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Implementation of the Quality Management Process at the M.W. Kellogg Company

IP.com Disclosure Number: IPCOM000218522D
Publication Date: 2012-Jun-05

Publishing Venue

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               SESSION N
QUALITY IMPROVEMENT INTHE PETROLEUM INDUSTRY

IMPLEMENTATION OF THE QUALITY MANAGEMENT PROCESS AT THE M. W. KELLOGG COMPANY

Galloway H. Hudson

Quality Management Specialist
The M. W. Kellogg Company

Three Greenway Plaza

Houston, Texas 77046

ABSTRACT

   This paper relates The M. W. Kellogg Company's experience to date in applying modern Quality Management principles (as expounded by Deming, Juran, Crosby, et al) to the execution of Engineering/Procurement/Constructionprojects. It describes Kellogg's Quality Management approach for defining requirements on projects so as to avoid disruptive changes and rework, and also how the Quality Management Process is being used to improve performance in other areas of the

   The objective is to enhance the quality and value of the services being performed at all levels, while simultaneously working to eliminate rework, inefficiencies and unnecessary costs.

INTRODUCTION

    Like the petroleum and petrochemical industries it serves, The M. W. Kellogg Company has undergone turbulent changes during the 1980's. Large variations in market demand, falling prices, overcapacity, changes in ownership, and now increasing demand - in short, all of the afflictions visited upon the oil patch - have impacted as well the corn anies that serve it, certainly not least of all the full service Engineering/Procurement

                Construction (EPC) contracting organization. With the objective of remaining the best in our industry in terms of quality and value despite such turmoil and uncertainty, Kellogg has adopted a top-down, corporate-wide Quality Management Process as a strategic imperative. It is now operative at all levels and in all geographic locations, although company management would be the first to acknowledge that the quality journey, which is never-ending, has only just begun. This paper describes some of the techniques used to date to integrate Quality Management principles into all aspects of our operations, particularly those used in the executionof EPC projects.

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BACKGROUND

    Founded in 1901 as a small pipe fabrication business in New York City, Kellogg has been a major force in the petroleum/petrochemical EPC industry since the early 1920's.Kellogg's world headquarters have been located in Houston since 1970,and the firm became a part of Dresser Industries effective January 1, 1988.It has built a strong technical reputation by successfully serving the petroleum, petrochemical, chemical, fertilizer and gas processing industries worldwide and is consistently ranked near the top in ENR's "The Top 400 Contractors" annual survey.

Some technical highlights over the past seven decades include:

First commercializationof the Cross thermal cracking process (1920's) Leaders in lube oil plant design (1930's)

Pioneering wartime work in fluid catalytic cracking, toluene and butadiene plant design, and design of the K-25gaseous diffusion plant at Oak Ridge (1940's)

Firsts in olefins-from-naphtha, phenol-fro...