1. IE Department
Strategic Planning For Gas Industries In Egypt
Under supervision of:
Prof.Dr. Attia Gomaa
2013
Case Study: Natural Gas Vehicles Company
Presented by :
Mohammed Taher

2. IE Department
1. Core Objectives
2. Strategic Planning Overview
3. Feasibility study overview
4. Case Study Overview (Video)
5. Annual Report Analysis
6. Strategic Objectives Analysis
7. Benchmarking Analysis
8. Proposed KPIs Report
9. Proposed Strategic Plan
10. Proposed Feasibility Study
11. Conclusion
Contents:

3. IE Department
1- Understand the importance of strategic planning
2- Apply effective strategic planning approach:
• To improve the customer satisfaction
• To increase the market share
• To Increase the profit ratio
• To Improve the resource productivity
• To Satisfy the Quality & HSE standards
Core Objectives:

4. IE Department
Now
Future
Vision, Values & Mission
 A systematic Methodology to design the
business future.
Strategic planning definition
STRATEGIC PLANNING

5. IE Department
Proposed Strategic Planning Process
Analysis (Environmental assessment)
Strategies
Strategic Objectives
Action Plans
SWOT Analysis
GAP Analysis
Mission
Reason for
existence
Vision
Future
intent
Values
Attitudes and
policies
SMART Goals
Company Integration Management
Feasibility Study

6. IE Department
• Why we exist?
• what an
organization should
look like in the
future?
Vision
• How we act?
• how an organization
should act?
Values
• How we think?
• What is our
purpose?
Mission
STRATEGIC PLANNING

7. IE Department
Company Integration Management
Financial
SkillsProcess
Market
Total View

8. IE Department
SWOT Analysis
Analysis (Environmental assessment)
SWOT Analysis
Mission
Reason for
existence
Vision
Future
intent
Values
Attitudes and
policies
Negative (Harmful)Positive (Beneficial)
WeaknessesStrengths
Internal
ThreatsOpportunities
External

9. IE Department
Main Strategic Directions
Financial
SkillsProcess
Market
Negative (Harmful)Positive (Beneficial)
WeaknessesStrengths
Internal
ThreatsOpportunities
External

10. IE Department
SWOT Analysis – Integration is key
SWOTs need Integrating
P

11. IE Department
Company Integration Management
Financial
SkillsProcess
Market
Strategic Objectives
Business Objectives drive the Strategic Action Plan

12. IE Department
Company Integration Management
Financial
SkillsProcess
Market
KPIs for each Discipline
KPI Report for Top Management

13. IE Department
Feasibility
Study Report
(10)
Conclusion
(4)
Technical
Study
(5)
Environmental
Study
(3)
Marketing
Study
(6)
Economical
Study
(1)
Project
Overview
(7)
Financial
Study
(2)
Location
Study
(8)
Risk
Study
(9)
How to
Management?
Proposed Feasibility Study

14. IE Department
CASE STUDY :
NATURAL GAS VEHICLES COMPANY

15. IE Department
Company Overview
Achievements:
57 stations
23 conversion centers
57 compressor units
304 refueling points running in all Egypt, a wide range of
Compressor natural gas (CNG)
THE PURPOSE OF THE COMPANY
Manufacturing , installation ,design and maintenance of natural gas in
its various operating systems for vehicles.
Design , construction , operation , maintenance , management and
ownership of gas centers and systems
Video
Car gas company achieve government plans to minimize
petroleum support

16. IE Department

17. IE Department
 Mission:
Commercializing vehicular natural gas as the best alternative fuel for vehicles within
the Arab Republic of Egypt and worldwide.
 Vision:
Build market leadership and distinctiveness to break away from competition and to
become the undisputed leader in global vehicular natural gas industry
 Core Values
Change culture
safety awareness (within the processes an toward clients)
Team work
Customer satisfaction
sustainability
Quality of process
Efficiency

18. IE Department
Comments
1-Vision: where the organization wants to go
in the future ?
- Not future intent
2-Mission :how we think??
Not sufficient reasons for existence
3-Not clear and sample.
4-Not focused and objective.

