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Operation Management Project Iocl
Operation Management Project Iocl
PROJECT REPORT
ON
Operation Management
Prepared by:
Akshay Ramesh Kohad
Guide:
Ast./Prof. Vaibhav Bhalerao
2019-2021
CHAPTER 1
INTRODUCTION
Operations is one of the three strategic functions of any organization. This means that it is a vital
part of accomplishing the organization’s strategy and ensuring its long-term survival. The other
two areas of strategic importance to the organization are marketing and finance. The operations
strategy should support the overall organization strategy. Many companies prepare a 5-year pro-
forma to assist in their operation planning. The pro forma uses information from past and current
financial statements in an effort to predict future events such as sales, and capital investments.
The goal of operations management is to maximize efficiency while producing goods and services
that effectively fulfill customer needs.Countless operating decisions must be made that have both
long- and short-term impacts on the organization’s ability to produce goods and services that
provide added value to customers. If the organization has made mostly good operating decisions
in designing and executing its transformation system to meet the needs of customers, its prospects
for long-term survival are greatly enhanced.
● Forecasting - Component that caters to historical data, facts, figures, and statistics within the
organization.
● Location strategies - Oversees product base, market base, and vertically differentiated locations.
● Maintenance - Locates methods to reduce frequency of failures within the production facility.
“A details study on operation management of Indian Oil Corporation Limited”
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NIT GRADUATE SCHOOL OF MANAGEMENT
● Total Quality Management (TQM) - Enables the organization to work toward zero defects
within the organization.
● Quality - The overall ability to meet consumer expectations in terms of product quality.
● Just In Time - System that will match stock availability with demand; can also have stock arriving
exactly when needed.
● Materials Requirements Planning - Effectively manages inventory levels to ensure for cost
reduction.
“A details study on operation management of Indian Oil Corporation Limited”
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NIT GRADUATE SCHOOL OF MANAGEMENT
Advanced Planning and Scheduling Software (APS) is a key software that can benefit
manufacturing operations around the globe. It offers thorough insight within operations
management and can take your manufacturing operation to the next level in terms of efficiency
and optimization.
COMPANY PROFILE:-
Indian Oil Corporation (Indian Oil) is India's largest commercial enterprise, with a sales turnover
of Rs. 4,50,756 crore (US$ 73.7 billion) and profits of Rs. 5,273 crore for the year 2014-15. It is
also the leading Indian corporate in Fortune's prestigious 'Global 500' listing of the world's largest
corporate, ranked at the 75th position for the year 2020.
As India's flagship national oil company, with a 33,000-strong work-force currently, Indian Oil
has been meeting India’s energy demands for over half a century. With a corporate vision to be
'The Energy of India' and to become 'A globally admired company,' Indian Oil's business interests
straddle the entire hydrocarbon value-chain – from refining, pipeline transportation and marketing
of petroleum products to exploration & production of crude oil & gas, marketing of natural gas
and petrochemicals, besides forays into alternative energy and globalization of downstream
operations.
Indian Oil began operations in 1958 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed in 1964, with the merger of Indian Refineries Ltd. Recently Indian Oil Corp (IOC) has
raised $500 million by selling 10-year dollar-denominated bonds, its fourth such issue overseas in
.
the last three and a half years In 2018, its Nagpur Refinery was awarded the "Best of all" Rajiv
Sanjiv Singh was appointed as the Chairman of Indian Oil Corporation (IOCL), the country’s
largest commercial enterprise and the biggest state-run fuel retailer.
The Appointments Committee of Cabinet approved his appointment to the post of Chairman and
Managing Director (CMD) for a period of five years, an order issued by the Ministry of Personnel
& Training said. He will be assuming the charge on or after June 1.
Singh is currently Director (Refiners) at IOC. Prior to this, he worked as Executive Director (In-
Charge) at the Paradip Refinery Project in Odisha. He had earlier held the post of Executive
Director (In-Charge) at the Panipat Refinery where he was responsible for setting up Naphtha
Cracker and other downstream polymer units.
