Companies and organisations are making and delivering products, whether it is for profit or not for profit it relies on the processes to get their products manufactured properly and another thing that is kept in mind is that the products should be delivered on time, and every process acts as an operation for the company. To the company this is essential, that is why managers find operation management very attractive.
Operations Management objectives
Operations objectives of a company can be very broad. Operations management has an impact on broad categories of stakeholders. Stakeholders is a broad term but is generally means anybody who could have an interest or is affected by the operation. There are five groups :
Suppliers - Operations have a major impact on suppliers, both on how they can be effective and they can prosper at supplying the operation.
Customers - These are most obvious people who will be affected by any businesses. What the five operations performance objectives apply primarily to this group of people.
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Shareholders - Better operation is producing goods and services, the whole business is more likely to prosper and the major beneficiaries of this will be shareholders.
Employees - The employee will be better off if the company is performing good, as they are more likely to be employed in the future.
Society - Its has a large impacte on any business, having no direct economic connection with the company, individuals and groups and its operations managers behaviour. The most obvious example is in the environmental responsibility exhibited by operations managers. ( Slack,N., et al. (2004) 4th Ed)
Operation Management in Exxon Mobil
Exxon mobil operates its petrochemical facilities or marketing product worldwide and its industry leader almost every aspest. Exxon mobil was created by the marger of Exxon ( esso parent company) and its idea is nothing new.
The corporate entities that one day Exxon and Mobil become a common share ancestry. The Standard Oil Trust founded by John D Rockefeller in 1882. Â Under this umbrella, two organisations - the Standard Oil Company of New Jersey and the Standard Oil Company of New York ware formed. Jersey Standard and Socony, as they were commonly known, were the predecessors of Exxon and Mobil. In early years both companies expanding their oil and petrochemical business around the world. Finaly they realised that they can operate more competitively and effectively as an organisation. Its merger completed on 30 Nev, 1999.
Operational Management in Exxon Mobil
Exxon Mobil conducts business in such a way that is compatible with the environmental and economic needs of all communities in which they operates safety, health and security of their employees, those involved in their operation, customer and public. These policies put into practice through a disciplined management framework called operation management.
Its reflect their health, safety,environment and product saftey policies to commitment of highest operational standerds and performence. They use a systemetic approach called Operational Integrity Management System (OIMS). They developed this system to provide strong and healthy framework for managing healthy environment, safety and security risks. They used thier facilities worldwide to measure progress and ensure management accountability for best result in oil and petrochemical.
Exxon Mobil has a long history of leadership in the petroleum and petrochemical industries. They follow discipline and commitment in performing their business strategies have led to sustainable competitive aspects.
Technology; They maintain a unique commitment for advancment in technology in all their business functions consistently investing more than the competition.
Integrity; Their approach is very clear to ethics and business integrity is reflected in all their activities. Their goals to report that are clear to understand by investors.
Capital Discipline; They take a disciplined, long-term approach to making investment decision.
Operational Excellence; They maintain a clear focus on the performance of their business.
Employees; Their exceptional quality of their workforce is a long-standing competitive advantage.
Worldwide Experience; Their globaly presence allow them to build a existing business experience to capture opportunities in higher-growth region to attrect mor business.
Always on Time
Marked to Standard
Diversity of Operations; Their geographic diversity and complementary nature of Upstream, Downstream and Chemical business mitigate sensitivity to fluctuation in individual business line and market.
Financial strength; Their cash flow and financial position, combined with a good credit rating allow them to pursue all profitable opportunities.
ExxonMobil increases global capacity
Its started its newest high efficiency co-generation Nan plant at its Antwerp refinery in Belgium. Co-generation is the simultaneous production of electricity and useful heat or steam used for industrial processes. In addition to generating 125 megawatts, the new plant will reduce Belgium's carbon dioxide emissions by approximately 200,000 tonnes per year, the equivalent of removing about 90,000 cars from Europe's roads.
"Energy efficiency is one of the most effective tools available for reducing greenhouse gas emissions," said Sherman Glass, president of ExxonMobil Refining & Supply. "Since 2004, ExxonMobil has invested in their 1,500 megawatts of cogeneration capacity in five countries. With the inauguration of the Antwerp facility, ExxonMobil now has interests in about 4,600 megawatts of cogeneration capacity in about 100 individual installations at more than 30 sites around the world. This is enough capacity to supply the needs of more than 5 million homes in Europe.
This new cogeneration plant allows for the efficient generation of electricity to run pumps, compressors and other equipment in their facilities, while at the same time, producing additional steam that is needed in processes that transform crude oil into refined products, With the latest technology, cogeneration is significantly more efficient than traditional methods of producing steam and power separately. This results in lower operating costs and significantly less greenhouse gas emissions."Additional new facilities under construction in Singapore and China will increase ExxonMobil's cogeneration capacity to more than 5,000 megawatts in the next three years.
Esso Service Station throught out UK are owned by Exxon Mobil, which is one of the biggest chain of service station in the UK.
For any business location is very important for success that is why many businesses put so many emphases on location. In retail business there are three main factors for success and they are location, location and location,
Management in Esso also understand importance of location in business that is way location for each Esso`s outlet has been very well planned. Esso has outlet in all major cities and try cover maximum amount of customer in particular region. For any outlet the management of Esso conceder following factors.
Esso is one of the market leading petrol retailers in the UK. They serve an average of one million customers an hour. Their retail network is one of the biggest chains in the UK.
They are absolutely committed to providing customers with quality fuels at competitive prices throughout the UK and are constantly improving the range of products and services at their forecourt shops. Their latest On the Run sites have been designed to meet the refreshment needs of busy customers on the move. They offer a comfortable café environment in which to enjoy a quality range of hot drinks, freshly prepared snacks and friendly service. Mastly On the Run service stations in UK have Pay at the Pump technology, which helps customers refuel and be back on the road.
