Sample Fyp

THE STUDY OF THE EFFECTIVENESS OF RESOURCE PLANNING IN
OIL AND GAS INDUSTRY
by
Mohammad Nazhri Bin Mohammad Hashim
Dissertation submitted in partial fulfilment of

the requirements for the
Bachelor of Engineering (Hons)
(Civil Engineering)
DECEMBER 2014
Universiti Teknologi PETRONAS

Bandar Seri Iskandar
31750 Tronoh
Perak Darul Ridzuan
CERTIFICATION OF APPROVAL
THE STUDY OF THE EFFECTIVENESS OF RESOURCE PLANNING IN OIL AND GAS INDUSTRY
By
Mohammad Nazhri Bin Mohammad Hashim
15422
A project dissertation submitted to the

Civil Engineering Programme
Universiti Teknologi PETRONAS
in partial fulfilment of the requirement for the
BACHELOR OF ENGINEERING (Hons)
(CIVIL ENGINEERING)
Approved by,
________________________
(Supervisor: Ir. Idris Othman)
UNIVERSITI TEKNOLOGI PETRONAS

TRONOH, PERAK
DECEMBER 2014
CERTIFICATION OF ORIGINALITY
This is to certify that I am responsible for the work submitted in this project, that the original work is my own except as
specified in the references and acknowledgements, and that the original work contained herein have not been undertaken or
done by unspecified sources or persons.
_______________________
(Mohammad Nazhri Bin Mohammad Hashim, ID: 15422)
ABSTRACT
Enterprise Resource Planning (ERP) is currently being addressed as a foundation for the integration of organization-wide
information systems. ERP systems tie together entire organizations operations such as accounting, finance, human
resources, manufacturing and distribution, etc. Furthermore, they also connect the organization to its customers and
suppliers through the different stages of the product or the process life cycle. There are very few studies led to the
implementation of ERP systems in the oil and gas industry, particularly for the major player in the industry.
The focus so far has been on client organizations, engineering and design firms. The objective of this paper is to investigate
the suitability and the implementation status of ERP systems in oil and gas field work. The methodology engaged is a mix
of literature review, market studies and detailed questionnaire survey, where it also includes a survey questionnaire which
takes all the factors in to count and before starting actual survey a pilot study for this questionnaire was done, which
confirms its acceptance. Based on previous study done by some few researchers, it is found that the majority of either the
client, Service Company or the contractor firms have awareness about the ERP systems but very few organizations have so
far implemented such systems. The major reason is that the implementation of any ERP system needs a huge investment in
time, money and resources. Nonetheless, when implemented to solve the right problems, these ERP systems can be a
powerful tool for business improvement. The study shed light on the barriers to the implementation of ERP systems in the
oil and gas industry and also highlights valuable lessons learned and benefits gained by companies that have such systems
in place.
TABLE OF CONTENT
CERTIFICATION OF APPROVAL..
CERTIFICATION OF ORIGINALITY.
II
ABSTRACT
III
TABLE OF CONTENTS
IV
LIST OF TABLES..
VII
LIST OF FIGURES.
VIII
CHAPTER I: INTRODUCTION...
1.1.
Introduction to Enterprise Resource Planning.......

3
1.2.
Background.
1.3.
Problem statement..
1.4.
Objectives.............................
1.5.
Scope of study.
CHAPTER II: LITERATURE REVIEW AND/OR THEORY
2.1
Resource Planning in Oil and Gas Industry..
2.2
Benefits of implementing the ERP systems..
2.3
Disadvantages.
CHAPTER III: METHODOLOGY/PROJECT WORK........
13
3.1
Work Base...........................
13
3.2
Data Evaluation..............................
15
3.3
Questionnaire..
16
3.3.1
Draft
16
3.3.2
Proper form of Questionnaire
17
3.4
Data Collection.........................
18
3.4.1
Primary Data...
18
3.4.2
Secondary Data..
19
3.5
Data Analysis Method.
20
3.5.1
Percentage Method (Statistical Analysis)..................
20
3.5.2
Average Index.
21
3.5.3
SPSS (Correlation test, Cronbach test & Validity test)..
22
3.5.2.1 Correlation Test...
22
3.5.2.2 Cronbach Test (Reliability Test).
23
3.5.2.3 Validity Test
24
3.6
Project Timeline..
25
CHAPTER IV: RESULT AND DISCUSSION..
27
4.1
Introduction.....
27
4.2
Respondents Description...
28
4.3
Respond Towards The Purpose Of This Project.
28
4.3.1. Research Question 1: The benefits sought from implementing ERP in Oil
and Gas organization
4
29
4.3.2. Research Question 2: The extent on which the critical factors present during
the ERP implementation.
32
4.3.3. Research Question 3: The perceptions of project managers and team

members as to the benefits and concerns of implementing ERP in Oil and
39
Gas organization...
4.3.4. Research Question 4: The extent in which selected decision-making
processes were used in the organizations decision to implement ERP.
45
4.3.5. Advice/comments on the current system from industrialist
47
4.4
48
Work flow of suggestion to conduct ERP system.............................
CHAPTER V: CONCLUSION AND RECOMMENDATION..
50
5.1
Introduction.
50
5.1
The Problem Statement...
51
5.3
Conclusion..
51
5.4
Recommendation
52
REFERENCES
.
53
APPENDICES A: Draft Questionnaire (FYP I).
55
APPENDICES B: Questionnaire Form (FYP II)
59
APPENDICES C: Correlation Calculation..
66
APPENDICES D: Cronbachs Alpha (Reliability) Calculation
70
APPENDICES E: Validity Calculation...
74
TABLES
TABLE 1:
FACTORS OF THE ERP EFFECTIIVENESS
TABLE 2:
CRONBACHS ALPHA CONSISTENCY
TABLE 3:
GANTT CHART FOR FYP I AND FYP II
TABLE 4:
KEY MILESTONE FOR FYP I AND FYP II
TABLE 5:
RESPONDS ON THE BENEFITS SOUGHT FROM THE

IMPLEMENTATION OF ERP SYSTEM IN THE
ORGANISATION (N=13)
5
TABLE 6: AVERAGE INDEX FOR RESEARCH QUESTION 1

TABLE 7:
CORRELATION RESULT FOR RESEARCH QUESTION 1
TABLE 8:
RELIABILITY AND VALIDITY RESULT FOR RESEARCH

QUESTION 1
TABLE 9:
CRITICAL FACTORS OCCURS DURING THE

IMPLEMENTATION
TABLE 10: AVERAGE INDEX FOR CRITICAL FACTOR

TABLE 11: CORRELATION RESULT ON RESEARCH QUESTION 2
TABLE 12: RELIABILITY AND VALIDITY RESULT FOR RESEARCH
QUESTION 2
TABLE 13: CONCERNS OF IMPLEMENTING ERP IN OIL AND GAS
ORGANIZATION
TABLE 14: AVERAGE INDEX FOR CONCERNS
TABLE 15: CORRELATION RESULT ON RESEARCH QUESTION 3
TABLE 16: RELIABILITY AND VALIDITY RESULT FOR RESEARCH
QUESTION 3
TABLE 17: RESPONSE TOWARDS THE DECISION MAKING PROCESS
TABLE 18: IMPLEMENTATION OF SYSTEM
FIGURES
FIGURE 1:
FLOW OF WORK BASE
FIGURE 2:
PROCESS OF DATA EVALUATION
FIGURE 3:
SPEARMANS COEFFICIENT
FIGURE 4: CRONBACHS ALPHA COEFFICIENT

FIGURE 5: VALIDITY COEFFICIENT
FIGURE 6:
ERP IMPLEMENTATION METHOD MODULE /OR SOP
CHAPTER 1
INTRODUCTION
Introduction To Enterprise Resource Planning

In order to stay competitive in a dramatically changing business environment,
organisations have to enhance their business practices and operational procedures
through information technology such as enterprise resource planning (ERP) (e.g.
Al-Mashari, 2003; Rao, 2000; Somers and Nelson, 2004; Tsai et al., 2007b), ecommerce (e.g. Aciar et al., 2007; Ahmed et al., 2007; Chuang et al., 2007), efinance (e.g. Tsai et al., 2006), Knowledge management (e.g. King, 2007), business
process reengineering (e.g. Lee et al., 2007), etc. Leem and Kim (2002) point out
that information technology is an important weapon in the fight to improve and
keep an enterprises competitive edge in an ever-changing business environment.
According to Gupta (2000), he considers that the ERP system is an integrated
information technology that uses common databases and consistent cross-functional
information flow which enables organisations to integrate information from various
departments. Moreover, Hong and Kim (2002) found that these demands have
prompted more and more firms to shift their information technology strategies from
developing in-house information systems to purchase application software, like
ERP systems, to generate synergies and enchase operating efficiency. Wallace and
Kremzar (2001) also mentioned that operating a business in a rapidly changing and
highly competitive environment is the primary purpose of implementing an ERP
system. Although implementing an ERP system may be costly and time-consuming,
its benefits are worthwhile. Therefore, ERP systems can be considered as critical
tools that can enhance business operations.
Quoted fromAsk.com, 2014,

There are different definition on Resource Planning actually, but basically it is
derives as a Resource plan, or also mentioned as Enterprise Resource Planning,
is a detailed summary of all types of resources required to complete a specific
task. It can be easily defined as summary of the level of resources needed to
complete a project. It specifies the exact quantities of labour, equipment and
materials needed to complete a project. [1]
Some of the reason why Resource planning is important or essential was due to
the following facts:
1
It will lead to conservation of extinguishable resources.
It will lead to equal and judicious use of any resource big or small.
It will lead to a country which is resource sufficient itself
It will also lead to the betterment of the stakeholders of these resources too.
Background
Origin of "Enterprise Resource Planning",
In 1990, Gartner Group first used the acronym ERP as an addition of material
requirements planning (MRP), later manufacturing resource planning and
computer-integrated manufacturing. Without substituting these terms, ERP came
to symbolize a larger whole that imitates the growth of application integration
beyond industrial.
Not all ERP packages advanced from a industrial core. Dealers variously began
with accounting, maintenance, and human resources. By the mid1990s ERP
systems addressed all core enterprise purposes. Governments and nonprofit
organizations also began to use ERP structures.
Developers now make more effort to assimilate mobile devices with the ERP
system. ERP dealers are lengthening ERP to these devices, along with other
business uses. Practical stakes of modern ERP concern integration hardware,
applications, networking, supply chains. ERP now covers more functions and
roles, including decision making, stakeholders' relationships, standardization,
transparency, globalization, etc.
Quoted from Wikipedia (2014),

