Production And Operations Management Essay

1029 words - 5 pages

Production and Operations Management

The Business Enterprise-BUS508

Dr. John Woodard

Tammy English

Strayer University

August 11, 2011

Marathon is an integrated international energy company engaged in exploration and production; oil sand mining; integrated gas; and refining, marketing, and transportation operation. Marathon is among the top five crude oil refineries in the United States, so surely there is a way to reduce the time involved in the production process. The major crude oil refineries in the United States are located in the hurricane region of the gulf coast. One possible option that Marathon could take to reduce the time involved in the production process ...view middle of the document...

And it takes about four to eight days for crude oil to be processed into gasoline, diesel fuel and other petroleum products. Therefore, all these could be improved by increasing the speed to reduce the time in the production process. The price of crude oil is the most significant factor determining the price of gasoline because it represents the largest component of the underlying cost of producing and marketing gasoline. A change in the price of gasoline closely relates to a change in the price of crude oil. The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes.
If the price of crude increased by a percentage, Marathon Oil could keep the price at the pump the same without losing profits if they focus on controlling and reducing refining and marketing operating costs and bringing its refineries’ production of gasoline and diesel fuel into the market. When wholesale prices rise, each station acts to maintain its profit margins and quickly passes the increase on to customers. When wholesale prices fall, however, each station temporarily boosts its profit margins by slowly passing the decrease on to customers. Only after the customers engage in a costly and time-consuming search to find the lowest prices are the stations forced to lower prices to a competitive level. Changes in the price of crude oil drive changes in the price of gasoline. The relationship between crude oil and the retail price of gasoline both work together. Oil companies, such as Marathon Oil, are affected by global price changes of crude oil and political effects on their industry. The oil market is highly competitive at all levels and since companies cannot control the price of crude or the prices of products they sell, they can only respond to difficult market conditions by acting on what they do control, their costs.
In the aftermath of British Petroleum (BP) oil spill in the Gulf of Mexico, the Obama administration imposed a six month deep water drilling moratorium in June 2010. In addition to temporary job lose and economic slowdown...

Other Papers Like Production and Operations Management

Production Operations Management Essay

3132 words - 13 pages Case Study: Hazel Introduction to Operations Management Jao, Arold Mikko A. Kaw, Seleena Marie H. EXPRODU XOC Mr. Joey Accuña View Point: Hazel Time Context:Present Objective:To prevent depletion of her financial resources by having a continuous source of income, which would preferably continue to increase proportionately with the number of years, for support of her basic needs. Statement of the Problem:Hazel is to choose

Using Work Teams in Production and Operations Management

1632 words - 7 pages Using Teams in Production and Operations Management Governments around the globe are investing in businesses and banks in an effort to avoid a complete collapse of affected institutions. However, the general public is not convinced that the government will be able to effectively run the businesses it has acquired with any better dexterity than existing mismanaged government budgets. Furthermore, although the infusion of funds may temporarily

Mcdonald’s Use of Teams in Production and Operations Management

1064 words - 5 pages Introduction Strategies are important for all businesses, regardless of the products or services that they offer. Through strategic management and operations, companies are able to integrate new and effective means of running their respective businesses. In turn, these strategies results in an increased profit of sales, stable market position and greater levels of customer loyalty. In the fast food industry, businesses such as McDonald’s must

Production and Operations Functions Under the Changing Techno-Structural Environment

5054 words - 21 pages restructuring the organization) and employee empowerment on the production and operation functions in the manufacturing industry. Employee empowerment has a positive impact on Production functions under specific conditions and with more of trust and social relationship between the management and employees. Empowerment is a boon to the manufacturing industry, as the in-depth knowledge of technical employees in operations is well utilized by the

Production and Operation Management

863 words - 4 pages Production and Operation Management Cheng Guoping Chapter 1 Introduction 1. Production System 2. Production and operations in the organization 3. Function and jobs of POM 4. Decision Making in POM 5. The emergence of production and operation management 1. Production System Production and operation management (POM) is the management of an organization's production system, which converts input into the organization 's products and

