A Research Project on

“An Empirical study on perception of services

vendor towards vendor rating practices at ONGC”

Submitted for the partial fulfilment of the requirements

For the degree of
Master of Business Administration – (Logistics and Supply Chain Management)

Ganpat University
CMSR

Research Guide: Submitted by:

Yashpalsinh Jadeja Bharg Jani (MBA-LSCM)
Assistant Professor (CMSR)
Ganpat University

Submitted To
Centre for Management Studies and Research,
Ganpat University

Page- I
 CERTIFICATE BY THE GUIDE

This is to certify that the contents of this report entitled “An Empirical study on
perception of services vendor towards Vendor Rating practices at ONGC” by
Bharg Jani (MBA-LSCM) and Enrolment number (21254891005) submitted to
Centre for Management Studies and Research for the Award of Master of
Business Administration (MBA Sem-III) is original research work carried out by
her under my supervision. This report has not been submitted either partly or fully
to any other University or Institute for award of any degree or diploma.

Asst. Prof. Yashpalsinh Jadeja

Centre for Management Studies and Research
Ganpat University

Date: 26th July, 2022

Place: Ahmedabad

Page- II
Page- III
 CANDIDATE STATEMENT

I hereby declare that the work incorporated in this report entitled “An Empirical
study on perception of services vendor towards vendor rating practices at ONGC”
in partial fulfilment of the requirements for the award of Master of Business
Administration (Sem-III) is the outcome of original study undertaken by me and
it has not been submitted earlier to any other University or Institution for the
award of any Degree or Diploma.

Bharg Jani (Enrol. No. 21254891005)

Date: 26th July, 2022

Place: Ahmedabad

Page- IV
Page- VI
 PREFACE

“Success is achieved from experiences. Experience once gained can be used for
lifetime.” These 45 days of training provided us with lots of experiences. This
project is helpful for the great career in future because proper learning is born out
of experience and observation.

To gain the industry knowledge we have carried out at Oil and Natural Gas
Corporation(ONGC). Doing this project helped us to enhance our knowledge
regarding the field work. Throughout the study we did undergo many new
experiences related to people’s opinions as well as their tendencies. We learn
about operations via the organization's administration through this report.

Page- VII
 ACKNOWLEGEMENT

This summer internship project we had with Oil and Natural Gas
Corporation(ONGC) was a great chance of learning and professional
development. Therefore, we consider our self-lucky as we were provided with an
opportunity to be a part of it.

It is my radiant sentiment to place on our record our best regards, deepest sense
of gratitude to Mr. Rohit Kumar CM (Logistics) for their careful and precious
guidance which were extremely valuable for our study both theoretically and
practically.

We would like to express our deepest appreciation to all those who provided the
possibility to compete this report, we express our deepest thanks to Mr. Praveen
Kumar SR. Transport Officer (Logistics) for taking part in useful decision &
giving necessary advices, guidance and arranged all facilities.

I take this opportunity to thank Yashpalsinh Jadeja (Assistant Professor),

Project Guide Centre for Management Studies and Research, Ganpat University.
He encouraged us through our summer Internship Project. He gave us valuable
time and guided us at each step with his expertise and provided us all the
information required for our project and Dr. Maurvi Vasavada Chairperson,
GNU-Centre for Management Studies and Research for providing us with
wonderful infrastructure facilities and the sound atmosphere that promotes
learning.

Page- VIII
 EXECUTIVE SUMMARY

With its headquarters in New Delhi, The Oil and Natural Gas Corporation is an
oil and gas producer and explorer in India. On August 14, 1956, the Indian
government established ONGC. The Ministry of Petroleum and Natural Gas is in
charge of overseeing the activities of this public sector undertaking.

Oil and Natural Gas Corporation (ONGC) Limited (the Company) is an integrated
oil exploration and production company. The Company conducts its exploration
activities through ‘Basins’ and production activities through ‘Assets’. Presently,
the Company has 13 crude oil producing Assets both in offshore and onshore
areas.

The well fluids from the offshore well head platforms are transported to the
process platforms through subsea well fluid lines. At the process platform, the
well fluids are separated into crude oil, gas and water. The separated, partially
stabilized, crude oil is then pumped through the trunk lines to the onshore
terminal (Uran) for further processing/stabilization before sale to consumers.

The partially stabilised crude oil dispatched to Uran plant is measured using
Turbine Meters (TM) at the outlet of the process platforms. This is the ‘wet
crude’. The water content in the crude is separately measured using Auto
Samplers. The ‘wet crude’ is adjusted for the water content, so measured, to arrive
at the ‘dry crude’ dispatched from the offshore terminal which is reported as the
crude oil production from Mumbai offshore.

ONGC defines ‘condensate’ as liquid hydrocarbons produced with natural gas,

separated by cooling and other means. ‘Condensate’ is distinct from crude oil,
being produced from gas fields. Inclusion of ‘condensate’ quantity as crude oil
production is neither in line with international reporting systems nor with the
practice followed by domestic JVs, in which ONGC has participating interest.

Page- IX
 TABLE OF CONTENT

Page
Particulers
no.
CERTIFICATE BY THE GUIDE II
CERTIFICATE BY THE MENTOR III
CANDIDATE STATEMENT IV
COMPANY CERTIFICATE VI
PREFACE VII
ACKNOWLEGEMENT VIII
EXECUTIVE SUMMARY IX
CHAPTER 1: CRUDE OIL AND NATURAL GAS 1-18
1.1 Introduction 1
1.2 Marcket Size (world wide) 4
1.3 Process of oil making 5
1.3.1 Understanding the number of gas production 6
1.4 Oil imports and exports 7
1.4.1 Is the Energy informaction Administration (EIA) 8
1.5 Charctristics 10
1.6 Developments 11
1.6.1 Oil-Led Developments 12
1.7 Analysis 13
1.8 Benefitis 15
1.9 Futures Scenario 17
CHAPTER 2: COMPANY PROFILE 19-38
2.1 General information 19
2.1.1 Growth story of ONGC 20
2.2 Size of company 21
2.3 Bord of Directors 22
2.3.1 Bord leveal committees 22
2.3.2 Organogram 23
2.4 History of ONGC 24
2.5 Manufacturing process 26
2.6 Produt and Services 27
2.6.1 Product 27
2.6.2 Services 27
2.7 ONGC Transportation 28
2.8 ONGC Supply Chain Management 29
2.9 CSR Projest of ONGC 30
2.10 Subsidiaries 31
2.10.1 Hinudustan petroleum corporation limited (HPCL) 31
2.11 Success of ONGC 32
2.12 ONGC Analysis 33
2.13 Traning and Development at ONGC 35
2.13.1 Traning 36
2.13.2 Development 36
2.14 ONGC Vision and Mission 37
2.14.1 Vision 37
2.14.2 Mission 38
2.15 ONGC Sports 38
CHAPTER 3: LITERATURE REVIEW 39-54
3.1 What is vendor rating 39
3.2 Criteria for vendor rating 40
3.3 Supplier evaluation or vendor rating 8-Techniques 42
3.4 Vendor rating strategy in ONGC 43
3.4.1 Introduction about SAP 43
3.4.2 Screenshot of SAP in ONGC company 44
3.4.3 Tender Agreement on ONGC 45
3.4.4 ONGC Experience Certificate 47
3.5 Awards and Certification 48
3.6 Benefitis 48
3.7 Article Reference 49
3.8 Research Gap 54
CHAPTER 4: RESEARCH METHODOLOGY 55-64
4.1 Research Problem 55
4.2 Objective of the study 56
4.3 Research Design 57
4.3.1 Experiment Research Design 57
4.3.2 Exploratory Research Design 57
4.3.3 Descriptive Research Design 59
4.4 Type of Data 59
4.4.1 Primary Data 59
4.4.2 Secondary Data 59
4.5 Research Instrument 60
Questionnaire Design 60
4.5.1 4.5.1.1 Unstructured Questionnaire 60
4.5.1.2 Satructured Questionnaire 61
4.6 Traget population 61
4.7 Sampling Design 61
4.7.1 Sampling size and Scope 61
4.7.2 Data collecated Technique 62
4.8 Scale 62
4.8.1 5- Points likert type scale 62
4.8.2 Guttman sceal 63
4.8.3 Demogrphic Questions 63
4.9 Data Analysis 63
4.9.1 Coading and Cleaning the data 64
4.9.2 Descriptive Analysis 64
CHAPTER 5: DATA ANALYSIS 65-85
CHAPTER 6: FINDINGS 86
CHAPTER 7: LIMITATION 87
CHAPTER 8: CONCLUSION 88
BIBLIOGRAPHY 89-91
ANNEXURE 92-95
 LIST OF TABLES

TABLE PAGE
CHAPTER TITEL
NO. NO.
4 4.3 Factors and references tables of Exploratory research design 58
Freuency & percentage table Do you know vendor rating?
5.1 65
Freuency & percentage table According to you what is vendor
5.2 rating? 66

5.3 Freuency & percentage table How long have been a vendor? 67
Freuency & percentage table You are working in any company
5.4 other than ONGC? 68
Freuency & percentage table How long have you been vendor at
5.5 ONGC? 69
Freuency & percentage table Do you read all the papers while
5.6 entering to agreement of vendor rating with ONGC? 70
Freuency & percentage table If you are a vendor in ONGC what
5.7 service do you provide? 71
Freuency & percentage table ONGC company has an internal and
5.8 external audit program? 72
Freuency & percentage table ONGC company gives benefits to
5.9 vendor? 73
Freuency & percentage table What is a contract and ehat are its
5.10 elements? 74
5
5.11 Freuency & percentage table ONGC provides training program. 75
Freuency & percentage table I read all papers while I make an
5.12 agreement. 76
Freuency & percentage table The management system of ONGC is
5.13 good. 77
Freuency & percentage table My experience with ONGC is
5.14 pleasant. 78
Freuency & percentage table ONGC order reuirement clearly
5.15 defined. 79
Freuency & percentage table As a vendor I am assessed and
5.16 monitored. 80
Freuency & percentage table Treatment of services vendor in
5.17 ONGC is unbiased. 81
Freuency & percentage table ONGC cleanly convey my rating
5.18 results. 82
Freuency & percentage table Rating process of ONGC is clear and
5.19 transparent. 83

5.20 Freuency & percentage table I very well know criteria of ONGC. 84
 LIST OF FIGURES

FIGURE PAGE
CHAPTER TITEL
NO. NO.
5.1 65
Do you know vendor rating - bar Chart
5.2 66
According to you what is vendor rating - pie chart
5.3 67
How long have been a vendor - pie chart
5.4 68
You are working in any company other than ONGC - bar Chart
5.5 69
How long have you been vendor at ONGC - pie chart
Do you read all the papers while entering to agreement of vendor
5.6 70
rating with ONGC - bar Chart
5.7 71
If you are a vendor in ONGC what service do you provide - pie chart
ONGC company has an internal and external audit program - bar
5.8 72
Chart
5.9 73
ONGC company gives benefits to vendor - bar Chart
5.10 74
What is a contract and ehat are its elements - pie chart
5
5.11 75
ONGC provides training program - bar Chart
5.12 76
I read all papers while I make an agreement - bar Chart
5.13 77
The management system of ONGC is good - bar Chart
5.14 78
My experience with ONGC is pleasant - bar Chart
5.15 79
ONGC order reuirement clearly defined - bar Chart
5.16 80
As a vendor I am assessed and monitored - bar Chart
5.17 81
Treatment of services vendor in ONGC is unbiased - bar Chart
5.18 82
ONGC cleanly convey my rating results - bar Chart
5.19 83
Rating process of ONGC is clear and transparent - bar Chart
5.20 84
I very well know criteria of ONGC - bar Chart
 CHAPTER-1

CRUDE OIL AND NATURAL GAS

1.1 INTRODUCTION

As the world's primary fuel sources, oil and natural gas are major industries in the energy
industry and have a significant impact on the global economy. Oil and gas production and
distribution processes and systems are very complex, capital-intensive, and require cutting-
edge technology.
Because of the production process or upstream part of the industry, natural gas has historically
been tied to oil. Natural gas has been regarded as a nuisance for much of the industry's history,
and it is still flared in huge quantities in several parts of the world, notably the United States.
As a result of shale gas development in the United States, as described above, and its lower
greenhouse gas emissions when combusted when compared to oil and coal, natural gas has
taken on a more major position in the world's energy supply.
This guide examines the oil and gas industry and is meant to serve as a research tool for sources
all around the world, with a focus on the United States. It includes an overview of firms and
organizations, statistics and pricing tools, and laws, as well as a brief history of the oil and gas
industry. Typically, the industry is separated into three categories.
The oil and gas industry, which employs hundreds of thousands of people worldwide and
generates hundreds of billions of dollars each year, is considered the largest in the world in
terms of dollar value. These oil and gas firms are so important in regions where the big NOCs
are located that they frequently contribute a large proportion to national GDP.

1
  Information on the Oil Industry
Because crude oil prices are more volatile than stock or currency prices, it is critical for
successful investors and traders to have good information sources that report on the many
factors that might influence oil prices. Although there are numerous websites that provide crude
oil news, just a few broadcast breaking news and current pricing. The three links below provide
up-to-date information.
1. Market Watch- Market Watch offers a comprehensive range of business and personal
financial news, as well as real-time analysis, investment tools, and data. Despite
covering all elements of financial markets, it is one of the first to report on breaking
news, publishing headlines as soon as it becomes available. These headlines can be
found under the tab "Latest" at the top right of its home page. Market Watch also adds
information as needed, posting stories to expand on its headlines, sometimes only a
paragraph or two long, and updating them throughout the day.
2. Reuters Commodities Pages- A commodity-specific section of the Reuters news
service's website publishes breaking oil news, background stories, and current pricing.
It also has more recent in-depth stories and analysis of the sector as a whole, as well as
price-driving sector updates, and is good at releasing any important news as soon as it
becomes available.
3. CNBC- A page dedicated to oil news may be found on CNBC.com. It publishes
relevant oil-related articles during U.S. market hours. When you look at the main page,
this works out to be around once every hour. CNBC routinely changes its articles as oil
prices change, but unlike Market Watch, it does not give a live stream of oil prices.
The organization of the handbook reflects these three sections. In our Renewable Energy
Industries: A Research Guide and Green Business: Sources of Information Guide, we explore
renewable and alternative energy enterprises. A number of Congressional Research Service
papers on renewable energy themes have been published to provide an overview of US energy
sources, including.
An Overview of the Oil and Gas Industry, Learn about the three major oil and gas industries,
as well as the industry's current situation and future prospects. We present a picture of the
petroleum sector in this introduction to the oil and gas industry.
• transportation and storage are classified as midstream; and refining and marketing are
classified as downstream.

 Oil and gas industry outlook: 2019

The oil and gas industry has recently recovered from lows such as the price collapse in 2013
and major environmental disasters such as the Deepwater Horizon Gulf of Mexico Oil Spill in
2014.
Another danger to traditional oil and gas firms is the trend toward renewable and alternative
energy. With the rise of pro-environmental laws and political pressure, the business is being
scrutinised more than ever before.

2
As global economies and infrastructure continue to rely significantly on petroleum-based
products, the world's dependence on oil and gas is growing. Even with a weakening global
economy and dwindling oil supplies, discussions of when the world's oil and gas output will
peak seem to remain on the outskirts. The oil and gas industry continues to hold enormous
influence in international economics and politics, particularly when it comes to employment
levels, with the oil and gas industry in the United States providing at least 10 million jobs.
The recovery occurred for numerous reasons, the most important of which being the success
of the OPEC-Non-OPEC production limit agreement. Furthermore, developing countries like
China, Brazil, and Russia are stepping up their exploration and production activities. However,
geopolitical factors such as Venezuela's persistent problems, Iran's nuclear programme, and
Qatar's withdrawal from OPEC will have an impact on oil and gas supply.
As the industry enters its third year of recovery, there has been a resurgence of faith in it.
Increased upstream production continues to have a favourable knock-on effect for midstream
enterprises, resulting in rapid growth. Crude oil prices have also levelled out, hovering around
$50 per barrel. Furthermore, 100,000 jobs are predicted to be created in 2019, and the number
of active drilling rigs in the United States has risen to 780+ from 591 a year ago.

Globally, 30 billion barrels of oil are consumed each year, largely by wealthy countries. Oil
also accounts for a large portion of regional energy consumption, with 32 percent in Europe
and Asia, 40 percent in North America, 41 percent in Africa, 44 percent in the South, and 53
percent in the Middle East.
Oil & Gas IQ's top-rated oil and gas industry information, including articles, videos, webinars,
podcasts, and in-depth reports, may be found in this resource centre. The most recent content
can be seen on the right-hand sidebar.
Oil & Gas IQ is an online resource dedicated to giving the most up-to-date information to the
global oil and gas community. We look into the latest trends in the oil and gas industry and
help oil and gas professionals continue their education. We offer a variety of technical and
strategic oil and gas industry conferences across Europe, Asia, the United States, and the
Middle East through our online oil and gas content.

3
Solar power and offshore wind are becoming more and more cost-effective ways to generate
electricity. According to IRENA, new renewable energy sources will be cheaper than new oil
and natural gas sources by over 80%.
The UK continental shelf appears to be making a comeback, with scores of unexplored
discoveries and drilling prospects on the horizon. Furthermore, we may anticipate a brighter
future for UK upstream production. Because there are 16 planned greenfield projects with
identified development plans and 29 announced greenfield projects projected to enter
production between 2019 and 2025, the UK offshore sector is likely to improve after reaching
historic lows in recent years.
Beginning oil and gas sector specialists Oil and gas professionals who want a comprehensive
overview of the industry as a whole Translators who need a solid command of oil and gas
terminology.
To gain an understanding of the activities of a vertically integrated oil and gas company; to
review the oil and gas exploration processes, deposits research, drilling, extraction,
transportation, processing of crude oil and gas, refining, and product sale; to provide a brief
overview of forms of agreements between companies and the government, as well as to discuss
relevant taxation issues; and to discuss risk aspects of the oil and gas industry.

