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What To Check Gas Production KPI

May 20, 2008
The purpose of gas production KPI is no different from all other KPIS found in many manufacturing and production industries. KPI, or Key Performance Indicator, aims to measure if a certain process and unit are achieving the desired target. All processes and their specific outputs are quantified to numbers from which corporate executives decide whether the business needs restructuring or whether the business is good as it is.

For gas production KPI, the production and reserves are the base measurement of business efficiency. There are two key determinants that will tell if the gas production unit is productive. First is the quality of the reserve and second is the efficiency level of how this unit is being managed. Quality is gauged through the process yield. The number of outputs produced on a daily basis is used to indicate whether the target is achieved or not.

With all the numbers at hand and with all the resources currently available, how they are managed is then measured through identifying what is desired against the actual results. If there is a poor yield against the supplies and resources at hand, then there is something wrong with the management strategy. Either this is totally revamped or simply tweaked.

Keep in mind that gas production KPI is measured in gas plants where the actual conversion of crude oil to gas happens. It is then necessary that the gas pipelines are also managed well to ensure that the pipeline performance are at an optimum level. Another means of measuring KPI are the emissions that will significantly impact the environment. These emissions include, but are not limited to, nitrogen oxide, sulfur oxide, particulate matters, and greenhouse gas.

Another key performance indicator in the production of gas is flaring. This is a process that ensures safety when excess gases are burned. There is too much pressure in gas plants that flares are used to maintain safety in the workplace. Gas in itself is a hazardous material that there is a need to use processes that will not compromise the people's health and safety, the environment, and the output.

Of course, the presence of financial return will never be out of the picture. The last thing--or sometimes the first thing--that is checked in every key performance indicator is how well a unit is doing in terms of financial performance and capability. In the long run, all these other metrics being checked for performance improvement will render lesser value unless the financial numbers are right. At the end of the day, what matters most is how much a company is earning, not how right it is doing in terms of processes.

It has been said that effort is not always equivalent to results. It is a sad fact that one has to embrace that efforts are not always equated to success. No matter how much effort you exert on your work, the end result is what will count on your belt. In gas production KPI, it is the financial return that is of highest significance.
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