Innovation in project management practices:a case of Indian organization in the petroleum industry

The Indian petroleum industry is passing through a very dynamic business environment due to the liberalisation of many government policies, vertical integration among organisations and the presence of multinational companies. This caused a competitive environment among the organisations in the Indian petroleum industry in the public sector. Effective project management for developing new infrastructures and maintaining the existing facilities has been considered one of the means for remaining competitive in this business environment. However, present project management practices suffer from many shortcomings, as time, cost and quality non-achievements are part and parcel of almost every project. This study focuses on identifying the issues in managing projects of the organisation in the Indian petroleum sector with the involvement of the executives in a workshop environment. This also suggests some remedial measures for resolving those issues through identifying critical success factors and enablers. The enablers not only resolve the present issues but also ensure superior performance. These are analysed in a quantitative framework to derive improvement measures in project management practices.

A risk-based model for inspection and maintenance of cross-country petroleum pipeline

The existing method of pipeline health monitoring, which requires an entire pipeline to be inspected periodically, is both time-wasting and expensive. A risk-based model that reduces the amount of time spent on inspection has been presented. This model not only reduces the cost of maintaining petroleum pipelines, but also suggests efficient design and operation philosophy, construction methodology and logical insurance plans. The risk-based model uses Analytic Hierarchy Process (AHP), a multiple attribute decision-making technique, to identify the factors that influence failure on specific segments and analyzes their effects by determining probability of risk factors. The severity of failure is determined through consequence analysis. From this, the effect of a failure caused by each risk factor can be established in terms of cost, and the cumulative effect of failure is determined through probability analysis. The technique does not totally eliminate subjectivity, but it is an improvement over the existing inspection method.

Multiple attribute decision making approach to petroleum pipeline route selection

Petroleum pipelines are the nervous system of the oil industry, as this transports crude oil from sources to refineries and petroleum products from refineries to demand points. Therefore, the efficient operation of these pipelines determines the effectiveness of the entire business. Pipeline route selection plays a major role when designing an effective pipeline system, as the health of the pipeline depends on its terrain. The present practice of route selection for petroleum pipelines is governed by factors such as the shortest distance, constructability, minimal effects on the environment, and approachability. Although this reduces capital expenditure, it often proves to be uneconomical when life cycle costing is considered. This study presents a route selection model with the application of an Analytic Hierarchy Process (AHP), a multiple attribute decision making technique. AHP considers all the above factors along with the operability and maintainability factors interactively. This system has been demonstrated here through a case study of pipeline route selection, from an Indian perspective. A cost-benefit comparison of the shortest route (conventionally selected) and optimal route establishes the effectiveness of the model.

Transmission of image data over digital networks involving mobile terminals

There is a growing demand for data transmission over digital networks involving mobile terminals. An important class of data required for transmission over mobile terminals is image information such as street maps, floor plans and identikit images. This sort of transmission is of particular interest to the service industries such as the Police force, Fire brigade, medical services and other services. These services cannot be applied directly to mobile terminals because of the limited capacity of the mobile channels and the transmission errors caused by the multipath (Rayleigh) fading. In this research, transmission of line diagram images such as floor plans and street maps, over digital networks involving mobile terminals at transmission rates of 2400 bits/s and 4800 bits/s have been studied. A low bit-rate source encoding technique using geometric codes is found to be suitable to represent line diagram images. In geometric encoding, the amount of data required to represent or store the line diagram images is proportional to the image detail. Thus a simple line diagram image would require a small amount of data. To study the effect of transmission errors due to mobile channels on the transmitted images, error sources (error files), which represent mobile channels under different conditions, have been produced using channel modelling techniques. Satisfactory models of the mobile channel have been obtained when compared to the field test measurements. Subjective performance tests have been carried out to evaluate the quality and usefulness of the received line diagram images under various mobile channel conditions. The effect of mobile transmission errors on the quality of the received images has been determined. To improve the quality of the received images under various mobile channel conditions, forward error correcting codes (FEC) with interleaving and automatic repeat request (ARQ) schemes have been proposed. The performance of the error control codes have been evaluated under various mobile channel conditions. It has been shown that a FEC code with interleaving can be used effectively to improve the quality of the received images under normal and severe mobile channel conditions. Under normal channel conditions, similar results have been obtained when using ARQ schemes. However, under severe mobile channel conditions, the FEC code with interleaving shows better performance.

