internship report- sara haroon

Implementation &

Improvement of warehouse

activities in reference of

applicable SOPs (Summer Internship Report)

7/16/2012 Total Oil Pakistan Pvt Limited

Sara Haroon

Implementation and improvement of warehouse activities in reference of applicable SOPs

Summer Internship Report Page 1

Contents Acknowledgments ......................................................................................................................................... 3

Executive Summary ....................................................................................................................................... 4

I. Aims and Objectives of the Project ....................................................................................................... 5

Project Charter: ......................................................................................................................................... 5

Project Scope: ........................................................................................................................................... 6

Work breakdown Structure: ..................................................................................................................... 7

II. Background ........................................................................................................................................... 8

Brief overview about Total & Total Oil Pakistan (Pvt) Ltd (TOPL): ............................................................ 8

Products: ............................................................................................................................................... 8

Distribution: .......................................................................................................................................... 9

SAP Warehouse Management System: .............................................................................................. 10

Safety standard certifications of TOPL: ............................................................................................... 10

Internship with TOPL: ............................................................................................................................. 10

Tasks assigned ..................................................................................................................................... 11

SOPs studied ....................................................................................................................................... 11

Karachi warehouse visit ...................................................................................................................... 12

Total’s safety golden rules: ................................................................................................................. 13

TOPL Customer support center (CSC): ................................................................................................ 14

Visit to Lube Oil Blending Plant (LOBP) of TOPL: ................................................................................ 16

III. Findings & Gap Analysis .................................................................................................................. 21

IV. Conclusion ....................................................................................................................................... 26

V. Recommendations / Suggested improvements .................................................................................. 27



Figure 1: TOPL Product range ....................................................................................................................... 8

Figure 2: TOPL warehouse distribution ......................................................................................................... 9

Figure 3: View of TOPL warehouses showing its 3 areas ............................................................................ 12

Figure 4: Cartons stacking on pallet ............................................................................................................ 17

Figure 6: Hand trolley.................................................................................................................................. 18

Figure 6: Placing the loaded pallets on the racks using fork lifter .............................................................. 18

Figure 7: Drums placed horizontally in 3-9 position ................................................................................... 19

Figure 8: Batch no and Mfg date on drum for FIFO implementation ......................................................... 19

Figure 9: OK by QC incharge ....................................................................................................................... 20

Figure 10: Leaked cartons at the dispatch area .......................................................................................... 20

Figure 11: Storage of unused material limiting the accessibility for use of fire extinguisher in case of an emergency .................................................................................................................................................. 21

Figure 12: Drums loaded on broken wooden pallet ................................................................................... 22

Figure 13: Drum placed on the corner side of the pallet ............................................................................ 22

Figure 14: Drum placed on floor at Karachi warehouse ............................................................................. 23

Figure 15: Improper position of carton placed on the drum .................................................................... 23

Figure 16: Drums storage in outdoors ........................................................................................................ 25

Figure 17: Board displayed in LOBP showing minimum PPE requirement ................................................. 26

Figure 18: Safety guard rails ....................................................................................................................... 27

Figure 19: Loading / Unloading of material received from TOPL LOBP ...................................................... 28

Figure 20: Boxes for storing rejection and on-hold products ..................................................................... 29

Figure 21: OK by QC incharge ..................................................................................................................... 29

Figure 22: Leakage found on cartons kept at the dispatch area of LOBP ................................................... 30

Figure 23: On-hold tag ................................................................................................................................ 30

Figure 24: Drums storage at LOBP .............................................................................................................. 31

Figure 25: 5s ................................................................................................................................................ 32

Figure 26: Safety calendar for TOPL warehouses and LOBP ....................................................................... 34



Acknowledgments

I take immense pleasure in thanking Mr. Qasim Zaheer, CEO, Mr. Sajid Raza, Manager HR and

Mr. Jahanzeb Khan, Manager Recruitment and Benefits, for giving me the ample opportunity to

work with the team of Total Oil Pakistan (Pvt) Ltd and allowing me to explore this prospect of

the industry.

I wish to express my deep sense of gratitude to my Internal Guide, my project mentor, Mr.

Faisal Laeeq, AM Distribution, for his supervision throughout the internship program and

sharing his knowledge with me. His guidance has given me tremendous motivation to work

comfortably and his useful suggestions had helped me in completing the project work in time.

Additionally, I would also like to thank for the support and cooperation of the TOPL other

members who have somehow contributed significantly in my project completion. These include

TOPL’s warehouse and LOBP team for their help and patience and other people at the head

office for sharing their knowledge with me regarding various activities involved in TOPL

operations.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for

their blessings, my teachers and IBA faculty for the knowledge I gained from them and

enhancing in me the ability to work in a competitive corporate environment.



