The Six Sigma Strategic Objectives Embracing the Six Sigma Strategic Objectives enables service providers to align themselves with their client ’ s requirements resulting in improvements to the companies ’ operational capabilities and financial standing .
The Six Sigma Strategic Objectives must be equally internalised and shared by all the people in the organisation , from top management to the grass root levels . This will assist in benchmarking the accuracy of mechanical inspection in construction .
Value Based Management ( VBM ) In the journey towards achieving its corporate vision of becoming ‘ A Global Champion ’, PETRONAS is fully committed to its ultimate business objective , namely maximising value creation and managing value for its stakeholders . VBM is a tool that will direct the entire organisation towards one ultimate goal , which is shareholder value creation .
Following VBM concepts , there will be a smooth handover from construction to commissioning and then on to the operational phase . Based on this concept , a mechanical completion system is essentially translating business objectives so that the Plant Start-Up can be earlier or as per schedule , thus generating income for the owner and its shareholders .
Balanced Scorecard ( BSC )
Under the traditional accounting measures , typically there is a little correlation between shareholder value and return on assets . This may be because the basis for assessing shareholder value to the accounting net is different . While the share market is assessed based on future market opportunity , the accounting returns are based on what has happened . Thus the accounting report can be easily distorted as some of the items such as the intangible assets e . g . staff training , product innovations , etc are excluded from the calculations .
A Balanced Scorecard ( BSC ) is designed to overcome the limitations of traditional accounting measures . BSC is a complete set of management tools to help managers in managing the performance of the company . It also includes both financial and operational measures that give top management a comprehensive view of the business ( e . g . CEO
Dashboard ). By applying BSC concepts to a mechanical completion system , they can be crossreferenced into business results by BSC ’ s four key perspectives , namely customer perspective , internal business perspective , innovation ( learning ) and growth perspective , and financial perspective . The mechanical completion system can be measured objectively through schedules , quality , cost , and safety . All these performance measurement aspects are typically balanced during the mechanical completion execution plan .
International Standards in the Oil & Gas Industry The International Association of Oil and Gas producers has collaborated with the International Standards Organisation ( ISO ) to develop a very wide selection of vital standards for the Oil and Gas Industry . The International Standards cover oil and gas materials , equipment and offshore structures as per the ISO and International Electrotechnical Commission ( IEC ) documents .
With the International Standards recognition , the benefits are : i . For the industry , it will reduce costs and delivery time and facilitate trade across national borders . and ii . For regulatory authorities , it offers support for goal-setting and functional regulations , while achieving higher levels of safety through better design .
A study conducted by oil and gas producers confirmed industry expectations of the financial benefits of implementing ISO standards . According to the study ’ s findings , the oil and gas industry would save an equivalent of 1 % of its annual expenditure by implementing International Standards . This translates into savings of US $ 180 million and represents a return on investment of 25 to 1 ( ISO Bulletin , July 2001 ).
Examples of ISO committees in the oil and gas industry are as follows : - a ) TC 67 – Materials , equipment and offshore structures for petroleum and natural gas industries . b ) TC 28 - Petroleum products and lubricants . c ) TC 193 – Natural gas . d ) TC 192 - Gas turbines . e ) TC 58 - Gas cylinders . f ) TC 197 – Analysis of gases . and g ) TC 27 - Solid mineral fuels .
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