Maintenance Management System for Upstream Operations in Oil and Gas Industry Case Study

Topics: Maintenance, SAP AG, Management Pages: 21 (6209 words) Published: June 21, 2013
World Academy of Science, Engineering and Technology 36 2009

Maintenance Management System for Upstream Operations in Oil and Gas Industry: Case Study

paper explores the plant maintenance management system that has been used by giant oil and gas company in Malaysia. The system also called as PMMS used to manage the upstream operations for more than 100 plants of the case study company. Moreover, from the observations, focus group discussion with PMMS personnel and application through simulation (SAP R/3), the paper reviews the step-by-step approach and the elements that required for the PMMS. The findings show that the PMMS integrates the overall business strategy in upstream operations that consist of asset management, work management and performance management. In addition, PMMS roles are to help operations personnel organize and plan their daily activities, to improve productivity and reduce equipment downtime and to help operations management analyze the facilities and create performance, and to provide and maintain the operational effectiveness of the facilities.


Keywords—Maintenance, Oil and Gas Industry, Upstream



AINTENANCE is a combination of all technical, administrative, and managerial actions during the life cycle of an item intended to keep it in or restore it to a state in which it can perform the required function [1]. Previously, maintenance has been supposed as an expense account with performance measures developed to track direct costs or surrogates such as the headcount of tradesmen and the total duration of forced outages during a specified period. Fortunately, this perception is changing [2,3]. Nowadays, maintenance is acknowledged as a major contributor to the performance and profitability of business organizations [4,5]. Maintenance managers therefore explore every opportunity to improve on profitability and performance as well as achieve cost savings for the organization [6]. The maintenance organization is confronted with a wide range of challenges that include quality improvement, reduced lead times, set up time and cost reductions, capacity expansion, managing complex technology and innovation, improving the reliability of systems, and related environmental issues [7]. However, trends suggest that many maintenance organizations are adopting Total Productive

Wan Hasrulnizzam Wan Mahmood and Husiah Mazli are with Faculty of Manufacturing Engineering, Universiti Teknikal Malaysia Melaka, 76109 Melaka, Malaysia (e-mail: Mohd Nizam Ab Rahman and Baba Md Deros are with Advance Manufacturing Research Group, Faculty of Engineering and Build Environment, Universiti Kebangsaan Malaysia, 43600 UKM, Selangor, Malaysia. (e-mail:

Maintenance (TPM), which is aimed at the total participation of plant personnel in maintenance decisions and cost savings [8,9]. The challenges of intense international competition and market globalization have placed enormous pressure on maintenance system to improve efficiency and reduce operational costs. These challenges have forced maintenance managers to adopt tools, methods, and concepts that could stimulate performance growth and minimize errors, and to utilize resources effectively toward making the organization a “world-class manufacturing” or a “high-performance manufacturing” plant. Industrial maintenance has two essential objectives which are a high availability of production equipment and low maintenance costs [1]. However, a strong factor militating against the achievement of these objectives is the nature and intensity of equipment failures in plants. Since system failure can lead to costly stoppages of an organization’s operation, which may result in low human, material, and equipment utilization, the occurrence of failure must therefore be reduced or eliminated. An organization can have its customers build confidence in it by having uninterrupted flow...

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