Executive Summary

This report documents the work done during the summer internship at Total Oil Pakistan (Pvt)

Ltd., Karachi under the supervision of Mr. Faisal Laeeq. The report first shall give a brief

overview of the company’s history and products. Then there is a description of multiple tasks

that were performed during the period of internship.

The report describes the findings of the project that was assigned to me during the internship

period i.e., ‘The implementation and improvement of warehouse activities in reference of

applicable SOPs’. Report shall also elaborate on the suggestions by me for the future works

which can be persuaded as an advancement of the current work.

Purpose of this report is to explain what I did and learned during my internship period with the

guidance and support of team of Total Oil Pakistan (Pvt) Ltd., Karachi in the Division of Supply

chain. The report focuses primarily on the assignments handled, working environment,

successes and short comings that I did encounter when handling various tasks assigned by the

mentor.



I. Aims and Objectives of the Project

Project Charter:

PROJECT TITLE Implementation and Improvement of warehouse activities in

reference of applicable SOPs

COMPANY Total Oil Pakistan (PVT) Ltd.

DIVISION Supply chain & Distribution

PROJECT MENTOR Faisal Laeeq, Assistant Manager Distribution

PRIMARY

STAKEHOLDERS Distribution Manager, Warehouse Officer and Warehouse Incharge

IN-SCOPE OUT-SCOPE / LIMITATIONS

Warehouse activities with respect to

following SOPs

Finished product counting,

reconciliation and reporting

Outgoing products (finished goods)

Product return

Storage operations for packaged

products

Secondary distribution activities

Other regional warehouse activities

ESTIMATED TIME 6 weeks



Project Scope:

PRELIMINARY

SCOPE

To study the SOPs applicable to warehouse activities for the standard

procedure to be followed and analyze the differences in actual operation

OBJECTIVE Suggesting improvements in the current activities and implement the

suggested improvements

TOOLS &

TECHNIQUES

TOPL SOPs for:

Finished product counting, reconciliation and reporting

Outgoing products (finished goods)

Product return

Storage operations for packaged products

Meeting with various concerned persons for collection of information

Observations & Recommendation

CONSTRAINTS Not able to gather identifiable discrepancies for warehouses other than

Karachi due to inaccessibility of reach



Work breakdown Structure:

The following table shows the task distribution performed during my internship tenure.

Week Task

1 Understanding of TOPL operations and study of the SOPs related to warehouse

activities.

2 Visits to Karachi warehouse for gap analysis, Discussion with the mentor related

to the observations and actual operations being performed at the warehouse

3

Study of the gap analysis for the activities that are performed at the warehouse

with respect to SOPs and improvements that could be made in the current

operations of the warehouse

4

Visit to LOBP, TOPL plant at Port Qasim, for analysing the operations and

Discussion with the mentor related to the observations and actual operations

being performed at the plant

5

Study of the gap analysis for the activities that are performed at the plant with

respect to SOPs and improvements that could be made in the current operations

of LOBP

6 Suggesting improvements applicable to warehouse and LOBP, Report preparation

and presentation



II. Background

Brief overview about Total & Total Oil Pakistan (Pvt) Ltd

(TOPL):

Total is actually a merger of Total itself, Total Fina and Elf Aquitaine. It was first named as

TotalFinaElf after the merger in 2000, but later it was named as Total in May, 2003. Total,

headquartered in France, is the world’s fifth largest oil and gas group. The group has a strong

global presence in five continents across the world. Its activities cover the holistic energy

spectrum of the petroleum industry encompassing upstream operations (oil and gas

exploration, development and production, LNG) and downstream operations (refining,

marketing and the trading and shipping of crude oil and petroleum products).

Total Oil came in Pakistan 15 years ago with two different joint ventures

1. Total Parco: This deals with fuels (petrol, diesel and kerosene etc.)

2. Atlas group: which deals with Lubricants only

Last year, i.e., in 2011, share of Atlas was bought by Total group and now it is named TOPL.

Total Oil Pakistan (Pvt) Limited (TOPL) is a subsidiary of TOTAL where TOTAL France holds

majority shares of the company. TOPL launched its commercial operation in 1999 and has since

then been successfully marketing a complete range of Automotive and Industrial lubricants

catering to the diversified needs of customers across various industries and social groups.

