Submitted To :Prof. Sudhir Yadav

Total Quality Management & InnovationPilot Study of Innovative companies in Oil & Gas Industry

Submitted By: Group 7

Darshit Paun 20131010Nikhil Sajwal 20131026Nilesh Kumar 20131027Pinang Panjwani 20131032Preeti Pal 20131034

BACKGROUND STUDY• Since discovery of UK Continental Shelf the creation and growth of STBOR’s has

been promoted.• The STBOR’s provide wide range of services and products in the O&G related

sector.• The industry provides more than 300,000 jobs in 2000 plus companies.• This sector rose with need for innovation.• According to STBOR’s, there is constant need to respond and adapt to the rapidly

changing environment and provide best quality services & products.• This paper explores the relationship between innovation and quality.• It also gives insights into the difficulties faced by STBOR’s owing to the innovation

in industry.

METHODOLOGY

•Data was collected from wide range of primary & secondary sources.

• As many of the STBOR’s were headquartered in Aberdeen, the research team was located there.

Stage 1: Selecting a

SampleSelection on basis of

interviews with oil & gas industry personnel.

6 companies selected for the study.

Selected STBOR’s had less than 150 employees.

STBOR’s-The most successful and innovative by the industry

experts.

Stage 2: Knowing more

about the companiesDepth Interviews of CEOs

A structured, open questionnaire was prepared.

Issues like Company history, Innovation, Quality,

Contracting environment, etc. covered

Quality related issues such as involvement with suppliers and customers discussed.

Quality standards, training & quality costs were questioned.

Stage 3: Studying the

Issues in Industry

To get better idea about the operating environment & understand the industry

better Operators, Contractors & official bodies were also

questioned.

Semi structured interviews were held with wide range of

their representatives.

Their responses were coded and analyzed to get clear idea of the key issues in the sector.

Stage 4: Contextualizin

g the Study

Various industry seminars and conferences were

attended.

Also reliable records were studied.

ANALYZING• The information was broadly grouped into 3 organization types:• Operating Companies• Contracting Companies• Suppliers

o Providing basic itemso Providing specialized products and services- They need to invest heavily

to meet the rapidly changing technological needs. STBOR’s form a part of this group.

• The STBOR’s mainly have to tackle problems of high investment, customer retention, material management, skill management.

EFFECTS OF CHANGES• Changes have affected at all levels in the industry.

• Streamlining supply within UKCS followed concept of lean supply.

• Operators redefining their core business led to outsourcing and increased business of contractors

• Situation became complex for STBORS, particularly in maintaining communications.

INNOVATION CYCLE FOR STBOR’S

New Technologies

Perceived need to Innovate

Opportunity to Innovate

Incentive for risk taking

Investment in innovation

Capacity to

Innovate

MODEL FOR INNOVATION AND DEMAND TECHNOLOGIES

Demand for Technologies

New Technologies

Optimize Existing Technologies

Field DevelopmentNew RegulationsNew Operating ContractorsCost Effectiveness

RESULTS OF THE STUDY• The perceived links between Innovation & Quality are not identified by

the sample companies.• It is observed that the companies are trying to bring the concept of Total

Quality in practice.

For Quality Management• Organizations were asked directly about involvement in quality related

issues and activities

Thank You