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Shell Pakistan

Shell Pakistan

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Published by: talhagujjar2 on May 18, 2011
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Mehreen Fida

(BB-07-04) (BB-07-

‡ ‡ ‡ ‡ ‡ ‡ ‡

Umay Ammara Farrukh Iqbal Mohsin Riaz Faiza Khalid Abdullah Farooq Ameer Usman Salman Tariq

BB-07-28 BB-07BB-07-53 BB-07BB-07-16 BB-07BB-07-66 BB-07BB-07-42 BB-07BB-07-49 BB-07BB-07-57 BB-07-


Presentation outline ‡Introduction of shell ‡What is TQM ‡Some information ‡Principles of TQM ‡What is ISO ‡ISO standards ‡Quality management system ‡ Comparison with PSO ‡ Benefits and Pitfalls of TQM ‡Recommendations ‡Conclusion .


TOTAL Quality Management: is the art of managing the whole to achieve excellence. etc . Quality--------Degree of excellence a product or service provides. controlling. art or manner of handling. Management----Act. directing. Total----------Made up of the whole.

red and yellow are hard to define. Marcus Samuel . ‡ The exact origins of the Shell. its emblem and colors have stood for quality and professionalism in our products and services.‡ The word µShell¶.

‡ Over 100 Years presence in the Subcontinent Dating Bach To 1899 Royal Dutch Burmah Oil Company ‡ After independence. {PBS} ‡ In 2001-2002. Shell Petroleum Company increased its market share to 76% in Pak Shell Ltd. . ‡ In 1970. it changed its name to Burmah shell Oil and Distribution Company. it got changed to Pakistan Burmah Shell Ltd.

Shell has over 100 years presence in the Subcontinent .

However.from the exploration for natural gas through to distribution and end use. ‡ The Shell Group's gas business is carried on mainly through joint ventures. we can deliver a solution that is carefully tailored to customer requirements. Our long-term vision has enabled us to become both a market and technical leader .‡ We offer a complete range of services to develop and implement a major gas project . both at a global and local level. ‡ Working with our partners. in almost all cases we provide the technical and operational leadership. ‡ We have pioneered the gas industry since its inception and have invested huge amounts of capital in establishing a gas infrastructure.

‡ The Shell philosophy is to employ local staff wherever possible and become a fully integrated and valued member of the host country's community both in a business and social sense. Our policy of forging close ties with local communities and governments allows the Shell Group to operate successfully in more than 140 countries. ‡ Our six lines of business are: ± ± ± ± ± ± Liquefied Natural Gas (LNG) Market Access What is Gas to Liquids? Power Generation Coal Gasification Marketing and Trading .‡ We have more than 100 years of experience in hydrocarbons.

Fuels and Bitumen ‡Chemicals ‡Renewables ‡Shipping & Trading ‡Shell Global Solutions Shell for Motorists ‡ Shell station locator ‡ Car oils ‡ Motorcycle oils ‡ Shell fuels ‡ Shell credit cards ‡ Shell fuel & fleet cards ‡ Loyalty schemes .Shell for Businesses ‡Exploration & Production ‡Gas & Power ‡Lubricants.

. partners and policy-makers to advance more efficient and sustainable use of energy and natural resources.Vision«« ‡ We aim to work closely with our customers.


1. Our first priority is Safety. 2. 3. To provide a lead to the indigenous Petroleum Industry in finding of solutions the best transport solution. . To enhance and establish a professionally sound identity.Mission Statement«.

Company is working as a semi professional hauler with Shell Pakistan Ltd. . Our working activities are based on different department which lead by professional staff.To hire qualified and professional staff for working To operate business with good and safe vehicles.

chemicals and other selected business. ‡ To participate in the search for and development of other sources of energy. gas.Objectives: Objectives: ‡ To engage efficiently. . ‡ To engage responsibly and profitably in oil. ‡ Meeting customer¶s needs and the world¶s growing demand for energy. energy.

‡ Openness. employees share a set of core values: ± Honesty. . ‡ Pride in what we do do. ± Integrity ± Respect for people ± Belief in the fundamental importance of: ‡ Trust.Values: ‡ Shell Pakistan Ltd. ‡ Teamwork and Professionalism.

To shareholders: 2. To employees: 4. To Society: Society: . recognizes five areas of responsibility. It is the duty of management continuously to assess the priorities and discharge these inseparable responsibilities on the basis of that assessment assessment. 1. To customers: customers 3. To those with whom we do business: 5.Responsibilities: Shell Pakistan Ltd.