Products:

TOPL caters to two business units:

(1) Automotive sector & (2) Industrial sector

Its product range can be divided into following categories1

Figure 1: TOPL Product range

1 TOPL website: http://www.totallube.com.pk/Lub/LubPakistan.nsf/

Cars Trucks Motorcycles/Scooters Marine Industrial

http://www.totallube.com.pk/lub/lubpakistan.nsf/VS_OPM/C125722000399B04C12570960052DF11?OpenDocument

http://www.totallube.com.pk/lub/lubpakistan.nsf/VS_OPM/C125722000399B04C12570960052DF0F?OpenDocument



http://www.totallube.com.pk/lub/lubpakistan.nsf/VS_OPM/83AE8E5A8DFE9D64C1257428004E15D9?OpenDocument


http://www.totallube.com.pk/lub/lubpakistan.nsf/VS_OPM/C125722000399B04C12570960052DF0F?OpenDocument



http://www.totallube.com.pk/lub/lubpakistan.nsf/VS_OPM/83AE8E5A8DFE9D64C1257428004E15D9?OpenDocument



Industrial oils mainly includes Turbine oils, Compressor oils, Gas Engine oils, Marine engine oils,

Hydraulic oils, Gear oils, Textile Industry oils, Heat transfer oils, Chill oils, transformer oils & all

kind of greases. Our Automotive oils include Quartz Range for gasoline engines & Rubia range

for Diesel engines along with a complete line of transmission & brake fluids.

Distribution:

TOPL is involved in primary and secondary distribution around the country. Its products are

available and delivered to end users in variety of containers such as

1. Plastic / tin cans packed in corrugated cartons

2. Plastic / steel pails

3. Steel drums

Primary Distribution:

The primary distribution involves distribution of TOPL products from its Lube Oil blending plant

(LOBP) to its warehouses and inter-warehouse movements (for temporary storage purpose).

TOPL warehouses are spread in the following cities of Pakistan2

Figure 2: TOPL warehouse distribution

2 https://maps.google.com/

https://maps.google.com/



Secondary Distribution:

This is the distribution against approved customer orders from TOPL warehouses including

LOBP warehouse to customers against new order or replacement order.

The Lube oil blending plant of TOPL is situated at Port Qasim, Karachi. The company’s success is

apparent from the fact that in 10 yrs. it is able to gain 10% market share around the country.

SAP Warehouse Management System:

TOPL uses SAP system for the management activities. This provided effective processing of

inventory control and logistic requirements within the organization.

The SAP warehouse management system used in TOPL provides flexible, automated support to

assist in processing all goods movements and in maintaining current stock inventories in

warehousing complex.

Safety standard certifications of TOPL:

TOPL currently holds following two safety standard certifications:

1. ISO 9000

2. ISSSRS (International Small Site Safety Rating System)

And is expected to achieve ISO 14000 certification, related to environmental safety, by august

2012. ISSSRS is a certification created by Total group and TOPL achieved the highest grade in

this certification i.e., level 4.

Internship with TOPL:

My internship with Total Oil Pakistan (Pvt) Ltd started on 7th June 2012. I worked under the

supervision of AM Distribution, Mr. Faisal Laeeq. The project that I was assigned was called

‘Implementation and Improvement of warehouse activities in reference of applicable SOPs’

The project gave me nice opportunity to enhance my knowledge related to supply chain

management activities. By analyzing the activities of warehouse I was able to discover about

the essentials related to management of warehouse activities and by relating it with some

theories I was able to suggest improvements in the current activities.



Tasks assigned

I was assigned the following tasks during the internship program:

Study current SOPs for the standard operating procedures at TOPL warehouses and

compare it with the actual operations being done in various warehouses. I was

supposed to contact the entire warehouse incharges and visit Karachi warehouse and

TOPL plant warehouse to collect information regarding their activities with respect to

SOPs. Comparison was in terms of inventory management, product placement, product

delivery and rejection control etc.

Suggest improvements that could be made in the current warehousing activities.

SOPs studied

I was given the following SOPs for study purpose:

1. Finished product counting, reconciliation and reporting (TALP-SC-013): Covered the

operation of TALP countrywide warehouses for physical stock reconciliation and

providing daily files to Supply chain and sales team on pre-described frequency. The

procedure elaborated the methods and frequency for physical stock reconciliation and

providing each report.

2. Outgoing products (finished goods) (TALP-SC-004): Operations of TALP countrywide

stores and warehouses for the issuance / dispatch of finished products for primary and

secondary distribution.

3. Product return (TALP-SC-005): Provided guidelines for product return and its execution

in the ERP system.

4. Storage operations for packaged products (TALP-SC-012): Guidelines for good

housekeeping of products and practices that are necessary for reasons of safety and

others to ensure that lubricants are uncontaminated when applied.



