Information system of Shell Pakistan

Introduction of shell Pakistan Shell is currently engaged in Storage Distribution Marketing of petroleum products, Petrochemicals, LPG & CNG. History The Shell brand name enjoys a 100-year history in this part of the world, dating back to 1899 when Asiatic Petroleum, the far eastern marketing arm of two companies: Shell Transport Company and Royal Dutch Petroleum Company, began importing kerosene oil from Azerbaijan into the subcontinent. Even today, the legacy of the past is visible in a storage tank carrying the date - 1898.

The documented history of Royal Dutch Shell plc in Indo-Pakistan subcontinent dates back to 1903 when partnership was struck between The Shell Transport & Trading Company and the Royal Dutch Petroleum Company to supply petroleum to Asia. In 1928, to enhance their distribution capabilities, the marketing interest of Royal Dutch Shell plc and the Burmah Oil Company Limited in India were merged and Burmah Shell Oil Storage & Distribution Company of India was born.After the independence of Pakistan in 1947, the name was changed to the Burmah Shell Oil Distribution Company of Pakistan.

In 1970, when 51% of the shareholding was transferred to Pakistani investors, the name of changed to Pakistan Burmah Shell (PBS) Limited. The Shell and the Burmah Groups retained the remaining 49% in equal proportions. In February of 1993, as economic liberalization began to take root and the Burmah divested from PBS, Shell Petroleum stepped into raise its stake to 51%. The years 2001-2 have seen the Shell Petroleum Company successively increasing its share, with the Group now having a 76% stake in Shell Pakistan Ltd (SPL)- an expression of confidence. SHELL Values

1.Objectives: The objective of shell Pakistan Ltd is to engage efficiently, responsibly and profitably in the oil and chemical businesses. Shell Pakistan Limited seeks a high standard of performance and aims to maintain a long-term position in its competitive environment. 2.Responsibilities: Shell Pakistan Limited recognizes five areas of responsibility. To Shareholders To protect shareholder's investment, and provide an acceptable return. To Customers To win and maintain customers by developing and providing products and services which offer value in terms of price, quality, safety and environmental impact, which are supported by the requisite technological ,environmental and commercial expertise.

To employees To respect the human rights of its employees, to provide its employees with good and safe conditions of work, and good and competitive terms and conditions of service, to promote the development and best use of human talent and equal opportunity employment, and to encourage the involvement of employees in the planning and the direction of its work, and in the application of these principles within the company. It is recognized that commercial success depends on the full commitment of all employees. To those with whom it does business to seek mutually beneficial relationships with contractors, suppliers and in joint ventures and to promote the application of these principles in so doing.

The ability to promote these principles effectively will be an important factor in the decision to enter into or remain in such relationships. To society To conduct business as a responsible corporate member of society , to observe the laws of Pakistan, to express support for fundamental human rights in line with the legitimate role of business and to give proper regard to health , safety and the environment consistent with its commitment to contribute to sustainable development. These five areas of responsibility are seen an inseparable.

Therefore, it is the duty of management continuously to assess the priorities and discharge its responsibilities as best it can on the basis of that assessment. Economic Principles Profitability is essential to discharging these responsibilities and staying in business. It is a measure both of efficiency and the value that customers place on Shell products and service. It is essential to the allocation of the necessary corporate resources and to support the continuing investment required to develop and produce future energy supplies to meet consumer needs. Without profits and a strong financial foundation it would not be possible to fulfill the responsibilities outlined above. In general Shell Pakistan Limited believes that the interests of the community can be served most efficiently by the market economy.

Criteria for investment decisions are not exclusively economic in nature but also take into account social and environmental considerations and an appraisal of the security of the investment. 3.Business Integrity: Shell Pakistan Limited insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships with all those with whom it does business.

The direct or indirect offer, payment, soliciting and acceptance of bribes in any form are unacceptable practices. Employees must avoid conflicts of interest between their private financial activities and their part in the conduct of company business. All business transactions on behalf of Shell Pakistan Limited must be reflected accurately and fairly in the accounts of the company in accordance with established procedures and be subject to audit.