19. IE Department
‫المنتدب‬ ‫العضو‬‫و‬ ‫ة‬‫االدار‬ ‫مجمس‬ ‫رئيس‬
‫خجٍـــــــــــــــــــــــــــــش‬
‫تكميــف‬
‫بأعمال‬ ‫قائم‬
‫منتـــدب‬
‫المىتــــــــــــــــذة‬ ُ‫الؼض‬ ‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫االداسح‬ ‫مجلظ‬ ‫لشئُن‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫لّمــــــــــــــــــــــــــه‬
‫مغبػذ‬
‫الششكخ‬ ‫سئٍظ‬
‫الجشـــــشٌخ‬ ‫للمُاسد‬
‫مغبػذ‬
‫الششكخ‬ ‫سئٍظ‬
‫التجبسٌــخ‬ ‫للشئُن‬
‫الؼبمخ‬ ‫االداسح‬
‫َاالقتصبدٌخ‬ ‫الفىٍخ‬ ‫للشئُن‬
‫الؼبمخ‬ ‫االداسح‬
‫للؼملٍـــــــــــــــــــبد‬
‫الؼبمخ‬ ‫االداسح‬
‫المبلٍـــــــــخ‬ ‫للشئُن‬
‫الؼبمخ‬ ‫االداسح‬
‫المذوٍخ‬ ‫للمشــشَػبد‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫الذاخلٍــــــــخ‬ ‫للمشاجؼخ‬
‫الؼبمخ‬ ‫االداسح‬
‫الجشــــــشٌخ‬ ‫للمُاسد‬
‫الؼبمخ‬ ‫االداسح‬
‫التجبسٌــــــخ‬ ‫للشئُن‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫َالذػبٌخ‬ ‫التغٌُق‬ ‫لجذُث‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫للمٍمـــــــــــــــــــبد‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫للضٌـــــــــــــــــــــُد‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫للىقـــــــــــــــــــــــــــــــل‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫المٍىٍخ‬ ‫َالصذخ‬ ‫للغالمخ‬
‫الجٍئخ‬ ‫َدمبٌخ‬
‫المغبػذح‬ ‫الؼبمخ‬ ‫االداسح‬
‫المؼلُمبد‬ ‫لتكىُلُجٍب‬
‫َاالتصبالد‬
‫الؼبمخ‬ ‫االداسح‬
‫االقبوُوٍــــــخ‬ ‫للشئُن‬
Organization structure

20. IE Department
Proposed Financial
Indicators
1) Profit Ratio
2) Revenue
3) Total Cost
4) Inventory Turnover
5) Value Added
6) Assets Turnover
7) CAPEX

21. IE Department
 Profit ratio = Net profit / Revenue
 Total cost = revenue – profit
 Revenue = Total cost + Profit
 Value added ratio =(revenue- external cost )/external cost
 Inventory turnover = Sales Cost / Average inventory cost
 Assets turnover = Revenue / assets (CAPEX)

22. IE Department
Profit ratio
conversion
net profit revenue
Refuelling
net profit revenue
lubrication
net profit revenue
Profit ratio

23. IE Department
Total cost
conversion
revenue
profit
refueling
revenue
profit
lubrication
revenue
profit
Total cost

24. IE Department
revenue
conversion
total cost profit
refueling
total cost profit
lubrication
total cost profit
Revenue

25. IE Department
Inventory
turnover
Income Annual inventory cost
Inventory turnover

26. IE Department
Value
added
Revenue
External
cost
Running
cost
Sales
cost
Overhead
cost
Value added

27. IE Department
Assets turnover
Revenue Assets (capex)
Assets turnover

28. IE Department
CAPEX
Fixed assets
project under
Implementation
Investments in
bonds
CAPEX

29. IE Department
Current situation Analysis:
RespondCurrent 2010Actual 2009unitItem
conversion0.5770.51---Profit ratio
57.7251%
refueling0.2770.242---
27.7924.2%
Lubrication0.941.32---
94132%
conversion39,799,94135,247,714L.ERevenue
refuelings82,649,15874,152,628L.E
lubrication24,224,78313,614,716L.E
All activities173,758,960144,849,764L.ETotal rev.

30. IE Department
conversion24,997,22023,232,329L.ETotal cost
refueling33,212,14629,647,281L.E
lubrication16,654,74610,019,521L.E
All activities145,603,289117,529,116L.E
All activities70,739,17754,629,986L.ERunning cost
All activities356,45297.16%Inventory turnover
All activities85,269,27076,209,414L.EValue added
All activities113.494.8%Assets turnover
All activities153,224,223152,755,621L.ECapex
Current situation Analysis:

31. IE Department
Current situation Analysis:
varianceResponActual 2010Actual 2009UnitItem
13.17conversion57.7251%Profit ratio
14.83Refueling27.7924.2
-28.79Lubrication94132
27.57conversion39,799,94135,247,714%revenue
24.19Refueling82,649,15874,152,628%
216.5lubrication24,224,78313,614,716L.E
19.95All companies356.45297.16L.EInventory
turnover

32. IE Department
25.19All companies85,269,27076,209,414L.EValue added
19.62All companies113.494.8%Assets turnover
70All companies153,224,2231,527,556L.ECapex
15.71conversion107.592.9%Total cost
25.56Refueling11289.2
176.5lubrication166.260.1
Current situation Analysis:

