application of service quality plan of mud logging services in pvd logging company

HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL OF
ECONOMICS & MANAGEMENT

MBQPM5

“PHẠM THỊ TIÊN QUẾ”

“APPLICATION OF SERVICE QUALITY
PLAN OF MUD LOGGING SERVICES IN
PVD LOGGING COMPANY

MASTER FINAL PROJECT
MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT

Ho Chi Minh City
(2016)


Page 2 of 44

STATEMENT OF AUTHENTICATION
*****
I would like to confirm that the contents presented in this thesis is the truthful work
and has been collected and analyzed by myself, under the directions of Dr. Jacques
Martin.
I did not copy other people’s work (published or otherwise) to complete my thesis.
All information has been collected during working and interviewing my colleagues.
Beside that, some contents were in my company’s documents such as procedures,

work instructions, reports.
I ensure that this thesis has not been submitted elsewhere in any form for the
fulfillment of any other degree or qualification.
Ho Chi Minh City, Apr 2016

Pham Thi Tien Que


Page 3 of 44

ACKNOWLEDGEMENT
In the process of preparation this thesis, I have received the care and help of my
family, teachers, friends and colleagues of PVD Logging Company.
My especial thankfulness to the instruction of Dr. Jacques Martin, who guided me
on the scientific method and content of the subject.
I would like to thank all lecturers of program who teach me valuable knowledge
during the course.
I also would like to thank friends in my class who are always willing support me
during the time I take part in the program.
I express the gratitude to my husband and daughter who are always behind to help
and provide to me many useful advices and much different assistance.
With my colleagues in Company, I would like to say thanks for many helping in
process of preparing thesis.

Sincerely,
Pham Thi Tien Que


Page 4 of 44

Comments of tutors


Page 5 of 44

Table of contents
- General Introduction
1. Subject introduction............................................................................ 9
2. Subject’s interest ................................................................................ 9
3. Objectives of the subject .................................................................. 10
4. Methodology..................................................................................... 10
- Part I: Service quality - input
 Chapter I – Company Introduction ........................................................ 12
1.1 Company Introduction .................................................................. 12
1.2 Mud Logging service introduction................................................ 16
1.3 Service quality plan introduction .................................................. 18
 Chapter II – Preparation of Service Quality Plan
2.1 Identification of scope of work required in the contract .............. 21
2.2 Establish the project...................................................................... 21
2.3 Set up quality objectives ............................................................... 21
2.4 Human resource preparation ......................................................... 22
2.5 Management responsibility........................................................... 23
2.6 Preparing the equipment and software ......................................... 24
2.7 Risk based thinking ...................................................................... 26
2.8 Training......................................................................................... 27
- Part II: Service quality - output
 Chapter I – Service realization
1.1 Conduct the operation of services ............................................... 28
1.2 Monitoring and measurement ...................................................... 32
 Chapter II – Improvement

2.1 Corrective action of nonconforming or customer complaint ....... 34
2.2 Lesson learnt from the result ........................................................ 39
2.3 Training ........................................................................................ 40
2.4 Risk assessment ............................................................................ 40
2.5 Management of change ................................................................ 40
2.6 Measurement ................................................................................ 41
2.7 Control of document .................................................................... 41
- Conclusion…………………………………………………………………43
- References………………………………………………………………….44
- Appendix 1


Page 6 of 44

List of abbreviation and definition
-

SQP: Service Quality Plan

-

PVDL: PVD Logging

-

Company is PVD Logging Company

-

Department is Mud Logging Department

-

HSEQ: Health – Safety – Environment – Quality

-

QA: Quality Assurance

-

QC: Quality Control

-

ITP: Inspection and Test Plan


Page 7 of 44

List of pictures and tables
Picture 1 – Company’s organization chart
Picture 2 – Some pictures of company service
Picture 3 – Estimated percentage of service of PVD Logging
Picture 4 – Clients of PVD Logging
Picture 5 – Data Engineer monitoring data from the well log
Picture 6 – Example of log data
Picture 7 – Mud Logging department’s organization chart
Picture 8 – Equipment to be used in operation
Picture 9 – Advantage of software components