An ERP system covers the following common functional areas. In many ERP
systems these are called and grouped together as ERP modules:
1
Financial accounting: General ledger, fixed asset, payables including

vouchering, matching and payment, receivables cash application and
collections, cash management, financial consolidation
Management accounting: Budgeting, costing, cost management, activity

based costing
Human resources: Recruiting, training, rostering, payroll, benefits, 401K,

diversity management, retirement, separation
Manufacturing: Engineering, bill of materials, work orders, scheduling,

capacity, workflow management, quality control, manufacturing process,
manufacturing projects, manufacturing flow, product life cycle management
Order Processing: Order to cash, order entry, credit checking, pricing,

available to promise, inventory, shipping, sales analysis and reporting,
sales commissioning.
Supply chain management: Supply chain planning, supplier scheduling,

product configurator, order to cash, purchasing, inventory, claim
processing, warehousing (receiving, putaway, picking and packing).
Project management: Project planning, resource planning, project costing,

work breakdown structure, billing, time and expense, performance units,
activity management
Customer relationship management: Sales and marketing, commissions,

service, customer contact, call center support - CRM systems are not
always considered part of ERP systems but rather Business Support
systems (BSS).
Data services : Various "selfservice" interfaces for customers, suppliers

and/or employees.
[17]
1.1. Problem statement

The problem statement for this study was to find the following:
1
What are the benefits from implementing ERP in Oil and Gas
organization?
The extent on which the critical factors present during the ERP
implementation.
What are the point of view of the project managers and team members
regarding the benefits and the concerns of dealing with ERP in Oil and
Gas organization?
What is the extent when selected decision-making procedures remained

used in the organizations decision to implement ERP?
1.2. Objectives
This study is mostly focus on three (3) purposes:
1
To accumulate the knowledge of doing resource planning in order to

achieve the most effective of Resources Planning in Oil and Gas
organization
To derive steps and foreseen the weaknesses or disadvantages in doing
resources planning
To provide a proof using analytical skill in determining the effectiveness of
doing resource planning in Oil and Gas organization.
1.3. Scope of study

The scope of study for this research project is to observe the
phenomenon of ERP system among the organization in the Oil and Gas industry.
Most research on the ERP system was done for the local company or the
onshore type of company, usually the construction company. In hoping that this
research study can be the pioneer of the ERP study in oil and gas industry. As
for this moment, to authors knowledge there has not been a study on the ERP
system on the company that using the ERP system. As a result, no critical
literature review is done for this project, although author did study others
researchers paper works on the local company that is not based on the oil and
gas field. To compare and use their work for this project is not a fair comparison
as their field of work is different and the scope of work is not the same.
Decisions were made that this project will be the stepping stone for future
researcher to continue the study on the ERP system for the oil and gas
organization.
To authors opinion, in this study, the involvement of the people who
work in the organization is most important to achieve the target if they were to
use the ERP system, which is why author decide to involved or to approach
some of the staff in the organization chose by author for the questionnaire and
interview session. The targets were the project manager, top management, team
members of the project that they working on and contractors who work with the
service provider or the operator type of organization.
Some of the scopes were to measure the acknowledgment of the staff
member in the organization toward the ERP system, along with the benefits that
comes with it and critical factors that affect either the organization or the staff
themselves.
CHAPTER 2
LITERATURE REVIEW AND/OR THEORY
Resource Planning in Oil and Gas Industry

The resources selected for review consisted of books, journal articles, white
papers, dissertations, and dissertation abstracts. In the information technology
community, a white paper is an informational document offering an overview of
a technology, product or issue, including its importance and business benefits.
The reason behind this study is to have some research on what is the positive
impact of implementing effective resource planning towards the management
system, and to see if this theory might increase organizations ROI (Return of
Investment) and revenue for that year.
According to Jacobs and Weston Jr. (2007), a key to ERP is the way in which
users can tailor the application so it is intrinsically easy to use. ERP systems can
reduce cycle time, accelerate information distribution, improve financial
management, lay the groundwork for e-commerce and make tacit knowledge
explicit provided they are properly implemented in a business organisation
(Davenport, 2000). In addition, ERP systems are capable of reshaping business
structures thanks to their ability to solve the challenges created by portfolios of
supposedly disconnected and uncoordinated business applications (Davenport,
1998). Moreover, ERP integrates application programmes for a range of
business functions including sales, accounting and manufacturing using a
common database that serves as the integrating mechanism (Olhager and
Selldin, 2003). Thus, ERP incorporates logistic, capital and information via an
information technology system so that management teams can obtain first-hand
information about a business operations. Furthermore, ERP can provide
suggestions for management teams making decisions and assist them in figuring
out an optimal solution. However, ERP system implementation can be both
expensive and time-consuming (e.g. Abdinnour-Helm et al., 2003; Kumar et al.,
2003). Therefore, choosing a suitable ERP package necessitates considering the
degree to which the configured ERP system matches with users working style
and practice and the extent of congruence between what is provided by the ERP
system and user task requirements. Further, if the right ERP solution is selected,
it can be an excellent decision support tool that will be a gruelling process for
companies and provide a competitive advantage. (Citation: Tsai, Lee, Chen and
Wei Hsu, 2009)
ERP systems could be used in the oil and gas industry for the following general
purposes:
1
2
3
4
5
2
To improve responsibilities in relation to customers

To strength supply chain partnerships
To enhance organizational flexibility
To improve decision-making capabilities
To reduce project completion time and cost
Benefits of implementing the ERP systems

The following benefits could be gained by implementing the ERP systems:
1
2
3
4
5
Provide an integrating working environment.

Enable automation
Availability of information from field level until the management level
Integration in applications in any departments
Flexibility and facility to standardizing process or to accommodate
changes and globalization.

Achieve balanced people, process and technology changes across all
areas.
Apply planning and program management practices throughout the
program life cycle of a project.
Disadvantages
Disadvantages of implementing the ERP systems based on previous research
and study done by researcher around the globe:
8
High implementation cost. It can range from some hundred thousand dollars
in small companies to a billion dollar for large multinational companies
(these numbers including training and consulting).

Delay on return on investment. The benefits of ERP may not be shown until
after companies have had it running for some time (Calogero, 2000).
TABLE 1:
FACTORS OF THE ERP EFFECTIVENESS
FACTOR
Review on Enterprise Resource
Planning
Implementation
Roadmap: Project Management
Perspective
RESEARCHER
KEY STATEMENT
Gholamzadeh Chofreh
F. A. Goni
M. Shaharoun
S. Ismail
Motivations
for
enterprise
resource planning (ERP) system
implementation in public versus
private sector organizations
JOYCELYN L. HARRISON
(2004)
10
The practitioners need to be

led by a coherent roadmap for
the implementation of ERP
systems.
An investigation of the
literature review discloses
that current ERP roadmaps do
not relate a inclusive project
management, which contains
of process group and the nine
knowledge areas, as a
practice to implement a
complex project.
Factors regarding benefits
sought through ERP system
implementation and critical
factors
surrounding
successful
ERP
implementation
were
identified
The perception of project
team members satisfaction
with modules implemented
and their concerns about
GAP
Does not resembles of

personal view from the
project managements point
of view /or their perceptions
What are the decision making
process
during
the
implementation
What is the comparison

between these 2 sector
Why
the
differentiation
between these 2 sector exist
implementing ERP software
FACTOR
Enterprise resource planning:
Implementation procedures
and critical success factors
RESEARCHER
KEY STATEMENT
Elisabeth J. Umble
Ronald R. Haft
M. Michael Umble
Efficient implementation of an
enterprise resource planning
system in a large company
Kevin Rudy (2010)

Alex Afshar (2010)
Jayant Ghosh (2010)
Enterprise resource planning

(ERP) systems: a research agenda
Majed AlMashari (2002)
11
Many ERP implementations

have been classified as
failures because they did not
achieve
predetermined
corporate goals
Identifies success factors,
software selection steps, and
implementation procedures
critical to a successful
implementation.
The reality of streamlined
post
implementation
operations
within
large
companies is often not
achieved.
ERP success or failure in
large
companies
is
determined
during
implementation.
Proposing a novel taxonomy
for ERP research
Presents the current status
GAP
What are the concern for the

system to be implemented
In which factor did the
critical success takes place
the most
Does not show the work flow

of how the steps being taken
What is the analytical
analysis to prove success of
the work done
How effective is the system

towards the organization
beneficiaries
with some major themes of

ERP research relating to ERP
adoption, technical aspects of
ERP and ERP in IS curricula
FACTOR
Enterprise Resource Planning
(ERP): a review of the literature
RESEARCHER
KEY STATEMENT
Young Moon (2007)
12
To serve three goals.

First, it will be useful to
researchers
who
are
interested in understanding
what kinds of questions
have been addressed in the
area of ERP.
Second, the article will be
a useful resource for
searching for research
topics.
Third, it will serve as a
comprehensive
bibliography of the articles
published
during
the
period.
GAP
How many organization have

successfully implement and
gain the benefits from the
system throughout the year
from Jan 2000 till May 2006
What is their response
towards the changing of
system in the organization
itself, especially the team
member, top management,
and managers
IMPACT OF ERP SYSTEMS ON

SMALL AND MID SIZED
PUBLIC
SECTOR
ENTERPRISES
Ashim Raj Singla (2008)
13
It has been observed that ERP

systems prove to be a failure
either in the design or its
implementation
Success or failure of ERP
system can be estimated on
the basis of impact of ERP on
that organization
How much training provided

to the member of the
organization
during
the
implementation
Has
the
implementation
receive support from the top
management and what are the
perceptions
towards
the
implementation
CHAPTER 3
METHODOLOGY/PROJECT WORK
1
Work Base
In this chapter, the methodology and procedures used to conduct this study are
described. The collection and analysis of survey data will serve to capture pertinent
information as provided by ERP implementation project managers and team
members in Oil and Gas organizations especially in Malaysia.
The following research questions will serve to guide this study.
1
What were the benefits sought in the implementation of ERP system in Oil
2
3
and Gas company?

