MATERIALS MANAGEMENT FOR OIL & GAS PROJECT

INTRODUCTION   

Materials play an important role in oil & gas industry. User departments always want their materials of the right quality, right quantity and at the right time. They prefer to have more inventories than less. For them, adequate inventories mean a guarantee for continuous operations. They are aware of the potential losses if a project has to be stopped because of unavailability of materials (stock-out).

The key questions people often ask are what is the optimum inventory level of a product or part and how to determine it.

The answer is: Materials Management. In this course, you will learn how to support your company’s projects and operations by maintaining a steady flow of materials, and at the same time, doing so as efficient and as economical as possible. You will learn the application of Monte Carlo Simulation in risk analysis and materials management

BENEFITS OF ATTENDING

• Understand the strategic roles of Materials Management for the success of your operations
• Know how to organize your materials department to be effective and efficient
• Learn the competencies you need in managing materials.
• Know how to manage purchasing
• Learn how to manage inventory
• Be able to manage your warehouse
• Can determine when and how much inventory is required
• Be able to mitigate the risk of inventory (lead time risk and demand risk)

WHO SHOULD ATTEND

• Buyers
• Inventory Planners
• Warehouse supervisors, managers and staff
• Finance supervisors, managers and staff
• Supply Chain personnel
• Engineers

COURSE CONTENT

1.     SUPPLY CHAIN MANAGEMENT IN OIL AND GAS INDUSTRY

• Supply Chain Management and SCOR (Supply Chain Operating Reference)
• The History:
  • Maxus Vs. BP
  • Outsourcing vs. Empowerment
  • Service vs. Support
  • Internal Supply Chain Business Process: from Users back to Users.

2.     MATERIAL COSTS

• Cost OF Material (Price)
• Cost ON Material: Purchasing Cost, Holding Cost, Stock-out Cost

3.     PURCHASING MANAGEMENT

• The Purchasing Law
• The Five Rights in Purchasing
• Purchasing Competence
  • Inventory Management
  • Warehouse Management
  • Purchasing Management: Right Price, Right Source, Right Time
  • Vendor Management: Right Source, Right Price, Right Time
  • Material Skill: Right Quality

1. Purchasing Management Evolution
2. Purchasing cycle
3. Cost Reduction in Purchasing
4. Vendor Management

• Material Skill
• Purchasing Professional Certification

4. INVENTORY MANAGEMENT (working with computer)

• Service Level
• Cost of Over Stock and Cost of Under Stock (Stock-out Cost)
• Risks in Inventory Planning
• Statistics in Inventory Planning
• Demand Behavior           
• Inventory Planning for Single Period Events: Monte Carlo Simulation
• Inventory Planning for Consumables
• Inventory Planning for Periodic Demand
• Inventory Planning for Repair
• Reorder Level Calculation with Computer
• Risks in Ordering
• Safety Stock: Monte Carlo Simulation

 5.     WAREHOUSING MANAGEMENT

• Stock Keeping Unit (SKU), Coding System, Cataloguing
• Inbound Process: Receiving, inspection and put away
  • Storage: Dedicated Address, Random Address
  • Warehouse layout
  • Preservation of materials
  • Rack Design and Zone (aisle, bay, position, level)
  • Stacking
  • Outbound Process
    • Safety in Warehouse Operations
    • The 5S of warehouse
    • Logistics and marine operations in offshore operations

6.     COMPLIANCE

• PTK007 - Supply Chain Guidance for Oil and Gas Industry
• TKDN - Local Content for Oil and Gas Projects

INSTRUCTOR

Dr. Ir. Viktor Malau, DEA & Team