Table of Contents

Introduction: .................................................................................................................... 1 Industry Overview: ....................................................................................................... 1 Attock Refinery Limited ................................................................................................... 2 History: ......................................................................................................................... 2 Hierarchy of ARLs Management ................................................................................. 3 Products: ...................................................................................................................... 4 Vision ........................................................................................................................... 4 Mission ......................................................................................................................... 5 Total Quality Management Definition according to ARL: .............................................. 5 Quality According to ARL: ............................................................................................ 5 Health, Safety, Environment and Quality Policy: .......................................................... 5 Prime Product: ............................................................................................................. 6 Quality Council & Quality Control Lab: ......................................................................... 7 Structure of QCL .......................................................................................................... 8 Analytical Lab:.............................................................................................................. 8 Environment/T.B.P Lab: ............................................................................................... 8 CFR Lab:...................................................................................................................... 9 GC Lab:........................................................................................................................ 9 Customer Focus/Satisfaction: ...................................................................................... 9 Clients/Customers:....................................................................................................... 9 Evaluation of Certain factors According to Manager (HR&A) & Employees ............... 10 Process Flow Diagram .................................................................................................. 11 Explanation ................................................................................................................ 12 Continuous Process Improvement ............................................................................. 12 Continual Improvement: ............................................................................................. 12 Corrective Action:....................................................................................................... 13 Preventive Action: ...................................................................................................... 13 Control of monitoring and measuring equipments: ..................................................... 14 Supplier partnership ................................................................................................... 14 i

Purchasing Process: .................................................................................................. 14 Crude oil purchases: .................................................................................................. 14 Sourcing ..................................................................................................................... 16 Performance Measures .............................................................................................. 17 Visit of the plant ......................................................................................................... 18 Conclusion ................................................................................................................. 18 Recommendations ..................................................................................................... 19 Action Plan ................................................................................................................. 19 Bibliography: .............................................................................................................. 20 Annex: ........................................................................................................................ 20

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Table of Figures

Figure 1 ........................................................................................................................... 8 Figure 2 ......................................................................................................................... 11

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Introduction:
Industry Overview:
The installed oil refining capacity in Pakistan has remained stagnant for many years in spite of increase in consumption of energy products. To meet the increasing domestic demand of energy products the country is dependent on imports. The industry experts attribute this to many factors including limited production of indigenous crude that too contains very high percentage of wax, the pricing formula, an acute shortage of capital required to build modern refining complex and establishment of large scale refineries in the Middle East and Singapore. While the refineries in the Middle East have the advantage of indigenous crude at very low price the refineries in Singapore enjoy the advantage of their scale of operation and efficiency. Pakistan enjoying very cordial relationship with the Middle Eastern countries continue to import bulk of its requirements from Kuwait and Saudi Arabia. There are nine top companies engaged in the business of oil refining in Pakistan. Their refining capacities and names are as follows. Pak-Arab Refinery (PARCO), 100,000 bbl/d (16,000 m3/d) Byco Oil Pakistan Limited (BOPL), 100,000 bbl/d (16,000 m3/d) Byco Petroleum Pakistan Limited (BPL), 30,000 bbl/d (4,800 m3/d) Pakistan Refinery Limited (PRL), 15,000 bbl/d (2,400 m3/d) National Refinery Limited (NRL),64,000 bpd Attock Refinery Limited (ARL), 46,000 bbl/d (7,300 m3/d) Enar Petroleum Refining Facility (EPRF), 3,000 bbl/d (480 m3/d) TransAisa Refinery Limited (TRL), 96,000 bbl/d (15,300 m3/d) Taba Refinery Limited (TRL), 76,000 bbl/d (12,100 m3/d)

Attock Refinery Limited

History:

Attock Refinery Limited (ARL) was incorporated as a Private Limited Company in November, 1978 to take over the business of the Attock Oil Company Limited (AOC) relating to refining of crude oil and supplying of refined petroleum products. It was subsequently converted into a Public Limited Company in June, 1979 and is listed on the three Stock Exchanges of the country. The Company is also registered with Central Depository Company of Pakistan Limited (CDC). Original paid-up capital of the Company was Rs 80 million which was subscribed by the holding company i.e. AOC, Government of Pakistan, investment companies and general public. The present Paid-up capital of the Company is Rs. 852.93 million. ARL is the pioneer of crude oil refining in the country with its operations dating back to 1922. Backed by a rich experience of more than 85 years of successful operations, ARLs plants have been gradually upgraded/replaced with state-of-the-art hardware to remain competitive and meet new challenges and requirements. Attock Refinery Limited (ARL) is the pioneer in crude oil refining in the country with its operations dating back to the early nineteen hundreds. Backed by a rich experience of more than 80 years of successful operations, ARLs plants have been gradually upgraded/replaced with state-of-the-art hardware to remain competitive and meet new challenges and requirements.

