ABSTRACT
Past
studies have shown that the important determinant of residential housing
satisfaction is its location in term of distance to the Central Business
District (CBD) or major roads, ignoring the characteristics of the house and
the environment in which the house is located. Therefore, this study examines
the extent to which residential housing satisfaction are determined by the
housing structural, environmental and socio-economic attributes.
To
conduct this research, the study adopted a survey design whereby 303 buildings
were selected for the questionnaire administration. Using multi-stage sampling
techniques, the study area was first identified and classified into zones, and
buildings selected according to their types by simple random in the second
stage. In the third stage, streets were selected in the chosen zones based on
their conditions and finally questionnaires were systematically administered on
the households in the selected building types of the classified zones for data
collection. Data collected were analyzed using both descriptive (frequency,
mean etc) and inferential (regression analysis) techniques.
The
results of the stepwise regression analysis showed that building type (R2
=0.132, P< 0.05), Floor material type (R2 =0.109, P< 0.05),
number of gated streets (R2 =0.089, P< 0.05) and security type (RABSTRACT
The Oil and Gas industry continues to struggle in
finding a balance between rising global demand, diminishing known resources and
in maintaining manageable distribution and operating costs. While mergers and
consolidation continue, oil and gas management are determining other approaches
to recover their base lines. One particular measure is to include business
process outsourcing (BPO) in their operational mix. The aim of this study is to
assess the degree of effectiveness of outsourced facility management in Nigeria
oil and gas firms of the downstream sector using user satisfaction indices. The
specific objectives are among others; to identify FM services that are most
outsourced in Nigeria’s Oil and gas firms; to identify the relative importance
of factors that influence users’ satisfaction with outsourced facility
management services in the Nigeria Oil and Gas firms; and determine the degree
of effectiveness of outsourcing as a means of service delivery in the sampled
oil and gas firms. Data for the research work was collected through self
administered questionnaires and analyzed using Statistical Package for social
scientist (SPSS 17). The respondents were the staff of the six major oil and
gas downstream industry within the Facility management department and were
chosen through purposive sampling technique. Findings revealed key services
that are mostly outsourced; transportation and logistics coming first among
others. Findings also revealed the importance of factors that influence users’
satisfaction with outsource services; service delivery was identified as the
most important. It also that outsourcing is highly effective with the elements
considered to be outsourced and is reliable for this sector. Users’
expectations of outsourced service is high; The outsourced facility manager
must have experience in Oil and Gas, and understand the industry’s need and
services and ensure that their services are structured to meet the industry’s
increasing demand. They should also seek technological innovations with more
cost effective methods for maintaining equipments and Platforms without compromising
safety and environmental concerns.
TABLE OF CONTENTS
TITLE PAGES
Title Page i
Certification ii
Declaration iii
Dedication iv
Acknowledgement v
Table of Content vi
List of Tables ix
List of Figures x
Abstract xi
CHAPTER
ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Research Questions 4
1.4 Aim and Objectives of the Study 4
1.5 Significance of Study 5
1.6 Scope 7
1.7 Definition of Terms 8
CHAPTER
TWO: LITERATURE REVIEW
2.1 Introduction to Facility Management 10
2.1.1 Facility
Management in Context 10
2.2 Outsourcing 11
2.2.1 Evolution
of Outsourcing 11
2.2.2 Outsourcing
in FM 12
2.2.3 Outsourcing
Decisions 15
2.2.4 Risks Associated with Outsourcing 18
2.2.5 Identification
of risk factors associated with Outsourcing 18
2.2.6 Risk
Management in Outsourcing 21
2.3 Frame work for an Effective maintenance
Outsourcing Relationship 23
2.4 Overview of the Oil and Gas Industry 25
2.5 Outsourcing services in Oil and gas
Downstream Sector 27
2.6 Concept of Service Quality 30
2.6.1 Performance
and Service Quality 31
2.6.2 Measuring
Service Quality 34
2.7 The Concept of Users Satisfaction 40
2.7.1 Reasons for
Assessment of User Satisfaction 42
2.7.2 Factors
that Influence User Satisfaction 43
2.7.3 User
Satisfaction and Service Quality 44
2.8 Service Level Requirements of Facility
Management Services 48
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Introduction 51
3.2 The Study Population 51
3.3 Research Design 51
3.4 Sampling 52
3.4.1 Sample
Frame 53
3.4.2 Sample Size 53
3.5 Data Collection 54
3.5.1 Data
Collection Instrument 54
3.5.2 Data
Collection Procedure 56
3.6 Reliability and Validity 56
3.6.1 Reliability 56
3.6.2 Validity 56
3.6.3 Pilot Study 57
CHAPTER
FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction 59
4.2 Analysis of Data from the Sampled Oil and
Gas Industries 60
4.2.1 General Information of Organization 60