Digital communication networks incorporating mobile data terminals

The use of digital communication systems is increasing very rapidly. This is due to lower system implementation cost compared to analogue transmission and at the same time, the ease with which several types of data sources (data, digitised speech and video, etc.) can be mixed. The emergence of packet broadcast techniques as an efficient type of multiplexing, especially with the use of contention random multiple access protocols, has led to a wide-spread application of these distributed access protocols in local area networks (LANs) and a further extension of them to radio and mobile radio communication applications. In this research, a proposal for a modified version of the distributed access contention protocol which uses the packet broadcast switching technique has been achieved. The carrier sense multiple access with collision avoidance (CSMA/CA) is found to be the most appropriate protocol which has the ability to satisfy equally the operational requirements for local area networks as well as for radio and mobile radio applications. The suggested version of the protocol is designed in a way in which all desirable features of its precedents is maintained. However, all the shortcomings are eliminated and additional features have been added to strengthen its ability to work with radio and mobile radio channels. Operational performance evaluation of the protocol has been carried out for the two types of non-persistent and slotted non-persistent, through mathematical and simulation modelling of the protocol. The results obtained from the two modelling procedures validate the accuracy of both methods, which compares favourably with its precedent protocol CSMA/CD (with collision detection). A further extension of the protocol operation has been suggested to operate with multichannel systems. Two multichannel systems based on the CSMA/CA protocol for medium access are therefore proposed. These are; the dynamic multichannel system, which is based on two types of channel selection, the random choice (RC) and the idle choice (IC), and the sequential multichannel system. The latter has been proposed in order to supress the effect of the hidden terminal, which always represents a major problem with the usage of the contention random multiple access protocols with radio and mobile radio channels. Verification of their operation performance evaluation has been carried out using mathematical modelling for the dynamic system. However, simulation modelling has been chosen for the sequential system. Both systems are found to improve system operation and fault tolerance when compared to single channel operation.

The impact of the introduction of visual display terminals on the job characteristics, job satisfaction and well-being of users in government offices

The proliferation of visual display terminals (VDTs) in offices is an international phenomenon. Numerous studies have investigated the health implications which can be categorised into visual problems, symptoms of musculo-skelctal discomfort, or psychosocial effects. The psychosocial effects are broader and there is mixed evidence in this area. The inconsistent results from the studies of VDT work so far undertaken may reflect several methodological shortcomings. In an attempt to overcome these deficiencies and to broaden the model of inter-relationships a model was developed to investigate their interactions and Ihc outputs of job satisfaction, stress and ill health. The study was a two-stage, long-term investigation with measures taken before the VDTs were introduced and the same measures taken 12 months after the 'go-live' date. The research was conducted in four offices of the Department of Social Security. The data were analysed for each individual site and in addition the total data were used in a path analysis model. Significant positive relationships were found at the pre-implementation stage between the musculo-skeletal discomfort, psychosomatic ailments, visual complaints and stress. Job satisfaction was negatively related to visual complaints and musculo-skeletal discomfort. Direct paths were found for age and job level with variety found in the job and age with job satisfaction and a negative relationship with the office environment. The only job characteristic which had a direct path to stress was 'dealing with others'. Similar inter-relationships were found in the post-implementation data. However, in addition attributes of the computer system, such as screen brightness and glare, were related positively with stress and negatively with job satisfaction. The comparison of the data at the two stages found that there had been no significant changes in the users' perceptions of their job characteristics and job satisfaction but there was a small and significant reduction in the stress measure.

