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Author:Lastikka, Ilmari
Title:Productivity Measurement in International Oil Refining Business
Tuottavuuden mittaus kansainvälisessä öljynjalostusliiketoiminnassa
Publication type:Master's thesis
Publication year:2005
Pages:94 s. + liitt.      Language:   eng
Department/School:Konetekniikan osasto
Main subject:Energiatekniikka   (Ene-47)
Supervisor:Fogelholm, Carl-Johan
Instructor:Haapala, Minna ; Pesola, Ilpo
OEVS:
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Location:P1 Ark TKK  5893   | Archive
Abstract (eng):The main purpose of the study is to create a measurement system for productivity for a Finnish case company, which is Neste Oil Corporation's Oil Refining Division.
For this purpose it was necessary to clarify the general relationship between productivity and profitability concepts in the oil refining business and analyse and measure variables explaining productivity and profitability.

The theoretical framework of the study is based on the literary review and on the interviews of experts in the company, in academic world, in industry and industrial organizations.

The productivity measurement model constructed in the study was based on specific requirements (desiderata), which the model should satisfy.
In selecting and defining the desiderata theoretical, empirical and practical requirements for the model were set.
Index theory and Excel -program were utilized for construction own indicators for productivity and profitability.

The validity and reliability assessment of the results were based on justification of the whole research process, which led to the obtained empirical results of the study.
Also discussions and consultations with experienced key people and experts in the company gave valuable contributions to the validity and reliability assessment of the developed productivity and profitability indicators.

This was the first time in the company, when total productivity and partial productivities were measured using the direct measurement approach.
The total productivity has increased during the observation period.
Because of the cost structure of Neste Oil the partial productivity of material has a dominating influence on total productivity and its changes.
The results of the study give valuable information for the company for actions in productivity development and profitability increase.

The results of the study suggest that in order to understand total productivity of a company it is necessary to consider partial productivities of each input and even factors beyond them.
Therefore, total productivity measurement research should be based on a careful analysis and evaluation of a decomposed data in which all managers and workers of a company should be involved to increase their commitment for actions of productivity increase.
The establishment of a comprehensive information system, including a measurement system for productivity, is recommended for the company.
ED:2005-11-25
INSSI record number: 30027
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