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Six Sigma Process Improvement Project

Project Name : Treatment Of Produced


Water
Team-Mavericks

Yellow Belt: Akash Gupta ,Mridul Tripathi, Urmila Choudhary
Coordinator: Mr. Nikhil Nilange
Master Black Belt: Mr. Raja Gopal , Shri. S D Karve,Dr.
Yogesh Koparkar
DMAIC Steps
Deliverables

Phase
Define SIPOC
Customers and CTQs established
Problem Statement, Business Case, Goals & Scope
Team

Measure Key output measures Y identified


Data Collection Plan
Do MSA (Gage R&R – Only for Black Belt)
Process Variation displayed (Span)
Baseline sigma performance calculated

Analyze Possible causes identified by Segmentation/Stratification A Review of the Deliverables:


Detailed Process mapped in area of problem
Process Map Analyzed These are the guideline
Data Analysis – Root Cause validated deliverables.
Vital Few identified You may want to refine for your
Opportunity is Quantified project.
Also, remember to refine your
Improve Solutions identified/mapped Charter
Design Solutions as you progress through your
Implementation Plan – (Consider Pilot) project.
FMEA executed
Cost Benefit Proposal Created

Control Standardized process


On-going Monitoring Plan established
Procedures/documentation realised
Response Plan developed and deployed
Systems and structures modified (staffing, training, reward and recognition,
systems)
Ownership of on-going process management transferred to process owner
Define

Region : MUMBAI
Product / Service: Produce Water treatment
SIPOC
Process : Water Treatment Plant
No. of staff: 300

INPUTS PROCESS OUTPUTS CUSTOMERS


SUPPLIERS
Samples of Start Valid oil
& PW Measurement &
Oil , sludge Performing chemical control department
Petrochemical and PW Specification
and physical tests
Labs
for PW samples Oil Field
Oil and PW Reduce Management
Oil Field Characteristic Evaluating the main Environmental
Management Report
contaminants in the & economic Mumbai Oil Company
discharged PW
Hazard

. Improving the current Fresh Water


method for
managing PW

End
DMAIC Project Charter
Project No.:
Project Name: Treatment Of Produced Water Core Process:Cental Degassing Process
Resource Plan: Team Members/Support Resources:

Green Belt :
AKASH GUPTA
Sponsor: IICHE
MRIDUL TRIPATHI
Process Owner: Mr R.K. Singh URMILA CHOUDHARY
Six Sigma Leader:
Black Belt and Master Black Belt: RAJAGOPALAN

Problem Statement Scope

.
A Mumbai Oil company has been using Degassing Stations (DS) to The project scope is using Six Sigma methodology o evaluate the main
separate oil from gas. An excessive amount of PW has produced with contaminants in PW in order to find the best management method for t
oil and gas production activities in that field hat water to help improve the current and future state of the Oil field

Goal Statement Customer CTQ’s

Finding the best method for Managing PW


Identifying most contaminants in PW, measuring their amounts, and Converting PW to usable water
analyzing the root causes of increase in these amounts will be
performed by using the developed framework

Estimate Financial Opportunities High Level Project Milestone

If the remaining oil and grease particles are removed from The results showed that the production from the productive
PW prior to discharge and recycled again to the de-oiling units, sector in Bombay fields has increased by 22.629% with an
the production of oil will increase and that will help to increase ultimate recovery percentage of 78.16%
sales of oil per day

Validation
Functional Manager/Process OwnerDate: 30.06 .2021 Sponsor: Date: Financial Analyst: Date:
30.06 .2021 THIRTHAA YUVARAJ 30.06 ..2021
___________________
Black/Green Belt: Date: Six Sigma Leader Date: _ Date:
30.06 . 2021 Other: 30.06 . 2021
_____________________
ROHITH VISWANATH
S
__________________
__
VOICE OF CUSTOMER(VOC)
Table 1:The Required Properties of PW
High Level Improvement Timeline