4.Political Activities Of the company: Shell Pakistan Limited acts in a socially responsible manner within the laws of Pakistan in pursuit of its legitimate commercial objectives. Shell Pakistan Limited does not make payments to political parties, organizations or their representatives or take any part in party politics. However, when dealing with governments, Shell Pakistan has the right and the responsibility to make its position known on any matter which affects itself, its employees, its customers, or its shareholders.

It also has the right to make its position known on matter affecting the community, where it has a contribution to make. Of employees Where individuals wish to engage in activities in the community, including standing for election to public office, they will be given the opportunity to do so where this is appropriate in the light of local circumstances.

5.Health, Safety and the Environment: Consistent with its commitment to contribute to sustainable development, Shell Pakistan Limited has a systematic approach to health, safety and environmental management in order to achieve continuous performance improvement. To this end Shell Pakistan Limited manages these matters as any other critical business activity, sets targets for improvement, and measures, appraises and reports performance.

6.The Community: The most important contribution that Shell Pakistan Limited can make to the social and material progress of Pakistan is in performing its basics activities as effectively as possible. In addition Shell Pakistan Limited takes a constructive interest in social matters which may not be directly related to the business. Opportunities for involvement - for example through community, educational or donations programs - will vary depending upon the scope for useful private initiatives.

7.Competition: Shell Pakistan Limited supports free enterprise. It seeks to compete fairly and ethically and within the framework of applicable competition laws; the company will not prevent others from competing freely with it

. 8.Communication: Shell Pakistan Limited recognizes that in view of the importance of its activities in which it is engaged and its impact on national economies and individuals, open communication is essential. To this end, Shell Pakistan Limited has comprehensive corporate information programs and provides full relevant information about its activities to legitimately interested parties, subject to any overriding considerations of business confidentiality and cost.

INFORMATION SYSTEMS OF SHELL Information system of shell is maintaining its Information System department at its highest priority for the company to maintain its optimized performance. Information System’s department has four major sub departments where manual system, personal computers and AS400 machines are used. These departments are:

1.System Department 2.Data Control 3.Computer Operations 4.Manual Department

·The System department is lead by System Analyst, whose work is to design, check and validate the work of his subordinates. He has three senior programmers and few temporary programmers working under him. The main objective of this department is to provide full system maintenance to all departments and develop programs according to the requirements of the company. At present programmers in system department are writing codes in FOXPRO, COBOL and RPG. Few years’ back all the data and information was manipulated on individual PC’s and the program were written in FOXPRO.

Now they are shifting their information system from individual PC’s to AS400 machine network. ·Data Control Department Data control department is divided in to four departments: Sales department, Stock Department General Ledger Control, Trade accounts receivable. oSales Department: Sales department is controlled by Senior Sales Manager. Two assistant managers and eight sales executives are working for the department. These sales executive have to submit monthly sales report to the system manager. Sales department receives data from different depots all over Pakistan. Data is daily received by post, which refers to the two days earlier sales. Data is collected in the form of batches.

These batches of manual sales reports are crosschecked for entries and their codes by the department. These codes are the numbers assigned to dealers and retailers. After crosschecking, the sales entries are recorded manually in the sales registers of particular dealer or retailer. After all the entries are recorded, they are sent to the Operation department for data punching and validation process. If any invalid entries are found they are sent back to sales department for correction and after crosschecking and correction of invalid data, it is sent back to Operation department again. This cyclic procedure continues until all the entries are validated. oStock Department: Stock management department is controlled by a senior manager.

All the purchase record is manipulated in the department. All the data entries received from different depots are crosschecked and then manually recorded. The Operations in this department are similar to the sales department. The batches of the stock entries are sent to Operation Department for their punching and validation process. For the occurrence of any invalid data, the batch is sent to the stock department for correction and this cycle of data validation and correction continues until all the errors are removed. oGeneral Ledger: Control General Ledger system consolidates data received from accounts receivable, accounts payable, payroll and other accounting information system.