Karachi warehouse visit

Karachi warehouse is located in the area of S.I.T.E. My first visit to

Karachi warehouse was on 12th of June 2012. I was directed by the

warehouse incharge there Mr. Rehan Masood who explained about

the warehouse layout and operations involved there.

The TOPL Karachi warehouse is very well-maintained. Since I have a two years of work

experience during which I have visited number of warehouses of different industries, if I

compare those warehouses with one of TOPL Karachi warehouse, my opinion would be that the

TOPL Karachi warehouse is very well cleaned and properly managed.

Comparing the warehouse activities with respect to applicable SOPs, I believe that the

warehouse incharge (WHI), the warehouse officer (WHO) and other workforce involved in the

activities of warehouse are very well trained and have sufficiently managed to follow the SOP

guidelines.

TOPL warehouses are divided into following 3 sections:

Figure 3: View of TOPL warehouses showing its 3 areas

TOPL



My second visit to TOPL Karachi warehouse was on 19th of June. I examined number of process

that is being practiced in the warehouse. I studied the following reporting systems of the

warehouse:

Event reporting and investigation form

Safety tool box meeting report

Oil spill drill report

Fire extinguisher checklist

Personal protective equipment (PPE) checklist

First aid box checklist

Fire and first aid drill report

Emergency evacuation drill form

Apart from these reports I also went through their forklift logbook and vehicle logbook. The

logbooks were used to record the details about date, timings and purpose of journey of the

forklift and vehicles. After every 200 hrs of use, forklift maintenance is done.

There were total 3 first aid boxes in the warehouse. One was in the office; second one in drums

storage area which was named as warehouse 1 and the third was in cartons storage area which

they call warehouse 2.

Safety toolbox meeting is conducted twice a month. The various PPE’s that are used are safety

jackets, gloves, mask, goggles, helmet and shoes.

Total’s safety golden rules:

For human safety and health protection, Total has published and provided its golden rules for

safety for its operations at warehouses and plant. These golden rules reinforce and complete

procedures for identifying dangers and controlling risks.

1. High-risk situations : Do not start up or shut down equipment or installations without

using the appropriate, written operating procedure.

2. TRAFFIC :Machinery/Vehicles/Cyclists/Pedestrians : Do not exceed the speed limit.

3. Body mechanics and tools : Do not carry out work if you do not have the right tools for

the job and the environment.



4. Protective equipment : Do not access installations and perform work without wearing

general or task-specific personal protective equipment (PPE.)

5. Work permits : Do not perform work without a valid work permit.

6. Lifting : Do not walk or stand under a load while lifting is taking place.

7. Work on powered systems : Do not perform work without hecking that the power and

product source supply has been rendered inoperative.

8. Confined spaces : Do not enter a confined space until isolation has been verified and the

atmosphere checked.

9. Excavation work : Do not perform excavation work without a valid work permit

comprising a map of all underground hazards.

10. Working at heights : Do not work at heights without a safety harness when there is no

collective protective equipment.

11. Change management : Do not make any technical or organizational changes without

prior authorization.

12. Simultaneous operations or co-activities : Do not perform any simultaneous operations

or co-activities without a prior inspection.

TOPL Customer support center (CSC):

Sales forecast helps in order processing, meeting customer services and demand and for the

estimate of future business sales. There are number of factors that affect the sales demands /

forecast such as seasonal impact, market situation (price, competition), last three months sales

average, sales in previous year for the same month and lead time for imported products.

Pakistan oil market sector is divided into four divisions:

1. Local & imported brand

2. Organized sector

3. Reclaimed

4. Smuggled



Oil sector in Pakistan does not benefit from monopolistic competition because it is regulated

market. The regulatory authority is OCAC, Oil Company advisory committee. All oil supplying

companies purchase base oil from NRL and other refineries.

The members of OCAC currently comprise of the country’s five Refineries

1. Pak-Arab Refinery Limited PARCO,

2. National Refinery Limited NRL,

3. Pakistan Refinery Limited PRL,

4. Attock Refinery Limited ARL and

5. Bosicor Pakistan Limited BPL,

Ten Oil Marketing Companies

1. Pakistan State Oil Co. Limited PSO,

2. Shell Pakistan Limited SPL,

3. Chevron Pakistan Limited CPL,

4. Attock Petroleum Limited APL,

5. Total Parco Pakistan Limited TPPL,

6. Admore Gas (Pvt) Limited AGPL,

7. Hascombe Storage Limited HSL,

8. Askar Oil Services (Pvt) Limited ASOPL,

9. Overseas Oil Trading Co. (Pvt) Limited OOTCL,

10. Bakri Trading Company Pakistan (Pvt) Limited BTCPL

And one Pipeline Transportation Company, Pak-Arab Pipeline Co. Limited PAPCO.

