Mehreen Fida (BB-07-04)

• Umay Ammara BB-07-28

• Farrukh Iqbal BB-07-53
• Mohsin Riaz BB-07-16
• Faiza Khalid BB-07-66
• Abdullah Farooq BB-07-42
• Ameer Usman BB-07-49
• Salman Tariq BB-07-57
 Presentation outline
•Introduction of shell
•What is TQM
•Some information
•Principles of TQM
•What is ISO
•ISO standards
•Quality management system
• Comparison with PSO
• Benefits and Pitfalls of TQM
•Recommendations
•Conclusion
TOTAL Quality Management:

is the art of managing the whole to achieve excellence.

Total----------Made up of the whole.

Quality--------Degree of excellence a product or
service provides.
Management----Act, art or manner of handling,
controlling, directing, etc
• The word ‘Shell’, its emblem and
colors have stood for quality and
professionalism in our products
and services.

• The exact origins of the Shell, red

and yellow are hard to define.

Marcus Samuel
• Over 100 Years presence in the Subcontinent Dating Bach To
1899

Royal Dutch Burmah Oil Company

• After independence, it changed its name to Burmah shell Oil

and Distribution Company.
• In 1970, it got changed to Pakistan Burmah Shell Ltd. {PBS}
• In 2001-2002, Shell Petroleum Company increased its market
share to 76% in Pak Shell Ltd.
Shell has over 100 years presence in the Subcontinent
• We offer a complete range of services to develop and
implement a major gas project - from the exploration for
natural gas through to distribution and end use.
• Working with our partners, both at a global and local
level, we can deliver a solution that is carefully tailored
to customer requirements.
• The Shell Group's gas business is carried on mainly
through joint ventures. However, in almost all cases we
provide the technical and operational leadership.

• We have pioneered the gas industry since its inception

and have invested huge amounts of capital in establishing
a gas infrastructure. Our long-term vision has enabled us
to become both a market and technical leader
• We have more than 100 years of experience in hydrocarbons.
Our policy of forging close ties with local communities and
governments allows the Shell Group to operate successfully in
more than 140 countries.
• The Shell philosophy is to employ local staff wherever possible
and become a fully integrated and valued member of the host
country's community both in a business and social sense.
• Our six lines of business are:
– Liquefied Natural Gas (LNG)
– Market Access
– What is Gas to Liquids?
– Power Generation
– Coal Gasification
– Marketing and Trading
Shell for Businesses Shell for Motorists
•Exploration & Production
• Shell station locator
•Gas & Power
•Lubricants, Fuels and Bitumen • Car oils
•Chemicals • Motorcycle oils
•Renewables
•Shipping & Trading • Shell fuels
•Shell Global Solutions • Shell credit cards
• Shell fuel & fleet cards
• Loyalty schemes
 Vision……
• We aim to work closely with our customers,
partners and policy-makers to advance more
efficient and sustainable use of energy and
natural resources.
 Mission Statement….
1. Our first priority is Safety.

2. To enhance and establish a professionally sound identity. 

3. To provide a lead to the indigenous Petroleum Industry in

finding of solutions the best transport solution.
To hire qualified and professional staff for working

To operate business with good and safe vehicles.

Company is working as a semi professional hauler

with Shell Pakistan Ltd. Our working activities are
based on different department which lead by
professional staff.
 Objectives:
• To engage efficiently.

• To engage responsibly and profitably in oil, gas,

chemicals and other selected business.

• To participate in the search for and development of other

sources of energy.

• Meeting customer’s needs and the world’s growing

demand for energy.
 Values:
• Shell Pakistan Ltd. employees share a set of core
values:
– Honesty,
– Integrity
– Respect for people
– Belief in the fundamental importance of:
• Trust,
• Openness,
• Teamwork and Professionalism,
• Pride in what we do.
do
 Responsibilities: 1. To shareholders:
Shell Pakistan Ltd.
recognizes five areas of 2. To customers:
customers
responsibility. 
3. To employees:
It is the duty of management
continuously to assess the
priorities and discharge 4. To those with whom
these inseparable we do business:
responsibilities on the basis
of that assessment.
assessment
5. To Society:
 What is quality?

• Dictionary has many definitions: “Essential characteristic,”

“Superior,” etc.
• Some definitions that have gained wide acceptance in various
organizations: “Quality is customer satisfaction,” “Quality is
Fitness for Use.”

