Benefits of expanding business from oil refining to gas processing
Discuss about the Logistic and Operation in Oil and Gas for Refining.
Expansion of business has been acting as a major source of evolvement in the corporate sector that. Saudi Aramco is a leading oil refining organization who is trying to expand their business in the field of Gas refining. This report will discuss about the benefits that Saudi Aramco will enjoy due to this expansion in their business. this report will also discuss about the logistic challenges that Saudi Aramco might face in the processing of the expansion of their business. this report will further discuss about the country in which the products of the expanded business will be offered. This report will also discuss about the versatility of the supply management and the appropriate supply management that must be instilled in order to get the data of efficient result of the business. this report will also provide the strategies that must be undertaken in order to maintain the health related issues of Saudi Aramco.
The organization that has been chosen for the purpose of the analysis of the fact that the threats and risks the organization would face in order to translate the business which is oriented with the Oil and Gas to the business which is oriented to the Gas refining is Saudi Aramco.
The benefits the Saudi Aramco will enjoy due to the expansion of the business from oil refining to gas processing are as follows: –
- The turnover of the Saudi Aramco will gradually increase with increase in the processing of the business (Colucci and Visentin, 2017).
- This will increase the fact of the marketing of the brand and the projection of Saudi Aramco (De Visscher, 2016).
- This factor will increase the resource of the organization of the Saudi Aramco
- This aspect will also ensure the fact that Saudi Aramco can reach more number of audience by serving a higher versatility of services (Shenkar, Luo and Chi, 2014)
The major challenge regarding the Quality Management that Saudi Aramco faces during the processing of the transformation of the business technologically from providing the service of oil refining to gas refining is the storage of the crude oil (Zhang and Warner, 2017). In case of Saudi Aramco, during the alteration in the service that the organization provide storage remains the main concern as in case of gas refining the storage of the crude gas is very important which will be difficult in case the crude oil is present in the storage quarts of the company.
The major challenge in the processing of the alteration of the layout design of the Saudi Aramco due to the transposition of changing the service from oil refining to gas refining is the infrastructure of the organization. The infrastructure was initially built for serving the purpose of oil refining but the infrastructure of gas refining differs a lot from that of the oil refining. Saudi Aramco has to build a complete new infrastructure replacing the old infrastructure, which were in use for the servicing of oil refining (Savage, 2017). This ensures the fact that the employees who were employed for the process of oil refining will be changed with the employees who have expertise in the field of the gas refining methodology.
Te field of project management also faces a lot of problem due to the fact that the Saudi Aramco is expanding themselves in the field of gas refining as well. Previously in case of the company was dealing with the project planning and management of the plan that has been prepared for the processing of the functioning of the oil refining (Damodaran, Berger and Roychowdhury, 2015). With the fact that the company intends on processing to the gas refining territory, the organization need a separate bunch of project manager who are expertise in both the fields of oil refining as well as the gas refining. In this case new project managers are needed to be hired and a complete new project plan is needed to be prepared for the efficient functioning of the entire project. The project plan that was built initially for the processing of the oil refining will get invalid as the project plan that is to be made depends on the factor of oil refining as well as the gas refining.
Logistic challenges faced by Saudi Aramco during business expansion
Capacity Management deals with the factor regarding the arrangement of the space that will be required for the efficient storage of the raw material and the machineries that are required for the performing of the functionality of the project. The project requires new machineries as the company is expanding in the field of gas refineries (Christopher, 2016.). The machineries that are required for the processing of the gas refining are huge and occupies a lot of space. This aspect needs to ensure the fact that the excess amount of space that is required after storage of the machineries of the oil refining is very high. This factor for accommodating new machineries will act as a challenge for Saudi Aramco.
The country that is being chosen which will be favorable for the offering of the gas products that will be manufactured by the Saudi Aramco is Saudi Arabia. the distribution of the products related to the offering of the gas refining will be easier as Saudi Aramco is located in Saudi Arabia which helps the distribution of the products easier and more cost efficient.
The Supply Chain Design that has been chosen for the purpose of the processing of the project is Networking Design. The Networking Design Supply Chain design deals with the fact, which is used for the determination of the location of the production. Stocking and sourcing of the facilities acts as the major concern for the Network Designing Supply Chain Design. This Supply Chain designing gains its importance due to the fact is the only supply chain designing methodology which deals with the large models f the functioning system. Saudi Aramco will be benefited by this supply chain designing technique as the technique must be built before the project planning which helps the project manager to get the create the project management plan. This ensures the efficiency of the planning of the project regarding the expanding of the business organization of Saudi Aramco in the field of Gas refining (Goldner, 2017). The network designing also helps in the formation of the transportation strategies for increasing the efficiency of the processing of Saudi Aramco. The decisions that are derived in the processing of the functionality of Saudi Aramco are highly efficient due to the fact that the Network Designing Supply Chain designing is put into use. This supply chain methodology defines the business objective of the organization, which helps in clearing the goal of Saudi Aramco. The scope of the project related to Saudi Aramco is also efficiently defined using this methodology. This ensures the fact that Saudi Aramco will be benefitted with the future scope of the gas-refining project will also be clear to the Saudi Aramco and the organization can take the risk accordingly. The network designing supply chain design also helps in describing the tools that are to be used in the processing of the expanding the business from the oil refining it gas refining.