1.2 MARKET SIZE (WORLD WIDE)

Global Oil and Gas Market Report 2021 - Market Forecast and Trends, Opportunities and
Strategies
June 18th, 2021
The oil and gas market comprises of oil and gas sales by companies (organisations, sole traders,
or partnerships) that are involved in the exploration, extraction, drilling, and refining of oil and
gas, as well as certain of its derivatives. Petrochemicals are not included in this market.
 Size and Drivers of the Global Oil and Gas Market
The worldwide oil and gas industry is predicted to increase at a compound annual growth rate
(CAGR) of 25.5 percent from $4677.45 billion in 2020 to $5870.13 billion in 2021. The
increase is primarily due to companies reorganising their operations and recovering from the
impact of COVID-19, which had previously resulted in restrictive containment measures such
as social distancing, remote working, and the closure of commercial activities, all of which
created operational challenges. At a CAGR of 6%, the market is estimated to reach $7425.02
billion in 2025. The oil and gas business benefited from low interest rates in most developed
countries.
Geographically: North America, South America, Asia-Pacific, Eastern Europe, Western
Europe, the Middle East, and Africa make up the global oil and gas market. Asia Pacific, which
will account for 33% of the global oil and gas market in 2020, is the most populous of these
regions.

4
Big data analytics and artificial intelligence (AI) are being investigated by major oil and gas
businesses in order to improve decision-making abilities and ultimately boost revenues.
Through a large number of sensors deployed across the oil rig, companies in this field collect
massive volumes of raw data relating to the operation of refineries, pipelines, and other
infrastructure. Companies can spot patterns using big data analytics, allowing them to react
swiftly to unwelcome changes or probable faults and save money. Companies can make better
drilling and operating decisions thanks to AI.
The global oil and gas market is further divided into types and geographical regions. Type by
type: Upstream activities in the oil and gas industry, and downstream products in the oil and
gas industry
Covered sub-sections: Crude oil, natural gas, oil and gas well drilling services, oil and gas
supporting activities, refined petroleum products, asphalt, and lubricating oil and grease are all
examples of petroleum products.
The Business Research Company's Oil and Gas Global Market Report 2021 is one of a series
of new reports that provides oil and gas market overviews, analyses, and forecasts market size
and growth for the global oil and gas market, oil and gas market share, oil and gas market
players, oil and gas market segments and geographies, and the revenues, profiles, and market
shares of the market's leading competitors. Based on industry trends and leading rivals'
methods, the oil and gas market study identifies top countries and segments for opportunities
and strategies.

1.3 PROCEESS OF OIL MAKING

In terms of economic value, the oil and gas industry is one of the world's largest, earning an
anticipated $5 trillion in global revenue by 2022. Oil plays a vital role in the global economy,
influencing everything from transportation to heating and electricity to industrial production
and manufacturing.
Crude oil and natural gas, which are naturally occurring chemicals found in rock in the earth's
crust, are made up of hydrocarbons. The compression of plant and animal remnants in
sedimentary rocks including sandstone, limestone, and shale produces these organic raw
materials.
The sedimentary rock itself is the result of ancient oceans and other bodies of water depositing
silt. The rotting carcasses of plants and animals were incorporated into the developing rock
when layers of sediment were formed on the ocean floor. After being exposed to particular
temperatures and pressure ranges deep under the earth's crust, the organic material finally
converts into oil and gas.
Because oil and gas are less dense than water, they migrate toward the earth's surface through
permeable sedimentary rock. An oil and gas reservoir is generated when hydrocarbons are
trapped behind less porous cap rock. These oil and gas reservoirs are where we get our crude
oil and natural gas.

5
Drilling through the cap rock and into the reservoir brings hydrocarbons to the surface. A
productive oil or gas well can be built after the drill bit reaches the reservoir, and the
hydrocarbons can be pumped to the surface. When drilling operations fails to produce
commercially viable quantities of hydrocarbons, the well is regarded as a dry hole, and it is
usually plugged and abandoned.
The upstream sector is characterized by high risks, high investment capital, long duration
(because to the time it takes to locate and drill), and technological complexity. Almost every
line item on an E&P company's cash flow and income statement is directly tied to oil and gas
production.
Typically, E&P businesses do not own drilling equipment or have a drilling rig workforce.
Instead, they hire contract drilling companies to drill wells for them, and contract drilling
businesses often bill based on the amount of time they spend working for an E&P company.
Drillers do not make revenue from oil and gas production in the same way that E&P businesses
do.
Following the drilling of a well, a variety of actions are required to generate and maintain its
production throughout time. Logging, cementing, casing, perforating, fracturing, and
maintenance are examples of well service activities. Within the oil and gas industry, oil drilling
and oil maintenance are thus two distinct commercial operations.
High regulation, notably in pipeline transmission, and low capital risk characterize the
midstream business. The success of upstream companies has a natural bearing on the category.
Companies involved in the exploration and production of oil and gas are known as upstream
firms. These are the companies that scour the globe for raw material reservoirs and then drill
to extract the resource. These businesses are typically referred to as "E&P" corporations, which
stands for "exploration and production."
Refineries and gas stations are downstream enterprises. Refineries are the businesses in charge
of eliminating impurities and transforming crude oil and gas into consumer goods like gasoline,
jet fuel, heating oil, and asphalt. Consumers fill up their tanks at gas stations.

1.3.1 Understanding the Numbers of Gas Production

The volume of natural gas produced is measured in cubic feet. The term Mms stands for one
million cubic feet of gas, just as it does for oil. Buff stands for one billion cubic feet, while Tiff
stands for one trillion cubic feet.
Natural gas futures, which are traded on the CME Group futures exchange, are not measured
in cubic feet. Instead, the futures market is based on 1 million British thermal units, or MMBtu,
which is around 970 cubic feet of gas.
E&P businesses frequently refer to their output in terms of barrels of oil equivalent (BOE).
Companies frequently convert gas production into oil equivalent production to determine BOE.
One BOE contains the energy equivalent of 6,040 cubic feet of gas, or roughly one bbl. to six

6
Miff in this computation. 3 Oil amount can be converted to gas quantity in a similar manner,
and gas producers frequently use the term McPhee to refer to production in terms of gas
equivalence.
E&P businesses use the same bbl. and much phrases to report their oil and natural gas
reserves—the amount of oil and gas they control that is still in the ground. Reserves are
frequently utilized to appraise E&P firms and make revenue and earnings estimates. As
supplemental information, public oil and gas firms must disclose proved oil and gas reserve
numbers, but not as part of their financial statements.
New reserves are, of course, an important source of future revenue, therefore E&P companies
invest a lot of time and money looking for new untapped reservoirs. If an E&P business ceases
investigating, it will be left with finite reserves and dwindling oil and gas supplies. Over time,
revenue will certainly decrease. In other words, E&P firms can only sustain or increase revenue
by purchasing or discovering new reserves.

1.4 OIL IMPORTS AND EXPORTS

In 2020 and 2021, the United States was a net exporter of total petroleum. In 2021, the US
exported around 8.63 million barrels per day (b/d) of petroleum and imported about 8.47
million b/d, making the US an annual total petroleum net exporter for the second year in a row,
at least since 1949.
In 2021, total petroleum net exports were estimated to be around 0.16 million b/d, compared
to 0.63 million b/d in 2020. In addition, in 2021, the United States produced2 around 18.66
million barrels per day of petroleum and consumed3 approximately 19.78 million barrels per
day. Even though total petroleum exports in the United States exceeded total petroleum imports
in 2020 and 2021, the country continued to import crude oil and petroleum products from other
countries to meet local demand and supply international markets.
In 2021, the United States remained a net crude oil importer, with 6.11 million barrels per day
imported and 2.90 million barrels per day exported. However, some of the crude oil that the
US imports is refined into petroleum products that the US exports, such as gasoline, heating
oil, diesel fuel, and jet fuel. Additionally, some imported petroleum may be kept and then
exported.
Imports of petroleum into the United States peaked in 2005. Gross and net total petroleum
imports in the United States peaked in 2005, after increasing steadily every year from 1954 to
2005. Increases in local petroleum production and exports have aided in the reduction of yearly
total petroleum net imports since 2005. Annual total petroleum net imports were actually
negative in 2020 and 2021, the first time this has happened since at least 1949.
Since the 1990s, petroleum imports from Canada have expanded dramatically, and Canada is
now the largest single source of total petroleum and crude oil imports into the United States.
Canada supplied 51 percent of gross total petroleum imports and 62 percent of gross crude oil
imports to the United States in 2021.

7
1.4.1 Is the Energy Information Administration (EIA) aware of which
corporations buy imported crude oil or gasoline in the United States?
Although the EIA is unable to determine which companies sell imported gasoline or gasoline
derived from foreign oil, it does provide information on companies that import petroleum into
the US. However, just because a firm imports crude oil does not indicate that those imports
will be utilized to make gasoline sold under that company's brand name. Gasoline from several
refineries and import terminals is frequently blended for pipeline transport. Different service
station owners in the same area may buy gasoline from the same bulk terminal, which may or
may not include imported gasoline or gasoline refined from imported oil.
Many oil exporting nations have expressed an interest in establishing or expanding national
flag tanker fleets. These desires reflect many of the same economic and political factors that
have prompted other countries with significant foreign trade to promote their own maritime
industries, such as the need for a logical complement to their international trade; the prospect
of improving balance of payment, particularly through the earning of "hard" currency;
increased domestic employment; and enhanced international prestige.
The Arab countries have expressed the greatest desire for a national flag tanker fleet. The Arab
Maritime Petroleum Transport Company (AMPTC), founded in 1973 by a group of eight
OPEC members, today owns a fleet of eight tankers totaling 2 million dwt.
The total Arab tanker fleet increased from 4 million dwt in 1976 to 11 million dwt in 1978,
with little change since then. Table 6-11 illustrates the tanker fleets of all OPEC members as
of January 1, 1980. The 1976 fleet comprised 1.4 percent of the world tanker fleet, while the
1980 fleet represented 3.8 percent. These fleets have been built both through new construction
and through the purchase of older vessels on the global market.
The Organization of Arab Petroleum Exporting Countries (OAPEC) is a group of 21 Arab oil-
exporting countries that was founded in 1968 to protect shared interests in the Arab oil industry.
OAPEC conducts and co-sponsors energy-related conferences and seminars, including
technological breakthroughs.
The Secretary-Annual General's Report, the Annual Statistical Report, which includes selected
basic economic and energy indicators for Arab countries and the world, the OPEC Bulletin
(monthly; in Arabic and English) with economic rather than technical items, Oil and Arab Co-
operation (quarterly; Arabic), Energy Resource Monitor (quarterly; Arabic), and Annual
Energy Bibliography are all published by Kuwait's Information and International Relations
Department (Arabic and English).
One of the most significant social consequences of the resource curse is that, given their
revenues, oil-exporting countries have unusually high poverty rates, poor health care, high rates
of child mortality, and poor educational performance—outcomes that contradict popular
beliefs about what should happen within these countries.
One apparent option is to diversify the economy and lessen the importance of the oil or gas
sector. Since the early 1970s, oil-exporting countries have made a show of diversifying their
economies away from crude oil exports. However, the overall track record has been dismal,
with vast sums of public funds poured into inefficient and uncompetitive businesses.

8
Although most forms of primary commodity reliance are linked to poverty, not all commodities
are equally to blame. Minerals in general are associated to high levels of poverty, and oil
reliance in particular is linked to low life expectancy and high rates of malnutrition.
Oil dependency has an uncertain association with poverty alleviation, which is due to the
boom–bust cycles that come with resource dependence. During the "euphoric," or "boom,"
period at the start of oil exploitation for export, per capita income grows. Petroleum profits,
particularly in the early stages of extraction for export, transform a society, often abruptly and
profoundly. Employment rises, infrastructure improves, and per capita income rises at a
breakneck pace. Per capita oil exports in North Africa and the Middle East, for example,
increased from $270 in 1970 to $2042 in 1980, resulting in increased economic activity.
Surprisingly, despite what appears to be plenty, a large percentage of people in oil-exporting
countries remain poor or suffer from significant fluctuations in their welfare that eventually
lead to poverty. Consequently, despite large increases in per capita income over the past several
decades, all oil-dependent countries have seen their populations' living standards fall, often
severely. Even the world's wealthiest oil exporters are affected by this boom–bust cycle. Saudi
Arabia, for example, has seen its per capita income drop from $28,600 in 1981 to $6800 in
2001, despite having the world's largest proven reserves.
It's unclear why oil-producing countries' educational performance is so bad. Because the high
skill level required by oil-rich countries in their main sector may be purchased or imported,
their governments may not be faced with the same pressing educational needs and may
undervalue the need of robust educational programmers. They may see more urgent
requirements than long-term investments in education that result in long-term development
benefits because they are inundated with easy money.
Education also performs less than predicted when compared to available resources, impacting
future growth possibilities. Countries that rely on natural resources overlook the development
of their human resources, either mistakenly or deliberately, by paying insufficient attention to
and spending on education. As a result, school enrollments in resource-rich areas tend to be
lower than in resource-poor areas.
This drop has been severe for many nations, including Algeria, Angola, Congo, Ecuador,
Gabon, Iran, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, and Trinidad and Tobago, with real per
capita incomes returning to the 1970s and 1980s. Poverty development has been disastrous in
a few countries, most notably Nigeria and Venezuela, where real per capita income has plunged
to 1960 levels. It's almost as if 40 years of progress had never happened.

9
1.5 CHARACTERISTICS

Crude oil is a liquid petroleum that collects in porous rock formations throughout the Earth's
crust and is collected for use as a fuel or to be processed into chemical compounds.
Here's a quick rundown of crude oil. See petroleum, petroleum production, and petroleum
refining for more information.
Crude oil is a mixture of comparatively volatile liquid hydrocarbons (compounds primarily
made of hydrogen and carbon), with some nitrogen, Sulphur, and oxygen thrown in for good
measure. Those elements combine to generate a wide range of complicated molecular
structures, some of which are difficult to identify. Regardless of differences, practically all
crude oil has a carbon content of 82 to 87 percent by weight and a hydrogen content of 12 to
15 percent by weight.
Petrochemicals, like crude oil and natural gas, are classified as hydrocarbons since they are
largely made up of carbon and hydrogen. When the carbon atoms of a molecule are linked by
single bonds, the molecule is said to be saturated. The molecules are said to be unsaturated if
they are connected by one or more double bonds. Because unsaturated chemicals are more
chemically reactive and can be converted more quickly into other petrochemicals, they are
favored as petrochemical feedstock.
Crude oil is found underground at varying pressures based on depth. It can hold a lot of natural
gas, which is held in solution by the pressure. Water, as well as liquid petroleum and gas,
frequently flows into an oil well. Surface equipment collects all of these fluids for separation.
Clean crude oil is stored at near atmospheric pressure in cylindrical steel tanks as large as 30
meters (100 feet) in diameter and 10 meters (33 feet) tall, usually aboveground.
Paraffin’s, naphthenic, and aromatics are the most common hydrocarbon compounds found in
crude oils, and they are used to classify them. Paraffin’s are the most abundant hydrocarbons
in crude oil, and certain liquid paraffin’s are key components of gasoline (petrol), making them
highly valuable. Naphthenic are a key component of all liquid refinery products, but they also
contribute to some of the refinery's heavy asphalt-like leftovers. Aromatics make up a minor
fraction of the majority of crudes. Benzene, a common building block in the petrochemical
industry, is the most frequent aromatic in crude oil.
Because crude oil is made up of so many different elements and quantities, it has a wide range
of physical properties. For example, it can be colorless or black in appearance. Specific gravity
is perhaps the most essential physical attribute (i.e., the ratio of the weight of equal volumes of
a crude oil and pure water at standard conditions)
Pure water is given a measurement of 1 in laboratory specific gravity measurements;
compounds lighter than water, such as crude oil, are given measurements less than 1. The
petroleum sector, on the other hand, employs the American Petroleum Institute (API) gravity
scale, which gives pure water an API gravity of 10°. API gravities greater than 10 are found in
liquids lighter than water, such as oil. Crude oils are divided into three categories based on their
API gravity: heavy, medium, and light.

10
Crude oil is also classified as "sweet" or "sour" based on the amount of Sulphur present, which
can be found as elemental Sulphur or in compounds like hydrogen supplied. Sulfur level in
sweet crudes is 0.5 percent or less by weight, while Sulphur content in sour crudes is 1 percent
or higher by weight. In general, the Sulphur content of crude oil increases with its weight.
Because Sulphur oxides emitted into the atmosphere during oil burning are a major pollutant,
excess Sulphur is removed from crude oil during refining.
Gasoline is made up of hundreds of distinct hydrocarbons in a complicated composition. The
majority of them are saturated, with 4 to 12 carbon atoms per molecule. The temperature of
gasoline used in automobiles boils primarily between 30° and 200° C (85° and 390° F),
depending on height and season. In comparison to vehicle gasoline, aviation gasoline has lower
proportions of both less-volatile and more-volatile components.
Gasoline, commonly known as gas, is a mixture of volatile, flammable liquid hydrocarbons
generated from petroleum that is used as a fuel for internal combustion engines. It's also utilized
as an oil and fat solvent. Because of its high energy of combustion and ability to mix quickly
with air in a carburetor, gasoline, which was originally a by-product of the petroleum industry
(kerosene being the primary product), became the favored motor fuel.
At originally, gasoline was made by distilling crude petroleum and extracting the volatile, more
valuable parts. Later techniques, aimed to increase the output of gasoline from crude oil, used
cracking to separate big molecules into smaller ones. Thermal cracking, which uses heat and
high pressures, was introduced in 1913, but catalytic cracking, which uses catalysts to speed
up chemical reactions and produce more gasoline, took over after 1937.
Polymerization, which involves converting gaseous olefins like propylene and butylene into
larger molecules in the gasoline range; alkylation, which involves combining an olefin and a
paraffin like isobutene; isomerization, which involves converting straight-chain hydrocarbons
to branched-chain hydrocarbons; and reforming, which involves rearranging the molecular
structure with heat or a catalyst.
The rising price of petroleum (and thus gasoline) in many nations in the late twentieth century
led to an increase in the use of gasohol, which is a blend of 90% unleaded gasoline and 10%
ethanol (ethyl alcohol). Because ethanol can be made from grains, potatoes, and other plant
matter, it burns well in gasoline engines and is a desirable alternative fuel for some uses. Also
see petroleum.

