application of service quality plan of mud logging services in pvd logging company

ECONOMICS & MANAGEMENT MBQPM5 “PHẠM THỊ TIÊN QUẾ” “APPLICATION OF SERVICE QUALITY PLAN OF MUD LOGGING SERVICES IN... 18  Chapter II – Preparation of Service Quality Plan 2.1 Identifi

ECONOMICS & MANAGEMENT

MBQPM5

“PHẠM THỊ TIÊN QUẾ”

“APPLICATION OF SERVICE QUALITY

PLAN OF MUD LOGGING SERVICES IN

STATEMENT OF AUTHENTICATION

*****

I would like to confirm that the contents presented in this thesis is the truthful work and has been collected and analyzed by myself, under the directions of Dr Jacques Martin

I did not copy other people’s work (published or otherwise) to complete my thesis All information has been collected during working and interviewing my colleagues Beside that, some contents were in my company’s documents such as procedures, work instructions, reports

I ensure that this thesis has not been submitted elsewhere in any form for the fulfillment of any other degree or qualification

Ho Chi Minh City, Apr 2016

Pham Thi Tien Que

ACKNOWLEDGEMENT

In the process of preparation this thesis, I have received the care and help of my family, teachers, friends and colleagues of PVD Logging Company

My especial thankfulness to the instruction of Dr Jacques Martin, who guided me

on the scientific method and content of the subject

I would like to thank all lecturers of program who teach me valuable knowledge during the course

I also would like to thank friends in my class who are always willing support me during the time I take part in the program

I express the gratitude to my husband and daughter who are always behind to help and provide to me many useful advices and much different assistance

With my colleagues in Company, I would like to say thanks for many helping in process of preparing thesis

Sincerely,

Pham Thi Tien Que

Comments of tutors

Table of contents

- General Introduction

1 Subject introduction 9

2 Subject’s interest 9

3 Objectives of the subject 10

4 Methodology 10

- Part I: Service quality - input  Chapter I – Company Introduction 12

1.1 Company Introduction 12

1.2 Mud Logging service introduction 16

1.3 Service quality plan introduction 18

 Chapter II – Preparation of Service Quality Plan 2.1 Identification of scope of work required in the contract 21

2.2 Establish the project 21

2.3 Set up quality objectives 21

2.4 Human resource preparation 22

2.5 Management responsibility 23

2.6 Preparing the equipment and software 24

2.7 Risk based thinking 26

2.8 Training 27

- Part II: Service quality - output  Chapter I – Service realization 1.1 Conduct the operation of services 28

1.2 Monitoring and measurement 32

 Chapter II – Improvement 2.1 Corrective action of nonconforming or customer complaint 34

2.2 Lesson learnt from the result 39

2.3 Training 40

2.4 Risk assessment 40

2.5 Management of change 40

2.6 Measurement 41

2.7 Control of document 41

- Conclusion………43

- References……….44

- Appendix 1

List of abbreviation and definition

- SQP: Service Quality Plan

- PVDL: PVD Logging

- Company is PVD Logging Company

- Department is Mud Logging Department

- HSEQ: Health – Safety – Environment – Quality

- QA: Quality Assurance

- QC: Quality Control

- ITP: Inspection and Test Plan

List of pictures and tables

Picture 1 – Company’s organization chart

Picture 2 – Some pictures of company service

Picture 3 – Estimated percentage of service of PVD Logging Picture 4 – Clients of PVD Logging

Picture 5 – Data Engineer monitoring data from the well log Picture 6 – Example of log data

Picture 7 – Mud Logging department’s organization chart Picture 8 – Equipment to be used in operation

Picture 9 – Advantage of software components

Picture 10 –Using RPI

Picture 11 – Data during monitoring

Picture 12 – Map of data transfer

Picture 13 – Fishbone analysis

Picture 14 – Chart of nonconformity

Table 1 - Data of customer survey

Picture 15 – Customer survey result

Main content of report

General Introduction

1 Subject introduction:

In recent years, the market outlook of the oil & gas service industry in Southeast Asia has witnessed the escalating competition among global drilling contractors all over the world, those who strived to expand their business toward this area to claim their market share To survive the pressure, it is of extreme importance that the service quality is maintained and improved to ensure the satisfaction of customers

at all time In fact, this would be the most essential factor affecting our ultimate target of service quality Bearing that in mind, PVD Logging always takes the first move to thoroughly understand clients’ needs, actively seeks for their comments and feedback to identify inadequacy, timely mitigate potential loss, and thereby, offering clients with the best value of service

