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HINDUSTAN PETROLEUM

CORPORATION LIMITED

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ACKNOWLEDGEMENT

We are greatly thankful to Prof. Hitendra Lachhwani for guiding


us throughout our MIS project. His expertise is also of great help
to our project.

We are also thankful to the SR.INSTALLATION MANAGER MR.J.M


NAIK and the staff of KANDLA TERMINAL [HPCL] for all their
cooperation and for their support for making our project.

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CONTENTS
1.

2. INTRODUCTION..........................................................................2
3. MISSION, VISION AND QUALITY POLICY.......................................2
4. STRUCTURE OF ORGANISATION OF DIFFERENT DEPARTMENT.......2
5. THE FUNCTIONS AT DIFFERENT DEPARTMENTS ARE AS UNDER:-...2
6. INFORMATION FLOW..................................................................2
7. TRANSPORTATION MODES..........................................................2
8. REPORT SYSTEM........................................................................2
9. INFORMATION TOOLS.................................................................2
10....DECISION TAKEN AT EACH LEVEL AND INFORMATION REQUIRED
FOR THAT ARE AS FOLLOWS:......................................................2
11.......................................................................SECURITY SYSTEM
.................................................................................................2
12..........................................RECOMMENDATION AND SUGGESTION
.................................................................................................2

INTRODUCTION
HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) is a Government
of India Enterprise with Navratna Status. Its an oil industry which was
found in 1974. HPCL is a Fortune Global 500 company and is the 10 th Most
Valued Brand in India. HPCL is having 20% Marketing share in India
among PSUs (PUBLIC SECTOR UNITS) and a strong infrastructure. It
operates 2 major refineries producing a wide variety of petroleum
products: one in Mumbai, Maharashtra (west zone) which is also the Head
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Office of HPCL and second in Vishakhapatnam (east zone) .It holds equity
stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL).
The Marketing network of HPCL consists of 13 Zonal offices in Major cities
and 101 Regional offices. On the financial front the turnover has grown
from Rs.2687 crore in 1984-85 to impressive Rs.132670 crore in financial
year 2010-11.HPCL also owns and operates the largest Lube refinery in
India producing Lube Base oil of International Standards. This Lube
refinery accounts for over 40% of the Indias total Lube Base oil
production. HPCL is constructing refinery at Bathinda, in the state of
Punjab, as a Joint venture with Mittal Energy Investment Pte. Ltd.
Its business units includes-Refineries, Aviation, Bulk-fuel, LPG, Lubes,
Retail, Trade, Joint ventures and E&P (exploration and production).
The main petroleum products of HPCL include:
1. PETROL Petrol is known as Motor Spirit (MS) in oil industry, which is
marketed through its retail pump and is regularly used in personal
vehicles.
2. DIESEL -Diesel is known as High Speed Diesel (HSD) in oil industry.
This product is marketed through its retail pumps as well as terminal
and depots .Its consumers are not only auto owners but also
transport agencies, industries etc.
3. LUBRICANTS HPCL is the market leader in lubricants and the
associated products. The product commands over 30% of the Market
Share in this sector. The popular brands of HP lubes are Laal Ghoda,
Milcy, Thanda Raja, Koolgard etc.
4. LPG LPG is Liquefied Petroleum Gas which is used for household
purpose basically as a cooking gas and its in liquid form.
5. AVIATION TURBINE FUEL ATF services is provided at various
airports in India for more than half century. HPCL facilitates to supply
to JET A1 at Indian Ports.
6. FURNACE OIL - Its black oil which is used in ships.
The KANDLA TERMINAL is basically involved in receiving, storing and
distribution of the Finished Products like MS, HSD, Furnace oil and lubes.
In Kandla Terminal there are total 24 tanks in the terminal in that 3 tanks
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are underground and the rest 21 tanks are above ground and there is
specific tank for every specific product.

MISSION, VISION AND QUALITY POLICY


MISSION: The mission of HPCL is to enhance their productivity,
profitibity and quality of the products so that they can be the No.1 in
Oil Industry by taking into care the cultural heritage and the
environment and the customers and employee.
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VISION: The vision of HPCL is to be World Class Energy Company to


be known for its caring and delighting its customers with good
quality products in domestic and international market. The company
will be excellence in social commitments, environment, employee
welfare and relations, health and safety norms.

QUALITY POLICY: The Company is committed to deliver Quality


Petroleum Products to the costumers on time, every time in order to
achieve Total Customer Delight. As its important for all companies
to obtain customers satisfaction.