1.6 DEVELOPMENTS

Many of the world's most diverse and biologically important places, such as the Arctic and the
Congo Basin's Virunga National Park, also happen to have large subterranean oil and gas
deposits. The extraction of these oil and gas resources may cause long-term environmental
damage. Oil and gas exploration and production, in particular, disrupts migratory routes,
degrades vital animal habitats, and results in oil spills, all of which can be catastrophic to the
species and humans who rely on these ecosystems.

11
The oil that is most conveniently accessible has already been developed. Oil and gas
exploration is now taking place in some of the world's most inhospitable locations. It extracts
hydrocarbons from deep within the earth using novel and often unproven technology.
Blowouts, pipeline leaks or failures, and shipping mishaps can all result in oil spills. Whether
in the Congo Basin, the Timor Sea, or the Arctic, these spills represent a major threat to
ecosystems. Furthermore, there is no established, practical procedure for cleaning up oil in ice
in the Arctic.

1.6.1 Oil-Led Development: Social, Political, and Economic Consequences

3 Oil-Led Development's Poverty and Social Welfare Consequences

1. SHIPPING RATES HAVE BEEN INCREASED

Increased shipping in vulnerable locations is a result of oil and gas support boats. Increased
shipping creates greater noise, which can interfere with many species' communication and
raises the risk of collisions with marine mammals, particularly whales. It also means more
pollution and a higher risk of oil or fuel spills in the event of an accident.
Oil firms' support infrastructure, such as roads, pipelines, and other facilities, can damage and
destroy crucial habitat and obstruct migratory animal movement. Only 17 percent of Africa's
gorilla population resides in protected areas, and enormous swaths of gorilla habitat have
already been lost as oil and gas corporations, as well as forestry companies, encroach on gorilla
territory.
In the frequently gloomy depths of the ocean, whales and other marine mammals utilize sound
to navigate, find mates, and find food. For some species, seismic disturbances, such as the air
gun used by oil and gas companies to explore for oil offshore, can be deafening. Excessive
ocean noise from exploration and drilling for oil and gas could result in injury, bewilderment,
and even death.
2. PROMOTING SUSTAINABLE DEVELOPMENT
In regions where oil and gas may be found, WWF advocates for responsible development. If
development does take place, WWF wants to make sure it is carried out in the safest and most
responsible manner possible. Development must stay away from particularly sensitive places.
In certain places, such as the Arctic, this may be our only chance to get it right.
3. DEVELOPMENT PROTECTION FOR SENSITIVE AREAS
Within areas slated for oil extraction, the WWF is identifying the most significant and sensitive
places for both wildlife and indigenous peoples. We're looking for places that indigenous
people and communities rely on for food, resources, or cultural significance when identifying
these areas. We also utilize a method called RACER, which stands for Rapid Assessment of
Circus-Arctic Ecosystem Resilience. The WWF can use this tool to identify locations that are
particularly resistant to climate change and should be protected.

12
1.7 ANALYSIS

 Production of Crude Oil

Rough oil generation amid July 2021 was 2548.78 TMT, which is 3.78% lower than target
for the month and 3.22% lower when compared with generation of July 2020. Total rough
oil generation amid April-July, 2021 was 9961.65 TMT, which is 2.64% and 3.37% lower
than target for the period and generation amid comparing period of final year separately.
Unit-wise and State-wise unrefined oil generation is given at Annexure-I. Unit-wise rough
oil generation for the month of July 2021 and in total for the period April-July, 2021 vis-à-
vis same period of final year has been appeared in Table-1 and month-wise in Figure-1

Oil and Natural Gas Corporation (ONGC) crude oil production in the July 2021 designated
block was 1664.94 TMT, 3.81% below the monthly target and 4.23% lower than the July
2020 production. From April to July 2021, ONGC's cumulative crude oil production was
6477.08TMT, 3.12% and 4.85% below the year-on-year targets and production. The
reasons for the loss of production are Production from WO-16 clusters was lower than
expected due to delayed mobilization of MOPU Sager Sam rat. Production from the Cluster
8 field was lower than expected due to input delays and platform installation delays due to
Corvid’s influence.

13
  Production of Nature Gas
Characteristic gas generation amid July 2021 was 2891.96 MMSCM, which is 18.36%
higher when compared with generation of July 2020 but 10.19% lower than the month to
month target. Aggregate normal gas generation amid April-July, 2021 was 11060.07
MMSCM, which is 19.85% higher than generation amid comparing period of final year but
5.37% lower when compared with target for the period. Unit-wise and state-wise normal
gas generation is given at Annexure-II. Unit-wise characteristic gas generation for the
month of July 2021 and in total for the period April-July, 2021 vis-à-vis same period of
final year has been appeared in Table-2 and month-wise in Figure-2

Characteristic gas generation by ONGC within the assignment squares amid July 2021 was
1728.91 MMSCM, which is 13.12% lower than target for the month and 10.21% lower when
compared with generation of July 2020. Aggregate characteristic gas generation by ONGC
amid April-July, 2021 was 6780.84 MMSCM, which is 10.70% and 6.81% lower than target
for the period and generation amid comparing period of final year separately. Reasons for
shortage in generation are as beneath, less than expected generation from WO-16 cluster due
to delay in mobilization of MOPU Sager Sam rat. Less than arranged generation from Vasistha
/S1 wells in EOA due to certain store related issues. Delay in graduation of gas generation from
U1 field of KG-98/2 Cluster-II due to coved affect as fabricating of subsea things and well
completion delayed. Less offtake by customers at Tripura, Rajahmundry & Cauvery. Less than
conceived generation from Dame & Gandhi field in Ankles war.

14
1.8 BENEFITIS

Natural gas is a long-term solution for meeting the world's future energy needs because it
provides reliable, flexible power generation with significantly lower CO2 emissions at a
competitive price.
The fast rise of unconventional gas and oil development in the United States has resulted in a
revolution in energy production with significant economic advantages.
Increased economic prosperity, a reinvigorated manufacturing sector, the betterment of
millions of lives through direct and indirect employment, decreased energy costs, new sources
of government revenue, and greater energy security for the country have all resulted.
Other advantages exist that cannot be quantified with numbers. For example, the industry's
support for millions of employment allows workers and their families to have better access to
health care.
Energy producers, for example, had not yet figured out how to profitably extract the massive
amounts of oil and natural gas known to exist in shale and other "tight" rock formations until
this century. However, by 2040, unconventional and other technology-driven oil and gas
sources are predicted to provide around one-fifth of the world's energy needs.
Natural gas is expected to continue to grow fast, eventually surpassing coal as the world's
second-largest fuel. Natural gas is expected to meet 40% of the estimated growth in global
energy demand from 2014 to 2040.
Natural gas is becoming increasingly vital in meeting global energy demand. Natural gas has
shown to be a dependable and cost-effective energy source for power generation, and it is
predicted to be the fastest-growing main fuel source over the next two decades.
To fulfil expanding demand until 2040, all of the world's energy sources will be required, but
a clear move toward cleaner fuels, particularly natural gas, will be evident.
The decomposition of organic compounds deep beneath produces natural gas. It can assist
address the growing need for cleaner energy in a variety of areas, including electricity
generation.
Our air is getting cleaner, and the country has reduced greenhouse gas emissions to levels not
seen in two decades, thanks to the increased use of natural gas in generating energy.
1. Other fossil fuels are more expensive than natural gas.
2. Because it burns cleaner, natural gas is the most environmentally benign fossil fuel.
3. Natural gas is a very dependable fuel...
4. When compared to renewable energy, storage and transportation are more efficient.
Natural gas is the cleanest burning fossil fuel and emits the least amount of carbon compared
to other fossil fuels. When compared to coal, natural gas can lower CO2 emissions by up to
60% when utilized to create electricity. In the United States, natural gas exploitation using
hydraulic fracturing has resulted in significant greenhouse gas reductions.

15
The prospective deployment of new technologies like Carbon Capture and Storage (CCS) could
boost natural gas's environmental benefits over time.
Natural gas is an odorless, colorless hydrocarbon that is non-renewable. It's not poisonous, but
it's incredibly flammable. According to Eurostat, natural gas accounted for 36 percent of EU
energy consumption in 2017, followed by electricity (24 percent), renewables (18 percent), and
petroleum (11 percent).
What is advantageous to one person is detrimental to another. Natural gas, for example, is
exceedingly flammable. It is its most significant benefit since we would be able to extract
considerably less energy from it if it did not have it.
Natural gas is one of the most easily stored and transported energy sources. It can be carried
by tankers or by international pipelines (in LNG form). It is less hazardous and less difficult to
store than other fossil fuels.
Natural gas is a very dependable fuel. Electricity is wonderful until a storm strikes. During a
storm, it may be knocked out, and our electrical gadgets may malfunction as a result. Natural
gas does not have the same issue.
When compared to renewable energy, storage and transportation are more efficient. Long-
distance transportation is far more efficient than the use of sustainable energy (less network
loss. One of the main drawbacks of renewable energy is that we can't efficiently store it.
Natural gas is the most environmentally friendly hydrocarbon. It is abundant and versatile,
helping to fulfil the world's expanding energy need while also partnering with renewable
energy sources. We transform natural gas to lower-emission fuels and other products by
cooling it to liquid for easier shipping to energy-hungry locations.
Natural gas has the lowest carbon content of any hydrocarbon, is odorless, colorless, and non-
toxic. It produces heat for cooking and heating, as well as supplying energy to homes and
businesses through power plants.
It also powers a variety of industrial processes that create materials and items ranging from
glass to textiles, and it's a key component of paints and plastics.
To assist meet future demand, we're striving to deploy more LNG supplies. For example,
Prelude FLNG, the world's largest floating LNG production facility, is under construction. It
will enable us to reach gas deposits off the coast of Australia that would be too expensive or
difficult to develop otherwise, and convert natural gas into LNG for export.
Natural gas is completely safe to use. One of our greatest concerns when using LPG cylinders
or any other sort of fuel is the risk of leaking. Gases have the ability to burn items and people
in their vicinity, and they can be quite harmful. Natural gas, on the other hand, is lighter than
air. If a leak occurs, it evaporates swiftly into the air, preventing a fire. Isn't that extremely safe.
It Is Abundantly Available: Natural gas is currently available in greater quantities than crude
oil or other similar items, according to experts.
It's More Effective: When compared to propane gas, natural gas produces significantly more
energy when burned, making it far more efficient.

16
1.9 FUTURES SCENARIO

An oil futures contract is a contract to buy or sell a specific quantity of barrels of oil at a specific
price on a specific date. When buying futures, the buyer and seller execute a contract that is
secured by a margin payment that covers a percentage of the contract's entire value.
End-users of oil buy futures to lock in a price; investors buy futures as a bet on what the price
will be in the future, and they earn if they estimate correctly. They will usually liquidate or roll
over their futures positions before having to accept delivery.
Oil market participants are keeping a careful eye on two big oil contracts. West Texas
Intermediate (WTI) crude, which trades on the New York Mercantile Exchange, is the
benchmark for oil futures in North America (NYMEX). North Sea Brent Crude, which trades
on the Intercontinental Exchange, is the benchmark throughout Europe, Africa, and the Middle
East (ICE).
While the two futures move in lockstep, WTI is more sensitive to economic events in the United
States, while Brent is more sensitive to those in other parts of the world.
While there are numerous futures contracts open at any given time, the front-month contract is
where the majority of trading takes place (the nearest futures contract). As a result, it is referred
to as the most active contract.
Crude oil futures prices might be higher, lower, or the same as spot prices. The price differential
between the spot and futures markets reveals something about the oil market's general state and
expectations. When futures prices are higher than spot prices, it usually suggests that buyers
are expecting the market to recover and are prepared to pay a premium for oil that will be
delivered at a later date. When futures prices are lower than spot prices, it indicates that
purchasers believe the market will deteriorate.
Oil Price Predictions
Economists and specialists struggle to forecast the direction of crude oil prices, which are
volatile and dependent on a variety of factors. They employ a variety of forecasting techniques
and rely on the passage of time to validate or refute their forecasts.
1. Oil futures prices- Oil futures contract prices are primarily used as a barometer by
central banks and the International Monetary Fund (IMF). Crude oil futures prices are
determined by two factors: supply and demand as well as market sentiment. Futures
prices, on the other hand, can be a poor prediction since they tend to add too much
fluctuation to the current oil price.
2. Regression-based structural models- The odds of certain actions on the price of oil
are calculated using statistical computer programming. Mathematicians may, for
example, take into account happenings in OPEC member countries, inventory levels,
production costs, or consumption levels. Although regression-based models have a high
predictive potential, their developers may overlook one or more components, or
unexpected variables may intervene, causing regression-based models to fail.

17
3. Time-series analysis- To account for the limits of oil futures pricing, some economists
utilize time-series models such as exponential smoothing models and autoregressive
models, which include the ARIMA and ARCH/GARCH categories. These models
examine the history of oil at various times in time in order to extract useful statistics
and forecast future values based on existing data. When economists use time-series
analysis to shorter time spans, it usually provides more accurate conclusions.
4. Bayesian autoregressive models- Adding computations to evaluate the chance of
specific projected events having an influence on oil is one method to improve the
conventional regression-based model. For predicting oil prices, most modern
economists prefer to utilise the Bayesian vector autoregressive (BVAR) model.
5. Dynamic stochastic general equilibrium graphs- Oil prices are explained using
dynamic stochastic general equilibrium (DSGE) models, which apply macroeconomic
concepts to describe complicated economic phenomena. Because DSGE calculations
are based on historical observations, their success is contingent on events and policies
continuing unchanged.
Even so, unforeseeable occurrences such as natural disasters, political crises, or societal
upheavals can throw even the most meticulous plans off.
Diesel fuel is available in a variety of grades, including "light-middle" and "middle"
distillates for high-speed engines with frequent and wide fluctuations in load and speed
(such as trucks and vehicles) and "heavy" distillates for low- and medium-speed engines
with constant loads and speeds (such as trains, ships, and stationary engines).
The cetin number (a measure of igniting ease), the ease of volatilization, and the Sulphur
concentration are all performance requirements. The highest grades are the most volatile
for vehicle and truck engines, while the lowest grades are the least volatile, leave the most
carbon residue, and frequently have the highest Sulphur content for low-speed engines.
Synthetic diesel, or Fischer-Tropic diesel, can be made from natural gas, synthesis gas
extracted from coal (see coal usage), or biogas obtained from biomass, in addition to
standard diesel fuel refined from petroleum. Biodiesel, a biofuel, is also made mostly from
oily plants like soybeans and palm oil.
These alternative diesel fuels have a low Sulphur level and can be combined with standard
diesel fuel or utilized in diesel engines without modification. Alternative diesel fuels are
frequently recommended as a way to reduce reliance on petroleum and overall emissions,
but only biodiesel can deliver a carbon dioxide benefit across its whole life cycle.

18
 CHAPTER-2

COMPANY PROFILE

2.1 GENERAL INFORMATION

On August 14, 1956, Oil and Natural Gas Corporation Limited was first established as a
commission. Later, in February 1994, the Company became a corporation. On August 14, 1956,
the Oil and Natural Gas Corporation Limited was first established as a commission. Later, in
February 1994, the Company became a corporation. The business is currently a top-notch
exploration and production firm. In the fiscal year 2002–2003, ONGC was the first company
to report a five-digit profit figure. It provides more than 75% of India's natural gas production
and more than 70% of its crude oil production to the country's economy.
There are up to 4000 people working for the company. It is really spacious. The business has
wonderful cafeteria facilities where the staff may get good meals and refreshments.
Additionally, the company has constructed a township for its employees, which offers housing
as well as sporting and recreational opportunities.
With its operations spread out across India and considerably in foreign territories, ONGC has
played a vital role in expanding the country's small upstream into a huge viable playing field
since its creation. In the inland regions, ONGC discovered new resources not just in Assam but
also in the Assam-Abakan Fold Belt and East Coast basins, as well as establishing a new oil
province in the Cambay basin (Gujarat) (both inland & offshore)

19
Early in the 1970s, ONGC ventured offshore and found Bombay High, now known as Mumbai
High, a massive oil field. The country's energy situation was altered by this discovery and later
ones of sizable oil and gas resources in Western offshore. Over 5 million tons of hydrocarbons
that had been present in the nation were later found. However, ONGC's independence and the
development of core skills in E & P activities at a level that is globally competitive represent
its most significant contribution.
Planning, promoting, organizing and implementing programmers for the development of
petroleum resources, the production and sale of petroleum products produced by it, as well as
carrying out any other duties that the Central Government may from time to time delegate to
it, were the primary responsibilities of the Oil & Natural Gas Commission under the Act's
provisions.
The mineral oil industry was included in schedule "A" industries, whose future development
was to be the exclusive and exclusive responsibility of the state, when the Government of India
issued the Industrial Policy Resolution in April 1956. Soon after the Oil & Gas Directorate was
established, it became clear that it would not be possible for the Directorate to operate
effectively given its limited financial & administrative authority as a subordinate institution of
the Government. As a result, the Directorate was given increased authority as a commission in
August 1956, even though it remained a government agency.
The security infrastructure is very excellent. Employees' families receive free medical care and
assistance with their educational pursuits. At Jwalamukhi in the foothills of the North West
Himalayas, ONGC drilled the first well in 1957. more than 75% of the natural gas produced in
India.