Picture 10 –Using RPI
Picture 11 – Data during monitoring
Picture 12 – Map of data transfer
Picture 13 – Fishbone analysis
Picture 14 – Chart of nonconformity
Table 1

- Data of customer survey

Picture 15 – Customer survey result


Page 8 of 44

Main content of report
GENERAL
INTRODUCTION

Introduction
of
subject,
methodology, plan of report

interest,

objective,

--------------------------------------------------------------------------------------------

PART I:

SERVICE QUALITY
INPUT

CHAPTER I:
Company introduction
Mud Logging service introduction
Service Quality Plan introduction
CHAPTER II:
Preparation of service quality plan

---------------------------------------------------------------------------------------------------CHAPTER I:
Service realization
PART II:
SERVICE QUALITY
OUTPUT

CHAPTER II:
Improvement

Conclusion
Reference


Page 9 of 44

General Introduction
1.

Subject introduction:

In recent years, the market outlook of the oil & gas service industry in Southeast
Asia has witnessed the escalating competition among global drilling contractors all
over the world, those who strived to expand their business toward this area to claim
their market share. To survive the pressure, it is of extreme importance that the
service quality is maintained and improved to ensure the satisfaction of customers
at all time. In fact, this would be the most essential factor affecting our ultimate
target of service quality. Bearing that in mind, PVD Logging always takes the first
move to thoroughly understand clients’ needs, actively seeks for their comments
and feedback to identify inadequacy, timely mitigate potential loss, and thereby,
offering clients with the best value of service.
Defining goals is direct competition with multinational competitors, the company
has been investing significantly in the quality management. The company has made
improvements in the systems; equipment and software are used, enhancing the
convenience and accuracy. The research for services and new devices also achieved
satisfactory success, has been operating in the domestic and international contracts.
To control well the service provided to customers from input to output, the
company has established Service Quality Plan (SQP) which designs activities for
each project of the services. However, the application of this SQP is not fully so
there are some nonconformities still exit in operation.
In this study, I would like to introduce one of the tools to control and assurance the
service quality of company to customers. I would like to select the subject of my
thesis is:
“APPLICATION OF SERVICE QUALITY PLAN OF MUD LOGGING
SERVICE IN PVD LOGGING COMPANY”
2. The subject’s interest:
Quality Service Plan is a document that together specifies quality standards,
practices, resources, specifications, and the sequence of activities relevant to a
particular product, service, project, or contract.
SQP shall define:
 Objectives to be attained (for example, characteristics or specifications,

uniformity, effectiveness, aesthetics, cycle time, cost, natural resources,
utilization, yield, dependability, and so on);
 Steps in the processes that constitute the operating practice or procedures of
the organization;
 Allocation of responsibilities, authority, and resources during the different
phases of the process or project;


Page 10 of 44



Specific documented standards, practices, procedures, and instructions to be
applied;
 Suitable testing, inspection, examination, and audit programs at appropriate
stages;
 A documented procedure for changes and modifications to a quality plan as a
process is improved;
 A method for measuring the achievement of the quality objectives;
 Other actions necessary to meet the objectives.
Excerpted from the Certified Manager of Quality/ organization Excellence
handbook, ASQ Quality Press, Fourth Edition, 2014 pages 264-266.
3. Objectives of the subject:
 Helping reader to understand the input and output elements of the operation
of Mud Logging service.
 See the enhancing the commitment of my company with customers
 Listing out some shortcomings need improving with my recommendation.
4. Methodology:
4.1 Participants:
My research methodology requires gathering relevant data from the specified

documents and compiling databases in order to analyze the application of SQP in
Mud Logging department when they have contracts.
To have information, I collect data by interviewed the relevant people: Manager of
Mud Logging department - Data engineer; Quality Manager.
Data collection is the process of gathering and measuring information on targeted
variables in an established systematic fashion, which then enables one to answer
relevant questions and evaluate outcomes. The data collection component of
research is common to all fields of study including physical and social sciences,
humanities and business. While methods vary by discipline, the emphasis on
ensuring accurate and honest collection remains the same. The goal for all data
collection is to capture quality evidence that then translates to rich data analysis and
allows the building of a convincing and credible answer to questions that have been
posed (From Wikipedia, the free encyclopedia).

