corporate project: wipro – introductory training
DESCRIPTION
As a project for the course GENB 3302 at the University of Houston, our team created an introductory training presentation for the Downstream Division for Wipro.TRANSCRIPT
University of Houston – GENB 3302 Corporate Project
Wipro Training Presentation
Overall Downstream
Manufacturing and Execution
Systems• Computerized
systems used in the manufacturing process to provide information to a manager that is useful in their decision-making processes
Marketing Customer Value &
Pricing• Communicating
the amount of benefit a customer will receive from a service or product
• Advising a pricing strategy that will result in maximum profitability
Supply Chain
• The flow of all parties involved in transporting a service or product from one destination to another
Downstream process begins once hydrocarbons reaches the refinery
From Midstream to Downstream
Manufacturing Execution SystemsYahairy Arseno & Timothy Nguyen
What is Manufacturing Execution Systems?
Computerized systems used in the manufacturing process to provide information to a manager that is useful in their decision-making processes
Examples: Aspen Tech, Honeywell RPMS
Access Implement Define Rollout Migrate Ensure
Wipro’s MES Process
How does a refinery work
Waste Treatment
Distributed to outside companies who have different uses for the waste
Treating & BlendingAfter impurities are removed, fractions are made into various commercial products
Chemical ProcessesCracking Unification Alteration
Fractional Distillation ProcessThis process heats the crude oil to separate the hydrocarbons
ExtractionCrude oil is extracted from the ground and transported to an oil refinery
Crude Oil to Different Commercial ProductsThe process map above shows the three most common products of oil refineries: gasoline, natural gas, and liquefied gas
Importance and Improvements of MES
Process optimization to increase yield: The main purpose of MES is process optimization. With technology evolving everyday, companies must progressively and
continuously make strides in their production process to increase the amount they can produce in a certain time frame, with a certain amount of labor available It’s yield
It’s a simple concept in that if your company can increase its yield it can become more successful in the production and distribution of its products and thus cut resource costs to gain more profit.
Process control improvements: A couple of ways to improve process control is to adopt Lean Thinking. Lean Thinking is a strategy focused on eliminating waste throughout all
manufacturing processes. (DOWNTIME) can also help improve manufacturing processes.
An Effective Cost Saving Theory
DOWNTIME
Tools used to manage MES
Managed by employers who continuously update and check their systems to make sure their systems are operating at 100% efficiency
Vary from administrating systems to providing technical support on the MES Technical Support Specialist
MES product vendors that Wipro has partnered with include GE-Fanuc, Apriso and SAP MES (Visiprise)
Marketing Customer Value & PricingAna Hernandez, Diego Luna & Kathryn Titus
What is Marketing Customer Value & Pricing?
Communicating the amount of benefit a customer will receive from a service or product
Advising a pricing strategy that will result in:
Improving same-store sales
Strategies that result in best value
Strategies that maximize profit
Automation
Provides site system product selection POS application customization Pre-lab testing Lab testing of the product Staging and deployment services Post implementation POS application support Field based maintenance of IT and non-IT devices
Can cut down 30% implementation cost and 25-35% support costs through innovative working models
What kind of marketing is used?
• Vendor management inventory enablement projects• Has achieved 99.9% reliability in product replenishment
for a global major
Wet Stock Management
• Help customers lower costs• Increase efficiency• Efficiently controls fueling• Streamline record keeping and management
information systems• Drive the most customer value
Fleet Cards
Reliability
Improving same-store sales
Analyze sales
Data mining
Selective product offering
Shifting product offerings according events/time of year
• Houston Texans mugs during football season
• Easter candy at Easter time
• Gourmet foods that have no nearby competitors
Strategies that result in best value
Differentiate product through marketing Examples:
Chevron with Techron Shell V-power Shell: Nitrogen enriched gas
Pricing of Refinery Products
Buyer need & value to buyer Seller need
Shareholder profit
Depreciation Taxes
Interest
Cost of finished product
Cost to produce in the
refinery
Capital Depreciation, Maintenance,
Labor, Experience,
Fuel
Cost of feedstock
Parameters & Considerations in Pricing
1. Acceptable margins (Cost of Production per barrel)
2. Maximize price customers are willing to pay
3. Limitations in pricing due to competition
4. Evaluate transportation costs
5. Evaluate crude assey (Composition: lighter crude sell for more compared to heavier crude, Sweet vs. Sour)
6. Evaluate availability (Time, Volume)
7. Commercial Terms (Terms of Payment)
8. Guarantee of Supply (Penalty for not delivering quantity or quality)
What pricing strategies are used?