4.2.2 Identification
of the most Outsourced Facilities Management
Activities
in Nigeria Oil and Gas Downstream Sector 64
4.2.3 Ranking of
Service Quality Indicators for FM Services 67
4.2.4 The
Relative Importance of Factors that Influence Users
Satisfaction with Outsourced Facility
Management Services in
Nigeria Oil and Gas Downstream Sector 71
4.2.5 Expected
Outsourcing Benefits in the Oil and gas Downstream Sector 73
4.2.6 The degree
of Effectiveness of Outsourcing as a means of Service
Delivery
in the Oil and Gas Downstream Sector 74
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings 76
5.2 Conclusion 78
5.3 Recommendation 79
REFERENCES 80
Appendix 84
LIST OF TABLES
Table
2.1 Essential Systems and Elements
of an Outsourced Maintenance
Relationship 25
Table
2.2 Determinants of Service
Quality 37
Table
2.3 Nine Dimensions of Service
Quality 38
Table
4.1 Name of Company of Respondents 60
Table
4.2 Gender Distribution of the
Respondents 61
Table
4.3 Age Distribution of the
Respondents 61
Table
4.4 Location of the Respondents 62
Table
4.5 Highest Educational
Qualification 62
Table
4.6 Position in your Organization 63
Table
4.7 FM Services in Sampled Oil and
Gas Industries 64
Table
4.8 Users Ranting of Plant
Maintenance Service and their Personnel 67
Table
4.9 Landscaping Maintenance and
Cleaning Services and their Personnel 68
Table
4.10 Security Services and their
Personnel 68
Table
4.11 Waste and Environment
Management Services and Personnel 69
Table
4.12 Warehousing and Storage
Services and their Personnel 70
Table
4.13 Logistics and Distribution
Services and their Personnel 70
Table
4.14 Factors influencing Users
Satisfaction in the selected Oil and Gas Downstream
Companies 71
Table
4.15 Expected Benefits of
Outsourcing 73
Table
4.16 Elements of Effective
Outsourcing Services 74
LIST OF FIGURES
Figure
1 Outsourcing Process 14
Figure
2 Top Ten Reason Companies
Outsource 17
Figure
3 Outsourced Maintenance
Relationship Management Framework 24
Figure
4 Support services of the Oil
and Gas Industry 27
Figure
5 Downstream Challenges 28
Figure
6 Transformation Process Model 33
CHAPTER
ONE
INTRODUCTION
1.1 Background to the Study
Business processes and objectives operate
and survive because they are primarily providing an effective and meaningful
service to their customer (i.e. the user). For that service to be effective,
the perceptions and expectations of the user must be met in order to provide a
successful service delivery outcome. Conversely, the perceptions of the user to
the initial input of the service delivery process of the organization is of
equal importance, as it will determine the strategic and operational objectives
of the organization, and consequently provide the added value needed in
achieving the end product of customer satisfaction.
Facilities management is a diverse
profession, the main aim of which should be to provide quality environments,
which are fit for the purpose for which they have been designed. For
(Alexander, 1996) it “is a total quality approach to sustaining an operational
environment and providing support services to meet the strategic needs of an
organization”.
FM is a constant balancing act between the
competing pressures of time, cost and quality. However, with ever-decreasing
budgets and competition in the market place, cost often becomes the prevalent
consideration. However, (Wauters, 1995) has identified that reducing facilities
costs does not automatically increase bottom line profits and points out that
unless savings are affected without impairing the organization’s performance
dependent on these facilities, the opposite may occur, i.e. profits will fall.
It is possible to achieve quality whilst
positively affecting the balance sheet. A quality workplace can induce
productivity gains in the workforce, improve workplace satisfaction and act as
a catalyst in attracting and retaining talented members of staff, thereby
increasing profits. In a time of increasing numbers of the workforce deserting
the traditional office in favour of home working, the provision of quality
working environments is becoming increasingly important. However, it is the
diversity of the profession that is one of the key barriers to the provision of
quality working environments. Traditionally facilities managers have come from
engineering backgrounds and may have a different focus to the new breed of
facilities managers who come from many diverse backgrounds. A key challenge,
therefore, is for facilities management to tailor itself to the needs of these
diverse backgrounds. It should also be borne in mind that the facilities
manager is not the key customer. The customer is the user of the facility.
To provide a quality workplace, the
customer must define their requirements clearly. However, requirements tend to
be defined by facilities managers, largely without input from the building
users. It appears that greater interaction is required with the users of the
facility in defining requirements and desirables. It is also difficult to cater
for individual needs in terms of the working environment. For example, while
one building occupant may feel cold, another finds it too warm; one may want
the light above their desk turned off, while their neighbour feels it is too
dark. This is an inherent problem in open plan offices, which are now the norm.
