Success Stories

Shell Albian Sands Projects And Technology

Lead Contact Ruben Sidhu

Goal: To lead the organization and the Industry in both developing and implementing an Indirects Management Plan to establish processes and systems to sustainably monitor, control and ultimately reduce the Indirects burden so that capital can be redeployed for use elsewhere to areas of greater need or, potentially, yield a higher return of return.

Challenge: Significant reduction in Indirects spend through streamlining and reductions in a mature organization (with established policies and procedures) while ensuring minimal impact to the Asset via delivery of the projects portfolio currently being executed and also managing the risk to Shell’s reputation with external Contractors and Labour Unions.

Achievement: Recognition for the development an aggressive year-long implementation of an Indirects Management Plan that resulted in a 37% reduction of Indirects costs for the T&I portfolio of capital expansion projects at Albian Sands – thereby boosting organizational productivity and efficiency leading to increased cost effectiveness, improvement in project delivery timelines and fulfillment of investment promises to the Business.

Key Accomplishments:

  • Standardization – development and implementation of a standard definition of Indirects and a sustainable monitoring and control framework across the Portfolio (for both current and future projects) and the supporting Business Units so as to effectively manage Indirects and establish the groundwork for future Continuous Improvement opportunities.
  • Sustainable Framework – development and phased three step implementation of a sustainable and scalable Indirects Management Plan that included management principles and reduction/ streamlining strategies (based on best practices) for 5 key areas of opportunity – Staffing Levels, Contractor Billings, Site Services, Materials Management and Equipment & Facilities.
  • Introducing Efficiencies – Development and implementation of clear and simple performance expectations for both Contractors and internal groups (including BUs) to align the portfolio on common business drivers. Included simplification of existing processes (and elimination of others) to make them fit for purpose and sustainable without large resource burdens.
  • Collaboration – Securing alignment, both internally and externally, on the opportunities and driving collaboration so as to both develop and implement the multiple facets of the plan and allow for rapid implementation.