Analytic hierarchy process analyses risk of operating cross-country petroleum pipelines in India

The existing method of pipeline health monitoring, which requires an entire pipeline to be inspected periodically, is both time-wasting and expensive. A risk-based model that reduces the amount of time spent on inspection has been presented. This model not only reduces the cost of maintaining petroleum pipelines, but also suggests an efficient design and operation philosophy, construction methodology, and logical insurance plans. The risk-based model uses the analytic hierarchy process (AHP), a multiple-attribute decision-making technique, to identify the factors that influence failure on specific segments and to analyze their effects by determining probability of risk factors. The severity of failure is determined through consequence analysis. From this, the effect of a failure caused by each risk factor can be established in terms of cost, and the cumulative effect of failure is determined through probability analysis. The technique does not totally eliminate subjectivity, but it is an improvement over the existing inspection method.

Integrated project management in Indian petroleum industry

The Indian Petroleum Industry is passing through a very dynamic business environment due to liberalization. Effective project management for developing new infrastructures and maintaining the existing facilities has been considered as one of the means for remaining competitive but these practices suffer from many shortcomings, as time, cost and quality non-achievements are part and parcel of almost every project. This study focuses on identifying the specific causes of project failure by demonstrating first the characteristics of projects in Indian Petroleum industry and suggests some remedial measures for resolving these issues. The suggested project management model is integrated through information management system and demonstrated through a case study.

Hierarchical approach to project planning:the case of a petroleum pipeline construction

Projects exposed to an uncertain environment must be adapted to deal with the effective integration of various planning elements and the optimization of project parameters. Time, cost, and quality are the prime objectives of a project that need to be optimized to fulfill the owner's goal. In an uncertain environment, there exist many other conflicting objectives that may also need to be optimized. These objectives are characterized by varying degrees of conflict. Moreover, an uncertain environment also causes several changes in the project plan throughout its life, demanding that the project plan be totally flexible. Goal programming (GP), a multiple criteria decision making technique, offers a good solution for this project planning problem. There the planning problem is considered from the owner's perspective, which leads to classifying the project up to the activity level. GP is applied separately at each level, and the formulated models are integrated through information flow. The flexibility and adaptability of the models lies in the ease of updating the model parameters at the required level through changing priorities and/or constraints and transmitting the information to other levels. The hierarchical model automatically provides integration among various element of planning. The proposed methodology is applied in this paper to plan a petroleum pipeline construction project, and its effectiveness is demonstrated.

Petroleum pipeline construction planning:a conceptual framework

A cross-country pipeline construction project is exposed to an uncertain environment due to its enormous size (physical, manpower requirement and financial value), complexity in design technology and involvement of external factors. These uncertainties can lead to several changes in project scope during the process of project execution. Unless the changes are properly controlled, the time, cost and quality goals of the project may never be achieved. A methodology is proposed for project control through risk analysis, contingency allocation and hierarchical planning models. Risk analysis is carried out through the analytic hierarchy process (AHP) due to the subjective nature of risks in construction projects. The results of risk analysis are used to determine the logical contingency for project control with the application of probability theory. Ultimate project control is carried out by hierarchical planning model which enables decision makers to take vital decisions during the changing environment of the construction period. Goal programming (GP), a multiple criteria decision-making technique, is proposed for model formulation because of its flexibility and priority-base structure. The project is planned hierarchically in three levels—project, work package and activity. GP is applied separately at each level. Decision variables of each model are different planning parameters of the project. In this study, models are formulated from the owner's perspective and its effectiveness in project control is demonstrated.

