A Project Report on Management Information Systems of Hindustan Petroleum Corporation Limited

HINDUSTAN PETROLEUM CORPORATION
LIMITED

A

Project Reporton

Management Information Systems

Submitted by:Group: A-1[BATCH NO 2011-13]
NAME ROLL NO
RITESH ASHAR 11002
NIKITA BALI 11004
NEETHI NAIR 11044
CHANDAN PAHELWANI 11048
HIMANI PARIHAR 11050

Submitted to:

Prof.Hitendra Lachhwani

Tolani Institute Of Management Studies, Adipur. Page 1

ACKNOWLEDGEMENT

We are greatly thankful to Prof. Hitendra Lachhwani for guiding us throughout
our MIS project. His expertise is also of great help to our project.

We are also thankful to the SR.INSTALLATION MANAGER MR.J.M NAIK and the
staff of KANDLA TERMINAL [HPCL] for all their cooperation and for their support
for making our project.


CONTENTS
1. INTRODUCTION ....................................................................................................... 4
2. MISSION, VISION AND QUALITY POLICY ................................................................... 6
3. STRUCTURE OF ORGANISATION OF DIFFERENT DEPARTMENT ................................. 7
4. THE FUNCTIONS AT DIFFERENT DEPARTMENTS ARE AS UNDER:- ............................. 8
5. INFORMATION FLOW ............................................................................................. 11
6. TRANSPORTATION MODES .................................................................................... 13
7. REPORT SYSTEM .................................................................................................... 15
8. INFORMATION TOOLS ............................................................................................ 16
9. DECISION TAKEN AT EACH LEVEL AND INFORMATION REQUIRED FOR THAT ARE AS
FOLLOWS: .............................................................................................................. 19
10.SECURITY SYSTEM .................................................................................................. 20
11.RECOMMENDATION AND SUGGESTION ................................................................. 21


INTRODUCTION

HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) is a Government of India
Enterprise with Navratna Status. It’s an oil industry which was found in 1974. HPCL is a
Fortune Global 500 company and is the 10th Most Valued Brand in India. HPCL is having 20%
Marketing share in India among PSU’s (PUBLIC SECTOR UNITS) and a strong infrastructure.
It operates 2 major refineries producing a wide variety of petroleum products: one in
Mumbai, Maharashtra (west zone) which is also the Head Office of HPCL and second in
Vishakhapatnam (east zone) .It holds equity stake of 16.95% in Mangalore Refinery &
Petrochemicals Limited (MRPL).

The Marketing network of HPCL consists of 13 Zonal offices in Major cities and 101 Regional
offices. On the financial front the turnover has grown from Rs.2687 crore in 1984-85 to
impressive Rs.132670 crore in financial year 2010-11.HPCL also owns and operates the
largest Lube refinery in India producing Lube Base oil of International Standards. This Lube
refinery accounts for over 40% of the India’s total Lube Base oil production. HPCL is
constructing refinery at Bathinda, in the state of Punjab, as a Joint venture with Mittal
Energy Investment Pte. Ltd.

Its business units includes-Refineries, Aviation, Bulk-fuel, LPG, Lubes, Retail, Trade, Joint
ventures and E&P (exploration and production).

The main petroleum products of HPCL include:

1. PETROL – Petrol is known as Motor Spirit (MS) in oil industry, which is marketed
through its retail pump and is regularly used in personal vehicles.


2. DIESEL -Diesel is known as High Speed Diesel (HSD) in oil industry. This product is
marketed through its retail pumps as well as terminal and depots .It’s consumer’s are
not only auto owner’s but also transport agencies, industries etc.
3. LUBRICANTS – HPCL is the market leader in lubricants and the associated products.
The product commands over 30% of the Market Share in this sector. The popular
brands of HP lubes are Laal Ghoda, Milcy, Thanda Raja, Koolgard etc.
4. LPG – LPG is Liquefied Petroleum Gas which is used for household purpose basically
as a cooking gas and it’s in liquid form.
5. AVIATION TURBINE FUEL – ATF services is provided at various airports in India for
more than half century. HPCL facilitates to supply to JET A1 at Indian Ports.
6. FURNACE OIL - It’s black oil which is used in ships.

The KANDLA TERMINAL is basically involved in receiving, storing and distribution of the
Finished Products like MS, HSD, Furnace oil and lubes. In Kandla Terminal there are total 24
tanks in the terminal in that 3 tanks are underground and the rest 21 tanks are above
ground and there is specific tank for every specific product.


MISSION, VISION AND QUALITY POLICY

 MISSION: The mission of HPCL is to enhance their productivity, profitibity and quality
of the products so that they can be the No.1 in Oil Industry by taking into care the
cultural heritage and the environment and the customers and employee.