Therefore, in considering quality working environments, consideration must be
given to how individual needs can be catered for and building occupants given
greater control over their immediate environment.
This study considers trends in outsourcing
and how facilities management service providers can meet the requirements of
the industry by implementing quality and performance management techniques into
their processes.
1.2 Statement of the Problem
For more than a decade, the oil and gas
industry has been reorganizing to function more efficiently and effectively,
the business has changed dramatically as oil companies have sought to define
and focus on their core business. The oil and gas sector tend to collaborate
with the FM service providers to provide professional services and improve the
holistic work environment by outsourcing. In order to maximize the value
obtained from outsourcing, users intend to take a proactive role in the
outsourcing process, taking initiative in management.
Anshori and Langner, 2007 studied the
importance of customer satisfaction and supreme service provision in the hotel
industry using Surabaya Plaza Hotel in Indonesia with the aim of gaining insight into the concepts regarding customer
satisfaction in the hotel industry and to explore the very needs and wants of
Surabaya Plaza Hotel’s guests. This was to discover the opportunities a hotel
management has in improving the experience of current guests and in becoming
more competitive in winning new customers.
Durodola (2009) studied the management of
hotel properties in south-western Nigeria using the facility management
perspective with the aim to investigate the degree of beneficial application of
facilities management principles in the management of hotel organizations in
the study area.
Abolade, Omirin and Dugeri (2013) carried
out a study on users’ satisfaction with property management service in
commercial properties in Lagos, Nigeria. The purpose was to examine users’
satisfaction with the management of commercial properties by Estate surveyors
with the view to drawing a framework for more user friendly management of such
properties.
This study notes however that even though
outsourcing is one of the most researched areas in facility management studies,
its impact on facilities management services provision in oil and gas
downstream sector is largely unclear. This is because although a wide range of
services are being outsourced in the oil and gas sector in response to the
emerging trends outlined above, there has been no comprehensive empirical based
research reported in the literature to provide insights into such a relatively
evolving and important concepts as outsourcing and users satisfaction in the
oil and gas downstream sector. This therefore underscores the need for this
research which is to make facilities management services delivery sustainable
in oil and gas firms in Nigeria. In specific terms, this study proposes to
address this by first identifying the drivers of outsourcing and then conduct
an empirical survey of facilities management services being outsourced in the
oil and gas downstream sector. It then assesses users’ satisfaction of
outsourced facilities management services in the oil and gas sector.
1.3 Research Questions
This study is thus aimed at providing
answers to the following research questions:
- What are the
services that are most outsourced in Nigeria’s Oil and gas firms?
- What is the
relative importance of factors that influence users’ satisfaction with
outsourced facility management services in the Nigeria Oil and Gas firms?
- What is the
degree of effectiveness of outsourcing as a means of service delivery in
the sampled oil and gas firms?
1.4 Aim and Objectives of the Research
The purpose of this study is to assess the
degree of effectiveness of outsourced facility management in Nigeria oil and
gas firms of the downstream sector using user satisfaction indices, with a view
to discovering ways of improving facilities management services provision in
Nigeria oil and gas downstream sector. In order to achieve the above stated aim
the following objectives are set to: -
- identify FM
services that are most outsourced in Nigeria’s Oil and gas firms.
- identify the relative
importance of factors that influence users’ satisfaction with outsourced
facility management services in the Nigeria Oil and Gas firms.
- determine the
degree of effectiveness of outsourcing as a means of service delivery in
the sampled oil and gas firms.
1.5 Significance of Study
Outsourcing is a strategic management
option that has the potential to improve organizational efficiency and
effective management of resources as well as increase users’ satisfaction about
quality of services in oil and gas downstream sector. It is therefore worthy of
research efforts. Theoretically,
the study is justified in that lessons drawn from this research will aid in
developing a body of knowledge on outsourcing of facilities management services
in Nigeria. This is based on the fact that most research to-date on outsourcing
and facilities management focus primarily on the experiences of developed
countries in Europe, United States and Asia. Little or nothing had been written
about the provision of outsourcing services in the oil and gas sector generally
in Nigeria.
Most of the current literature in Nigeria
are therefore preliminary and pedagogic addressing issues such as definitions
and scope [Odiete (1998), Ojo (2002)], facilities management tools [Mbamali and
Adebayo (2006), Opaluwah (2005)] and which of the professionals within the
environmental setting is best suited to serve as facilities manager or to
handle what is within the facilities management field (Odiete, 1998, Ahmad,
1998 and Ojo, 2002). It is only recently that facilities management has come to
be applied to specific sectors of the economy usually education and hospital
sectors. Most of earlier studies have taken place in South Africa [Kotze and
Nkado (2003)] and United Kingdom (Amaratunga and Baldry, 1999 and Amaratunga,
2000). Most of the studies in Nigeria have been devoted to clarifying what
facilities management really entails and distinguishing it from the
traditionally practiced property management and maintenance management. The
present study will fill this gap by providing a pioneering application of
facilities management to a major economic sector in Nigeria and that is the oil
and gas sector.