At the end of each accounting month they close the books of the business and produce the general ledger trial balance, the income statement and the balance sheet of the firm, and various income and expense report for management. Computer based ledger system helps them to accomplish these accounting tasks in more accurate and timely manner. They typically provide better financial controls and management reports and involve fewer personnel and lower cost than manual methods. oTrade Accounts Receivable: Trade Accounts Receivable system keeps record of amounts owned by customers from data generated by customers’ purchase and payments the monthly customer statements and credit management reports.

All the Accounts Receivable is implemented on the computer systems’ which stimulate prompt customer by preparing accurate and timely invoices and monthly statements to credit customers. They provide manager with reports to help them control the amount of credit extended and the collection of money owed. This activity help to maximize profitable credit sale minimizing loses form bad debts. ·Operation Department: In this department all the manual data from the data control section, which include sales department and stock department, is received here. In this department all the data is first transfer on the machine and then the validation process begins.

Operation department is further subdivided into two departments: oPunching department: The punching department of the operation department first receives all the data from sales and stock departments of the data control section. In this department many keypunchers are making data entries into the machines and the data is then punched for record keeping. In the operation department SHELL has some individual PC’s are running or data entries and some are the workstation of AS400 series network. In past, SHELL has been using only individual PC’s for information system for which all the programs were written in FoxPro. SHELL is gradually shifting its whole information system from individual PC’s to AS400 series Network.

After all the data is entered into the machines is sent to the computer operation department where validation process starts. oComputer Operation Department: After all the data is entered into the machines; it is received in this department for the validation process. All the accounts including sales, stock, account receivables, account payables and the balance, are check for errors. On certain error, a hard copy of the batch of data is created which is then sent back to data control section, its errors are corrected and then again sent to punching department for the entry and then o computer department for validation process. The cycle continues until all the accounts are validated. ·Manual Control Section: All the account procedures are developing in this section.

System Components Matrix As we have discussed above in the System department Section, SHELL had been using individual PCs for information systems in the past years and they now have shifted all their systems to AS400 Network which they have bought from IBM. They have two machines E730 and E740 of AS400 series currently working in the organization. They expect to shift all the information system of SHELL to these machines by the end of this year.

Main Storage Main storage options for the models 730 and 740 are described below. Model 730 Main Storage The model 730 has two bases, and ten additional, main storage slots for the 1-2-4 way processor features and four base and eight additional main storage slots for the 8-way processor features. Main storage features for the 8-way processor features must be added in sets of four (quads) of equal capacity.

The #2730 programmable regulators are required when five or more main storage cards are installed. Model 740 Main Storage the Model 740 has four base and 16 additional main storage slots. Main storage features for the 8-way processors must be added in sets of four (quads) of equal capacity. The #2730 programmable regulators are required when five or more main storage cards are installed. Memory cards of equal capacity, but with different feature numbers, cannot be mixed in a pair or groups of four on the model 730 and 740 .For example, #3179 and #3190 cannot be combined into a pair or group of four.

Continuously Powered Main Storage (CPM) Models 730 and 740 include an internal battery backup capable of maintaining the CPM on 16G of main storage for at least 24 hours. The #5150 Battery Back-up (External) is required when the main storage size exceeds 16G on the Models 730 and 740 .The #5150 can also be purchased to increase the CPM time over that of the internal battery backup (to at least 48 hours). Workstation Controllers the Models 730 and 740 support 5250k type twin axial and ASCII workstation up to a maximum of 175 workstation controllers in total. A system console must be selected on each new order.

One and only one workstation controller/adapter is required on a new system order to drive the system console. These specify codes do not mean that the relevant system console device is included with the order. The system console still needs to be separately ordered. Communications Restrictions If using any of the following communications functions, restrictions may apply .IPX is used over LAN adapters, ATM adapters, or over frame relay. Frame Relay protocol IPX protocolX.25 with more than 16 virtual circuits per line. SDLC protocol if used to connect to more than 64 remote sites.

Communications line speeds greater than 64 KBPS and up to 2.04 MBPS for the SDLC or frame relay protocols (Bisyne is always limited to a maximum of 64 KBPS)Asynchronous communications or Asynchronous PPP line speeds greater than 115.2 KBPS. Non-Asynchronous communications line speeds greater than 64 KBPS and up to 640 KBPS FOR X25. Additional information is available in the file called AS4CNFG PACKAGE on marketing tools. This is a comprehensive document with details on communication restrictions, which apply in a number of different circumstances. This document should be consulted for full details on what these restrictions are.