Hierarchy of ARLs Management

Senior Management (Executive Committee) M. Adil Khattak Chief Executive Officer Syed Asad Abbas Senior Manager (Finance & Corporate Affairs) Ejaz H. Randhawa Assistant General Manager (Operations) Mansoor Shafique Assistant General Manager (TS & Engineering) Arshad Hayee Khan Manager (Operations-OMU) Salman Tariq Manager (Maintenance) Asif Saeed Manager (HR & A) Muhammad Aliemuddin Incharge (HSEQ) Khurram Jalil Manager (Engineering) Malik Masood Sadiq Senior Manager (Commercial & Materials Management) Munir A.Temuri Manager (TS) Nayyer Ahmed Manager (Projects)

Products: The Attock Refinery Limited produces the full range of petroleum products: LIQUEFIED PETROLEUM GAS (LPG) PETROLEUM SOLVENT GRADE 45/120 NAPHTHA UNLEADED PREMIUM MOTOR GASOLINE (PMG) MINERAL TURPENTINE (MTT) JP-1 JP-8 KEROSENE OIL HIGH SPEED DIESEL (HSD) LIGHT DIESEL OIL (LDO) JUTE BATCHING OIL (JBO) FURNACE FUEL OIL (FFO) LOW SULFUR FUEL OIL (LSFO) RESIDUEL FURNACE OIL (RFO) PAVING GRADE ASPHALTS o 1 - GRADE: 80/100 o 2 - GRADE: 60/70 CUT BACK ASPHALTS o 1 - GRADE MC-70 o 2 - GRADE RC-70 o 3 - GRADE RC-250 POLYMER MODIFIED BITUMEN (PMB) Vision To be a world class and leading organization continuously providing high quality diversified environment friendly energy resources and petrochemicals.

Mission We will utilize best blend of state-of-the-art technologies, high performing people, excellent business processes and synergetic organizational culture thus exceeding expectations of all stakeholders.

Total Quality Management Definition according to ARL:

Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Quality According to ARL:

ARL focuses on client satisfaction and according to them it is their quality. Being an organization ARL compares it products with International Standards. ARL meet its standards according to Pakistan Standard Institute (PSI).

Health, Safety, Environment and Quality Policy:

ARL is committed to provide the best quality products in the market, endeavors to protect the environment and to ensure health and safety of its employees, contractors, and customers and work for continual improvements in Health, Safety, Environment and Quality (HSEQ) systems. ARL is committed to comply with all applicable Health, Safety, Environment and Quality laws and regulations. The Policy shall be used to demonstrate this commitment through: Health: ARL seeks to conduct its activities in such a way as to promote the health of, and avoid harm to its employees, contractors, visitors and the community.

Safety: ARL ensures that every employee or contractor works under the safest possible conditions. It is our firm belief that every effort must be made to avoid accidents, injury to people, damage to property and the environment. ARL believes that practically all accidents are preventable by carrying out risk assessments, and reducing risks identified, by appropriate controls. Environment: ARL is committed to prevent pollution by the efficient use of energy throughout its operations, recycle and reuse of the effluent wherever possible, and use of costeffective cleaner production techniques that lead to preventive approach for sustainable development. Quality: ARL recognizes employees' input towards quality by emphasizing skills development and professionalism. ARL must be customer driven, cost effective and continuously improving services, works and products to meet requirements of the market. ARL conducts periodic audits and risk assessment of its activities, processes and products for setting and reviewing its objectives and targets to provide assurance, to improve HSEQ standards and loss control. ARL is committed to share all pertinent information related to HSEQ with all concerned parties.

Prime Product: Hydrocarbon Products.

Quality Council & Quality Control Lab:

ARL has a quality council and a Quality Control Lab (QCL). ARL has a quality council which works at higher levels. ARL held meeting of Quality Council every six months. Quality control lab (QCL) is certified with international standards which are being validated from time to time. Twice or thrice a year ARL send its Refined samples to foreign countries like USA, Japan in order to test its samples whether its results are in conformity with the result of other countries or not. JET A-1 is one of the prime products of ARL; it is used by NATO (code F-35) as well as in Tanks. Its certificate of analysis and its product certification report are annexed in the Report. High speed Diesels product certification report is also annexed in the report.

Product ensuring 100% each and every drop of oil is tested in the QCL. ARL retains every sample they deliver to its customer with a reference number,
so that in case of any complaint it can be referred back and tested again in QCL.

Highly sophisticated software is used for the Operations of QCL which is known
as Laboratory information management system (LIMB). In order to check the accuracy of lab instruments, they are also being tested every now and then.

