Documente Academic
Documente Profesional
Documente Cultură
SUBJECT:
Total Quality Management
DEPARTMENT:
Metallurgy and Materials Engineering
SUBMITTED TO:
Sir M. Sajid
SUBMITTED BY:
Shaaf Amjad
Umair Khalid
Ameen ur Rasheed
E13-304
E13-311
E13-327
DATE OF SUBMISSION:
25th of May, 2016
COLLEGE OF ENGINEERING AND EMERGING
TECHNOLOGIES UNIVERSITY OF THE PUNJAB
CONTENTS
1. OBJECTIVE
2. INTRODUCTION
3. DESCRIPTION
I.
AUDIT MANAGEMENT
II.
EMPLOYEE TRAINING
III.
STATISTICAL ANALYSIS
IV. SEZ SPECIAL ECONOMIC ZONES
V. DESIGN, DEVELOPMENT AND PLANNING
VI.
WORK ENVIRONMENT
VII.
CUSTOMER RELATED PROCESSES
VIII.
PURCHASING
IX.
NON CONFORMANCE CAPA
X. FMEA CONTROL PLANS
XI.
CONTROL, MONITORING AND MEASURING OF EQUIPMENTS
4. EXECUTIVE SUMMARY
5. SCOPE
6. RESEARCH METHODOLOGY
7. FINDINGS AND DATA ANALYSIS
8. DISCUSSION
9. CONCLUSION
10. RECOMMENDATIONS
11. FUTURE PROJECTIONS
1. OBJECTIVE:
2. INTRODUCTION:
From innovation through conveyance, companies of oil and gas are oil & gas companies are
apprehended very responsible for atmosphere, emissions of carbon and several health and safety
related commands. From all around the world, administrations are continuously narrowing the
rules and regulations of industries at the same time. Management of complex processes,
interactions of supplier and experimentation with the most leading technology such as IoT
sensors is very perplexing. Three most valuable chains in oil and gas companies have their own
strict rules of quality controls and other acquiescence requirements, these chains are given
below:
Upstream
Midstream
Downstream
The execution of performance in the early stages of these chains helps to indicate the quality of
output product when these valuable chains depend on each other. But, a clear cut methodology of
quality management and acquiescence are practically not existed. Dealers are apprehended
responsible for maintenance standards per ISO/TS 29001, but their capability to interconnect
presentation and deliver perceptibility downstream is limited by their supporting technology. For
working in such a highly-synchronized industry, oil & gas companies have not prearranged the
right devotion to quality and passivity. The worlds highest execution companies are taking a
sealed-loop methodology for quality management and obedience. Oil & gas contractors could
distinct themselves from the pack by following suit, accepting a modern innovativeness quality
management solutions with cohesive tools for controlling acquiescence, EH&S, sustainability,
GRC, and dealer quality.
3. DESCRIPTION:
I.
corrective measures to eliminate it. ISO 29001 suggest to at least have one audit annually.
Many renowned oil and gas companies such as CHEVRON, SHELL, BRITISH
PETROLEUM
II.
III.
INSPECTION: [1]
Timely inspections saves from disasters and losses. Inspections play important role in proper
operation of plants, machines etc. Inspections prolong life of working equipment and ensure
proper working which in turn ensure process quality conformance to standards. Oil and gas
companies widely use many inspection techniques for proper maintenance of Equipments in
use.
Rig inspections, pipeline inspections, nondestructive testing, Tubular inspections and many
more inspections are utilized at field to ensure proper operation of Equipments. On the other
hand ISO 29001 also suggests to do monitor the quality management system operations time
to time. It also suggests to utilize a proper and viable method to inspect it for quality
conformance deviations. The methods employed should have the capability to ensure
meeting of planned results.
Oil and gas companies are using statistical process control to obtain desires results. Some
software are also helping those companies to achieve their goals regarding inspections
IV.
V.
VI.
The organization shall determine and implement effective arrangements for communicating
with
Customers in relation to
Product identification and information
Product handling, enquiries, etc.
Customer response and feedback
VII.
PURCHASING: [1]
The organization should identify, implement and control the purchasing process to evaluate
the products its demands and total cost of purchased product. They satisfy its needs and
requirements as well as those of interested parties.
Purchasing processes should include
Identification of needs
total cost of purchased product, taking account of performance, price and delivery,
inquiries, quotations and tendering,
Verification of purchased products,
Selection of suppliers, including those with unique processes,
Documentation of purchase
Contract administration.
Nonconforming purchased products.
supplier control and supplier development
Assessment of risks associated with the purchased product.
Purchasing information:
Purchasing information describes about requirements of the product which is to be purchased.
VIII.
approval
its
involve
Requirements for qualification of personnel
Quality management system requirements (QMS)
IX.
X.