Customers should be able to obtain this document from their local IBM sales office. Business Partners may find this document in the AS/400lib section of BP Library. Analysis of Application Systems The information system (IS) Department is the custodian of the application system at SHELL. The primary computing environment is the AS/400. Of the two AS/400 machines installed, one is the production machine, while the other is used for developing/maintaining application system. The AS/400 machines are primarily used for processing data captured by PC-based application and through direct data entry by IS staff.

The data process on the AS/400 machines is also used as inputs by the number of PC-based application systems. OS/400 is the operating system on the AS/400, while DB2 is the database used to store, access and manipulate the data. COBOL is used as the main programming language in which all application have been developed. Only a few programs have been written in RPG. The following table provides brief specifications of the existing AS/400 computers.

All the PCs are running under MS-windows 2000 operating system. However, multiple development tools have been used for PC-based applications. While, most of these applications have been develop on FoxPro for DOS, other application development tools such as visual FoxPro and MS-Access are also used. There is an increasing trend amongst the end users to rely on spreadsheets for fulfilling their computing needs.

Communication & Networking The fundamental of a communication is the exchange of the between two parties. Communication networks are designed by interconnecting a variety of devices. This is done to help share the information and make efficient use of common resources available within an organization. Local Area Network (LAN) SHELLCL, the LAN at SHELL Head office, is based on the star topology. It has a fiber optic backbone connecting all the nine floors, while the layout of each floor consists of UTP Cat 5 cables. A total of 123 users are connected to this network through eleven switches and one Hub. In addition to the PCs, two servers one each for Lotus Notes and Internet access also form a part of this network.

The external link for the Internet is through Direct Video Broadcast (DBV) receiver and the radio modem connected to the network through the router. While the connectivity is there, the culture of file sharing is very limited. Primary use of LAN is For E-mails through Lotus Notes. A firewall protects the servers from the external world. Please refer to the next page of a LAN at SHELL house. Business Continuity/ Disaster Recovery Plan The existing setup of the information system (IS) department resolves around two IBM AS/400 computers running in batch mode.

One AS/400 is used for processing live data while the other is used for software development and maintenance activities. Data from the depots and installation is uploaded daily to the Head office via diskettes. Manual batch are also sent of IS for various entries. In the current scenario IS does not have business continuity/disaster recovery plan (BCP/DRP). It works on the “backup and restore” bases where regular backup of data and program file is taken and restored whenever required. A backup of all transaction files and balance file is taken after each monthly closing.

Transaction files are backed upon 5-1/4 inch floppy disks as well as 2 GB data cartridges while balanced files are backed up only on the latter. Three copies of the backup are stored as follows. IS Department General Manager F&IT Central Computerized Invoicing Cell (CCIC) at Keamari Terminal “C” Earlier policy was to retain the transaction files for the period of 5 years. Recently this has changed and now this period has been increased to 10 years. Some important intermediary file created during processing is also stored on cartridges for three months. Program and master data files are backed up every 2 months and replaced with those in safe custody.

The replaced cartridges are used for making other backups. Every two or three days, current month’s data is backed up from the production AS/400 on to the development AS/400. This way the maximum exposure is limited to the processing time of three days. For the past one year, requirement of archived data has increased due to increase effort on reconciliation of various accounts. Since data have been archived for long and there is n policy to regularly restore data to check its validity, data from nearly 5% of the cartridges could not be restored. This happens due to the damage to the tapes that stuck on their spools, as they were not used for the long period.

Fortunately, there was no loss of the data is at least one back up data was restored from amongst the three copies being maintained. While the existing methods cater to the current level of computerization, the same can’t be said when SHELL increases its focus on automation. The absence of BCP/DRP in the envisaged scenario might lead to a potential business risk. SHELL will require a properly documented BCP/DRP providing guidelines needed to plan fall back and recovery measures. A well-formulated and widely understood plan will ensure continuity of critical processes by identifying, assessing, mitigating, and managing systems-induced business risks.

