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Exxon Mobil Corporation

Total Quality Management


Brand History
 Exxon Mobil Corporation: The former Exxon Valdez Oil Company
 ExxonMobil was formed in 1999 by the merger of two major oil companies,
Exxon and Mobil.
 Exxon Mobil Corporation is an American multinational oil and gas corporation
headquartered in Irving, Texas. It is the largest direct descendant of John D.
Rockefeller's Standard Oil Company, and was formed on November 30, 1999 by
the merger of Exxon(formerly Standard Oil Company of New Jersey)
and Mobil (formerly the Standard Oil Company of New York).
 The world's 10th largest company by revenue, ExxonMobil is also the seventh
largest publicly traded company by market capitalization. The company was
ranked ninth globally in the Forbes Global 2000 list in 2016. ExxonMobil was
the second most profitable company in the Fortune 500 in 2014.
 ExxonMobil has been criticized for its slow response to
cleanup efforts after the 1989 Exxon Valdez oil spill in
Alaska, widely considered to be one of the world's worst
oil spills in terms of damage to the environment.
ExxonMobil has a history of lobbying for climate change
denial and against the scientific consensus that global
warming is caused by the burning of fossil fuels. The
company has also been the target of accusations of
improperly dealing with human rights ExxonMobil was
formed in 1999 by the merger of two major oil companies,
Exxon and Mobil.
Chapter II
Management Principle
 Mission:

 Energy makes modern life possible. And to provide energy responsibly with
minimal impact to the environment, it takes a lot of different people – the
people of ExxonMobil.

 Vision:

 Exxon Mobil Corporation is committed to being the world's premier petroleum


and petrochemical company. To that end, we must continuously achieve
superior financial and operating results while simultaneously adhering to high
ethical standards.
 Objective:

 Attract, develop and retain a premiere workforce from the broadest possible
pool to meet our business needs worldwide.

 Actively foster a productive work environment where individual and cultural


differences are respected and valued, and where all employees are
encouraged to contribute full to the achievement of superior business result

 Identify and develop leadership capabilities to excel in a variety of


international and cultural environment.
 Shareholders
 We are committed to enhancing the long-term value of the investment dollars entrusted to us by our
shareholders. By running the business profitably and responsibly, we expect our shareholders to be
rewarded with superior returns. This commitment drives the management of our Corporation.

 Customers
 Success depends on our ability to consistently satisfy ever changing customer preferences. We
commit to be innovative and responsive, while offering high quality products and services at
competitive prices.

 Employees
 The exceptional quality of our workforce provides a valuable competitive edge. To build on this
advantage, we will strive to hire and retain the most qualified people available and to maximize
their opportunities for success through training and development. We are committed to maintaining
a safe work environment enriched by diversity and characterized by open communication, trust, and
fair treatment.

 Communities
 We commit to be a good corporate citizen in all the places we operate worldwide. We will maintain
high ethical standards, obey all applicable laws, rules, and regulations, and respect local and
national cultures. Above all other objectives, we are dedicated to running safe and environmentally
responsible operations.
Chapter III
Changes in Acquiring TQM
 Oil Spill Summarization
 In March of 1989, the Exxon Valdez oil tanker ran aground on Bligh Reef in Prince
William Sound, Alaska. The ship was carrying over fifty million gallons of crude oil.
When the Valdez was only twenty-eight miles from the port, it ran aground on
Bligh reef.
 The bottom was ripped open, and 10.9 million gallons of North Slope Crude Oil
spilled into the frozen Alaskan waters at a rate of two hundred thousand gallons
per minute. The remaining forty-two million gallons were off loaded. Within hours,
smaller tanker vessels arrived in order to off load the remaining oil. Unfortunately,
the cleanup effort was hindered by an inadequate cleanup plan that had been
created during the 1970’s. These plans outlined how an oil spill would be handled,
including provisions for maintaining equipment such as containment booms and
“skimmer boats.”.
 The local fishermen were a big help with the cleanup effort. They battled with the
oil in order to protect their industry. Many fisherman were seen in row-boats in
the small coastal inlets. The fishermen worked by hand to clean up the oil, using
buckets to scoop up the oil, which was several inches thick on top of the water in
some places. Many fishermen also became temporary employees of Exxon,
receiving excellent pay on an hourly basis.
 The cleanup was a long and tiring process which was plagued by many difficulties.
Inexperience was a major problem. Coast Guard Vice Admiral Clyde Robbins
explained in disgust that, “It was almost as if that spill was the first one that they
had ever had.” The equipment was not ready and not in perfect shape and the
response teams were not equipped to deal with a spill of the magnitude that
occurred. Exxon paid more than five billion dollars, including twenty million to
study
 Exxon Mobil’s Framework

 ExxonMobil’s OIMS Framework establishes common worldwide expectations for


addressing risks inherent in our business. The term Operations Integrity (OI) is
used by ExxonMobil to address all aspects of its business that can impact
personnel and process safety, security, health, and environmental
performance.
 The OIMS Framework includes 10 Elements. Each Element contains an
underlying principle and a set of Expectations. The OIMS Framework also
includes the characteristics of, and processes for, evaluating and
implementing OI Management Systems.
 Application of the system

 Application of the OIMS Framework is required across all of ExxonMobil, with


particular emphasis on design, construction and operations. Management is
responsible for ensuring that management systems satisfying the Framework
are in place. The scope, priority and pace of management system
implementation should be consistent with the risks associated with the
business.
10 Elements of OIMS Framework
 Management leadership, commitment and accountability
Management establishes policy, provides perspective, sets expectations and
provides the resources for successful operations. Assurance of Operations
Integrity requires management leadership and commitment visible to the
organization, and accountability at all levels.