 VISION: The vision of HPCL is to be World Class Energy Company to be known for its
caring and delighting its customers with good quality products in domestic and
international market. The company will be excellence in social commitments,
environment, employee welfare and relations, health and safety norms.

 QUALITY POLICY: The Company is committed to deliver “Quality Petroleum
Products” to the costumers on time, every time in order to achieve “Total Customer
Delight”. As it’s important for all companies to obtain customer’s satisfaction.


STRUCTURE OF ORGANISATION OF DIFFERENT
DEPARTMENT

Head
Office

North Central North East West South North West
Zone Zone Zone Zone Zone Zone

Kandla
Terminal

Senior installation
manager(J.M.Naik)

Planning & Maintenance Safety &
Finance Human Resource Security
Operations & Purchase Department
Department Department Department
Department


THE FUNCTIONS AT DIFFERENT DEPARTMENTS
ARE AS UNDER:-
1) Planning& Operational department
2) Maintenance& Purchase department
3) Finance department
4) Human Resource department
5) Safety& Security department

1) Planning& Operational department: - Planning is the first and
foremost activity of any organization. Rest all activity are depended
upon it.
No organization can survive for a long period without proper
planning of the different undertaking at a different department. At
every stage planning has to be done. First of all planning is made
relating to the goal of an organization and accordingly the
department at a different level plan and accomplishes the goal.
In the same way at HPCL also according to the requirement of the
dealer and consumption they plan for the future requirement. Again
here also they should be aware of the stock which is available with
them in the tanks, order received from customer, goods in transit
etc.
Their planning again depend upon the retail outlet i.e. their petrol
pumps, what is the quantity available with them, how much order is
received, how much they are going to receive the product from head
office etc. Here again they keep in mind the total market of the
region, like other retail outlets turnover their share in the market
and at what rate the requirement will increase. Here planning
changes every month. Over here in this organization the normal
capacity of the tank is 12300 KL based on this product is received
and supplied.


2) Maintenance& Purchase department:-Maintenance is also a prime
activity for any organization. At HPCL also they need to go through
the same. Here also maintenance is required for the fuel tank, pipe
lines both within the organization and also of those which are
coming from Kandla port to HPCL, water tanks, motors, other
machinery etc. The fuel tank is used for 5 years for storage and then
after every 5 years maintenance is done for it. For that they need to
empty the whole tank and undertake the whole maintenance works
which include checking the thickness of the plate form outside,
inside, downward, checking of any leakage or weak area of the tank,
painting etc. There are two manholes in the tank which is kept open
for some days so that the gas which is present in it gets exhaust in
air. Also there are huge numbers of motors of 50 to 150 hp which
also require maintenance at regular interval of time. Pipe lines also
need maintenance because the whole activity is depend upon it only
that is flow of fuel from one place to another. Leakages and weak
area are identified and repaired.

3) Finance department: - Finance department is maintaining the
accounts, for income, expenditure, payment of custom and excise
duties, billing for cash and credit sales etc. Whatever the
requirements are there in the different departments first of all they
communicate to the finance department and as per the availability
of fund they inform to the relevant department. The company can
incur an expenditure of Rs.20000 per day for the relevant
requirement without any prior approval from head office, and
beyond Rs.20000 expenditure they need to go through the certain
procedure and approval of head office.


4) Human Resource department: - The task of human resource
department is to provide the man power to the different
departments. There are requirement of different employees, labors,
some technical experts etc. The management according to the
requirement asks to the department to make arrangement for the
same. The recruitment process is also undertaken at this stage, right
from the receiving application to the final selection and the
placement of employees. As and when there is a requirement of
man power at different levels of the department, there works start
right from allotting task, timing, specialization etc.

5) Safety& Security department: - Safety here is the most important key
of the organization. Even a minute mistake can turn into the big
disaster. So various safety methods are adopted to avoid such
situation. Like right from the entering into the premises of HPCL there
is a strict restriction on carrying cell phones, match box, cigarettes, and
any gadgets that can lead to sparks etc. For employees also different
safety arrangements are taken. While going to their respective job
they used to wear safety helmet, Safety gloves, safety shoes etc and
work is undertaken by the expert’s supervision. They need to keep
check on the electricity part also as it also may turn disastrous, for that
voltage input and output is taken into the account. Fire extinguishers
are kept in abundance quantity everywhere. There is a siren also which
immediately informs to the employees if any fire breaks out. There are
two water tanks available in the premises.


INFORMATION FLOW
Informational flow plays an important part in an organization to communicate easily with
other departments and get proper, correct and easy way to work in big organization such as
HPCL.

