Preparation and Planning
A kick-off meeting is held, during which the purpose, scope, methodology, and schedule are reviewed and agreed.
Why benchmark?
What is oil and gas benchmarking?
Benchmarking in the oil and gas industry refers to the measurement and pursuit of improving organisational performance by means of comparisons to the industry’s best. Historically, oil and gas operators seeking to achieve optimal performance of their assets have struggled with two key questions:
- How competitive are we?
- Where should we focus our improvement efforts and resources?
Why benchmark?
Oil and gas operators strive to attain Operational Excellence using a multitude of performance improvement tools as well as working to standards for quality, safety, environment and asset management. However, although these are highly valuable methodologies, they present several shortcomings.
- They fail to identify where improvement activities should be focussed
- They do not provide any insight into what is achievable
- They cannot determine optimum performance levels
Benchmarking solves these by allowing them to:
- Discover the potential performance level that they could achieve in their assets
- Calculate performance gaps and potential benefits of improvement
- Prioritise the allocation of resources for improvement based on this the return on investment
Step change your
performance improvement
Today, the leading oil and gas operators in the world use benchmarking to:
- Step Change their improvement efforts
- Set targets and budgets
- Drive performance improvement focus and culture
- Solve specific problems
- Build networks with like-minded peers
- Justify plans and proposals
Why Juran Benchmarking
Juran Benchmarking has been a world leader in oil & gas benchmarking since 1995. Since then, we have developed a world-class service based on superior methodologies, service quality, and global networks. Our difference is underpinned by five factors:
Client-centred approach
Our approach puts our clients and their needs at the centre of everything we do. We offer unrivalled flexibility and the ability to customize our services to fit your strategy.
Proven track record
We count amongst our trusted clients oil majors, the largest NOCs, and independents around the world. Juran Benchmarking delivers results and has the track record to prove it.
Industry leading databases
- Participants from 73 countries
- Over usd 24 billion opex benchmarked
- Over 1000 assets benchmarked across value chain
Specialist industry expertise
We are oil & gas benchmarking specialists, not generalists who benchmark. We understand your business and speak your language.
Best practice focus
Beyond benchmarking, our approach focuses on promoting collaboration and best practice sharing amongst our network of clients.
The Juran Benchmarking Process©
Our approach
Preparation and Planning
Benchmarking Training
Data Collection and Validation
Data Normalisation
Data Analysis and Reporting
Company Management Presentations
Sharing Leading Practices
Gap Closure
Benchmarking Training
A benchmarking training workshop provides each participant with a detailed understanding of the benchmarking, the metrics to be used and their definitions prior to data collection commencing.
Data Collection and Validation
Each participating asset completes a data collection document and returns it to Juran Benchmarking by the agreed date. Help Desk support is provided during the entire data collection process such that any client questions are answered promptly. All data is thoroughly validated through our rigorous and unique three-stage validation process to ensure accuracy prior to analysis.
Data Normalisation
The challenge in any benchmarking program is to ensure that performance comparisons between participating assets are made on a like-for-like basis but how can this be achieved for assets that are of differing sizes and designs? It is critical to reflect the drivers of cost and workforce numbers, that is the installed equipment that must be operated and maintained, in any effective normalisation approach. The Juran Complexity Factor® normalisation methodology does just this. Our unique and highly effective methodology, developed over more than 30 years using empirical industry data, is statistically proven as a highly effective way to normalise the performance of oil and gas assets. Using this approach, benchmarkers can be confident that direct comparisons between assets of differing technical complexity and size are made on a truly like-for-like basis, are valid and therefore result in actionable findings.
Data Analysis and Reporting
Juran Benchmarking will analyse the data, develop a comprehensive suite of charts and tables and prepare a detailed written report of the benchmarking results, tailored for your company and including a company-specific performance gap analysis. Uniquely the comprehensive report includes around 200 key performance indicators examining all aspects of your asset’s operational performance.
Company Management Presentations
A detailed post-report debrief presentation of the benchmarking analysis is delivered to the company management team providing an excellent opportunity to communicate the findings of the benchmarking. Presentations are made either face to face at company premises or via an online meeting.
Sharing Leading Practices
Following the benchmarking analysis, Juran Benchmarking will coordinate Best Practice Forums, Industry Surveys, and Special Topic Studies to facilitate the sharing of leading practices, innovations, technologies and also experiences that have helped them succeed in becoming pacesetters.
Gap Closure
Avoid hiring expensive business consultants- deliver data driven action plans utilising the benchmarking results. Through our Gap to Potential workshops, Juran Benchmarking will work with your company to support you at the start of your improvement journey. Together, we will develop a detailed action plan of how to implement improvement activities to close the gaps identified in the benchmark, enabling you to realise a return on your investment.
Take a look at our Program Overview
Frequently Asked Questions
Can meaningful like-for-like comparisons be made between completely different facilities and assets?
Historically, comparisons between assets have been made on the basis of throughput volumes or capacity. Whilst unit cost metrics are commercially important and give an indication of competitiveness, they are not a good method for comparing efficiency between assets and may lead to highly misleading results. To overcome this, Juran Benchmarking has developed a proprietary methodology: the Juran Complexity Factor®.
Can the benchmarking account for regional differences?
Juran Benchmarking understands that regional factors will likely influence the performance of an asset. To account for this, our benchmarks make use of regional peer grouping as well as econometric normalization methodologies.
How much does it cost to participate in a benchmarking program? Is it a worthwhile investment?
The Juran Benchmarking historical database show that, on average, the cost of participation in a benchmarking program is between 0.3 – 0.5% of the cost improvement opportunities identified. Meaning that, even if a participant were to only realize 1% of the improvement opportunity identified, it could expect to receive a substantial positive return on investment.
How long does it take to get results?
A typical full asset benchmark will deliver results in 12-16 weeks. However, the time taken will vary between companies, from as little as 6 weeks to as long as 6 months, depending on the urgency of each participant’s needs.
How do I know my data will be managed securely and confidentially?
Benchmarking does. We ensure all benchmarking programs are compliant with anti-trust / competition law with all participants signing a confidentiality agreement and all activities being undertaken in line with the Benchmarking Code of Conduct. We have developed all the tools and procedures necessary to ensure data security, through the use of robust secure portals and data encryption.
Will the benchmark align with our own KPIs?
Inter-company benchmarking programs can only work if all participants are benchmarking using a common set of KPIs developed using standardised definitions. Juran Benchmarking, in collaboration with major oil & gas operators, has developed metrics models that closely align with the most common and important KPIs used by the industry. Moreover, Juran Benchmarking routinely works with participants to ensure alignment of the KPIs with their own.