33. IE Department
Benchmarking Analysis
External company
Italian company
(landirenzo)
Internal
benchmarking
(car gas company
in 2007)

34. IE Department
Performancelevel
Time line
Current situation
World class
(landyrinzo)
The
competition
What's the
Gap?
2010 2011 2012 2013 2014

35. IE Department
Strategic objective:
External
benchmark
Internal
benchmark
Current
2010
Actual
2009
unitItem
9065577251%Profit ratio
704027.7924.2
18015094132
180150112.988.5%revenue
200150111.489.7
280200177.956.20
7080107.592.9%Total cost
758011289.2
8075166.260.1

36. IE Department
400360356.45297.16%Inventory
turnover
180140111.889.3%Value added
200150113.494.8%Assets turnover
200120100.399.6%Capex ratio
Strategic objective:

37. IE Department
Performancelevel
Time line
2010 2011 2012 2013 2014
Target
Current

38. IE Department
Current
(2010)
Target
(2011)
Goal
(2012)
Goal
(2015)
Improve
20%
Improve
20%
Improve
20%
Long Term Continuous Improvement

39. IE Department
Goals & Target:
responsGoal
2014
Goal
2013
Goal
2012
Target
2011
Current
2010
UnitItem
conversion908575657.72%Profit ratio
refueling7060504027.79
Lubrication18017016015054
Conversion200180170150112.9%Revenue
Refueling200180170150111.4
Lubrication280260230200177.9
Conversion50607080107.5%Total cost
Refueling50607080112
Lubrication40506075166.2

40. IE Department
All400380370360356.45%Inventory
turnover
All180170160140111.8%Value added
All200180170150113.4%Assets
turnover
All200175150120100.3%Capex ratio
Goals & Target:

41. IE Department
 Financial KPI:
Strength
points
• Revenue (24.19%)
• Value added (25.19%)
• CAPEX ratio (70%)
• Inventory turnover (19.9%)
Weakness
points
• Total cost (15.7%)
• Profitability (-28.7%)
• Assets turnover (19.6%)

42. IE Department
Market kPI:

43. IE Department
Market Indicators :
1. Market Share
2. Number Of Customers
3. Claim Ratio
4. Market Value Added
5. Competition Ratio
6. Customer Satisfaction Level
7. Sales Quantity
8. Market Quantity

44. IE Department
Market share
A percentage of total sales volume in a market
captured by a brand, product, or company.
Market share =sales quantity/overall market quantity

45. IE Department
market
share
cionversion
sales Q
no. of cars
per month
market Q
total no. of
cars per
month
re-fuelling
sales Q
sales of
gas per
month
market Q
total sales
of gas per
month
Market share

46. IE Department
Indicator 2009 2010
Sales quantity 360 * 12 = 4320
car/year
813*12=9756
car/year
Market quantity 986 * 12 = 11832
cars/year
1621*12=19452
cars/year
Market share 4320 / 11832 = 36.5
%
50.1 %
Conversion:

47. IE Department
Re-fuelling:
Indicator 2009 2010
Sales quantity 12.3*12 = 147.6
M m2/year
16.4 * 12 = 196.8
M m2/year
Market quantity 31 * 12 = 372
M m2/year
39 * 12 = 468
M m2/year
Market share 147.6/372 = 39.9% 196.8/468=42%

48. IE Department
Number of customers
The total number of cars which were
converted and amount of gas sold within
the company since the beginning of the
activity

49. IE Department
number of
customers
conversion
total
customers for
conersioning
into gas
re-fuelling
total number of
customers to
re-fuelling
Number of customers

50. IE Department
Indicator 2009 2010
Conversion number
of customers
45508 cars 62433 cars
Re-fuelling number
of customers
103,229 cars 145565
Number of customers

51. IE Department
Sales quantity
The amount of million meter of gas
sold annually
The amount of cars which were
converted annually

52. IE Department
sales
quantity
conversion
number of
cars per
month
re-fuelling
number of
million meter
of gas
Sales quantity

53. IE Department
Indicator 2009 2010
Conversion sales
quantity
360*12 = 4320 cars 813*12= 9756 cars
Re-fuelling sales
quantity
12.3 * 12 =
147.6 Mm3
16.4*12=
196.8 Mm3
Sales quantity

54. IE Department
Market quantity
Is defined as the amount of cars or
meter of gas consumption during the
month corresponding to the overall
market consumption

55. IE Department
market
quantity
conversion
number of
cars per
month/overall
re-fuelling
total sales of
gas
Market quantity

