Petronas project management system
(PPMS) process diagnostic
How PETRONAS reviewed their project environment to define a roadmap to optimise the delivery of their capital projects in a troubled Oil & Gas environment.
Oil & Gas was in flux with oil prices plummeting causing impacts at every aspect of the industry. PETRONAS in response has identified the need to improve their performance and efficiency throughout the organisation.
As core part of this response was to evaluate the efficiency and effectiveness of capital project delivery throughout PETRONAS including Upstream, Downstream & Gas business unit. A major area for improvement was the PETRONAS Project Management System (PPMS) which is the standard in which all Capital Projects are governed.
Axceligent was engaged to conduct a diagnosis to identify improvement opportunities for Capital Project Delivery in PETRONAS.
Our team used an Improvement approach based on the principles of Lean 6 Sigma, Theory of Constraints and Management Operating Systems to conduct a diagnosis on the PETRONAS Capital Project Delivery environment including the PPMS.
The diagnostic approach focused on three key aspects that influence business effectiveness, namely:
- People – Understanding the cultures of stakeholders and project management teams
- Process – Evaluating existing processes, procedures and guidelines available in the organisation and determining its effectiveness to support overall business and project outcomes.
- Systems – Assessing available tools and systems that were in place to support project delivery
Activities involved in the approach were the following:
- Kaizen Workshops & Stakeholder Interviews
- Visual Process Mapping & Analysis –Brown-Paper Mapping
- Gap Analysis & Opportunities Assessment
- Governance & Project Structure Review
- Process Alignment Reviews
- Centralised Project Management Office Review
- Process Compliance Analysis
- Identified a journey for Capital Project Performance improvement with 3 key areas of focus including the alignment of departmental processes, supplementing the ease of use of processes and to implement a Decision-Making Solution that will support the PPMS process.
- Identified over 110 gaps identified in the process each with recommendations to address these gaps whilst supporting the 3 key areas of improvement focus.