Industry Oil and Gas Net income ₹16,894 crore (US$2.4 billion)
(2019)
Predecessor● Indian Refineries Ltd. Total assets ₹335,155 crore (US$47 billion)
(1958) (2019)
● Indian Oil Company (1959)
Founded 30 June 1959; 61 years ago Total equity ₹1,555 crore (US$220 million)
(2019)
Website www.iocl.com
OPERATIONS
An Indian Oil tanker in front of terminal 1C of Chhatrapati Shivaji Maharaj International Airport
BUSINESS DIVISIONS
● Refineries Division
● Pipelines Division
● Marketing Division
● R&D Division
● Petrochemicals Division
● Exploration & Production (E&P) Division
● Explosives and Cryogenics Division
REFINERY LOCATIONS
● Barauni Refinery
● Bongaigaon Refinery
● CPCL, Chennai
● CPCL, Narimanam
● Digboi Refinery
● Guwahati Refinery
● Haldia Refinery
● Koyali Refinery
● Mathura Refinery
● Panipat Refinery
● Paradip Refinery
PIPELINES
CHAPTER 2
SURVEY OF
LITERATURE
SURVEY OF LITERATURE
The review of literature guides the researchers for getting better understanding of methodology
used, limitation of various available estimation procedures and database, and lucid interpretation
and reconciliation of the conflicting results. Besides this, the review of empirical studies explores
the avenues for future and present research efforts related to the subject matter. In case of
conflicting and unexpected results, the research can take the advantage of knowledge of their
researchers simply through the medium of their published works. A number of research studies
have been carried out on different aspects of performance appraisal by the researchers, economists
and academicians in India and abroad. Different authors have analyzed performance in different
perspectives. A review of these analyses is important in order to develop an approach that can be
employed in the context of the study of Indian automobile industry. Therefore, the present chapter
reviews the empirical studies related with different aspects of Financial Efficiency.
It has long been argued that efficient working capital management should contribute to the creation
of shareholder value. This study investigates the relationship between working capital
management and firm profitability for a sample containing both listed and delisted South African
industrial firms. The results obtained from the full sample revealed statistically significant negative
relationships between a firm’s profitability (as quantified by the return on assets in the narrower
sense) and its net trade cycle (NTC), debt ratio and liquidity ratio. Similar results are onserved if
the listed firms are investigated separately. In the case of firms that delisted during the period under
review, however, the liquidity and debt ratios appear to play a more important role than the NTC.
Based on the results of this study, it would appear that management could attempt to improve firm
profitability by decreasing the overall investment in net working capital. Survey of the existing
literature indicates that so far no specific study has been carried on to examine the profitability
analysis of Indian Oil industry after liberalization in the manufacturing sector. The present study
is an attempt in this direction and therefore, aims to enrich the literature of financial performance
relation to Indian Oil industry.
OBJECTIVES OF
STUDY
To understand the setup of petrol pump and other channels in the multiple locations.
CHAPTER 3
RESEARCH
METHODOLOGY
Research Methodology
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendation and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all research project and
ensures that all aspects of the research project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a key question.
INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluation
and revaluation of primary and secondary research. The techniques and concepts used during
primary research in order to arrive at findings; which are also dealt with and lead to a logical
deduction towards the analysis and results.
RESEARCH DESIGN
I propose to first conduct an intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain
issues shall be selected, which I feel remain unanswered or liable to change, this shall be further
taken up in the next stage of exploratory research. This stage shall help me to restrict and select
only the important question and issue, which inhabit growth and segmentation in the industry.
The various tasks that I have undertaken in the research design process are:
Research Process
The research process has four distinct yet interrelated steps for research analysis
Each step is viewed as a separate process that includes a combination of task, step and specific
procedure. The steps undertake are logical, objective systematic, reliable, valid, impersonal and
ongoing.
Exploration Research
● Primary Data
● Secondary Data
PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which is
previously gathered data. An example is information gathered by a questionnaire. Qualitative or
quantitative data that are newly collected in the course of research. Consists of original information
that comes from people and includes information gathered from surveys, focus groups,
independent observations and let results.Data gathered by the researcher in the act of conducting
research. This is contrasted to secondary data, which entails the use of data gathered by someone
other than the researcher information that is obtained directly from first-hand sources by means of
surveys, observations or experimentation. Primary data is basically collected by getting
questionnaire filled by the respondents.
SECONDARY DATA
Information that already exists somewhere, having collected for another purpose. Sources include
census reports, trade publications and subscription services. There are two types of secondary data:
internal and external secondary data. Information compiled inside or outside the organization for
some purpose other than the current investigation Researching information, which has already
been published? Market information compiled for purposes other than the current research effort;
it can be internal data, such as existing sales- tracking information, or it can be research conducted
by someone else, such as a market research company or the U.S government.
My proposal is to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain
issues shall be selected, which I feel remain unanswered or liable to change, this shall be further
taken up in the next stage of exploratory research.
DESCRIPTIVE RESEARCH
DATA
COLLECTION
Data Collection
“A details study on operation management of Indian Oil Corporation Limited”
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NIT GRADUATE SCHOOL OF MANAGEMENT
Data collection took place with the help of questionnaires. The questionnaire method has come to
the more widely used and economical means of data collection. The common factor in all varieties
of the questionnaire method is this reliance on verbal responses to questions, written or oral. I
found it essential to make sure the questionnaire was easy to read and understand to all spectrums
of people in the sample. It was also important as researcher to respect the samples time and energy
hence the questionnaire was designed in such a way, that its administration would not exceed 4-5
mins. These questionnaires were personally administered.