2.1.1 GROWTH STORY OF ONGC

Pundit Jawaharlal Lal Nehru, a visionary leader, established ONGC. Pundit Nehru had
confidence in Shri Kasha Dev Maliyah, who in 1955 established ONGC as the Oil and Gas
division of the Geological Survey of India. It was changed into an Oil and Natural Gas
Directorate a few months later. On August 14th, 1956, the Directorate became a Commission
and was given the name Oil & Natural Gas Commission. "Not only had India. Set up her own
machinery for oil exploration and exploitation...an efficient oil commission had been built
where a large number of bright young men and women had been trained and they were doing
good work."
Oil and Natural Gas Commission was transformed into a corporation in 1994, and the Indian
government designated it as one of the Nirvanas in 1997. It was subsequently granted Maharani
status in the year 2010.
Oil and gas demand is expected to increase in the foreseeable future, making the sector highly
favorable for investment. The Indian government has implemented many programmers in an
effort to meet the rising demand. Natural gas, petroleum products, and refineries are only a few
of the industry categories in which the government has permitted 100% Foreign Direct
Investment (FDI).

20
ONGC has achieved numerous milestones in its 60-year glorious journey to fulfil India's
energy goals. Over the years, ONGC's path has been a story of conviction, bravery, and
dedication. ONGC's outstanding efforts have led to the transformation of former frontier
regions into new hydrocarbon provinces. In terms of reserves and production, ONGC has
expanded from a small beginning to rank among the major E&P businesses in the world.

2.2 SIZE OF COMPANY

Company ONGC Ltd. Its shares are accessible for public purchase and trade on the stock
market. It belongs to the public sector.
The size of the unit is typically determined by the total employment and investment made by
that particular unit. While organizational structure is determined by internal relationships,
power dynamics, and responsibility to relevant departments.
A small business that has invested in more than 100 pieces of equipment and machinery is now
regarded as a large-scale entity. While the factory act provides the basis for the employment
created by a particular industry. The Factory Act provides comprehensive information on
employment in several industries. According to the Factory Act, ONGC Ltd. has a population
of almost 26,000,000,000, making it a large scale unit that is entitled to the same benefits as all
scale units.
India is anticipated to provide one of the biggest global contributions to the increase in non-
OECD petroleum consumption. India continued to be the third-largest oil consumer in the
world in 2017, consuming 4.69 million barrels per day (map) as opposed to 4.56 map in 2016.
Infrastructural length of the nation's gas pipelines was 16,226 km at the start of February 2019.
In July 2019, India produced 2.769 million metric tons of crude oil (MMT). The nation had
600 (MMT) of proven oil reserves as of 2017.
In an endeavor to increase hydrocarbon production, ONGC is always working to introduce
cutting-edge technologies for better accuracy and real-time data collection in reservoir
characterization. The most recent endeavor was the Drill Stem Testing Operation in Well WO-
24#3, which involved the use of wireless Surface readout technology.
One of the biggest E&P companies in India, ONGC has its own service capabilities for all
aspects of oil and gas exploration, production, and related oil-field services. Modern
technologies like depth domain processing, stratigraphic inversion, sophisticated volume-based
interpretation tools, stochastic lithofacies modelling employing neural networks, spectral
decomposition, geostatistical modelling, etc. have been introduced and absorbed over time.
As the foremost Maharani in India, ONGC has led the way in the development of science and
technology in the nation by founding twelve top-tier institutes under the auspices of the
"Committee of ONGC Institutes," or "COIN."
These twelve institutions support the whole spectrum of oil and gas production, from the well
bore to the consumer end, and have grown to constitute the backbone of India's hydrocarbon
industry.

21
2.3 BOARD OF DIRECTORS

The Board of Directors, which oversees the Company, develops its strategies, policies, and
conducts regular performance evaluations. Under the overall supervision, control, and direction
of the Board, the Chairman & Managing Director (CMD) and Six Whole-Time Directors,
namely the Director (Onshore), Director (Technology & Field Services), Director (Finance),
Director (Offshore), Director (Exploration), and Director (Human Resource), manage the
Company's day-to-day business affairs.
1. Dr. Alma Mittal (Director HR, and Chairman & Managing Director – Additional
Charge)
2. Rajesh Kumar Srivastava (Director Exploration)
3. Om Prakash Singh (Director T&FS)
4. Anurag Sharma (Director Onshore)
5. Pankaj Kumar (Director Offshore)
6. Pamela Jaspar (Director Finance)
7. G. Srinivas (Director Additional Secretary & Financial Adviser)
8. Amative Bhattacharyya (Former Central Information Commissioner)
9. Syamchand Ghosh (Independent Director)
10. V Ajit Kumar Raju (Independent Director)
11. Manish PA reek (Independent Director)
12. Rena PA reek (Independent Director)
13. Dr. Prabhaskar Rai (Independent Director)
14. Dr. Madhav Singh (Independent Director)

2.3.1 BOARD LEVEL COMMITTEES

SI NO. BLCs Members
1 Audit Committee (AC) Shri V. Amit Kumar Raju -
Independent Director-
Chairman;
2 Corporate Social Responsibility Committee Ms. Reena Jaitly
(CSRC) - Independent Director-
Chairman;
3 Nomination and Remuneration Committee Dr. Prabhaskar Rai -
(NRC) Independent Director-
Chairman;
4 Stakeholders Relationship Committee (SRC) Shri Syamchand Ghosh -
Independent Director-
Chairman;
5 Risk Management Committee (RMC) Shri Amitava
Bhattacharyya -
Independent Director-
Chairman;

22
2.3.2 ORGANOGRAM

23
2.4 HISTORY OF ONGC

The largest crude oil and natural gas company in India, Maharani Oil and Natural Gas
Corporation (ONGC), contributes over 75% of the country's domestic production. The
Government of India (Go) holds a 60.41 percent ownership in ONGC as of 31 December 2020.
Downstream firms like IOC BPCL and HPCL (subsidiaries of ONGC) use crude oil as their
primary raw material to make petroleum products including gasoline, diesel, kerosene, naphtha,
and cooking gas-LPG.
In terms of global energy giants, this greatest natural gas business is ranked eleventh (Plats). It
is the sole publicly traded Indian company to be on Fortune's list of the world's most admired
energy companies. The largest international oil and gas E&P company in India, ONGC Vides
is ranked 220 overall and 18th in the Forbes Global 2000 list for oil and gas operations. It has
39 projects underway in 18 countries, including Azerbaijan, Bangladesh, Brazil, Colombia,
Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam, New
Zealand, and Namibia.
As of 1 April 2017, ONGC Vides had total oil and gas reserves (2P) of roughly 704 mm toe
and was currently producing about 285000 barrels of oil and oil equivalent gas per day. Pundit
Jawaharlal Lal Nehru, a visionary leader, established ONGC. Shri Kasha Dev Maliyah, who
founded ONGC in 1955 as the Oil and Gas division under the Geological Survey of India, had
the trust of Pundit Nehru.
Oil and Natural Gas Commission was transformed into a corporation in 1994, and the Indian
government designated it as one of the Nirvanas in 1997. After that, in the year 2010, it received
Maharani rank. The A.V. Birla Group's full shareholding in Mangalore Refinery and
Petrochemicals Limited (MRPL) was acquired by ONGC on March 28, 2003, and further
equity funding in the amount of Rest. 600 crores were added, making MRPL an ONGC
majority-owned subsidiary. Prior to being acquired by ONGC in March 2003, MRPL was a
joint venture oil refinery that had been developed by the public sector business Hindustan
Petroleum Corporation Limited (HPCL) and IRIL & Associates (AV Birla Group).
• HISTORY OF 1999
In order to create a long-term strategic alliance for domestic and international business
opportunities in the energy value chain, ONGC Indian Oil Corporation (IOC) and Gas
Authority of India Limited (GAIL) agreed to have cross holding in each other's stock in March
1999. With the intention of offering Training Consultancy & Services in the Hydrocarbon
Sector, ONGIO International Put Ltd was established in 2001 as a 50:50 joint venture project
with Indian Oil Corporation Ltd. However, the company later decided to dissolve ONGIO due
to loss.
13 initiatives were creatively commissioned to increase recovery from onshore fields in 2001–
2002, and 2 of those projects. The company's subsidiary business, ONGC Vides Ltd., started
producing gas on a commercial scale by the end of the same year 2001–2002. Phase-I of a joint
project on CBM was started by ONGC at Sharia Field in 2004 and was successfully finished
in 2005.

24
 In the Krishna-Godavari (KG) Basin at the location Vashistha (VA-1A) in block KG-OS-DW-
IV, the company made its third deep-water exploration discovery, dubbed "Sager Samriddhi,"
between 2004 and 2005. A shallow-water oil and gas discovery was made in the western
offshore at D-33, roughly 60 kilometers south-west of Mumbai High Onshore.
Tiphuk-1 in the North Assam Shelf and Woman in the Cambay Basin both have oil and gas
discoveries. For the purpose of increasing output, four new platforms—two well platforms, one
process platform, and one clamp-on—were put into service offshore. With the commissioning
of its first car fuel station in Mangalore in March 2005, ONGC began its retail marketing
operations under the brands "ONGC Values" and "Shopp'njoy" for fuel and non-fuel business,
respectively. The government also granted the corporation a permit or approval to market non-
subsidized LPG cooking gas, kerosene, and aviation fuel.
To establish a gas-based power-generating project in Tripura, Tripura Power Development
Company Put Ltd (TPDCL) was founded. Later on, TPDCL changed its name to ONGC
Tripura Power Company Put Ltd. The corporation formed other agreements in the same year,
including one with Kakinada Seaport and IL&FS, which included a 26 percent equity stake in
the establishment of a port-based special economic zone in Kakinada, Andhra Pradesh.
In the five NELP rounds that took place in 2006, the government awarded the corporation 60
of the 110 exploration blocks. In exchange for being guaranteed a minimum of 6 million tons
of LNG per year on a long-term basis, the business agreed into two comprehensive enabling
agreements with Iranian authorities in December 2009.
Additionally, ONGC Vides signed a non-exclusive memorandum of understanding (MOU) to
investigate the prospects of jointly researching and, if both parties agreed, taking part in
lucrative oil and gas assets in Russia and other nations. In order to assess new unconventional
resource plays and possibilities in India, Stealth Ventures Ltd. and the corporation engaged into
a Joint Study Agreement (JSA) in June 2010. The JSA's goal is to identify the unconventional
resource plays in India, and both parties have prioritized finding shale gas and CBM
opportunities with strong growth potential using the extensive database kept by ONGC.
A Framework Agreement on Cooperation in the Hydrocarbon Sector was signed in December
2010 in Delhi by the company's subsidiary ONGC Vides Ltd and Sistema, a public financial
corporation in Russia and the CIS. The managements of ONGC and GAIL (India) came to a
historic agreement for mutual commercial growth including petrochemicals and natural gas on
January 3, 2011. As for the agreement made for the gas business, both businesses would
cooperate for the exclusive sale of natural gas produced by ONGC from its various fields to
GAIL during the course of the following three years.
With GAIL providing the infrastructure and marketing tie-up for delivery to potential clients,
this combined project will act as a catalyst for the efficient monetization of gas from future
ONGC E&P fields. In order to save costs and improve logistics, the two corporations also
agreed to swap gas that was available to them both.
As part of the agreement made for the petrochemicals industry, GAIL has legally agreed to
contribute Rest. 19535 crores in capital to co-promote the 1.1 MMTPA Ethylene Cracker
Petrochemical Complex being built in the Dame SEZ area. Through its subsidiary ONGC Petro
additions Ltd., ONGC is implementing several big projects (Opal).

25
2.5 MANUFACTURING PROCESS

In an endeavor to increase hydrocarbon production, ONGC is always working to introduce

cutting-edge technologies for better accuracy and real-time data collection in reservoir
characterization. Utilizing wireless Surface readout technology during the Drill Stem is a recent
endeavor.
Other oil corporations, such as Hindustan Petroleum, Bharat Petroleum, Indian Oil Corporation
Limited, and Reliance Industries Limited, are fierce rivals of ONGC, although they typically
generate a certain amount of profit through regulated levels of production.

ONGC has been hailed as India's future and has developed into a highly profitable company.
It was the first corporation to register a five-digit number in the years 2002–2003. Being
government-oriented, it has implemented affordable pricing and strives to improve the nation
and its citizens.
There is a hierarchy in place at ONGC so that items do not go straight from the manufacturer
to the final consumer. Under the stringent oversight of the central government, they sell the
natural gas via bulk marketing channels through the Gas Authority of India Limited.
For ONGC to keep up its dominance in the Indian hydrocarbon market and to guarantee the
security of the nation's supply of hydrocarbons, a robust production rise of 4–5% is required.
By 2030, ONGC hopes to expand its share of India's hydrocarbon consumption from the
present 22% to 27% with 4–5% growth.

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2.6 PRODUCT AND SERVICES

The majority of ONGC's promotional efforts are focused on print media. In every national and
regional newspaper in India, there are consistently adverts for ONGC.
In this section, we'll talk about ONGC's marketing campaigns and STP (i.e., segmentation,
targeting, and positioning). We'll now begin the conversation with STP from ONGC. This is
crucial for reaching the correct clientele.
Hydrocarbons such as Methane, Butane, Propane, Ethane, and Pentane are processed from the
natural gas that was excavated in a subsequent step. The 11,000 km pipeline that ONGC owns
and operates in India is used for hydrocarbon exploration and exploitation.
This refers to how you want to position your product. In this situation, ONGC excels and is
acknowledged as India's energy future. Marketing campaigns are one of the most successful
strategies to reach the target audience. We'll look at a few of ONGC's marketing initiatives in
the section after this one.

2.6.1 PRODUCT

The largest oil and gas company in India, Maharani ONGC, contributes over 71% of the
country's domestic production. To create petroleum products like gasoline, diesel, kerosene,
naphtha, and cooking gas LPG, downstream firms like IOC, BPCL, HPCL, and MRPL (the
last two are ONGC subsidiaries) require crude oil as their primary raw material.
As a firm with internal service capabilities in every aspect of oil and gas exploration,
production, and allied oil-field services, ONGC enjoys a special distinction. This public sector
company, which received the Best Employer award, has a committed staff of almost 28,500
professionals who work around the clock in difficult environments.
Due to its production of 62 percent of India's natural gas and 77 percent of its crude oil, ONGC
is able to supply almost 30 percent of the nation's entire demand. It sells crude oil to refineries,
which then turn it into kerosene, diesel, cooking gas, and other goods for residential use.
ONGC has set a goal to double its oil and gas production from both local and foreign fields by
the year 2040 through its Energy Strategy 2040. Along with diversifying into renewable
energy, ONGC also intends to triple the capacity of its refining operations.

2.6.2 SERVICES

By exposing a bigger reservoir portion for production or water injection, increasing drainage
area, and reducing well spacing, traditional perforations have all but been abandoned due to
rising rig costs. The two main categories of established field development techniques are

27
surface/well engineering and sub-surface/reservoir engineering. These plays have presented
drilling and testing with exploration challenges.

Reservoir management starts with exploration that leads to discovery, then the reservoir is
evaluated, the field is developed using primary and secondary methods, IOR and EOR, and
finally it is abandoned.
The introduction of new technologies as well as risky investment decisions are required to
increase oil recovery from mature fields. The opportunity for the ageing offshore reservoirs to
experience new life has been made possible by a thoughtful blending of traditional and modern
technologies.
HP-HT reservoirs are defined as oil fields in India with subsurface pressures and temperatures
greater than 10,000 psi and 350 °F, respectively. In the KG, Cauvery, Western Offshore Basin,
Assam & Abakan Fold belt, where such environments have been identified during search for
deeper payouts, ONGC has emphasized HP-HT/Tight/Deeper plays.

2.7 ONGC TRANSPORTATION

Even though ONGC is currently recognized as the world's greatest oil producer, few people
are aware that the company was also a pioneer in the sale of gas in independent India. The
regional gas pipeline networks across the States of Gujarat, Maharashtra, Assam, Tripura,
Andhra Pradesh, and Tamil Nadu, as well as gas sale contracts with customers, were made by
ONGC, with the exception of the Hazira-Bijaipur-Jagdishpur (HBJ) pipeline. However, on the
orders of the GOI, ONGC shifted the sale of gas to GAIL in May 1992.
ONGC aims to take part in international pipeline projects for hydrocarbons in order to play a
bigger part in the offshore production landscape on a global scale. The business, which has a
deal with Resent of Russia for oil and gas discoveries in the offshore Arctic, is now looking to
capitalize on chances for direct hydrocarbon transit from Russia and Central Asia to India.

28
Over a dozen new natural gas finds have been made by the state-owned Oil and Natural Gas
Corp (ONGC), which intends to start producing them gradually. Through already-existing gas
transporters, gas from offshore is to be delivered from where it is to be taken to users.

