co-op training report - industrial engineering

I wish to express my sincere gratitude to all who helped me to finish my coop in a perfect way.

Also, I’d like to thank Allah for helping me to achieve up this level and to success in life.

I greatly appreciate the helping and encouragements by Dr. Anas Vaqar, my academic coop advisor to finish this report in the best way.

Also, I’d like express my deepest appreciations to Dr. Samir Al-Amer (Coop Coordinator) & Dr. Nabil Nahas for giving me their golden advices to provide this report in the proper way.

I’d like to thank Mr. Tareq Addi, my Coop supervisor in schlumberger, for giving me the full opportunity to work with the logistics team during my Coop period. Also, I’d like to thank logistics team for their acts & supports as well.

I’d like to thank my family and friends for their moral support which mean a lot for me.

I gained a lot of experience and learnt many things from this experience.

I am lucky that I’m graduating from King Fahd University of Petroleum and Minerals.

Thanks again to all who helped me.

Schlumberger (Slb) is a multinational organization with more than 50,000 employees of 75 nationalities in 100 countries. The two major business segments of Schlumberger Limited are Oilfield Services and Measurement and Systems. Oilfield Services includes Wireline, Testing and Seismic and Drilling and Pumping. Measurement and Systems includes Schlumberger Industries and Schlumberger Technologies. Schlumberger in Saudi Arabia has different locations such as in Kafji, Dhahran and Odhailiah. However, there are two categories of Hubs, one is called Gold hub, which is the main one and other is the regular hub. The Gold hubs are in Husten, Paris, Singapore, Tokyo and Dubai. Also, there are many branches of this company in Middle East area, such as in Bahrain, Oman and Qatar and Jabal Ali (UAE). Schlumberger has principal offices in Paris, Houston, London and The Hague. Revenue was $48.58 billion in 2014. Schlumberger stock is listed on the New York Stock Exchange, ticker symbol SLB, on the Euronext Paris, Euronext Amsterdam, London and the SIX Swiss stock exchanges. I was working in logistic section in DOSB (Dhahran Oil Service Base) and my job was International Export Specialist (IES) which keeps the record of the shipments and do follow up.

I was working in logistic section in DOSB (Dhahran Oil Service Base) and my job was International Export Specialist (IES) which keeps the record of the shipments and do follow up. In addition, I was dealing with two different segments D&M (Drilling and Measurement) and testing most of the time by taking the OB (Order Base No.) and executing the commercial invoice and the packing list from the Transportation and Management System. After all, I’ve started the negotiation with our contractor Aramex about shipping cost and lead time. Moreover, I have to follow up the outgoing shipments until arrive the final destiny.

Logistic is one of the best areas to work. The purpose of logistic is to balance the work. We keep the record of the item and track the product until it reaches their destiny. This section is mostly available in all manufacturing and all other seller and buyer companies and in import and export companies.

The following table is a sheet where they kept the record of row labels, also the cost at different months. Row labels are ALS, GSS and DCS and so on. Also the grand total has been calculated as well. We can see that the huge amount has been paid.

In the following table is a Nub shipment sheet. It has been delivered by air, road courier and sea. This data is made from January to December. By seeing this sheet by road is the popular among others, to send the products.

This is also a T&M, which is transportation and management. Here we also have the cost for one year. We can see that we have agent cost, air freight and courier freight and so on. Then we have the grand total.

This is sheet is showing about voucher details. At which date it was issued and what is the voucher ID. Also invoice details, invoice value and invoice ID and so on.

This is sheet is basically about shipment details, where they keep the record of products, such as, TR_number, Gold or Not Gold, shipment number, shipment type, and shipment weight, import or export, destiny and so on.

In table 6, it is showing us about item details and payment entity details. The one on the left is the item details, where it shows the information about item type, item serial number, item ID, and item description and so on. See the detail

The one on the right is showing about payment entity details, such as, payment entity details, payment ID, paying legal entity, paying legal entity name and so on. See the detail picture of it in table 7.

In table 8 we have the record of recharge details, where it keeps the data about recharge flag, recharge ERP ID, and recharge legal entity, recharge legal entity name and so on.

Table 9 is showing about filters by geography and segment. It keeps the data about company, accounting unit, activity code, area, GM, sub GM and SEG and so on.

The previous table 10 is showing the information about the NUB by Cost of Aramex Company. We have agent, air freight, courier freight and so on. Also the grand cost has been calculated as well. See table 1.

There is a filter option where it shows the different cost. See the tables below:

This table 14 shows all the payment for each one of them. As we can see that the freight cost of Aramex is the highest among others. This data is represented graphically, where it shows combination of all the cost. This table is basically showing the T&M cost by segment. See the graph below.

The X-axis is representing the row labels and Y-axis representing the cost. From this graph, we can see clearly that Aramex has the highest cost, which are 3,298,448.61.

This is ARAMCO excel sheet, where they keep the records of the person. For example, client legal entity, contract expiry date and contract value in US dollars and so on.

