Managing the Tradeoffs: Similarities Between Managing New Product Development and Managing a Well Drilling/Completion Project

Abstract

TX 75083-3836, U.S.A., fax 01-972-952-9435. AbstractTo move and take action as quickly as possible, a development team must have a clear path and direction. It needs the best tools for the job and the ability to use them effectively. And it needs positive motivation to finish the work on schedule while achieving acceptable performance and quality goals. One of the potential "chokes" to the speedy delivery of both new products and new oil/gas wells is the decision-making process -the on-going debate between various interested and influential parties within the organization as to which aspects of the end product are most important. Multiple or conflicting priorities are often overlooked by planning teams when developing project schedules, budgets, performance objectives, and milestones. This frequently causes frustration, delays, and disappointments during and after the execution of the project.The authors draw on their own experience in new product development (downhole tools) and subsea well delivery. The roles and responsibilities of a cross-functional new product development team are similar to those of an operator's onshore support and offshore operations teams. For both types of development project, risk mitigation and project execution are best achieved by utilizing the skills and experience of a highly competent multi-disciplinary team using a well-planned and documented decision-making process. These teams benefit by inclusion of key supplier technical experts as full-or part-time contributing members. The ability of the project execution team to consistently make value-added decisions rapidly, under pressure, is a key element of their success. Specific examples from a supplier's new product development process and from a recent major deepwater development project are used to illustrate the key concepts.

Improved Single-Trip Multistage Completion Systems for Unconventional Gas Formations

“…For developments that rely on suppliers for delivery of critical equipment, services, and/or technology, an important element of success is to include a technical representative from each major supplier. Additionally, a well-constructed development process, such as a stagesand gates (or "toll-gate") process, helps the team break the work into manageable pieces and to focus upon the deliverables that will lead to success at the next step of the project (Shaw 2004). …”