Oil and gas industry continues to struggle
to find a balance between rising global demand, diminishing known resources,
and in maintenance distribution and operating costs. While mergers and
consolidation continue, oil and gas management are determining other approaches
to recover their base lines. One particular measure is to include business
process outsourcing in their operational mix. Much of this orientation has been
caused by operational processes becoming progressively more complicated and
more costly in terms of managing a variety of business functions; hence
businesses are handing parts of their core work, such as engineering services
apart from finance and accounting, to outside service providers. Identifying
the relative importance of factors that influence users’ satisfaction with
outsourced facility management services in the Nigeria Oil and Gas firms is a
major justification for the study. The justification for this study is also
further boosted by the fact that the knowledge gathered from this research will
immensely assist government and stakeholders alike in the establishment and
possible enactment of relevant laws, regulations and guidelines in the
development of efficient framework for outsourcing and facilities management
practice in Nigeria. The study reported in this thesis contributes to practice by identifying factors
associated with high levels of performance that stakeholders in the oil and gas
sector should consider while making outsourcing decisions as regards facilities
management services provision in the industry.
Also the outcome of this study will assist
the facility management industries to assess the feelings of users of its
services about service quality. Finally, the service providers can know in more
detail the expectations of their clients by understanding their relationships
and the trust built can provide the platform for effective service delivery in
the oil and gas downstream sector.
1.6 Scope and Delimitation
The scope of this study is limited to
internal users i.e the management and staff of major oil and gas downstream
companies in Nigeria; in particular Total, Oando, Forte-oil, Conoil, MRS and
Mobil. It should have been ideal to cover both the major and independent
marketers in Nigeria, however, the researcher opted to restrict the scope to
major marketers in Nigeria because a study of both independent and major
marketers would make conclusions unnecessarily wide varied and incapable of
clear interpretations since the study is perhaps the first of its kind in
Nigeria. Thus, a study restricted to major downstream oil and gas companies in
Nigeria on the other hand, would allow the researcher to form definite
conclusions, which may be more amenable to clear interpretations and create a
pedestal for further research.
Again, it would have been ideal to address
the user satisfaction with outsourced facilities management to all sectors of
the economy. However, this is unrealistic for the same reasons mentioned
earlier. A study of the user satisfaction with outsourced facilities management
to sectors as varied as banking, education etc with their differing problems
and standards would merely result in generalized and shaky conclusions which
may lead to varied implications of inadequate understanding. A study devoted to
the oil and gas downstream sector, on the other hand, would afford the
researcher a more concentrated study in a hitherto neglected area of the
economy; also, the time frame allowed for the research as well as associated
logistics make it imperative that the research be limited to the major oil and
gas marketers of Nigeria.
1.7 Definition of Terms
Facility
Management: Facility management is a profession that
encompasses multiple disciplines to ensure functionality of the built
environment by integrating people, place, process and technology
Outsourcing:
Outsourcing
allows companies to focus on other business issues while having the details
taken care of by outside experts. This means that a large amount of resources
and attention, which might fall on the shoulders of management professionals,
can be used for more important, broader issues within the company. The
specialized company that handles the outsourced work is often streamlined, and
often has world-class capabilities and access to new technology that a company
couldn't afford to buy on their own.
User
Satisfaction: User satisfaction” concept is based on
different approaches. The process-oriented approach considers user satisfaction
as the difference between expected satisfaction and achieved satisfaction.
Quality
Service: An
assessment of how well a delivered service conforms to the client's
expectations. Service business operators often assess the service quality
provided to their customers in order to improve their service, to quickly
identify problems, and to better assess client satisfaction.
Oil
and Gas Downstream sector: The downstream sector commonly refers
to the marketing and distribution of products derived from crude oil and
natural gas. The downstream sector touches consumers through products such as
gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils,
lubricants, waxes, asphalt, natural gas, and liquefied petroleum gas (LPG) as
well as hundreds of petrochemicals.
Users:
The
person, organization, process, device, program, system, or other entity that
exploits another person, organization, process, device, program, system, or
other entity.
2
=0.112, P< 0.05) are the most important determinant of the Residential housing
satisfaction.
The
conclusion is that housing structural and neighbourhood attributes are more
important factors that explain variations in residential housing satisfaction
than the location factors.
Therefore,
it is recommended that government emphasis should be on provision of affordable
bungalow buildings with plastered floors where there are no gated streets but
must have effective vigilante security system.
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