Defining goals is direct competition with multinational competitors, the company has been investing significantly in the quality management The company has made improvements in the systems; equipment and software are used, enhancing the convenience and accuracy The research for services and new devices also achieved satisfactory success, has been operating in the domestic and international contracts

To control well the service provided to customers from input to output, the company has established Service Quality Plan (SQP) which designs activities for each project of the services However, the application of this SQP is not fully so there are some nonconformities still exit in operation

In this study, I would like to introduce one of the tools to control and assurance the service quality of company to customers I would like to select the subject of my thesis is:

“APPLICATION OF SERVICE QUALITY PLAN OF MUD LOGGING SERVICE IN PVD LOGGING COMPANY”

2 The subject’s interest:

Quality Service Plan is a document that together specifies quality standards, practices, resources, specifications, and the sequence of activities relevant to a particular product, service, project, or contract

SQP shall define:

 Objectives to be attained (for example, characteristics or specifications, uniformity, effectiveness, aesthetics, cycle time, cost, natural resources, utilization, yield, dependability, and so on);

 Steps in the processes that constitute the operating practice or procedures of the organization;

 Allocation of responsibilities, authority, and resources during the different phases of the process or project;

 Specific documented standards, practices, procedures, and instructions to be applied;

 Suitable testing, inspection, examination, and audit programs at appropriate stages;

 A documented procedure for changes and modifications to a quality plan as a process is improved;

 A method for measuring the achievement of the quality objectives;

 Other actions necessary to meet the objectives

Excerpted from the Certified Manager of Quality/ organization Excellence handbook, ASQ Quality Press, Fourth Edition, 2014 pages 264-266

3 Objectives of the subject:

 Helping reader to understand the input and output elements of the operation

of Mud Logging service

 See the enhancing the commitment of my company with customers

 Listing out some shortcomings need improving with my recommendation

4 Methodology:

4.1 Participants:

My research methodology requires gathering relevant data from the specified documents and compiling databases in order to analyze the application of SQP in Mud Logging department when they have contracts

To have information, I collect data by interviewed the relevant people: Manager of Mud Logging department - Data engineer; Quality Manager

Data collection is the process of gathering and measuring information on targeted variables in an established systematic fashion, which then enables one to answer relevant questions and evaluate outcomes The data collection component of research is common to all fields of study including physical and social sciences, humanities and business While methods vary by discipline, the emphasis on ensuring accurate and honest collection remains the same The goal for all data collection is to capture quality evidence that then translates to rich data analysis and allows the building of a convincing and credible answer to questions that have been

posed (From Wikipedia, the free encyclopedia)

Besides that, I read SQP and relevant documents mentioned in SQP such as Operation Manual, Monitoring and measurement, document control, Training and development, etc During reading I noted the queries in order to make clear with person in chart These notes were so important for me to study the relevant of SQP and other documents and I saw some problems which need to be improved

4.2 Instruments:

To have much data, I read the reports of the monitoring and measurement of the activities including daily reports, asset reports, customer satisfaction reports, failure reports, etc

4.3 Procedures:

The Procedures section is based directly on the research questions During this paper, I hope to shed light on the following questions through my research:

 What is the purpose of using SQP in operation?

 What are the input and output when applying SQP?

 How are the processes controlled?

 What do the results achieve when applying SQP?

 Is there any GAP between SQP document and the real practice?

 How about the customer satisfaction?

4.4 Analysis data:

From the results of the reports, I used the quality tools including chart and fishbone

to analysis the results in 3 recent years of customer satisfaction and the causes of failure in 2015 Next step is analyzing the collected results The goal of analysis of results section was to point out what interesting information of results contain and why

PART 1 Chapter I: COMPANY INTRODUCTION 1.1 Company introduction:

1.1.1 Company background:

 Company name: PETROLEUM WELL LOGGING SERVICES

 Short name: PVD LOGGING CO., LTD (PVDL)

in the Oil & Gas industry

As a wholly-owned subsidiary of PV Drilling Cooperation, PVD Logging specializes in providing advanced technical services for petroleum drilling operations such as mud logging, slick-line, well testing

PVD Logging has joint operations – joint ventures with leading service companies to ensure the ability to work on challenging wells, to satisfy all the customized demand of the clients, ready to introduce its business in the markets of the continent and the world

1.1.2 Company’s organization chart:

Picture 1 – Company’s organization chart

1.1.3 Company’s key activities:

Company has been providing 4 main services as following:

Picture 2 Some pictures of company services

Well Testing

Wellsite Geologist

Picture 3 Estimated percentage of services of PVD Logging

1.1.4 Vision & Mission :

1.1.5 General Strategy:

- Continue to boost the operating capabilities, concentrate on enhancing the management activities as well as maintaining the development of Risk management, and expand market to ensure the stable business and take advantage of business opportunities under the circumstance of significant change in oil price and drilling market

- Improving the quality of service, professionalism confirmed by a Vietnamese brand in International market

- Develop the high quality human resources and experts with visible competitive advantage to meet the specific needs in the oil and gas industry and continuous requirements in terms of technology and management

- Continue to maintain and develop integrated management system Health – Safety – Environment – Quality (HSEQ) abiding by international standards to ensure high efficiency, environmental sustainability, and enhance company’s reputation

- Building a “Sustainable” business culture, in which humanity, profound care

of community and social security, and the professionalism of each employee

in company are the foundation for sustainable development

- Seeking for channel development services overseas

1.2 Mud Logging service introduction:

1.2.1 Service Description:

This is the main service of company with 90% domestic market

The services of Mud Logging includes:

+ Standard package:

o Monitoring and recording drilling and geological parameters

o Detection and Interpretation of Hydrocarbon

o Evaluation of Formation

o Database Management

o Applications of Drilling and Engineering

+ High –end optional services:

o Digital Camera Microscope

o Early Kick Detection – EKD

o Real Time Transmission

o GC Tracer Real Time Formation Evaluation

PVD Logging’s Mud Logging Services is an innovative, customer driven Surface Logging provider to the oil and gas industry

Mud Logging examines and analyzes geological information contained in formation cuttings and drilling mud, to determine if oil and gas are encountered during well drilling Mud Logging also provides critical safety functions such as determining pore pressure; kick control and ambient gas monitoring Mud Logging is used while drilling most exploratory and many development wells, both on and off shore

Picture 5 Data Engineer monitoring data from well log

Mud Logging services range from basic unmanned gas detection to sophisticated full serviced, manned operations Services have evolved to become the information center for the well and included electronic monitoring of drilling parameters These parameters include weight on bit, torque, penetration rate, mud levels, pump speed and so on, and third party service provider data

Basic unmanned services use a cost effective Mud Logging unit that provides simple gas detection to identify potentially productive pay zones and enhance drilling safety The system is configurable for hydrogen sulphide (H2S) monitoring The units are equipped with alarms to alert the user(s) if gas level increases or equipment problems occur and works in conjunction with data logging and drilling penetration rates

Mud Logging Service provides:

 Advanced drilling monitoring systems capable of gas detection, electronic monitoring and database recording for a full range of drilling parameters on manned or unmanned operations

 Experienced crews and additional tools to monitor and analyze both the geology of the subsurface information and the drilling parameters

 Various combinations of services and crew sizes depending on customer requirements and well complexity

 A portable laboratory ( Mud Logging Unit) that houses the hardware and software

 Analysis conducted at wellsite during the drilling process and samples are returned to the operator after analyzing process

Picture 6 Examples of Log data

1.3 Service Quality Plan introduction:

1.3.1 Generality:

The PVD Logging’s purpose is to provide the best quality services in a safe manner Fulfilling this purpose, PVD Logging is committed to achieving the following:

o Successfully complete the scope of work of the contract for the Mud Logging service in accordance with the specified requirements of the client

o Deliver the best quality services with client satisfaction

o Successfully hand over all data, reports and final well reports within the targeted time

In order to enhance the PVD Logging (PVDL) commitment in achieving the above aims, a Quality System will be established according to the requirements of Quality Management System based on ISO 9001: 2008

The PVD Logging’s commitment to quality systems is an integral part of the philosophy of continuous improvement This improvement will be achieved through training at all levels and optimizing management capabilities and methods

It is mandatory for all personnel involved in the Services (including subcontractor personnel) to ensure that the principles of Quality Assurance are adhered to at all times All disputes regarding quality matters will, wherever possible, must be resolved at the level of management closest to the task in a mutually acceptable manner The service Engineer will refer

to the Service Manager for resolution any issues that cannot be decided in this way

All employees, suppliers and sub-contractors of company involved in the Service shall comply with the requirements outlined in this plan and the associated quality requirements in the Contract

This SQP has been written to fulfill the requirement of the Contract and meet the ISO 9001: 2008 requirements

PVD Logging will be responsible for the QA and QC of its works under the Contract

Meanwhile, PVD Logging will develop to maintain and update Service Quality Plan (SQP) in order to achieve the organization objectives