In HPCL the information flows from top management to lower management like a
SUPPLY CHAIN MANAGEMENT so that the process of information spread easily in
organization. The product is send by head quarter and HO work as a top management
they pass it on information about the product to the planning and operational
department about it.

I. How much quantity of the product is coming?
II. Which product is coming?
III. In which ship/vessel its coming?
IV. At what time it’s going to reach the destination port?

This information is send by head quarter to planning and Operational department then
its flow by planning and operational department to port so that they easily get there
product at proper time .Then after receiving the information from HO the work of
Planning and Operational department is to pass the information to finance department
that HO has sent the product through vessel so do all the formalities of port, now here
planning and operational flow the information to the port authorities also at same level
so that port authorities get the information that at what time the vessel is coming? In
which ship it’s coming? After that the port communicates to finance department that
fulfill all the formality of Custom so that product get easily departed from vessel to
pipeline for the terminal.

After that port authorities again communicate to planning and operational department
before 1 hour by sending mail that they are now starting to pump the product through
pipeline. After receiving the mail Planning and Operational department again
communicate, after receiving the product they mail to Port authorities that we receive
the product. After Human Resource department is ready with the workers who are
taking care of the product is send to the correct terminal which is allotted for the
specific product and see that the tank is not over loaded by the product if there is
sufficient product in the tank then it’s a responsibility of the employee to keep that
product in the pipeline only, so that product is properly adjusted in the tank and not be
access in the tank so that it does not burst in tank. Then human resource department
also flow the information to the Maintenance and Purchase department before storing


the product in the tank. It’s a responsibility of the Maintenance department that the
tank is not having any problem in storing the product and see that product is properly
adjusted in the tank. After that Maintenance department is responsible to communicate
with the Safety and Security department that when the worker’s are working in the
terminal area the worker are suppose to wear safety helmet and safety boots also so
that all the mishaps are avoidable and they insure their workers are on safe side.

In this terminal the type of network use to communicate is BUS TOPOLOGY.

In this way the information flows smoothly in these much different department.


TRANSPORTATION MODES

There is only one mode of transportation for receiving the product for the storage in
terminal that is as follows:

Vessel system

Explanation:

Vessel system: Head quarter send the product through vessel because the product is
easily received to the terminal through it. Then through the pipeline it is directly
connected to ports and with terminal. So when the ship reaches the port there is pre
decided jetty where the ship placed and from that it is connected to the terminal
pipeline then from there the pumping of product starts and after that it directly
reaches to the specific tank in terminal.

There are three way of transportation mode for the distribution of the product which is
stored in the warehouse. They are as follows:

Tank truck(TT)
Tank wagon’s
Aviation facilities

Explanation:

Tank truck: For distribution of product in local market or in retail market the mode of
transportation mostly used is tank truck. They load optimum level capacity of the
tank truck so that it is easily distributed and can be carried safely to different
locations. Mostly the trucks have the capacity of 20 KL (20,000 Liters). In that there
are four compartments, in which different products can be filled in each department
or same product can be filled as required.

Tank wagon: If the product is distributed from one state to another then tank wagon
are used as a mode. Tank wagon’s facilities are provided by Railway and it is
compulsory that 49 tank wagons are departed at one time. The capacity of 49 tank


wagon is to take 3000 KL (30, 00,000LTRS) at one time. It is also used mostly for
distribution of the product.

Aviation facilities: This facility is also provided by the Kandla Port terminal if in some
emergency the product is to be sent on urgent basis then the aviation facility is used
to send the product and it is mostly used to distribute the product to Mundra Port.
This facility is least used for distribution of the product.


REPORT SYSTEM
Report system is also the easy and formal mode of communication in an organization. If any
information is send to HO regarding to the organization then it is to be send through
reports only. There are 5 type of report system is to be used they are as follows:

 Stock monthly report
 Stock daily report
 Sales report
 Purchase report
 Monthly Distribution Plan

EXPLANATION:

 Stock monthly report: This report says about the monthly stock kept for the product.
It keeps the record of how much product is there, how much is needed, how much
can be stored and how much left after supply done at the end of the month. The
report is send to HO by the planning department.

 Stock daily report: This report says about the daily stock kept for the product. It
keeps the record in day to day supply of the product, daily how much sale done and
sees how much product remaining after the supply. The report is send to HO on a
daily bases.

 Sales report:This report is made of sales done of the product to different dealers by
truck tank, tank wagon and aviation facilities. How much to be done, to whom and
when.

 Purchase report/receivable product report: In this report the detail of product is
mentioned that how much goods received in the terminal when the product received
the approximate gauging is done and get noted after when the product settles in the
tank proper gauging is done and after that report is send to HO.