´ ³Quality is Fitness for Use.´ .´ ³Superior.What is quality? ‡ Dictionary has many definitions: ³Essential characteristic.´ etc. ‡ Some definitions that have gained wide acceptance in various organizations: ³Quality is customer satisfaction.´ ‡ The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: ³The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.

‡ TQM is a management philosophy that seeks to integrate all organizational functions (marketing. finance. customer service. and production. Productivity improves What Is TQM? Long-term competitive strength Stay in business Capture the market with better quality and reduced cost. engineering. . etc. design. fewer mistakes.) to focus on meeting customer needs and organizational objectives Improve quality Decrease cost because of less rework.

with processes being done right the first time and defects and waste eradicated from operations. attitude and organization of a company that strives to provide customers with products and services that satisfy their needs.History of Total Quality Management ‡ Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. . ‡ The culture requires quality in all aspects of the company's operations. ‡ Total Quality is a description of the culture.

. Total Quaity Management  Customer Oriented  Equality of service and cost  Long term  Prevention  System  Life cycle costs.  Emphasis on detection  Errors In Operations.  Responsible for Quality Control.  Second priority to services and costs. Partnerships.Traditional Mgt  Product Oriented.  Short term decisions.

centered on quality. TQM "TQM is a management approach for an organization.ISO Defined Quality ‡ Quality is excellence that is purpose¶ ‡ ISO 9000:2000 definition of qualityIt is the degree to which a set of inherent characteristics fulfills requirements." ISO 8402:1994 . and benefits to all members of the organization and to society. based on the participation of all its members and aiming at longlongterm success through customer satisfaction.

How is it related to Shell? TQM at Shell .

On site are the service stations. one in Karachi and one in Machi Technical centre which is the refinery located at Kemari . stations. Two/2 Laboratories are there to check the quality. .

.Technical centre which is the refinery located at Kemari.

Dealer owned dealer operated.‡ On site service stations Company owned company operated. . Dealer owned and company operated.


TQM six basic Concepts ‡ ‡ ‡ ‡ ‡ ‡ Leadership Customer satisfaction Employee involvement Performance measures Continuous improvement Supplier partnership .

trust.Leadership ‡ Someone who can take a group of people to a place they don¶t think they can go. . teamwork.( ³I AM A PEOPLE PERSON´). ‡ Royal Dutch shell's CEO VISION as a leader: ³Working with people focuses openness. and the importance of giving individual the freedom and support to get on with the job.

Characteristic of Good leader characteristics of a good leader Balanced commitment Positive role model Good communication skills Positive influence Persuasiven ess .

. 1. 2. Regional manager as leader have following characteristics Balance commitment Role model Good communication skills. 3.

Principles of leadership for Quality .‡ Customer Focus: The SHELL primary goal is to meet or exceed customer expectations in a way that gives the customer lasting value. ‡ Looking for faults in systems TQM manager visits sites to ensure quality and look up for faults ‡ Team work: It observed in a Regional office that regional manger create such an environment that each employee involve in decision making.

Customer satisfaction CUSTOMERS Territory/ TQM managers Regional manager Country mang. CEO .

Customer Perception of quality ‡ Important factors that influenced purchases show the following ranking ‡ Performance ‡ Features ‡ Service ‡ Price ‡ Reputation .

Security is provided in sensitive areas . Comparative pays are provided 5. Rewards 3.Employee Involvement ‡ Motivation utilization of employee involvement to achieve process improvement. Promotions 2. Shell motivates employees in the following ways: 1. Job orientation based on skills 4.


 Continuous Process Improvement Improvement strategies PDSA Cycle Continuous Process Improvement Cycle  Supplier Partnership Sourcing Suppliers of Shell  Performance Measures Objectives Typical Measurements .

‡ Quality based organizations achieve perfection by continuously improving the business and production process. ‡ Shell follows this principle by planning. . controlling and improving its processes.

Improvement Strategies Repair Refinement Renovation Reinvention .


Managing an organization without Performance measure is like a captain of a ship without instruments.Performance Measures The 6th and final principle of TQM is measure. Objectives : Measures are used to attain the following objectives:  Determine which process need to be improved  Indicate process gain and loss  Compare goods with actual performance  Determine the overall performance of the organization .

Supplier Partnership

‡ ‡ ‡ ‡

Key to obtain high quality products Customers and suppliers have same goal Long-term relationship of trust and loyalty Just-in-time concept

Sourcing is the source of supply. It has three types:

1: Multiple
Use of two or more suppliers

2: Sole
Organization is forced to use only one supplier

3: Single
A planned decision by organization to select one supplier for an item when many are available. Shell has multiple sourcing.