Shell is the market leader since its existence is from 60 yrs and there exist more brand loyalty.

PSO has the highest spread throughout the country.

Mr. Asim Baig, Manager Customer services, gave an overview about the sales forecasting

process in the organization. TOPL uses rolling forecast method in forecasting sales. Sales target

is given to the sales team by the Managing director of the company based on the target

distribution in automotive and industrial sector. The target is actually given by Singapore to

TOPL. The sales team then submits their sales demand to CSC who consolidates the forecasts

and check for variations or abnormal demand.



Regional sales manager (RSM) communicates their target to the National sales manager (NSM)

with respect to automotive oil and Industrial oil (AO & IO). NSM coordinate with RSM if target

and actual sales has large variation. RSM is asked for the reasons about lower sales for the

specific product. But margin is also one of the factors under consideration by NSM. If margin

meets the required level then the variation is acceptable.

TOPL sales are highly impacted by seasonal trends and other market situations because of

which some inventory remains unsalable which increase the overheads for e.g.

TOPL 70% sales contributions are in automotive division and 30% sales is in industrial division.

The volume is always kept more than the actual forecast. HDEO (high diesel engine oil) & MCO

(motor cycle oil) are directly impacting TOPL market.

4T MCO is the most saleable product of TOPL because of high demand of bikes in the market

specially Honda bike. 4T MCO is recommended for use in all 4-Stroke motorcycles of Honda,

Suzuki, Yamaha, and other manufacturers for lubrication of engines. Since TOPL was initially in

a joint venture with Atlas, 4T MCO was able to achieve high sales in the market as compared to

Quartz.

Visit to Lube Oil Blending Plant (LOBP) of TOPL:

Our first visit to LOBP was on 27th June 2012. All the internees were taken to TOPL’s plant,

LOBP, and were given an opportunity to learn and see the production process.

TOPL’s LOBP is located at Port Qasim and is one of the very well managed plants I have come

across. Our day at LOBP started with an introduction of the LOBP team. Mr. Faheem Hashmi

shared a lot of information about the history of TOPL and its plant and also told us about the

safety standard certifications that TOPL holds.

Later on, a presentation was shown to us by Mr. Ahmed who explained us about various

operations involved in LOBP. The presentation showed that TOPL celebrated completion of 1

million safe man hours on 26th of April 2012.

Any lubricant comprise of the base oil and additives. At TOPL, there are two sources of getting

the base oil.

1. Local source, i.e., from NRL, Group I base oil is bought

2. Group II & Group III base oil is imported



The additives are imported from Lubrizol, Chevron Oronite and Afton etc., in drums. And for

multi grade oils viscosity index modifier (VIM) is used which is manufactured locally. Total is a

market leader in MCO (motor cycle oils).

My second visit to LOBP was on 3rd July 2012. I had a chance to thoroughly explore all the

operations with respect to SOPs. Mr. Tahir Jamil, the warehouse supervisor at LOBP, was there

to guide me through different processes and stations involved from packaging to dispatch and

he also answered all my queries.

Stacking of cartons:

In case of 4TMCO, 65 cartons are stacked on one pallet. Each carton contains 12 bottles of

4TMCO. This is a standard stacking for all 0.7 liters of bottles. The stacking on pallet is such that

there are total 5 rows and each row contains 13 cartons in total. For balanced weight

distribution, gaps are maintained between cartons.

The standard stacking for 0.7 liters is shown in the following figure

Figure 4: Cartons stacking on pallet

At each station, the number of pallets that are stacked is counted by the end worker on hourly

basis and date is noted by the marker on the top most stacked carton of the pallet for FIFO

application. After the pallet is stacked, one of the worker moves the pallet to its desired

location using the hand trolley and then using a fork lifter the whole pallet is placed on the

racking system as shown in the figure



If a rejection is found at any station, it is placed separately and the quantity is filled in the

production sheet on hourly basis, which is then stored in the TL system at the day end.

For leakage testing purpose, after every half an hour, 2 cartons are stacked upside-down on a

pallet. This way, at the day end, there is one pallet that is fully stacked with cartons upside-

down at each final station. If no leakage found, the cartons are placed on their respective racks

the next day. However if leakage is found, it is kept separate for further inspection.