 Monthly distribution plan (MDP): This report is done by HO so that departments are
informed about the stock, distribution of the product and about how much the
product going to be received in the whole month so the all the employees set their
target by seeing the monthly plan.


INFORMATION TOOLS

E-mail

Indent
Sms Management
system (IMS)

Information
Tools

Manual
Hindustan
Identification
Portal
System

Internet


 INFORMATION TOOL: -At HPCL different information tools are used to communicate
within as well as to communicate with outside people. Few information tools are as
under:-

E-mail:- E-mail work as an information tool in the organization it is been used
between HO and manager to pass the information about what is going on in the
organization on daily bases and on monthly bases also.

Internet: -Internet facilities have made the flow of information easy. With the help of
internet vehicle monitoring system (VMS) is used toget the exact information of
location of Truck Tank (TT) so that the theft of fuel and other illegal activities are
avoided and the customer can get the delivery on time. Also a lock along with the
sensor is fit on the every compartment of the truck tank so that if someone try to
open that it he can be caught red handed. Not only that sensor is installed at the
driver’s place to monitor the speed at which truck tank is moving, whether it is in the
right direction or deviating from the track.

Manual Identification System: -Here some information’s are taken manually by
employees. Like measuring the fuel in the tank, temperature of the fuel, water level
in the tank .In manual identification system there is specific tool they are using that is
measurement copper tap and copper gauging.

Hindustan portal: -There is an internet facility at the HPCL which is used by their
employee to get them updated. In this system information relating to employees at
different department with their job profile is available.

Indent Management system: -This is a unique system used by the HPCL. Information
flows through this system. In this system the purchaser place the order through mail
to the supplier and supplier again mail to the purchaser that we receive your order
and then supplier send him to the date and time when purchaser going to receive the
product.


SMS: -Orders are received through SMS and executed to save the time of both
customer as well as organization.


DECISION TAKEN AT EACH LEVEL AND INFORMATION REQUIRED FOR THAT
ARE AS FOLLOWS:
In such a big organization like HPCL the decision is mostly taken by head quarter
because in kandla port terminal the product is only stored and HO only decide that
where the product is distributed? How much is distributed?
The information also flow from HPCL terminal to HO about the product that how
much stock is there if there is access in stock then they give information to HO that
please don’t send the product because we have maximum stock in the terminal now
the HO take the decision where to send the product and in which terminal of there
they send the product.
Here the department only takes the decision to distribute the product to the local
retailer whether to sell or not. And whether to allow them any discount.
They also deal with local purchaser in the market they take the decision that which
purchasers are given first preference to distribute the product and that decision is
taken by planning and operational department. Here the concept of CUSTOMER
RELATIONSHIP MANAGEMENT SYSTEMapplies.
They also take decision regarding safety and security by their own when any tank
truck enter into the premises they take all the detail and that information flow
ahead.


SECURITY SYSTEM

The safety policy of this company is:

1) Carry out the work in safe manner protecting the people and property.

2) Also ensure awareness among the employees, contractors and others for all
responsibility and accountability for safety on and off at work premises.

Many security things are kept to prevent from disaster. As inflammable product is stored at
this terminal so protection and safety is required. First of all it should be mentioned about
the FIRE SIREN. This siren is made when the day starts and when the day comes to an end.
If the siren is for 30seconds that means the office hours are complete for the day and if this
siren rings more than 1 minute then it means that there is a fire in the organization.

For any visitor to the company, the security guards at the entrance checks the visitor’s bag
if he/she carries, cell phones are not allowed to be carried to the organization because due
to the spark in the cell phone there can be chances of fire in the organization. Then the
information like visitor’s name, entry time, exit time, place from where they have come,
reason for what they have come and signature of the visitor are recorded. Then they are
provided with visitor badge for the entry to the company.

Earthing is also one type of security provided for avoiding static electricity. The company
provides flame proof torch, lock of brass, flame proof walkie-talkie and wooden spanners.

If suddenly fire occurs then to handle it two water tanks are there, fire engines, foam
containers and sprinklers. There are PPE’s (Personal Protective Equipments) also to protect
the employee such as safety helmet, safety shoes, safety gloves and fire proximity suit.

There is also a fire clock at entrance gate representing the various places in the terminal
and the arrow in it (hand) should always be in safe zone in normal condition.

To monitor the location of tank truck the WIRELESS SENSOR NETWORK is used which is
placed on it for the security of the product.


RECOMMENDATION AND SUGGESTION
 As this terminal of the organization is mainly working manually so it should be
converted into fully automation, to make the work done quickly, easily, efficiently
and smoothly. The automation will help this terminal to take the decision effectively
and it will also help the information flow.


A Project Report on Management Information Systems of Hindustan Petroleum Corporation Limited

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