Lean Sigma Quality Improvement

Project Description and Agreement

Name of Project: Reducing Cycle time, Cost and Performance

Improvement for Balam South Fracturing

Business Drivers:
HES
Rig Cycle Time
Rig Cost
Production

Brief Project Description: Effective Rig Scheduling and mitigating

location issue in order to reduce Low Hanging Fruit in Balam South,
Eliminate unnecessary step and Serco Failure for Fracturing Performance
Improvement

Vision of success: HES 0,0,0, Reduce Cycle time, Zero Frac Failure, Oil
Production

Estimated Completion Date: 30 November 2007

Name Team Role Badge

Robert Radjagoekgoek Sponsor

Iwan Wijanarko Process Champion
M Abdunnasir H Member / Facilitator
Bambang Sutrisno Team Member
Donald Siahaan Team Member
Hendry Simamora Team Member
Mustamir Team Member
Other Resources:

Estimated COPQ of Current Process and Financial Goal

Plan: (list all of the tools / steps which will be used)

Train all Team Members on Variance Reduction

IPO (Input-Process-Output) diagrams.
Pareto chart
Establish customer driven specification
Process Flow Diagram
FMEA
Cause and Effect Diagram with variables labeled CNX.
Scorecard - Performance and Cost Metrics.
Run chart of key metric
Develop/update SOPs (focus on variance reduction)
Report on improvements achieved.
Financial Verification.

Leadership: I commit to support the successful completion of this project by:

Ensuring KR organization alignment with the project
Providing KR personnel and resources
Reviewing project progress on a monthly basis

Signed: ____________________ _________________

Name Date

Sponsor: I commit to support the successful completion of this project by

providing the following:
Lean Sigma training for the facilitator and team members
Coordination and resource support
Regular reviews and coaching of the project Expert / Specialist

Signed: _____________________ _________________

Name Date
 Facilitator and Team Members: We the Lean Sigma Project Team commit to
apply the quality improvement and statistical tools to this process with the purpose
of gaining the knowledge needed to make sustainable improvements in the key
metrics within 6 months.

Name Team Role Badge Signature

M Abdunnasir H Member / 22216

Facilitator
Bambang Sutrisno Team Member

Donald Siahaan Team Member

Hendry Simamora Team Member

Mustamir Team Member

1. Scope of The Project
Fracturing Job activity in Balam South, Telisa sand and Duri Sand
Pre-Treatment :

- Well assessment
- Pre-Operation Meeting and
- Rig Scheduling
Treatment :

- MIRU
- Rig activity before Frac,
- Fracturing, and
- Re-POP the well
After Treatment : Oil Production

2. Problem Statement