|Publisher||Society of Petroleum Engineers||Language||English|
|Content Type||Conference Paper|
|Title||Total Quality Management for the Oil and Gas Industry|
|Authors||Kessler, F.A., Center for Effective Leadership|
SPE Annual Technical Conference and Exhibition, 3-6 October 1993, Houston, Texas
|Copyright||Copyright 1993, Society of Petroleum Engineers, Inc.|
Total Quality Management (TQM) is applicable to all oil and gas companies, including majors, independents, and service companies. Presented here are an overview of TOM, a brief history of TOM in Japan and in our industry, a report on Japan's oil and gas industry plans and progress, a discussion of the benefits of adopting this new management system, and a description of what is required to implement it. Examples of productivity and profitability improvements, as well as additional opportunities for improvement, are used to demonstrate the applicability of TQM to our industry. Calculation of potential profit improvements averaging three times current profit levels are used to illustrate the potential financial impact of this new management system to our industry.
What Is Total Quality Management?
Total Quality Management (TQM) is a management system made up of four basic components. These are (1) leadership, (2) teamwork, (3) a scientific approach to problem-solving, and (4) satisfying the needs of customers' who are both internal and external to the organization. The system is as applicable to the oil and gas industry as it is to any other.
TQM leadership provides the organization with direction, so that everyone knows where the organization is headed and how they can contribute. This type of leadership supports the experts, those who perform the work, in doing the work the way it should be done. TQM leaders remove barriers to working productively, and they do so honestly and fairly.
Almost all the work each of us does has an impact on the work of someone else, and, likewise, the work of others impacts our work efforts. By working together in teams, we can determine the best way to meet each other's needs and can get the work done the best way.
The TQM scientific approach to problem-solving includes concepts that we, as engineers and geoscientists, are all familiar with. These are (1) data- based decision-making, (2) the use of statistical tools, and (3) a structured approach to solving problems. Aspects of problem solving that may be different from our conventional approach include (1) viewing our work as a system of processes, (2) recognizing that recurring problems are symptoms of processes needing improvement, and (3) improving the process to fix the problems.
We all have customers--anyone who receives the products and services we produce.
|File Size||321 KB||5|