2001 DynMcDermott Petroleum Operations Company

Description

Level: III

2001  DynMcDermott Petroleum Operations Company (contractor for the U.S. Department of Energy; renamed DM Petroleum Operations Company or “DM”)

Louisiana Performance Excellence Award, Level III Recipient

Link to the DM 2005 Baldrige national application:

https://www.nist.gov/system/files/documents/2017/10/11/DynMcDermott_Application_Summary.pdf

DM adopted the Baldrige Excellence Framework to create a sustainable, resilient, high-performing organization. The Baldrige Excellence Framework was adopted as its business model and engaged the entire workforce in sustaining performance excellence.  

 DM received the Presidential National Baldrige Award in 2005, the only Louisiana organization to obtain this level of performance.

DM designed and created high-performing organizational systems, processes, and programs that resulted in senior leaders achieving national prominence, recognition, and performance awards such as the U.S. Presidential Baldrige Performance Excellence Award and the Robert W. Campbell Award for Safety, Health, and Environment Robert W. Campbell Award for Safety, Health, and Environment international performance excellence award, including competition from over 10 countries.

1996 – DynMcDermott Petroleum Operations Company (contractor for the U.S. Department of Energy; renamed DM Petroleum Operations Company or “DM”)

2001 – DynMcDermott Petroleum Operations Company (contractor for the U.S. Department of Energy; renamed DM Petroleum Operations Company or “DM”)

2003 – DynMcDermott Petroleum Operations Company (contractor for the U.S. Department of Energy; renamed DM Petroleum Operations Company or “DM”)

2006 – Bayou Choctaw Oil Storage Facility southwest of Baton Rouge, Louisiana.

2006 – West Hackberry Oil Storage facility in West Hackberry, LA

2006 – Big Hill Oil Storage Facility in Winnie, Texas, received the Texas Award for Performance Excellence Award

2009 – DynMcDermott Petroleum Operations Company (contractor for the U.S. Department of Energy; renamed DM Petroleum Operations Company or “DM”)

Louisiana Performance Excellence Award, Level III Recipient

Sector: Service

850 South Clearview Parkway, New Orleans, Louisiana 70123

DM was a federal government “prime” contractor committed to mission readiness…to a safe and healthy work environment…to applying commercial best practices…to efficiency initiatives…to an integrated quality system…and to providing safe and secure energy for the nation’s future.

DM was located in New Orleans, LA, is the sole Management and Operating (M&O) Contractor for the Department of Energy (DOE) Strategic Petroleum Reserve (SPR). Formed in 1993, DM successfully re-competed its contract and, as of April 2003, received a new contract through 2008 with renewal options through 2014.

Organizational Culture DM’s organizational culture was measured via Organizational Capital Readiness System 1.1a(1) and is structured yet flexible, helping create a cooperative, productive work environment and provide value for stakeholders. The DM unique “Values Based” Strategic Plan that defined culture with a set of core values and related success factors (Figure 2.1-3). These values are the foundation of our performance management system and all strategic performance measures.

DM had many formal and informal teams and partner with DOE, other suppliers, and commercial partners. DM’s Operational Readiness System supports our mission and consists of our two most important processes of “Drawdown” and “Fill”.

DM Purpose: Defined by contract to Manage and Operate the DOE Strategic Petroleum Reserve.

DM Vision: Our vision is to be the industry leader for petroleum storage, distribution, and operations best practices, and assist the SPR in remaining a leader in federal government agency performance.

DM Mission is to excel at delivering safe, secure, environmentally responsible and cost-effective SPR operational readiness

DM Vision is to be the industry leader for petroleum storage, distribution, and operational best practices; assist the SPR in remaining a leader in federal government agency performance.

Core Values

  • Mission Readiness
  • Responsible Stewardship Partnership
  • Customer Satisfaction
  • Social Responsibility
  • Employee Development & Diversity

Baldrige Performance Excellence Success Story – Transforming from Good to Great

DynMcDermott Petroleum Operations Company From 1993 to 2014, DynMcDermott Petroleum Operations Company (DM Petroleum Operations Company – DM) operated and maintained the U.S. Strategic Petroleum Reserve (SPR), a cache of up to 700 million barrels of crude oil. The U.S. Department of Energy’s (DOE) oil reserve was designed as “energy insurance” against disruptions to the availability of crude oil. With a budget for 2006 of $113 million and just over 500 employees in Louisiana, Texas, and Mississippi, DM worked exclusively for the DOE. When Hurricane Katrina caused DM to relocate operations from New Orleans to Beaumont, Texas, the SPR began delivering oil within 5 days after Katrina to refineries in the Gulf Coast region, which normally get oil from the Gulf of Mexico.

 

Highlights

  • 2005 recipient of the Presidential Malcolm Baldrige Award for Performance Excellence
  • 2006 recipient Robert W. Campbell Award for Safety, Health, and Environment Robert W. Campbell Award for Safety, Health, and Environment international performance excellence award, including competition from over 10 countries.
  • Longest-running management and operations contractor in the SPR’s 30-year history
  • Improvement in drawdown readiness from 95% to 99% or better over 3 years
  • Improvement in overall customer satisfaction from 67% to 85% (on a 90% scale) over 6 years

 

DM received the Louisiana Quality Foundation Performance Excellence Award in 1996, 2001, 2003, 2006, and 2009, setting a new record as no other recipient has received the award more than twice.

DM won three environmental awards administered by the Louisiana Quality Foundation. Each of its three Louisiana site locations won the Louisiana Environmental Management Award adding to a long list of national environmental awards.

National environmental management awards include the White House Closing the Circle Certificate of Achievement for Model Facility Integrated Pollution Prevention, the Occupational Safety and Health Administrations and Department of Energy VPP STAR Certifications at multiple sites, and the Environmental Protection Agency’s National Environmental Achievement Track Award.

The DOE SPR’s mission was “to maintain a state of readiness to respond to the President of the United States should he order to use the SPR to mitigate the effects of an oil supply emergency.”

The SPR stores crude oil inside salt domes located along the Gulf Coast. All DM locations were certified to the ISO 9001 Quality Managment international standard and the ISO 14001 international Enviromental Management standard, which was rare in the federal government.

DM was strongly devoted to preserving and safeguarding the people and environment. The receipt of dozens of performance awards was a great testimony to the collective efforts of the workforce in fulfilling their commitment to the DM Mission, Vision and Core Values of responsible stewardship and social responsibility,” said Robert (Bob) McGough, President and CEO of DM.

Contact Ron Schulingkamp at Louisiana Quality Foundation for more information.