAVE RETURNED
TO US OVER THE
OF PIPELINE BENCHMARKED TO DATE PAST 10 YEARS
 Juran Benchmarking – providing operational performance
benchmarking services to the oil and gas industry since 1995

About Juran Benchmarking Next Steps

& PTAI If you would like further
information about this
Juran Benchmarking, an affiliate of Philip
benchmarking program, please
Townsend Associates Inc (PTAI), is based near
contact Juran Benchmarking:
Edinburgh, Scotland and has been running
multi-company benchmarking programs tailored
Dr Brad Wood
for the oil and gas industry since 1995. Our team
T: +44 131 564 0610
combines management consultants with oil and
bwood@juranbenchmarking.com
gas process engineers, analysts and statisticians
enabling us to provide a robust and high quality
Lochleven Mills, Kinross, KY13 8DH, Scotland
benchmarking service to our clients. We pride
ourselves on being responsive to our clients’ www.juranbenchmarking.com
needs, providing tailored benchmarking solutions
that add value. company/juran-benchmarking

Founded in 1972 and based in Houston, Texas,

USA, PTAI started benchmarking in 1992 and
now executes over 55 benchmarking programs
worldwide.

All of our benchmarking programs are led from

our Houston and Edinburgh offices.

“Benchmarking is a key tool that enables our

business to define our competitive position and
trigger improvement and innovation. Thanks to the
benchmarking program, we have not only improved our
results but we have successfully encouraged our people
to persist with continuous improvement activities and
their contribution to key business goals.”
Corporate Support Manager