Name: Enam ul Haq Taha Frotan

R. NO: FA17-BBA-404
SECTION: A

SUBMITTED TO: Dr. Hafiz Usman

10/5/2020

Company Name: Pakistan Petroleum Limited

Petroleum Industry in Pakistan has been faced with several field service problems. It will be seen that oil
production has not only been stagnant but it has shown a declining trend despite the fact that several
packages of incentives were announced. No new Refinery was set tip since 1978 although there were
several proposals to this effect. Mid-Country Refinery is now likely to be functional in the year 2000 if
everything goes smooth. Only this year prospect are looking bright and new discoveries may yield good
result.

Only this year prospects are looking bright and new discoveries may yield good field services. In the
following paragraphs we have discussed the following problems in field service:

Bureaucratic Control: Petroleum sector has to far been a bureaucratic network without active
participation of the private sector. The formulation of policy was the Governments sole prerogative. On
the implementation side instead of carrying along private sector as a partner in the field it was one side
government's dictated policy and decisions. The case in point is Pak Iran Refinery Project, which was
dragging on for more than a decade. Perhaps, this project will now be off the ground. Another glaring
example is the Hydrocracker Project for which land had been purchased and an amount of Rs.700
million was spent on the feasibility and planning. The project is now reported to be abandoned.

Depletion of Resources: About 10 per cent of the natural gas goes waste annually due to decadence of
the pipelines in Pakistan as compared to one per cent in other parts of the world. Pakistan had a gas
reserve of 21 trillion cubic feet, which PPL (Pakistan Petroleum Limited) has played a key role in
providing energy for the country with a current contribution of more than 20 percent to national gas
supplies and it might cater to the needs of the country for next 25 years. "But the gas resources may be
exhausted much earlier by virtue of high rate of population and proportional increase in demand of gas
consumers. At the present rate of extraction, Pakistan's oil reserves will last another seven years, and
natural gas another twenty years. In the near future Pakistan will face a serious challenge to its energy
security, unless additional oil and gas discoveries are made in the country. Self-sufficiency in oil will
decline from 40 per cent in 15.47 to 10.15 per cent by year 2000. Self-sufficiency in gas will decline from
100 per cent to 60 per cent by 2025.

Infrastructure Problems: PPL has a great exploration potential in Balochistan, but security problems are
hindering implementation work, as the Sardars of the areas want to have a share in exploration a non-
feasible phenomenon for the Government. Several companies had to withdraw themselves from
exploration work in Balochistan. So far 46% of the natural gas resources of Pakistan had been discovered
in this province, and it was contributing more than 90% to the indigenous gas production till 1968-69,
which has now dropped to about 45% of total gas production of 1800 -1900 million cubic feet per day.
So far only gas had been discovered in Balochistan and all the fields/discoveries were located in the
eastern part of the province, western part of Balochistan was virtually unexplored. "Only 24 wells (6%)
had been drilled as compared to 370 wells in other provinces.

Despite the low rate of exploratory activities in Balochistan 14 trillion cubic feet (TCF) of gas reserves
have been discovered which currently, account for 45 per cent of the total gas production in the
country. On the other hand only 16 TCF of gas had been discovered in the rest of Pakistan. Mr. Azam
Malik, Acting General Manager Exploration, OGDC, in a paper on "Prospectively Zones of Balochistan &
Potential Resources. …

Recommendations:
1. Use Contingent Labor to Expand Into New Markets

One of the easiest ways to increase work and gain new business is to venture in to new markets.
Although it sounds simple, many field service operations face conflicting challenges. First, many
businesses experience the roadblock of not wanting to enter a new geographic location until a full-time
field service technician is hired. Companies also face the challenge of not hiring a field service provider
until they’ve had experience in a new market.

As a solution, companies can utilize a field service marketplace to locate and hire skilled contract labor
for work in new markets. By employing contract field service technicians, businesses have the
opportunity to enter new markets and build their base quickly without the risks associated with hiring a
full-time employee. Ultimately, service companies that can build, scale, and respond to different levels
of demand are set-up for success and ultimately win more business.

2. Cut Costs with Contractors

In addition to expanding geographically, contract workers can also help businesses reduce overhead
labor costs. Although it sounds like a simple solution, companies tend to overlook this step when in
bidding for new business. Instead of trying to scale business fluctuation with W2 employees, companies
should consider assigning the extra work to contract labor.

It can be expensive to hire field service technicians full time, especially if a company doesn’t yet have
clients in a new market. However, having contractor labor easily available will assist with the fulfillment
of new bids as they occur. Engaging a blended workforce will also allow businesses to be more agile and
respond to changes in seasonal demand by filling coverage gaps in a cost-effective way.

3. Incorporate Streamlined Systems to Improve Efficiency

The phrase “time is money” should always be considered when reviewing processes and determining
efficiencies. Data, for example, can be a time-consuming process when entered manually. To help free
up valuable time, Pakistan Petroleum Limited should find a partner system that can integrate directly
with the company’s system. This will help streamline the data process, allow both systems to talk to one
another and sync data automatically. This way, data is always up-to-date and available to view in real
time. Finding new ways to enhance system efficiencies is one of the most effective ways operations
managers can grow its business in coming years.

4. Use Data to Make Decisions

Data is powerful and having a single dashboard can help operations managers make smart business
decisions, faster. As information is coming in left and right, it’s important for PPL(Pakistan Petroleum
Limited) to implement a system-based dashboard that provides a high-level view on various data, such
as total spend, top types of work and highest performing service providers. Instead of dedicating time to
day-to-day revenue and costs, it’s more valuable for PPL to take a higher-level view in an effort to find
inefficiencies and areas for growth. Companies like PPL can also use this data to help grow their business
faster. By tracking gas rates and reset pricing in different markets, operations managers can improve its
pricing accuracy, which in return prevents payment delays or overpaying in certain markets.

5. Better customer service

If a comapny has manual systems or multiple software systems, it’s very easy for things to slip through
the cracks and get lost. And this means one thing only: wasting time and money.
PPL should teach its employees to interact with customers with formal way possible. The Company can
provide courses of customer interaction before enrolling them in. Customers can find that getting gas
change takes longer, so effective communication skills with customers can make the process of oil
change less boredom.

6. Reduce costs

Doing everything the manual way takes more time and, therefore, costs more money. Every delay, every
extra unnecessary step in your processes, and every admin task that could be done more quickly by a
proper system is an extra cost your company doesn’t need.

PPL (Pakistan Petroleum Limited should reduce its gas costs in order maintain its customers. Companies
like PPL should reduce the gas prices to its minimum as its possible because of its mass usage around the
country. This way, the services of pumping oils into cars which is done by employees, can be much more
effective with as they are not free all the time and less employee turnover can be detected.

The system also manages your suppliers and inventory, saving time and either freeing up staff for other
work or allowing you to operate the company with less staff. Invoices can also be issued on site and paid
on the spot via payment integrations, thus improving cash flow.

7. Engage with customers and increase customer retention

Customers like to be kept informed and to feel listened to. They like engineers to come when they say
they will, and, naturally, they also appreciate a rapid repair if they happen to have a gas or water leak.

While a manual system and a great customer service team can provide a good customer experience in
the end, a job management system can take your customer data and engineer schedules and turn them
into an excellent customer experience.

For example, Pakistan Petroleum Limited database puts customer information within the easy reach of
admin staff and engineers, allowing them to offer customers the correct details and to communicate
with them better, keeping them up to date on with when they can expect their engineer to arrive.
The system can also track regular visits such as Gas Safety Inspections and boiler maintenance visits, and
send service reminders to new and existing customers.

This not only provides a helpful service that customers appreciate, but it also drives business for the
company and increases retention.