 Risk assessment and management


Comprehensive risk assessments can reduce safety, health, environmental
and security risks and mitigate the consequences of incidents by providing
essential information for decision-making.
 Facilities design and construction
Inherent safety and security can be enhanced, and risk to health and the
environment minimized, by using sound standards, procedures and management
systems for facility design, construction and startup activities.

 Information/ documentation
Accurate information on the configuration and capabilities of processes and
facilities, properties of products and materials handled, potential Operations
Integrity hazards, and regulatory requirements is essential to assess and manage
risk.

 Personnel and training


Control of operations depends upon people. Achieving Operations Integrity
requires the appropriate screening, careful selection and placement, ongoing
assessment and proper training of employees, and the implementation of
appropriate Operations Integrity programs
 Operations and maintenance
Operation of facilities within established parameters and according to
regulations is essential. Doing so requires effective procedures, structured
inspection and maintenance programs, reliable Operations Integrity critical
equipment, and qualified personnel who consistently execute these procedures
and practices.

 Management of change
Changes in operations, procedures, site standards, facilities, or organizations
must be evaluated and managed to ensure that Operations Integrity risks arising
from these changes remain at an acceptable level.

 Incident investigation and analysis


Effective incident investigation, reporting and follow-up are necessary to
achieve Operations Integrity. They provide the opportunity to learn from
reported incidents and to use the information to take corrective action and
prevent recurrence.
 Community awareness and emergency preparedness
Effective management of stakeholder relationships is important to enhance
the trust and confidence of the communities where we operate. Emergency
planning and preparedness are essential to ensure that, in the event of an
incident, all necessary actions are taken for the protection of the public, the
environment and company personnel and assets.

 Operations integrity assessment and improvement


Assessment of the degree to which expectations are met is essential to
improve Operations Integrity and maintain accountability.
Research and Development
 Advanced biofuels
ExxonMobil continues to fund and conduct research on advanced biofuels.
This work is part of our many investments in new technologies with the
transformative potential to increase energy supplies, reduce emissions, and
improve operational efficiencies.
Our advanced biofuels research portfolio includes joint research collaborations
focused on algae-based biofuels with Synthetic Genomics, Inc. (SGI), Colorado
School of Mines and Michigan State. We are also exploring a variety of biomass
conversion processes that could be used with non-food based feedstocks such as
whole cellulosic biomass, algae feedstocks and cellulose-derived sugars. These
programs are being carried out currently with Renewable Energy Group (REG) and
the University of Wisconsin
Benefits of using algae

There are numerous benefits of using algae for biofuels production. Algae
can be cultivated on land unsuitable for other purposes with water that can’t be
used for food production. In addition to using non-arable land and not requiring
the use of fresh water, algae could also potentially yield greater volumes of
biofuels per acre than other sources. We also know that algae can be used to
manufacture biofuels similar in composition to today’s transportation fuels.
PROS and CONS
 Pros
 Great training programs. Interesting projects and assignments. Experienced
managers. Opportunities for growth and career advancement .
 Pros
 Integrated model.
Exxon has a massive platform, which stretches across the globe. The company
engages in exploration, the manufacture of petroleum products and refining. There is
also a large footprint of retail outlets.
 Natural gas.
It is becoming tougher to find new sources of crude oil.What’s more, new
discoveries are usually in politically unstable countries.
To help deal with this problem, Exxon purchased XTO Energy in June 2010. The
deal provided the company with enormous reserves of natural gas. XTO is also one of
the leaders in unconventional sources, such as finding natural gas in shale.
 Management.
Exxon has a top-notch management system. They have strong processes for
exploring for oil, such as with using sophisticated technologies and best-of-breed
project management practices. The company also knows how to efficiently allocate
capital throughout its organization, in terms of new efforts, R&D and acquisitions.
 CONS
 Work life balance not a key priority for this company. Highly competitive
environment with ranking system for employees. Not a lot of visibility for
employees working remote.

 Not ideal for administrative/secretarial roles as it's like a one-man show, one
person has to help more than 50 staffs on a daily basis, which is very hectic
and unbalanced.

 Managers can be too reliant on their assistants, to the extent that they even
require assistants to help them choose and recontract smart phones for
business which they should do by themselves.
 Liability exposure.
 The oil business is getting more complex. This is especially the case with
deep-water drilling. As seen with the BP (NYSE:BP) oil spill last year, the
consequences of failure can be devastating. Of course, back in the 1980s,
Exxon was responsible for the Valdez disaster, which released 11 million
barrels of oil.
 Long-term bets.
Exxon focuses mostly on massive oil projects. And this makes sense. It’s the
only way to move the needle for the company.
But such projects are diminishing. Part of this is the difficulty in finding new
sources of oil. Also, countries would prefer to handle their own oil exploration
and production.
 Politics.
As millions of Americans remain unemployed and economic
growth continues to be muted, large oil companies like Exxon continue to
generate huge profits. No doubt, this causes resentment, especially as people
are spending more of their wages at the gas pump.
It should be more surprise that politicians are putting the heat on the oil
industry. Consider that Congress is looking at terminating subsidies and tax
breaks.
 Recommendation:
 I recommend that the company should focus on the negative comments
they’re gaining
 More trainings from their company for the workers to have more knowledge of
the services they are going to make and offer.So that , it will rise up to Very
satisfactory.
 The management should always survey their customers like giving them
questionnaire or comment box if they were satisfied or is there anything to be
improved and develop.
 They should know that they should expect from their personnel, would lead
them to foresee the rule for them which affects their services.
 To all the crew, they should be informed of their strength and weaknesses in
the practice and display of their services. That would help them built more
self esteem and confidence.
 Should always be prepare for incidents relating to their product specially
when it is a destruction to Mother Nature.
Thank you ! 

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