STRUCTURE OF ORGANISATION OF
DIFFERENT DEPARTMENT

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THE FUNCTIONS AT DIFFERENT


DEPARTMENTS ARE AS UNDER:1)Planning& Operational department
2)Maintenance& Purchase department
3)Finance department
4)Human Resource department
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5)Safety& Security department

1)
Planning&
Operational department: - Planning is the first and
foremost activity of any organization. Rest all activity
are depended upon it.
No organization can survive for a long period without
proper planning of the different undertaking at a
different department. At every stage planning has to
be done. First of all planning is made relating to the
goal of an organization and accordingly the department
at a different level plan and accomplishes the goal.
In the same way at HPCL also according to the
requirement of the dealer and consumption they plan
for the future requirement. Again here also they should
be aware of the stock which is available with them in
the tanks, order received from customer, goods in
transit etc.
Their planning again depend upon the retail outlet i.e.
their petrol pumps, what is the quantity available with
them, how much order is received, how much they are
going to receive the product from head office etc. Here
again they keep in mind the total market of the region,
like other retail outlets turnover their share in the
market and at what rate the requirement will increase.
Here planning changes every month. Over here in this
organization the normal capacity of the tank is 12300
KL based on this product is received and supplied.

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2)
Maintenance&
Purchase
department:Maintenance is also a prime activity for any organization.
At HPCL also they need to go through the same. Here
also maintenance is required for the fuel tank, pipe lines
both within the organization and also of those which are
coming from Kandla port to HPCL, water tanks, motors,
other machinery etc. The fuel tank is used for 5 years for
storage and then after every 5 years maintenance is
done for it. For that they need to empty the whole tank
and undertake the whole maintenance works which
include checking the thickness of the plate form outside,
inside, downward, checking of any leakage or weak area
of the tank, painting etc. There are two manholes in the
tank which is kept open for some days so that the gas
which is present in it gets exhaust in air. Also there are
huge numbers of motors of 50 to 150 hp which also
require maintenance at regular interval of time. Pipe lines
also need maintenance because the whole activity is
depend upon it only that is flow of fuel from one place to
another. Leakages and weak area are identified and
repaired.

2)
Finance
department: - Finance department is maintaining the
accounts, for income, expenditure, payment of custom
and excise duties, billing for cash and credit sales etc.
Whatever the requirements are there in the different
departments first of all they communicate to the
finance department and as per the availability of fund
they inform to the relevant department. The company
can incur an expenditure of Rs.20000 per day for the
relevant requirement without any prior approval from
head office, and beyond Rs.20000 expenditure they
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need to go through the certain procedure and approval


of head office.

3)
Human
Resource department: - The task of human resource
department is to provide the man power to the
different departments. There are requirement of
different employees, labors, some technical experts
etc. The management according to the requirement
asks to the department to make arrangement for the
same. The recruitment process is also undertaken at
this stage, right from the receiving application to the
final selection and the placement of employees. As and
when there is a requirement of man power at different
levels of the department, there works start right from
allotting task, timing, specialization etc.

4)

Safety& Security department: - Safety here is the


most important key of the organization. Even a minute
mistake can turn into the big disaster. So various safety
methods are adopted to avoid such situation. Like right
from the entering into the premises of HPCL there is a
strict restriction on carrying cell phones, match box,
cigarettes, and any gadgets that can lead to sparks etc.
For employees also different safety arrangements are
taken. While going to their respective job they used to
wear safety helmet, Safety gloves, safety shoes etc and
work is undertaken by the experts supervision. They
need to keep check on the electricity part also as it also
may turn disastrous, for that voltage input and output is
taken into the account. Fire extinguishers are kept in
abundance quantity everywhere. There is a siren also
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which immediately informs to the employees if any fire


breaks out. There are two water tanks available in the
premises.

INFORMATION FLOW
Informational flow plays an important part in an organization to
communicate easily with other departments and get proper, correct and
easy way to work in big organization such as HPCL.
In HPCL the information flows from top management to lower
management like a SUPPLY CHAIN MANAGEMENT so that the
process of information spread easily in organization. The product is
send by head quarter and HO work as a top management they pass it
on information about the product to the planning and operational
department about it.
I.

How much quantity of the product is coming?

II.

Which product is coming?

III.

In which ship/vessel its coming?

IV.

At what time its going to reach the destination port?

