Diagnostic Engineering Management

Diagnostic Engineering Management

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The paper is based on a case study of an oil and gas company operating at the Norwegian continental shelf. It shows how performance measurement is used in planning to contribute to the management maintenance and modification work at offshore installations. The paper focuses on performance measurement as a part of integrated planning. We present different theoretical perspectives on performance measurement in organisations and relate these to our findings. Organisational learning is an important reason to measure performance and we underline the importance to include performance indicators in an organisational management system to be successful in establishing performance management.

A vast amount of maintenance activities are carried out on offshore installations throughout a year.
Planning of these activities is characterised by a high degree of uncertainty. Limited resources, system
failures, unscheduled maintenance, unpredictable weather as well as subsurface surprises causing
interruptions to drilling are some of the factors that make it difficult to complete work according to
predefined plans. An increasing need to optimize offshore oil and gas production and maximize overall
recovery, while safeguarding cost, safety and environmental aspects, also calls for efficient utilisation
of maintenance resources. An answer to this need lies in the concept of Integrated Planning (IPL) with
performance measurement as one of four elements described as par of the concept in figure 1.

Different perspectives of performance measurement in organisations in general are addressed and
related to maintenance management and planning. The three other elements of IPL are not discussed
explicitly in this paper, but the importance of seeing the elements in close relation as part of the holistic
picture necessary to succeed with IPL is emphasised. Before looking at different theoretical
perspectives of performance measurement in organisations, a description of the study and the case is
given. The theoretical perspectives are related to the findings in the discussion. The conclusion points
to the importance of including performance measurement of planning in the management of
organisations in order to facilitate organisational learning.




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Center for research-based innovation, NTNU, Sintef, IFE