2.8 ONGC SUPPLY CHAIN MANAGEMENT

Manufacturing, forecasting, and logistics management are the three key activities in the
downstream supply chain. Upstream supply chain management is connected to distribution
channel management. In general, ships, trucks, pipelines, and trains are used for transportation.
The complicated nature of business operations, environmental concerns, high levels of
unpredictability, and complexity of operational activities may have an impact on supply chain
management in the petroleum industry.
Upstream and downstream supply chains make up the petroleum industry's supply chain. For
oil and gas companies, the upstream supply chain is crucial because it deals with the purchase
of crude oil and the delivery of crude oil from wells to refineries.
Exploration, production, forecasting, and logistics management are the key duties of the
upstream supply chain. The processing and delivery of petroleum products from refineries to
final consumers are dealt with by the downstream supply chain.
Because of the enormous demand for petroleum products, there is fierce global competition
among oil industry executives (Jenkins & Wright, 1998; Himalia, 2011).
All petroleum industries, according to Johnson, Scholes, and Whittington (2009), aim to gain
a competitive advantage. The company is able to concentrate on product quality and the high
degree of customer satisfaction as a result of its competitive success.
To retain their aggressive lead at the worldwide market, the entire distribution chain must
function well. The high degree of customer satisfaction must be taken into account by supply
chain management with the help of supplier-buyer integration and cooperation (Christopher,
2011). The logistics and operational activities of the petroleum industry are plagued by
numerous issues.
Due to massive private sector investment creating a fiercely competitive worldwide market
(Gainsborough, 2006). The petroleum industry's supply chain management is quite intricate; it
is split into two sections, before refining stage activities and after refining stage activities.
Petroleum industry supply chain management is extremely complicated and requires
significant capital expenditures for operational and logistical activities (Gainsborough, 2006;
Ribs, Liras & Hamachi, 2011).
The primary goal is to research and analyses supply chain management in the petroleum
industry and to identify opportunities for supply chain optimization through a literature review
and analysis of prior material.
Stein and Roehl (1998) define supply chain management as a coordinated effort between
suppliers and customers to meet their needs and expectations. Supply chain management
includes logistics as a critical component. Logistics and supply chain management are two

29
distinct concepts. Supply chain management is the fusion of operational and administrative
tasks used by any sector to offer clients value-added services. According to Tompkins and
Jernigan (1997), demand flow leadership should be used in place of supply chain management
to describe all operational and managerial activity.

2.9 CSR PROJECTS OF ONGC

ONGC, a prominent national Maharani, has consistently established a standard for the previous
two years by using all of its CSR budget, which amounts to more than Rest 500 crore annually.
This demonstrates ONGC's dedication to acting responsibly as a corporate citizen and giving
back to society equally.
The management of ONGC has made sure that 33 percent of the CSR money is allocated to
Swatch Bharat projects in accordance with the Government's directive. Furthermore, the
primary focus areas of education and health care saw the implementation of 65.90% of projects
over the previous three years.
In accordance with NitiAyog's instructions, ONGC has picked 20 Aspiration districts and is
dedicated to improving their social and economic situation by conducting CSR projects. Up till
the fiscal year 2018–19, projects totaling more than Rest 31 Cr were successfully carried out.
ONGC has carried out more than 4000 projects, across the whole nation, in just the 2018–19
fiscal year. Below are a few of the company's proudest accomplishments that have had a good
influence on society in the areas of health care, education, skill development, swatch Baharat,
and rural development. The stated CSR policy, provided that the declared CSR policy covers
the topics outlined in the Schedule.

 ONGC MRPL LADYGOSHEN HOSPITAL MANGALORE

The only hospital in the entire Konkan region that offers exclusive pre-natal and post-natal
treatment is the Lady Goshen Hospital, which was founded in 1849 and is located in the center
of Mangalore City. Every month, 500 women are admitted and given pre- and postnatal
treatment on average. Due to the rising patient volume, the 167-year-old hospital building was
in poor condition. Therefore, the need for further facilities was essential. In order to start a new
wing on the hospital campus, the District Administration of Mangalore asked ONGC for
financial assistance. The Government Lady Goshen Hospital in Mangalore will receive
financial assistance from ONGC totaling Rs.12.78 Cr. for the construction of a new "ONGC-
MRPL Wing." In February 2019, the brand-new hospital facility was officially opened.

 BIO-CNG PLANT AT HARDWAR

By constructing a Bio-CNG cum Fertilizer & Bottling Plant in Hardwar, ONGC has launched
an innovative project to transform cow manure into useful fuel and value-added products. The

30
facility is run by the biggest Gaushala in Uttara hand and contributes to the clean, sanitary
disposal of garbage within the Gaushala grounds. By making Gaushala self-sufficient through
the proceeds from the initiative, it is facilitating the provision of a clean environment to the
local population of Hardwar and also assisting in the protection of the fauna, specifically the
2200 non-mulching cows there. Additionally, the facility makes organic solid and liquid
fertilizers, which are given to neighborhood farmers to encourage organic farming.

2.10 SUBSIDIARIES

The overseas division of ONGC is called ONGC Vides Limited (OVL). On June 15, 1989, it
received a new name. ONGC Viet’s main line of work is to look for oil and gas acreages outside
of India, which includes oil and gas exploration, development, and production. It now operates
38 projects in 17 different nations. From 0.252 MMT of O+OEG in 2002/03, its oil and gas
output increased to 8.87 MMT of Oboe in 2010. In ONGC Vides Limited, ONGC owns a 100%
ownership.
Conventional exploration and production, refining, and gradual development of alternative
energy sources like coal-bed methane and shale gas are all part of ONGC's operations.
The company's domestic operations are divided into 11 assets (most of which are properties
that produce oil and gas), 7 basins (which are properties that are being explored), 2 plants (at
Hazera and Uren), and services (for necessary inputs and support such as drilling, geo-physical,
logging and well services).

2.10.1 HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL)

State-owned oil and gas firm in India having its head office in Mumbai, Maharashtra. It has a
strong marketing infrastructure and a market share of roughly 25% among PSUs in the public
sector in India. 51.11 percent of HPCL's shares are owned by Oil and Natural Gas Corporation,
and the remaining shares are divided among financial institutions, the general public, and other
investors.
On the 2016 Fortune Global 500 list of the largest corporations in the world, the company is
rated 367th. Prior to ONGC purchasing a majority stake in HPCL, the latter company, HPCL,
was on the Fortune Global 500 list but the former, ONGC, was not.
At Mangalore, there is an oil refinery called Mangalore Refinery and Petrochemicals Limited.
MRPL has two hydrocrackers that produce premium diesel and a design capacity to process 15
million metric tons annually (High Catani). Additionally, it contains 2 CCRs that produce high-
octane unleaded gasoline.
Oil and Natural Gas Corporation (ONGC) and Mangalore Refinery and Petrochemicals
Limited are partners in the Indian enterprise ONGC Mangalore Petrochemicals Limited
(OMPL) (MRPL). ONGC and MRPL each own 49 percent and 51 percent of the business,

31
respectively. In addition to being a PSU on behalf of OMPL's share structure, OMPL is a
subsidiary company of MRPL. On December 19, 2006, it became a corporation. In the
Mangalore Special Economic Zone, the OMPL complex has 442 acres of land (SEZ).
5750 crores were the anticipated price tag for the project. The complex is connected to the
MRPL Refinery, from whence it receives its supply of food. It is 14 km away from the New
Mangalore Port and about 15 km from Mangalore International Airport.

2.11 SUCCESS OF ONGC

Since its foundation, ONGC has had a virtual monopoly in India's E&P industry. Due to central
governments' control over oil and gas block ownership, other corporations like Cairns and
Reliance entered the upstream market extremely late and did not have a free ride. This does not
imply that ONGC has been free to set its own crude oil price; rather, go has been setting the
prices, which have been below the going rate on the market. Therefore, what the public
perceives as a "successful PSU" has actually been hampered by government public policy
decisions and hasn't been able to live up to its full potential.
Consider this excerpt from a May 22nd, 2018 The Hindu Business line daily report to get a
notion of the impact that subsidies have on ONGC and OIL: The government has allocated
$250 billion for fuel subsidies in the current fiscal year (2018–2010), leaving a shortfall of 90–
280 billion that might be covered wholly or in part by ONGC and OIL if the government
increases the budget allocation for these subsidies.
High crude prices allowed ONGC to make more money by exporting its premium crude from
places like the Cambay Basin than by selling the subsided crude in India. This had two benefits:
(a) increased crude margins, and (b) improved CAD and Bop were guaranteed by exporting
crude. As a result, the government promoted the export of high-quality petroleum and imported
relatively lower-quality crude at substantially cheaper costs.
As additional fields were found, ONGC initially expanded naturally. Mumbai High's
productivity exceeded expectations, extending its fame and turning it into a wealthy
corporation. As time went on and production from aged fields began to saturate, ONGC
expanded inorganically through mergers and acquisitions (M&A) through its wholly owned
subsidiary, ONGC Vides Ltd. (OVL). The fact that OVL is present in more than 40 nations and
counting can be used to evaluate its geographic spread.
Due to all of these contributing causes, it amassed substantial capital reserves and achieved
Maharani status, allowing it greater investment decision-making autonomy from the
government.
This kind of free run hasn't existed for other PSUs. Although SAIL does have a monopoly, its
market share is small and its access to raw materials is restricted to a few remote locations.
SAIL is more recent than TATA steel.

32
These, in my opinion, are the MAIN REASONS for ONGC's outstanding performance, which
could have been much greater if it had been given the flexibility to choose the price of its
products.
With 330 oil and gas discoveries, ONGC has developed more than 6 billion tons of in-place
hydrocarbon reserves in domestic basins and enjoys the distinction of having discovered six of
India's seven producing basins.
As a firm with internal service capabilities in every aspect of oil and gas exploration,
production, and allied oil-field services, ONGC enjoys a special distinction. This public sector
company, which received the Best Employer award, has a committed staff of almost 28,500
professionals who work around the clock in difficult environments.

2.12 ONGC ANALYSIS

SWOT analysis of ONGC examines the brand's opportunities, threats, opportunities, and
weaknesses. Strengths and weaknesses are internal aspects in the ONGC SWOT analysis,
whereas opportunities and threats are external factors.
A brand like ONGC can compare its operations and performance to those of its rivals using the
tried-and-true management framework known as SWOT Analysis. One of the top companies
in the energy and power industry is ONGC.
The table below shows the target market, segmentation, positioning, and USP for ONGC as
well as its SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) (USP).

The ONGC's SWOT Analysis's strengths are listed below:

1. The greatest producer of natural gas and crude oil in India is ONGC.
2. The ONGC company has a well-known brand.
3. High sales and profit margins
4. Has a workforce of more than 30,000 people.
5. About 30% of India's crude oil needs are met by ONGC.
6. Contributes 80% or more of India's natural gas production and at least 70% of its crude oil
production.
7. A commemorative coin set was unveiled to honor ONGC's 50th anniversary.
8. The business has strong branding and promotion, and it has won multiple honors.

33
Every time we make a decision in daily life, as a simple example of data analysis, we consider
what happened previously or what would happen if we make that particular choice
The systematic computational analysis of data or statistics is known as analytics. It is employed
for the identification, explanation, and dissemination of significant data patterns. It also
involves using data patterns to make smart decisions.
Analytics combines data and arithmetic to make predictions about the future, identify
relationships, and automate decision-making. Data analytics is significant since it aids in the
performance optimization of enterprises.
Swat analysis is a technique for evaluating these four characteristics of any firm. It stands for
Strengths, Weaknesses, Opportunities, and Threats. By identifying its weaknesses, a
corporation or business can use SWOT analysis to its greatest advantage, lowering the
likelihood of failure.
1.Strong Points ONGC
Brand Equity: They have made investments to develop a strong portfolio of brands and have
made sure to foster an atmosphere that would support the expansion of the Indian economy.
Focus on sustainability: ONGC has made careful to protect and care for the environment, and
it has a comprehensive health, safety, and environmental management (HSE) programmer.
Strong Dealer Community: ONGC has a strong dealer community that cultivates a culture
among the distributors and dealers by asking them to market the company's goods while also
making an investment in teaching and training the sales staff.

2. ONGC shortcomings
Because of its current culture, ONGC finds it challenging to expand into new product areas,
despite the fact that it dominates its industry.
Low investment in technologies: Ong needs to make stronger technology investments if it is to
successfully expand its business on a wide scale around the globe. Their investment in
technology now falls short of what is required.
High attrition rate: The company's employees, which is its most valuable internal resource,
needs to be improved. This company's high attrition rate is a warning indicator and suggests
that it needs to make greater investments in the education and training of its workforce.

3. Prospects for ONGC

Updated Environmental Policies: For ONGC, the adoption of new environmental policies will
pave the way for the creation of a new product category. They will increase their market share
in the new product category as a result.
Cheaper inflation: This might make ONGC the preferred firm in the market by allowing it to
offer credit to its clients at lower interest rates.

34
New Technologies: If ONGC adopts new technologies in the market, it might be very
beneficial. By offering a better customer experience to its customers through better technology,
it will give them the chance to practice differentiated pricing strategies and assist them in
retaining their current customers and gaining new ones.

4.Threats against ONGC

The Paris Agreement's (2016) new environmental requirements raise a red flag for ONGC's
current product line.
The company's continuous growth may be threatened by a lack of skilled labor or by an
inability to effectively train the personnel.
ONGC may be liable to a range of liability claims in various nations as their policies are revised
or modified.

2.13 TRAINING &DEVELOPMENT AT ONGC

The emphasis on knowledge growth and upgradation is a key component of ONGC's

employee-centered initiatives.
Our personnel are kept up to date with international standards in large part by ONGC Academy,
formerly known as Institute of Management Development (IMD), which has an ISO 9001
certification.
The top nodal organization in charge of ONGC's human resource development is ONGC
Academy. Additionally, it concentrates on promoting its HRD experience in the area of
hydrocarbon exploration and production.

1. To cultivate superior entrepreneurship and competence through training and retention

2. To train executives to achieve strategic business objectives in a setting that is rapidly
changing.
3. To provide training methods and instruments that aid in efficient learning.
4. To plan interactive workshops in areas of the upstream business.
5. To cultivate quality awareness.
6. To promote IT as a tool for transforming organizations.
7. To promote inventive and creative thinking.
8. reducing the discrepancy between restorer Ana’s present and anticipated levels.

35
2.13.1 TRAINING

Each year, the academy offers about 250 programmers to more than 5000 professionals,
totaling more than a lakh training hours.
The ONGC's extensive training initiatives are separated into the following spectrums:
1. Orientation Instruction
2. On-the-Job Training
Workshop on Basin Evaluation and Modeling: Deep Water Depositional Systems Techniques,
Integrated Approach.
By "in-service training programmer," we mean the regular training provided to employees
while they are on the job to improve their knowledge and abilities so they can perform
effectively.
To cultivate entrepreneurial spirit and superior knowledge through hiring and training. Help
train executives to achieve strategic company objectives in a rapidly evolving environment. To
provide training methods and instruments that aid in efficient learning. To plan interactive
workshops in areas of the upstream business.
LATEST TRENDS AND DEVELOPMENT IN THE ESTIMATION OF OIL AND GAS
RESERVES PETROLEUM RISK AND DECISION ANALYSIS
• BUSINESS PROCESS RE-ENGINEERING AND ERP BENCHMARKING (BM-
BPR & ERP)
• SKILLS FOR BUSINESS WRITING
• ORGANIZATION BUDGET CAPEX AND OPEX ANALYSIS PREPARATION
AND FINANCIAL STATEMENT ANALYSIS
• RISK MANAGEMENT AND FOREX

2.13.2 DEVELOPMENT AT ONGC

The development of human resources is ONGC's main goal, and to that end, in addition to
offering numerous training programmers, it also runs a number of development programmers.
• About 30 employee development programmers have been held by ONGC.
• It typically runs the following types of development programmers:
• Programs for Management Development
• Programs for Qualification Upgrading

36
The following are a few of the development programmers: -

1. PRINCIPAL EMPLOYERS' BASIC REGULATIONS

2. BUSINESS RESPONSIBILITY TRAINING
3. YOGA AND SMET TECHNIQUES FOR EXECUTIVE EXCELLENCE
4 COMPETENCIES AND SKILLS TO REACH GOALS
5 PROGRAM FOR SELF DEVELOPMENT OF WOMEN EMPLOYEES
6 DEVELOPMENT OF ORGANIZATION & TRADE UNION LEADERSHIP

In addition to offering executives training options, ONGC Academy serves as the center of
various company events. These include spreading the quality movement throughout the
company through quality circles and consulting services to work centers for ISO certification.
They also include offering MBAs, Beach., and engineering diploma courses in collaboration
with top universities in the nation under qualification upgradation programmers. The following
programmers are available. Growth, advancement, positive change, or the addition of physical,
economic, environmental, social, and demographic components are all products of
development. The Development is day to day change and developed in ONGC. These is direct
effect to company profile and company profit also.

2.14 ONGC VISION & MISSION

To lead the integrated energy industry globally. Develop high standards for company values
and commercial ethics. persistent dedication to environment, health, and safety in order to
improve communal life.
Increase business potential for the exploration and production of oil and gas both domestically
and abroad.
Establish value connections with other energy industry areas. Increase shareholder value and
create expansion prospects.

2.14.1 VISION
To lead the integrated energy industry globally via sustainable growth, superior expertise, and
excellent governance standards.

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2.14.2 MISSION

World Class
Dedicated to excellence by utilising competitive advantages in R&D and technology with
involved people.
Develop high standards for company values and commercial ethic. Persistent dedication to
environment, health, and safety in order to improve communal life.
To create an environment where working is engaging and challenging for our employees,
cultivate a culture of trust, openness, and mutual concern.
Aim for client satisfaction by providing high-quality goods and services.