• The American National Standards Institute (ANSI) and the

American Society for Quality (ASQ) define quality as:
“The totality of features and characteristics of a product or
service that bears on its ability to satisfy given needs.”
 What Is TQM?
• TQM is a management philosophy that seeks to integrate all
organizational functions (marketing, finance, design,
engineering, and production, customer service, etc.) to focus
on meeting customer needs and organizational objectives

Improve quality Decrease cost because Productivity improves

of less rework, fewer
mistakes.

Long-term Stay in business Capture the market

competitive with better quality and
strength reduced cost.
 History of Total Quality Management

• Total Quality Management is a management approach that

originated in the 1950's and has steadily become more
popular since the early 1980's.

• Total Quality is a description of the culture, attitude and

organization of a company that strives to provide customers
with products and services that satisfy their needs.

• The culture requires quality in all aspects of the company's

operations, with processes being done right the first time and
defects and waste eradicated from operations.
Traditional Mgt Total Quaity Management
 Customer Oriented
 Product Oriented.
 Equality of service and cost
 Second priority to services
and costs.  Long term
 Short term decisions.  Prevention
 Emphasis on detection
 System
 Errors In Operations.
 Responsible for Quality  Life cycle costs, Partnerships.
Control.
 ISO Defined
Quality TQM

• Quality is excellence "TQM is a management

that is purpose’ approach for an organization,
centered on quality, based on
• ISO 9000:2000 the participation of all its
definition of quality- members and aiming at long-
It is the degree term success through
to which a set of customer satisfaction, and
inherent benefits to all members of the
characteristics fulfills
organization and to society."
requirements.
ISO 8402:1994
How is it related to Shell?

TQM at Shell
 Two/2 Laboratories are there to check the quality, one
in Karachi and one in Machi

Technical centre which is the refinery located at

Kemari .

On site are the service stations.

Technical centre which is the refinery located at Kemari.
• On site service stations
 Company owned company operated.
 Dealer owned dealer operated.
 Dealer owned and company operated.
 TQM six basic Concepts
• Leadership
• Customer satisfaction
• Employee involvement
• Performance measures
• Continuous improvement
• Supplier partnership
 Leadership
• Someone who can take a group of people to a
place they don’t think they can go.

• Royal Dutch shell's CEO VISION as a leader:

“Working with people focuses openness, trust,
teamwork, and the importance of giving
individual the freedom and support to get on with
the job.( “I AM A PEOPLE PERSON”).
 Characteristic of Good leader

characteristics
of a good leader

Good
Balanced Positive role Positive Persuasiven
communication
commitment model skills influence ess
 Regional manager as
leader have following
characteristics
1. Balance commitment
2. Role model
3. Good communication
skills.
 Principles of leadership for Quality
• Customer Focus:
The SHELL primary goal is to meet or exceed
customer expectations in a way that gives the
customer lasting value.
• Looking for faults in systems
TQM manager visits sites to ensure quality and look
up for faults
• Team work:
It observed in a Regional office that regional manger
create such an environment that each employee
involve in decision making.
Customer satisfaction

CUSTOMERS

Territory/ TQM
managers

Regional
manager

Country
mang.

CEO
 Customer Perception of quality
• Important factors that influenced purchases show
the following ranking
• Performance
• Features
• Service
• Price
• Reputation
 Employee Involvement
• Motivation
utilization of employee involvement to achieve
process improvement.
Shell motivates employees in the following ways:
1. Promotions
2. Rewards
3. Job orientation based on skills
4. Comparative pays are provided
5. Security is provided in sensitive areas
 Continuous Process
Improvement
Improvement strategies
PDSA Cycle
Continuous Process Improvement
Cycle
 Supplier Partnership
Sourcing
Suppliers of Shell
 Performance Measures
Objectives
Typical Measurements
• Quality based
organizations achieve
perfection by
continuously
improving the business
and production
process.

• Shell follows this

principle by planning,
controlling

and improving its

processes.
 Improvement

Strategies

Repair Refinement Renovation Reinvention

 Performance Measures
The 6th and final principle of TQM is measure. Managing an
organization without Performance measure is like a captain of
a ship without instruments.
Objectives :
Measures are used to attain the following objectives:
 Determine which process need to be improved
 Indicate process gain and loss
 Compare goods with actual performance
 Determine the overall performance of the organization
 Supplier Partnership