To what extent were critical factors present during the ERP implementation?
To what extent were the respondents satisfied with performance of the
implemented ERP modules? How did satisfaction differ between to have the
Resource Planning in their management and not to have it?

What are the concerns regarding the ERP implementation as perceived by the
implementation team members?

To what extent were selected decision-making processes used in the
organizations decision to implement ERP?

Which modules did the organization intend to implement versus those
actually implemented and why?
Data was collected via a survey designed by the author. Additional questions were
added based on the review of literature on ERP system implementation. As the
instrument was developed, it was periodically reviewed by ERP professionals and
modified based on their suggestions. Suggestions on the content, clarity, and
appearance of the instrument were made based on feedback from these
professionals. The four-section instrument was composed of four parts which
included: expected results and benefits, implementation critical factors for success,
modules implemented, and implementation concerns.
14
Conclude the
objective
Literature review
Selected company
base on their
successful
implementation on
ERP
Determined selected
title
Identify the major

problem faced in
ERP
FIGURE 1:
FLOW OF WORK BASE
15
Conclude the
solution/ propose
problem solution
Data Evaluation
There are several activities comprising six (6) main activities in performing
this project, they are as follow:
1
2
3
4
Research on the background of the ERP system and history: analyse
previous related journals

Cultivate few questionnaires survey purpose
Gather the data (primary and secondary data)
Record the data acquired from the participants
5 Compute, give suggestion and prepare project report towards the analysed
data.
Writing thesis on the findings for Final Year Project (FYP) final report.
Propose
problem
statement
Objective
achieved,
no.
Refer to
objective
Objective
achieve,
yes!
Prepare some
questionnaire
that would
answer the
problem
statement
Case study
Final
Report
Collection of
questionnaire
distribute to
some of
selected O&G
company
Analysis
data
Preliminary
result &
discussion
FIGURE 2:
Thesis on
ERP
PROCESS OF DATA EVALUATION
16
Questionnaire
3.3.1 Draft
Today ERP (Enterprise Resource Planning) is accepted by big
organization such as the Oil and Gas Company but many medium level
Institutes are enable to decide upon proper implementation of ERP.
ERP system, which evolved them from Manufacturing Resource
Planning have many advantages, but some failures stories also. This
paper reviews the factors effecting the ERP implementation in oil and
gas industries. It also includes a survey questionnaire which takes all
the factors in to count and before starting actual survey a pilot study for
this questionnaire was done, which confirms its acceptance.
1
Factor Categories
This questionnaire considers all the factors effecting implementing
ERP in engineering institutes and most probably all these factors
are taken according to their suitable priority. It includes major
factors and all these factors are taken as questions which can be
answered in five different ways (Strongly Disagree, Disagree,
Neutral, Agree, strongly Agree) according to which ERP
implementation can be measured.
Classifiers
According to the factors in the Questionnaire the respondents can
be classified in those who work with the project management team
or related to the management services.
Category Factor Variables

a
Manpower
Q2. Some period of training must be provided
Q4. Employees and employer should have a good understanding
of ERP system
17
Q15. Need active participation of employees and employer

b
Expenses, Infrastructure & Work culture

Q3. Current system is satisfy enough
Q5. Organization restructure should be required
Q14. Organization has to analyse their Non-value added
activities
Objectives and Goals

Q6. ERP system increase the efficiency of work processes
Q8. Will enhance the transparency in the system
Q9. Result in easy availability of information
Q10. Will decrease work load and Manpower requirement
Q11. The top authority must understood how the data is flowing
between various departments
Q13. Better resource utilization
Q16. Will reduce paper work
3.3.2 Proper form of Questionnaire

In performing this study, the tools needed to acquire data are
questionnaire form, online survey form and interview questions based
on results. The tools or questionnaire for this project can be refer to the
Appendix B.
Data Collection
18
The Data used for this study is classified into main and sub data. Though the
main data is acquired by questionnaires and online survey, sub data is collected
from resources such as journals from websites and books, previous paperwork
and thesis done by those who did resource planning research in other type of
the industry, in order to get the glimpse of how resource planning effect those
organization.
1
Primary Data
Attained from existing literatures as a module for this topic, a list
of questionnaire was prepared and given to the respondents who
participate from the previous draft questionnaire survey during
FYP 1. There are three (3) sections in the questionnaire, as follow:
1
2
Section A consists of details of the respondent.

Section B multiple choice questions focus on effect and
reasons why the implementation of enterprise resource
planning is essential for the respondents company to sustain
their growth. Judgement was made by the respective
respondent whether it is applicable for their organization to
maintain the current system or improvisation need to be
made to ensure their system running effectively.

Section C open-essay (interview) questions to get the
respondents
opinion
regarding
the
existing
practice
implemented at the company.
Secondary Data
Some of journals, paperwork and thesis related to this study are
looked up as reference. Those materials are largely obtained from
UTPs Information Resource Centre (IRC), library and e-Resources.
19
In addition to that, previous research done by some of the students

from India, United Stated of America and even from Taiwan, are
obtained and to be used as reference in order to get deeper
knowledge regarding the functions and how it help the organization
to improve their management system on the resource. Although the
field of study for their research is different, which related to civil
engineering organization and some were to be in term of economic
based study, but the method and purpose is comparable which is to
develop the new idea of how significant the resource planning
towards the sustainability of the organization if they want to stay in
the line.
5 Data Analysis Method

Percentage Method (Statistical Analysis)
Percentage (P) = ( / )100 %
The formula for Percentage:
Where,
is number of respond from participants

is total number of respondent who author manage to
obtained their feedback
20
All this data will be analyse in the manner of percentage (%) and
average index form of analysis. Some correlation test, validity test and
Cronbach alpha (reliability) test will be conduct to ensure the authors
credibility when computing and concluding the data. The explanation
will be given in clause 3.5.2 SPSS (Reliability test, Cronbach test and
Validity test) and the data will be presented in Chapter 4: Result and
Discussion.
As for research question 4, the data provided is only to show on what
type of response towards the decision making process in term of
percentage (%) form.
Average Index
For author to conclude the expectation and the knowledge of team
member, manager or person who involve in certain project, some
qualitative data will be gathered to determine the value of index.
Obtained from data sample that was distributed, an average index were
compute using formula below. Some adjustment was made on how the
weightage were concluded for author to elaborate in term of average
index form:
1 Never; 2 Rarely; 3 Sometimes; 4 Often; 5 Very Often.
The Average Index Formula:
21
Average Index (AI) = ( x n)/ N
Where,
is weighing given to each risk factor by respondents
is the frequency of the respondents
is the total number of respondents
With the rating scale (Majid & McCaffer, 1997), as shown below,
Research question 1 will be using from 1 (Not Expected and Not
Realized); 3 (Expected but Not Realized, Not Expected but Realized); 5
(Expected and Realized). As for Research question 2 and 3 will be
using from 1(No); 3 (Somewhat) and 5 (Yes). :
1 = Never/Strongly disagree (1.00 < Average Index < 1.50)

2 = Rarely/disagree (1.50 < Average Index < 2.50)
3 = Sometimes/Neutral (2.50 < Average Index < 3.50)
4 = Often/agree (3.50 < Average Index < 4.50)
5 = Very often/strongly agree (4.50 < Average Index < 5.00)
SPSS (Correlation test, Reliability test & Validity test)

Created by one of the top analysis software today, IBM, the letters
SPSS means Statistical Package for the Social Sciences.
It is globally used for analysing statistical data especially for social
science. Other than that, SPSS software were also used by some of
the researcher in different field such as market researcher, health
researchers, survey companies, government, education researchers,
marketing organizations, data miners, and etc. In this study, author
decides to use only the correlation test method to determine the
correlation between 3 types of employee in the organization chose
by author, referring to the purpose of this study, correlation test
method is enough to serve the purpose of this study.
Correlation Test
22
It
is
technique
number/possibilities
to
measure
related.
In
how
a
closely
simple
the
meaning,
Spearmans rank correlation coefficient is a nonparametric

measurement between 2variables. Spearmans rank evaluate
how closely a relationship between the variables. A perfect
Spearman correlation of +1 or 1 occurs when each of the
variables is a perfect monotone function of the other If there
are no repeated data values. The coefficient of Spearmans is
suitable for discrete and continuous variables. The definition
of Spearman correlation is shown below.
2
=1
6 di
2
n(n 1)
FIGURE 3: Spearmans coefficient
Interpretation;
Close to -1 - Negative correlation.
Close to 0 - No linear correlation.
Close to 1 - Positive correlation.
2
Cronbach Test (Reliability Test)

In statistics, Cronbach's alpha (Reliability Test) is a
coefficient of internal consistency. It is commonly used as an
estimate of the reliability of a psychometric test for a sample
of examinees. A "high" value for alpha does not imply that
the measure is unidimensional. If, in addition to measuring
internal consistency, you wish to provide evidence that the
scale in question is unidimensional, additional analyses can
be performed. Exploratory factor analysis is one method of
checking dimensionality. Technically speaking, Cronbach's
alpha is not a statistical test - it is a coefficient of reliability
(or consistency).
23
N
+ ( N1 )
FIGURE 4: Cronbachs alpha coefficient
TABLE 2: Cronbachs alpha consistency

