Abstract

One important business process in P.T. Caltex Pacific Indonesia, as in many Production Sharing Contractors (PSCs) in Indonesia, is the Drill a Well process. This process consists of identifying prospect wells, maturing the prospects, generating proposals, facilitating approvals, conducting the drilling activities and completing the wells, installing production facilities and lifting equipment, and finally placing the wells in production.

Considering the many activities involved in the Drill a Well process, the cycle time of the process is very important. P.T. Caltex Pacific Indonesia, especially the Bekasap SBU, has been concerned about the long cycle time of this process in the past. To sustain competitive growth of the business, P.T. Caltex Pacific Indonesia decided to address efforts to reduce the cycle time of the Drill a Well process by restructuring the process flow for improvements and reorganizing functions or units to support the restructured process. As a result, P.T. Caltex Pacific Indonesia managed to reduce the average cycle time of the Drill a Well process from 596 days to 214 days for Proposal Generation Cycle Time and from 892 days to 394 days for Total Process Cycle Time.

This paper describes the success story of P.T. Caltex Pacific Indonesia in improving the Drill a Well Process by restructuring around the process.