This information is send by head quarter to planning and Operational


department then its flow by planning and operational department to
port so that they easily get there product at proper time .Then after
receiving the information from HO the work of Planning and
Operational department is to pass the information to finance
department that HO has sent the product through vessel so do all the
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formalities of port, now here planning and operational flow the


information to the port authorities also at same level so that port
authorities get the information that at what time the vessel is coming?
In which ship its coming? After that the port communicates to finance
department that fulfill all the formality of Custom so that product get
easily departed from vessel to pipeline for the terminal.
After that port authorities again communicate to planning and
operational department before 1 hour by sending mail that they are
now starting to pump the product through pipeline. After receiving the
mail Planning and Operational department again communicate, after
receiving the product they mail to Port authorities that we receive the
product. After Human Resource department is ready with the workers
who are taking care of the product is send to the correct terminal
which is allotted for the specific product and see that the tank is not
over loaded by the product if there is sufficient product in the tank
then its a responsibility of the employee to keep that product in the
pipeline only, so that product is properly adjusted in the tank and not
be access in the tank so that it does not burst in tank. Then human
resource department also flow the information to the Maintenance and
Purchase department before storing the product in the tank. Its a
responsibility of the Maintenance department that the tank is not
having any problem in storing the product and see that product is
properly adjusted in the tank. After that Maintenance department is
responsible to communicate with the Safety and Security department
that when the workers are working in the terminal area the worker are
suppose to wear safety helmet and safety boots also so that all the
mishaps are avoidable and they insure their workers are on safe side.
In this terminal the type of network use to communicate is BUS
TOPOLOGY.
In this way the information flows smoothly in these much different
department.

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TRANSPORTATION MODES
There is only one mode of transportation for receiving the product for the
storage in terminal that is as follows:
Vessel system
Explanation:
Vessel system: Head quarter send the product through vessel
because the product is easily received to the terminal through it.
Then through the pipeline it is directly connected to ports and with
terminal. So when the ship reaches the port there is pre decided
jetty where the ship placed and from that it is connected to the
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terminal pipeline then from there the pumping of product starts and
after that it directly reaches to the specific tank in terminal.
There are three way of transportation mode for the distribution of the
product which is stored in the warehouse. They are as follows:
Tank truck(TT)
Tank wagons
Aviation facilities
Explanation:
Tank truck: For distribution of product in local market or in retail
market the mode of transportation mostly used is tank truck. They
load optimum level capacity of the tank truck so that it is easily
distributed and can be carried safely to different locations. Mostly
the trucks have the capacity of 20 KL (20,000 Liters). In that there
are four compartments, in which different products can be filled in
each department or same product can be filled as required.

Tank wagon: If the product is distributed from one state to another


then tank wagon are used as a mode. Tank wagons facilities are
provided by Railway and it is compulsory that 49 tank wagons are
departed at one time. The capacity of 49 tank wagon is to take 3000
KL (30, 00,000LTRS) at one time. It is also used mostly for
distribution of the product.

Aviation facilities: This facility is also provided by the Kandla Port


terminal if in some emergency the product is to be sent on urgent
basis then the aviation facility is used to send the product and it is
mostly used to distribute the product to Mundra Port. This facility is
least used for distribution of the product.

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REPORT SYSTEM
Report system is also the easy and formal mode of communication in an
organization. If any information is send to HO regarding to the
organization then it is to be send through reports only. There are 5 type of
report system is to be used they are as follows:
Stock monthly report
Stock daily report
Sales report
Purchase report
Monthly Distribution Plan
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EXPLANATION:
Stock monthly report: This report says about the monthly stock
kept for the product. It keeps the record of how much product is
there, how much is needed, how much can be stored and how much
left after supply done at the end of the month. The report is send to
HO by the planning department.

Stock daily report: This report says about the daily stock kept for
the product. It keeps the record in day to day supply of the product,
daily how much sale done and sees how much product remaining
after the supply. The report is send to HO on a daily bases.

Sales report:This report is made of sales done of the product to


different dealers by truck tank, tank wagon and aviation facilities.
How much to be done, to whom and when.

Purchase report/receivable product report: In this report the


detail of product is mentioned that how much goods received in the
terminal when the product received the approximate gauging is
done and get noted after when the product settles in the tank proper
gauging is done and after that report is send to HO.

Monthly distribution plan (MDP): This report is done by HO so


that departments are informed about the stock, distribution of the
product and about how much the product going to be received in the
whole month so the all the employees set their target by seeing the
monthly plan.

