Documente Academic
Documente Profesional
Documente Cultură
Sherry Sethi
Shiva Nanditha
Vignesh Ramanathan
Aishi Mahapatra
Industry Overview
One of countrys 6 core industries 15% GDP; CAGR of 4.1 % over the last 5 yrs.
India 6th largest consumer of oil and 9th largest importer of crude oil
Energy consumption break down:
Players:
Upstream ONGC, OIL, Reliance, Cairn Energy, HOEC
Downstream IOCL, HPCL, BPCL, RIL, Essar, Shell
Transport and Distribution IOCL, GAIL, RIL, GSPC
Company Overview
Market leader in
petroleum products - 46%
market share
Largest Refiner 31 %
refining share
Largest Pipeline
The turnover growth is insulated from the cyclical demand fluctuations due to
diversified customer base - railways, aviation, power , coal, fertilizer plants, transport
and defence
International Trade
Crude
Products
Domestic
Demand
Domestic
Crude
Imp. LS
Crude
Prod. Transfer
Marketing.
Refining
Imp. HS
Crude
OMCs
exchange
Support
Up-Stream
Imports /
Exports
Pipe Lines /
R&D
Support
Down-Stream
Exploration &
Development
Shipping
Market
Distribution
to Depots
Refining &
Blending
Transportation
Storage
Crude availability
Procurement
(Material)
International trade
purchases crudes
that give best
margin for the
whole corporate
based on periods
demand
Crude selection
using Integrated Planning tool
Manufacturing
(Capacity)
Refineries make
optimized
operational plans
based on targets
set by Integrated
planning
Sales &
Distribution
(Demand)
Marketing
generates
optimized
operational
distribution plan
based on
direction set by
Integrated plan
Optimized operational
plan based on integrated targets
C
U
S
T
O
M
E
R
Depot
operations
Transportation
Outlet
operations
Depot Operations
Storage
DEPOT
Filling
Receipts
Indent
processing
Inventory
Management
Supply Planning
Quality &
Safety Issues
Filling Operation
Bay
points
Oil filled at
assigned
bay point
S&D
Plan
Trucks
Each truck
assigned a
filling bay
Trucks
queue at
gate
Statistics
No. of trucks = 320/day
No. of Bays = 20
Filling Rate = 800L/min
Tanker size = 24kl
CARD READER
TRUCK SCHEDULING
TRUCK STANDARDIZATION
7-10
min
Truck Identification
Truck capacity
Authorization at gate
Oil Quantity
Recommendations
CARD READER
TRUCK SCHEDULING
TRUCK STANDARDIZATION
Truck Contract
Truck leased by
Depot
Truck leased by
pump
Standardization approach
The depot, transporter and truck
manufacturer come together
standardize the truck dimensions
Transporters are only allowed to use the
pre-decided truck make
Reduces the time required for Oil
checking, truck checking and logistics
CARD READER
TRUCK SCHEDULING
TRUCK STANDARDIZATION
Depot contracts trucks. These are kept at the depot and used to transport oil to
pumps
Truck dealers are paid based on distance travelled.
Due to inefficient scheduling of truck to pumps, some dealers earn more than the
others. This leads to discontent among dealers.
xijk = if truck k will deliver to location i on day j, binary variable, binary variable
yi = distance from depot to location i
5
5
5
Maximize
=1 ( =1
=1 )
On a particular day a truck can travel a single location
5
5
=1 11 1
=1 11 1
5
5
=1 11 1
=1 11 1
5
5
=1 11 1
=1 11 1
Transportation
The products from the refinery (port, pipeline storage centre etc.) are transported to
Terminal/ Port/ depot from where it is further supplied to retail outlets
The terminal acts as a warehouse from which goods are supplied to retailers.
Bangalore City
276 Indian Oil Retail
Outlets
1 depot capacity 78000kl
Daily sales volume 1170 kl
Inventory=Four day sales
quantity
Petroleum Products:
Motor Spirit(MS)
High Speed Diesel(HSD)
Current Scenario
Pilferages en-route
Traffic restrictions
in certain routes
Issues
Human error
wrong routes
Control over
transportation
Every truck is provided with a real time Vehicle Monitoring Unit for
monitoring 3 things
Route
Speed
Stoppages en-route
Routes for trucks are established by IOCL sales department and depot
Institutional customers
Petrol pumps
Private dealership
Issues
Recommendations
1. Inventory checks
2. Customer order through
SMS
3. Make RTGS payment
before due date
Issues
Recommendations
Pilferage
THANK YOU