Besides that, I read SQP and relevant documents mentioned in SQP such as
Operation Manual, Monitoring and measurement, document control, Training and
development, etc. During reading I noted the queries in order to make clear with
person in chart. These notes were so important for me to study the relevant of SQP
and other documents and I saw some problems which need to be improved.


Page 11 of 44

4.2 Instruments:
To have much data, I read the reports of the monitoring and measurement of the
activities including daily reports, asset reports, customer satisfaction reports, failure
reports, etc.
4.3 Procedures:
The Procedures section is based directly on the research questions. During this
paper, I hope to shed light on the following questions through my research:

 What is the purpose of using SQP in operation?
 What are the input and output when applying SQP?
 How are the processes controlled?
 What do the results achieve when applying SQP?
 Is there any GAP between SQP document and the real practice?
 How about the customer satisfaction?
4.4. Analysis data:
From the results of the reports, I used the quality tools including chart and fishbone
to analysis the results in 3 recent years of customer satisfaction and the causes of
failure in 2015. Next step is analyzing the collected results. The goal of analysis of
results section was to point out what interesting information of results contain and
why.


Page 12 of 44

PART 1
Chapter I: COMPANY INTRODUCTION
1.1 Company introduction:
1.1.1 Company background:
 Company name: PETROLEUM WELL LOGGING SERVICES
 Short name: PVD LOGGING CO., LTD (PVDL)
 Established year: 2004
 Employees: 210 people
 Website: www.pvdrilling.com.vn
Establish in October of 2004, PVD Logging (PVDL) has endlessly expanded
the capacity of high-tech equipment system and high-quality human resource to
gradually affirm the position as a company providing high technology services
in the Oil & Gas industry.
As a wholly-owned subsidiary of PV Drilling Cooperation, PVD Logging

specializes in providing advanced technical services for petroleum drilling
operations such as mud logging, slick-line, well testing.
PVD Logging has joint operations – joint ventures with leading service
companies to ensure the ability to work on challenging wells, to satisfy all the
customized demand of the clients, ready to introduce its business in the
markets of the continent and the world.
1.1.2 Company’s organization chart:

Picture 1 – Company’s organization chart


Page 13 of 44

1.1.3 Company’s key activities:
Company has been providing 4 main services as following:

Mud Logging

Wireline

Well Testing

Wellsite Geologist

Picture 2. Some pictures of company services


Page 14 of 44

Services

10%
15%

45%
Mud Logging
Slickline
Well testing
30%

Wellsite

Picture 3. Estimated percentage of services of PVD Logging

Picture 4. Clients of PVD Logging


Page 15 of 44

1.1.4. Vision & Mission:

1.1.5 General Strategy:
-

-

-

-

-

Continue to boost the operating capabilities, concentrate on enhancing the
management activities as well as maintaining the development of Risk
management, and expand market to ensure the stable business and take
advantage of business opportunities under the circumstance of significant
change in oil price and drilling market.
Improving the quality of service, professionalism confirmed by a Vietnamese
brand in International market.
Develop the high quality human resources and experts with visible
competitive advantage to meet the specific needs in the oil and gas industry
and continuous requirements in terms of technology and management.
Continue to maintain and develop integrated management system Health –
Safety – Environment – Quality (HSEQ) abiding by international standards to
ensure high efficiency, environmental sustainability, and enhance company’s
reputation.
Building a “Sustainable” business culture, in which humanity, profound care
of community and social security, and the professionalism of each employee
in company are the foundation for sustainable development.
Seeking for channel development services overseas


