OIL: INSTALLATION OF A CENTRAL GAS GATHERING

STATION AT MADHUBAN, ASSAM

GROUP ASSIGNMENT

For
Operation Management Courses (MM5004 – OSCM)
Lecturer: Mrs. Yuanita H.

By SYNDICATE-8

HASBI ASIDIK NIM. 29120131

NOOR TAUFIQ NIM. 29120185
R.M DHIMAS H.I NIM. 29120009
R. ROSA SETRA W. NIM. 29120051

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
BANDUNG INSTITUTE OF TECHNOLOGY
2020
 CASE ANALYSIS

1. Define actors/stakeholders involved in the case.

Actors in the article can be divided into 16 (sixteen) groups, some of them are
consisting of parties that each have interests.
Brahmaputra Cracker & Plymer (BCPL)
GAIL
A. Stakeholder
NRL
Government of Assam

B. Management Achintya Kumasi Nath (Head Production of Gas &

Project Manager)
C. Joint Venture Burmah Oil Company Ltd, UK

D. Employees
E. Staff Unions
Saipem Triune Engineering PVT Ltd (STEP)
F. Consultants
M/s Kalpataru Power Transmission Ltd (KPTL)
Punj Lloyd Engineering (PLE)
G. Contractor
M/s Multiplex Filtration Engineers Ltd
Ministry of Petroleum & Natural Gas (MoPNG)
H. Government
Cabinet Committee of Economic Affairs (CCEA)
I. Regulations (i.e. Laws : Mines Act 1952 (DGMS))
J. Creditors
Bangladesh, India, Murmansk, Naharkatiya, Moran,
K. Local Communities Duliajan (Assam), Lepetkata (Dibrugarh), Chabua,
Baghjan, Madhuban, Tipling, Zaloni, Deonal.
L. Pressure Groups Political and non-political organizations
M. Customers AGCL, NEEPC, IOCL, Tea gardens

N. Media
Spares Shop Delhi
O. Suppliers Spares Shop Moran
Material Supplier Vendors
Director-General of Mines Safety (DGMS)
Oil Industry Safety Directorate (OISD)
P. Competitors National Board of Wildlife (NBWL), National Parks
(NP), Wildlife Sanctuary (WLS)
Local Police

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2. Do a SWOT analysis for the case.
The article maintains OIL competitiveness as one of the best companies both locally
and internationally through inventive systems that use business strengths to inherently
overcome its weaknesses. Also, they use these internal strengths and weaknesses to
use opportunities and ward off potential threats, such as the dangers in the business
condition and market. These factors can be distinguished, assessed, and analyzed
through the strategic SWOT tool. The SWOT analysis and review for OIL Installation
of a Central Gas Gathering Station at Madhuban Assam talk about the strengths and
weaknesses (internal core strategic components) intrinsic in the business's tasks and
the OIL Installation of a Central Gas Gathering Station at Madhuban Assam
organization. The assessment and analysis of SWOT can identify the competitiveness,
competition, and rivalry.
The SWOT is needed to analyze because of expanded operations of OIL
Installation of a Central Gas Gathering Station at Madhuban Assam
 OIL Installation of a Central Gas Gathering Station at Madhuban Assam is present
and operational in different markets. Each of the needs poses unique yet various
difficulties in developing the business.
 OIL Installation of a Central Gas Gathering Station at Madhuban Assam and its
portfolio in these many markets have expanded over time. As the organization
grows, new items are needed to add to their portfolio and its pioneer product.
 Regarding the SWOT analysis model, these multiple operations and presences in
various markets make a challenging situation where the organization needs to
utilize multiple capabilities in different markets.
 Core elements, both internal and external to the organization, can help increment
OIL Installation of a Central Gas Gathering Station at Madhuban Assam's
accomplishment in contending with different companies and other businesses –
both locally and internationally.