2.15 ONGC SPORTS

Athletics, badminton, basketball, boxing, chess, cricket, cue sports, carom, field hockey,
football, kabaddi, shooting, table tennis, tennis, volleyball, and wrestling are just a few of the
sports that ONGC sponsors. ONGC F.C., its football team, used to compete in the Indian I-
League.
Since several members of India's national basketball team have played there, the basketball
team in particular is well-known abroad. These players include Yadwinder Singh, Marital
Singh, Vises Bhriguvanshi, and others.

38
 CHAPTER -3

LITERATURE REVIEW

3.1 WHAT IS VENDOR RATING?

Supplier ratings, often referred to as vendor ratings, are based on a formal method for assessing
companies who offer goods or services to a business. It is a procedure where suppliers are given
status or a title based on a number of factors. For instance, a number of criteria, including
pricing, credibility, the caliber of the provided goods, and other mixed variables, have an
impact on the evaluations. The supplier ratings, which are based on the vendor's performance,
might be divided into good, average, and best categories, or any other categories that the
business deems appropriate.
A formal vendor evaluation system produces vendor ratings. According to their achievement
of a certain degree of performance, such as delivery, lead time, quality, price, or some
combination of criteria, vendors or suppliers are given standing, status, or a title. The
construction of such a rating system is driven by manufacturers and service providers' need to
ensure that the required qualities of a purchased good or service are already there rather than
being added afterwards by an indicator.

39
The vendor rating could be expressed as a hierarchical ranking from terrible to exceptional and
any ranks the company decides to include in between those two. For certain businesses, the
vendor rating may take the shape of an honors programmer or a certification in some other
way. The just-in-time concept's widespread adoption in the United States and its emphasis on
the crucial function of the buyer-supplier relationship are the direct causes of most of this
attention to vendor rating.
The majority of businesses seek suppliers who will deliver all of their goods and services on
schedule and without any defects (or as close to this ideal as reasonably possible). To identify
which supplying companies are capable of adequately approaching this and being retained as
present suppliers, some sort of vehicle is required. The vendor rating is one such tool.

3.2 CRITERIA FOR VENDOR RATING

We are aware that some elements or parameters influence the vendor rating. For instance,
buyers typically take the following factors into account while evaluating suppliers.

40
Quality: The quality of the products or goods vendor supplies is the main factor. The vendor
can maintain good quality by improving production, having quality planning in the supply
chain. Quality factor consists following things.
o The vendor's goods or services must comply with the requirements and be in accordance with
the terms and conditions stated in the purchase order. indicated in the purchase order and
request for proposals. The product failure rate needs to fall within the acceptable range. He
needs to give himself enough time to replace.
Price: A business always seeks to purchase resources at the lowest possible cost in order to
lower its manufacturing expenses and boost profits. Therefore, the merchant must set a fair
price for his goods. It consists of the following.
o Stable price: The cost of the good or service must remain the same over time.
o Accurate price: The cost should not differ significantly from, Price on the invoice and the
purchase order.
o Advance notification of pricing adjustments: He should notify about price changes.
Delivery: The supplier must improve their capacity to deliver the goods on time. These are
the components of this factor.
o Lead time: Lead time is the period of time between the order placement day and the actual
delivery day. The supplier's reputation is improved with the shortest lead time. The supplier
must fulfil orders by the deadline or earlier.
o Quantity: He is required to deliver the precise number of goods specified in the contract.
o Packaging and documentation: The products must be packaged properly, thoroughly, and
damage-free. Along with the supplied goods, the vendor must deliver the necessary
documentation.
o Emergency delivery: The vendor must be able to deliver goods in the event of an emergency.

Service: One of the most important considerations for the provider is service. He must deliver
quality service by offering a current catalogue, pricing details, technical details, along with the
following items.
o He must be able to properly manage complaints.
o The vendor must offer installation, maintenance, and repair-related technical support.
o Emergency support: He should provide assistance during a product failure or repair
emergency.
o Fix the issues: The supplier must quickly identify and fix any issues.
An "act or usage for which a consumer, corporation, or government is willing to pay" is referred
to as a service. Barbers, doctors, lawyers, mechanics, banks, insurance businesses, and other
professionals are a few examples. A public service is one that the entire community pays for.

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3.3 SUPPLIER EVALUATION OR VENDOR RATING – 8 TECHNIQUES

• Categorical plan: managers from diverse industries compile a list of characteristics that a
vendor must possess based on their individual experiences, and suppliers are compared using
the same criteria.
• Weighted point plan: each factor is given a weight based on vendor performance after being
divided into categories. Below is an example of how to calculate the same.
• Cost ratio plan: Supplier evaluation is based on the various expenses paid when acquiring
materials from various vendors. The cost ratios are established for the numerous rating factors,
including quality, cost, and on-time delivery. Based on the total individual cost and the total
purchase value, the cost ratio is computed as a percentage.
• Eavastons’s vendor selection: When choosing a vendor, Eavastons takes into account the
company's past performance.
• Forced decision matrix: The rating criteria, such as quality, service, pricing, vendor
dependability, and lead time of supply, are first identified. These factors are then contrasted
with one another. If something is more significant, it will be given a higher weight and receive
a score of zero for comparison.
• Service cost ratio: a method of evaluating a supplier's services that takes other intangible
factors into account. Aspects to take into account may include labour stability, financial
stability, manufacturing flexibility for urgent orders, and research and development (R&D).
• Bell quality rating system: Lot Quality Index, a division of the Bell Helicopter company,
established the Bell quality rating system (LQI). It compares the lots that were accepted and
rejected. X/L provides the LQI. Where L is the total number of lots received during the time
and X is the product of L1's 1.00, L2's 2.10, L3's 2.90, and L4's 3.10, plus (L5 x 3.90).
• IBM quality rating system: The IBM quality rating system bases vendor evaluations on
quality costs. VGR is calculated as Desired Cost of Inspection / Actual Cost of Inspection
multiplied by 100.

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3.4 VENDOR RATING STRATEGY IN ONGC

The ONGC is one of the popular techniques of strategic sourcing, which improves the value
we received from suppliers. Vendor development can be defined as any activity that a buying
firm undertakes to improve a supplier’s in ONGC.
ONGC are using website, in all company work. The ONGC are using the SAP website, the
company all transaction and Tender Administration approval, PR, Financial works, Tender
approval, Publish the article and website, Bidding process, Purchase Order, Invoice, VIMS
vendor invoice management system and experience certificate. These all strategy are using in
ONGC.

3.4.1 INTRODUCTION ABOUT SAP

Systems Applications and Products in Data Processing is the abbreviation for SAP. By
definition, SAP is both the brand name of the business and the name of the ERP (Enterprise
Resource Planning) programmer. European multinational SAP Software was established in
1972 by Well Neureuther, Hop, Hector, Platter, and Táchira. For managing business operations
and customer connections, they create software solutions.
The SAP system is made up of several completely integrated modules that cover almost all
facets of business management.
Let's say a customer approaches a sales team and requests a specific product. The sales staff
gets in touch with the inventory division to inquire about the product's availability. The sales
crew was shocked to learn that the product was out of stock. In order to prevent this from
happening again, they must implement a SAP ERP technology.
We will first comprehend how various departments are involved in the entire business process,
from the ordering of raw materials to the manufacturing of goods to the delivery of finished
products to the customer, before we actually see in detail what ERP is and how ERP can help
in your business process.
When candidates are asked if they have SAP experience, the hiring manager is referring to their
familiarity with SAP-made software. Software, Applications, and Products in Data Processing,
or SAP, is a somewhat odd acronym. This provided a uniform system for many duties. This
made it possible to adopt a centralized data storage system, which improved data upkeep.
IBM and SAP started working together in 2014 to market cloud-based services. In order to
offer safe hybrid cloud-based services powered by the SAP platform, SAP teamed up with HPE
in 2015. SAP receives infrastructure services from IBM and HPE, and on top of those services,
SAP runs its SAP HANA cloud solution. For the purpose of providing customers with tools
for data visualization as well as enhanced mobile applications, SAP has announced fresh
agreements with Microsoft.

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3.4.2 SCREENSHOT OF SAP IN ONGC COMPANY

44
3.4.3 TENDER AGREEMENT IN ONGC

45
46
3.4.4 ONGC EXPERIENCE CERTIFICATE

47
3.5 AWARDS AND CERTIFICATION

Numerous purchasing organisations grade vendors using awards and certification schemes.
Achievement of certification status or receiving an award is a sign of a top-notch supplier. The
culmination of an arduous process that includes numerous meetings with suppliers and internal
customers as well as meticulous data collecting under the total-quality-management-rubric is
certification and awards-program recognition. These initiatives are seen as a crucial component
of serious buying companies' larger efforts to raise the overall worth of the business.
The receipt of a supplier award typically indicates that the vendor has received an excellent
rating. Intel presents the Supplier Continuous Quality Improvement Award to its top suppliers.
Other firms may utilise a hierarchy of awards to indicate varying degrees of performance from
satisfactory to excellent. DaimlerChrysler awards its best suppliers the Gold Pentastar Award.
Several hundred vending firms receive this award per year. However, only a handful (less than
a dozen) of DaimlerChrysler's vendors are good enough to garner the Platinum Pentastar
Award.
Supplier certification is desired by other businesses. The process of ensuring that suppliers
uphold particular standards of performance in the areas of pricing, quality, delivery, and service
is known as supplier certification. Participating companies' certification suggests that they have
attained a level of excellence that other companies were unable or unable to match. For
instance, a business with a quality certification upholds a standard of excellence that enables
customer-receiving inspection to be used less frequently until it is completely removed. This
should guarantee that every product the supplier produces complies with the requirements set
forth by the client. In this instance, quality at the source is the aim of supplier certification.

3.6 BENEFITS

Vendor rating systems have the following advantages:

• Assisting in reducing judgmental subjectivity and enabling the evaluation of suppliers
taking into account all pertinent factors.
• Delivering comprehensive input from all angles.
• Enabling improved connection with suppliers.
• Granting complete command over the vendor base. requiring particular attention to
address performance deficiencies that have been detected.
• Establishing guidelines for ongoing vendor evaluations to guarantee performance
improvement.
• Forming vendor alliances, particularly with suppliers who have strategic connections.
creating a culture that is performance-based.
Systems for evaluating vendors offer a way to quantify the elements that benefit the buying
company by increasing value or lowering costs. To address current challenges and concerns,
both the method and the criteria will be continuously improved.

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3.7 ARTICLE REFERENCES

1. VENDOR RATING IN PURCHASING SCENARIO

C. M urlidharan, N. Anantharaman, S.G. Deshmuk. International Journal of Operstions &

Peoduction Management. Article publication date 1 october 2001. Vendor rating is a procedure
with strategic ramifications for supply chain management. Using the analytical hierarchy
approach, vendors can be rated by a single decision maker or a group of decision makers. This
method may have several shortcomings, such as estimating process bias. This study suggests a
mechanism that uses group rating estimation on an individual basis while upholding the
anonymity requirement. The confidence intervals for the estimates of the composite rating of
the vendors are calculated statistically. The method described here aids in finding group
members whose viewpoints might differ noticeably from the majority's. The setting of
confidence limitations in collective decision-making is emphasised. To identify the cause of
variation, researchers further examine group decision-making participants whose judgments
are beyond the group's margin of agreement. In order to manage the vendor rating process
throughout the entire supply chain and take into account the dynamic nature of the vendor
assessment process, implementation recommendations have also been supplied.

2. VENDOR RATING FOR AN ENTERPRENEUR DEVELOPMENT PROGRAM

Palgrave Macmillan Journals on behalf of the Operation Research Society. Accessed

22/04/2013. S Yahyal and B Kingsman*2 of Lancaster University in Lancaster and Universiti
Pertanian Malaysia in Malaysia. Vendor rating is crucial in collaborative purchasing
programmes where developing suppliers is one of the goals. Vendor rating helps with supplier
selection, business allocation, and where to best focus limited development resources. This
essay discusses a case study on vendor rating for a Malaysian government-sponsored
programme on entrepreneurship. The article evaluates the effectiveness of the current vendor
rating techniques. It exemplifies a novel strategy based on Saaty's Analytic Hierarchy process
method, which was created to help with multi-criteria de cision-making issues. The
shortcomings of the categorical and simple linear weighted average criteria ranking systems
are overcome by the new approach. It gives a more methodical way of deriving the weights to
be utilised and for scoring the performance of suppliers.

3. SUPPLY CHAIN QUALITY MANAGEMENT

Federice Murmura, Gilberto santos, Laura Bravi, A Model of Vendor Rating, department of
economic, socity, politics. The goal of the current work is to show a Vendor Rating model
created by an Italian business (Gamma) that makes technologically sophisticated components

49
with high precision for industrial milling, drilling, and cutting, for a variety of materials and
manufacturing sectors. The goal of this research is to define a methodology to enhance supply
chain management and quality for businesses through the analysis of the Gamma case study.
The courses are created using observations from a reference month, quarter, semester, or year.
A benchmark for the evaluation of succeeding periods can be established using these classes.
Each of them receives a score, which when added to the scores of the other indicators, yields
the supplier's overall score.

4. NEED OF ASSURANCE FOR CRUDE OIL PIPELINES

Anand Gupta and Anirbid S. ONGC, and PDPU, India. International Journal of
multidisciplinary sciences and engineering. 2 February 2015. Flow assurance requires making
sure that there is fluid in the trunkline, nowline, and well. Because of their high viscosity,
heavy/waxy crude oils are difficult and challenging to transport through pipelines. Transporting
waxy oil from the wellhead to the refinery gate is also growing more significant as flow
assurance is required to guarantee their production. Petroleum firms invest a significant amount
of money each year to prevent and remove wax from production and transportation lines. It has
been determined that n-paraffins are mostly to blame for this issue. Solid particles that deposit
in production tubing, pipelines, and processing equipment eventually lead to operations
becoming clogged. Accurate forecasting of Wax Appearance Temperature (WAT) and the
amount of wax predicted to be deposited under specific conditions helps reduce the cost of
production operations. Due to its significant impact on the petroleum sector, numerous
alternative approaches to the conventional ones utilised up until the 1990s have been developed
over the past two decades. The different methodologies paint a diverse image, and real-world
field data can be used to analyse their validity. The study discusses crude oil pipeline now
assurance issues and examines its historical place in the petroleum sector.

5. DESIGNING GREEN VENDOR RATING SYSTEM

Environmental performance Green strategy, vendor rating, supplier selection. 'Green' groups,
organisations, and governments have compelled numerous businesses to enhance their
environmental performance during the past few years. This increased concern for the
environment led many businesses to create integrated connections with their suppliers in order
to develop new "green" products. Sadly, no model has been put forth to assist the decision-
maker in choosing the supplier who will be the most successful from an environmental
standpoint.

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 6. AN EMPIRICAL STUDY

D.r R. Ramachandran & K. Shanthi Associate Professor of commerce, Avvaiyar Government

for women, Karaikal. Job Satisfaction, Social status, Growth and Coworker relations. Job
satisfaction is a crucial quality to keep a worker in a company. Employee satisfaction improves
the working atmosphere, which boosts productivity. Additionally, dissatisfied workers will
aggressively look for new employment, as opposed to contented workers. Stay back and be
loyal to the company and it’s growth. The present research work was conducted to study the
satisfaction of employees at ONGC on their job and also the effect of demographi variables.
about the joy of work. 250 employees from five divisions, chosen at random, who worked for
ONGC were subjected to a structured questionnaire in accordance with the descriptive study
methodology. The study found that the staff at ONGC were content with their jobs after using
statistical techniques like the t-test and ANOVA for data analysis. Additionally, it was
discovered through this study that a few aspects of job satisfaction were significantly
influenced by the demographic variables Age, Income, and Religion. An illustration of an
empirical analysis would be if a researcher wanted to know if listening to upbeat music
encourages prosocial behaviour. One audience group could be exposed to upbeat music in an
experiment, whereas the other doesn't hear any music at all. Empirical research develops
knowledge from actual experimentation or observation and draws on observed or measured
occurrences. Articles on empirical research are regarded as original, primary research. Is it
theoretical or empirical? Empirical: Based on information gleaned from original research or
observations. Theoretical: Examines and relates empirical findings in order to clarify or
advance a theoretical stance.

7. DEVELOPMENT OF VENDOR RATING SYSTEM FOR EVALUATION OF

LOGISTICS COMPANY

S. Akash Srivastava, Pranja, 2020, Indian Institute of Management Ahmedabad. Today's

dynamic business environment makes it crucial to provide your vendors a strong rating. The
vendor rating system is a crucial area in which management is now interested. There is no one
standard way to use when rating one's vendors, hence the approaches taken vary amongst
companies. Additionally, this evaluation must be repeated frequently so that the top-performing
vendors may be recognised and the less-than-stellar performers can receive input on their areas
for improvement. In the past, everything was boiled down to expenses, and the rating system
was frequently biased toward the transaction's cost element. Quality occasionally trumped the
other criteria as this changed over time. Different models have been developed to address the
multi-criteria decision-making challenge of vendor rating and appraisal. Traditional
approaches like the weighted-cost technique and cost ration were quite subjective and heavily
relied on the subjective assessments of the evaluator (Narsimhan, Talluri, & Mendex, 2001).
Even the Analytical Hierarchy Process (AHP) discusses the arbitrary weights assigned to the
criteria based on the knowledge and experience of the buying manager and other staff members
involved in the vendor evaluation. Because of this bias, it is impossible to judge vendors
objectively.

