Group Members: Kashif Khurshid

Ali Umer
Nisar Ahmed
Talha Ayub
Adnan Haider
Course: OPSCM
Course Instructor: Sir Mehdi Abbas
 Report on Visit to Shell Lubricant Oil Blending Plant in
Karachi (LOBL)

Introduction:
On 2 June 2023, our team had the privilege of visiting the Shell Lubricant Oil Blending Plant
(LOBL) located in Karachi, Pakistan. Mr. Sami, the Admin Head of the plant, who provided a
comprehensive safety briefing and us with safety equipment warmly, welcomed us. Thanks to his
guidance and support, we were able to explore the plant's operations safely. The purpose of our
visit was to gain a comprehensive understanding of the day-to-day processes involved in
blending, bottling, packaging, and warehousing lubricant oils. Throughout our visit, we had the
opportunity to interact with key personnel, including Mr. Uzair, the manager of the blending
plant, Mr. M. Karim, in charge of the bottling and packaging plant, Mr. Hamza Ehsan, a chemical
engineer responsible for quality control, and other team members. This report provides a detailed
account of our visit, highlighting the insights shared by these individuals.

About Shell:
Shell: A Leading Provider in the Lubricant Oil Industry
Shell, a global energy company with a remarkable heritage spanning well over a century, has
firmly established itself as a prominent and influential player in the highly competitive lubricant
oil industry. Throughout its illustrious history, Shell has demonstrated an unwavering
commitment to innovation, excellence, and customer satisfaction, cementing its position as a
trusted supplier of superior lubricant products and services on a global scale. By embracing
cutting-edge technologies, prioritizing sustainability, and fostering strong customer relationships,
Shell continues to drive advancements in the lubricant industry and deliver exceptional value to
its diverse customer base.

Shell's foray into the lubricant oil industry dates back to the early 1900s when the advent of the
automotive era sparked a surge in demand for high-quality lubricants. Recognizing the immense
potential of this burgeoning market, Shell swiftly emerged as a leading supplier, known for its
dedication to producing top-tier lubricants that met the evolving needs of customers across
various sectors. By adhering to stringent quality standards, investing in research and
development, and nurturing a culture of innovation, Shell cultivated a reputation for excellence
that endures to this day. Central to Shell's success in the lubricant oil industry is its relentless
pursuit of innovation. The company has consistently pushed the boundaries of scientific
knowledge and technological advancements to develop lubricant formulations that deliver
exceptional performance and protection. By operating cutting-edge laboratories staffed with
world-class scientists and engineers, Shell remains at the forefront of lubricant innovation,
continuously developing state-of-the-art products that enhance efficiency, reduce friction, and
prolong the lifespan of machinery and equipment. Through tireless research, experimentation,
and collaboration with industry partners, Shell's lubricants consistently raise the bar in terms of
performance, reliability, and sustainability.

Sustainability is a core pillar of Shell's operations and a key differentiator in the lubricant oil
industry. Recognizing the urgent need to address climate change and minimize its environmental
impact, Shell has embraced sustainable practices throughout its value chain. The company's
lubricants are engineered to improve fuel efficiency, reduce emissions, and enhance energy
conservation, contributing to a greener and more sustainable future. Shell also places great
emphasis on responsible sourcing of raw materials, promoting recycling initiatives, and ensuring
the safe disposal of used lubricants. By integrating sustainability into its business model, Shell
not only meets the expectations of environmentally conscious customers but also enhances its
brand reputation and strengthens its social license to operate. Customer service excellence lies at
the heart of Shell's approach in the lubricant oil industry. The company recognizes that its
success depends on forging enduring partnerships with customers by providing tailored
solutions, technical expertise, and exceptional support. Shell's team of highly trained
professionals collaborates closely with customers to understand their unique lubrication
requirements, offering customized solutions that optimize operational efficiency, minimize
downtime, and maximize equipment performance. With a comprehensive portfolio of lubricant
products catering to diverse applications and industries, Shell ensures that customers can rely on
its expertise and consistently exceptional service.

Shell's extensive global reach and robust distribution network are integral components of its
success in the lubricant oil industry. Operating in over 70 countries, Shell has built a formidable
supply chain infrastructure that guarantees the timely and efficient delivery of its lubricant
products to customers across the globe. By establishing strategic partnerships, leveraging
alliances, and nurturing a vast network of distributors, Shell ensures that its lubricants are readily
available, regardless of geographic location or industry sector. This global accessibility, coupled
with the company's unyielding commitment to quality and customer satisfaction, has contributed
significantly to its enduring market presence and recognized brand identity.