This commercial invoice shows the information about the product when it is sent. They have included shipment form where they write the address, name and phone number, other details, and consignee and many others useful information. See table 15.

Table 16 shows form which used for packaging list. The information required is shipment ID, report date, total shipment, and total weight and so on. All the necessary information is written in this form, including the ship unit number.

This is the map of entry and exit port. The products are sent through causeway and by air to different hubs. Those ones which are circled are the hubs. The causeway is connected with Bahrain. The import /export are done through this causeway.

These are the transportation trucks, which transfer products from one place to another. This is an Arabian Gulf coast and this route is used for trading. See figure 5.

Figure 14 show the route connects the UAE and Saudi border at Ghuwaifat. These are the trucks, which are used for transportation.

This is the location of Schlumberger MI Swaco. It is located near the Novatel hotel-Dammam. This picture was taken through Google map. This is another segment for mud engineering. They order some chemicals and explosive shipments form the DOSB (Dahran Oil Service Base).

There are different types of vehicles which should be available, for example, trucks and trailers that are suitable to carry heavy and different types of goods. There are some common vehicles which are only used for this purpose also in our region. There could be a variation between dimensions and loadable weight. See the figures below.

This is a 40’ box trailer. Its length is 12.50m, width 2.40m and height is 1.75m (max height from the ground 4.50 m). Loadable weight is 15-20 tons and level from the ground is 1.30 m.

This is 40’ European truck. Its length is 12.50 m, width is 2.40 m and height is 1.80. Maximum height from the ground is 4.50 m. Loadable weight is 15-20 tons and level from the ground is 1.30 m.

This is reefer (regular) truck. Its length is 11.00-11.20 m. Width this 2.20 m, height 1.80-2.00 m. Loadable weight is 15 tons and Controlled temperature is -20 /-30 degrees Celsius. See figure 19.

This is a flatbed truck, with length of 12.50 m, width 2.40 m and height 1.75 m. Maximum height from the ground is 4.50 m. loadable weight is 15-520 tons and level from the ground is 1.30 m. see figure 12and 13.

This is a loader (low-bed) truck. Its length is 12.50 m to 30.00 m. width 2.40 m up to 4.00m and height is 1.75m. Maximum height from the ground is 4.50 m. loadable weight is 20 tons up to 150 tons and level from the ground is 0.80-0.90 m. See figure14 and 15.

LAND:

AIR

SEA

This is a permanent flow process chart. This scenario used to export assets and equipment, which are loaned and required on urgent basis. The nonrefundable customs are paid to the customs authority in this case. There are some requirements, which are: Commercial Invoice (CI), Certificate of Origin (CO) and Packaging List (PL). Generally, if the cost of the tool is ≥ $20,000 move the shipment as permanent. However, there are some delays, which will be discussed later in the report.

This is a temporary export process chart. In this scenario, the approval of customs management is to be done, when exporting the loan out assets. However, for a set of usually one year, which is 12 months. If we discuss about the general requirements, these are serial number and the country’s origin. This must be visible all the time permanently marked to bottom or surface of each product. Then customs do the visual inspection to match the details, which are written on the invoice. One more thing the products are temporary exported on a single commercial invoice and. In case of re-export, the tool (shipment) must return from the same gateway. For example, any temporary re-export shipment going from KSA to UAE through Ghwaifat border must return from the same gateway. However, there is custom duty about 5% of the total cost of the tool.

The problem is the delay of the shipment. There is a certain time that supplier has to deliver. After that he will be late because the registration system will not accept late shipments unless there is approval from the dispatcher office.

· The shipments are arrived on time (maximum time to deliver is from 7 a.m. to 8 a.m.).

· Insure that the safety and the quality of the shipments are fine.

The delays were observed carefully and after that it was found that shipments reached its destination after the due date. So we used six sigma tools the find out the root cause of these delays and we construct a fish bone diagram.

These are the causes which are mentioned in this fishbone diagram. It helps to reach the root of the problem and then eliminate one by one.

There is another important factor. That is the printed documents. Sometimes the documents are not printed very well. This also can increase the delay and misunderstanding of information. See the figures below.

We cannot read the numbers or given information clearly. Transporter can easily make a mistake. As a result, delay will occur or he will deliver the products to wrong customer or he will mix the items such as inter change.

In six sigma course, I have leant about how labors do mistake easily. There are several reasons some of them are, non -serious labors, untrained labors, driving in a manner that damage the products and so on.

To avoid such kinds of problems, Six Sigma plays very important role in it, such as, checking the correct paper work, because these can be human errors. If something goes wrong, then start the process from the beginning. Also keep the record of it so it helps next time to understand and also to correct any similar issue. Poka Yoka are the two words, which are used for this purpose, to reduce the human errors.

Also quality of packaging and reduce the unnecessary activities to complete the task and reduce the variation. Because if it increases then quality decreases.

· No pre-alert or notification for the coming truck to avoid the jam inside the base (DOSB) and to follow the exact process-map.

