Supply chain of BPCL
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Transcript of Supply chain of BPCL
By:Shivani DwivediTinvi AnthonyKruti khandelwalNitesh AnjanaTejsaSikander
Petroleum Industry
• The first oil deposits in India were discovered in 1889 near the town of [Digboi] in the state of Assam
• The first well was completed in 1890 and the Assam Oil Company was established in 1899 to oversee production producing 7,000 barrels per day.
• In October 1959 an Act of Parliament was passed which gave the state owned Oil and Natural Gas Commission (ONGC) the powers to plan, organize, and implement programs for the development of oil resources and the sale of petroleum products and also to perform plans sent down from central government.
Companies Market Share GrowthIOCL 47.1% 46.7%
BPCL 20.8% 42.23%
HPCL 18% 37.69%
Consumption of Petroleum Products 2012
Bharat Petroleum Corporation Limited (BPCL)• Bharat Petroleum Corporation Limited (BPCL) -
an organisation that has redefined the petroleum and refining business, treading a unique path.
• On 24 January 1976, the Burmah Shell was
taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited.
• It was the first refinery to process newly found indigenous crude Bombay High.
• Bharat Petroleum Corporation Limited (BPCL) is a state-controlled oil refining and marketing company headquartered at Mumbai, India.
• Post its nationalisation in 1976, the company’s growth has been phenomenal. Its turnover stands at a staggering Rs. 46,850 crores
• BPCL is organized into 6 Strategic Business Units (SBUs) comprising of Industrial & Commercial (I&C), Retail, Lubricants, LPG, Aviation and Refinery,
Network Installation
1. Installation & Oil terminals 33
2. Company Operated Depots 63
3. LPG bottling Plants 45
4. Aviation Service Stations 19
5.Petrol Stations 7077
6. Kerosene/ LDO Dealers 1008
7. LPG Distributers 2124
Product Line• 2 Wheelers -Mak 2T -Mak 4T Plus
• 3 Wheelers -Mak GE
• 4 Wheelers -Mak Classic -Mak Elite -Mak Supreme -Mak Platinum
Product Line
Heavy Vehicles◦Multi grade◦Gold◦Diamond
Industrial Lubes◦Hydraulic Transmission Fluid◦Hydrol
Railways◦RR 940◦RR 513 M
Tie Ups
2 Wheelers◦TVS◦Hero Honda
4 Wheelers◦Tata◦GM
Industrial Goods◦L & T
Government◦Defense◦Railways
BPCL Refineries
BPCL
Mumbai
Kochi
Numaligarh
Bina
• Mumbai Refinery: Currently process about 12 Million Metric Tons of crude oil per
annum. BPMR has processed 61 different types of crude in five decades of its
operations. Use latest microprocessor based Digital Distributed Control System
(DDCS) and has been accredited with ISO 9002 (Quality Management System)
• Kochi Refinery: Presently having a crude oil refining capacity of 9.5 Million Metric
Tonnes per Annum (MMTPA) Capacity of 50,000 barrels per day.
• Numaligarh Refinery: BPCL is the major share holder with 61.65%
• Bina Refinery: Bharat Oman Refineries Limited (BORL), a company promoted by
Bharat Petroleum Corporation Limited (BPCL) and Oman Oil Company Limited (OOCL), is setting up a 6 MMTPA grass root refinery at Bina,
Production Plants in India
Wadilube(Mother Plant) : Mumbai
Budge Budge : Kolkata
Tondiarpet : Chennai
Loni :Delhi
Sewree Warehouse
Area – 3300 sq.m
SKU – 400 units (40 ml to 210 liters)
Capacity – 4000 metric tonnes
Loading Duration – 4 to 6 hours
Employees - 45
Supply chain in BPCL
Bulk Management
• Shell Coding
• Annual Plans
• Forward Contract
• ILP
• Hospitality Depots04/12/23
Operations
• ONGC: Uran• Crude oil - Foreign crude:- 60 types - Indian crude called as Bombay High
Fuel Gas LPG Gasoline Naphta HSD
Kerosene LSHS
Processing of LPG
04/12/23
Dispatching• 4 sales manager (PDP) - 70 Distributers• Domestic Cylinder:
Subsidised Non- Subsidised (5300) (5350) - 9 Cylinder -more than 9• Commercial Cylinder (5400): 19kg, Rs.