Manstly "Snack & Shop" forecourt shops are open 24 hours a day selling a wide range of convenience goods and offering a additional services like cash machines. Their alliance with Tesco has successfully brought together it's expertise in petrol retailing with Tesco's reputation for quality and value in grocery and fresh produce. There are around 196 Tesco Express shops at Esso service stations, providing more choice and convenience for their customers.
They recognise that price and convenience are important, its never expense the quality of their products. They consistently providing high quality fuels and lubricants. For example, they introduce unleaded petrol in 1986, the first to make Ultra Low Sulphur (ULS) Diesel widely available, and they are first national oil company to market lead replacement petrol in 1999 and more recently, they introduced Energy through their network of service stations. A wild range of world-leading lubricants, including their flagshipÂ oil Mobil 1, is also available at Esso service stations.Their own Esso fuel cards can help businesses control vehicle costs and improve efficiency in the UK and Europe.
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Business process is the way in which a company do its business and there is different levels which need to have a different process i.e. each level requires a different approach and every level has different tasks. Business process can be a key to success for any business as it helps in achieving the objectives of the company, for many companies business process the key competitive edge over their competitors. For good business process it is necessary that there is a consistency through the levels of business process and different business processes should be well integrated with each other and should be in line with the main objectives of the company.
At Esso each and every process is developed in such a way that it facilitates to achieve the overall business strategy. Business processes are defined in as such that process at every level is well integrated. While developing the business process for every level the management at Esso have maintained the overall vision and goal of the company.
Total Quality Management (TQM) is a comprehensive and structured approach to organisational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.
TQM processes are divided into four sequential categories: plan, do, check, and act (the PDCA cycle). In the planning phase, people define the problem to be addressed, collect relevant data, and ascertain the problem's root cause, in the doing phase, people develop and implement a solution, and decide a measurement to gauge its effectiveness, in checking phase, people confirm the results through before and after data comparison, and in acting phase, people submit their results, inform other people about changing of process, and make recommendations for the problem to be addressed in the next PDCA cycle. (http://searchcio.techtarget.com/sDefinition/0, sid182_gci799434, 00.html)
Total Quality Management at Esso
The management at Esso knows the importance of TQM very well in such a competitive world. To achieve this, the management at Esso has taken few steps at each level of the organisation like,
Defining the vision of the company
Developing business processes
At operation level i.e. at store level in order to give customers a quality service and to provide customer satisfaction the staff is given proper training for how to operate and run a store they are provided with all product knowledge so as to help customers with their queries. The products and services offered to the customers are well checked for quality purposes before displaying it at any store. (http://www.exxonmobil.co.uk/UK-English/about_what.aspx)
In sucessful business flexibility is very important because changes must be made occasionally from plans to strategies. If businesses wants to correct its mistakes, they must have flexibility. Its means, if business have the power and authority to change, then business is quite flexible. However, true flexibility comes from the system of business operation.
Business operation system should be technologically easy and fast in responding to changes. Investing in technological tools makes business more flexible. Upgrading in hardware and software is the latest and easiest setup for flexibility.
True flexibility in business having the speed to react to changes. The flexibility to readjust, change and implement is important as scenarios and circumstances can change throughout time. Business is always uncertain, so flexibility is needed to accommodate it.(http://marketingdeviant.com/flexibility-in-business/)
Flexible Workplace at Esso
ExxonMobil is committed to being the employer of choice for their diverse group of highly qualified employees and recruits while achieving and maintaining the highest levels of workplace productivity. Workplace flexibility programs are an essential part of that commitment as they help them:
Attract and retain the most talented and qualified people.
Address the diverse individual needs and expectations of employees and recruits.
Maximize employee productivity.
In ExxonMobil's operations around the world, each country's set of workplace flexibility programs is unique due to differences in legal requirements, infrastructure and culture. Examples of workplace flexibility and other employee programs are listed below.
Flexible work arrangements
Programs are available to address needs for flexible work arrangements at various points in a career, with supervisor's approval and as business needs allow.
Adaptable Work Place
Modified Work Week
Adjustable Work Hours
Time off with pay for required jury duty, death in immediate family, personal emergencies, birth/adoption of a child, a company-initiated relocation, company-sponsored community service activities and other personal needs.
Leaves of absence
Includes leaves for health/dependent care issues, military service or other personal reasons.
Vacation, Vacation Carryover, Vacation Advance and Holidays
Life Assistance Resources
Employee Health Advisory Program
Financial Fitness Program
Educational Refund Program
Spousal Relocation Assistance
Matching Gifts Programs
Volunteer Involvement Program
Survivor Financial Counseling
Service Awards and Recognition
Memberships in Scientific, Technical and
Business Process Outsourcing
BPO is distinct from information technology Information tehchnology outsourcing, which focuses on hiring a third-party company or service provider to do IT related activities, such as application management and application development, data center operations, or testing and quality assurance. Its usually consisted of outsourcing processes such as payroll. Then it grew to include employee benefits management. Now it compromises of a number of functions that are nor directly related to the primary business strategy. Now it is common for organizations to outsource financial and administration processes, human resources functions, call center and customer service activities and accounting and payroll.
Outsourcing at esso
CMG plc, the European information technology services company recently floated on the London and Amsterdam stock exchanges, signed an outsourcing agreement with Esso UK, worth almost £15 million over its five-year term. Under the agreement, CMG has started to carry out the overall project management of Esso's IT programme in the UK over the five years. CMG will be responsible for selecting other suppliers to provide complimentary or additional skills as necessary, and for ensuring that projects will be delivered on time and on budget.( www.prnewswire.co.uk/cgi/news/release?id=15005)