Update your plan as your project progresses


Modify the deliverables for your project
Define Tollgate Review

TEAM
Define Tollgate Review
 Team is sponsored by a sponsor
 Team formed and team leaders (Six Sigma Black/Green Belt & Six Sigma Coach) assigned
 Improvement team members fully trained on Six Sigma and DMAIC
 Full participation by members in regularly held team meetings
 Team members perform project work when assigned and in a timely fashion
 Team members regularly document their project work
 Team is equipped with available and reliable resources
HIGH LEVEL BUSINESS PROCESS MAP
 Business Process Mapping Completed (SIPOC), verified, and validated high-level 'as is' (not 'should be' or 'could
be') business process map
 Completed SIPOC representation, describing the Suppliers, Inputs, Process, Outputs, and Customers
CUSTOMERS & CTQs
 Data collected and displayed to better understand customer(s) critical needs and requirements
 Customer(s) identified and segmented according to their different needs and requirements
TEAM CHARTER
 Project management charter, including financial opportunities, problem and goal statements, project scope,
milestones, roles and responsibilities, communication plan

Six Sigma Leader: Sponsor: Process Owner:


Signatures

date date date


Black/Green Belt: Six Sigma Financial Analyst: Other:
date date date
Measure

Data Collection Plan Worksheet Key Output Measure Y

CTQ Measure Data Data collection CTQ


Analysis Specification
I
Description Type Mechanism Mechanism
(op definition ( Cont//Disc)

Oil & PW Statistics, 960 m3 /d


Y1 Available Research,
Production Rate Discrete Histogram,
Inspection,
PW Discharge Statistics, Greater than 10,000
Available Research,
Rate Discrete histogram m3 /day
Y2 visual,
Env . Pollution Statistics, Refer EPA Guidelies
Y3 EPA Regulation,
Discrete Ratings , Scatter
Inspection,
diagram
Reinjection Rate of 3040-3936 m3 /day
Y4 Available Research,
PW Discrete Statistics,
Inspection,
Histogram
Discrete Refer Table 1
Y5 EPA Regulation,
PW Contaminants Statistics , Cost
Inspection,
curve
Y6 Available Research, $0.63 to $3.15/m3
Cost Discrete Statistics,
Inspection,
Histogram
-
Y7 Available Research,
Fresh Water Discrete Statistics,
Inspection,
Resources Histogram
Statistics, Less than 0.01
Y8 Available Research, inch/year
Corrosion Discrete Histogram
Inspection,
Y9 Available Research,
Discrete Statistics,
Inspection,
Salinity histogram
Be sure to focus on Operational definitions, so that 2 people using the definition will give the same measure (reproducibility) AND if 1 person
measures twice, they will give the same
measure twice (repeatability).
Measure
Output Sigma
Understanding the Capability of the process
Double click on the spreadsheet and enter data in the the shaded cells.

Define the following


CTQ: Converting PW to usable water
Target: Meet the required standard of PW
Defect: Remove scales and deposits from the control valves and check for any defect
Unit: Parts per million
Opportunity: Conversion of PW increase from 80-92%

DPMO

You may need to do more than one sheet (or consolidate in a table) to show other Baseline calc’s or summary sigma.
Explain any sampling as appropriate. Hint: Update your problem and goal statements. Did they change based on your findings?
Measurement Data Display

Understanding process variation . . .


Measurement Data Display
Measurement Data Display
Measure Tollgate Review

Measure Tollgate Review
KEY MEASURES Y IDENTIFIED
 Key output measures Y identified and agreed upon
 High impact defects defined and identified in the business process

DATA COLLECTION PLANNED AND EXECUTED


 Solid data collection plan established that includes measurement systems analysis
 Data collected on key measures that were identified

PROCESS VARIATION DISPLAYED/COMMUNICATED


 Process variation components displayed/communicated using suitable charts, graphs, plots
 Long term and short term variability accounted for

PERFORMANCE BASELINE/SIGMA CALCULATION


 Measure baseline process performance (capability, yield, sigma level).
 Update project goal
Signatures