STRENGTHS (Internal Factors)

This part works with the inner variables from the organization. It can use as competencies
and strengths to address shortcomings and ensure the business against rivalry. For this
situation, OIL Installation of a Central Gas Gathering Station at Madhuban Assam'
primary qualities are:

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1. Strong brand image
 OIL Installation of a Central Gas Gathering Station at Madhuban Assam is one of
the best in the world's most premium, well-known brand.
 OIL has a developing populace of steadfast clients, which adds to the soundness of
the business.
2. An international network of distribution
 In the SWOT analysis model, a global distribution network through directly-owned
subsidiaries or contracts with third-party agents further strengthens the OIL
Installation of a Central Gas Gathering Station at Madhuban Assam by supporting
activities.
 The organization has a worldwide system of deliberately chosen providers
dependent on criteria relating to quality, such as raw materials, as discussed in the
value chain - primary and supporting activities.
3. Substantial and focus on research, development, and innovation
 Focus on innovation is how to keep the company running well and facilitates
industry leadership.
 The core strengths in internal and competent variables recognized in this section of
the SWOT analysis of OIL's strategy in Installation of a Central Gas Gathering
Station at Madhuban Assam demonstrates that the company has qualities that
advance strength through expansion and a worldwide production network.
4. High focus on market research
 The organization steadily expands its business
 The company also continues to bring up its portfolio by adding new products based
on market research and consumer data.

WEAKNESS (Internal Strategic Factors)

Weakness analysis is recognized in this part of the SWOT analysis. Imperfections are
inward factors that diminish or cut off business capabilities and strengths. OIL Installation
of a Central Gas Gathering Station at Madhuban Assam shortcomings are as per the
following:

1) Premium prices for most portfolio products

 OIL has a premium brand image attached and priced high.

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  This expands overall revenues makes decrease the affordability of its items.

 The internal factor is a weakness since it confines the organization's share of the

overall industry, and particularly in territories with generally lower disposable

earnings.
2) Standard of regulations and business procedures for all portfolio items
i. Generalization
The SWOT analysis highlights that generalized standards for all portfolio products
may be a weakness because it restrains these product adaptabilities and business items.
ii. Imitability
- What is more, numerous OIL Installation of a Central Gas Gathering Station at
Madhuban Assam items are imitable by the others.
- Some items in OIL's portfolio have been imitated by completion. They are also
providing them at different price points.
- Though the quality is unique to OIL Installation of a Central Gas Gathering Station
at Madhuban Assam, the close competitor has also developed the right products.
- This business condition makes engages competition, as has been highlighted already.
3) Fighting the challenge of imitation
The internal factor in OIL Installation of a Central Gas Gathering Station at Madhuban
Assam demonstrates that the business must create best qualities to diminish the
unfavorable impacts of impersonation. The result of high value keeps on the
organization's share market of the overall industry in the international and local
business.

OPPORTUNITIES (External Factors)

This section focuses on external components for business development. In this situation,
the key opportunities accessible to OIL Installation of a Central Gas Gathering Station at
Madhuban Assam are:

1. Green business products

With an increased focus and awareness of consumers' health and wellness lifestyles,
OIL Installation of a Central Gas Gathering Station at Madhuban Assam must
recognize this as a good business opportunity.
Consumers' potential that concern changes their lifestyle to consume the product
that more environmentally friendly and organic.

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 OIL's should expand the product portfolio: green products and environmentally
sustainable services.
2. Expansion in emerging markets
OIL's can expand their income streams through expansion and develop a presence
in emerging markets like Brazil, China, and India.
This opportunity bring consideration far from the U.S. region, where most of the
organization's incomes are created.
3. Business enhancement
Likewise, this SWOT analysis of opportunities is noteworthy as the opportunity for
business enhancement and business development in the future.
This can improve the long-term position of OIL Installation of a Central Gas
Gathering Station at Madhuban Assam.
The OIL Installation of a Central Gas Gathering Station at Madhuban Assam
organization can diminish its reliance on its present enterprises to make higher
diversification of the portfolio and the overall business. At the same time, work
towards improving its general income development.
4. Partnerships with different firms
a. Diversification partnerships
Diversification is a minor strategy, as observed from OIL Installation of a
Central Gas Gathering Station at Madhuban Assam's competitive scenario and
its overall directive strategy.
Business environments push the chance to enhance the organization's
competencies and strengths
Increase the share of the overall industry through association with different
firms. A partnership with real retailers can improve dispersion.
b. Development of corporate clientele
OIL's can also formulate new B2B relations and contracts with other companies
and corporate entities.
This section's critical external factors demonstrate that OIL strategy Installation
of a Central Gas Gathering Station at Madhuban Assam can improve its industry
position by building up its activities to use the international opportunities
business markets.

