https://doi.org/10.24928/2023/0145

A Framework for Optimizing Material Management Processes in Oil and Gas EPC Projects

Mahmoud Daghlas¹, Rachad Bou Nasser Eddine², Michel Tabet³ & Mayssa Kalach⁴

¹ME Student, Department of Industrial Engineering and Management, Maroun Semaan Faculty of Engineering and Architecture, American University of Beirut, Beirut, Lebanon, [email protected]
²ME Student, Department of Industrial Engineering and Management, Maroun Semaan Faculty of Engineering and Architecture, American University of Beirut, Beirut, Lebanon, [email protected]
³ME Student, Department of Industrial Engineering and Management, Maroun Semaan Faculty of Engineering and Architecture, American University of Beirut, Beirut, Lebanon, [email protected]
⁴Lecturer, Maroun Semaan Faculty of Engineering and Architecture, American University of Beirut, Beirut, Lebanon, [email protected], orcid.org/0000-0002-8997-391

Abstract

In the specialized engineering, procurement, and construction (EPC) oil and gas industry, the monetary value of procurement equates to more than engineering and construction combined. However, material management processes are yet to evolve from conventional push systems to more efficient ones. The application of lean concepts to eliminate the waste embedded in the material flow processes of construction projects has become a proven practice for reducing cost overruns and schedule delays. To this end, the objective of this study is to develop a framework relying on just-in-time delivery and pull systems to enhance material management processes in EPC projects. Namely, the proposed framework introduces changes to the responsibility matrix and sets time limits for the concerned material flow stages based on data analysis for electrical and control equipment of an oil and gas EPC project in the Russian Far East. The framework is then tested using a probabilistic Monte Carlo simulation. The results show a significant decrease in the storage cost, as an example of waste reduction. The framework provides a practical material management solution for EPC companies that minimizes non-value-adding durations and ensures a continuous material flow with continuous feedback and accountability loops.

Keywords

Supply chain management, design science, flow, integration, wast

Files

Reference

Daghlas, M. , Eddine, R. B. N. , Tabet, M. & Kalach, M. 2023. A Framework for Optimizing Material Management Processes in Oil and Gas EPC Projects, Proceedings of the 31st Annual Conference of the International Group for Lean Construction (IGLC31) , 1641-1651. doi.org/10.24928/2023/0145

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