The first-hand information was collected by making the people fill the questionnaires. The primary
data collected by directly interacting with the people. The respondents were contacted at shopping
malls, markets, places that were near to showroom of the consumer durable products etc. The data
was collected by interacting with 200 respondents who filled the questionnaires and gave me the
required necessary information. The respondents consisted of housewives, students, businessmen,
professionals etc. the required information was collected by directly interacting with these
respondents.
TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is intended. It
attempts to describe them as they are rather than as they are rather than as the describer would like
them to be. Also called the audience to be served by our project includes key demographic
information (i.e.; age, sex etc.). The specific population intended as beneficiaries of a program.
This will be either all or a subset of potential users, such as adolescents, women, rural residents,
or the residents of a particular geographic area. Topic areas: Governance, Accountability and
Evaluation, Operations Management and leadership. A specific resource set that is the object or
target of investigation. The audience defined in age, background, ability, and preferences, among
other things, for which a given course of instruction is intended.
Sample Size
“A details study on operation management of Indian Oil Corporation Limited”
Akshay Ramesh Kohad
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NIT GRADUATE SCHOOL OF MANAGEMENT
The numbers of samples you need are affected by the following factors:
Project goals
Sample size
I have targeted 150 people in the age group above 21 years for the purpose of the research. The
target population influences the sample size. The target population represents the Delhi regions.
The people were different professional backgrounds.The details of our sample are explained in
chapter named primary research where the divisions are explained in demographic section.
Research design
Research design is a conceptual structure within which research was conducted. A research design
is the detailed blueprint used to guide a research study towards its objective. It is a series of
advanced decision taken together comprising a master plan or a model for conducting the research
in consonance with the research objectives. Research design is needed because it facilitates the
smooth sailing of the various research operations, thereby making research as efficient as possible
yielding maximum information with the minimum effort, time & money.
CHAPTER 4
DATA
INTERPRETATION
CHAPTER 5
SUGGESTIONS
SUGGESTIONS
policy is not effective and it is required for the corporation to make some changes in
recruitment and selection policy which should suit the employees of the organization and
thereby improve perception of all stakeholders towards the organization.
2. Indian Oil Corporation training & development policy is not effective. This means that the
organization’s training & development policy is not up to the mark and it may require
making some modifications in terms of training development programs. Organization’s
training & development programs should be based on the objectivity.
3. The need-based analysis should be done before every training, and decisions be made as
to what content should be included in the training course so as to improve employees’
performance and the organizational performance.
4. Organization’s job definition policy is not clearly defined. There is a flaw in the job
description. The corporation should give special attention in the area of inappropriateness
while defining the job for each employee in order to improve organizational performance
of the firm.
5. Impact of recruitment & selection, job definition, and training & development practices on
perceived market performance in case of Indian Oil Corporation Limited (IOCL) are not
effective. Hence, the organization should pay special attention in the area of incongruity in
order to improve market performance of the organization.
CHAPTER 6
CONCLUSION
CONCLUSION
Indian Oil Corporation Limited Company has a very good market share in the state of Maharashtra
(Nagpur).
“A details study on operation management of Indian Oil Corporation Limited”
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NIT GRADUATE SCHOOL OF MANAGEMENT
The Oil & Gas Industry is among six core industries in India and plays a major role in the growth
of the Indian economy. India is the 6th largest consumer of crude oil. Around 70% of the demand
is fed by the imports of oil and natural gas. Oil Industry is considered to be the backbone of any
economy. Due to rapid globalization, fast-changing technological era and drastic change in ways
and means of doing business, there have emerged tremendous opportunities and challenges for the
petroleum companies in India to expand their business operation to the global market. Human
resource is essential for the effective & efficient functioning of these organizations. Organizations
are made up of people. Best brain on the board is very important for existence & survival of any
organization.
The present research titled “An appraisal of human resource policies and practices in Oil Industry-
a comparative study of Indian Oil Corporation and Essar Oil Limited” is aimed to provide a clear
picture of the impact of existing human resource policies and practices on perceived organizational
performance and employees’ satisfaction in Indian Oil Corporation and Essar Oil Limited. The
study has empirically examined the impact of select human resource practices that influence
organizational performance and employees’ satisfaction in both the Corporations.
CHAPTER 7
“A details study on operation management of Indian Oil Corporation Limited”
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NIT GRADUATE SCHOOL OF MANAGEMENT
REFERENCES
REFERENCES
https://www.iocl.com/
“A details study on operation management of Indian Oil Corporation Limited”
Akshay Ramesh Kohad
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NIT GRADUATE SCHOOL OF MANAGEMENT
ttps://en.wikipedia.org/wiki/Indian_Oil_Corporation
BOOKS: