overall systems of IOC

[attachment=17246]

There are various processes involved in managing an organisation:

1. PLANNING

Planning is the most basic and important process in any organisation. Let us take
the example of the Lubes Department of IOC. The Head Office of IOC(Lubes)
group have a Lube Supply Plan Meeting beginning of every month where the Lube
group Heads from various Regions attend the Meeting prepared with the earlier
month’s performance. They project the market requirements for the month based
on which the HO(Lubes) group plans the production schedule for each plant. This
planning is done based on availability of additives, base oils, packaging materials
for the month. To achieve the target of the LSPM, the group has to plan within
available resources to give maximum ouput. The planning is also done with a
certain amount of flexibility to allow achieve the production target by resorting to
certain deviations in production.


CONTROLLING

Controlling the LSPM Plan is the next main task of HO(Lubes) group. Progress
of the plan is reviewed weekly with the Plant and Supply Point Heads. Feeback
helps in the Control Process. Feeback from the sales personnel helps in
understanding the changing market requirement and urgency to produce a
product to cater to the market demand may overtake other priorities. These
feedbacks helps control the critical variables which can come up anytime in an
everchanging market.



ORGANISING

Organising is a very important systems process in an organisation which involves
formal grouping of people and activities to achieve the objectives. In Indian Oil
there is a hierarchial structure according to which people are grouped. In the
marketing division, the Head Office is the focal point where all the decisions are
taken. In the Head Office itself there are various departments handling various
activities of the Lubes Department. There is the Lube Input Group which looks
after procurement of additives, base oils used in manufacture of lubes. The
Lubes Sales Department handles the overall sale of lubes. The Lube Pricing
Department fixes the price of lubes. All these Departments have a DGM and GM
heading the Department who take major decisions on Production, supplies and
sales of lubes. These decisions are based on feedback, MIS reports, daily
Reports given to them from the various lube departments from all over the
country. The lube departments in IOC are split up stateofficewise which enables
the state office heads to take certain decisions to implement certain plans for
meeting market demands which come up suddenly. Certain decisions in lube
supply plan are decentralised and rests with the state office heads.