Page 16 of 44

1.2 Mud Logging service introduction:
1.2.1 Service Description:
This is the main service of company with 90% domestic market.
The services of Mud Logging includes:
+ Standard package:
o Monitoring and recording drilling and geological parameters
o Detection and Interpretation of Hydrocarbon

o Evaluation of Formation
o Database Management
o Applications of Drilling and Engineering
+ High –end optional services:
o Digital Camera Microscope
o Early Kick Detection – EKD
o Real Time Transmission
o GC Tracer Real Time Formation Evaluation
PVD Logging’s Mud Logging Services is an innovative, customer driven
Surface Logging provider to the oil and gas industry.
Mud Logging examines and analyzes geological information contained in
formation cuttings and drilling mud, to determine if oil and gas are
encountered during well drilling. Mud Logging also provides critical safety
functions such as determining pore pressure; kick control and ambient gas
monitoring. Mud Logging is used while drilling most exploratory and many
development wells, both on and off shore.

Picture 5. Data Engineer monitoring data from well log.


Page 17 of 44

Mud Logging services range from basic unmanned gas detection to
sophisticated full serviced, manned operations. Services have evolved to
become the information center for the well and included electronic
monitoring of drilling parameters. These parameters include weight on bit,
torque, penetration rate, mud levels, pump speed and so on, and third party
service provider data.
Basic unmanned services use a cost effective Mud Logging unit that provides
simple gas detection to identify potentially productive pay zones and enhance

drilling safety. The system is configurable for hydrogen sulphide (H2S)
monitoring. The units are equipped with alarms to alert the user(s) if gas level
increases or equipment problems occur and works in conjunction with data
logging and drilling penetration rates.
Mud Logging Service provides:
 Advanced drilling monitoring systems capable of gas detection,
electronic monitoring and database recording for a full range of drilling
parameters on manned or unmanned operations.
 Experienced crews and additional tools to monitor and analyze both the
geology of the subsurface information and the drilling parameters.
 Various combinations of services and crew sizes depending on
customer requirements and well complexity.
 A portable laboratory ( Mud Logging Unit) that houses the hardware
and software
 Analysis conducted at wellsite during the drilling process and samples
are returned to the operator after analyzing process.


Page 18 of 44

Picture 6. Examples of Log data
1.3 Service Quality Plan introduction:
1.3.1 Generality:
The PVD Logging’s purpose is to provide the best quality services in a
safe manner. Fulfilling this purpose, PVD Logging is committed to
achieving the following:
o Successfully complete the scope of work of the contract for the
Mud Logging service in accordance with the specified
requirements of the client.
o Deliver the best quality services with client satisfaction.

o Successfully hand over all data, reports and final well reports
within the targeted time.
In order to enhance the PVD Logging (PVDL) commitment in achieving
the above aims, a Quality System will be established according to the
requirements of Quality Management System based on ISO 9001: 2008.


Page 19 of 44

The PVD Logging’s commitment to quality systems is an integral part of
the philosophy of continuous improvement. This improvement will be
achieved through training at all levels and optimizing management
capabilities and methods.
It is mandatory for all personnel involved in the Services (including
subcontractor personnel) to ensure that the principles of Quality Assurance
are adhered to at all times. All disputes regarding quality matters will,
wherever possible, must be resolved at the level of management closest to
the task in a mutually acceptable manner. The service Engineer will refer
to the Service Manager for resolution any issues that cannot be decided in
this way.
All employees, suppliers and sub-contractors of company involved in the
Service shall comply with the requirements outlined in this plan and the
associated quality requirements in the Contract.
This SQP has been written to fulfill the requirement of the Contract and
meet the ISO 9001: 2008 requirements.
PVD Logging will be responsible for the QA and QC of its works under
the Contract.
Meanwhile, PVD Logging will develop to maintain and update Service
Quality Plan (SQP) in order to achieve the organization objectives.
1.3.2 Purpose of Service Quality Plan:

The Service quality plan (SQP) has been established to ensure that all the
quality assurance for the permanent works are to comply and be checked
under the SQP of Clients.
Hence, the SQP is used by PVDL to conduct internal checking for their
works, including the temporary works related to the operation of the Mud
Logging Unit and other temporary works, and pre-checking activities prior
to the final and official checking by Client for the permanent works.
When receiving the tender requirements of clients, company has to identify
the scope of service which company will provide to customers. The
requirements may be a full package of Mud Logging services, but also are
some parts of the package. The SQP shall be developed to control the
execution of services or used of service-related within the scope of work
that company provides.
In SQP’s contents, company needs to address each of the following:
 Identification of scope of work required in the contract


Page 20 of 44

 Required activities and documentation for compliance with
customers and legal requirements.
 Management commitment to the services
 Identification of human resources with responsible functions for
each activities, including external parties
 Identification and reference to control of service equipment
including monitoring devices
 Identification and controls of risks
 Identification of the required deliverables
 Identification of the required records.
The service quality plan shall be approved by the organization and documented.

One copy shall be communicated to the customer as required in the contract.
The goal of the Service Quality Plan is to ensure that the project details are
defined and communicated with all stakeholders in order to minimize risk and
eliminate operational downtime.


Page 21 of 44

CHAPTER II: PREPARATION OF SERVICE QUALITY PLAN
In this chapter, I would like to introduce the steps of preparation before conducting
the job. These steps shall be description in the Service Quality Plan clearly in order
to show the company’s preparation as input the operation process. This way helps
company introduce its capacity of company to customers before signing the
contract.
2.1. Identification of scope of work required in the contract:
When receiving client’s request, management will review the contract, scope of
work and program whether the requirements are in the scope of work of the
contract or not.
The identification of the scope of work is necessary for Commercial department
and Mud Logging department to prepare necessary resources and equipment to
provide services as customers’ requirements.
In Mud Logging services, the scope of work shall be identified by two groups of
services including STANDARD package and HIGH –end optional services. Basing
on the customer’s offer, company will determine which group is required. The price
shall be charged and the service quality plan shall be written to meet all
requirements of clients in the project.
2.2 Establish the project:
The Service Team shall be set up with specific program. The management is
responsible for support the team in identifying the capacity of personnel carried the
job and doing risk assessment in the kick of meeting before developing the job. The

identification of risk shall help company avoid the lost and the customer’s
complaint as well as violation of legal requirements.
2.3 Set up Quality Objectives:
Quality objectives shall be established with the aim to enhance the Client
satisfaction and continually improve the effectiveness of the execution of contract.
The established quality objectives, actions and monitoring method shall be
communicated within the Service team through Meeting, Training session and
display on the notice board, and the target are listed below:
 Customer satisfaction : increasing customer satisfaction
 Nonconformance (relative to Quality System/Procedure):
minimize nonconformance at the completion of the Service.
 Annual Lost Time Injury: frequency to continue at Zero
 Training: Accomplish staff training in accordance with
training Matrix.
 Performance monitoring: through weekly surveillance to
monitor.


Page 22 of 44

 Legal compliance: case of violation at Zero.
.
The objectives and actions shall be reviewed regularly to ensure their continuing
suitability, adequacy and effectiveness.
2.4. Human resource preparation:
Each project shall have from 14-18 employees to carry out the job. There are Data
Engineers, Mud Loggers and Sample Catchers.
The required human resources will be evaluated with reference to their past
performance, education, experience and potential.
Appropriate details shall be documented and attached to the employee’s personnel

