Activity-Based Management in Shell Gabon (Case Study) Essay

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1. Calculate the UOC per barrel for SG. Is a barrel of oil the cost driver for all the activities that go on within RDS? Comment on why RDS chooses to monitor costs per barrel.
The UOC per barrel for SG is $3.21. OPEX | $140,640,200 | 120,000 | barrels/day | | | 365 | days/year | Total | $140,640,200 | 43,800,000 | barrels/year | Unit Operating Cost (UOC) | $3.21 | | |
*UOC = (Total Operating Expense – Exploration – Depreciation & Depletion) / Barrels Produced
Barrels of oils produced may be a cost driver for some activities in RDS, but not all activities are driven by the production of oil. RDS has other activities that requires significant expenditures as the headquarter. The capital investment on exploration for various
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Goal is 99.9% uptime. | Are our Telecommunications secured (technically) from attack? Are we prepared for a Security Audit? | Do we have a contingency plan in an Emergency? Have we tested it? Is the information current? |

B. Efficiency: A process characteristic indicating the degree to which the process produces the required output at minimum resource cost and ask “are we doing things right? Select, install, operate, support hardware & software | Time spent on “selecting” and “installing” hardware/software – installation on a new computer for example can take one to five hours depending on how prepared you are… | Time spent supporting new installations – implying rollout did not go correctly. Things that are forgotten or overlooked mean our process has holes in it. | For “operating” the hardware/software – has our staff has appropriate training? |

C. Quality: The degree to which a product or service meets customer requirements and expectations. Provide System Application & Product Support | This would apply to not only the products themselves but also the support given by their technical staff. | Does the System do what the customer needs it to do in a timely and efficient manner? | Does the Application do what the customer needs it to do in a timely and efficient manner? | Does the Product do what the customer needs it to do in
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