Suppliers of Shell .

There are total 7 refineries in Pakistan ‡ PARCO ‡ National oil Refinery ‡ Attack refinery limited ‡ Pakistan refinery ‡ Karachi Refinery limited also known as Bosicor ‡ Indus Refinery limited ‡ Coastal or Khalifa refinery limited(PARCO2) .

Installation through pipelines is the best way of supply which assures the quality as compared to installation through tanks. .


‡ A network of the national standards institutes of 159 countries . ‡ Purpose is to to equalize and standardize across cultures.International Organization for Standardization ‡ Founded on 23 February 1947 ‡ Headquartered in Geneva. Greek word meaning equal. Switzerland ‡ Non-governmental organization ‡ World's largest developer and publisher of International Standards. ‡ Its logo ISO.

ISO Standards ISO's main products are the International Standards. . ISO has developed over 17500 International Standards on a variety of subjects and some 1100 new ISO standards are published every year year.

Of these. two have achieved truly global status and are now thoroughly integrated with the world economy: .Management standards ISO standards that provide requirements or give guidance on good management practice are among the best known of ISO's offering.

ISO 9000 family ‡ The ISO 9000 family addresses "Quality management". . and achieve continual improvement of its performance in pursuit of these objectives. while aiming to enhance customer satisfaction. and applicable regulatory requirements. ISO 9000 standards do not certify the quality of the product or service. This means what the organization does to fulfill: ‡ ‡ ‡ ‡ ‡ the customer's quality requirements. The Quality Management System standards created by ISO are meant to certify the processes and the system of an organization and not the product or service itself.

ISO 14000 family The ISO 14000 family addresses "Environmental management". and to ‡ achieve continual improvement of its environmental performance. This means what the organization does to: ‡ minimize harmful effects on the environment caused by its activities. .

ISO 9001:2000 The requirements for quality management systems. .

ISO 14001:2004 The requirements for environmental management systems .

ISO 50001 ISO 22000:2005 ISO/IEC 27001:2005 IWA 1:2005 IWA 4:2005 ISO 13485:2003 ISO 29001:2000 ISO 30000 ISO 28000:2007 .Specific Applications Sector Automotive Education Energy Food safety Information security Health care Local government Medical devices Petroleum and gas Ship recycling Supply chain security Standard or series of standards ISO/TS 16949:2002 IWA 2:2007 PC 242.

Understand the Basics ± What management standards are????????? ‡They are generic ‡Provide a model to follow ‡The Plan ± Do ± Check ± Act (PDCA) cycle is the operating principle of ISO's management standards standards. .

Certification Certification refers to the issuing of written assurance (the certificate) by an independent external body that it has audited a management system and verified that it conforms to the requirements specified in the standard. .


. and ‡ Contractual.ISO 9001:2000 Certification ‡ The scope of the QMS should be based on: ‡ The nature of the organization's products and their realization processes ‡ The result of risk assessment ‡ Commercial considerations. statutory and regulatory requirements.

 Systematically managing customer relationships.  Communicating customer needs and expectations throughout the organization.  Ensuring a balanced approach between satisfying customers and other interested parties (such as owners.  Measuring customer satisfaction and acting on the results. suppliers.  Ensuring that the objectives of the organization are linked to customer needs and expectations. employees. . financiers.ISO 9001:2000 Certification Customer Focus  Researching and understanding customer needs and expectations. local communities and society as a whole).


.QMS: Quality Management System A quality management system tin accordance with ISO 9001:2000 will provide your organization with a set of processes that ensure a common sense approach to the management of your organization.



.ISO9001:2000 ‡ It is a generic name given to a family of standards developed to provide a framework around which a quality management system can effectively be implemented.

Implementing QMS
‡ Purchase the standard. ‡ Train the workforce accordingly. ‡ Practical implementation. ‡ Review process.

Flowchart of the Audit Process
Visit to the service station

Check quality and quantity from every nozzle at the station.

Precise one liter quantity Yes No Check quality from lab Yes No Service station meets the standards

Anyone of the following corrective actions is taken depending on the severity of the non conformity. 1) Warning and probation period 2) Penalty of Rs. 25,000 to Rs. 100,000 3) Closing of the station

Benefits and Criticism of ISO
1. 2. 3. 4. 5. 6. 7. 8. Policies and objectives set by top management. Understanding of customers requirements and ensuring customer satisfaction. Improved internal and external communication. Greater understanding of organization¶s work. Clear responsibility and stated authority. Improved use of time and resources. Improved motivation and morale. Greater consistency and traceability of products and services.

unCompetition among certifying bodies leads to defects. Very expensive to register. 7. 6. Some standards are very un-realistic for new organizations. No real watchdog agencies to overview the implementation. Practical implementation is difficult. Takes a lot of time to get registered. The company some times is just interested in certification rather than improvement. . 5. 3. 4. 2.Criticism 1.