4. EXECUTIVE SUMMARY:
The purpose of the research was to analyze different factors of quality management in oil and gas
sector. In this regard IS0 29001:2010 is consulted which is constructed for employing quality
management especially in oil and gas industries. According to the ISO 29001: 2010 major
emphasis of TQM in oil and gas industries are on Safety, Environment, and Training of
employees, Inspection and customer satisfaction. In our project we analyzed TQM in top oil and
gas industries of the world such as EXXON MOBIL, SAUDI ARAMCO, CHEVRON,
BRITISH PETROLUEM, SINOPEC and PETROCHINA. Two oil and gas based industries
of Pakistan namely PAKISTAN REFINERY LIMITED and TOTAL PARCO were analyzed
for TQM in their operations. Data for research was collected from the respected profiles of the
companies to analyze the factors on which they are emphasizing to achieve the utmost level of
quality in every aspect related to their industry.
5. SCOPE:
The project focusses on finding the various factors that affect total quality management in oil and
gas sector. As the nature of the work in oil and gas sector is different from others. Techniques for
quality management also vary up to some extent from other fields. In this regard, our research
will help to understand the strong influencing factors that one of the major oil and gas
manufacturers are following. This project will also give a brief comparison of the HSEQ policies
of Top leading oil and gas companies currently in the world. This comparison will enlighten our
view about the factors of main focus relating quality management and excellence in those
industries. The project also focusses on standards to which companies are certified to know about
various features of those standards that are helping various multinational companies to gain a
respectable name in the world regarding quality. ISO TS 29001:2010 titled Petroleum,
petrochemical and natural gas industries Sector-specific quality management systems
Requirements for product and service supply organizations is also summarized in this
paper.
6. RESEARCH METHADOLOGY:
Data for research on Quality management in oil and gas sector was searched, collected and
analyzed from following mentioned sources.
ISO TS 29001:2010
ISO TS 29001 is a quality assurance document especially for integrating quality standards in
petroleum related industries. The document was consulted to obtain information regarding
different perspectives regarding quality management tin oil and gas.
INTERNET
Top oil and gas companies of the world i.e. EXXON MOBIL, SAUDI ARAMCO,
CHEVRON, BRITISH PETROLUEM, SINOPEC and PETROCHINA were analyzed for
their quality management policies. In this regard HSEQ (Health, Safety, Environment and
Quality) policies of each company was investigated through their web profiles available on
internet. Two Pakistan based companies namely PAKISTAN REFINERY LIMITED and
TOTAL PARCO were also analyzed for their TQM operations.
INTRODUCTION:
TOTAL is a one of the leading oil based companies in Pakistan and is providing petroleum
related products to its customer with collaboration with PAK ARAB REFINERY LTD
(PARCO) which is a one of the largest companies of Pakistan in energy production.
PARCO was formed in result of a collaboration between Government of Pakistan and the
Emirate of Abu Dhabi in 1974.
MOTIVES OF QUALITY MANAGEMENT IN TOTAL PARCO
1.
2.
3.
4.
5.
6.
7.
8.
2. CHEVRON [3]
INTRODUCTION:
Chevron Corporation is an energy based multinational company of America. Currently
established n more than 180 countries, Chevron specializes in natural gas, oil, geothermal energy
industries, crude oil exploration and refining and manufacturer of various chemicals and active in
more than 180 countries. As by 2014, Chevron is considered among the largest oil and gas
companies of the world
OPERATIONAL EXCELLENCE MANAGEMENT SYSTEM
In chevron, quality is attained by effective risk management which helps them to operate
reliably, efficiently and, most important, safely
Operational Excellence in CHEVRON
Operational Excellence is achieved in Chevron which are classified by them into 13 elements.
The Targets of Operational Excellence are met through processes and some of the international
standard being followed by the local management. These standards help to attain quality in the
processes.
1st Element: security of personnel and assets
2nd Element: facilities design and construction
3rd Element: safe operations
4th Element: management of change
5th Element: reliability and efficiency
6th Element: third-party services
7th Element: environmental stewardship
8th Element: product stewardship
INTRODUCTION:
British Petroleum is a British multinational company. Headquarter of BP is in London, England. BP is
considered among the top seven world supermajor oil and gas companies
Order Handling
Manufacturing
Logistics
Procurement
INTRODUCTION:
Pakistan Refinery Limited is a crude oil Refinery. It is situated on Karachi Coastal Hub,
Pakistan. PRL is adopting hydro skimming process to refine crude oil and meet the fuel based
energy requirements of Pakistan. Pants in PRL converts crude oil into a variety of distilled
petroleum products such as Furnace Oil, High Speed Diesel, Kerosene oil, Jet fuel and Motor
gasoline etc. Currently operating at two locations in Karachi at Korangi Creek and Kemari.
