Subcontracting strategy for future SBM offshore projects and its Dissertation

Subcontracting strategy for future SBM offshore projects and its implemetntation - Dissertation Example Subcontractors have increasingly become important players in enhancing the productivity and economic strategies of a company. However, not much empirical studies have been done on these issues. The main purpose of this study is to investigate the process of subcontracting and find options for optimizing the value chain in the oil & gas industry by reviewing and analyzing previously written literature on the chosen topic for the research. In the literature review section, the concepts of subcontracting, risk management, contracts, project management, supply chain management, value chain and transaction cost theory are discussed. A single case study was applied in this thesis. The company chosen for the case study is SBM Offshore and is located in Netherlands. To carry out the research, a qualitative research approach was implemented. Primary data was collected through semi structured interviews. In addition to this, secondary data from different sources such as articles, journals, boo ks and company resources were used to construct or build the theoretical frame of reference for the thesis. The subcontracting philosophy should stipulate that the scope of the work to be subcontracted will be determined by risk assessment and performance of subcontracting companies. Also, contract requirements will meet regulatory compliance of safety and performance along with meeting the company’s standards. Table of Contents Acknowledgements 2 Abstract 3 List of Tables 6 List of Figures 6 CHAPTER ONE 1 1.0 Introduction 1 1.2 Background of the Study 2 1.3 Statement of the Problem 3 1.4 Purpose of the report 3 1.5 Introduction to SBM Offshore 4 1.6 Overview of Operations 4 1.7 Project Aims and Objectives 5 1.8 Project Objectives 5 CHAPTER TWO 7 2.0 Literature Review 7 2.1 Project Management 7 2.2 Subcontracting 8 2.3 Contracts 8 2.3 Risk Management 9 2.4 Theoretical and Conceptual Framework 11 2.4.1 Transaction cost analysis (TCA) 11 2.4.2 Supply chain management theory 14 2.4.3 Porter’s value chain 15 CHAPTER THREE 17 3.0 Research Methodology 17 3.1 Research Design 17 3.3 Research Strategy 18 3.4 Case study Approach 18 3.5 Population 19 3.6 Data Collection and Instrumentation 19 3.7 Data Analysis 20 3.8 Ethical Considerations 21 3.9 Limitations and De-limitations 22 CHAPTER FOUR 23 4.0 Data Presentation, Analysis and Interpretation 23 4.1 Quantitative Study 24 4.1.0 Participant Demographics 24 4.1.1 Subcontracted work 25 4.2 Case Study Analysis 26 4.3 Subcontracting Scope of Work 28 4.3.1 Structural topsides 29 4.3.2 Piping 30 4.3.3 Electrical 30 4.3.4 Instrumentation 30 4.4 Subcontracting Strategies 30 4.4.1 Lump sum or reimbursable contract 31 4.4.2 Subcontract strategy 31 4.4.3 Scope control 32 CHAPTER FIVE 35 5.0 Conclusion 35 References 36 Appendix I – Engineering deliverables by design phase 41 List of Tables Table 1: Demographics of the study participants....................