51
 8. SUPPLIER SELECTION AND VENDOR RATING MODEL IN HIGH
INNOVATION ENVIRONMENT

G. Coppola, R. Bandinelli, R. Rinaldi, International Journal of Engineering, Science and

Technology, analytical hierarchy process; AHP; buyer-supplier relationship; supplier
evaluation; innovation; R&D; vendor rating.
In order to maximise the performances of the entire chain, supplier selection refers to the crucial
process of choosing suitable suppliers from a pool of competing ones. The literature has long
acknowledged the strategic importance of this procedure for any supply chain. One of the most
crucial and strategic decisions is to engage in rating and selection activities, particularly in
domains where the ability of partners to do research and innovate is thought to be crucial to the
chain's success. This issue is exceedingly difficult due to the numerous qualitative and
quantitative aspects that are involved and their strong interdependencies. In this essay the
aerospace industry, the interaction between a buyer and its suppliers is investigated, and a
supplier selection model has been developed suggested. A multi-criteria decision issue can be
used to describe the supplier selection process. In this study, a model based on the Redundancy
Model (RM) and Analytical Hierarchy Process (AHP) methodologies is put forth. A case study
of the aeronautic industry uses the created and successfully applied evaluation criteria. With a
thorough step-by-step implementation, a validation of the model has been carried out and is
documented in the paper.

9. EVALUATION INTO VENDOR RATING

Alessandro Fontana, Silvia Menato, Andrea Barni. This study aims to propose a practical
methodology for include vendor ratings in an RFP process conducted in a sharing economy
setting where MaaS digital platforms are utilised. The different steps of the methodology—
Resource instantiation, Sustainability Suppliers Ranking, and Quotation-specific Impacts
Calculation—are thoroughly illustrated after an analysis of the current state of the art of
sustainable decision making into vendors' selection and simplified LA techniques. The
implementation of the methodology in the context of production is next discussed, with an
emphasis on the resource instantiation phase that enables a quick but thorough environmental
analysis of supplier offers. The outlined route, which was created and evaluated as part of the
MANUSQUARE EU project, could simply be modified for use on.

52
 10. VENDOR RATING SYSTEM FOR AN INDIA START-UP

Rohit Kumar Singh, Surendra Kansara and Niraj Kumar Vishwakaram. In order to construct a
vendor rating model, this study aims to identify the criteria that are utilised for vendor or
supplier rating, prioritise these criteria based on industry inputs. The information was gathered
from an Indian start-up engaged in the creation of products employing three-dimensional
printing (3DP). Through industry visits and discussions with industry experts from the start-up
under consideration, important factors for vendor evaluation were discovered. These findings
were supported by a thorough assessment of pertinent literature. In order to further prioritise
the aspects crucial to the sector, a questionnaire-based survey was conducted. Consistency
ratios were calculated as well as pairwise comparison analysis, which is envisioned in the
analytical hierarchy process (AHP) technique. Data aggregation also employed the TOPSIS
(Technique for Order Preference by Similarity to Ideal Solution) methodology. In order to
resolve a multi-criteria vendor rating problem, this work blends AHP with TOPSIS. To include
all of the firm's vendors, an effort was made to make the vendor rating procedure universal.

11. A COMPUTERISED VENDOR RATING SYSTEM

Logistics is the first component of a company's "value added" chain. The supply, storage, and
transportation of people, equipment, finished items, and other goods within an organisation and
between an organisation and its environment are all included by the term "logistics
management." The area of logistics management includes activities like purchasing, materials
management, distribution, and maintenance in general. "Purchasing" is a crucial component of
"strategic logistic management". The main topic of this essay is "buying," with a concentration
on "vendor rating." The first link in a company's "value added" chain is logistics. The word
"logistics management" refers to the provision, storage, and movement of people, tools,
finished goods, and other goods both inside an organisation and between an organisation and
its surroundings. Purchasing, materials management, distribution, and maintenance in general
are included in the field of logistics management. A key element of "strategic logistic
management" is "purchasing". This essay's primary focus is "purchasing," with a particular
emphasis on vendor rating.

53
3.8 RESEARCH GAP

The objective of this study was to acquire detailed information and assess user impressions of
in ONGC order to improve user. A company's cash flow is thought of as its lifeblood. One of
the fundamental pillars of all types of economic operations in the modern, market-driven
economy is finance. For decision-making, financial statements are prepared in the first place.
They are crucial in establishing the framework and managerial conclusions, and the
information that can be gleaned from these statements and used to analyse and interpret
financial statements is quite helpful in making decisions. As was previously stated, cash is the
lifeblood of any business. Every business undertaking requires liquidity for smooth operation
and must raise capital from the riskiest and least expensive sources to do so. As a result, every
company will be curious to learn about its liquidity position or status. This study examines the
company's overall liquidity situation and performance.
The goal of financial statement analysis is to have a deeper comprehension of the situation and
performance of the company. By correctly creating links between the items on the balance
sheet and the profit and loss account, liquidity analysis can be used to determine the firm's
liquidity strengths and weaknesses. Financial statements give small business owners the
fundamental tools for assessing how well their operations run at all times. Management of the
company conducts liquidity analysis. Because money is the lifeblood of a company,
serialisation is impossible without adequate financial management.
Because management acts as the business's nerve, it attracts the right kind of funding for
efficient management of money circulation. Effective methods should be used in the estimation
of money, the development of funding sources, and the distribution of funds. So, in order to
determine how effectively funds are used with the provided financial policies, we conduct a
study with ONGC Ltd.
We refer to a topic or area as having a research gap when there is insufficient or incomplete
information that prevents reviewers from answering a certain issue. Through stakeholder
involvement in prioritisation, for example, a research gap may be further developed into
research needs. In areas where there are evidence gaps, patients, physicians, and policymakers
may have difficulty making decisions, there is a need for research. If closing a research gap
wouldn't benefit the stakeholders who make healthcare decisions, it could not be a research
necessity. The first step in creating a research agenda is to clearly and explicitly identify the
research gaps.
Future research has always been incorporated in the evidence reports created by Evidence-
based Practice Centres (EPCs). There hasn't been a systematic method for identifying research
gaps, in contrast to the explicit and visible steps performed in the completion of a systematic
review. The framework makes it easier to identify research gaps and the causes of those gaps
through a methodical process. For significant research to be developed, it is crucial to pinpoint
the gaps in the evidence and how those gaps are created.

54
 CHAPTER- 4

RESEARCH METHODOLOGY

4.1 RESEARCH PROBLEM

Any organization's human resource is its most valuable resource. Money can be used to
purchase land, equipment, and technology, but skilled labour that is devoted to honesty,
efficiency, and productivity is required to make the best use of these resources.
A number of issues plague ONGC today, including the lack of significant discoveries in recent
years, old, depleting fields, numerous sick and non-flowing wells, high water production, and
outdated installations, equipment, and pipelines that not only require urgent replacement but
also pose safety and environmental risks.
He claimed that ONGC is looking at every aspect of how personnel are now transferred from
on-shore locations to offshore installations in an effort to reduce the risk involved in such
excursions. Bright and diligent officers who were serving the company and the country have
passed away.
During pandemic, the issues which are faceing by working women while working form home
in the new normal connected stress. A broad statement of the general problem and identification
of the specific companents of the marketig research.
In this internship of my observation in ONGC logistic control room office ahmedabad asset,
vendor is not educated. Vendor are not understand easily in what are you saying. It’s very big
problem in ONGC. A research problem is a particular topic, challenge, paradox, or knowledge
gap that you intend to solve in your study. You might search for theoretical or practical issues
that aim to further knowledge or bring about change.
Theoretical research does not immediately effect change; instead, it focuses on advancing
knowledge and understanding. By looking for a hole in what is currently known about your
issue through reading recent research, theory, and arguments, you can locate a research
problem. The relationship between care and justice, the conflict between the ethics of virtue
and the ethics of rules, the connection between moral education and professional ethics, and
what is morally significant in the teaching profession are four research problems that have been
clarified and are discussed in this article.
A request is also made to continue the conversation and develop the following set of research
issues. Two problems are put forth. To address two issues: first, the difficulty of becoming a
morally upright teacher, and second, the moral accountability of teachers for the lessons they
impart. A research problem is a claim about an area of interest, an issue that needs to be
resolved, a challenge that needs to be overcome, or a perplexing topic that appears in academic
literature, in theory, or in practise and necessitates thoughtful analysis and inquiry.

55
The considerable and useful knowledge that has been gained from research on teacher ethics
and the moral aspects of education has occasionally resulted in helpful synthesises of
viewpoints. In this project, four research issues that have been clarified are discussed.
The issue of sampling is a constant in most qualitative investigations and must be resolved to
assure the validity of study findings and endeavours. It so happens that, depending on the
subject of one's research, it is either impossible or too expensive to study every instance of a
phenomenon. The researcher is constrained in this case because she is required to choose a
specific percentage as the vendor evaluation of the study.
The situation is only made worse by the paucity of relevant literature, the lack of agreement on
terminology, and the blurring of fundamental concepts. In a related development, some authors
create new terms that, in most cases, do little to clear up the ambiguity in the area but instead
serve to muddle people's already muddled understanding of qualitative research, particularly
when it comes to the vendor rating process.

4.2 OBJECTIVE OF THE STUDY

• To study vendor behaviours towards ONGC.

• To study perception of Vendor toward vendor rating by ONGC.
• To study the market analysis of the Indian ONGC markets.
• To study the attitudes of ONGC Vendor.

56
4.3 RESEARCH DESING

The foundation for the approaches and procedures a researcher will employ is the research
design. Due to the architecture, researchers can concentrate on research procedures that are
relevant for the subject matter and set up their studies for success.
An analytical model is a set of variable and their interrelationship designed to represent in
whole or in part, some real system or process. In verbal models the variables and their
relationship are stated in process text from. Such modules may be mere restatement of the main
tenets of a theory.
Graphical models are visual. They are used to isolate variables and to suggest directions of
relationship but are not designed to provide numerical results. A research design is a framework
or blueprint for conducting the marketing research project.

4.3.1 EXPERIMENTAL RESEARCH DESING

An association between a situation's cause and effect is proven through experimental study.
This causal design allows for the observation of the impact of the independent variable on the
dependent variable. To monitor the impact on the dependent variable, the independent factors
are altered. It is widely done in the social sciences to compare the behaviours of two groups in
order to research human behaviour. Researchers may ask subjects to change their behaviour
while they watch how those around them respond to gain a better understanding of social
psychology.

4.3.2 EXPLORATORY RESEARCH DESIGN

Explanatory design is a strategy for advancing a researcher's hypothesis by including their

concepts and point of view. The study highlights components of a topic that were not
previously recognised, as well as the what, how, and why of research-related problems. To
investigate a phenomenon that had not been previously studied or accurately characterised in a
timely manner, an explanatory investigation was carried out. When there is a paucity of
information, its objective is to fill in the holes.
The study gives the researcher a general idea, which he then uses to identify future issues that
need to be addressed. Its goal is to determine what and why anything is worthwhile of study.
The more well-liked exploratory research design techniques include case studies, focus groups,
depth interviews, and literature searches. One of the quickest and least expensive ways to find
hypotheses is through literature searches. When a researcher has no prior data or only a few
studies to draw from, they use an exploratory research design to address their study challenge.
This study is occasionally casual and unorganised. It acts as a tool for preliminary investigation
and offers a speculative or theoretical notion of the investigation's issue.

57
 Table 4.3 Exploratory Research Design
Sr.no Factors Reference
1 Do you Know Vendor Rating? A Study on Various strategies used for
promotion of vendor rating.

2 According to you vendor rating Are? A Study on Various strategies used for
quality, delivery, service, price of
vendor rating.

3 How long have you been a vendor? A Study on Various strategies used for
promotion of vendor rating.

4 You are working in any company other Participant attitude towards of vendor
than ONGC? rating.

5 How long have you been a vendor Participant attitude towards ONGC
ONGC? examining the effects of hours managed
vendor rating.
6 Do you read all the papers while Participant attitude towards ONGC
entering into agreement of vendor examining the effects of understanding
rating with ONGC? the rules while vendor rating.
7 If you are a vendor in ONGC what Company guide.
services you provide?

8 ONGC company gives benefits to A Study on Various strategies used for

vendor? promotion of vendor rating.

9 ONGC company has an internal and Company guide.

external audit program?

10 What is a contract and what are it’s Knowledge, attitude and practices of
elements? over the ONGC market among between
urban population - A cross sectional
study
11 I very well know rating criteria of A Study on Various strategies used for
ONGC? promotion of vendor rating.

12 As a vendor I am assessed and A study on awareness & perspective of

monitored? ONGC i.e., in terms of improvement.

13 ONGC provides training program? Company guide.

14 My experience with ONGC is Predictive model to the study participant

pleasant? choices on various interests - A cross
country study.

58
4.3.3 DESCRIPTIVE RESEARCH DESIGN

When employing a descriptive research method, the researcher is simply concerned with
describing the situation or case being studied. This theory-based design method includes
gathering, analysing, and presenting facts. This gives a researcher the ability to describe the
goals and methods of their research. Others can better understand the need for the research with
the help of descriptive design. If the problem statement is vague, you can conduct exploratory
research. After doing exploratory research, the study was finished using a descriptive single
cross sectional research design. The description of concepts, feelings, and behavioural patterns
in a population or sample group is aided by descriptive study design. Additionally, it contains
information on the traits of the pertinent group.

4.4 TYPE OF DATA

The types of data used in this study were primary and secondary data.

4.4.1 PRIMARY DATA

Primary data are facts that have been obtained directly from a data source without the use of
intermediaries. It is typically acquired for a particular study topic, but it can also be made public
and used in other research. Primary data is typically trustworthy, real, and unbiased in that it
was gathered to address a particular research question. It's important to remember that primary
data collection isn't always done because of the high implementation expenses. Data can be
obtained directly from the subjects of interest by researchers in the social and health sciences.
They call the information they gather "primary data."
Facts that have been gathered directly from a data source without the use of an intermediary
are referred to as primary data. It is usually obtained for a specific research topic, but it can
also be made available and used in other studies. Since it was acquired to answer a specific
study issue, primary data is often reliable, accurate, and impartial. It's crucial to keep in mind
that due to the high implementation costs, primary data collecting isn't always carried out.

4.4.2 SECONDARY DATA

Data that has previously been gathered from primary sources and made easily accessible for
academics to use for their own research is known as secondary data. It is a category of
information that has previously been gathered. The information may have been gathered by
one researcher for a specific study and then made available for use by another researcher.

59
Secondary data is knowledge that has previously been compiled but has been made available
for use by others. They usually started out as primary data, but when they are used by a third
party, they shift to secondary data. Secondary data is often simple for academics and
individuals to get because it is frequently made available in an open manner. On the other hand,
this shows that, unlike primary data, which is tailored to the researcher's specific needs, the
data are often generic.
For instance, when writing a research thesis, researchers must analyse earlier publications on
the topic and include their findings in the literature review. The thesis is supplemented by
additional secondary material, such as definitions and theorems, in order for it to be properly
cited and acknowledged. Secondary data sources like trade magazines, government statistics,
journals, and other publications are common. Most of the time, it is impossible to believe that
these sources are reliable.

4.5 RESEARCH INSTRUMENT

You can obtain, gauge, and assess data on your research topics using a study instrument. In the
health sciences, social sciences, and education, these techniques are most frequently used to
evaluate clients, consumers, students, teachers, and staff. Primary data were gathered via a
structured questionnaire, as well as a personal/electronic survey of clients, to provide the
precise information needed to meet the study's objectives. Utilizing information from
exploratory qualitative and quantitative research, the questionnaire was developed.

4.5.1 QUESTIONNAIRE DESIGN

A questionnaire is a quick and simple method for gathering data from a large number of people
in a short period of time. Therefore, the questionnaire's design is essential for ensuring that
accurate information is acquired and that the findings can be interpreted and extrapolated. A
questionnaire is a type of research tool that consists of a list of inquiries or other prompts
intended to elicit information from a respondent. Open-ended and closed-ended questions are
frequently seen on research questionnaires. Long-form, open-ended questions provide the
respondent room to elaborate on their opinions.

4.5.1.1 UNSTRUCTURED QUESTIONNAIRE

Surveys without a set structure are used to collect qualitative data. They use a basic structure
and a few branching questions, but nothing that limits the alternatives of the response. The
questions are more open-ended in order to elicit specific information from participants. a
market research question that doesn't affect the respondent's response.

60
4.5.1.2 STRUCTURED QUESTIONNAIRE

Structured questionnaires are used to acquire quantitative information. The questionnaire is

painstakingly constructed and intended to gather precise data. Additionally, it begins a formal
investigation, adds information, confirms information already acquired, and helps validate any
prior hypotheses.

4.6 TARGET POPULATION

• The participants in this study were between the Turn-over of less than 5 Lakh to more
than 10 Lakh.
• The total number of individuals who have participated in any vendor is the target
population.
• A sample refers to the group of people who take part in the study. The people who take
part are referred to as "participants.
• Target population Vendor based at Ahmedabad ONGC Asset.

4.7 SAMPLING DESIGN

A mathematical method called sampling design determines the probability of selecting any
particular sample. It requires knowing how to create the sample method that will work best in
a certain situation as well as how to identify the probability functions that define a particular
sampling strategy.

4.7.1 SAMPLE SIZE AND SCOPE

Ahmedabad, Gujarat, was chosen as the sample location. In order to capture the targeted sample
size of 28, assigned enumerators distributed 35 sets of questionnaires depending on the
following characteristics. ONGC vendor only.
This might be because Ahmedabad residents have a greater level of education and, as a result,
are more aware of consumer rights than residents of other Gujarat cities. As a result, the current
study was justified in that it was performed in Ahmedabad, which gets the greatest number of
consumer perceptions about ONGC in Gujarat.
The scope of a study describes how deeply the research area will be probed throughout the
endeavour and details the constraints under which the investigation will operate. This basically
means that you will need to specify what the study will cover and its main focus. The number

61
of individuals or observations included in a study is referred to as the sample size. Usually, n
is used to indicate this number.