1700• Per day 120-125 lorries are dispatch• Corrosal plant: 24 cylinders are filled in 60
secs
Supply Chain Strategies
Planning: - which feed stock to buy - where to process - how much to buy ready made & how much to make - what to make and where - how to transport
Scheduling: -when & in what order feed stock should arrive at
manufacturing facility - when & in what sequence or modes to run the
equipments - which orders to meet & what dates to promise
Demand Planning: - for demand forecasting & aggreation of the final
demand numbers based on requirements of supply chain
Integrated Planning: - planning for the complete supply chain of the customer
based on demand numbers
Distribution Planning: - generating operation plans for distribution.
Production Planning: - generating operational plans for production. These modules are supported by various enablers that facilitate
planning activity that include:a. Supply Chain Database (SCD)b. Geographical Information System (GIS)c. Data Interfaces
Reverse Logistics
In case of product damaged during transit product damages are bared by the transporter.
In case of product damaged in storage at warehouse empty buckets are called from the manufacturing plant and re-packed.
TechnologyE- Revolution:-
1. SAP: By making an early entry into ERP, BPCL has reaped the reward of to this furturistic model. Benefits accrued are:a. Operational Efficiency b. Enhanced Fiscal Discipline• SAP: Up to 10,000 credit is accepted, above that not accepted
• BPCL is the first to upgrade SAP/R3 in its scale in the country.
2. MES: An IT based manufacturing system adopted for refinery operations was fully integrated with the corporate ERP.
3. Support sysytem such as - Intralink - Cyberdocks - Facility Management - Data Warehouse - E-mail link to facilitate smoother customer service
4. SCADA (Supervisory Control And Data Acquisition): -This sysytem affectively monistors the safe functioning of the pipelines
5. ASTRONOVA (Apron Fuel Management System For Avaition Customer)
6. Smart Card Technology, Offer Loyalty Cards, B2B & B2C transactional platforms created to assistindustrial customers and global avaition consumers to transact business online
7. Smart Fleet card: - Cashless transaction, Pure for sure, Vehical tracking, Credit options
Benefits to BPCL by SAP
• Reduction in days in inventory (average) 56%
• Improvement in demand fulfillment index 14% • Reduction in logistics Costs 2.5%
Evaluating petroleum supply chain performanceEvaluating petroleum supply chain performanceEvaluating petroleum
supply chain performance
Purpose – Performance evaluation in supply chain management (SCM) is not a straight forward task. The purpose of this paper is to suggest a method to evaluate the performance of one such process supply chain, namely the petroleum industry supply chain.e
Approach – The paper uses a combination of analytical hierarchy process (AHP) and balanced scorecard (BSC) for evaluating performance of the petroleum supply chain. The choice of factors determining supply chain performance under the four perspectives of BSC has been validated using opinion from subject matter experts (SMEs). In order to determine relative importance of criteria opinion of SMEs has been collected in the form of pairwise comparisons. Using these comparisons, the AHP technique has been applied to determine the relative weights of various perspectives as well as the factors under each perspective.
Findings – The importance of four perspectives with respect to petroleum supply chain performance in descending order of importance comes out as: customer, financial, internal business process, innovation and learning. Within these perspectives, the following factors seem to be most important respectively: purity of product, market share, steady supply of raw material and use of information technology. The methodology suggested in this paper tries to include these characteristics and can help in comparing performance of supply chains of different petroleum companies.
Value – The value of this paper lies in the unique approach towards determining the performance of process industry supply chains. By using BSC, non-financial factors have also been taken into account. Opinion of SMEs has been quantified using the AHP technique thus converting qualitative data to quantitative data.
THANK YOU
BPCL to acquire strategic stake in Swan Energy unitThe state-owned oil majors are likely to acquire a 26-49 percent stake in Swan's LNG terminal valued at Rs 2,500 crore.
Product Line
Auto Lubricants
Two/Three Wheeler Lubricants
Passenger Cars- Petrol Driven- Lubricants
Passenger/ Commercial Vehicle- Diesel driven- Lubricants
DG set/ Off Highway/ Earth moving Equipment Lubricants
Agriculture Equipment- Lubricants
Automotive oils and greases- Other Applications