Value of Competency and Value of Competency Assessment
- Timothy L. Nieman (PetroSkills LLC) | John Schuyler (PetroSkills LLC) | J. F. Brett (PetroSkills LLC)
- Document ID
- Society of Petroleum Engineers
- SPE Economics & Management
- Publication Date
- January 2014
- Document Type
- Journal Paper
- 28 - 39
- 2014.Society of Petroleum Engineers
- 4.3.4 Scale, 6.3.3 Operational Safety, 1.6 Drilling Operations, 6.1.5 Human Resources, Competence and Training
- training and development, risk and decision analysis, safety, value of information and control, competency assurance
- 2 in the last 30 days
- 420 since 2007
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What is the value of a competent engineer? How can we be sure that an engineer is actually qualified? Because the big crew change progresses and because regulators worldwide are beginning to require operators to assure the competency of people working in petroleum operations, these questions are becoming increasingly important. We present an approach to address these questions by looking at the value of competency and competency assurance with probabilistic models. Valuing competency improvement is a value-of-control (VOC) problem, common in such areas as project risk management and risk-based maintenance. Value-of-information (VOI) problems are similar. We demonstrate how to calculate VOC and VOI with decision trees and Monte Carlo simulation. We selected well design as the example application throughout. The value of a competency assessment is first demonstrated with a decision-tree VOI analysis. With input judgements that we believe are reasonable, the analysis shows that competency assessments are likely underused. A more detailed well life-cycle model uses Monte Carlo simulation for the stochastic (i.e., probabilistic) calculations. Here, we illustrate a model of training, a well-design process, and multiple review and execution stages during drilling, completion, and production operations. The model features a competency scale, and VOC is shown by valuing incremental competency improvements and an optional peer review. Another VOI example is competency assessment for a junior engineer. Similar simulation models can help management optimize decisions involving staffing, type and days of structured training, work-process design, and project-design review stages. In addition to reducing the chance and impact of defective engineering, assessments provide important feedback to the engineer as learner, tools for planning training and development, organizational learning, risk management, construction, and safe operations. We show that VOI and VOC analyses--long used for exploration decisions--can be applied throughout the information processes used in planning and managing processes.
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