Six Sigma Leader: Sponsor: Process Owner:

date date date


Black/Green Belt: Six Sigma Financial Analyst: Other:
date date date
Analyse

Fish Bone Diagram/Cause & Effect/Ishikawa
Diagram
X ’s Y

High Salinity Low PH value

Back Wash Water Corrosion

Environment Chemical
Equipment Additives
High
Corrosion
Measurement Rate
Materials Operational
Conditions
Personal

High Iron Content High Amount of Dissolved Gases


Notes:
Use the traditional categories: Machines, Methods, Mature Nature - What are the causes of defects, variation, customer dissatisfaction,
Measurement, Materials, People inefficiencies- Prioritise /
- OR, make up your own, based on your process problems Vote on the few main causes. Next, you will collect data to validate relationship
/causal relationship.
- Remember, Y is the key output measure and X’s are process or input
variables
Notes
The lower PH value can cause an increase in the corrosion rate with the presence
of a reaction between dissolved oxygen and absorbed atomic hydrogen and vice
versa,
Prioritization of Xs : Control / Impact Matrix
Y=f (X1, X2, …, Xn)

IMPACT
High Medium Low

Materia
l
In Our Personnel
Equipment
Control Measurement
C Corrosion
Operational Chemical Additives
O
Conditions
N
T
R
O
L Out Of
Our
Back Wash Water
Control (BWW) Environment
High salinity

Classify your Xs coming from your C/E Diagram (Fishbone Diagram).


Narrow to Root Causes, Use Pareto Analysis
Add Root Cause Pareto OR
other data analysis
Here

Conclusions:
1. All three main radium isotopes could generally appear in Produced
Water(PW)
2. Drop in pressure and temperature could increase the solubility of PW
constituents such as sulphates and carbonates.
3. This solubility is considered the main source of the 228Th and was
detected in aged sludge and scales and likely appeared as a decay of the
mobilized 228 Ra.
Narrow to Root Causes Display Your Data, Test
Your Hypothesis
Vital Few Causes
Note: Update your charter as appropriate. Have your
improvement opportunities changed? Savings or Revenue
impact changed?

List your vital few causes:

1. if PW is effectively treated, the reinjection process into oil wells will be


possible
2. the disposal rate of PW will be decreased and that will result in decreasing the
environmental and economic impacts.
3. Multi Criteria Decision Making (MCDM) methodology was used to select an
ecofriendly technology to treat PW
As-Is Process Map
Process Name : Central Degassing Process

Open Yes 1st stage 600 psi


Crude oil
Mainfold Header High Pressure oil
Valve Gas Separation
No

No
Waiting for
Corrosion
Operator order
Inhibitor
Oil or gas
level more
than half
2 nd Stage 200 psi capacity of
Low pressure oil separator
Oil level gas separation Yes
reached electrical No
level 3 rd Stage 27 psi Dealy electrical
yes Low pressure oil treatment
Operating electrical Electric Charge gas separation
treatment to separate
PW Sending dry oil to
4 th
Stage 12 psi storage tank
Low pressure oil
Dry
Problem gas separation
Oil
in pumps & Damam Skimmer for
PW Removing oil
Well
Yes particles
No
Discharging PW
Sending PW to
into Damam Containments API Ground
Foundation
8 Wastes identified in our
process
Intellect :

Errors:

Inventory :

Waiting :

Motion:

Transport :

Over processing:

Over production :
FMEA

Note : according to the Risk Priority Number (RPN), improve your process
design or decide actions to input in the response plan of your Process
Management Chart.
STAKEHOLDER ANALYSIS(STA)

 Stakeholder Analysis Matrix


Attitude: -10 (Strongly Against), 10 (Strongly for)


Activity: 0 (Completely Passive), 10 (Strongly Active) Power:
0 (No Effective Power), 10 (Powerful Influence) Interest: 0
(No Interest), 10 (Very Interested)
Interest/Power Plot

Analyze Tollgate
Review

Analyse Tollgate Review
DATA AND PROCESS ANALYSIS
 Identify gaps between current performance and the goal performance
 Value added tasks / non value added tasks
 Moments Of Truth in process identified