• Key to obtain high quality products

• Customers and suppliers have same goal
• Long-term relationship of trust and loyalty
• Just-in-time concept
Sourcing is the source of supply.
It has three types:
1: Multiple
Use of two or more suppliers
2: Sole
Organization is forced to use only one supplier
3: Single
A planned decision by organization to select one supplier for an
item when many are available.
Shell has multiple sourcing.
Suppliers of Shell
There are total 7 refineries in Pakistan
• PARCO
• National oil Refinery
• Attack refinery limited
• Pakistan refinery
• Karachi Refinery limited also known as Bosicor
• Indus Refinery limited
• Coastal or Khalifa refinery limited(PARCO2)
 Installation through pipelines is the best way of
supply which assures the quality as compared to
installation through tanks.
 International Organization for
Standardization
• Founded on 23 February 1947
• Headquartered in Geneva, Switzerland
• Non-governmental organization
• World's largest developer and publisher of
International Standards.
• Its logo ISO, Greek word meaning equal.
• Purpose is to to equalize and standardize across
cultures.
• A network of the national standards institutes of 159
countries
ISO Standards
ISO's main products are the
International Standards.

ISO has developed over 17500

International Standards on a
variety of subjects and some 1100
new ISO standards are published
every year.
year
Management standards
ISO standards that provide
requirements or give guidance
on good management practice
are among the best known of
ISO's offering.

Of these, two have achieved truly

global status and are now
thoroughly integrated with the
world economy:
 ISO 9000 family
• The ISO 9000 family addresses "Quality
management".

This means what the organization does to fulfill:

• the customer's quality requirements, and

• applicable regulatory requirements, while aiming to
• enhance customer satisfaction, and
• achieve continual improvement of its performance in
pursuit of these objectives.

• The Quality Management System standards created

by ISO are meant to certify the processes and the
system of an organization and not the product or
service itself. ISO 9000 standards do not certify the
quality of the product or service .
 ISO 14000 family
The ISO 14000 family addresses
"Environmental management".

This means what the organization does to:

• minimize harmful effects on the

environment caused by its activities, and
to
• achieve continual improvement of its
environmental performance.
ISO 9001:2000
The requirements for
quality management
systems.
ISO 14001:2004
The requirements for
environmental
management
systems
 Specific Applications
Sector Standard or series of standards
Automotive ISO/TS 16949:2002
Education IWA 2:2007
Energy PC 242, ISO 50001
Food safety ISO 22000:2005
Information security ISO/IEC 27001:2005
Health care IWA 1:2005
Local government IWA 4:2005
Medical devices ISO 13485:2003
Petroleum and gas ISO 29001:2000
Ship recycling ISO 30000
Supply chain security ISO 28000:2007
 Understand the Basics – What
management standards are?????????
•They are generic
•Provide a model to follow
•The Plan – Do – Check – Act (PDCA)
cycle is the operating principle of ISO's
management standards.
standards
Certification
Certification refers to the issuing of written assurance (the
certificate) by an independent external body that it has
audited a management system and verified that it conforms to
the requirements specified in the standard.
 ISO 9001:2000 Certification
• The scope of the QMS should be based on:

• The nature of the organization's products and

their realization processes
• The result of risk assessment
• Commercial considerations, and
• Contractual, statutory and regulatory
requirements.
ISO 9001:2000 Certification
Customer Focus
 Researching and understanding customer needs and expectations.

 Ensuring that the objectives of the organization are linked to customer

needs and expectations.

 Communicating customer needs and expectations throughout the

organization.

 Measuring customer satisfaction and acting on the results.

 Systematically managing customer relationships.

 Ensuring a balanced approach between satisfying customers and other

interested parties (such as owners, employees, suppliers, financiers, local
communities and society as a whole).
QMS: Quality Management System

A quality management system tin accordance

with ISO 9001:2000 will provide your
organization with a set of processes that ensure a
common sense approach to the management of
your organization.
 ISO9001:2000
• It is a generic name given to a family of standards
developed to provide a framework around which
a quality management system can effectively be
implemented.
 Implementing QMS
• Purchase the standard.

• Train the workforce

accordingly.

• Practical implementation.

• Review process.
 Flowchart of the Audit Process
Visit to the service station

Check quality and quantity from

every nozzle at the station.

Precise
one liter
quantity

Yes
No

Check
quality from
lab

Yes
No
Service station meets
the standards

Anyone of the following corrective actions is taken depending on the severity of

the non conformity.

1) Warning and probation period

2) Penalty of Rs. 25,000 to Rs. 100,000
3) Closing of the station
 Benefits and Criticism of ISO
Benefits

1. Policies and objectives set by top management.

2. Understanding of customers requirements and ensuring
customer satisfaction.
3. Improved internal and external communication.
4. Greater understanding of organization’s work.
5. Clear responsibility and stated authority.
6. Improved use of time and resources.
7. Improved motivation and morale.
8. Greater consistency and traceability of products and
services.
 Criticism
1. Very expensive to register.

2. Takes a lot of time to get registered.

3. The company some times is just interested in certification rather than

improvement.

4. Practical implementation is difficult.

5. Some standards are very un-realistic for new organizations.

6. Competition among certifying bodies leads to defects.

7. No real watchdog agencies to overview the implementation.

•
 Comparison With Respect To
• Performance Perspective
• Environment Perspective
• Quality Perspective
 Performance Perspective
Pso Shell
• Authentic performance • Authentic performance evaluation
evaluation • Feedback
• Feedback • Performance aligned with goals
• Constitutes an integral part and objectives
of the appraisal management • Awards offered to employees on
system 6 month basis
• Performance aligned with
goals and objectives
• Awards offered to
employees on yearly basis
 Environment Perspective
Pso Shell
• Employee Recognition • Employee Recognition
• To boost the morale of employees • To boost the morale of employees
• Acknowledges employees and to ensure that their efforts are
qualities beyond the call of duty appreciated
performance • Go beyond the limits to make sure
• Motivation Survey the employees of the organization
• Recognize the get what they must deserve and
–
expect
needs
– opinions • Motivational Seminars and
– concerns
Activities
– perceptions of the employees • Recreational Trips
• Communication • International Tours
• Interactive sessions are held • All organizational changes are
regularly announced
• Fixed Jobs in a certain • No fixed jobs
Department • Job rotation facility provided to
• No Job rotation all levels of employees
• High ethical standards • Employees can switch from one
• Not necessarily maintained department to another if they
• Employees get stuck to one type want
of job • Training workshops held to
ensure that they are at their best
when they do so!
• High ethical standards maintained
at every cost!
 Quality Perspective
Pso Shell
• SHELL ranks the 1st!
• Currently, PSO ranks 4 !
th
• Has been so for 5 years in a
• The machinery and equipment
row
is not the best in the industry
• The latest machinery and
• There are standards for the
equipment
maintenance of the sites
• Pipelines system is highly
• But, not necessarily followed
equipped
• Hygienic conditions could
• Site maintenance has never
really be improved!
been compromised
• Strict policy for the hygienic
conditions of the filling stations
 Benefits of TQM
• Improved Quality
• Employee Participation
• Teamwork
• Customer satisfaction
• Productivity
• Effective communication
• Profitability
• Enhanced Market share
 Pitfalls
• TQM initiatives have been prone to failure because of
common mistakes. These include:
• allowing external forces and events to drive a TQM initiative
• an overwhelming desire for
– quality
– awards
– certificates
• organizing and perceiving TQM activities as separate from
day-to-day work responsibilities
• senior management underestimating the necessary
commitment to TQM
 Conclusion!!!!
• SHELL, founded in 1886 is now one of the biggest giants in the business
• Shell Pakistan sticks to the vision of delivering the best in the quality
• Customer satisfaction comes above all else
• Total Quality Management, TQM is a management
philosophy that seeks to integrate all organizational
functions (marketing, finance, design, engineering,
and production, customer service, etc.) to focus on
meeting customer needs and organizational
objectives
• Shell Pakistan has made this its mission
• We visited the office building, different
filling sites and can conclude that the
organization has really made it its
mission to deliver the very best in quality
to the nation!
• Its not always that easy to live up to the
expectations
• TQM was implemented in Pakistan in
1993
• Different officials of the organization
stressed this point and maintained that its
what they have always tried to achieve
 Shell at number 2 in Pakistan
• Large governmental
support to PSO
• Pakistan economic and
political crisis
• I would like to share with you all some
statements made by the CEO of Shell
 “Shell is acknowledged as one of the
largest global businesses of the world.
Being so, we have to maintain what has
made us what we are today! We must
devote ourselves to providing the very
best in the quality to all of out
customers. To put the people above and
beyond anything”
 “We must acknowledge that the
organization has a duty to perform and
that is what we would do! For us, the
environment, the people, the safety
would come before anything else!”
 Recommendations
• Employee competence
• The organization should tent to make itself even more competitive
• The organization’s officials were not that cooperative!
• The organization should strive to and play its role in setting the prices of
petrol at a lower value!
• The organization is somewhat being dictated by OGRA, and in some way
by PSO, as PSO is a government operated organization. Shell should try to
make its place such that no other organization could affect the way it does
its operations
We have carefully studied shell quality
management system and conclude that:
Thank you for your attention
& any questions?