Cronbachs alpha
Internal consist
> 0.9
Excellent
0.7 < < 0.9
Good
0.6 < < 0.7
Acceptable
0.5 < < 0.6
Poor
< 0.5
Validity Test
Validity of an assessment is the degree to which it measures
what it is supposed to measure. This is not the same as
reliability, which is the extent to which a measurement gives
results that are consistent. Within validity, the measurement
does not always have to be similar, as it does in reliability.
When a measure is both valid and reliable, the results will
appear as in the image to the right. Though, just because a
measure is reliable, it is not necessarily valid (and viceversa). Validity is also dependent on the measurement
measuring what it was designed to measure and not
something else instead. Validity (similar to reliability) is
based on matters of degrees; validity is not an all or nothing
idea. There are many different types of validity.
24
Unacceptabl
S= Reliability
FIGURE 5: Validity Coefficient
Project Timeline
TABLE 3:
Gantt Chart for FYP I and FYP II

2014
No
1.
2.
3.
4.
5.
No
Activity (FYP I)
Title selection
Literature review
Extended proposal
Acquire knowledge
Proposal Defence
Activity (FYP II)
May
June
July
1 2 3 4 5 6 7 8 9 10
11
2
3
4
5
6
7
8
Project Work Continue

Submission of Progress
Report
Pre-SEDEX
Submission of Draft
Final Report
Submission of
Dissertation (soft
bound)
Submission of
Technical Paper
Viva
Submission of Project
Dissertation (Hard
Bound)
13
14
15
16
Sept
Oct
2014
Nov
2015
Jan
Dec
1 1
2 3
= Key Milestone
= Semester Start
12
1 2 3 4 5 6 7 8 9 10
1
August
25
TABLE 4:
No
1
2
3
4
5
6
7
8
9
10
11
12
13
Key Milestone for FYP I and FYP II
Activity
Topic selected
Literature review studies
Extended proposal submission
Proposal defence presentation
Draft of final report submission
final report submission
Questionnaire distribution and
FYP
literature review on the topic

Result analysis done
Progress report done
Draft of final report submission
Submission of Dissertation (soft
bound)
Submission of Technical Paper
Submission of Project Dissertation
(Hard Bound)
CHAPTER 4
26
Date (Week)
3 June 2014 (Week 1)
9 June 2014 (Week 12)
27 June 2014 (Week 6)
25 July 2014 (Week 9)
18 August 2014 (Week 13)
25 August 2014 (Week 14)
21 September 2014 (Week 1)
2 November 2014 (Week 7)

6 November 2014 (Week 7)
10 December 2014 (Week 11)
9 January 2015 (Week 15)
RESULT AND DISCUSSION
Introduction
In this chapter 4, data that has been gathered and analyse will be discuss.
This chapter will be divided into seven major sections in order to answer
the purpose of this study which is: Introduction, Research Question 1,
Research Question 2, Research Question 3, Research Question 4, Research
Question 5, and Summary.
The problem statement for this study was to find the following:
What are the benefits from implementing ERP in Oil and Gas
organization?
implementation.
What are the point of view of the project managers and team
members regarding the benefits and the concerns of dealing with
ERP in Oil and Gas organization?
What is the extent when selected decision-making procedures

remained used in the organizations decision to implement ERP?
Respondents Description
27
The respond for the survey data were collected throughout September to
October 2014. A total of 20 questionnaires form was given through
various sector of the oil and gas industry within the management
department and some were the technical department. Throughout the
period of giving and collecting back the form, only 13 feedbacks were able
to be collected and not all the forms or questionnaire were answered
completely.
These surveys were done with the collaboration of the staffs either known
by author direct and indirectly through helps from friends. These
respondents whom work and volunteer for answering the questionnaire, is
currently working with some of the top listed company in the oil and gas
industry. Such as Shell, Topgen Resources Sdn Bhd; a company own by
local personality in Tronoh, Perak, who dealt with the downstream
operation of the industry, Petrofac, Shclumberger, Petronas and
Halliburton. All of these participants details will not be provided for
public viewing as stated in the terms and condition of the survey form
before they agreed to participate in answering the questionnaire.
The respondents were group into 3 which is Manager (M), Top Manager
(TopM) and Team Member (TM). These 3 types of respondent will be
taken for their statistical data in order for author to generate the datas in
clause 4.3.
Research question 1 will be categorize in sequence from 1 (Not Expected
and Not Realized); 3 (Expected but Not Realized, Not Expected but
Realized); 5 (Expected and Realized). As for Research question 2 and 3
will be using from 1(No); 3 (Somewhat) and 5 (Yes). As for research
question 4, the data provided is only to show on what type of response
towards the decision making process in term of percentage (%) form.
Respond Towards The Purpose Of This Project
28
4.3.1.
Research Question 1: The benefits sought from
implementing ERP in Oil and Gas organization.

For author to answer research question 1, it is necessary for the
respondent to involve in answering questionnaire in appendix B,
section B, Part 1: Expected Results and Benefits in order to
determine whether they realize the benefits mentioned. Involve
personal are required to indicate they expected and realized,
expected but not realize, not expected but realized or not expected
and not realize in the question given. The analysed results were
shown in Table 3 in the Responds on the benefits sought from the
implementation of ERP system in the organisation.
TABLE 5: Responds on the benefits sought from the implementation of ERP
system in the organisation (N=13)
Expected
Not Expected
Expected but Not Expected
and
and Not
Not Realized but Realized
Benefits
Realized
Realized
n
%
n
%
n
%
n
%
Redesigned business
7
53.8
2
15.4
1
7.7
3
23.1
processes.
Eliminated redundant tasks.
9
69.2
1
7.7
2
15.4
1
7.7
Realized a return on
8
61.5
2
15.4
0
0
3
23.1
investment.
Software that is easily
adaptable to business
5
38.5
4
30.7
1
7.7
0
0
changes.
Improved customer
relationship or supply chain
9
69.2
2
15.4
1
7.7
0
0
management
Overall reduced operational
12
92.3
1
7.7
0
0
0
0
costs.
The ability to produce better
reports with the information
8
61.5
2
15.4
3
23.1
0
0
need.
Increased standardization of
7
53.8
3
23.1
2
15.4
1
7.7
processes.
Improved internal
5
38.5
2
15.4
2
15.4
3
23.1
communication.
As from Table 3, it indicates that overall reduced operational costs
(12, 92.3%) had the highest number of positive response from the
29
participant along with eliminated redundant task and improved

customer relationship or supply chain management (9, 69.2%) for
the Expected and Realize result. The responds for the benefit of
software that is easily adaptable to business changes (4, 30.7%)
gets the highest responds for the Expected but Not Realize result.
With addition to the survey, 23.1% (3) response that the ERP
implementation did not have the ability to generate a better reports
with the information they acquire while 23.1% (3) respondent
believe
that
ERP
system
not
only
improved
internal
communication, but also does not help to redesigned business

processes as well as make them realize the return in investment.
The average index for the Table 3 is shown below. The benefits is
rank from 1 9 to have the idea on which give the best value of the
system towards the company interest. As per table 5, the most
benefits gained from the ERP system is the reductions of operation
cost, and the rest as follow.
TABLE 6: Average index for Research Question 1

Rank of
Benefits
Benefits
Average index
Overall reduced operational costs.
4.846
The ability to produce better reports

with the information I need.
4.231
4.231
Improved customer relationship or

supply chain management
4.154
Increased standardization of
processes.
3.923
Realized a return on investment.
3.769
Redesigned business processes.
3.615
Software that is easily adaptable to

business changes.
3.077
30
Improved internal communication.
3.077
As for the Spearmans test, the result is shown below. From the
correlation test for Research Question 1, it is notify that Top
Management and Management is more correlated rather than
relation between Manager and Team Member, or Team Member
and Top Management. The calculation method used Microsoft
Excel to ease authors research. Refer to Appendices C: Correlation
test for Research Question 1.
TABLE 7: Correlation result for Research Question 1
Correlati
on
M & TM
TM & TopM
TopM & M
-0.30786
0.2973706
5
0.8680528
TABLE 8: Reliability and Validity result for Research Question

1
Reliability Test
0.28799
Validity Test
0.53332
31
4.3.2.
Research Question 2: The extent on which the critical
factors present during the ERP implementation.
In research question 2, respondent were asked to give their opinion

in term of Yes, Somewhat, or No answer. Provided in the table 4
below, the analysis of total respondent were done in percentage (%)
and number.
TABLE 9: Critical factors occurs during the implementation
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Yes
3 (23.1%)
Somewhat
5 (38.5%)
There was effective end-user training.

The project manager was influential with
5 (38.5%)
2 (15.4%)
upper management.
There was a clearly defined scope for the
6 (46.2%)
3 (23.1%)
implementation project.
The implementation project manager was
5 (38.5%)
3 (23.1%)
skilful in project management.
The project had the support of business
6 (46.2%)
5 (38.5%)
unit managers.
End-users were involved during the
3 (23.1%)
5 (38.5%)
implementation.
Our
organization
mapped
and
reengineered our business processes to 5 (38.5%)
3 (23.1%)
match the ERP processes.
The ERP software was modified to meet
5 (38.5%)
4 (30.7%)
our needs.
The organization was prepared to manage
3 (23.1%)
6 (46.2%)
change.
The project team was knowledgeable
4 (30.7%)
7 (53.8%)
about ERP and business processes.
The implementation had top management
8 (61.5%)
3 (23.1%)
(executive level) support.
Top management was kept abreast of the
6 (46.2%)
4(30.7%)
project status.
The project had skilled consultants.
6 (46.2%)
4 (30.7%)
The ERP vendor was involved in our
3 (23.1%)
6 (46.2%)
project.
Note. Not all respondents completed every survey item.
32
No
4 (30.7%)
3 (23.1%)
4 (30.7%)
2 (15.4%)
3 (23.1%)
3 (23.1%)
4 (30.7%)
2 (15.4%)
2 (15.4%)
2 (15.4%)
2 (15.4%)
3 (23.1%)
3 (23.1%)
4 (30.7%)
By comparing both critical factor of table above for the Yes and No
section, it is founded that the highest response of Yes from these
respondent were top management was kept abreast of project
status (6, 46.2%), The project had skilled consultants (6,
46.2%), The project had the support of business unit managers
(6, 46.2%), There was a clearly defined scope for the
implementation project (6, 46.2%) and the implementation had
top management (executive level) support (8, 61.5%). While for
the No section, There was effective end-user training (4, 30.7%),
Our organization mapped and reengineered our business processes
to match the ERP processes (4, 30.7%), and the ERP vendor was
involved in our project (4, 30.7%) received the highest qualitative
data.
Question 1 asked the critical factor for There was effective enduser training. 3 (23.1%)of the respondents indicated that there
was effective end user training at the end of the system and
somewhat of the respondent (5, 38.5%) were not sure while the rest
(4, 30.7%) disagree.
Question 2 asked the critical factor for The project manager was
influential with upper management. 5 (38.5%) of the respondents
indicated that their project manager has some influential with the
top management. Only 2 (15.4%) are somewhat unsure and the rest
(3 23.1%) says no to it.
Question 3 asked the critical factor for There was a clearly
defined scope for the implementation project. 6 (46.2%) of the
respondents indicated that the scope was clearly define and among
the respondent, somewhat 3 (23.1%) respondent unsure whether it
define the scope clearly while 4 (30.7%) were not agreed.
33
Question 4 asked the critical factor for The implementation