Stacking of drums:

After filling of drums and sealing of it bungs at the final station, the drums are placed in a

vertical position using hand trolley at a defined location within the plant. When the quantity of

drums is verified by the warehouse supervisor, the drums are then placed outside, on the

pallets, in such a way that the bungs of the drum should be horizontal to avoid penetration of

air & water condensation into the drum. This horizontal position of drum bungs are also called

the 3-9 position as shown in the figure below

Figure 6: Hand trolley

Figure 6: Placing the loaded pallets on the racks using fork lifter



Figure 7: Drums placed horizontally in 3-9 position

FIFO application for inventory management:

For FIFO implementation, Green card on the lot indicates those products that are ready to

deliver to the customer and orange card indicates the products to be dispatched later on. These

card signals can also be seen on the above two figures 1 and 2b.

The card system however is not used for

drums. For drums traceability, FIFO is

implemented by the batch # and

manufacturing date printed on the top of

the drum as shown in figure 8.

Figure 8: Batch no and Mfg date on drum for FIFO implementation

3-9 position

3-9 position



Quality Inspection:

At the dispatch area, the products that are ready to be loaded on the vehicle for dispatch

purpose according to given plan, quality is done by the QC incharge both of cartons and of

drums.

The quality check is done at three areas during the entire process.

1. First the quality of packaging material is done at the initial stage.

2. Quality is also done during the filling of material in their respective packaging.

3. After final packing, when the product is ready to be delivered and is placed on the

dispatched area of the warehouse, final inspection is done by the quality incharge.

The QC incharge checks the batch #, sealing of the

drum and the price printed on the drum. The tick

sign on the drum, as shown below, is an OK

indication after quality inspection by the QC

incharge, as shown in figure 9.

Figure 9: OK by QC incharge

For cartons on the dispatched area, quality is done

by visual inspection and if any carton is found

leaked; it is not to be dispatched. Figure 10 shows

leakage that was found on the cartons kept in the

dispatch area.

Figure 10: Leaked cartons at the dispatch

area



Loading capacity of drums and cartons in a vehicle:

Loading cartons or drums in the vehicle is not done on the pallets. For a 40 ft container, total

3300 cartons of 4TMCO can be loaded which corresponds to 29500 liters. For drums, total 156

drums can be loaded in a 40 ft container with double stacking. However for safety purpose 136

drums are actually loaded, with 80 on the container floor and 56 placed over the bottom

drums. For steel drums, no double stacking is allowed.

III. Findings & Gap Analysis

Some discrepancies that were found, after comparing with SOP guidelines, are explained here

briefly

There were two handling equipment that were being used in the warehouse for loading /

unloading purpose. For heavy loads fork lifter was used and for lighter loads hydraulic

trolley was available. But I did not find any instruction sheet which actually defined when to

use which type of handling equipment as described in SOP TALP-SC-012.

The SOP TALP-SC-012 describes that

there should be a freely accessible

area for fire equipment with ground

marking prohibiting the storage

around the equipment. But in the

cartons storage area there was

found piles of unused material

limiting the accessibility of the fire

extinguisher in case of an

emergency.

Figure 11: Storage of unused material limiting the accessibility for

use of fire extinguisher in case of an emergency



Some of the wooden pallets that

were used for holding the cartons

and drums were not strong

enough and some were even

broken from the corners.

Figure 12: Drums loaded on broken wooden pallet

According to SOP TALP-SC-012

guideline, the loads on pallet must

be balanced and must not

protrude beyond the pallet. A

single drum should be placed in

the middle and not on the corner

of pallet. One of the drum was

found loaded over the corner of

pallet as shown in the figure 13.

Figure 13: Drum placed on the corner side of the pallet



Despite of empty space on the

pallets, one of the drum was found

kept on the floor in the drums

storage area, as shown in the figure

14.

F

When a vehicle came from LOBP to

the warehouse loaded with drums

and cartons, one of the cartons was

found to be improperly positioned

on the drum as shown in the figure

15.

Figure 15: Improper position of carton placed on the drum

Figure 14: Drum placed on floor at Karachi warehouse



When we visited the Karachi warehouse at S.I.T.E, we had a discussion with one of the

transport contractor of the company who is responsible for the movement of products from

TOPL warehouses to its respective customers. We found out following issues:

No written instructions were provided to the contractors & drivers related to loading /

unloading, and safety measures

The drivers should have been provided with the identification card by the contractor on the

basis of which the vehicle should be allowed to enter the warehouse.

No uniforms

The first aid box and fire extinguisher in the vehicle were very dusty.

The contractor claimed that they were not able to fulfill some of the demands because of

late payment to them by the company.

