Supply Chain World - Fall 2017 - 71

hess corporation manufacturing & energy
By applying lean principles,
operators like Hess and suppliers
are establishing a new industry
standard for the delivery of wells
in challenging deep water.

ate a culture where there is more
inter-supplier interaction without
the oil and gas company having to
be central to every interaction,"
MacLean explains.
Historically, the project owner,
in this case Hess, has directed all
of the traffic on a project. Through
the multi-supplier forum, Hess
stimulated the suppliers to learn
from each other and recognize
their interdependencies. The suppliers worked together to create
"Conditions of Satisfaction"(CoS)
where each company specifically
defined what they had to deliver in
their process step, which could be
to their competitor. The idea was
to avoid passing along a defect to
the next step of the process.
The approach is a major departure from the past, where suppliers
were used to aggressive competition. "The industry has not been
known for facilitating multi-party collaboration because every
company likes to maintain a lot
of control," MacLean says. "They
typically compete with each other,
but we all have worked together to
successfully break down barriers."
The key was engaging suppliers
early in the project's development.
"The time to get started on your
collaborative initiatives is when
you make your selections of key
suppliers," MacLean says. "It's
never too early, but I think sometimes it is too late."
Hess persuaded the suppliers to
cooperate by pitching them on the
opportunity to work on a major oil
development project, learn about
and implement lean in oil and gas,
and celebrating their shared success. "There's something to learn
every day, in every conversation if

we just open our minds to it," MacLean says. "If you can get above
believing you have all the answers,
by being open to the possibility
you could learn something from a
partner - another party that's an
equal - then everybody wins."
The approach is something
MacLean learned as she earned
her executive master's in consulting and coaching for change from
INSEAD, a renowned graduate
business school. There she learned
to appreciate the psychodynamics
and ego that lead individuals to
seek power or save face. MacLean
says the collaborative strategy
Hess is using on the Stampede
project helps to navigate around
those personality obstacles. "Now
all involved are beginning to see
the value in applying lean thinking
and tools," MacLean says.

Improved Planning
The sense that all the major
suppliers are "partners" leads to
better coordination among all the

activities that are going on around
the offshore operation.
The equipment for the drilling
rig is a supply chain all unto itself,
but the platform also has separate
delivery operations for maintenance work and the food and
recreation needed to support the
construction crews.
Hess has an extensive planning process designed to mitigate interruptions. Much of that
coordination occurs through the
company's project management
system, Industry 4.0, which is open
to all of the project's stakeholders.
"The industry is ripe with opportunity for enhancing the visibility
into each other's supply chain that
would provide further confidence
on the status of critical goods and
services," MacLean says.
The technology is bringing Hess
ever closer to its goal for complete
visibility. "We're not a fully interconnected supply chain yet, but
initiatives like this are a forerunner
to that," MacLean adds.
FALL 2017 Supply Chain World