project manager was skilful in project management. 5 (38.5%) of
the respondents indicated that they agreed that their project
manager a skilful in project management, and some respondent
was at least somewhat not very sure whether their project manager
have what it takes. While 2 (15.4%) respondent indicate their
project manager were not skilful.
Question 5 asked the critical factor for The project had the
support of business unit managers Majority (6, 46.2%) of the
respondents indicated that their organization was supported by the
business unit manager. Among the respondent, only 23.1% (3) did
not have their business unit managers supports.
Question 6 asked the critical factor for End-users were involved
during the implementation. 23.1% (3) of the respondents indicated
that their organization involve the end user when implementing the
ERP system. While other 3 (23.1%) respondent says that their
organization did not use end user.
5 (38.5%) respondent are
somewhat either use or did not use end user.

Question 7 asked the critical factor for Our organization mapped
and reengineered our business processes to match the ERP
processes. 5 (38.5%) of the respondents indicated that they
mapped and reengineered their business processes to match the
ERP processes. 3 (23.1%) indicates that it is somewhat to be
consider match. While only 4 respondents (30.8%) admit that it did
not match the ERP process.
34
Question 8 asked the critical factor for The ERP software was
modified to meet our needs The majority of the respondents
indicated that the ERP software was modified to meet their needs
(5, 38.5%), although 15.4% (2) indicated that they were using the
existed ERP software as it is.
Question 9 asked the critical factor for The organization was
prepared to manage change A number of 3 (23.1%) respondents
indicated that they are prepared for the changes, and somewhat is
either prepare or not sure of themselves (6, 30.8%). The rest of the
respondent (2, 15.4%) says that they were not ready for the change.
Question 10 asked the critical factor for The project team was
knowledgeable about ERP and business processes .Majority of the
respondent are somewhat (7, 53.8%) agreed that their project team
was knowledgeable about ERP and business processes. Among the
respondent, 15.4% (2) indicated that their project team does not
have the knowledge about ERP and business processes.
Question 11 asked the critical factor for The implementation had
top management (executive level) support At least 8 (61.5%) of
the respondents indicated that the implemented ERP system had
top management support. Among the respondent only 2 (15.4%)
respondent admit the system does not have the support from the
top management and somewhat (3, 23.1%) were unsure either the
system had the support.
35
Question 12 asked the critical factor for Top management was

kept abreast of the project status 6 (38.5%) of the respondents
indicated that their top management was kept abreast of the project
status. At least only 23.1% (3) respondent indicates that their top
management were not given the update of the project status, while
other were somewhat prepared for the new system.
Question 13 asked the critical factor for The project had skilled
consultants. At least 6 (38.5%) of the respondents indicated that
the project that use ERP system had skilled consultants. Among the
respondent only 4 (30.8%) respondent admit the current project
does not have the skilled consultants and somewhat (3, 23.1%)
were unsure either they had.
Question 14 asked the critical factor for The ERP vendor was
involved in our project. 3 (23.1%) of the respondents indicated
that the ERP vendor was involved in their project. At least only
30.8% (4) respondent indicates that the ERP vendor was involved
in their project, while other were somewhat (6, 38.5%) not sure
either the vendor involve in their project.
36
The average index for the critical factor for Research Question 2 is
shown below. As per shown in table 8, the most critical factors
occurs during the implementation were the support from the top
management among other factor. It is agreed by most of the
respondent that their ERP system had high support by the higher
authority. The rest as per shown below.
TABLE 10: Average index for Critical factor
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Critical Factors
The implementation had top management
(executive level) support.
The project had the support of business
unit managers.
Top management was kept abreast of the
project status.
The ERP vendor was involved in our
project.
There was a clearly defined scope for the
The project team was knowledgeable
about ERP and business processes.
The ERP software was modified to meet
our needs.
Our organization mapped and
reengineered our business processes to
match the ERP processes.
The implementation project manager was
skilful in project management.
The organization was prepared to manage
change.
The project manager was influential with
upper management.
End-users were involved during the
implementation.
37
Average Index
3.923
3.692
3.462
3.462
3.462
3.308
3.308
3.00
2.923
2.769
2.692
2.615
2.615
2538
test for Research Question 2. In this result, it is clear that the
difference is quite big for the management (M) and Team Member
(TM); and Team Member (TM) and Top Management (Top
Management). The reason is because of the factors that the
respondents that involve were from different background, company
and not have similar field as some of them were operator, and some
were service.
TABLE 11: Correlation result on Research Question 2
Correlatio
n
M&
TM
0.01820
9
TM & TopM
-0.00105931
TopM &
M
0.5501687
6

Reliability Test
Validity Test
38
0.87595
0.9359
4.3.3.
Research Question 3: The perceptions of project
managers and team members as to the benefits and concerns of

implementing ERP in Oil and Gas organization.
Based on the questionnaire given to the respondents, the research
question can be answered and interpret using analysis result from
Table 5.
TABLE 13: Concerns of implementing ERP in Oil and Gas organization
Yes
Somewhat
No
Concerns
n
%
n
%
Was your organization technologically
1
6
46.2
5
38.5
prepared to implement?
Has ERP implementation necessitated
the requirement of a new skill set
2
10
76.9
3
23.1
among employees in terms of
computer proficiency?
Was your implementation timetable
3
7
53.8
2
15.4
reasonable?
Was your organization prepared for
4 the external/public's reaction to the
3
23.1
5
38.5
implementation?
Was the implementation project
5 adequately staffed to meet the project
3
23.1
4
30.8
deadlines?
Did you use some other measure of
6 success (other than return on
6
46.2
5
38.5
investment) for the implementation?
Would you consider the ERP
7 implementation in your organization
8
61.5
2
15.4
to be a success?
Was employee morale positively
8
3
23.1
5
38.5
changed by ERP implementation?
9
6
46.2
4
30.8
adequately funded?
Did you realize the expected return on
10
3
23.1
4
30.8
your ERP investment?
Do you have the same organization
11 leader (i.e., CEO) as when the ERP
4
30.8
3
23.1
software was implemented?
12 the internal/employees' reactions to the
4
30.8
2
15.4
implementation?
39
No
n
15.4
23.1
15.4
15.4
15.4
7.7
38.5
23.1
23.1
46.2
38.5
Question 1 asked Was your organization technologically prepared

to implement? 6 (46.2%) of the respondents indicated that their
implementation team was ready for the implementation and some
of the respondent (5, 38.5%) were not sure while the rest (2,
15.4%) were un prepared for the new system to be implement in
their organization.
Question 2 asked Has ERP implementation necessitated the
requirement of a new skill set among employees in terms of
computer proficiency? 10 (76.9%) of the respondents indicated
that their ERP implementation necessitated the requirement of a
new skill set among employees in terms of computer proficiency.
Only 3 (23.1%) are at somewhat when it comes to the requirement
of new skills.
Question
asked
Was
your
implementation
timetable
reasonable? 7 (53.8%) of the respondents indicated that their

implementation timetable was reasonable. Among the respondent,
3 (23.1%) were not agreed that the implementation were timetable
reasonable while 15.4% (2) were somewhat agreed/not agreed.
Question 4 asked Was your organization prepared for the
external/public's reaction to the implementation? 5 (38.5%) of the
respondents indicated that their organization was at least somewhat
prepared for the external/public's reaction to the implementation.
Among them were at least prepare (3, 23.1%) for the publics
reaction and others were not (2, 15.4%).
40
Question 5 asked Was the implementation project adequately

staffed to meet the project deadlines? 4 (30.8%) of the
respondents indicated that their organization was at least somewhat
technologically prepared for the implementation. Among the
respondent agreed that the implementation is adequately staffed to
meet the project deadline while other did not agreed (2, 15.4%)
Question 6 asked Did you use some other measure of success
(other than return on investment) for the implementation? 6
(46.2%) of the respondents indicated that their organization used
some other measure of success for their implementation. While 2
(15.4%) respondent says that their organization did not use other
method. 5 (38.5%) respondent are somewhat either use or did not
use other measurement for their return of investment.
Question 7 asked Would you consider the ERP implementation in
your organization to be a success? 8 (61.5%) of the respondents
indicated that they considered their implementation to be success. 2
(15.4%) indicates that it is somewhat to be consider success. Only
1 respondent (7.7%) admit that it did not work as expected.
Question 8 asked Was employee morale positively changed by
ERP implementation? The majority of the respondents indicated
that morale was not positively changed by ERP implementation (5,
38.5%), although 23.1% (3) indicated that morale was positively
changed by ERP implementation.
41
Question 9 asked Was the implementation adequately funded? 6