The visit to TOPL plant gave all the internees and opportunity to observe various operations

there. Some of the discrepancies that were observed in the LOBP warehouse were

Many of the workforces were without the safety cap.

Wrong FIFO card displayed on the cartons lot:

Since FIFO implies that the most recent production should have to be dispatched later

(indicated by orange card) and the older production has to be dispatched earlier (indicated by

green card), a lot of cartons of 4TMCO that was the recent production of the plant was found to

be tagged with green card and the earlier production was tagged with orange card. The

warehouse supervisor was unaware about the issue and when he asked the line incharge he

told that it was done mistakenly.

Few drums were not found in defined 3-9 position of bungs:

According to SOP for storage operations, drums are stored outdoor on the pallets in such a way

that the bungs of drum should be horizontal to avoid penetration of air & water condensation

into the drum. This horizontal position of drum bungs is also called the 3-9 position. But few

drums were found with bungs position not according to one described in SOP. Two of these

drums are shown in the picture below



Figure 16: Drums storage in outdoors

For FIFO implementation on cartons, the proper procedure was not being followed. Instead

of following the batch number, the incharge was following the date that written on carton

with marker by the end-worker. This may lead to inaccuracy of FIFO application.

According to the SOP, while loading is being done on the vehicle for movement to

respective warehouses, there should also be a security supervisor there. But when products

were being loaded in the vehicle at LOBP, there was not security guard present at that time

for verification.

Figure 17 shows the minimum PPE requirement at different area of activities for the LOBP.

According to this requirement, the workforce is to wear safety helmets at worksite in

general. But few of the operators were found to be working without safety helmet.

Correct position

Incorrect position



Figure 17: Board displayed in LOBP showing minimum PPE requirement

IV. Conclusion

Having worked with the team of Total Oil Pakistan (Pvt) Ltd has given me an insight of the

operations of an oil company in Pakistan. TOPL is an organization with highly motivated,

dedicated, hardworking, energetic and enthusiastic team. The environment here is very friendly

and the team’s cooperation and support has helped me in the accomplishment of my project

objective.

I found the team of TOPL warehouse and LOBP highly keen in making sure that the standard

procedure is followed as defined in respective SOPs and although the operations at TOPL

warehouse and LOBP did follow the procedures defined in SOPs to some extent, but still there

were some minor discrepancies that were observed by me which I have already explained

above under Gap Analysis.

Since there is always some room for improvement, I have described in the next section some

suggestions for the organization that can enhance its current operations. These



recommendations are from the learning of my past work experience with Auvitronics Limited,

vendors of Indus Motor Company, where I had worked as an Assistant Manager Production and

was looking after one of the assembly departments and also from my research work and

findings.

V. Recommendations / Suggested improvements

Use of safety guard-rails:

According to SOP TALP-SC-012, there should be safety guardrails in areas where a large number

of pedestrian pass. I would suggest that since area where loading / unloading is done from the

vehicle when material comes from LOBP to the warehouse or when material is delivered to the

customers, frequency of pedestrians crossing is much more and therefore there should be a

safety guard rail there separating the area for the passage of vehicle and area for the

pedestrians.

For e.g., figure 19 shows a view of the Karachi warehouse at S.I.T.E. For safety purpose the floor

where yellow coloring is done to create a path for pedestrian, a safety guard-rail should be

installed there instead.

Figure 18: Safety guard rails



Figure 19: Loading / Unloading of material received from TOPL LOBP

Similar procedure can be adapted for LOBP, for the area where the vehicle is loaded /

unloaded.

Instruction sheet for use of forklift:

According to TOPL SOP, safety golden rule # 11 should be used for using forklift. But there were

no clear instructions in the form of written operating procedure for the use of forklift. A proper

instruction sheet should be displayed along with pictorial views with steps involved in use of

forklift and expected risks.

Rejection & on-hold Box at each station:

Since any rejection, if found during production, is kept separately for later inspection, I would

suggest that there should be a plastic box at each station in which the parts are stored. This is

because there was no defined area at any station for storing the rejection. This may create a

chance of using the rejection mistakenly.



At each station, a yellow color box can be used for parts on-hold and a red color box can be

used for rejected parts. This can minimize the chance of mistake and would also create

neatness around the working vicinity. Sample on-hold and rejection box is shown in the figure

below

Figure 20: Boxes for storing rejection and on-hold products

On-hold tag by QC incharge on the lot of rejected cartons kept on the

dispatch area:

For drums, after the inspection is done by the QC

incharge at the dispatch area, he puts a tick mark on

it which indicates that the drum is ready to dispatch.