Planning for project control through risk analysis:a case of petroleum pipeline laying

Projects that are exposed to uncertain environments can be effectively controlled with the application of risk analysis during the planning stage. The Analytic Hierarchy Process, a multiattribute decision-making technique, can be used to analyse and assess project risks which are objective or subjective in nature. Among other advantages, the process logically integrates the various elements in the planning process. The results from risk analysis and activity analysis are then used to develop a logical contingency allowance for the project through the application of probability theory. The contingency allowance is created in two parts: (a) a technical contingency, and (b) a management contingency. This provides a basis for decision making in a changing project environment. Effective control of the project is made possible by the limitation of the changes within the monetary contingency allowance for the work package concerned, and the utilization of the contingency through proper appropriation. The whole methodology is applied to a pipeline-laying project in India, and its effectiveness in project control is demonstrated.

New York mark-ups on petroleum products

In this paper we analyse rigidities in the behaviour of the mark-up on regular, midgrade and premium varieties of petrol in the New York area using a set of weekly frequency data and a methodology that analyses the pricing process using deterministic and stochastic techniques. The results are consistent across methodologies and indicate that the speeds of adjustment to the long-run equilibrium mark-up differ across varieties of petrol with margins of the premium variety falling faster than they rise, contrary to the popular claim of welfare-decreasing asymmetries in price transmission. © 2012 The Authors. The Manchester School © 2012 Blackwell Publishing Ltd and The University of Manchester.

Price transmission in the EU wholesale petroleum markets

This article employs nonlinear smooth transition models to analyze the relationship between upstream and midstream prices of petroleum products. We test for the presence of nonlinearities in price linkages using both weekly series constructed using official EU procedures and also daily industry series applied for the first time. Our results show that the estimated shape of the transition function and equilibrium reversion path depend on the frequency of the price dataset. Our analysis of the crude oil to wholesale price transmission provides evidence of nonlinearities when prices are observed with daily frequency. The nature of the nonlinearities provides evidence in support of the existence of menu costs or, more generally, frictions in the markets rather than supply adjustment costs. This result differs from that found for the U.S. petroleum markets. © 2012 American Statistical Association.

A simulation analysis of spoke-terminals operating in LTL Hub-and-Spoke freight distribution systems

DUE TO COPYRIGHT RESTRICTIONS ONLY AVAILABLE FOR CONSULTATION AT ASTON UNIVERSITY LIBRARY AND INFORMATION SERVICES WITH PRIOR ARRANGEMENT The research presented in this thesis is concerned with Discrete-Event Simulation (DES) modelling as a method to facilitate logistical policy development within the UK Less-than-Truckload (LTL) freight distribution sector which has been typified by “Pallet Networks” operating on a hub-and-spoke philosophy. Current literature relating to LTL hub-and-spoke and cross-dock freight distribution systems traditionally examines a variety of network and hub design configurations. Each is consistent with classical notions of creating process efficiency, improving productivity, reducing costs and generally creating economies of scale through notions of bulk optimisation. Whilst there is a growing abundance of papers discussing both the network design and hub operational components mentioned above, there is a shortcoming in the overall analysis when it comes to discussing the “spoke-terminal” of hub-and-spoke freight distribution systems and their capabilities for handling the diverse and discrete customer profiles of freight that multi-user LTL hub-and-spoke networks typically handle over the “last-mile” of the delivery, in particular, a mix of retail and non-retail customers. A simulation study is undertaken to investigate the impact on operational performance when the current combined spoke-terminal delivery tours are separated by ‘profile-type’ (i.e. retail or nonretail). The results indicate that a potential improvement in delivery performance can be made by separating retail and non-retail delivery runs at the spoke-terminal and that dedicated retail and non-retail delivery tours could be adopted in order to improve customer delivery requirements and adapt hub-deployed policies. The study also leverages key operator experiences to highlight the main practical implementation challenges when integrating the observed simulation results into the real-world. The study concludes that DES be harnessed as an enabling device to develop a ‘guide policy’. This policy needs to be flexible and should be applied in stages, taking into account the growing retail-exposure.