Basic approach to productivity
process: In order to improve productivity in National Iranian Oil Company the following attributes were introduced:
Production = Oil & gas production / Production plan
Cost = Oil & gas production costs/ oil & gas production
To measure each main attribute, every attribute is decomposed to other detailed operational
ones, that are related to various levels of production.
Causes of production decline are classified and prioritized based on quantitative production reports. Therefore projects to address the decline will be defined. These projects are costly and time consuming while utilizing huge amounts of resources.
NIOC productivity
Process: The NIOC productivity process was designed based on "production" and "cost" attributes. The seven main steps of productivity model described are as follows:
Step 1 : Leadership committee determining basic productivity attributes to support and direct productivity movement.
Step 2 : Expert committee to coordinate and thrust the processes according to attributes.
Step 3 : providing of Data flow structure and uniform production reporting formats to classify production problems and factors affected on reduction of production and cost increase in firms.
Step 4 : Determining current production level, cost clarification problems are classified and improvement plans are defined with respect to main attributes.
Step 5 : performing the improvement projects and correcting processes.
Step 6 : Rewards according to performance and improvement results.
Step 7 : continuous improvement.
All Steps of improvement process that are based on "production" and "cost" attributes have been shown in the form of following graphs.
