Global Planning

HOW TO BE GLOBAL
The first requirement to venture into this journey is to acquire knowledge and understanding of global business environment. It is like swimming - it is one thing to swim in a swimming pool, and another to swim in deep sea. As such, any business, which wants to be a global player, must know the nature of the global market place. A sound knowledge of different countries and their economies, managing cross cultural teams, predicting global market upheavals and getting prepared for forecasting them are some of the things which a business firm must understand, without which it will be impossible to succeed.

Corporate Profile
Incorporated on 17th august 1974 under the Malaysian Companies Act Of 1965. Custodian Of National Petroleum Resources under the Malaysian Petroleum Development Act of 1974. It is a diversified and all over integrated and formed petroleum company into the following basic areas of work:

PSC Manager

PSC & Project Manager Integrated Oil Company

Global Player

1970s 1970s

1980s 1980s

1990s 1990s

2000s 2000s

E and P Refining Marketing Distribution Transmission LNG and Gas Petrochemical Trading

Petronas And Subsidiaries

Petronas

Wholly Owned Subsidiaries 40

Partly Owned Subsidiaries 15

Associated Companies 20

Overseas 13

Domestic 27

Overseas 1

Domestic 14

Overseas 5

Domestic 15

Petronas Integrated company

Petronas Business Performance

Petronas A Regional Petrochemical Hub

Petronas towards Globalization

Vision : A leading oil and gas multinational of choice. Mission : They are a business entity and petroleum is the companys core business. Their primary responsibility is to develop and add value to the natural resource. Object of the company: Contributing towards the well-being of the people and the nation.

Factors Affecting Petronas towards Globalization

Internal Factors :
Declining the domestic petroleum resource base. Loosing valuable skilled staff. Many on-going projects require efficient project management. Grow business with prudent portfolio management. Undertaking organizational transformation for quantum leap competitiveness.

External Factors : Volatile crude oil price. Competition with super major oil companies. Riskier frontier exploration. Tight labor market. Surplus capacity worldwide. Cyclic petrochemical product prices. Emerging market in fast growing regions. Environmental regulations.

Risks and constraints

Business risks: Change in government Change in judicial system War, terrorism and political unrest Global and regional trade protectionism Lack of Tax and financial system Bureaucracy, lengthy procedures & process

Physical Constraints: Poor infrastructure Unavailable skilled labor Employee security concerns Inadequate communication accesses Travel restrictions, access to international routes

Going Global requires transformation in competency and mindset

PAST Operational Mgmt. Volume Cautious Mode Inward Looking Technology an afterthought

FUTURE Global Mindset Risk taking Strategic thinking Value (Monetization) Technology is the solution

GAP

Case Study - 1
TATA has made major forays into global markets. TATA Motors, earlier called TELCO is upbeat after a speculating comeback in the past two years. The recovery has been led majorly by the small car INDICA.

Contd
For Ratan Tata, automobiles is a strong passion. Within a Tata group, Tata motors enjoy a special place. And for that genuine reason, Ratan Tata is planning to make the company a global player.

Case Study - 2
The client
A leading provider of semiconductor components to electronic equipment manufacturers

Business problem
The client's order planning and scheduling systems were not integrated across sites and facilities. With ever increasing demand of specialized products and shorter lead times the company was facing planning and scheduling problems leading to inappropriate delivery commitments and inefficient resource utilization.

Contd
Challenges Wipro was engaged by client to develop and deploy the global planning system at its 3 Test sites. The challenge before Wipro was to implement internal supply chain management solution to enable a shift from mass production to customized one. The project required an in-depth understanding of the supply-chain dynamics of the semiconductor industry.

Wipro solution
Wipro solution was to develop this application in 3-Tier architecture. The solution was developed in four phases: Data Integration, Global Planner, Factory Planner, and Dispatcher and Plan Manager. The solution addressed the key issues of determining the product mix, the site of production, due date and batch size of production (what, where, when and how much). The required data integration solution had to interact with 20+ external systems which rendered the task of development extremely complex and time consuming. The whole application had to be developed in 7 iterations to ensure full proof quality of the solution.

Business benefits
The solution by Wipro offered numerous benefits to the client. The new global planning and scheduling system helped in developing a scheduled plan for each production site that led to optimized and better use of company's resources. It integrated data distributed across sites through a centralized common Master database that helped in providing an integrated view of the organization. The solution had a site-specific factory scheduler and absorbed efficiently all the variations happening at global level. It helped in tracking product movements at the respective shop floor and addressed any fluctuations in the production system.

Summary and Conclusions

Domestic operations have set a solid foundation for PETRONAS to enter into the globalization era. As a new company, the international space provides a challenging and competitive environment to PETRONAS. Strategic partnering and alliancing helps accelerate chance in the international business. Competency and mindset transformations are essential in the more challenging and competitive business environment.