Proposed Materials Management Improvement for Newly Operated Oil and Gas Company (Case - Black Gold EP)

Abstract

In order to remain competitive, oil and gas companies differentiate themselves by being able to efficiently produce their product. Therefore, ability to manage supply chain becomes one of differentiation factors to gain competitive advantage in industry, including materials management. This research aimed to propose the improvement in Black Gold EP’s materials management. The improvement process was done through qualitative approach of one-on-one interviews that compared the findings with the literature review. The results of the process found there were 6 (six) challenges that are considered as the root causes of materials management issue, they consisted of (i) lack of quantity control, (ii) no standard operating procedures, (iii) incompetent personnel, (iv) insufficient integration of information, (v) no materials preservation, and (vi) no quality inspection. Furthermore, there were 6 (six) proposed solutions that were built out of these root causes to answer the research question. Finally, to ensure the success of the implementation and enablement of continuous improvement, stakeholder engagement, early strategy development and deployment of principal of materials management were recommended.

Keywords: Materials management, oil and gas, supply chain management