The service supply chain and the product supply chain are used for the boosting the customer service of the product that is manufactured by the gas refining entity of Saudi Aramco. These aspects also take into consideration the fact of reducing the operating cost. Despite these aspects of working together for there are significant differences as well as the similarities between product supply chain and the service supply chain (Cascio, 2018).
Challenges in project management during the expansion process
The main difference between the product supply chain and the server supply chain in terms of the marketing demand with respect to the Network design is that in case of product supply chain the changes are gradually over the progression of time and are predicted initially during the proceeding of the task. Whereas, in case of the service supply chain deals with the virtues that are based on the factors related to the product malfunction which are related to the factor of adapting the change efficiently. Response time also acts to be a major difference between the product supply chain and the service supply chain. The time taken for the completion of the task with the help of product management is much higher than the time taken by the server supply chain. Another difference between the product supply chain and the server supply chain is that in case of the product supply chain the number of products that are put into use are comparatively fewer than that of the server supply chain which consists of millions of elements that play a prolific part in the progression of the product terminology. Another significant difference between product supply chain and the server supply chain takes into account the processing by a single way progression whereas in case of the server supply chain the process is prosecuted by means of the two way trafficking process.
The major similarities between the product supply chain and the server supply chain is the fact are forecasting the capacity planning off the project in order to meet the supply and demand of the organization. The terminologies that are used for the management of the processing of the project are also same in both the product supply chain as well as the server supply chain. The methodologies that are incorporated by the product supply chain and the server supply chain. The methodology that is incorporated in the process of location planning in the product supply chain as well as the server supply chain are similar in nature.
According to me, to resolve the problem regarding the health maintenance record of the Saudi Aramco, I must create a plan which will influence the promotion of the identification hazard safety plan and make sure that the employees are having proper access to the first aid kit to the employees of the Saudi Aramco. I will also take into consideration the fact of inspecting the work place of Saudi Aramco. I would regularly keep the track of maintenance of the tools that are in use by the employees of Saudi Aramco. I would like to check the infrastructure of the organization in order to ensure the fact that the employee of Saudi Aramco is not injured in the process of lifting heavy weights. I will also ensure the framing of the path that will make sure that will make sure that the emergency exit for fire is made (Christopher, 2016). I will also train the employees of Saudi Aramco in order to make the employees of the organization well prepared for self protection in case of any kind of mantle danger that will act as a threat towards the employees of Saudi Arammco. I will also teach the employees of Saudi Aramco that the employees are liable for the deeds that might cause hazardous instances in the office premises. The potential threat management will be processed by assuming the threats before hands and prepare the organization for any kind of potential threats (Fallah, Eskandari and Pishvaee, 2015). I would regularly stay in touch with the employees in order to gain the knowledge of the shortcoming that is happening in the Saudi Aramco organization regarding the health and safety issues of the employees. This ensures the fact that the employees will be free enough with me in order to share the ideas regarding the safety issues that must be fulfilled in order to maintain the employee satisfaction and the motivation. I will also maintain records of the previous incidents of the records that has been acting as a reference to the company in order to maintain the security of the organization.
Capacity management challenges during the expansion process
With the help of Internet of things a platform can be created that will take into account the terminologies that will store the data of the employees of the Saudi Aramco. This will ensure the fact that the data of the employees will be stored in a robust platform which will help Saudi Aramco to take the referencing of the previous mishaps that occurred in the organization. This knowledge of previous incidents will acts a prevention methodology for the company in order to take the steps which will help in overcoming the potential threats of the company. The usage of the digital communication medium ensures the fact that the communication among the employees of the Saudi Aramco (Savage, 2017). This aspect ensures the fact that the problems faced by the employees of Saudi Aramco is shared among the other employees of the company. This also ensures the fact that the data of threat regarding the health of the employees of Saudi Aramco is brought into my notice, which will help me to recognize the future threats that might affect the employees of Saudi Aramco.
- Ensure the modulation of the spacing of the organization in order to place the new machineries that are to be bought
- Digital communication must be instilled in the processing of the framework of the Saudi Aramco
Conclusion
Therefore, from the above discussion it can be concluded that the expansion of the business in the field of Gas refining from the field of Oil refining has been a decision that has acted beneficial for the Saudi Aramco. Despite the problems that has been rising due to the expansion of the business, the organization ensures the profit that the business will be making is very high.
References
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