Quality is everybody's business, that is everyone who wants to compete in the 90's. Exploration and Producing companies are no exception. Not all of the countless quality improvement approaches fit neatly with exploration and producing processes, but we in Texaco's Eastern Exploration and Producing Region have found approaches that are making remarkable differences in the way we do business and yielding astonishing results.

We began the journey to improve the way we do business in 1988 when we flattened the organization and focused our large organization around fundamental business units. We reorganized the reporting system and delegation of authority, but had not substantially changed the work processes or the culture. In April of 1990, we chose quality improvement through team management as our means to involve every employee in continuous improvement. It would become an opportunity for every Texaco person to be the change we are trying to create.

One and a half years later empowered employees on interlocking and cross-functional and even cross-company teams armed with quality tools and skills are making a dramatic difference to our bottomline. Our field teams have played a tremendous role in the gains. Volume is up and expenses are down.

We are aligning our systems and continually improving our processes using the Malcom Baldrige Method as our guide to a systematic and integrated approach that imbeds quality into business, creating a self-renewing, continuous improvement process.

As more exploration and producing companies and oilfield vendors look for better ways to compete through quality, we will see a more synergistic approach to partnering than ever thought possible in the oil field. The Texaco,' Oxy cross-functional, cross-company team, of which we are so proud, will become an operating standard.

We're putting energy back into the energy business and see exciting visions of the future. How? One word - Quality.

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