‡ .

Comparison With Respect To ‡ Performance Perspective ‡ Environment Perspective ‡ Quality Perspective .

Performance Perspective Pso ‡ Authentic performance evaluation ‡ Feedback ‡ Constitutes an integral part of the appraisal management system ‡ Performance aligned with goals and objectives ‡ Awards offered to employees on yearly basis Shell ‡ Authentic performance evaluation ‡ Feedback ‡ Performance aligned with goals and objectives ‡ Awards offered to employees on 6 month basis .

Environment Perspective Pso ‡ Employee Recognition ‡ To boost the morale of employees ‡ Acknowledges employees qualities beyond the call of duty performance ‡ Motivation Survey ‡ Recognize the ± ± ± ± needs opinions concerns perceptions of the employees Shell ‡ Employee Recognition ‡ To boost the morale of employees and to ensure that their efforts are appreciated ‡ Go beyond the limits to make sure the employees of the organization get what they must deserve and expect ‡ Motivational Seminars and Activities ‡ Recreational Trips ‡ International Tours ‡ All organizational changes are announced ‡ Communication ‡ Interactive sessions are held regularly .

‡ Fixed Jobs in a certain Department ‡ No Job rotation ‡ High ethical standards ‡ Not necessarily maintained ‡ Employees get stuck to one type of job ‡ No fixed jobs ‡ Job rotation facility provided to all levels of employees ‡ Employees can switch from one department to another if they want ‡ Training workshops held to ensure that they are at their best when they do so! ‡ High ethical standards maintained at every cost! .

PSO ranks ‡ The machinery and equipment is not the best in the industry ‡ There are standards for the maintenance of the sites ‡ But.Quality Perspective Pso ‡ Currently. not necessarily followed ‡ Hygienic conditions could really be improved! 4th! Shell ‡ SHELL ranks the 1st! ‡ Has been so for 5 years in a row ‡ The latest machinery and equipment ‡ Pipelines system is highly equipped ‡ Site maintenance has never been compromised ‡ Strict policy for the hygienic conditions of the filling stations .

Benefits of TQM ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Improved Quality Employee Participation Teamwork Customer satisfaction Productivity Effective communication Profitability Enhanced Market share .


Pitfalls ‡ TQM initiatives have been prone to failure because of common mistakes. These include: ‡ allowing external forces and events to drive a TQM initiative ‡ an overwhelming desire for ± quality ± awards ± certificates ‡ organizing and perceiving TQM activities as separate from day-to-day work responsibilities ‡ senior management underestimating the necessary commitment to TQM .

and production. etc. customer service.Conclusion!!!! ‡ SHELL.) to focus on meeting customer needs and organizational objectives . TQM is a management philosophy that seeks to integrate all organizational functions (marketing. design. engineering. founded in 1886 is now one of the biggest giants in the business ‡ Shell Pakistan sticks to the vision of delivering the best in the quality ‡ Customer satisfaction comes above all else ‡ Total Quality Management. finance.

different filling sites and can conclude that the organization has really made it its mission to deliver the very best in quality to the nation! ‡ Its not always that easy to live up to the expectations ‡ TQM was implemented in Pakistan in 1993 ‡ Different officials of the organization stressed this point and maintained that its what they have always tried to achieve .‡ Shell Pakistan has made this its mission ‡ We visited the office building.

Shell at number 2 in Pakistan ‡ Large governmental support to PSO ‡ Pakistan economic and political crisis .

To put the people above and beyond anything´  ³We must acknowledge that the organization has a duty to perform and that is what we would do! For us.‡ I would like to share with you all some statements made by the CEO of Shell  ³Shell is acknowledged as one of the largest global businesses of the world. we have to maintain what has made us what we are today! We must devote ourselves to providing the very best in the quality to all of out customers. Being so. the people. the environment. the safety would come before anything else!´ .

Shell should try to make its place such that no other organization could affect the way it does its operations . as PSO is a government operated organization. and in some way by PSO.Recommendations ‡ ‡ ‡ ‡ Employee competence The organization should tent to make itself even more competitive The organization¶s officials were not that cooperative! The organization should strive to and play its role in setting the prices of petrol at a lower value! ‡ The organization is somewhat being dictated by OGRA.

We have carefully studied shell quality management system and conclude that: .


Thank you for your attention & any questions? .

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