71



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
Supply Chain World - Fall 2017 - 4
Supply Chain World - Fall 2017 - 5
Supply Chain World - Fall 2017 - 6
Supply Chain World - Fall 2017 - 7
Supply Chain World - Fall 2017 - 8
Supply Chain World - Fall 2017 - 9
Supply Chain World - Fall 2017 - 10
Supply Chain World - Fall 2017 - 11
Supply Chain World - Fall 2017 - 12
Supply Chain World - Fall 2017 - 13
Supply Chain World - Fall 2017 - 14
Supply Chain World - Fall 2017 - 15
Supply Chain World - Fall 2017 - 16
Supply Chain World - Fall 2017 - 17
Supply Chain World - Fall 2017 - 18
Supply Chain World - Fall 2017 - 19
Supply Chain World - Fall 2017 - 20
Supply Chain World - Fall 2017 - 21
Supply Chain World - Fall 2017 - 22
Supply Chain World - Fall 2017 - 23
Supply Chain World - Fall 2017 - 24
Supply Chain World - Fall 2017 - 25
Supply Chain World - Fall 2017 - 26
Supply Chain World - Fall 2017 - 27
Supply Chain World - Fall 2017 - 28
Supply Chain World - Fall 2017 - 29
Supply Chain World - Fall 2017 - 30
Supply Chain World - Fall 2017 - 31
Supply Chain World - Fall 2017 - 32
Supply Chain World - Fall 2017 - 33
Supply Chain World - Fall 2017 - 34
Supply Chain World - Fall 2017 - 35
Supply Chain World - Fall 2017 - 36
Supply Chain World - Fall 2017 - 37
Supply Chain World - Fall 2017 - 38
Supply Chain World - Fall 2017 - 39
Supply Chain World - Fall 2017 - 40
Supply Chain World - Fall 2017 - 41
Supply Chain World - Fall 2017 - 42
Supply Chain World - Fall 2017 - 43
Supply Chain World - Fall 2017 - 44
Supply Chain World - Fall 2017 - 45
Supply Chain World - Fall 2017 - 46
Supply Chain World - Fall 2017 - 47
Supply Chain World - Fall 2017 - 48
Supply Chain World - Fall 2017 - 49
Supply Chain World - Fall 2017 - 50
Supply Chain World - Fall 2017 - 51
Supply Chain World - Fall 2017 - 52
Supply Chain World - Fall 2017 - 53
Supply Chain World - Fall 2017 - 54
Supply Chain World - Fall 2017 - 55
Supply Chain World - Fall 2017 - 56
Supply Chain World - Fall 2017 - 57
Supply Chain World - Fall 2017 - 58
Supply Chain World - Fall 2017 - 59
Supply Chain World - Fall 2017 - 60
Supply Chain World - Fall 2017 - 61
Supply Chain World - Fall 2017 - 62
Supply Chain World - Fall 2017 - 63
Supply Chain World - Fall 2017 - 64
Supply Chain World - Fall 2017 - 65
Supply Chain World - Fall 2017 - 66
Supply Chain World - Fall 2017 - 67
Supply Chain World - Fall 2017 - 68
Supply Chain World - Fall 2017 - 69
Supply Chain World - Fall 2017 - 70
Supply Chain World - Fall 2017 - 71
Supply Chain World - Fall 2017 - 72
Supply Chain World - Fall 2017 - 73
Supply Chain World - Fall 2017 - 74
Supply Chain World - Fall 2017 - 75
Supply Chain World - Fall 2017 - 76
Supply Chain World - Fall 2017 - 77
Supply Chain World - Fall 2017 - 78
Supply Chain World - Fall 2017 - 79
Supply Chain World - Fall 2017 - 80
Supply Chain World - Fall 2017 - 81
Supply Chain World - Fall 2017 - 82
Supply Chain World - Fall 2017 - 83
Supply Chain World - Fall 2017 - 84
Supply Chain World - Fall 2017 - 85
Supply Chain World - Fall 2017 - 86
Supply Chain World - Fall 2017 - 87
Supply Chain World - Fall 2017 - 88
Supply Chain World - Fall 2017 - 89
Supply Chain World - Fall 2017 - 90
Supply Chain World - Fall 2017 - 91
Supply Chain World - Fall 2017 - 92
Supply Chain World - Fall 2017 - 93
Supply Chain World - Fall 2017 - 94
Supply Chain World - Fall 2017 - 95
Supply Chain World - Fall 2017 - 96
Supply Chain World - Fall 2017 - 97
Supply Chain World - Fall 2017 - 98
Supply Chain World - Fall 2017 - 99
Supply Chain World - Fall 2017 - 100
Supply Chain World - Fall 2017 - 101
Supply Chain World - Fall 2017 - 102
Supply Chain World - Fall 2017 - 103
Supply Chain World - Fall 2017 - 104
Supply Chain World - Fall 2017 - 105
Supply Chain World - Fall 2017 - 106
Supply Chain World - Fall 2017 - 107
Supply Chain World - Fall 2017 - 108
Supply Chain World - Fall 2017 - 109
Supply Chain World - Fall 2017 - 110
Supply Chain World - Fall 2017 - 111
Supply Chain World - Fall 2017 - 112
Supply Chain World - Fall 2017 - 113
Supply Chain World - Fall 2017 - 114
Supply Chain World - Fall 2017 - 115
Supply Chain World - Fall 2017 - 116
Supply Chain World - Fall 2017 - 117
Supply Chain World - Fall 2017 - 118
Supply Chain World - Fall 2017 - 119
Supply Chain World - Fall 2017 - 120