QUALITY MANAGEMENT IN PRL
PRL maintain and implement certified HSEQ Standards of ISO 9001, ISO 14001 & OHSAS
18001.
Role
INTRODUCTION
Saudi Aramco is an oil and Gas Company based in Saudi Arabia. It is a fully integrated, global
chemical and petroleum enterprise. It is worlds largest crude oil producer on the basis of the
capacity.
Quality assurance is ensured by inspections and choosing the right quality system
Quality monitoring is ensured by management to comply by the specifications and purchased
order conditions of Saudi Aramco
Quality control is ensured by the QA/QC supervisors to ensure conformance to the Quality
standards being employed in Saudi Aramco
Aramco Overseas Quality Management strives to attain global excellence in quality in EPC
Engineering
Procurement
Construction
6. EXXON MOBIL [7]
INTRODUCTION:
Exxon Mobil is a multinational oil and gas company based in America. Its headquarter is
situated in Texas. The company is the 8th largest company in the world based on revenue and
third largest on the basis of market capitalization
QUALITY MANAGEMENT IN EXXOM MOBIL:
Training of Employee
Safety Insurance of Employee
Environmental Stability
Delivery Management
7. SINOPEC [8]
INTRODUCTION:
SINOPEC is a the largest petroleum energy and chemicals company in China, The company is
state owned and its headquarter is in Chaoyang District, Beijing
Oil and gas exploration, refining, and marketing; production and sales of petrochemicals,
chemical fibers, chemical fertilizers, and other chemical products are included in Sinopecs
Business.
QUALITY MANAGEMENT IN SINOPEC:
PETROCHINA: [9]
8. DISCUSSION:
Analyzing from various perspectives, it is evident that quality management is a life line in oil
and gas industries. The success of an industry lies on the various disciplines that come under
the umbrella of the quality management. A research was carried out to find various
influencing factors regarding TQM in oil and gas industries in this regard. Information was
collected from internet from worlds leading oil and gas companys profiles.
In this regard it was found that ISO has given its standardization for maintain quality in oil
and gas companies in the form ISO TS 29001:2010. The tile of the standard was Petroleum,
Effective strategic quality planning efforts improve employee performance and also social
responsibility of the company.
9. CONCLUSION:
From above discussions, it can be concluded that by implementing Total quality management
system (TQM) to system, performance measures get improves. Proper implementation of all
aspects of TQM should be managed because each factor in TQM practices and procedures
improves different aspects of firm performances. Company should improve employee or
workers involvement/skill, firm structure and allocate sufficient resources to implement
TQM successfully.
10. RECOMMENDATIONS:
So the following are recommendations for companies and authorities who has practical
implementation:
The transition to TQM philosophy is essential in influencing the overall operations of the
organizations.
For effective implementation of TQM, the oil sector should develop a system for all
managerial and operational processes to measure improvements in its managerial and
operational performance.
Moving towards quality initiatives needs positive changes in management philosophy and
behaviors.
It is important to develop and re test the efforts of the research and development activities
across petrochemical companies within the frame of developing an internal culture which
could help to involve all the departments of companies.
Top management must be aware and thoroughly understand the essential concept,
principles, methods and tools of TQM philosophy or any other quality management
initiatives that they are looking to employ, with commitment being a must.
Training programs need extensive review to lead processes of change. They should
include the tools, techniques and methods to boost morale of ensuring quality in
employees
11.
Analyzing the findings, a proper legislation for quality initiatives must take up.
New system should be established in all oil and gas companies to deal with quality and
quality initiatives programs.
FUTURE PROJECTIONS:
In TQM practices, proper employee involvement and continuous improvement are major
factors. And can be discussed in future studies. Relationships between leaderships and
performance indicate the presence of nonlinear relationship. Insignificant relationships
among TQM variables and performance may create mediational relationship among
them. And this relations among them can be studied widely. Enterprise resource planning,
ISO certification, firm age, and firm size can also be included as moderating variables in
future studies. Barriers to TQM practices and having ISO certification in different
countries and industries forces to study comparatively to investigate these parameters.
Further studies need to be done considering the critical and important requirements of
adopting TQM in oil and gas sector. Further investigations reveals about role of
leadership across different companies in applying TQM. As research studied the role of
particular variables information management system, organization structure, TQM
resources availability and involvement of employees in management activities. So there
is need to explore to what extent the strategic thinking that exists across the different oil
and gas sectors and other sectors corresponds with the required strategic thinking of
TQM.
REFERENCES
[1] "ISO TS 29001:2010 Petroleum, petrochemical and natural gas industries Sector-specific quality
management systems Requirements for product and service supply organizations," International
organization of standardization, 2010.
[2] Total Parco Pakistan Ltd, [Online]. Available: totalparco.com.pk/.