This document summarizes a project to improve the process for installing pipe spools at gauge setting slots. The current process involved scheduling each spool installation individually, requiring well isolation for each. The improved process adds spool installations to planned choke inspections and other maintenance, avoiding redundant isolations. This reduced down time and costs. Financial analysis projected $58,000 in monthly savings, with a total annual financial benefit of $126,000. Metrics were provided to track safety, quality and other impacts. Lessons included improved communication to combine work scopes. The process change was deemed scalable across operations by similarly combining scheduled work.

1. © 2013 Chevron
TTA CY Spool Installation
DMAIC Control Phase Gate
Michael Anthony
Michael Job
TTA-MCK
June 2015

2. © 2014 Chevron
Problem Statement
 Over the past 3 years in Cymric, failures in Check Valves at Gauge
Setting slots have been leading to pipe wall erosion loss, causing
pipes to leak thus creating environmental and safety concerns for
operations, while also leading to down oil and maintenance cost, a
minimum of about $1500 per failure leak.
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3. © 2014 Chevron
Project Background
 CVX / KSI are required to change out existing check valves to pipe
spools on all active Diatomite wells in TTA-MCK.
 List was created of existing check valves on gauge setting slots that
needed to be changed.
 Project handed to KSI Maintenance for installation of pipe spools.
 CVX required to take well off production for spool installation.
Scheduling work with existing well shutdowns avoids doubling downoil
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4. © 2014 Chevron
IPO
4
+
Low
0
KSI Crews,API
Spools Complete,Down Oil
Spools
Choke Inspection Queue
Outputs
Inputs
Process:
Spool Installation
Goal
Down Oil
($/barrel)
Safety
(TRIR)
Weather
Check Valves:
Sell / Return for
refurbishment

5. © 2014 Chevron
Current State
 Spool installations scheduled for maintenance crews to do individually
based off issued work-orders for each well
 Well isolated previous to each scheduled installation
 KSI crew mobilize, issued permits, isolate / loto, and demobilize for
each spool installation
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6. © 2014 Chevron
Future State
 Spool installation added on to choke / temperature inspections or
other Maintenance work occurring on wells that need spool
installations
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7. © 2014 Chevron
Sustainability / Scalability
Sustainability
 KSI / CVX continue to identify opportunities to eliminate redundant
work
 Spool installations continue to be scheduled with other maintenance
work to avoid double isolation and well downtime
 When Diatomite inactive slots are brought back online check valves
are replaced
Scalability
 All CVX operations examine scheduled work and how to best
combine existing work to eliminate isolation and well downtime
 Combine PM’s, Repairs, Maintenance / Construction Work that have
the same isolation points or permits issued
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8. © 2013 Chevron
Financial Verification
8
Month
1. Spools
Installed
2. Capital
Avoidance
3. Oil LS Price 4. Barrels Saved
5. Down Oil
Avoidance
6. Valve
Refurbishment / Sale
7. Total Per
Month
8. AFB
November 2 325.60$ 56.15$ 52 2,901.3$ 3,226.9$ 3,283.0$
December 16 2,604.80$ 36.30$ 413 14,984.6$ 17,589.4$ 20,872.5$
January 18 2,930.40$ 29.30$ 465 13,624.5$ 16,554.9$ 37,427.4$
February 14 2,279.20$ 35.67$ 362 12,898.90$ 15,178.1$ 52,605.5$
March 8 1,302.40$ 31.77$ 207 6,565.80$ 7,868.2$ 60,473.7$
April 6 976.80$ 41.50$ 155 6,432.50$ 7,409.3$ 67,883.0$
May
June
July 58,498.20$ 58,498.20$ 126,381.16$
August
September
October
November
December
January
(8) AFB: Project Total
(1) Spools Installed: Monitored by KSI Superintendent, reported installations based off workorders complete
(3) LS Oil Price: Based off CVX LS monthly oil price
(4) Barrels Saved:
Assumptions
(5) Down Oil Avoidance: Oil LS Price xBarrels Saved = Down Oil Avoidance
(7) Total Per Month: Capital Avoidance + Down Oil Avoidance

9. © 2013 Chevron
Non-AFB Verification
9
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of Measure
HES At risk behaviors Workers' Compensation Costs Hours
Touch Points Loss of Containment
Distance Driven Compliance Rate
Risk Exposure TRIR
Risk Exposure inference Rate DAFWR
Time Between Motor Vehicle Crash First Aids
Risk Priority Number Near Misses
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of Measure
Quality Turn over rate Sigma level Percentage
Unplanned Absenteeism Rate First Pass Yield
Ideas Generated Mean Time to Repair
Personnel Participating Mean Time Between Failure
Tool Utilization Preventive Maintenance
Standard Operating Procedures Handoffs
Cp: Potential Process Capability Decision / Approval Points
Cpk: Actual Process Capability Recycles / Rework
Reliability Standardization
Availability Proportion Defective
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of Measure
Time Cycle Time Non-value Added Process Steps Hours
Wait Time Value Added Time Rate
Man Hours Operational Effectiveness Rate
1 HR Per Spool
Isolation
0 HR Per Spool Isolation
Total # of Check Valves
Installed x1 HR
Turnaround Time Production Acceleration
Overtime Lead Time
Throughput time Process Cycle Efficiency
CATEGORY METRIC METRIC BASELINE AFTER IMPROVEMENT Unit of Measure
Cost Implied Future Value Early Payment Discount Hours
Labor Productivity Space Utilization
Cost Per Transaction Full Time Equivalent (FTE) Value
Assumptions
Total of 192 Spools must be replaced 1 HR x 192 Spools

10. © 2013 Chevron
SJVBU Lean Sigma Project Summary for Adoption Sharing
Before:
 Check valves are required to
be replaced with spools
 Spools installations
scheduled and installed
After:
 Spools installed with other well
and gauge setting shutdowns
 Spools installed with choke
inspections
 1 hr. gain in time required to
install spool with process.
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Lessons Learned, Predicted AFB, and Scalability Summary:
• Lessons Learned: Communication between foreman and engineers enables combination of
work to avoid additional shutdowns
• AFB: $150,000
• Scalability: Combining work through-out departments and between foreman
Graphic(s) or Picture(s):
Before
After