Digital platform development for performance monitoring system in oil and gas exploration and production

Abstract

The paper provides a case study to enhance the Performance Management System for Oil and Gas Exploration and Production industry. Although the system was designed for the Oil and Gas Exploration and Production industry, the paper could be applied effectively for other industries because the modern organisation mainly utilised the Key Performance Indicator (KPI) to reflect its performance. So, the paper could be applied to most organisations with minor modifications.

The Advanced Performance Management System was developed systematically powered by digital transformation according to research methodology framework, including research, analysis, project development, and result measurement. The research stage is studying the relevant pieces of literature for work process improvement and solution development. Secondly, the analysis stage analyses the existing work process and practices in both qualitative and quantitative perspectives to identify problems and potential solutions. Thirdly, the project development stage is to develop practical solutions and implement them in the organisation. Lastly, the result measurement stage is the process to measure the success of implementation.

The deliverables of the project consist of shortening the work process, developing the collaboration platform, developing the Key Performance Indicator (KPI) dashboard, developing the automated KPI calculation, and developing the warning system when KPI had a signal to fail.

The Advanced Performance Management System provided significant benefits to the organisation by reducing the workforce by 80% that allowed the organisation to reskill and allocate resources to other vital tasks in the organisation that could generate more value. Interm of qualitative benefits, the project improved the quality of the performance management system resulted from improved KPIs, better visualisation, and available statistical data for analysis.

Besides, the paper provides recommendations for future projects to extend the scope of the digital platform to other areas of the Operational Excellence Management System; including, Procedure, Deployment, and Conformance to sustain the organisation's performance, although the competent staff retired from the organisation. Also, the new KPI hierarchy is recommended to classify the KPIs into four levels: data monitoring, leading KPI, lagging KPI, and Organisation KPI. The recommended KPI hierarchy help reduce the number of KPIs and enable the organisation to focus on the crucial KPIs related to the organisation's strategy.