COMPANY’S OBJECTIVE:
Shell is focusing on retailing, providing better facilities to customers, clean petrol pumps
constructing international standard petrol filling stations, good advertising campaigns and mini
markets (select).

VISION OF SHELL:
To Be The Top Performer Of First Choice.

AIM OF SHELL:
 Creating a secure business environment, minimizing economic losses, and business disruptions
safeguarding the group’s integrity and reputation.

Supply Chain and its Role in Shell Oil Company:

In the dynamic and ever-evolving business landscape of today, the concept of the supply chain
has undergone a remarkable transformation. Gone are the days when it was simply seen as a
linear relationship between manufacturers and suppliers. In the modern era, the supply chain
encompasses a complex network of interconnected parties, both within and outside the
organization, all working together to fulfill organizational requirements. This extended supply
chain now encompasses activities such as inventory management, transportation, warehousing,
and customer delivery, all with the ultimate goal of delivering value to the end customer.

Supply Chain Management (SCM) has emerged as a critical discipline that focuses on
orchestrating the various components of this intricate network to ensure the smooth flow of
materials, information, and resources. It involves strategic planning, coordination, and execution
of all supply chain activities to optimize performance, enhance operational efficiency, and drive
competitive advantage. By effectively managing the supply chain, organizations can streamline
processes, reduce costs, minimize risks, and ultimately improve customer satisfaction. The
essence of SCM lies in its ability to leverage external market dynamics to identify and capitalize
on favorable opportunities. A prime example of this is the practice of procuring materials during
periods of lower costs. By monitoring market fluctuations and trends, SCM professionals can
strategically time their purchases, allowing organizations to acquire essential materials at lower
prices. This not only reduces procurement costs but also contributes to overall cost savings and
increased profitability.
Once the materials are procured, SCM takes charge of their efficient transportation and delivery
to the organization's warehouses or production facilities. This entails managing logistics
operations, optimizing transportation routes, and ensuring timely and secure delivery. By
implementing advanced technologies such as GPS tracking systems, real-time monitoring, and
automated inventory management, SCM professionals can closely monitor the movement of
goods, mitigate risks, and minimize delays or disruptions.
Supply Chain Management is a continuous cycle that encompasses multiple stages and
processes. It starts with demand planning and forecasting, where SCM professionals analyze
market trends, customer demands, and historical data to anticipate future requirements. This
information forms the basis for procurement decisions, production scheduling, and inventory
management. SCM also encompasses supplier relationship management, where organizations
establish strong partnerships with suppliers, negotiate favorable terms, and ensure a reliable
supply of quality materials. Effective collaboration and communication with suppliers are vital
for maintaining a seamless flow of materials and mitigating any potential bottlenecks.
Furthermore, SCM plays a pivotal role in production planning and scheduling. By aligning
production capacities with demand forecasts, SCM professionals optimize resource allocation,
reduce wastage, and ensure efficient utilization of facilities and equipment. This results in
improved productivity, reduced lead times, and increased overall operational
efficiency.Distribution and logistics management form another integral aspect of SCM. This
involves managing the movement of finished goods from production facilities to distribution
centers, retailers, or directly to customers. Effective SCM strategies aim to minimize
transportation costs, optimize routing and packaging, and ensure timely and accurate order
fulfillment. By integrating technology solutions like automated warehouse management systems,
barcode scanning, and route optimization software, organizations can streamline distribution
processes, improve order accuracy, and enhance customer satisfaction.In Shell Supply Chain
Management is very effective because they provide best quality hydrocarbon products to the
Shell Plc including; Gas & Oil in order to facilitate the customers. As Shell is operating all
around the world including; United States of America (USA), Brazil, Canada, Denmark, France,
Germany, Kuwait, United Kingdom (UK), South Africa, Nepal, New Zealand, Egypt, Qatar and
Sri Lanka. However, it is very difficult to supply quality Oil & Gas to the Shell Plc because Shell
has 300 terminals and 9,000 Kilometers of pipelines, but they are working very efficiently as
they are providing best quality fuel to the customers. Supply chain Core Competencies at Shell:
“More upstream, profitable downstream”. In 2005, Shell used this mantra to distil its new
strategy. With upstream initiatives, the energy and petrochemicals group searches and recovers
oil and gas. Shell develops the way it refines and delivers products to customers via its
downstream initiative. In short, Shell’s mantra means that if it boosts production, its income from
refining will also go up. A supply chain transformation was key to realizing this strategy. As a
result, Shell restructured its supply chain, with various end goals. These include standardizing
practices and technologies, generating stable cash flows and putting demand-driven best
practices front and center of operations. 12 years on from the new strategy launch, and Shell
considers the supply chain transformation a success. It’s ready for the next step, i.e. transferring
the new strategy to its operations in emerging markets, namely Asia.