1.3.2 Purpose of Service Quality Plan:

The Service quality plan (SQP) has been established to ensure that all the quality assurance for the permanent works are to comply and be checked under the SQP of Clients

Hence, the SQP is used by PVDL to conduct internal checking for their works, including the temporary works related to the operation of the Mud Logging Unit and other temporary works, and pre-checking activities prior

to the final and official checking by Client for the permanent works

When receiving the tender requirements of clients, company has to identify the scope of service which company will provide to customers The requirements may be a full package of Mud Logging services, but also are some parts of the package The SQP shall be developed to control the execution of services or used of service-related within the scope of work that company provides

In SQP’s contents, company needs to address each of the following:

 Identification of scope of work required in the contract

 Required activities and documentation for compliance with customers and legal requirements

 Management commitment to the services

 Identification of human resources with responsible functions for each activities, including external parties

 Identification and reference to control of service equipment including monitoring devices

 Identification and controls of risks

 Identification of the required deliverables

 Identification of the required records

The service quality plan shall be approved by the organization and documented One copy shall be communicated to the customer as required in the contract

The goal of the Service Quality Plan is to ensure that the project details are defined and communicated with all stakeholders in order to minimize risk and eliminate operational downtime

CHAPTER II: PREPARATION OF SERVICE QUALITY PLAN

In this chapter, I would like to introduce the steps of preparation before conducting the job These steps shall be description in the Service Quality Plan clearly in order

to show the company’s preparation as input the operation process This way helps company introduce its capacity of company to customers before signing the contract

2.1 Identification of scope of work required in the contract:

When receiving client’s request, management will review the contract, scope of work and program whether the requirements are in the scope of work of the contract or not

The identification of the scope of work is necessary for Commercial department and Mud Logging department to prepare necessary resources and equipment to provide services as customers’ requirements

In Mud Logging services, the scope of work shall be identified by two groups of services including STANDARD package and HIGH –end optional services Basing

on the customer’s offer, company will determine which group is required The price shall be charged and the service quality plan shall be written to meet all requirements of clients in the project

2.2 Establish the project:

The Service Team shall be set up with specific program The management is responsible for support the team in identifying the capacity of personnel carried the job and doing risk assessment in the kick of meeting before developing the job The identification of risk shall help company avoid the lost and the customer’s complaint as well as violation of legal requirements

2.3 Set up Quality Objectives:

Quality objectives shall be established with the aim to enhance the Client satisfaction and continually improve the effectiveness of the execution of contract The established quality objectives, actions and monitoring method shall be communicated within the Service team through Meeting, Training session and display on the notice board, and the target are listed below:

 Customer satisfaction : increasing customer satisfaction

 Nonconformance (relative to Quality System/Procedure):

minimize nonconformance at the completion ofthe Service

 Annual Lost Time Injury: frequency to continue at Zero

 Training: Accomplish staff training in accordance with training Matrix

 Performance monitoring: through weekly surveillance to monitor

 Legal compliance: case of violation at Zero

The objectives and actions shall be reviewed regularly to ensure their continuing suitability, adequacy and effectiveness

2.4 Human resource preparation:

Each project shall have from 14-18 employees to carry out the job There are Data Engineers, Mud Loggers and Sample Catchers

The required human resources will be evaluated with reference to their past performance, education, experience and potential

Appropriate details shall be documented and attached to the employee’s personnel record files

Another key part of this stage is the preparation and allocation of personnel Department has a competency system in place whereby all personnel competencies are assessed by globally certified assessors The prepare resources process also includes links to the competency system and ensure that the right, competent personnel are assigned to the job

Below are the job Descriptions and responsibilities for each position:

* The Data Engineer:

 Monitoring all drilling engineering data

 Performing all pressure and related calculations

 Informing operating company representatives such as Wellsite Geologist or Drilling Supervisor regarding pressure plots, overpressure and other data

 Working together with other personnel at the Wellsite, such as the Mud Engineer, MWD Engineer, Drilling Crew,… for the effective operation

 General supervision of the mud logging unit and crew

* The Mud logger:

 Performing the Pressure Engineer's tasks if Pressure Engineer is not at the wellsite

 Checking all lithological and fluid samples and producing the mud loging

 Informing operating company representatives such as Wellsite Geologist or Drilling Supervisor regarding geological data, abnormal drilling parameters, pressure plots and other data

 Calibrating and maintaining all mud logging sensors and equipment

 Training and supervising Trainee Mud logger

* The Sample Catcher:

 Collecting the ditch cuttings at the required intervals

 Preparing all samples for shipping and storage