Evaluation of the reorganization at GE Oil & Gas, Dusavik site for the XT department

Abstract

Cost increase has proven to become one of the main challenges for the oil and gas industry on the Norwegian Continental Shelf. Several Norwegian suppliers in the oil and gas industry have lost contracts because of this cost increase. This thesis addresses an evaluation to find the effect and trends (in the aspect of time) of a reorganization that took place February 2013 for the Xmas Tree department at GE Oil & Gas, Dusavik site. The purpose of this evaluation is to see if it is possible to see a trend on the total amount of hours spent on a project, if it is decreasing, the quotation of a Xmas Tree project can be lowered, and more contracts can be acquired. In order to grasp the potential of effective project management and monitor, this paper have been made to understand what types of projects the Xmas Tree department executes, how these are managed, and how they can be monitored, controlled and managed in order to decrease the project time of a “Refurbishment and upgrade of a Xmas Tree” project. To determine the trend we collected data from finished projects before and after the reorganization. We looked on the total amount of hours of each project at a high level to illustrate the trend. In order to see differences between hours spent on milestones, activities and functions we collected available data on two projects, and evaluated all of the functions, activities and milestones available. The findings of the research suggest that further breakdown of the milestones is necessary to find the most contributing activities on a Xmas Tree project, in order to see which activities to adjust to offer a better quotation.