record files.
Another key part of this stage is the preparation and allocation of personnel.
Department has a competency system in place whereby all personnel competencies
are assessed by globally certified assessors. The prepare resources process also
includes links to the competency system and ensure that the right, competent
personnel are assigned to the job.
Below are the job Descriptions and responsibilities for each position:
* The Data Engineer:
 Monitoring all drilling engineering data.
 Performing all pressure and related calculations.
 Informing operating company representatives such as Wellsite Geologist or
Drilling Supervisor regarding pressure plots, overpressure and other data.
 Working together with other personnel at the Wellsite, such as the Mud
Engineer, MWD Engineer, Drilling Crew,… for the effective operation.
 General supervision of the mud logging unit and crew.
* The Mud logger:
 Performing the Pressure Engineer's tasks if Pressure Engineer is not at the
wellsite.
 Checking all lithological and fluid samples and producing the mud loging.
 Informing operating company representatives such as Wellsite Geologist or
Drilling Supervisor regarding geological data, abnormal drilling parameters,
pressure plots and other data.
 Calibrating and maintaining all mud logging sensors and equipment.
 Training and supervising Trainee Mud logger.
* The Sample Catcher:
 Collecting the ditch cuttings at the required intervals.
 Preparing all samples for shipping and storage.


Page 23 of 44

 Helping the mud logger to check and maintain all mud logging equipment at
the wellsite.
 Aiding the Wellsite Geologist and other mud logging personnel during
operations such as core and wireline fluid sample recovery.

Picture 7. Mud Logging Department’s organization chart
2.5 Management Responsibility
The purpose of establishing management responsibilities is to achieve the
organization objectives and quality policy and make everyone within the
organization to work hard under the clear targets.
2.5.1 Management Commitment
The Department Manager shall be responsible for ensuring that all management is
aware of and committed to the objectives and commitments set for company and
documented in the Quality Policy.
In order to achieve the organization’s objectives, the Department Manager shall
provide all management with the required human resources, equipment and support


Page 24 of 44

required to achieve the tasks they have been allocated in accordance with the
Company Policy and this Service Quality Plan.
Management and staff shall receive the same high level of commitment and support
from their superiors as they expect from their subordinates.
All personnel associated with company are responsible for ensuring that the quality
of their work meets all stated and implied needs and is carried out in accordance
with this Service Quality Plan. Any actual or potential non-conformances
encountered must be immediately reported to the appropriate Supervisor or
Manager.

2.5.2 Customers Focus
The Client requirements are defined in the contract and fulfillment of these
requirements is the company fundamental objective.
Company’s aim is Customer Satisfaction:
 all Service matters shall be considered with this in mind
 all Service matters shall be completed within reasonable time
 all Service matters shall be constructed as according to the relevant
documents.
Regular contact and discussion shall be maintained with the relevant personnel
form the Client to ensure that company is fully aware of their opinions, point of
view and have ample opportunity to receive feedback and discuss issues.
It is vital to the effective running of the Service that a friendly, opened and
supportive relationship is built and maintained with Client.
2.6 Preparing the equipment and software:
2.6.1 Equipment:
Department shall ensure all equipment for the Inspection, Measuring and Testing
are Controlled, Calibrated and maintained in good condition.
The appropriate Inspection, Measuring and Testing Equipment will be identifying
the capability, stability and range of measuring and testing against the requirement
technical application.
The Service Engineer shall be responsible for the Calibration Schedule of the
Inspection, Measuring and Testing Equipment and will organize with the
appropriate Site Engineer the responsibility of the Equipment needed to be
calibrated.
After calibration, a label put on the calibrated equipment shall indicate:
1. Actual calibration date
2. Next calibration date
All applicable calibration certificate of equipment for Inspection, Measuring and
Testing on this site shall be registered and maintained in the Calibration Register.
The following information shall be found:

1. Equipment number


Page 25 of 44

2. Actual calibration date and report numbers
3. Next Calibration date
4. Status
All equipment shall be handled and stored in a manner to ensure fitness for use and
maintenance of traceability. It will be maintained as specified by the manufacturer.
Any equipment that is out of calibration, damaged or not suitable for the required
accuracy will be separated from the rest of the conforming equipment. This
Nonconforming equipment will be clearly identified by marking, and it will be sent
for calibration or repair.

Picture 8. Equipment to be used in operation