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8/20/2019 Critic PTT
http://slidepdf.com/reader/full/critic-ptt 1/4
PTT Public Company Limited is the largest petroleum company in
Thailand. The PTT Philippines Corporation Subic is a subsidiary of the said
company. The main function of which is to maintain and operate terminal and
depot facilities for petroleum and petroleum related products. Group 3,
presented a paper which highlighted the downstream operation of PTT Subic
which is primarily the addition of chemical additive to rene petroleum and
distribution of petroleum products and lubricants. They also discussed the
di!erent segments that the company caters" retail, distribution, aviation and
commercial mar#ets. This paper serves as an evaluation of the operations
audit and recommendations made by the group for the company.
$peration %anagement provides the over&all understanding on how
management decisions are guided by the framewor# that managers adopt in
their company and provides systematic design, direction and control of
processes that been able to transform inputs to outputs benecial to the
company, customers and other sta#eholders.
The PTT $perations 'udit was well discussed by Group 3. They were
able to present how the company is able to operate based on their own
strategies and principles. (aving e)isted in the Philippines for more than a
decade the company have already established their own operational
strategies incongruence of with their corporate strategies. 'long with their
framewor#, they are able to steer the company on to their desired direction.
The operation strategy of the company is specic and precise that enables
the company to be focused on what they need to accomplish.
Since it is a subsidiary, they follow the implementing rules and
regulations set out by their head o*ce. 'lthough a few government
mandates may a!ect some of them some ad+ustments may have been made
in order for them to operate in the local setting.
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or PTT Subic, since they are on the downstream production and are
not particularly involved in producing petroleum, the bac#bone of their
operation is focused on further processing of their base product. %ost of their
e)penses are geared towards importation of petroleum from their sole
supplier which is their %ain $*ce located in Thailand. or additives, they
only have a handful of suppliers which are located locally. The company-s
activities are mostly focused these operations and processed good deliveries
to retailers. They ta#e in the cost of deliveries and do not charge them on
their customers.
or product design, PTT Subic is mostly concerned with two ma+or
categories of products, high volume low variety petroleum products and high
variety low volume lubricant products. They have a limited array of products
but only di!er on the uality of products and percentages of chemicals
involved. They may only have a few items on their product line but this due
to their idea of serving low cost petroleum products to customers. This one of
their competitive advantage from other leading petroleum, o!ering cost
e*cient products. 'dding more items which would need further processing
would only raise their cost which would then increase their price.
PTT acilities in the o*ce have the minimum reuirement for bac#
o*ce operation. Some lay out o*ce may need to be rearranged in order to
to minimi/e time consumption and loss of data for interdepartmental
interface. This applies for the mar#eting and accounting department. Some
of the o*ce locations may be a bit in uestion, li#e location of the 0T Sta!
from server area and the o*ce of the $perations %anager being on the
ground 1oor. or its operations layout, it is somehow e*cient and cost
e!ective in the sense that they accessible to their customers through
national road accessibility and the e)istence of the pipeline connection from
Subic to Clar# lessens the costs of operation.
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(owever, location wise, they may face other cost especially on the
cultural side. They are located on the 2oton 'rea which is under the cultural
grounds4 of the 5anawan Community of the 'estas. 0n the coming years,
when the 6ational Council for 0ndigenous People 76C0P8 formulates the
necessary paperwor#, a portion of the company-s revenue as well as the
other companies within their cultural grounds will be given to the community
as homage for use of their land.
or (uman 9esource, their employees- benets are not well presented.
They only presented the wor# hours, labor uantity and needs for each +ob
but not necessarily the whole recruitment process, employee pac#ages and
other benets li#e manpower development, incentive programs and bonuses.
This is in reference to the performance evaluation wherein the satisfaction of
employees are rechannelled on their uality of service and e!ective
performance on their wor#.
or :uality %anagement, although PTT Subic has been a recipient of
numerous awards from Thailand 7Thailand :uality 'wards8 and the
Philippines :uality 'wards which all follow the 2aldrige ;)cellence program,
PTT still needs to focus on the improvement of their service uality li#e
emission testing for customers, incentives and the li#e to further uplift
customer satisfaction. Their focus on the product may be e)ceptional but
they too need to cater to their customers. or further improvement they may
need to acuire 0S$ certication which entails them to ma#e changes on
their processes, documentation and other areas in order to ualify.
$verall, PTT Subic for a short period of time has already progressed as
an institution. They were able to have a strong hold of their own identity as
an organi/ation, have their own mar#et share, and have a distinct variety of
products and good facilities from layout and location. (owever, li#e all things
there are still areas that need improvement. These things can be
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accomplished through the application of various theories and strategies
bac#ed up by e)perience and current mar#et trend and also with proper
manpower supervision and development.