Oman Oiltanking Terminals & Co. LLC Operations Management Report

This report provides an analysis of the operations management of Oman Oiltanking Terminals & Co. LLC (OTO). It examines key aspects such as quality management, inventory management, and process design, highlighting their significance in the oiltanking industry. The report discusses the importance of quality measures for service effectiveness, inventory control techniques, and the consideration of service characteristics in process design. It also explores the strengths and weaknesses of OTO, including its service offerings, capacity, and reliance on the domestic market. The conclusion emphasizes the need for expansion into the international market to increase revenue and market share. The report also includes references to support the analysis.

Running Head: Operations and Project Management
Oman Oiltanking Terminals & Co. LLC
Operations and Project Management

Operations and Project Management 1
Table of Contents
Introduction......................................................................................................................................2
Operation management of OTC.......................................................................................................2
Quality management....................................................................................................................3
Inventory Management................................................................................................................3
Process Design.............................................................................................................................4
Strengths and Weaknesses of OTC..................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Operations and Project Management 2
Introduction
Operations management has two attributes i.e. operation and management. Operations are
executed to accomplish the tasks in an appropriate manner while management is responsible for
managing and directing all the tasks of the organization in such a way so that desired outcomes
could be acquired. In this report, operations management of Oman Oiltanking Terminals & Co.
LLC (OTO) will be covered with the view to analyse their efficiency and position in the
international marketplace. It is positioned at entrance of the Arabian Gulf. Oman is yet to open a
world class port in Sohar which will describe the significance of new era for Sultanate. Apart
from this, it primary activities are providing storage facilities to other companies in relation with
petroleum products, gases and chemicals. Primary aim of the organization is to serve the Middle
East region and from Gulf to other continents and regions (Slack, Brandon-Jones & Johnston,
2013).
Primary activities of an oiltanking company are to adopt advance and effective quality measures
for improving the service effectiveness and quality as quality factor plays vital role in the success
and growth of oiltanking industry. Apart from the quality measures, oiltanking companies also
need to concentrate over its process designing, inventory management, etc. This helps the
organization to promote its services in the target market which is essential with the objective of
uplifting the position of the organization in the market as well as to accomplish desired goals and
objectives in the market (Oiltanking Terminals & Co. LLC, 2018).

Operations and Project Management 3
Operation management of OTC
Figure1: Process Description
In operation management of Oman Oiltanking Terminals & Co. LLC, various processes are
included which focuses on management of activities, improvisation of service quality as well as
to manage activities of the organization in appropriate manner so that the desired goals could be
accomplished. In the process management procedure, organization analyses available resources
of within the workplace and also focuses over adopting required measures so that the
organizational performance could be uplifted along with developing a significant image in the
target market. In this report, quality management operation of OTO will be discussed in
relevance with process designing, quality and inventory management (Olhager, 2013).
Quality management
This factor plays crucial role in OTO’s operations as it is a service based enterprise; hence,
improving service quality is a necessity in terms of maintaining effective position in the market.
With the help of providing high quality services to its target audience, OTO has been able to
maximise returns and distributing attractive benefits to its stakeholders. Adopting advanced
quality measures helps the organization to develop and maintain its significant image amongst its
potential and target customers. Along with this, it also helps the company to upgrade its service
quality so that the customer base could be increased and organization could be able to expand its
operations in the target market (Gülcan, et. al., 2013).

Operations and Project Management 4
In recent years, complexities in this industry is increasing rapidly and due to this, oiltanking
companies have moved towards invention in order to make their separate identity from its
competitors as well as to attain competitive advantage in the target market. Apart from the
adaptation of unique measures, OTO focuses over improving customer care services. Customers
are most important segment of a service-based enterprise, thus, adopting customer care measures
has helped the organization to develop positive image amongst the target audience for company.
Organization has adopted various safety measures which are necessary in terms of their
operations (Waterman, 2014).
Inventory Management
This is a crucial operation for oiltanking industry which directly affects performance and
position of the organization in the target market. Inventory management deals in managing raw
material, finished goods, deliveries, sales and all other attributes which relates with the
inventory. Generally, this process is executed by a manufacturing industry and as OTO is also
one of those enterprises, thus, inventory management technique could be adopted by them. With
regards to the management of raw materials, work in progress, etc., OTO uses sundry measures
such as independent demand, dependent demand, just in time inventory, etc. (Gulcan, et. al.,
2014).
Effective management of inventory helps the organization to measure reorder point, asset
tracking, service management, product identification, and inventory optimisation. All these
situations have a huge impact over organizational performance. Optimum utilisation of inventory
management technique has increased OTO’s efficiency through which they are providing
number of services such as storage of petroleum, chemical and gases, transfer from tank to tank,
truck container loading, injection of activities, etc. (Gorla, Somers & Wong, 2010).
Process Design
While executing process designing for an oiltanking company, it is necessary to consider all
relevant factors which plays crucial role in performing the tasks of the organization. In this
scenario, OTO is rendering various services, thus, it is required to consider characteristics of
service and other relevant factors of service. This is necessary for designing of the process as