ROOT CAUSE ANALYSIS


 Generate list of possible causes (sources of variation)
 Segment and stratify possible causes (sources of variation)
 Prioritize list of 'vital few' causes (key sources of variation)
 Verify and quantify the root causes of variation

QUANTIFYING THE GAP/OPPORTUNITY


 Determine the performance gap
 Display and communicate the gap/opportunity in financial terms

Six Sigma Leader: Sponsor: Process Owner:


Signatures

date date date


Black/Green Belt Six Sigma Financial Analyst: Other:
date date date
Improve


Improvement Context Analysis
Benchmarking:
• Since the amount of PW has increased enormously with increased oil
production, SOC has been injecting PW into NEPs and disposing it into
Dammam formation in the case of 103 having problem in the injection
systems in order to keep normal production of oil.
• Based on analysis we propose a stationary PW treatment plant as
shown below
What improvement do you want for your
process ?

 Treating PW closer to DS will help to reduce the demand on obtaining water from
River. As a result, the amount of moving suspended scales and deposits in pipe systems
from the 116 river to the DS will decrease
 Converting PW to usable water will help to use it not only for production operation
purposes, but also, it could be used for cleaning field facilities, such as, cleaning drilling
equipment or can be used as a cooler fluid for some cooling systems.
 If PW is effectively treated, the reinjection process into oil wells will be possible.
The latest method will increase oil production and maintain oil well pressure.
PW properties before treatment helped to identify the current root causes of high
amounts of contaminants in the discharged PW. It also helped to identify the
relationship between these causes and how the new approach should be developed in
order to avoid selecting a method that might fail to meet these requirements. T
Improvement Context Analysis
Brainstorming:
• the KPOV was increasing in the amount of contaminants in PW, different
alternatives were selected regarding to KPIVs that were affecting the KPOV.
• These alternatives were identified with the respect to four basic criteria as follows:
1. Technical Feasibility
2. Cost
3. Environment
4. Health and Safety
• Four alternative technologies were selected for the purpose of meeting the
required PW properties. These technologies are
1. Hydro cyclones - Technology -A1
2. Media Filtration- Technology -A2
3. Membranes Filtration- Technology -A3
4. Evaporation Pond- Technology -A4
Conclusion
 Quantitative and qualitative data regarding the performance of the selected
technology were used to compare between them and selected criteria,
alternatives, and the main goal of this study. The required data to perform this
comparison was collected from different sources.
 For the performance of the technologies, the higher values referred to the high
performance of the selected technology and vice versa. For the cost, the lower
values were preferred. Making judgments between clusters was not performed
because all clusters in this model were equally important
Pairwise Comparison Matrix(PCM)

 PCM for Criteria Cluster

 Normalized PCM

Each node in the Criteria cluster compared by scaling how much is more important than other nodes .
Calculating the normalized PCM values by dividing each value in the column over its corresponding
summation value at the same column:
Pairwise Comparison Matrix(PCM)

 Relative Priorities of PCM

Calculating the relative priorities by calculating the average of normalized values for each raw PCM :

 Conclusion
The relative priorities values with the respect to the 2Criteria cluster refers that
Environmental and Health and Safety were preferred first with the percentage of
preference equal to 35% for each. Then, cost was preferred with 18%. Finally, technical
feasibility was preferred with 12%.
Technology Comparison

 Conclusion
The results showed that the best method was using membrane filtration which is
technology A3 with the normalized value equal to 0.404603. The second alternative
technology 134 that can be used for the same purpose was technology A2 (media
filtration) with the normalized value equal to 0.243328. Technology A1 was
considered an intermediate candidate between the above technologies with the
normalized value equal to 0.208771.
Describe Solution(s) Selected
Root Cause Solution

High Discharge Rate Hydro cyclones , or sand


separators can treat up to y 8
million barrels per day of the
PW
High salinity Media Filtration- Technology is
not effected by the amount of
salinity during the treatment
process
Low pressure oil separation Membranes Filtration-
Technology
Is a pressure driven technology

