Lean office approach to the contracting of technical service providers in the oil and gas industry

Abstract

This study applies lean office principles to reduce lead time in contracting specialized technical service providers by eliminating waste, simplifying procedures, and fostering continuous improvement. An action research design was adopted. The current process was examined through value stream mapping based on interviews, procurement databases, and historical records covering 35 contracts. The analysis identified value-added and non-value-added activities and supported the design of a future state map. Microsoft Power Apps® was used to automate service requests, validation, approvals, and document management, improving information traceability and visibility. Lean tools including kanban, poka-yoke, standardized checklists, digital 5S, and root-cause analysis were implemented to address waiting, defects, overprocessing, unnecessary motion, time, and inventory. The current-state VSM showed a total lead time of 72 days (1729.9 h), whereas the future-state VSM projected a total lead time of 27.66 days (633.8 h). This corresponds to a potential reduction of 44.4 days, or 1066 h, representing approximately 61.5% of the current-state lead time. Workflow integration also reduced redundant approvals, incomplete proposals, manual file handling, and excessive email communication. The findings show that combining lean office practices with low-code digital automation can improve transparency, agility, and reliability in complex administrative workflows. The study extends lean applications beyond manufacturing and provides a practical framework for procurement processes in capital-intensive industries subject to stringent compliance and cross-functional coordination requirements.