Structure of QCL
ISO/IEC 17025: 2005 ACCREDIATION

Environment T.B.P Lab

Analytical Lab

Corporative Fuel Research Lab (CFR)

GC Lab

Figure 1

Analytical Lab: True Boiling Point Apparatus. Loss on Ignition Apparatus. Softening point. Owen. Environment/T.B.P Lab: Oil content analyzer. 8

 Plants monitoring. Flash point/Fire point/PMCC. (Auto) Manual flash point. Viscosity box. Water content Apparatus. Color comparator. Cloud point. RVP bath. Penetrometer. W.I.S.M. Viscometer. EDXRF. CFR Lab: Cooperative Fuel Research Unit. A Cooperative fuel research engine is a standardized single cylinder, overhead valve, variable-compression ratio engine used throughout the world for testing, research, and instruction in the performance of fuels and lubricants for the internal combustion engine.

GC Lab: GC-1 (OLD PONA). GC-2 (NEW PONA). GC-3 (RGA).

Customer Focus/Satisfaction:
According to ARL client satisfaction is its first priority and it is basically its Quality.

Clients/Customers:
1) Pakistan State Oil (P.S.O) 2) Attock Petroleum Limited. (APL) 9

3) Shell. 4) Caltex. Clients are satisfied as ARL has one of the best Labs in the world. Internal customers are highly satisfied and it is only due to the up gradation of job that any one quits ARL. ARL provides best facilities to its employees in form of Increments, pick and drop facility for their families and very affordable food during working hours.

Evaluation of Certain factors According to Manager (HR&A) & Employees

S.no Factors
Ranking According Ranking According to to Manager Employees 1st 2nd 5th

1 2 3 4 5

Promotion/Growth Loyalty to employees Help problems Appreciation Discipline with personal

1st 3rd 4th

5th 2nd

4th 3rd

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Process Flow Diagram

MAXIMO (Software)

Purchase Description

Purchase Requisition

Section Head (Approval)

Store

Specifications

Procurement Department

Supplier evaluation

Supplier selection

Purchase order preparation

Follow-up

Figure 2

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Explanation
In ARL, they have a vivid process of procurement which involves various steps: MAXIMO software : This is special software generated for procurement. It is internally online software in which each department has a direct link with the procurement department. Purchase description: In this step, they identify what they have to buy and its specifications. Purchase requisition: In this step purchase description is forwarded to the section head. Section head: Section head after considering the purchase requisition approves or disapproves it. Store: If that purchase description is already available in store, it is supplied from there. If not, then it is forwarded to the procurement department. Procurement department: First of all specifications of the product is defined. Then supplier evaluation is done through complex process, after that supplier is selected. Then purchase order description is made and then follow up process which includes payment mode and receiving of product.

Continuous Process Improvement

Continual Improvement: The leadership of ARL believes that all business process must continually improve to stay in step with the dynamic of the present day. 12

 Analysis of Data. Audit Results. Corrective Action:

The leadership of ARL strongly believes in the notation of Learning of Mistakes. Identify non-conformities (Including customer complaints). Determining the cause of non-conformity. Evaluation of effectiveness of application of preventive measures. Recording the results of action taken.

Preventive Action:

Where the system for corrective action is based on feedback mechanism, the leadership of ARL recognizes the fact that prevention is better than cure. With this mindset they encourage their people to critically analyze their business process for the purpose of identifying and potential sources of non-conformities. Such efforts, based on a feed forward mechanism, are carried out according to a document system established by ARL (QAD) and exercised at every level.

Identification of potential non-conformities. Determining the cause of potential non-conformities. Determination and application of appropriate controls for prevention of nonconformities. Evaluation of effectiveness of application of preventive measures. Records of results of action taken.

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Control of monitoring and measuring equipments:

The leadership of ARL believes that it is extremely important to determine and monitor the measurement uncertainty of all measuring equipments (Including software) used in our business operation/processes. Where ARL maintenance department has the overall responsibility of establishing a documented system for calibration of measuring equipment, the user of the measuring equipment are not absolved of their responsibility to ensure that the equipment under their use is within the state of non-permissible uncertainty. For this reason, where applicable, each department/section of the organization is required to identify the equipment (including software) under their use that requires regular calibration and validation or both at specified intervals.

Supplier partnership
Customers and suppliers have the same goal-to satisfy the end user. The better the suppliers quality, the better the suppliers long term position, because the customer will have better quality. Because both the customer and the supplier have limited resources, they must work together as partners to maximize their return on investment. Purchasing Process:

The leadership of ARL considers purchasing as a critical aspect of their business process and has established and maintained a documented system for purchasing. Purchasing is bifurcated into two basic segments.

Crude oil purchases:

Crude oil is their production raw material and is purchased through contracts agreed between ARL and the crude oil Producers. The nature of organizations operation and of the crude purchase agreements does not allow the organization to fully comply with the 14

requirements of this standard and the organizations stated policies regarding purchasing. The product loss investigation section and quality control laboratory inspects crude oil received at ARL for verification.