Figure 21: OK by QC incharge

However for cartons, if any rejection is found by the QC incharge for the lot kept in dispatch

area, there is no indication by the QC incharge which would show that the lot is not to be

dispatched and is on-hold for further inspection.

RED BOX INDICATING

REJECTION YELLOW BOX

INDICATING ON-

HOLD



For e.g. there was a batch of cartons in the dispatch area for which the leakage was found as

shown in the figure below. But no sign showed that the cartons are not to be dispatched. This

may create a human error, and the worker may mistakenly load the carton on the vehicle.

Figure 22: Leakage found on cartons kept at the dispatch area of LOBP

To eliminate this mishap, I would suggest that once any leakage is found; there should be an

on-hold tag of yellow color attached with the lot, signed by the QC incharge, indicating that the

lot is to be further inspected and is not to be dispatched.

Figure 23 shows an on hold tag that could be used.

Figure 23: On-hold tag



Proper identification for drums storage area at LOBP:

For the drums storage area at LOBP, there should be proper identification with labels on the

walls for easy identification with respect to product and FIFO implementation.

Figure 24: Drums storage at LOBP

Similar procedure can be adopted for respective warehouses for theproduct dentification.

Board showing dispatches and production on hourly basis:

There should be a whiteboard at the warehouses and LOBP showing daily dispatches / delivery

and production on hourly basis. This will allow the visitors to easily monitor and understand the

operations and will also improve the warehouse management system. The board shall help in

communicating how many dispatches have been made in the whole day (S.No.), hourly

dispatches with product name, quantity and delivered to sections.

Implementation of 5s system:

5S is the name of a workplace organization method that uses a list of five Japanese words:

1. Seiri (sort)

2. Seiton (straighten)

3. Seiso (shine)

4. Seiketsu (standardize) and

5. Shitsuke (sustain)

Product identification

http://en.wikipedia.org/wiki/Japanese_language



The 5S’s characterize a continuous and never-ending methodology for creating and maintaining

an organized, clean, and safe high-performance environment. 5S has the focus of waste

reduction. The methodology is often characterized by a series of activities focused on making

sources of errors, defects and injuries visible by the users of a particular work environment. The

idea of the 5S is to run through each S in a systematic manner, spending a large portion of the

time planning and noting what waste is.

This requires that the workers need to

know the importance of 5S

implementation and the demonstration

of various 5s applications shown

practically and through videos which will

show them that how 5S can bring a

change in the organization environment.

Figure 24 briefly describes the need for 5s

implementation in TALP warehouses and

plant.

Figure 25: 5s

Objective of 5S implementation

The successful implementation of 5S requires that everyone understand why it is being used

and what the expected results are. The most obvious benefit from implementation of 5s is that

the most frustrating form of lost time in any plant due to disorganized materials / items in the

warehouse is eliminated. A key aspect is that the often-needed items are stored in the most

accessible location and correct adoption of the standardization approach means that they are

returned to the correct location after use.



The next aim is Quality. The degree of impact of dirt in a manufacturing environment,

obviously, varies with the nature of the product and its process but there are few, if any, areas

where dirt is welcome. In other cases dirt can have a serious impact on product performance –

either directly or indirectly, perhaps through compromising the integrity of test processes. Of

course, 5S does more than address dirt; an inappropriate layout can result, for example, in

product damaged through excessive movement or through the use of tooling other than that

defined as the standard. A Standard Operating Procedure for tool certification is much easier to

achieve if the tool to be certified is always in a clearly-marked location.

Another goal is improved Health & Safety. Clear pathways between workbenches and storage

racks can minimize accidents, as can properly-swept floors. As with Quality, a well-organized,

clean and tidy facility lends itself more readily to standard practice. Improving the layout of the

facility merges with the concept of visual management; if workers can see the status of plant

and of work in the facility, thus removing the need for complex tracking and communication

systems, then benefits will accrue.

5S can also be a valuable sales tool when potential customers visit; a well-organized, clean and

tidy facility sends a message of a professional and well-organized supplier.

Use of safety Calendar in LOBP & warehouse:

Warehouse and LOBP should have a record of all the accidents that has happened throughout

the month so that for future preventive measures can be taken. The recording can be in the

form of safety calendar as shown below. Every day the WHI should mark the area with green

for no accident or with red in case of an accident and should also write down the reason for

accident and preventive measure taken in a separate log book maintained by the incharge.

The safety calendar shown in figure 25 also depicts the 12 golden rules of TOTAL for safety at

work.



Figure 26: Safety calendar for TOPL warehouses and LOBP

internship report- sara haroon

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