4.7.2 DATA COLLECATED TECHNIQUE

• Data was collected from respondents using self-administered questionnaires. The self-
administered questionnaire was utilised for this investigation for various reasons.
• First and foremost, it is a low-cost strategy that can increase response rates.
• Second, the survey questions were straightforward and straightforward, and the scale
used in the survey was simple to interpret and control.
• Third, no sensitive questions were asked in the study. The participants were asked how
they felt about a variety of factors that impact their complaining behaviour.
• Finally, enumerators were given a briefing on the questionnaire to ensure that all
questions were completed thoroughly and that no respondents required further
information.

Questionnaires were distributed from the beginning of July to the beginning of August

4.8 SCALES

4.8.1 5-POINTS LIKERT-TYPE SCALE

A five-point Likert scale provides five alternative answer possibilities for an agreement that
are unique enough for responders to understand without being confusing. It usually has a mild
or neutral middle, and 5-point Likert scales are often considered to be the most accurate of the
Likert scales.
This scale provides five separate agreement response alternatives that are unique enough for
respondents to answer without becoming confused. These scales can be used to assess
probability, significance, frequency, and a variety of other characteristics.

1. Strongly 2. Agree 3. Neutral 4. Disagree 5. Strongly

Agree disagree

62
4.8.2 GUTTMAN SCEALE (YES/NO)

A Guttman scale is a cumulative scale that has been shown to be made up of a hierarchy of
homogenous elements that all pertain to the same idea (Guttman, 1950). The Guttman scale is
constructed using a dichotomous response (Yes = 1, No = 0), and it is used as an ordinal scale.
On the basis of the content of the items, a number of assertions are arranged in a hierarchical
manner (Ekinici and Riley, 1999).
According to Edwards (1957), the Guttman scale works well for hierarchical and highly
organised entities like social distance and organisational hierarchies.

(YES=1, NO=0)

4.8.3 DEMOGRPHIC QUESTIONS

In market research and market segmentation surveys, demographic survey questions are
frequent, and they offer survey producers with information on respondents' age, gender, and
marital status.
Demographic data can provide information about customers that other types of questions may
not be able to provide. Marketers may use this method to conduct focused and reliable survey
research, resulting in filtered responses from their target population.
When developing an online survey, it's important to include a few demographic questions,
regardless of the main topic. These questions should be relevant to the study's aim and
encourage participants to offer detailed responses.

(Name, Gender, City, Marital Status, Turn-over)

4.9 DATA ANALYSIS

Data coding and cleaning should start as soon as the data has been collected. The Frequencies
analyses. The statistical analyses, which include descriptive analysis, validation, and reliability
assessment of the measurement utilised in this study, will be provided in the discussion that
follows.

63
4.9.1 CODING AND CLEANING THE DATA

All of the questionnaire's response questions were converted to numbers for data analysis. The
data cleaning method for all variables was examined to determine whether the data set had any
extreme values or missing data. The data entry method was double-checked to decrease the
possibility of error.

4.9.2 DESCRIPTIVE ANALYSIS

The data was analysed using a number of statistical techniques using the SPSS programmer.
The essential continuous variables of frequencies, percentages, means, and standard deviations
were the subject of descriptive statistics, which concentrated on the demographic information
supplied by respondents. The foundation for a later examination of responder group differences
was set by these descriptive studies.

64
 CHAPTER-5

DATA ANALYSIS

Q 1. Do you know vendor rating?

Figure: 5.1

65
Interpretation:

 Depicted bar charts talk about awareness about how many percentage people are having
knowledge about vendor rating.
 As from total respondents the percentage regarding awareness about vendor rating is
more than unknown so that its interpret that almost people know about what vendor
rating it is.

Q.2 According to you what is vendor rating?

Figure: 5.2

66
Interpretation:

 The above pie chart shows the meaning of vendor rating according to different people’
perception.
 The majority of people believe that vendor rating is all the above this means that it is
Quality rating, Service rating and Price rating, too.
 On the other hand, only 3.57 percentage of people who believe vendor rating is a “Price
rating.”

Q-3 Hoe long have been a vendor?

Figure:5.3

67
Interpretation:

 The given pie chart depicts the year of experiences of vendors are having.
Which means that from how many years they have been in this particular
sector.
 The vendors who are having experience more than 10 years are approx. to
8% and the same percentage is also for having experience 5-10 years.
 28.57% vendors are looking fresher as they are having even less than 1
year of experience

Q-4 You are working in any company other than ONGC?

Figure: 5.4

68
Interpretation:

 The given bar chart shows the percentage of vendors as they have only
relationship with once or also having with other corporates.
 It explains that approximately 72% are having multiple relationship apart
from ONGC. Whereas only 28% are only connected with ONGC.

Q.5 How long have you been vendor at ONGC?

Figure:5.5

69
Interpretation:

 Above pie chart shows that how many years of experience vendors are
having with ONGC.
 Half of the respondents are connected with ONGC in last one year as they
are having experience less than 1 year.
 Besides, 14.29% respondents are having experience more than 3 years.

Q.6 Do you read all the papers while entering to agreement of vendor rating
with ONGC?

Figure: 5.6

70
Interpretation:

 The given bar chart depicts about how many vendors are reading all the
documents while signing the agreement with ONGC.
 75% vendor response is yes this is means that they are very attentive and
conscious while entering into building relationship with ONGC.
 Whereas, rest of vendors have blind trust on ONGC or it might be that they
are more frequently doing transaction with ONGC so they are aware about
terms and conditions of it so don’t feel to read documents.

Q-7 If you are a vendor in ONGC what service do you provide?

Figure: 5.7

71
Interpretation:

• Above pie chart shows that which services the vendor are ready to provide
to ONGC such as car, bus, truck, oil truck, other.
• The highest percentage is about to car which means that more than 50%
vendors are ready to provide car facility at ONGC.
• 10.71% tucks and 7.14 % buses can be facilitated at ONGC by vendors.

Q-8 ONGC company has an internal and external audit program?

Figure: 5.8

72
Interpretation:

 The above bar charts show about audit program awareness among vendors.
 89.29% depicts positive response this means that ONGC are having
internal and external audit program.

Q-9 ONGC company gives benefits to vendor?

Figure: 5.9

73
Interpretation:

 Given bar chart explaining the percentage about benefits that ONGC are
giving to vendors or not.
 Approximately 82% vendors agree with that ONGC provides attractive
benefits to vendors thus they used to maintain good and long-lactic
relationship with ONGC.

Q-10 What is a contract and what are its elements?

Figure: 5.10

74
Interpretation:

 The given pie chart is about vendor opinion towards what is contract and
what are its elements.
 42.86 percentage vendors believe that contract is an intention to create
legal relationship with any organization and I think I am also more agree
with this.
 on the flip side, less than 4% vendors believe that its only consideration.

Q-11 ONGC provides training program.

Figure: 5.11

75
Interpretation:

• The above given bar charts shows the vender perception towards ONGC
about training program that whether they provide training to vendors or
not?
• 53.57% vendors strongly agree that ONGC is providing training program
and more than 35% agree with this statement, too.
• Thus this means that there is no one who disagree with this.

Q-12 I read all papers while I make an agreement.

Figure: 5.12

76
Interpretation:

• The above bar charts show percentage about reading all papers while
dealing agreement.
• More than 80% agree with this statement that they all read all the terms
and conditions while making commercial relationship with ONGC.

Q-13 The management system of ONGC is good.

Figure: 5.13

77
Interpretation:

• Given bar chart talk about the review about the management system of
ONGC whether it is good or not.
• 50% respondents were strongly agreeing that ONGC management system
is really good that shows the satisfaction level of vendors.
• As satisfaction level is high the bond between two parties is also very high.

Q-14 My experience with ONGC is pleasant.

Figure: 5.14

78
Interpretation:

• Given bar chart shows about satisfaction level of working experience with
ONGC.
• More than 50% were highly satisfy with working with ONGC and they feel
pleasant in working relationship with ONGC.

Q-15 ONGC order requirement clearly defined.

Figure: 5.15

79
Interpretation:

• The above bar chart talks about clarity while giving order to other party
reason is that if the requirement given in order is not clearly defined its
create misunderstanding and many more problems.
• And with this statement more than 50 % agree that ONGC order
requirement are always clearly defined thus it’s not waste more time to
clear any problems and helpful to give quick and perfect delivery.

Q-16 As a vendor I am assessed and monitored.

Figure: 5.16

80
Interpretation:

• The above bar chart given information about how many percentage
vendors are self –assessed and monitoring work while dealing with any
organization.
• 46.43% are strong agreeing that they personally looking after over orders
and at working place.

Q-17 Treatment of service vendors in ONGC is unbiased.

Figure: 5.17

81
Interpretation:

• The above bar charts showing the biased level of ONGC while treating
with vendors.
• 42% vendors strongly agree that the treatment of service vendor in ONGC
is unbiased.

Q-18 ONGC cleanly convey my rating results.

Figure: 5.18

82
Interpretation:

• The above bar charts show that ONGC cleanly convey vendors rating
results.
• 60.71% were strongly agree that ONGC cleanly convey rating results.

Q-19 Rating process of ONGC is clear and transparent.

Figure: 5.19

83
Interpretation:

• The above bar graphs give the percentage of review about rating process
of ONGC.
• 53.57% were totally agree that rating process of ONGC is neat and clean
and totally transparent.

Q-20 I very well know criteria of ONGC.

Figure: 5.20

84
Interpretation:

• The above bar charts show percentage level of awareness about rating
criteria of ONGC.
• Approx. 46% were totally aware about ONGC working pattern as they
know very well about rating criteria of ONGC.

85
 CHAPTER-6

FINDINGS

As per Demographic Analysis:

Researcher has taken survey about vendor rating and from his respondents its showing that
almost are knowing about vendor rating as per frequency analysis. According to them vendor
rating is all the above means vendor rating is quality rating, service rating and price raring, too.
Almost vendors are having good corporate relationship with ONGC thought they are working
along with other company. As they are not much educated though 75% of them tent to read all
the papers while entering into agreement of vendor rating with ONGC as they know about
terms and condition of ONGC so that they are connected with ONGC more than 5 years.
42.86% vendors are believing that contract is an intention to create legal relationship where as
32% vendors believe that it’s just only an offer and approximately 21% believe it’s an
acceptance.
As ONGC is big name in industry it is also providing training program to their vendors so that
there will be less chance of creation of problems as they are aware about strategy and pattern
about ONGC in vendor rating. So from survey 53.57% are strongly agree with this statement
that ONGC is providing training program and that create enhancement in vendors to do more
work with ONGC and it is become helpful to ONGC as the deal process till achieving goal will
be smooth.
Additionally, more than 80% are agree with pleasant working experience so that this way they
can boost up trust and this make relationship stronger and longer. The reason behind is that the
treatment of service vendors in ONGC is unbiased thus this encourage more vendors to join
with ONGC.
If given order is clearly defined, there are comparatively less chance of creating
misunderstanding. From survey, more than 80% were agree that ONGC order requirement is
always clearly defined so that more vendors are tent to connect with ONGC from longer time
The observation and follow-up by time to time is really necessary thus you have to keep your
eyes on your goal accomplishment. Thus, 46.43% are totally agree that as being a vendor they
are assessed and monitored so that day to day update they can give to ONGC and ONGC can
record on daily activities.
As vendors are connected with ONGC from long time they know very well about rating criteria
of ONGC.

86
 CHAPTER-7

LIMITATION

• Sample size is small- The strength of a study is in its capacity to identify an effect
when one is there. This is dependent on the size of the effect because larger effects are
more obvious and boost the study's power. In other words, when researchers are forced
to work with a small sample size due to logistical or financial constraints, they might
have to make do with less conclusive findings.

• Time frame is 1 monthly only- The term "time frame" refers to the range of seconds,
minutes, days, hours, weeks, and months within which something might occur. A
project with a single monthly deadline is an example of a time frame.

• Single cross-sectional study- A cross-sectional study is a style of research design in

which you gather information from a large number of individuals all at once. In cross-
sectional research, variables are observed without being changed.

• The data was collected using the main instrument - It's not uncommon to realise
after you've completed your interpretation of the findings that the manner you obtained
data hampered your ability to perform a thorough study of the results.

• Time Consuming -Primary data collecting needs the creation and implementation of a
study strategy to be done appropriately. The time it takes to get from deciding to do a
research endeavour to obtaining findings is frequently significantly longer than the time
it takes to collect secondary data.

• Data that isn't readily available or isn't trustworthy - A lack of data, particularly
trustworthy data, will almost certainly force you to restrict the scope of your research
and the size of your sample, or it will be a substantial impediment to discovering a trend
and a meaningful link.

• Feasibility -When choosing a research question or a market research study, all elements
must be considered, including the project's potential reach. For example, surveying
every client that enters a store might be impractical for any business, or obtaining the
information that a researcher need within a specific time frame is difficult owing to
access difficulties.

87
 CHAPTER-8

CONCLUSION

In depth learning about vendor rating in logistics department in ONGC company. Assisting in
reducing judgmental subjectivity and enabling the evaluation of suppliers taking into account
all pertinent factors. ONGC company history, benefits and its importance is known. ONGC
learned about the company’s CSR project and supply chain management system.
Supplier ratings, often referred to as vendor ratings, are based on a formal method for assessing
companies who offer goods or services to a business. It is a procedure where suppliers are given
status or a title based on a number of factors. Reduced purchasing risk and increased total value
for the buyer are the primary goals of the supplier evaluation process. A minimal evaluation of
supplier quality, cost competitiveness, projected delivery performance, and technological
capabilities is usually required. The system for evaluating a vendor's performance in relation
to other vendors. help predict future patterns and transform a massive amount of data into
comprehensible information for decision-making.
Improve the partnership between the provider and the customer. Create a comparison scale that
may be applied to the distribution of requirements and vendor selection. Update the quality
plan by either raising or decreasing the amount of inspection to the most economical levels. If
the seller has regularly low ratings, stop using them. Boost supply chain management's
efficiency.
Increased outsourcing: a greater reliance on suppliers by buyers. the necessity of managing
supplier performance capabilities efficiently. It uses an improvement strategy, vendor
capability and selection, visiting team report, and vendor questionnaire analysis. a tool for
comparing the performance of their suppliers. Offer unbiased, accurate performance metrics.
assist in reaching a fair assessment of the supplier's performance across all categories of
customer requirements. Provide common factual data on overall performance to the buyer and
the supplier. Reduce the possibility of becoming overwhelmed by solitary failures. Give the
supplier a thorough and comprehensive record of the issues so they can be fixed.
As the foremost Maharatna in India, ONGC has led the way in the development of science and
technology in the nation by founding twelve top-tier institutes under the auspices of the
"Committee of ONGC Institutes," or "COIN." To the largest Indian oil and gas refining and
marketing enterprises, ONGC provides crude oil, natural gas, and value-added products. For
the Indian market, it primarily produces crude oil and natural gas. If ONGC lacks the funds to
explore, its future as an explorer is uncertain. It contributes to the decline in its share price. Ten
discoveries have been reported by the company for its operational averages in FY21.

88
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Project: MCDM Modifications & Applications
https://www.researchgate.net/publication/327120060_Vendor_rating_syst
em_for_an_Indian_start-up_a_combined_AHP_TOPSIS_approach

• by J Marby · 2021 — Vendor rating strategies to mitigate the effects of

cereal supply variations. A case study at a manufacturing company in the
food industry. Johanna Marby.
https://www.diva-portal.org/smash/get/diva2:1563194/FULLTEXT01.pdf

• by G Kamath · 2018 · Cited by 4 — Research objectives The main objective

of the research is to identify the measure or criteria that impact the
evaluation of the vendor at XYZ firm.
https://arxiv.org/pdf/1806.03252

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 ANNEXURE

QUESTIONNARE

“An Empirical study on perception of services

vendor towards vendor rating practices at ONGC”

1. Name:

2. E-mail:

3. Gender:
A. Male
B. Female

4. City:

5. Marital Status:
A. Married
B. Unmarried

6. State Your Yearly Turn-over:

A. Less than 5 lakh
B. 5-10 lakh
C. More than 10 lakh

7. Do you know Vendor Rating?

A. Yes
B. No

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8. According to you Vendor Rating Are?
A. Quality Rating
B. Delivery Rating
C. Service Rating
D. Price Rating
E. All of above

9. How long have you been a Vendor?

A. 1 year or less
B. 2-3 year
C. 3-5 year
D. 5-10 year
E. More than 10 year

10. You are working in any company other than ONGC?

A. Yes
B. No

11. How long have you been a Vendor ONGC?

A. Less than 1 year
B. 1-3 year
C. More than 3 year

12. Do you read all the paper while entering into agreement of Vendor
rating with ONGC?
A. Yes
B. No

13. If you are a Vendor in ONGC what services do you provide?

A. Car
B. Bus
C. Truck
D. Oil truck
E. Other

93
 14. ONGC company has an internal and external audit program?
A. Yes
B. No

15. ONGC company gives benefits to Vendor?

A. Yes
B. No

16. What is a contract and what are it’s elements?

A. An offer
B. An acceptance
C. An intention to create legal relationship
D. A consideration

17. Vendor perception towards ONGC:

Strongly Agree Neutral Disagree Strongly

Agree Disagree
ONGC
provides
training
program
I read all
paper while
I make an
agreement
The
management
system of
ONGC is
good
My
experience
with ONGC
is pleasent
ONGC
order
requirement
clearly
defined

94
As a vendor
I am
assessed and
monitored
Treatment
of services
vendor in
ONGC is
unbiased
ONGC
cleansly
convey my
rating
results
Rating
process of
ONGC is
clear and
transparent
I very well
know rating
criteria of
ONGC

95