Others:

The leadership of ARL considers suppliers as their business partners and it is the policy of ARL to reduce the no. of suppliers to minimum. This approach will enable the organization to establish a processing system, which is : Efficient Cost effective Transparent Based on customer supplier partnership. In order to achieve this objective, ARL commercial and material management department (C&MM) has established and maintained a document system for selection of suppliers. Criteria for selection, evaluation and re-evaluation. This approach would enable the organization to minimize the inspection and ware housing cost of the purchase3d products.

Purchasing information:

The degree of control exercised over the subcontractor is directly related to the importance of the purchased product and the extent of criteria can be changed depending on the suppliers evaluation. However, no purchased product is released for usage unless it has fulfilled the established criteria for permitting its acceptance for usage. 15

Verification of purchased product:

The leadership of ARL believes in the transparency of business practices and therefore, extends full cooperation in building strong customer relationship. If a customer so wishes, the organization arranges for evaluation of purchased product at suppliers premises by the customer. For this purpose, ARLs finance, procurement and material management department (FP&MM) has established and maintains a document system that describes detailed plan of customer verification of supplier. This plan details the modalities and acceptance criteria for inspection of purchased product or agreed with the customer.

Sourcing
Multiple sourcing is the use of two or more suppliers for an item. Usually three suppliers are chosen, and their portion of the business is the function of their performance in terms of price, quality, and delivery. The theory of multiple sourcing is that competition will result in better quality, lower costs, and better service. Multiple sourcing also eliminates disruption of supply due to strikes and other problems. ARL also follows multiple sourcing.

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Performance Measures
Monitoring and measurement of process:

The leadership of ARL understands that quality in product cannot be achieved without quality in process. This implies that effective monitoring of product realization process is necessary. Monitoring and measurement of product:

It is the policy of the ARL leadership to keep the inspection requirements for a product to minimum.

Control of non-conforming product:

The leadership of ARL is of the view that non-conformity represents an opportunity for improvement. Quality management systems:

ARL determines the process needed for the quality management system and their application throughout the organization and the sequence and interaction of these processes. ARL determines criteria and methods needed to ensure that both the operation and control processes are effective.

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Visit of the plant

As we all had a visit of plant of ARL, where we saw all the plants that are engaged in the process of refining of oil and also their control room. First we have seen the old model of refinery, then after it we visited all the plants like Water Tanks, Boiler Point, Heavy Crude Unit, Polymer Modified Bitumen Flare Gas Plant, Plant Maintenance Unit, Refinery Unit, Light Crude Unit, Pump House, Effluent Water Treatment Plant, Oil Movement Office, Crude Decanting Station and Central Control Room .We have seen the pipelines through which crude oil is received from the supplier. That pipeline is directly connected to the KHOR.

Conclusion
Our project on ARL was a great success. ARLs staff cooperated with us a lot and explained to us each and every question asked in detail, specially Mr. Aliemuddin (HOD HSEQ). From learning point of view it was a milestone achieved. We have been doing so many projects since our first semester but this was really a productive one in many ways. We studied many TQM practices in our course but in ARL we witnessed it at the very practical level. All this become possible due to the guidance of our honorable teacher Sir. Tahir Masood. During our project we visited Quality Control Lab(QCL), fire station, central control room and their refinery. We also studied their process flow diagram which helped us a lot in understanding their mechanism. We thoroughly examined that how they maintain their quality standards according to ISO. After visiting ARL we came to know that how crude oil is used to manufacture different unique products like Naphtha,JP-1,JP-8,high speed diesel(HSD),polymer modified bitumen (PMB). Although visiting ARL was not an easy task for us but at the end of the day we are facilitated with a lot of information and issues related to the management of quality, a lot of new things were learned and vital experienced gained which would help us a lot in future.

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Recommendations
ARL must recognize employees input towards quality by emphasizing skills development and professionalism. No doubt ARL is working at its full capacity and producing high quality products but to meet international standards they have to improve their quality further more. Currently ARL is having 4-5 top companies as their customers but in order to expand their business ARL must boost up the quality of lubricant products in order to gain maximum market share in the country. ARL must raise their quality standards to become the top most oil refining company in Pakistan. They must adopt latest technological equipments in order to produce high quality products which can compete not only domestically but also internationally.

Action Plan
As it is ARLs vision to be a world class and leading organization continuously providing high quality diversified environment friendly energy resources and petrochemicals hence they must produce top quality products by using latest technologies, highly skilled labor and innovations so that ARL can become the top most oil refinery of Pakistan.

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Bibliography:
www.arl.com.pk http://en.wikipedia.org/wiki/List_of_oil_refineries#Pakistan.

Annex:
Call Reports. JET A-1 Certificate of Analysis. JET A-1 Product certification Report. High Speed Diesel Product certification Report.

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