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THREATS (External Factors)

Threats against the OIL Installation of a Central Gas Gathering Station at Madhuban
Assam are a part of this SWOT analysis piece. Risks are external components that
decrease or breaking point of business execution. In this case of OIL Installation of a
Central Gas Gathering Station at Madhuban Assam, the following section assesses threats
that apply to the organization in question:

1) Price wars by competition

 OIL Installation of a Central Gas Gathering Station at Madhuban Assam
competes with firms' wide assortment in the local and international markets.
 The organization competes against the other premium companies as well as
against cheaper companies that offer cheap priced items and products.
 This external but essential factor in the SWOT assessment undermines OIL
Installation of a Central Gas Gathering Station at Madhuban Assam because
competitors can lessen the organization's share of the overall industry by
competing in low prices overall low costs of production.
2) Increased competition
 The threat assessment also analyses increased competition as a significant threat
to the business.
 The other organization's threat is the risk of imitation from a competitor. Such
as how they duplicate the taste, look and feel of OIL Installation of a Central Gas
Gathering Station at Madhuban Assam items.
 A saturated market place and industry can lower the organization's sales and turn
down the overall industry's share market.
 Potential the increased cost of operational if they bring innovative processes and
implement novice systems to control costs
3) Independent players threats
 The industry environment and profitability condition is not a good opportunity
for independent small and mid-scale players.
 Integration levels of independent players are maybe bringing the backward
integration for retailers and marketers.
 Strategic marketing communications are expected to neutralize the impacts of
these patterns.

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 This section of the SWOT analysis of OIL Installation of a Central Gas
Gathering Station at Madhuban Assam recognizes vital external factors that
force difficulties to international expansion and growth of the company and
highlight market infiltration.

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3. What could be the reasons for projects to be delayed?
Project Phase Source of Delay Explanation
Planning Approvals for It takes more than a month (28 April 2011 - 7
drawings June 2011) to drawings approval
Executing Supply EPCC, EPMC, and OIL took considerable
Challenges time to identify and approve the new items
and new vendors (Material Supply Should be
complete by September 2011, but it
continued till August 2013
Soil type The soil condition may not be suitable for
construction (additional time to replace soil
layer from Februari 2011 - May 2011)
Uncertainty of The project got delayed in the second year
Weather (monsoon) because of the rain
Employee - High turn over of the project team
Availability / - The project leader at OIL was changed
Leadership - The project manager of EPCC also changed
Cultural - During a particular festival, people might
Challenges not be willing to work
- Poor infrastructure, difficulties to transport
materials and equipment to the site
- Frequent general strike from different
political and non-political organization to the
project team decrease the project team's
morale
- Shortage of information Technology skill in
northeast India
PM Tools Key stakeholders do not use the same PM
Tools (Primavera). Moreover, OIL insists all
project contractors submit a comprehensive
report using PM Tools.
Permission - There was considerable delay in issuing the
permission document for vendors and
suppliers (PAC/EC document
- Hurdles faced while obtaining
environmental clearance (EC)
- Hurdles faced while obtaining the wildlife
clearance
Closing Commissioning Delay in commissioning and Payment lead to
Hurdle many vendors refusing to cooperate and
extend final commissioning support

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4. Identify and analyze the risk associated with each activity, and suggest suitable
mitigation plans.
Project
Risk Analysis Mitigation Plans
Phase
Planning Approvals for Study the project carefully to make sure how many
drawings times and resources are needed to make the
approval of the drawing finish on time.
Executing Supply EPCC, EPMC, and OIL identify and approve the
Challenges materials and vendors before the project is
executed.
Soil type There should be an advanced team (geologist) to
examine the soil type before the project take place
Uncertainty of Arrange the construction activity to maximize on
weather (monsoon) the four-month dry season
Employee - Employment contractual agreement
Availability / - Same understanding that this project is essential so
Leadership that the project owner's Board of Management do
not change the project leader very often
Cultural - Corporate social responsibility for the community
Challenges in the border area
- Develop the infrastructure in the area to improve
logistics effectiveness as well as increase the
community engagement in the project
- Import IT expert in the project team as well as
certified API welders
- Train the Uncertified API welder as a part of the
community development program
PM Tools - Import an IT expert in the project
- Train how to use the same PM tools as a part of
the community development program
Permission - Avoid vendors who had a poor track record
- Make sure that all vendors understand and comply
with PAC and EC requirement
- Cut the lengthy procurement process, give EPCC
as a contractor to do procurement and construction
- There should be a particular unit in PMO to
related matter to the government
Closing Commissioning The monitoring process should be done not only by
Hurdle the PM itself but also by the government agency.
Government assistance (MoPNG) is needed in this
stage as the final commissioning delay mainly due
to incompliance with another government agency.

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