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INFORMATION TOOLS

INFORMATION TOOL: -At HPCL different information tools are used


to communicate within as well as to communicate with outside
people. Few information tools are as under:Page 17

E-mail:- E-mail work as an information tool in the organization it is


been used between HO and manager to pass the information about
what is going on in the organization on daily bases and on monthly
bases also.

Internet: -Internet facilities have made the flow of information easy.


With the help of internet vehicle monitoring system (VMS) is used
toget the exact information of location of Truck Tank (TT) so that the
theft of fuel and other illegal activities are avoided and the customer
can get the delivery on time. Also a lock along with the sensor is fit
on the every compartment of the truck tank so that if someone try
to open that it he can be caught red handed. Not only that sensor is
installed at the drivers place to monitor the speed at which truck
tank is moving, whether it is in the right direction or deviating from
the track.

Manual Identification System: -Here some informations are


taken manually by employees. Like measuring the fuel in the tank,
temperature of the fuel, water level in the tank .In manual
identification system there is specific tool they are using that is
measurement copper tap and copper gauging.

Hindustan portal: -There is an internet facility at the HPCL which is


used by their employee to get them updated. In this system
information relating to employees at different department with their
job profile is available.

Indent Management system: -This is a unique system used by


the HPCL. Information flows through this system. In this system the
purchaser place the order through mail to the supplier and supplier
again mail to the purchaser that we receive your order and then
supplier send him to the date and time when purchaser going to
receive the product.

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SMS: -Orders are received through SMS and executed to save the
time of both customer as well as organization.

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DECISION TAKEN AT EACH LEVEL AND INFORMATION


REQUIRED FOR THAT ARE AS FOLLOWS:
In such a big organization like HPCL the decision is mostly taken by
head quarter because in kandla port terminal the product is only
stored and HO only decide that where the product is distributed?
How much is distributed?
The information also flow from HPCL terminal to HO about the
product that how much stock is there if there is access in stock then
they give information to HO that please dont send the product
because we have maximum stock in the terminal now the HO take
the decision where to send the product and in which terminal of
there they send the product.
Here the department only takes the decision to distribute the
product to the local retailer whether to sell or not. And whether to
allow them any discount.
They also deal with local purchaser in the market they take the
decision that which purchasers are given first preference to
distribute the product and that decision is taken by planning and
operational department. Here the concept of CUSTOMER
RELATIONSHIP MANAGEMENT SYSTEMapplies.
They also take decision regarding safety and security by their own
when any tank truck enter into the premises they take all the detail
and that information flow ahead.

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SECURITY SYSTEM
The safety policy of this company is:
1) Carry out the work in safe manner protecting the people and property.
2) Also ensure awareness among the employees, contractors and others
for all responsibility and accountability for safety on and off at work
premises.
Many security things are kept to prevent from disaster. As inflammable
product is stored at this terminal so protection and safety is required. First
of all it should be mentioned about the FIRE SIREN. This siren is made
when the day starts and when the day comes to an end. If the siren is for
30seconds that means the office hours are complete for the day and if
this siren rings more than 1 minute then it means that there is a fire in
the organization.
For any visitor to the company, the security guards at the entrance
checks the visitors bag if he/she carries, cell phones are not allowed to
be carried to the organization because due to the spark in the cell phone
there can be chances of fire in the organization. Then the information like
visitors name, entry time, exit time, place from where they have come,
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reason for what they have come and signature of the visitor are recorded.
Then they are provided with visitor badge for the entry to the company.
Earthing is also one type of security provided for avoiding static
electricity. The company provides flame proof torch, lock of brass, flame
proof walkie-talkie and wooden spanners.
If suddenly fire occurs then to handle it two water tanks are there, fire
engines, foam containers and sprinklers. There are PPEs (Personal
Protective Equipments) also to protect the employee such as safety
helmet, safety shoes, safety gloves and fire proximity suit.
There is also a fire clock at entrance gate representing the various places
in the terminal and the arrow in it (hand) should always be in safe zone in
normal condition.
To monitor the location of tank truck the WIRELESS SENSOR
NETWORK is used which is placed on it for the security of the product.

RECOMMENDATION AND SUGGESTION

As this terminal of the organization is mainly working manually so it


should be converted into fully automation, to make the work done
quickly, easily, efficiently and smoothly. The automation will help this
terminal to take the decision effectively and it will also help the
information flow.

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