Analysis Of Decision Making In Oil Services Businesses On The Example Of Schlumberger Company


The oil and gas industry is an organization giving the fundamental things and administrations that are required by the universal oil and gas area to investigate concentrate and transport oil and flammable gas at the refinery and afterward at last to the customer. Schlumberger is the biggest oil producer organization on the planet and the most perceived administration organizations available since 1920 and in South America since 1929.

Decision making

It is a procedure to take or settle on essential choices for an organization. The basic leadership process assists the association with detecting the issue and gave conceivable arrangements of an issue. The well ordered basic leadership process can assist association with taking globally and attentive choice by gathering pertinent data and characterizes options answers for an issue.

Basic model for decision making

The decision-making process begins with the examination of the nature of the problem then followed by the generation and assessment of possible options and ends with the choice of an option. It consists of 5 steps:

Stage one: examination of the nature of problem.

Stage two: generation of possible solutions.

Stage three: selection among the possible solutions.

Stage four: performance of the decision.

Stage five: follow-up and control.

People who are involved in decision making

The choice making groups are formed with the blended personnel of various departments. Their numbers vary from 5 to eight. those include one-of-a-kind personnel of different departments of the corporation for example finance branchmanagement department legal department protection branch maintainer branch etc. these groups are made like 2 individuals from Maintance 1 from finance 2 from legal department 1 from protection officer or protection marketing consultant and 2 within managerial position.

Effective decision making

Effective decision-making will be achieved by finding choices additionally as decoding data regarding key events that will have an effect on the performance of a corporation. So the performance of the organization should be taken under consideration or results. By making an attempt to gauge solely product methods and results tend to underestimate the role of however choices area unit created which might have an effect on the standard of the decision-making process while not taking under consideration all the affects of the stakeholders.

Problems and challenges

The way oil services businesses control their selections with big matters together with centers have been recognized as a huge assignment. For business person decisions are made on the premise of preservation inputs statistics and management frameworks however wherein decisions contain enormous things together with centers decisions are commonly associated with expenses in particular because of the lack of helping information and ancient files. In this case managers search for the most realistic answer without thinking of all inner and outside constraints.

Three main operational facilities:

    Asset Management: These are exercises that are a precise and composed association that positively and reasonably oversees resource frameworks execution dangers and costs keeping in mind the end goal to accomplish its key arrangement.

    Facility management: It is characterized as a multi-discipline practice to give the usefulness of the building condition by conveyance of help administrations to association.

    Facility manager: It is characterized as a multi-discipline practice to give the usefulness of the building condition by conveyance of help administrations to association.

    Example according to Schlumberger

    The facilities were in operation until 2015 when low oil prices led to a low in activity and low in financial gain was affected by high maintenance price. Based on recent market conditions Schlumberger achieve in very clear and detailed manner to justify the assets of large facilities and reduce its impression in order to control costs and expenses in order to return to financial gain.

  1. Examination of nature of problem: The aim of this step is to supply steerage and a basis to low the chance of generating not an appropriate answer or excessive use of structure resources. It is achieved by different steps. These are:
    • Detecting the problem: Schlumberger must examine the likelihood of desegregation resources and optimizing the utilization of common facilities or existing facilities. This creates a scientific approach to picking from existing facilities assessing completely different phases to supply a read on the far side a price analysis or monetary analysis.
    • Fix objectives: In order to set an objective to provide the success of the decision model a checklist has been suggested. The checklist calculates whether the proposed overall objective falls within the SMART objectives category or not.
    • Recognize the problem: This step indicates whether or not the detected drawback is strategic or non-operational. If the matter is strategic the conventional sequence of the choice model should be followed but if the choice is operational it's attainable to proceed to the third step.
    • Set up Decision making group: This step helps to point the best decision-making cluster respecting the character of the matter and therefore the structure scenario. The choice cluster was shaped with a mixed cluster of workers from multiple departments. The cluster has eight participants. the thought behind this mixed cluster of various sectors or departments of society is a shot to make a a lot of objective vision whereas achieving to seek out the simplest answer to use.
  2. Advent of possible solution: This step has further steps. The primary one is to gather and look at records about each choice and the second is to use strategies to create favorable eventualities.
    • Gather and examine of data: Due to the lack of to be had ancient information a SWOT analysis changed into perform for every institution to discover the strengths, weaknesses, opportunities and threats or danger of every.
    • Applying innovation solution generating strategies: After several conferences and group discussion wherein the choice-making organization turned into actively engaged in innovative solutions a few situations were presented wherein each scenario will be assessed consistent with its convenience and acceptability.
  3. Selection/ choice among possible solutions: The goal of this step is to evaluate the viable answers according to criteria with a purpose to reach a favorable answer. This calls for figuring out the assessment criteria and then comparing a couple of options the usage of the chosen standards. These steps are provided as follows:
    • Pick out evaluation criteria: It evaluates the standards in which feasible answers are as compared. It is far based at the choice making group in which the selection is could be considered as suited.
    • Convenience check in keeping in every facility: Of the three comfort checks the facility has to need the talents and resources to use the specified changes which permit it to function as an included facility.
    • Desirability test for facility: The criterion for that is acceptability or desirability. A few problems can be revel in due to historical information frictions. Some installations will result in a wonderful answer and others to a bad solution. The bad is discarded speedy.
    • Making use of decision rule: The purpose of this step is to examine the decision rule to attain at an answer. To do those two opportunities gear can be used to calculate the favorable answer. The primary device may be a selection tree. From the execution of this tool an optimum opportunity will be drawn.
    • Deciding a solution: As soon as all the records become accrued it changed into then viable to calculate the favorable solution for optimizing Schlumberger's installations.
  4. Implement decision: The execution eliminate includes arranging and conveys the required exercises with the goal that the picked arrangement really takes care of the issue. As the arrangement of this arrangement requires time so this will just present the choice gathering stage. It ought to be noticed that the arrangement isn't just to change the office into a planned center point covering all wire line benefits in Schlumberger, yet that will likewise be expanded to different answers for be put into impact for the others offices in view of conceptualizing and discourse session helped out through the choice model.
  5. Follow up and control: This progression shows that office chief's ensure that the arrangement is really pursued. It is basic that offices administration can bolster the appropriately executed structure with the common application to control and gather all data from different errands and administrations.


Decision making is difficult factor for all the business. Some decisions are obvious and can be taken easily and some decisions are complex and take much more time. Some of the decisions are taken by the groups. In Schlumberger, decision group are made from different employees of different departments. This help in the effective decision making. The group follows the different steps of decision making (harc analysis and risk control) to achieve their desire task. It helps to minimize the loss and maximize the profit.

18 March 2020
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