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Cost Reduction in the Upstream O&G Sector

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Cost Reduction in the Upstream O&G Sector

Course Cost £495 +VAT
Duration 2 DAYS
  • Delivering Maximum Value and Reduced Costs through Strategic Sourcing.
  • Develop and Implement Viable Practical Strategies on Procurement.
  • Understand the Need for Strategic and Innovative SCM Approaches.
  • Identify Opportunities for Short and Long Term Savings.
  • Learn Available Strategies to Reduce Costs in a Pragmatic Way.

Overview

The Cost Reduction Training workshop focuses on implementing practical strategies in procurement to reduce costs while maintaining quality, supplier relationships, and productivity in the Upstream business sector. Participants will learn innovative approaches to maximize value and identify cost-saving opportunities. The course covers topics such as process optimization, managing contracts, spend analysis, inventory management, and tools for cost reduction. Targeted at professionals in procurement, supply chain, project management, and finance within the oil and gas industry, the 2-day training aims to develop and implement cost reduction initiatives effectively.

Who should attend

Procurement/Supply Chain, Sourcing/Purchasing/Buying, Tender or Bidding Managers, Contract Managers, Cost Management, Commercial Managers, Materials and Inventory Control, Maintenance and Operations, Project Engineers and Project Managers, Finance.

Course Content

Delivering Maximum Value and Reduced Costs through Strategic Sourcing, Procurement and Supplier/Demand Management

COURSE OVERVIEW

This highly practical 2-day workshop facilitates participants to examine, develop and implement viable practical strategies on procurement of equipment, materials and services in the context of the Upstream business – which reduce costs and add value without compromising quality, supplier relationships, HSE and productivity.

COURSE OBJECTIVES

By attending this 2-day industry training workshop, participants will be able to:

• UNDERSTAND the need for more strategic and innovative SCM approaches in order to deliver maximum value at minimum cost;
• IDENTIFY opportunities within the procurement and contracting process for short and long term savings and improvements;
• DEVELOP and IMPLEMENT overall cost reduction initiatives and value realization plans;
• LEARN a range of available strategies to work with the supply chain to reduce costs in a pragmatic way;
• APPRECIATE invaluable tools and techniques on spend data analysis;
• HEAR and SEE real life examples of cost savings:.

TARGET AUDIENCES

This course is designed for all Upstream sector professionals who are interested in optimizing and reducing costs through strategic procurement and supply chain management including those with the following roles and functions:
• Procurement/Supply Chain
• Sourcing/Purchasing/Buying
• Tender or Bidding Managers
• Contract Managers
• Cost Management
• Commercial Managers
• Materials and Inventory Control
• Maintenance and Operations
• Project Engineers and Project Managers
• Finance
• Others who deal with Oil and Gas Procurement

COURSE TOPICS

DAY ONE

I. INTRODUCTION
• Defining Cost Reduction
• Cost Reduction vs. Cost Avoidance – Examples
• Direct Spend cost savings
• Indirect Spend cost savings
• “What’s in it for me?” –the key question.

II. PROCESS & PROCEDURES
• Process & Procedures – prioritising, optimising and rationalising
• Cost reduction through process mapping – Examples and Practical
• Standards and Specifications – the good, the bad and the ugly.

III. PRODUCTS
• Removal of “gold plated” Products – Case Study
• Alternative commodities review – Case Study
• Reuse, Reclaim, Refurbish, Recycle – Case Study

IV. SERVICES
• Time to service – are we ‘over servicing?’
• Resources minimisation – What do we actually need?
• Scheduling– how to optimise schedules
• Multi tasking and cross disciplines – Case study

V. MANAGING CONTRACTS
• Discounts –types and benefits – Example models
• Rebates–types and benefits – Example models
• Retendering – costs and benefits; market checks
• Re-negotiation – Group Practical
• Incentivisation – Practical

DAY TWO

VI. PROCUREMENT/PURCHASING
• Managing External Expenditure
• Outsource your tailspend – Example and Case Study
• Cooperative Procurement – Examples
• Demand Management – do we know what we really need?
• Delivery and scheduling – where and when do we really need it? Is early delivery costly?
• Negotiation skills set – what is needed? – Group Practical

VII. IMPORTANCE OF SPEND ANALYSIS
• What are you spending? How much? With who?
• On what?
• By whom?
• Reducing, consolidating, de-specifying, collaborating – Examples and Practical
• Curbing maverick spend – the internal problem
• Supplier rationalisation – Practical

VIII. INVENTORY MANAGEMENT
• Spares and parts – the necessary and the overkill – Releasing unused asset value
• Secondary market – sell those spares – Examples
• Secondary market – buy those spares – Examples

IX. TOOLS and TECHNIQUES
• Spend Analysis
• Whole Life Cost
• Contract/Supplier Criticality
• Supplier Positioning
• ‘Should” Cost models
• Cost Analysis
• Purchase Price & Cost Analysis Models
All the above demonstrated as examples/case studies with participants interactive practicals

Duration: 2 Days

Cost:£495 + VAT

Cost Reduction Training Scotland, England and onsite anywhere in the UK and Internationally.

Who Should Attend

Procurement/Supply Chain, Sourcing/Purchasing/Buying, Tender or Bidding Managers, Contract Managers, Cost Management, Commercial Managers, Materials and Inventory Control, Maintenance and Operations, Project Engineers and Project Managers, Finance.
Course Cost £495 +VAT
Duration 2 DAYS

Experts in Construction and Infrastructure Training

1000+

Training courses available

250000+

Course hours completed

50+

Expert trainers

CITB, APS, IEMA

Accreditation training centres

12

Accreditations

Testimonials

We’ve helped thousands of professionals grow their skills and confidence. Hear directly from the people who’ve taken our training courses.

The course was exceptional, well run in terms of delivery of information, IT online course but seamless. Very interesting examples of temporary works failures applicable to the businesses we worked in. Break out activities / group examples worked very well and were again well managed by the trainer. Fantastic course, I will recommend to others! Best course I have attended in years!

CITB Temporary Works Co-Ordinator

Black & Veatch

The trainers knowledge was excellent and I liked his examples and how he could relate them to every day relatable examples that we could all understand. Coming from different industries and sectors his examples were a common ground. It was handled very well virtually and the engagement worked with his questioning and answering

Contract Management

The Pension Regulator

The training was very interactive and the tutor was excellent in engaging every course attendee and ensuring that the course content was tailored to each attendees Organisation and Company requirements

CITB Temporary Works Awareness

Kone – H &S Advisor

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