IE Business SchoolMaster in Management - Class of July 2019Operations and Supply Chain ManagementSection 3Workgroup DChristian WollnyExxonMobil - Taking on the world's toughest energy challengesIn the global energy industry, we are witnessing a shift in demand from conventional oil and natural gas to shale gas and oil. Currently, the United States of America are the only country capable of producing shale gas in sufficient quantities. At the same time, companies are expanding into the liquefied natural gas markets (LNG), foremost the United States, Qatar and Bahrain. LNG requires a regasification plant, so special LNG terminals have to be built to be able to receive such LNG tankers. Countries like Poland, Latvia or China are heavily investing in these new LNG terminals. ExxonMobil, a company with around 80.000 employees worldwide, is at the forefront of this switch. This mindmap hopes to show the application of OSCM at ExxonMobil in the scope of the emerging markets of Shale Gas and LNG. Exxonmobil itself is often the supplier (producer) and consumer (refinery), or better yet, wholesaler and even retailer! It's a long way from the depths of Texan oil fields to the plastic packaging of consummables in stores, and ExxonMobil is there every part of the way!
Kaizen
KaizenExxonMobil improves its processes across all business lines. This includes improving their IT infrastructure, as illustrated in the video.
Energy Outlook 2040
ExxonMobil forecasts the demands and dynamics of tomorrow! It publishes an annual short-term Energy Outlook, and once every while a long-term Energy Outlook for the next 20-25 years! In an industry as dynamic as Energy, it is important to stay ahead and anticipate the changes of tomorrow today!
Supplier Relationship Management
In most cases, ExxonMobil operates as the supplier, however it does work closely together with contractors and partners in the upstream business, and with franchise partners in the downstream business. In the downstream business, these are mostly logistics contractors who take care of the transport in trucks, and franchise partners who run the gas stations.Suppliers, contractors and partners are all part of the greater ExxonMobil network, and as such communicate together in internal networks, such as the Microsoft Messenger or SAP.
Take Away
ExxonMobil's success lies in part in how it organizes its supply chain. The vertical supply chain enables Exxonmobil to completely control the value chains of its products, and control everything from production to selling at the gas station.While ExxonMobil doesn't explicitly practice lean management (at least I haven't found them mentioning it), from my time at ExxonMobil I have found their processes to already be very functional, and with their take on kaizen (again, they dont explicitly call it that but apply it nonetheless) continue to improve it.A global corporation such as ExxonMobil operates in a very complex industry, and is required to run its businesses across various continents, countries and cultures. As such it is a necessity to be able to adapt to local requirements. This requires an attentive supply chain that is both, flexible and dependable.
aThe Value Chain of LNG
Subtopic
Technological innovation: Hydraulic Fracturing
Operations Integrity Management
OIMS Elements
The OIMS Framework includes 11 Elements. Each Element contains an underlying principle and a set of Expectations. The OIMS Framework also includes the characteristics of, and processes for, evaluating andimplementing OI Management Systems. Application of the OIMS Framework is required across all of ExxonMobil, with particular emphasis on design, construction and operations. Management is responsible for ensuring that management systems satisfying the Framework are in place. The scope, priority and pace of management system implementation should be consistent with the risks associated with the business.
Operations
Risk Assessment and ManagementFacilities Design and ConstructionInformation / DocumentationPersonnel and TrainingOperations and MaintenanceManagement of ChangeThird-Party ServicesIncident Investigation and AnalysisCommunity Awareness and Emergency Preparedness
Evaluation
Assessment of the degree to which expectations are met is essential to improve Operations Integrity and maintain accountability
Driver
Management leadership, commitment and accountabilityManagement establishes policy, provides perspective, sets expectations and provides the resources for successful operations. Assurance of Operations Integrity requires management leadership and commitment visible to the organization, and accountability at all levels.
The Business Streams
Upstream
ExplorationIdentify, pursue, capture, and evaluate all high-quality exploration opportunitiesDevelopmentDevelop safe, cost-effective facilities for oil & gas fields identified by ExplorationProductionOil and gas fields put into production
Inside the Hebron Oil Platform
Downstream
Refining & SupplyEfficient network to provide clean fuels, lubricants and other high-value productsFuels marketingHigh-quality Products sold to customers around the worldLubricants & specialtiesMobil 1: world's premier lubricant
aChemicals
Produce, supply/transport, research, develop and market chemical products
Integrated Value Chain
Upstream vs Downstream explained