ZADCO’s VALUE ASSURANCE PROCESS
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Date
2014-05
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The British University in Dubai (BUiD)
Abstract
The decommissioning phase in the life cycle of petroleum installations is an important part of ZADCO’ asset management strategy. The company is known for its integration of the value assurance process, or “value assurance review” (VAR), in administering asset management activities geared towards development. This is critically important because the company, just like any other oil and gas company, invests a lot on development. Therefore, identification of the root causes of failure is advised at the beginning of projects before they are sanctioned. Value assurance that is executed for a project addresses the question: “Are we doing the right project?” Alternatively, the reviews around extraction time focus on the question: “Are we doing the project right?” After the sanctioning, similar reviews are conducted.
The value assurance process focuses on the non-technical aspects of projects, as the reasons for cost and schedule overruns are often found in the non-technical aspects. This leads to the integration of a technical, economic, commercial, organizational and political (TECOP) approach. It is important to note that studies have shown that more projects fail from flaws in project fundamentals than from flaws in the details.
VAR generally takes a week. It is delivered by a team of approximately five senior experienced staff members. On the first day, project team presentations are made, followed by interviews in the next two days, then synthesis and analysis of an integrated picture within the value assurance team, and then finally the delivery of insights and recommendations to the costumer, that is, to the senior executives that govern the project and those responsible for delivering the project, or to ZADCO executives in our case (ZADCO HSE Manual, 2003).
In this study we examine the feasibility of this process through the work of the staff interviews and a questionnaire among the decision-makers in the organization to extract a clear picture of electrode found in developmental institution.
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Keywords
ZADCO, value assurance, management strategy, United Arab Emirates (UAE)