critic ptt

8/20/2019 Critic PTT

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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.



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.



(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



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.

critic ptt

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