Research Octane Number (RON) Higher RON, higher price
Pricing Competition Less competition, more profit
Margins Spot pricing vs. Contracts
Seasonal adjustments in price
Track and Manage MCV
Downstream Retail Marketing Retail outlet automation Inventory enablement Retail marketing analytics
Downstream B2B Marketing Streamlining sales and operations planning processes and
the implementation of key enabling applications E-ordering solutions for B2B customers, which streamline
end-consumer ordering, online billing and reliable information on delivery
Downstream Revenue
Refineries- ExxonMobil, Valero, Marathon High volume Small margins Walmart
Petrochemical- Sasol, Formosa Chemical Medium volume Medium margins Macy’s
Specialty Chemical- Albemarle, Eastman Chemical Small volume High margin Boutique
Margins on the Refined Product
Usually depends on the fluctuating demand of nations
Governments continue to expand their refinery capacity
Low profit margin compared to Upstream Demand for oil has peaked as people convert to
biofuels and hybrids
The average net profit margin of the gas and oil industry is 5.9%
A New Type of Fuel: Biofuels
Use mainly trees, grass, bushes called biomass
Growing industry, yet subsidized by government investment Only 3 or 4 major
companies
Future rising problem with food industry
Supply ChainRachel Hsieh & Thomas Stacy
What is the Supply Chain Process?
The flow of all parties involved in transporting a service or product from one destination to another
1. From the production to the refinery
2. From the refinery to the consumers
Exploration and Production
Transportation to a storage tank• Via pipeline or
maritime
Storage• Crude storage
tank
Possible steps after Storage
Directly to refinery Secondary storage then to refinery
Commodity market then secondary
storage then refinery
From Production to Refinery
Oil RefineryProduct pipeline
Retail storage terminal
Possible Distribution Methods
Transported to retail market for
consumers to buy (gas station)
Transported to industrial markets
Transported to commercial
markets (both for wholesale
customers)
From Refinery to Consumers
Goals of Supply Chain
Minimize material procurement
Maximize manufacturing
capacity and sales
Meet demand numbers
Oracle E-Business Suite Supply Chain Management (R12)
Management systems that allow them to have real time visibility
An application to integrate supply chain processes from design, planning, procurement and manufacturing
Can expect a complete solution to create information driven chains
Wipro focuses on Supply Chain Management to better understand the needs and wants from their customer challenges
Third Party Logistics (3PL)
Seen as critical strategic partners who can optimize the supply chain by providing competitive advantage
Analyze data from various sources and convert into information
Tools help Third Party Logistics manage supply chains for their customers
Outsourcing allow companies to avoid locking in capital warehouses, trucks, etc.
Legal
• Sarbanes-Oxley Act 2002 (SOX)
• Traveling Permits
Transportation of Hydrocarbon
• Marine Terminals
• Pipeline Infrastructure
Human Resources
• Human Resource Reports
• Skilled workers with technical skills (SAP)
Requirements of the Supply Chain Process
Sarbanes-Oxley Act 2002 (SOX)
Regulate rules and standards issued by the Securities and Exchange Commission
Covers a range of various topics from criminal penalties to corporate board responsibilities.
Transportation of Hydrocarbons and Human Resources
Two ways of transporting hydrocarbons by tanks, overloads (on roads or railways) by sea (in tankers) and transferred through pipelines throughout
the country
Depends on the companies investment, cost, and certainty of the continuation of energy supply
Human Resource Reports are used to generate various views of the work force
Training and Succession Planning maintains accurate data about the skill sets of the company and maintain data in the warehouse
The Future of Gas and OilJessica Huynh & Diego Luna
The Impact of New Processes
The introduction of new technologies and processes that accelerate the extraction of natural resources can lead to greater revenue
Hydraulic Fracturing
Horizontal Drilling Rigs
Oil Sands
Hydraulic Fracturing
Also known as, Fracking (LGN, NGL, LPG)
Drilling until natural resources are found and begin extraction
Extraction done by two tubes, one inside of the other Outer tube releases water to
break rocks to start releasing gas
Once gas is released, it is extracted through the inner tube
Horizontal Drilling Rigs
Directional drilling allows access to multiple wells from the same vertical well
Horizontal drilling drastically increases production
Revitalizing legacy oil and gas basins and putting new emerging basins on the map
Oil Sands
Two main processes Drilling: using a similar process to fracking Open Pit: taking the dirt combine with oil to refineries
where through chemical process applying heat at high temperatures the oil starts separating from the dirt
The Next Big “Thing”Innovative Pipeline Technologies
X-Stream Pipelines A system that is designed
to reduce the cost of deep water pipelines
Reduced pipeline thickness, welding time and installation
The Next Big “Thing”The Digital Oilfield
A Web-based visualization platform where companies can manage, measure and track data regarding the oilfield
Rockwell Automation, Baker Hughes and Cisco Systems
Leading Emerging Countries
United States of America
Natural gas market increasing
Using LGN processes creating greater revenue
New technologies focused on environmental care
Canada
The recent discovery of oil sands
New ways of extraction to accelerate production
Other Emerging Countries
Kazakhstan
The oil & gas industry’s role in total gross domestic product (GDP) increased from 10.9% in 2001 to 25.2% in 2012
Reserves at approx. 30.0 billion barrels of oil 1.8% of total global reserves
Natural gas reserves of 45.7 trillion cubic feet 0.7% of total global reserves
Mozambique
Hydrocarbon development: LNG Plant and supporting infrastructure
Recent offshore natural gas discoveries
Country is in revising Petroleum Law and it is expected participation will increase