Shell Complex Supply Chain Operations:

The intricate and multifaceted nature of supply chain operations in the oil industry sets it apart as
a unique and complex ecosystem. Unlike many other industries, the oil supply chain involves a
series of interdependent stages and a diverse network of stakeholders that collaborate to bring
this crucial energy resource from its source to end consumers.
Transporting crude oil from production sites to refineries presents a logistical challenge due to
the long distances involved. Pipelines are often the preferred mode of transportation, allowing
for the efficient and secure movement of large volumes of crude oil. However, in instances where
pipelines are not feasible, alternative means such as tanker ships, railroads, and even trucks come
into play. Each transportation method carries its own set of complexities, requiring meticulous
planning, compliance with safety regulations, and coordination among various parties. The
refining process represents a pivotal stage in the oil supply chain, where the raw crude oil
undergoes a series of complex processes to transform it into a range of valuable products.
Refineries, equipped with advanced technologies and highly skilled personnel, employ
techniques such as distillation, cracking, and blending to separate the crude oil into its various
components. This intricate refining process requires careful monitoring, quality control
measures, and adherence to strict environmental and safety standards.
Once the crude oil is refined into products such as gasoline, diesel, and aviation fuel, the
downstream segment of the supply chain comes into play. This stage involves the distribution,
marketing, and sales of the refined products to end consumers. Distribution channels encompass
a vast network of terminals, storage facilities, and transportation modes to ensure the efficient
flow of products to their intended destinations. Complex logistics operations, including inventory
management, scheduling, and demand forecasting, are vital to meet the diverse needs of
customers in different geographic locations. Marketing and sales efforts play a crucial role in
creating brand awareness, promoting products, and maintaining strong customer relationships.
Oil companies engage in targeted marketing campaigns, tailored to specific market segments and
consumer preferences. Sales teams work closely with distributors, retailers, and industrial
consumers to meet their requirements, negotiate contracts, and provide ongoing support.
Customer satisfaction and loyalty are key drivers in this highly competitive industry, prompting
oil companies to prioritize exceptional service and product quality.

The oil industry is inherently influenced by external factors that can significantly impact the
supply chain. Geopolitical events, such as conflicts or political instability in oil-producing
regions, can disrupt production and transportation, leading to supply shortages and price
volatility. Additionally, regulatory frameworks and environmental policies have a profound
influence on the industry, shaping operational practices and requiring compliance with stringent
standards.
Departments Visited:
Administration:
Meeting with Mr. Sami (Admin Head):
Mr. Sami, the Admin Head of the plant, welcomed us and ensured that we were equipped with
the necessary safety gear before entering the plant premises. He provided a thorough safety
briefing, emphasizing the importance of adhering to safety protocols to prevent accidents and
maintain a secure working environment. Mr. Sami's guidance and support were crucial in
facilitating our visit and ensuring our safety throughout the plant.

Blending Plant:
Meeting with Mr. Uzair (Blending Plant Engineer):
Mr. Uzair warmly welcomed us to the blending plant and provided a comprehensive overview of
its operations. He explained that the blending plant is a critical component of the overall
production process, where base oils and additives are combined in precise proportions to create
various grades and formulations of lubricant oils. Mr. Uzair emphasized the importance of
accuracy and adherence to strict quality control measures to ensure that the final products meet
or exceed industry standards.

Blending Process:
During our visit to the blending plant, we observed the meticulous blending process. The base
oils and additives were carefully measured and mixed in designated blending tanks. Mr. Uzair
highlighted the significance of proper agitation and temperature control during blending to
achieve uniformity in the oil composition. Stringent quality checks are performed at various
stages of the blending process to ensure that the correct additives and base oils are used and that
the final product meets the desired specifications.

Bottling Plant:
Meeting with Mr. M. Karim (Plant Manager):
Mr. M. Karim greeted us at the bottling plant and provided detailed insights into the bottling and
packaging operations. He informed us that the plant is equipped with state-of-the-art machinery
provided by TMG, which enables high-speed and efficient bottling of lubricant oils. The filling
and sealing process, carried out by automated equipment, operates at an impressive rate of 230
bottles per minute.