Operations and Project Management 5
well as to manage operations of the organization in an effective manner (Fan, 2012). Service
characteristics are:
 Intangible in nature
 Instant
 Can be consumed and produced at the same time, etc.
Apart from the characteristics of service, OTO also considers various dimensions of service and
quality in process designing which helps them to enhance its performance in the marketplace.
Primary objective of process designing is to produce effective services so that consumer
satisfaction and related objectives could be acquired. OTO’s process design has the potential to
produce effective services through utilisation of available resources (Jingfeng, et. al., 2013).
Apart from this, it has been observed that their process management techniques are effective
enough to maintain consistency in managing service quality.
Quality management is a vital aspect for service based enterprises, thus, it is necessary for them
to conduct all the activities in such a manner so that organization could be able to uplift its
performance along with the development of an effective image in the target market. Above
discussed activities describe the significance of quality management and it also helps the
organization in decision making process. Decision making process involves analysing relevant
scenarios and reaching to a final call through utilising all available resources so that desired
outcomes could be acquired (Jahanshani, et. al., 2014).
Following measures could be adopted for uplifting organizational performance:
 Keeping employees in loop: It has been observed that sharing company’s missions,
vision with the employees makes attainment of organizational desired goals an easy task.
Thus, while making plans for accomplishment of goals and objectives, it is necessary to
involve the employees in decision making process and it should be ensured that the plans
are developed as per employee’ efficiency.
 Technology upgradation: In oiltanking industry, technological factor plays vital role.
Thus, it has been recommended to OTO to adopt technological advancements on regular

Operations and Project Management 6
basis. This will help the organization to meet up with the latest trends, customer needs
and wants, etc. (Wilson, et. al., 2012).
Strengths and Weaknesses of OTC
Reviewing strengths and weaknesses helps the organization to analyse its efficiency in
comparison with the external business environment. Strengths are positive points for an
organization which describes its capabilities while weaknesses describe incapacities of
organization. Both these factors are part of internal analysis and control over these measures
could also be imposed.
Strengths:
 Oman Oiltanking Terminals & Co. LLC offers various services such as product storage,
ISO container loading, circulation and blending of homogenizing, pipeline transfer, etc.
 Petroleum, chemical, gas, etc. products are handled by OTO.
 It has the largest capacity of 1,366,640 cbm across the country.
 Apart from this, OTO also offers unique pipeline connections such as ORPIC Refinery,
OMC methanol plant and AOL Aromatics plant (Jahanshani, et. al., 2014).
Weaknesses:
 Much dependent over domestic market for growth and expansion
 Due to limited market share, low revenues and profitability.
In order to overcome from these weaknesses, organization is required to adopt effective
measures along with sources for arranging funds. This is required for expansion of the
organization in the international market (Wilson, et. al., 2012).
Conclusion
From the aforesaid information, it can be concluded that OTO is executing its operations in
domestic market, thus, expansion is required. In this report, operation management of OTO has
been discussed in respect of quality management operation. Along with this, efficiency of the
organization has also been discussed in comparison with its limitations. Along with this, major

Operations and Project Management 7
products and services of the organization have also been discussed. Scope of improvement has
also been discussed through which OTO could expand its operations to other parts of the globe
which will lead to increase the revenues and market share in the international oiltanking industry.

Operations and Project Management 8
References
Fan, Z., 2012. Inventory Information Collection and Management System of Gas Station
[J]. Computer Measurement & Control, 7, p.088.
Gorla, N., Somers, T.M. and Wong, B., 2010. Organizational impact of system quality,
information quality, and service quality. The Journal of Strategic Information Systems, 19(3),
pp.207-228.
Gulcan, T.A., Esmer, S., Zorba, Y. and Sengoniil, G., 2013. Factors Affecting Operational
Efficiency of Chemical Cargo Terminals: A Qualitative Approach. Marine Navigation and Safety
of Sea Transportation: Maritime Transport & Shipping, p.27.
Gülcan, T.A., Esmer, S., Zorba, Y. and Şengönül, G., 2014. Determinants of Operational
Efficiency at Chemical Cargo Terminals. TransNav, International Journal on Marine Navigation
and Safety od Sea Transportation, 8(2).
Jahanshani, A.A., Hajizadeh, G.M.A., Mirdhamadi, S.A., Nawaser, K. and Khaksar, S.M.S.,
2014. Study the effects of customer service and product quality on customer satisfaction and
loyalty.
Jingfeng, Z., Guangping, S., Gangqiang, Z. and Jinling, L., 2013. Optimization of the flash gas
treatment process for a high-H2S natural gas purification plant. Natural Gas Industry, 33(7),
pp.108-112.
Kassim, N. and Asiah Abdullah, N., 2010. The effect of perceived service quality dimensions on
customer satisfaction, trust, and loyalty in e-commerce settings: A cross cultural analysis. Asia
Pacific Journal of Marketing and Logistics, 22(3), pp.351-371.
Oiltanking Terminals & Co. LLC, 2018. Services. Accessed on 21st March 2018 from
http://www.oiltanking.com/Oiltanking/en/services/terminals/oil_storage/middle_east/
oiltanking_oman_sohar.php
Olhager, J., 2013. Evolution of operations planning and control: from production to supply
chains. International Journal of Production Research, 51(23-24), pp.6836-6843.

Operations and Project Management 9
Slack, N., Brandon-Jones, A. and Johnston, R., 2013. Operations management. Pearson.
Waterman, A.S., 2014. Service-learning: Applications from the research. Routledge.
Wilson, A., Zeithaml, V.A., Bitner, M.J. and Gremler, D.D., 2012. Services marketing:
Integrating customer focus across the firm. McGraw Hill.