IS DEPARTMENT OVERVIEW The information systems department (ISD) was established a short while after 1976, the year SHELL came into existence .Data center, as it was initially called, was used to enter data through punched cards on cardpunch machines hired from IBM. Over time as exposure to and expenditure on technological resources increased, the IS department became a support function for the core business units by providing data collection and processing services. Senior IS manages the daily operations of this department he reports to general manager finance and information technology. Networking Section Core functions of this section are:

·Maintenance of PCs and the communications network.

·Installation of operating systems, system software, and utilities.

·Involvement in procuring computerized stationary. ·Providing helpdesk facility. The networking section comprises seven staff members and is headed by a network administrator. Their primary duty is the maintenance and support of all PCs and the communication networks operating within SHELL .This section also carries out installation of operating systems, system software’s and PC utilities acquired and maintained by the IS department . Arranging and managing telephone lines for dialup data transfer is also the responsibility of the networking section.

Two staff members maintain a helpdesk service and deal with user issues and complaints. Currently, a manual register is used to keep track of the helpdesk activities; while automated helpdesk system software is being developed .A test bed is also maintained to examine PCs after they have returned from repairs at the vendors.

Staff in the networking section determines requirement for computerized stationary at the depots, after which they raise a requisition. They participate in the technical evaluation during the procuring and are responsible for inventory control, issuance and monitoring of all computerized stationary. The administration department stores and dispatches these documents on behalf of the networking section.

EVALUATED I.S FACTORS OF SHELL/CONCLUSION ·Performance: The Company is established since 1976 through a merger, as we know going through the past chapters. At the beginning, the performance of the company was according to the previous petroleum companies. All the account and databases was managed manually and a lot of time was wasted during the work, as it was the only company working at that time.

As the SHELL has their gas station through the country for Karachi to Kashmir so the process was quite slow in sending and receiving request for fuels. Still the head office receives the request and the compile invoices for two days. SHELL did not have any computer technology at the beginning but slowly they propagated to the growing technology and shifted their database to the electronic media. The first computer used by SHELL was IBM system 34 in 1981. Now the most of the work is recorded and manipulated on hardware resources. This has also made a good impact on the company’s performance and accelerated its processes. ·System Development: The expert in the company manages the system and the total hardware.

The system is design completely by the system analyst and proved by the IT engineers. Different programmers are there to implement these systems into self executing software which is updated at the request of the system analyst as the change occurs in the policy of the company. ·Maintenance: Great care has been taken for different hardware and machine working in the company. The related hardware vendors provide full service and maintenance for the equipment. ·Conversion The Company has always looks forth for the better performance of its employees and seek that they are acquainted by the latest information. It is necessary for their employees to take refresher courses offered by the company. Also the programmers are insisted to take refresher courses at the programming side.

·Backup The Company always goes for the hardware and software vendors whose market goodwill is better. It is the responsibility of the vendors whether hardware or software that they should provide an emergency backup if the problem has to be sorted out outside their environment. ·Accessibility SHELL always goes for vendors (Hardware or Software), which are near to their vicinity and can provide a hotline service as required by the company. It is the responsibility of the vendors to take less time to come there and check the problem. ·Business position of Vendors: the Company always goes for vendors (Hardware or Software) that have good reputation.

A well-known company offers the software used in the company, is the hardware. As we have told you before that the company uses IBM and for their computer services and software’s are COBOL, RPG and FoxPro properly licensed by its related organizations. ·Overall Performance: the Company has been using LAN for internal purposes while building up the WAN to connect with its major suppliers in order to meet requirements of fast moving business world. They are going to connect their SHELL house with its different divisions all over Pakistan.

SUGGESTIONS SHELL Oil Company Limited (SHELLCL) is one of the leading business organizations of Pakistan, having a strong and well developed setup. SHELLCL contains specialized Departments and high quality staff for the smooth running of business activities moreover they are exercising B 2 B electronic commerce however the only area in which SHELL lacks according to our analyses is the absence of B to C electronic commerce. It is also suggested that they should completely implement the WAN; this will move them towards the new era in the future so as to provide the SHELL with the highly sophisticated computer system environment. References Interview with the IS manager Shell official web site