Supply Chain World - Fall 2017 - 121
Supply Chain World - Fall 2017 - 122
Supply Chain World - Fall 2017 - 123
Supply Chain World - Fall 2017 - 124
Supply Chain World - Fall 2017 - 125
Supply Chain World - Fall 2017 - 126
Supply Chain World - Fall 2017 - 127
Supply Chain World - Fall 2017 - 128
Supply Chain World - Fall 2017 - 129
Supply Chain World - Fall 2017 - 130
Supply Chain World - Fall 2017 - 131
Supply Chain World - Fall 2017 - 132
Supply Chain World - Fall 2017 - 133
Supply Chain World - Fall 2017 - 134
Supply Chain World - Fall 2017 - 135
Supply Chain World - Fall 2017 - 136
Supply Chain World - Fall 2017 - 137
Supply Chain World - Fall 2017 - 138
Supply Chain World - Fall 2017 - 139
Supply Chain World - Fall 2017 - 140
Supply Chain World - Fall 2017 - 141
Supply Chain World - Fall 2017 - 142
Supply Chain World - Fall 2017 - 143
Supply Chain World - Fall 2017 - 144
Supply Chain World - Fall 2017 - 145
Supply Chain World - Fall 2017 - 146
Supply Chain World - Fall 2017 - 147
Supply Chain World - Fall 2017 - 148
Supply Chain World - Fall 2017 - 149
Supply Chain World - Fall 2017 - 150
Supply Chain World - Fall 2017 - 151
Supply Chain World - Fall 2017 - 152
Supply Chain World - Fall 2017 - 153
Supply Chain World - Fall 2017 - 154
Supply Chain World - Fall 2017 - 155
Supply Chain World - Fall 2017 - 156
Supply Chain World - Fall 2017 - 157
Supply Chain World - Fall 2017 - 158
Supply Chain World - Fall 2017 - 159
Supply Chain World - Fall 2017 - 160
Supply Chain World - Fall 2017 - 161
Supply Chain World - Fall 2017 - 162
Supply Chain World - Fall 2017 - 163
Supply Chain World - Fall 2017 - 164
Supply Chain World - Fall 2017 - 165
Supply Chain World - Fall 2017 - 166
Supply Chain World - Fall 2017 - 167
Supply Chain World - Fall 2017 - 168
Supply Chain World - Fall 2017 - 169
Supply Chain World - Fall 2017 - 170
Supply Chain World - Fall 2017 - 171
Supply Chain World - Fall 2017 - 172
Supply Chain World - Fall 2017 - 173
Supply Chain World - Fall 2017 - 174
Supply Chain World - Fall 2017 - 175
Supply Chain World - Fall 2017 - 176
Supply Chain World - Fall 2017 - Cover3
Supply Chain World - Fall 2017 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue4a
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue3
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue3c
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue3b
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue3a
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue2
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue1
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue1b
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol7issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol6issue4
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol6issue3
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol6issue2
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol6issue1
http://www.nxtbook.com/nxtbooks/knighthouse/scw_vol5issue1
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2017fall
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2016winter_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2016fallwinter
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2016fall
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2016summer
http://www.nxtbook.com/nxtbooks/knighthouse/scw_2016spring_summer
http://www.nxtbook.com/nxtbooks/phoenix/scw_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/scw_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/scw_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/scw_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/scw_2015spring2
http://www.nxtbook.com/nxtbooks/phoenix/scw_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/scw_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/scw_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/scw_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/scw_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/scw_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/scw_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/scw_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/scw_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/scw_2013winter
http://www.nxtbookMEDIA.com