(46.2%) of the respondents indicated that their implementation was
adequately or somewhat adequately funded (4, 30.8%). The rest of
the respond says that the system was not adequately funded in their
current company.
Question 10 asked Did you realize the expected return on your
ERP investment? 3 (23.1%) of the respondents indicated that their
organization agreed that they realize about the return of investment
that they made on ERP while at least somewhat (4, 30.8%) realized
their expected return on their investment. Among the respondent,
23.1% (3) indicated that their organization did not realize the
expected return on the investment.
Question 11 asked Do you have the same organization leader
(i.e., CEO) as when the ERP software was implemented? At least
6 (46.2%) of the respondents indicated that their organization did
not has the same leader as when the ERP software was
implemented. Among the respondent only 4 (30.8%) respondent
has the similar leader when ERP was implemented and somewhat
(3, 23.1%) were un sure either the leader were the same or not.
Question 12 asked Was your organization prepared for the
internal/employees' reactions to the implementation? 5 (38.5%) of
the respondents indicated that their organization was not prepared
for the internal/employees reactions to the implementation. At
least only 4 respondent indicates that their internal/employees were
ready for the implementation, while other were somewhat prepared
for the new system.
42
The average index for Research Question 3 is shown in table

below. As per shown in table 11, the most concerns of
implementing ERP in Oil and Gas organization were requirement
of new sets skill among the employee. It is agreed by most of the
respondent that their ERP might require them to have new skills.
The rest as per shown below.
TABLE 14: Average index for Concerns
Rank
Concerns
Has ERP implementation necessitated
the requirement of a new skill set
1
among employees in terms of
Was your organization technologically
2
prepared to implement?
Did you use some other measure of
3
success (other than return on
investment) for the implementation?
Would you consider the ERP
4
implementation in your organization
to be a success?
5
adequately funded?
Was your implementation timetable
6
reasonable?
Was employee morale positively
7
changed by ERP implementation?
Do you have the same organization
8
leader (i.e., CEO) as when the ERP
software was implemented?
9
the external/public's reaction to the
implementation?
10
the internal/employees' reactions to
the implementation?
Did you realize the expected return on
11
your ERP investment?
12
adequately staffed to meet the project
deadlines?
43
Average Index
4.538
3.615
3.615
3.615
3.462
3.385
2.692
2.692
2.462
2.385
2.308
2.231
test for Research Question 3.
Correlatio
n
M&
TM
0.28103
3
TM &
TopM
0.236006
TopM &
M
0.4959334
9

Reliability Test
0.87065
Validity Test
0.9331
44
4.3.4.
Research Question 4: The extent in which selected
decision-making processes were used in the organizations

decision to implement ERP.
As for the fourth question the respondents who participated in this

survey were asked to give their best answer for were asked to
respond to Questions 2 and 3 in Section C, in Appendix B, related
to their decision to implement an ERP system. In Section C, the
question that were asked were, Regarding the decision to
implement the ERP system, which best describes the decision
making process. The analysed data is shown in table 6.
TABLE 17: Response towards the decision making process
Process
Number/Percent
Strategic Business Planning Process
10 (76.9%)
Formal Organizational Readiness

Process Model
7 (53.8%)
Business Case Analysis
8 (61.5%)
Other
3 (23.1%)
10 out of 13 respondents (76.9%) indicated that they used a
Strategic Business Planning Process in their decision to implement
their ERP System. 7 out of 13 respondents (53.8%) indicated that
they used a Formal Organizational Readiness Process Model in
their decision to implement their ERP System. Lastly, 61.5% (8) of
the respondents indicated that they used Business Case Analysis or
some other tool in their decision making process.
45
TABLE 18: Implementation of system

Implementation made by
Number of response (n/%)
IT Department
1 (7.7%)
Business Process Leaders/ Business

Unit Managers
3 (23.1%)
Top Management
8 (61.5%)
Outside Consultants?
1 (7.7%)

Based on the data in Table 6, the most response for that indicates
implementation of ERP were made by top management (8, 61.5%),
follow up by Business Process Leaders/Business Unit Managers (3,
23.1%). As for the others, IT Department 1 (7.7%) has shown that
they also responsible for the proposal of implementing the ERP
system into their organization along with Outside Consultant 1
(7.7%).
46
4.3.5.
Advice/Comments on the current system from
industrialist
At this section, author gathered all the respond either from verbally
(some interviews were done either through mobile or confronting
the respondent) and conclude in the result below. Some adjustment
of the words and the structure sentence were made from the origin
to associate with authors thesis but the meaning and the stress is
the same to maintain the validity and honesty of the interview
result. The results were separate accordingly to provide a better
view of what are the comments lean into.
MANAGEMENT
1
Equipped
team
member
with
business
reengineering
knowledge. Provided with strong support from management to

2
lead.
Propose a head plan. Ensure that the top management is
acknowledge on this matter and agree to provide extra budget
for this.
Ensure all contracts, agreements in documented. Ensure the
first change on the management to be made and complete it
first-hand before others. To avoid conflicts, all team members
must agree and work together for the configurations work.
COMMUNICATION
4
5
Do not undermine the organization.

Provide a strong scope of work and avoid unnecessary matter.
Give continues training for the users and the IT department for
longer term of support.
PROJECT MANAGEMENT
6
Do not provide only 1 consultancies and 1 technical member
as it would bring some bite back if anything happen.

Make up or prepare a determinant team member for the project
before it start.
47
As a project manager, the support of all top management is
required not only the General manager or stakeholders.

9 Provide early training for software implementation.
10 Make up a team or several and send them for training or
seminar for team building. Avoid any lingeration if there is no
chemistry between them
GENERAL
11 Prepare some knowledge beforehand.
12 Provide an early users involvement before the start of the
implementation. Provide also the organization interest in
details.
13 Provide at least 2 years of continues training, consultancies at
site.
14 Have some sharing knowledge and do not afraid of
approaching those who have succeeded in implement the
system. Send the team member for training for the long term
instead of depend on the consultancies expertise only.
15 Have long term test, continuously.
16 Provide some changes in the organizations way of doing
business before making up with the implementation
4
Work flow of suggestion to conduct ERP system

After details observation and analyse the responds from participants in
clause 4.3.5, authors decide to produce a modules to help a better
understanding on how the process of implementing the system for the
organization should/can be done
ERP Implementation SOP

Do some serious
Homework!!!
Give
Provide
an
Prepare
insight
gooddetails
background
of theofoverall
documented
ERP
consultants
form/process
with
towards
history.
Have
asystem
continuous
testthe
foron
Approach
Choose
organizations
how
with
itPeople
is to
companys
going
interest
ontothe
bethe
ERP
to
best
the
system
achieve
success
implemented.
stakeholders
interest.
implementation
objective
If not
approve due
to
insufficient
data and
48not
convincing.
Equipped self with concrete knowledge

Provide
all
thehas
documentation
the
beforehand
Acquire
more
knowledge
andincluding
testimonial
ERP system
different components
for
To
avoid
having
to
lose
1
team
who
did
not
contingency
plan
for
unexpected
event.
from
local
and
abroad
company
who
different company depends on their
have
chemistry
during
training,
choose
Select
team
member
with
full
determination.
succeeded
in
implementing
the
system.
Get
Do
not
specific
into
1 consultancy
only
to
objective.
Having
continuous
test
will
help
Do
not teams
afraid
of
approaching
seniors
or
several
for
future
interest.
At
leastall
2
Change
the
way
of
the
management
think.
approval
and
full
support
of
avoid
any
unnecessary
incident
if
anything
the
system
to
achieve
its
objective
during
its
people
from
thetraining
industries regarding the
years
of
ongoing
stakeholders
the top
management
happen
to theand
chosen
consultant.
early
initiates.
ERP system
Select few teams to undergo

training especially the IT
department for long term
interest with the chosen
consultant
FIGURE 6: ERP Implementation method /or SOP
CHAPTER 5
CONCLUSION AND RECOMMENDATION
49
5.1 Introduction
This paper examined the Effectiveness of Resources Planning in Oil and
Gas organization. An examination of the literature on development of ERP
implementation roadmaps reveals that it can be viewed from the project
management perspective because it is known as an efficient and effective
methodological
planning
and
calculated
management.
The
ERP
implementation roadmap might be designed by considering project

management knowledge areas and process focused. The nine knowledge
areas include integration, time, cost, scope, quality, human resources, risk
management, communication and procurement. In addition, the ERP
process focused on initiating, planning, executing, monitoring controlling
and closing. In order to implement ERP system successfully for gaining
the competitive advantage, the practitioners need to be guided by a
coherent
ERP
implementation
roadmap
which
embeds
project
management approach. However, based on existing publications, it can be

concluded that there is less number of ERP roadmaps which consider and
apply project management knowledge areas and process focused.
Therefore, there is a need of research which highlights and develops an
effectiveness of Resources Planning in Oil and Gas organization.
5.2The Problem Statement

The purpose of this study was to determine the following:
50
The benefits sought from implementing ERP in Oil and Gas

organization.
implementation.
The perceptions of project managers and team members as to the

benefits and concerns of implementing ERP in Oil and Gas
organization.
The extent in which selected decision-making processes were used

in the organizations decision to implement ERP.
5.3Conclusion
From the study, it is found that most of the oil and gas industry is
beginning to have the ERP implementation within their organization which
takes back few years ago. Majority of these companies, especially those
who involve in this project were hoping to get full benefits from the ERP
implementation as mention in literature review. The top benefits, based on
the research, were to have overall reduced operational costs.
As for the critical factors, the implementation had top management
(executive level) support had the highest acknowledgement from the team
member, which indicates its potential importance when implementing ERP
system. Necessity in new skill set among employees in terms of computer
proficiency gets the highest vote to determine the perception of project
manager and team member in the organization.
Strategic Business Planning Process was chose as the most preferable
decision making process when implementing ERP and support by top
management.
5.4Recommendation
51
As per quoted in the problem statement, this project is purposely to have

the idea of whether Enterprise Resource Planning have been
acknowledge by those who work in the oil and gas industry. Normally
ERP were used by those company that does not related to Oil and Gas
industry, but as new challenges arise and competition getting tougher, it
is a necessary for the organization to find an alternative to stay in the
track. Base from the results, analysis that was done, including the
conclusion, author of this project would like to recommend a few things.
Research recommendation,
1
Author recommend for the industry to always have changes in

their organization with time as new elements need to be discover
in order to get the maximum profit for the organization.
It is a necessary for the top management, managers and team

worker to involve and work together to accomplish the objective
of implementing ERP in the organization.
Ensure there is ample time for the ERP too be fully developed
within the organization to get the maximum benefit from it.
Future work recommendation,

