TQM: Putting the Energy Back into the Energy Business

Article

Romero, Rocky R.; Howard, Jennifer M.   (1992, ASQC)   Texaco Exploration and Production, Inc., New Orleans, LA

Annual Quality Congress, Nashville TN    Vol. 46    No. 0
QICID: 9888    May 1992    pp. 677-683
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Article Abstract

In 1990 Texaco's CEO (Jim Kinnear) conceived the mission of making Texaco "one of the most admired companies in the world and the competitive leader of the oil industry." To this end Texaco implemented a quality process throughout the organization.

They analyzed fundamental processes, restructuring into five business units and a regional services group. After they developed a mission statement, they implemented the quality process by selecting internal quality consultants to be the educational focus of the quality effort, communicating the new quality orientation to all staff, forming teams comprised of everyone in the company, training and educating staff in quality skills (like customer focus, process mapping, etc.), following up this training with continual coaching, and reanalyzing and evaluating the teams, including developing some cross-functional teams to address multi-departmental needs.The results were a savings of 20 million dollars, improved interdepartmental communication, more visible management, an open environment for creative problem-solving, an increase in "team spirit", an improved focus on Texaco's customers.

By implementing TQM, Texaco has come closer to its goal. Although the change was not easy, the rewards certainly justified the effort.

Keywords

Case study,Customer focus,Energy,Mission statement,Oil industry,Teams,Texaco,Total Quality Management (TQM),Work


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