Bottling Process:
Mr. Karim walked us through the bottling process step by step. The empty bottles, carefully
inspected for cleanliness and integrity, are fed into the filling line. The automated equipment
accurately dispenses the blended oil into each bottle, ensuring the precise amount is filled. The
bottles are then swiftly sealed to prevent any leakage or contamination. Quality checks are
conducted during the bottling process to verify the viscosity and clarity of the oil.

Packaging Plant:
Continued interaction with Mr. M. Karim (Plant Manager):
Mr. Karim guided us through the packaging plant, highlighting the importance of effective
packaging in maintaining the quality and integrity of the lubricant oils. He explained that after
the bottles are filled and sealed, they proceed to the packaging section. Here, the bottles undergo
labeling, grouping, and palletizing processes to prepare them for storage and transportation. The
packaging plant is designed to ensure that the products are securely packed and protected from
damage during handling and shipping.

Laboratory:
Meeting with Mr. Hamza Ehsan (Chemical Engineer):
Mr. Hamza Ehsan, a chemical engineer responsible for quality control, welcomed us to the
laboratory. He emphasized the critical role of the laboratory in ensuring the consistent quality of
the lubricant oils produced at the plant. Mr. Ehsan explained that multiple samples are taken
during different stages of the production process to conductthorough quality control tests and
analysis.

Quality Control Testing:

Mr. Ehsan walked us through the various quality control tests performed in the laboratory. He
explained that oil samples are taken during the blending process to ensure the correct blend ratio
and the absence of any impurities. These samples undergo rigorous analysis, including viscosity,
flash point, and elemental composition tests, among others. Any deviations from the specified
standards prompt corrective actions to maintain the quality of the oil.
Furthermore, samples are also collected during the bottling process to verify the oil's quality and
consistency. These samples undergo additional tests, such as density, acidity, and oxidation
stability, to ensure that the oil maintains its desired properties even after packaging.
Lastly, a final check is conducted on the finished product before it is released for distribution.
This involves comprehensive testing to assess the overall quality, performance, and adherence to
regulatory requirements. Mr. Ehsan stressed that these quality control measures help ensure that
customers receive lubricant oils of the highest standard and reliability.
Warehouse:
Tour of the Warehouse:
In addition to the blending, bottling, and packaging areas, we had the opportunity to visit the
warehouse. The warehouse serves as a crucial component of the plant, providing storage and
logistics support for the finished products. We observed the well-organized layout of the
warehouse, where pallets of packaged lubricant oils were carefully arranged. Mr. [insert name],
the warehouse manager, explained the meticulous inventory management system in place to
ensure efficient stock rotation and minimize any risk of product deterioration.
Manager there further elaborated on the warehouse's role in facilitating timely deliveries to
distribution centers and customers. He emphasized the importance of proper handling and
storage conditions to maintain the quality of the lubricant oils throughout their time in the
warehouse.
Conclusion:
Our visit to the Shell Lubricant Oil Blending Plant in Karachi provided us with a comprehensive
understanding of the various departments involved in the production process. Under the guidance
of Mr. Sami, the Admin Head, we were able to navigate the plant safely and explore the
operations of the blending plant, bottling plant, packaging plant, laboratory and warehouse.
The blending plant demonstrated the precision and attention to detail required to create custom
formulations of lubricant oils, while the bottling and packaging plants showcased the efficiency
of automated equipment in ensuring accurate filling, sealing, and packaging of the products. The
warehouse, overseen by Mr. [insert name], played a vital role in storing and managing the
finished products, ensuring their quality and facilitating timely distribution.
In the laboratory, we witnessed the meticulous testing and analysis performed to maintain the
oil's quality and adherence to specifications. The multiple quality control checks throughout the
blending, bottling, and packaging processes guarantee that customers receive lubricant oils of
exceptional quality and performance.
We extend our sincere appreciation to Mr. Sami, Mr. Uzair, Mr. M. Karim, Mr. Hamza Ehsan,
and the entire team at the Shell Lubricant Oil Blending Plant for their warm welcome,
informative insights, and dedication to safety and quality. Their expertise and commitment to
excellence are evident in the seamless operations and high standards maintained throughout the
plant. Our visit was both educational and inspiring, further highlighting Shell's reputation as a
leading provider of lubricant oils in the industry.