1
Author strongly recommends to further the research of ERP in oil

and gas industry within the scope of its effectiveness in reducing
the cost and increase the profit to see whether it does achieve its
purpose or not.
Author also recommends for the differential in using various ERP

software to determine which has the maximum potential to be
implement by oil and gas industry
REFERENCES
52
1. Ask.com.
(2014).
What
Is
Resource
Planning?
[Online].
Available:
http://www.ask.com/question/what-is-resource-planning
2. A. Gholamzadeh Chofreh. (2014). Review on Enterprise Resource Planning
Implementation Roadmap: Project Management Perspective. [Online]. Available:

https://www.academia.edu/6174731/Review_on_Enterprise_Resource_Planning_I
mplementation_Roadmap_Project_Management_Perspective
3. Calogero, B. (2000). Who is to blame for the ERP Failure. Sun Server Magazine,
June, PCI Publications, Austin, TX. Nov.3.2000
4. Gupta, A. (2000) Enterprise resource planning: the emerging organizational value
systems, Industrial Management and Data Systems, Vol. 100, No. 3, pp.114118.
5. Hong, K.K. and Kim, Y.G. (2002) The critical success factors for ERP implication:
an organizational fit perspective, Information and Management, Vol. 40, No. 1,
pp.2540.
6. Joycelyn, H.L. (2004) Motivations For Enterprise Resource Planning (Erp)
System Implementation In Public Versus Private Sector Organizations, University
of Central Florida
7. King, W.R. (2007) Keynote paper: knowledge management: a systems
perspective, Int. J. Business and Systems Research, Vol. 1, No. 1, pp.528.
8. Lee, C-H., Huang, S-Y., Ou, C-S. and Chiu, L-Y. (2007) The impact of BPR/BPO
strategy, internet-based technology investment and BPR type on BPR
performance, Int. J. Business and Systems Research, Vol. 1, No. 3, pp.317342.
9. Leem, C.S. and Kim, S. (2002) Introduction to an integrated methodology for
development and implementation of enterprise information systems, The Journal
of Systems and Software, Vol. 60, No. 3, pp.249261.
10. Majid, M. Z., & McCaffer, R. (1997). Discussion of Assessment of Work
Performance of Maintenance Contractors in Saudi Arabia. 91.
11. Rao, S.S. (2000) Enterprise resource planning: business needs and technologies,
Industrial Management and Data Systems, Vol. 100, No. 2, pp.8188.
12. Ray R. (2011) Enterprise Resource Planning: Text & Cases, pp. 552 554.
53
13. Somers, T.M. and Nelson, K.G. (2004) A taxonomy of players and activities
across the ERP project life cycle, Information and Management, Vol. 41, No. 3,
pp.257278.
14. Tsai, W-H., Lin, T.W., Chen, S-P. and Hung, S-J. (2007b) Users service quality
satisfaction and performance improvement of ERP consultant selections, Int. J.
Business and Systems Research, Vol. 1, No. 3, pp.280301.
15. Tsai, Lee, Chen and W-H, (2009) A study of the selection criteria for enterprise
resource planning system, Int. J. Business and System Research, Vol. 3, No. 4, pp.
458
16. Wallace, T.F. and Kremzar, M.H. (2001) ERP: Making It Happen: The
Implementers Guide to Success with Enterprise Resource Planning. New York,
NY: John Wiley & Sons, Inc.
17. Wikipedia. (2014, 25 June). Enterprise resource planning [Online]. Available:
http://en.wikipedia.org/wiki/Enterprise_resource_planning
18. Zaiontz. C., (2014) Real Statistics Using Excel: Cronbachs Alpha [Online].
Available: http://www.real-statistics.com/reliability/cronbachs-alpha/
54
APPENDICES A
Draft Questionnaire (FYP I)
55
QUESTIONNAIRE
THE STUDY OF THE EFFECTIVENESS OF RESOURCE PLANNING IN OIL
AND GAS INDUSTRY
Objectives:
1
To highlight the beneficial of having resource planning system in the organization.
To indicate improvement that can be made towards the system.
To suggest some of the possible approach in resource planning for the Malaysian
oil & gas industry in general particular.
Instructions:
1 Please fill in the space available and tick () in the respective box.
2 All information will be treated as CONFIDENTIAL and shall be used for academic
3
purposes only.
All the data information will be on aggregated basis and no individual data will be
published.
Please be considerate and honest in answering each question.
56
Statement
Strong
ly
Disagr
ee
Disagr
ee
Neutr
al
Agree
Do you think the ERP has following benefit

Q1. Should be in the
organization
Q2. some period of training
must be provided
Q3. Current system is
satisfy enough
Q4. employees and
employer should have a
good understanding of ERP
system
Q5. Organization
restructure should be
Required
Q6. ERP system increase
the efficiency of work
processes
Q7. Facilitate timely flow of
information
Q8. Will enhance the
transparency in the system
Q9. Result in easy
availability of information
Q10. Will decrease work
load and Manpower
requirement
Q11. The top authority
must understood how the
data is flowing between
various departments
Q12. Redundancy in the
data base will be reduce
Q13. Better resource
utilization
57
Strong
ly
Agree
Q14. Organization has to

analyse their Non-value
added activities
Q15. Need active
participation of employees
and employee
Q16. Will reduce paper
work
Q17. ERP implementation
will consume a lot of time
Suggestion on the improvement of the survey. (Criteria, business, level

of management, etc)
Give opinion.
May I contact you again for future involvement in another questionnaire

form regarding ERP implementation in your organization?
58
APPENDICES B
59
Questionnaire Form
QUESTIONNAIRE
THE STUDY OF THE EFFECTIVENESS OF RESOURCE PLANNING IN OIL
AND GAS INDUSTRY
Objectives:
4
To highlight the beneficial of having resource planning system in the organization.
To indicate improvement that can be made towards the system.
To suggest some of the possible approach in resource planning for the Malaysian
oil & gas industry in general particular.
Instructions:
5 Please fill in the space available and tick () in the respective box.
6 All information will be treated as CONFIDENTIAL and shall be used for academic
7
purposes only.
All the data information will be on aggregated basis and no individual data will be
published.
Please be considerate and honest in answering each question.
60
SECTION A: DETAILS OF THE RESPONDENT

Instruction: Please write or place a tick () at the space/box provided below
1
2
3
Name:
Gender:
Male
Female
Age (years old):
25-30
31-35
36-40
41-45
46-50
4
Over 50
Working duration in- the current
Less than 10 years
10 years or more
company:
5
Job position:
6
7
Highest education:
Major field of study:
Management
Project team members
Others (specify: ..)

Bachelor
Master
Doctor
Industrial & Civil Engineering
Mechanics
Petroleum Engineering
Geology
Business Administration
Petrochemistry
Finance & Accounting
Management System
Others (specify: ..........)
61
SECTION B: RESPOND FOR THE IMPLEMENTATION OF THE ERP SYSTEM

Instruction: Based on your experience undergoing projects in your current company,
please tick () at the provided box.
Part 1: Expected Results and Benefits
Please complete the stem sentence with the statements below and answer if the benefit was
1. "Expected and Realized" 2. "Expected but Not Realized" 3. "Not Expected, but Realized"
4. "Not Expected and Not Realized"
BECAUSE OF IMPLEMENTING ERP SOFTWARE, MY ORGANIZATION HAS...
Expected
and
Realized
N
o
Redesigned
processes.
Realized
a
investment.
Software
that
is
easily
adaptable to business changes.
Improved
customer
relationship or supply chain
management
Overall
costs.
The ability to produce better

reports with the information I
need.
Increased standardization
processes.
Improved
communication.
reduced
business
return
on
operational
of
internal
Expected
but Not
Realized
Not
Expected
but
Realized
Not
Expecte
d and
Not
Realized
Part 2: ERP Implementation Critical Factors for Success

Please indicate the extent to which the statements below are true for your organizations
implementation.
No
1
The project manager

management.
There was a clearly

The implementation project manager was skilful in

project management.
The project had the support of business unit managers.
End-users were involved during the implementation.
Our organization mapped and reengineered our business

processes to match the ERP processes.
The ERP software was modified to meet our needs.
The organization was prepared to manage change.
was
influential
defined
with
scope
Yes
Somewh
at
Yes
Somewha
t
No
upper
for
the
10
The project team was knowledgeable about ERP and

business processes.
11
The implementation had top management (executive

level) support.
12
Top management was kept abreast of the project status.
13
14
The ERP vendor was involved in our project.
Part 3: Implementation Concerns

Please answer the questions below regarding your implementation.
No
1
Was
your
organization
technologically
prepared
to
No
implement?
2
Has ERP implementation necessitated the requirement

of a new skill set among employees in terms of
Was your implementation timetable reasonable?
Was your organization prepared for the external/public's

reaction to the implementation?
Was the implementation project adequately staffed to

meet the project deadlines?
Did you use some other measure of success (other than

return on investment) for the implementation?
Would you consider the ERP implementation in your

organization to be a success?
Was employee morale positively changed by ERP

implementation?
Was the implementation project adequately funded?
10
Did you realize the expected return on your ERP

investment?
11
Do you have the same organization leader (i.e., CEO) as

when the ERP software was implemented?
12
Was
your
organization
prepared
for
the
internal/employees' reactions to the implementation?
SECTION C: CURRENT PRACTICE OF ERP SYSTEM

Instruction: Please specify your answers at the space provided below.
1
What problems did you encounter, if any?
Regarding the decision to implement the ERP system, which best describes the
decision making process, please check all that apply:
Strategic Business Planning Process

