Why Deming Matters in Oil and Gas Exploration

When it comes to Deming, I have noticed that there are three categories. Firstly, they are superfans like me; secondly, they have heard of him but don't know why he matters; and thirdly, they have never heard of him. According to my conversations, most people I meet fall into the second category. Deming's Journey to Profound Knowledge covers his life and learning journey. I thought a "Why Deming Matters" series in different industries would be a helpful way to educate people about his management philosophy.

Deming and Oil and Gas Exploration

Through Dr. Deming's principles and methodologies, oil and gas industry organizations can improve their processes, achieve operational excellence, and ultimately improve performance. There are several reasons why Deming's principles and methods are essential in the oil and gas exploration industry:

Quality management

The oil and gas industry has many quality management challenges, such as poor communication between teams and management. Organizations can pursue continuous improvement by following Deming's principles, such as the Deming Cycle (PDSA).

Operational excellence

Safety and efficiency are paramount in the oil and gas industry, so Deming's principles can help companies achieve increased operational performance.

Company performance

According to a study conducted in Indonesia's oil and gas industry, Deming's principles, world-class companies, operational excellence, and company performance are positively correlated.

Reliability

According to Deming, reliability is tied to manufacturing processes, and it is better to design manufacturing processes to ensure quality. Procedures can be designed to provide safe and reliable operations in the oil and gas industry.