Suggestion :

As mentioned in the flow chart, the Aramex team should follow up with shipment and give notification to the reception team in the base for the coming truck (at least 24 hours before offloading)

· Most of the invoices or the documents are not clear (Low ink level).

Suggestion:

Aramex team should use a digital printer instead of scanning the documents to provide the service in a high quality and professional way.

· No double check for the AWB no. from Aramex guy before offloading which may lead to mess.

Suggestion:

Aramex guy should check the AWB no. before loading and double check before offloading the shipments to avoid the missing any box or mess situation.

· Some defective boxes and containers are delivered to the base without fixing.

Suggestion :

Schlumberger as major client of Aramex is expecting high quality service. So, Aramex should fix any defective box before delivering to the final destination, unless the damages were from the customs or the origin destination only in the tools inside the box. In this case they should inform the logistics team to solve this issue.

If the order arrives late then, do a study about it, and check whether it is a supplier fault or not. If the supplier delivers the order late, then the company must penalized the supplier.

Also inform the company, when delivering the package. Sometimes the company is taking another order from another company, and both arrive at same time. One informs but other does not. In this case it will be a problem for a company to handle both at a time.

Company, should make it clear to Aramex that the package must be in good condition. If the packaging material is damaged and the boxes are squeezed from some sides, company must take some sudden action against it. If there is any broken box, it must be replaced, before it delivers.

Aramex Company must make some plane regarding bonus for the suppliers. Suppliers might drive a truck in bad manners or say fast. When they drive fast there is a high chance of damages to the items. Also they deliver the order after the time limit. If a company makes some policies that if a supplier always delivers the items on time and without any damage. At the end of the month he must be given some bonus as a reward. This will help others to do their job effectively.

Safety is one the important issue in all type of work environment. Safety can be about products, human and on many others things. There are certain rules for every work environment. Those rules must be followed. If any violation occurs, that company will be penalized. There are internal laws called OSHA (Occupational Safety and Health Administration). There are many rules and regulation for everything, labor’s rule, and packaging, safety equipment and for all industrial work.

In figure 25, we can see that the way they are handling the order is very poor. The materials inside could be damaged due to carelessness. If see the quality of boxes, it seems very poor. This is a violation of OSHA’s rules. Company will face a problem regarding cost. May be the company has to pay for this damage. It will affect their reputation badly. The boxes are squeezed and there conditions are bad. See the other figure for more clearance.

See the front face of the boxes in figure 26. By looking at this picture, it increases the chances for damage. And the person who orders this can complain about it to company. The quality of box does not seem to be a good.

This is a good instruction by the company. It helps the new person or let’s say new employee. It will guide him which truck is suitable for a particular product. I a person or a supplier is not following these instructions, he will be reported to a manager or safety department. It shows which both ways, wrong and right. Wrong with red color and tight with green. If any employee sees that the truck is not chosen properly for that particular material, he can send the incident report (RIR) to the management.

This project provides an overall understanding of how to improve processes through simple yet important worked-out examples. What I specifically cover in this project is about coming up with an existing method and make measurable improvement on it. During the period of my COOP in SLB-DOSB, I noticed that some of the processes are done in an inefficient way. And as system engineering student at KFUPM, I have to come up with a proper solution. I’ve addressed in this report one important issue that employee at Schlumberger face every day when they are coming to the main gate during the rush hours, which is the waiting time to enter the base. I believe there is no better way to address a problem than to contribute to its solution, thus improving our daily lives.

Main objective of this project is to illustrate new yet simple ways to make the process work in a better and more efficient way than before, by reducing the waiting time for each entering car and minimize the number of security men at the gate which will also safe cost for the company.

I’ve noticed that the traffic jam is in the rush hours which are in the morning (7 a.m-8 a.m.) & lunch break (12 p.m-1 p.m.). So, I took the data at the beginning and end of the rush hours instead of doing it at day-shift and night-shift.

In term of limitations, I can’t change the layout of the main gate and that won’t give us many choices for improvement.

I’ve focused on solving traffic jam problems by studying two different alternatives using one time measurements which is DTS (Direct Time Study).

Direct time study (DTS) is the direct and continuous observation of a task using a stopwatch or other timekeeping device to record the time taken to accomplish the task. While observing and recording the time, the worker’s performance level is rated. These data are then used to compute a standard time for the task, by adding an allowance for personal time, fatigue, and delays.

The current situation of checking cars entering the main gate is very old and need to be improved. At this point we will illustrate the steps of cars crossing the gate as we observed it.

The steps are as follow:

1- Car reaches the main gate.

2- Security checks the sticker.

a- If the sticker is valid, enter the Base.

b- Otherwise, return back to security building to get permission.

3-Security goes to room and press the button to open the gate.

4-Security closes the gate and returns to the original position.

· Time of each steps are described in the tables below:

After I took the observation, I illustrate the Pareto charts for analyze the major cause behind the current situation. Actually, I found the work element 1 (Car reaches the gate) is the highest frequency as shown in figure 29 because of the waiting time in the queue. However, after I analyzed the problem, we discovered that the major cause of delays is related to (security checking) as shown in figure 30.