Formal Organizational Readiness Process Model
Business Case Analysis
Other, Please Specify:
The decision to implement was proposed by (please check only one):
IT Department
Business Process Leaders/ Business Unit Managers
Top Management
Outside Consultants?
What advice do you have for others who are considering an ERP system
implementation?
-End of questionnaire-
APPENDICES C
Correlation Test for Research Question 1
Manager
Team Member
Top Management
M1
M
M2
M3
TM1
TM2
TM3
TM4
TM
TM5
TM6
TM7
TM8
TopM1
TopM
TopM2
Average
M
TM
TopM
Q1
5
3
2.75
No. of
respondent
3
8
2
M
TM
TopM
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q9
5
5
5
3
3
5
1
5
5
1
1
5
3
5
5
5
5
5
5
5
1
1
1
1
5
5
5
5
5
5
5
5
3
3
1
1
1
5
5
0
3
3
3
3
3
5
5
5
5
5
0
0
5
5
5
3
3
3
0
5
5
5
5
5
5
5
5
5
5
5
5
5
5
3
5
5
5
5
5
5
5
5
5
3
3
3
3
5
3
5
5
5
5
5
1
3
3
5
5
3
3
3
5
5
5
5
3
1
1
1
3
5
3
3
3
5
5
Q5
5
3.625
5
Q6
5
4.75
5
Q7
5
3.75
5
Q8
5
3.25
5
Q2
5
3
5
Q3
5
3
5
Q4
2
4.25
0
M & TM
TM & TopM
TopM & M
Correlation -0.30786
-0.29737065
0.8680528
Q9
4.333333
2.5
5
manager
team member
top management
M
TM
TopM
Q1
Q2
5
0
3
3
3
1
1
3
3
1
1
5
5
5
5
5
0
0
3
1
3
0
3
1
5
5
M1
M
M2
M3
TM1
TM2
TM3
TM4
TM
TM5
TM6
TM7
TM8
TopM1
TopM
TopM2
Average
No. of
respondent
3
TM &
TopM &
M & TM
8
TopM
M
2
Correlatio 0.01820
0.5501687
n
9
0.00105931
6
Q3
Q4
Q5
Q6
Q7
Q8
5
5
5
1
1
1
3
3
3
1
5
5
5
5
5
3
3
3
0
5
1
1
0
0
5
5
5
5
5
3
3
3
3
3
1
1
5
5
5
5
3
1
5
0
3
3
3
3
1
1
0
5
Q4
4.3333333
3
Q5
Q6
Q7
Q1
2.66666
7
Q2
Q3
TM
1.375
2.25
1.625
2.75
2.375
TopM
2.5
5
5
5
1
1
3
3
0
3
1
1
5
5
1.62
5
5
5
5
0
5
3
3
5
1
1
3
3
0
5
Q8
Q9
5
5
3
3
3
3
3
1
1
3
0
0
1
Q9
Q10
5
5
3
3
3
3
5
1
1
3
3
5
3
Q10
3.333333 4.333333 4.333333
Q11
5
5
5
5
5
1
1
3
3
3
5
5
5
Q12
5
5
1
1
5
1
1
3
3
3
3
5
5
Q13
5
5
5
1
5
3
1
3
3
3
3
5
5
Q14
3
5
1
3
1
1
3
1
3
3
3
3
1
Q11
Q12
Q13
Q14
2.125
2.75
4.375
3.625
3.625
3.875
2.5
2.5
manager
team member
top management
M
TM
TopM
Q1
No. of
respondent
3
8
2
Correlatio
n
Q2
Q3
M1
M2
M3
TM1
TM2
TM3
TM4
TM5
TM6
TM7
TM8
TopM1
TopM2
5
5
5
5
3
1
3
3
3
3
1
5
5
5
5
5
5
5
5
3
3
3
5
5
5
5
Average
Q1
Q2
Q3
TM
TopM
2.75
5
4.25
5
2.625
5
TM
TopM
TM &
TopM
M & TM
0.28103
3
Q4
5
5
5
1
0
1
3
3
3
5
5
5
5
Q4
4.3333333
3
1.75
2.5
0.236006
Q5
5
5
3
3
3
3
3
1
1
0
0
0
5
5
1
5
3
3
0
0
0
1
1
1
1
5
TopM &
M
0.4959334
9
Q6
Q7
5
5
5
5
3
3
3
3
3
1
1
5
5
Q5
Q6
3.666667
1.125
3
2.75
5
5
0
5
1
5
3
3
0
5
5
5
5
5
Q7
Q8
Q9
Q10
Q11
Q12
5
5
1
1
3
3
1
1
1
3
3
3
5
5
5
5
3
3
1
5
1
1
3
3
5
5
5
3
3
3
3
0
1
1
1
0
0
5
5
5
5
1
1
5
1
1
3
3
3
1
1
5
5
5
1
1
5
1
1
0
3
3
1
0
5
Q8
3.333333 3.666667
3.375
5
2
4
Q9
5
2.5
5
Q10
Q11
Q12
3.666667 3.666667 3.666667

1.125
5
3.375
3
3
2.5
APPENDICES D
Reliability Test for Research Question 1
Cronbach alpha
manager
team member
top
management
M
TM
n
3
8
TopM
C1
M
TM
TopM
M1
M2
M3
TM1
TM2
TM3
TM4
TM5
TM6
TM7
TM8
TopM1
TopM2
Total
Var
5
5
5
3
3
5
1
5
5
1
1
5
3
47
2.69822
5
C2
k
var
Var
C3
5
5
5
5
5
5
5
1
1
1
1
5
5
49
C4
5
5
5
5
5
5
3
3
1
1
1
5
5
49
3.408284 2.792899
0
3
3
3
3
3
5
5
5
5
5
0
0
40
3.60946
7
9
19.8462
26.67456
0.287986
C5
C6
5
5
5
3
3
3
0
5
5
5
5
5
5
54
2.130178
5
5
5
5
5
5
5
5
3
5
5
5
5
63
0.28402
4
C7
C8
5
5
5
5
5
3
3
3
3
5
3
5
5
55
C9
5
5
5
1
3
3
5
5
3
3
3
5
5
51
0.946746 1.609467
5
5
3
1
1
1
3
5
3
3
3
5
5
43
2.36686
4
Total
40
43
41
31
33
33
30
37
29
29
27
40
38
451
19.84615
Reliability Test for Research Question 2

Cronbach Alpha
manager
team member
top management
M
TM
TopM
n
3
8k
2
var
Var
Reliability Test for Research

Cronbach Test
manager
team member
top management
M
TM
TopM
n
3
8
2
14
39.8934
9
213.775
1
0.87595
4
Question 3
k
var
Var
APPENDICES E
12
33.8107
167.456
0.87065
Validity Test for Research Question 1

Validity
validity
0.28443
0.5333
2

Validity Test
validity
=
=
0.875954
0.9359
Validity Test
validity
=
=
0.870646
0.9331

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THE STUDY OF THE EFFECTIVENESS OF RESOURCE PLANNING IN

OIL AND GAS INDUSTRY

Mohammad Nazhri Bin Mohammad Hashim

Dissertation submitted in partial fulfilment of

Universiti Teknologi PETRONAS

A project dissertation submitted to the

UNIVERSITI TEKNOLOGI PETRONAS

Introduction to Enterprise Resource Planning.......

CHAPTER II: LITERATURE REVIEW AND/OR THEORY

Resource Planning in Oil and Gas Industry..

Benefits of implementing the ERP systems..

CHAPTER III: METHODOLOGY/PROJECT WORK........

Proper form of Questionnaire

Data Analysis Method.

Percentage Method (Statistical Analysis)..................

SPSS (Correlation test, Cronbach test & Validity test)..

3.5.2.1 Correlation Test...

3.5.2.2 Cronbach Test (Reliability Test).

3.5.2.3 Validity Test

CHAPTER IV: RESULT AND DISCUSSION..

Respond Towards The Purpose Of This Project.

4.3.3. Research Question 3: The perceptions of project managers and team

4.3.5. Advice/comments on the current system from industrialist

Work flow of suggestion to conduct ERP system.............................

CHAPTER V: CONCLUSION AND RECOMMENDATION..

The Problem Statement...

APPENDICES A: Draft Questionnaire (FYP I).

APPENDICES B: Questionnaire Form (FYP II)

APPENDICES C: Correlation Calculation..

APPENDICES D: Cronbachs Alpha (Reliability) Calculation

APPENDICES E: Validity Calculation...

FACTORS OF THE ERP EFFECTIIVENESS

CRONBACHS ALPHA CONSISTENCY

GANTT CHART FOR FYP I AND FYP II

KEY MILESTONE FOR FYP I AND FYP II

RESPONDS ON THE BENEFITS SOUGHT FROM THE

TABLE 6: AVERAGE INDEX FOR RESEARCH QUESTION 1

CORRELATION RESULT FOR RESEARCH QUESTION 1

RELIABILITY AND VALIDITY RESULT FOR RESEARCH

CRITICAL FACTORS OCCURS DURING THE

TABLE 10: AVERAGE INDEX FOR CRITICAL FACTOR

FLOW OF WORK BASE

PROCESS OF DATA EVALUATION

FIGURE 4: CRONBACHS ALPHA COEFFICIENT

ERP IMPLEMENTATION METHOD MODULE /OR SOP

Introduction To Enterprise Resource Planning

Quoted fromAsk.com, 2014,

It will lead to conservation of extinguishable resources.

It will lead to a country which is resource sufficient itself

Quoted from Wikipedia (2014),

Financial accounting: General ledger, fixed asset, payables including

Management accounting: Budgeting, costing, cost management, activity

Human resources: Recruiting, training, rostering, payroll, benefits, 401K,

Manufacturing: Engineering, bill of materials, work orders, scheduling,

Order Processing: Order to cash, order entry, credit checking, pricing,

Supply chain management: Supply chain planning, supplier scheduling,

Project management: Project planning, resource planning, project costing,

Customer relationship management: Sales and marketing, commissions,