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Optimizing OPEX and CAPEX Through Lean Capital Execution: Streamlining Tank Management to Improve Efficiency and Reduce Costs

Industry: Oil & Gas, Sustainable Energy

Service: Cost and Value Engineering

Service: Manufacturing

Service: Procurement

Parallaxe

Our Client

A 200 Mbpd (thousand barrels per day) refinery and midstream operation facing inefficiencies and high costs in its tank management program.

Parallaxe

The Challenge

The refinery was experiencing major inefficiencies in tank maintenance and execution, resulting in extended downtime and high costs. EFESO was engaged to improve planning, streamline contractor management, and enhance operational discipline.

  • Inefficient inspection planning: Frequent scheduling delays and poor coordination.
  • Quality and rework issues: Repeated repair failures increasing OPEX and CAPEX.
  • Contractor performance gaps: Weak accountability and visibility in execution.
  • Cost overruns: Ineffective bidding and scope control driving excess costs.
  • EHS risks: Insufficient field planning and supervision.
  • Communication breakdowns: Limited alignment between refinery teams and contractors.

Real Results Achieved Together

The Lean Capital and Tank Management Program enabled the refinery to enhance coordination, reduce labor intensity, and achieve measurable financial and operational improvements.

40%

Reduction in overall tank workflow time

25%

Reduction in tank out-of-service duration

$8M

annual value impact from sustained efficiency gains

Transformation Impact

  • Dramatically reduced downtime and improved planning reliability.
  • Established contractor command center for daily communication and progress tracking.
  • Streamlined workflows by eliminating 55 contractor FTEs and 35+ process barriers.
  • Strengthened safety, visibility, and accountability across all tank operations.
  • Sustained performance through leadership engagement and field discipline.
  • 18% reduction in contractor labor
  • 100% adherence to tank maintenance schedule
Parallaxe

Our Approach

EFESO deployed its Lean Capital and Tank Management Program to introduce disciplined planning, contractor alignment, and structured daily management.

Program Implementation

  • Launched Lean Capital and Tank Management framework to instill workflow discipline.
  • Established a core group of nested contractors for execution consistency.
  • Appointed a full-time tank planner and project controls resource for continuous oversight.

Daily Management and Visual Controls

  • Created a contractor command center with 20-minute daily huddles and real-time dashboards.
  • Designed execution lanes ensuring continuous progress across at least three tanks simultaneously.

Field Optimization and Operational Excellence

  • Conducted field observations to identify and remove non–value-added activities.
  • Streamlined tasks to eliminate redundant work and reduce contractor headcount.
  • Introduced Leader Walks to embed best practices and sustain behavioral change.

Related Services

Cost and Value Engineering

Rising costs demand optimization from design through production. We apply cross-functional value engineering, zero-based redesign, and continuous cost tracking to protect margins.

Manufacturing

Aging equipment meets rising costs and technology disruption. We transform operations through smart factory integration, predictive maintenance, and workforce capability building.

Procurement

Material costs and supplier volatility threaten profitability. We unlock savings through strategic sourcing, supplier collaboration, and digital procurement transformation.

Parallaxe

Facing Similar Challenges?

  • Struggling to reduce contractor costs and improve maintenance execution discipline.
  • Seeking to optimize tank or asset management workflows.
  • Aiming to minimize downtime and operational inefficiencies.
  • Looking to strengthen coordination and accountability in capital execution.
Contact our experts

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