Production and Operation Management

1319 words - 6 pages Production and Operation Management Section A: Multiple choices: 1. If the number of restrictions on sources be ‘a’ and the number of restrictions on destinations be ‘b’ then with the use of ‘stepping stone procedure’, the number of ‘used cells’ will be a. a+b+1 b. a+b+2 c. a-b-1 d. a+b-1 2. Value of smoothing coefficient ‘α’ lies a. Between 1 and ∞ b. Between 0 and 1 c. Between -1 and 1 d. Between 1 and 2 3. Forecasting error

Production and Operation Management

1319 words - 6 pages Production and Operation Management Section A: Multiple choices: 1. If the number of restrictions on sources be ‘a’ and the number of restrictions on destinations be ‘b’ then with the use of ‘stepping stone procedure’, the number of ‘used cells’ will be a. a+b+1 b. a+b+2 c. a-b-1 d. a+b-1 2. Value of smoothing coefficient ‘α’ lies a. Between 1 and ∞ b. Between 0 and 1 c. Between -1 and 1 d. Between 1 and 2 3. Forecasting error

Production And Management

1521 words - 7 pages Semester II Examination Papers IIBM Institute of Business Management IIBM Institute of Business Management Semester-II Examination Paper MM.100 Production and Operation Management Section A: Objective Type (30 marks) • This section consists of Multiple choice questions & Short Notes type questions. • Answer all the questions. • Part One questions carry 1 mark each & Part Two questions carry 5 marks each. Part One: Multiple choices: 1

Production And Operation Management

1521 words - 7 pages Semester II Examination Papers IIBM Institute of Business Management IIBM Institute of Business Management Semester-II Examination Paper MM.100 Production and Operation Management Section A: Objective Type (30 marks) • This section consists of Multiple choice questions & Short Notes type questions. • Answer all the questions. • Part One questions carry 1 mark each & Part Two questions carry 5 marks each. Part One: Multiple choices: 1

Production and Operation Management - 968 words

968 words - 4 pages Running head: Prdctn & Oprtns Mgt Production and Operations Management Laretha Moss Strayer University Dr. John Theodore November 14, 2010 Abstract Building more ports and pipelines to transport and distribute crude oil could reduce the time involve in the production process. Gasoline is refined from crude oil. . In general OPEC sets most of the price of crude oil and therefore the price of gas. The Organization of the Petroleum

Chapter 10 Operations And Management

386 words - 2 pages since it tends to reduce their ability to perform other types of work within the business that fall outside their particular specialty. DEPARTMENTALIZATION The process of forming employees into groups to accomplish specific organizational goals. TYPES OF DEPARTMENTALIZATION * FUNCTIONAL - Functional departmentalization in a restaurant could operate by separation of sales and marketing versus operations. Operations in the restaurant

Related Essays

Production And Operations Management Essay

787 words - 4 pages Unit 2 Module 1 Production and Operations Management Nature of Production -Production is a process in which inputs (factors of production) are passed through a conversion process (production process) to produce outputs (finished goods and services). The Production Process Methods of Production -Job production is a method of production that involves producing custom work such as one off products or customised projects for

Production And Operations Management Essay

1233 words - 5 pages Production and Operations Management Marathon Oil Corporation (Marathon Oil) is an integrated international energy company. It is engaged in the exploration and production of crude oil and natural gas, as well as in the domestic refining, marketing and transporting of petroleum products, integrated gas business and oil sands mining. The company’s principal operating subsidiaries include Marathon Oil Company (exploration and production) and

Production And Operations Management Function Essay

762 words - 4 pages Brief History of the Production and operations Management function by V S Rama Rao on January 24, 2009 At the turn of the 20th century, the economic structure in most of the developed countries of today was fast changing from a feudalistic economy to that of an industrial or capitalistic economy. The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be

Using Teams In Production And Operations Management

1786 words - 8 pages Assignment 3: Using Teams in Production and Operations Management Brandon Jones Contemporary Business February 12, 2011 The British Petroleum Company, better known as BP, is an oil and petroleum conglomerate that has serviced consumers’ needs since approximately 1909. When it was first founded by William Knox D’Arcy the company was known as the Anglo-Persian Oil Company (BP Global, 1996-2012). The first few years of business was shaky