Heavy metals and bacterial Dual media membrane


strain filtration
New Process Map ("Should Be")
Cost/Benefit Analysis
Description Assumptions used Amt
Cost #1 $3.15/m3day $3150/day
Costs
Cost # 2 $3/m3day $3000/day

Improvement #1 $2.85m3/day $2850/day


Improvements:
Improvement #2 $2.7/m3day $2700/day

Net (Cost) Benefit $300/day

Net (Cost) Benefit = Total Benefits less total costs

 Remember, decisions should not be made only on


financials.
 There may be some very important “soft” benefits  The cumulative cost benefit defines the time period for
to consider. payback.
Improve Tollgate Review
Improve Tollgate Review
GENERATING (AND TESTING) POSSIBLE SOLUTIONS
 Possible solutions generated and tested
SELECTING THE BEST SOLUTION(S)
 Optimal solution selected based on testing and analysis
 New and improved process ('should be') maps developed. Cost/benefit analysis of optimal solution(s)
 Small-scale pilot for proposed improvement(s)
 Pilot data collected and analyzed
 Improved process ('should be') maps modified based on pilot data and analysis
 Project impact on utilizing the best solution(s)
DESIGNING IMPLEMENTATION PLAN
 Solution implementation plan established, including schedule/work breakdown structure, resources, risk
management plan, cost/budget, and control plan
 Contingency plan established.

Six Sigma Leader: Sponsor: Process Owner:


Signatures

Black/Green Belt: date Six Sigma Financial Analyst: date date


Other:

date date date


Control
Monitoring
High Level Control Plan for the Membrane Filtration Technology
Monitoring
Control Charts
Control Charts
Control Summary
DPMO
Total
Before=1100
Savings=$300/day
After=3.4

1)oil production with the proposed  The flow chart for the current
reinjection method will oil production processes that
increase from 1,564.33 MMSTB to have taken place in one of
1,698.5 MMSTB. the Mumbai oil fields showed
2) PW can be used to produce that either injecting PW into
electrical power by using different the NEPs or discharging it
technologies into Dammam formation was
an ineffective management
method
Control Tollgate Review
MONITORING PLAN
 Control plan in place for sustaining improvements (short and long-term)

PROCESS STANDARDIZATION
 New process steps, standards, and documentation are ingrained into normal operations

DOCUMENTED PROCEDURES
 Operating procedures are consistent
 Knowledge gained on process is shared and institutionalized

RESPONSE PLAN
 Response plans established, understood, and deployed

TRANSFER OF OWNERSHIP (PROJECT CLOSURE)


 Transfer ownership and Knowledge to process owner and process team.
 Coaching for process reviews planned over XX months

Six Sigma Leader: Sponsor: Process Owner:


Signatures

date date date


Black/Green Belt: Six Sigma Financial Analyst: Other:
date date date
CONCLUSIONS


The application of Six Sigma in oil and gas industries using the DMAIC approach is a powerful
method to successfully identify problems, measure and analyze their causes, remove these
causes by using quality control tools, improve the current states of existing systems, and control
those systems for the long term period. Implementing quality principles, practices, and tools in
the selected case study are effective to identify the main contaminants in PW and uncover the
main and sub-causes of an increase in the amount of these identified contaminants. All of that
could be done by using effective quality tools such as Pareto analysis, flow chart, histogram,
and cause and effect analysis, stakeholder analysis, and statistical process control tools.
Meeting customer’s needs is very important, thus, the QFD method could be used to identify the
required technical assessment to meet or exceed the required specifications of the PW prior to
disposal. The STA could also help to perform brainstorming and to connect between main and
sub-causes of current problems and to identify them accurately. The MCDM process could be
conducted to find the best solution for PW problem with the respect to the customers’ needs with
less time and effort. The latest could be used once all root causes of problems are analyzed in
details. This study introduces new quality concepts, principles, tools, and methods that can be
used to solve problems, improve systems, and manage organizations effectively within oil
industries. Therefore, Six Sigma is not only quality principle, but also a powerful guide that can
be implemented successfully in oil and gas industries whenever an initiative toward quality
improvement is conducted to improve processes and systems.

THANK YOU

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