56. IE Department
Indicator 2009 2010
Conversion
market quantity
986*12 = 11,832
cars
1621*12 = 19,452
cars
Re-fuelling
market quantity
31*12 = 372 Mm3 39*12 = 468 Mm3
Market quantity

57. IE Department
Customer satisfaction ratio
The degree of satisfaction provided by
the goods or services of a company as
measured by the number of repeat
customers
Customer satisfaction ratio = (total no of cars- total no of rejected)/total
no of cars

58. IE Department
Customer
satisfaction
conversion
total
number of
cars
number of
rejected
cars
Customer satisfaction ratio

59. IE Department
Indicator calculations 2009 2010
Customer
satisfaction
ratio
=
97%
=
99.4
Customer satisfaction ratio

60. IE Department
Competition ratio
Is the ratio of the company’s sales
quantity to the others competitors
sales quantity

61. IE Department
competition
ratio
conversion
number of cars
converted from
the beginning
at Car gas
total number of
cars
number of
stations (
fuelling)
number of
Cargas
stations
total number of
stations
Competition ratio

62. IE Department
Indicator calculations 2009 2010
Conversion
competition ratio
45508/103229
=
44 %
62433/145565
=
42%
Re-fuelling
competition ratio
52/119 =
43%
57/137 =
41%
Competition ratio

63. IE Department
Claims ratio
The ratio of the cost of claims to the
corresponding premiums, either gross or
net of reinsurance
Claims ratio=no of rejected cars/total no of
cars

64. IE Department
claims ratio
conversion
total
number of
claims
number of
cars per
year
Claims ratio

65. IE Department
Indicator 2009 2010
Claims rate 3 9
Number of rejected cars 129 878
Total number of cars 4320 9756
Claims ratio 2 % 8%
Claims ratio

66. IE Department
Current Situation Analysis
Conversion:
Item Unit 2009 2010 Responsibility
Market share % 36.5 50.1 Market Dept.
Number of
customers
Cars 45508 62433 Market Dept.
Claim ratio % 2 8 Market Dept.
Competition ratio % 44 42 Market Dept.
Customer
satisfaction
Cars 4214 9703 Market Dept.
Sales quantity Cars 4320 9756 Market Dept.
Market quantity Cars 11832 19452 Market Dept.

67. IE Department
Re-fuelling:
Item Unit 2009 2010 Responsibility
Market share % 39.9 42 Market Dept.
Number of
customers
cars 103229 145565 Market Dept.
Claim ratio % 41.4 58% Market Dept.
Competition ratio % 43 41 Market Dept.
Sales quantity Cars 147.6
(42.8 %)
196.8
(57.4 %)
Market Dept.
Market quantity cars 372
(44.2 %)
468
(55.7 % )
Market Dept.

68. IE Department
Current Situation Analysis
Item Unit 2009 2010 Responsibility Variance
%
Market share % 36.5 50.1 Market Dept. 37.2
Cumulative #
of customers
cars 45508
(over 15 y)
62433
(over 16 y)
Market Dept. 37.19
Claim ratio % 2 8 Market Dept. 300
Competition
ratio
% 44 42 Market Dept. 4.54
Customer
satisfaction
Cars
%
4214
( 98 %)
9703
( 92 %)
Market Dept. 130.2
Sales quantity Cars 4320 9756 Market Dept. 125
Market
quantity
cars 11832 19452 Market Dept. 64.4
Conversion:

69. IE Department
Re-fuelling:
Item Unit 2009 2010 Responsibility Variance
Market share % 39.9 42 Market Dept. 5.26
Number of
customers
cars 103229 145565 Market Dept. 41.01
Claim ratio % 41.4 58% Market Dept.
Competition
ratio
% 43 41 Market Dept. -4.65
Sales quantity Cars 147.6
(42.8 %)
196.8
(57.4 %)
Market Dept. 33
Market
quantity
cars 372
(44.2 %)
468
(55.7 % )
Market Dept. 25.8

70. IE Department
Benchmarking Analysis
External company
(landirenzo)
Internal
benchmarking
(car gas company
in 2007)

71. IE Department
Performancelevel
Time line
Current situation
World class
(landirenzo)
The
competition
What's the
cap?
2010 2011 2012 2013
2014

72. IE Department
Strategic objectives
Item Unit 2009 2010 Internal
benchmark
External
benchmark
Market share % 36.5 50.1 65 75
Number of
customers
cars 45508
(42 %)
62433
(57 % )
65 % 80 %
Claim ratio % 2 8 5 1
Competition
ratio
% 44 42 50 80
Customer
satisfaction
Cars 4214
(30%)
9703
(69%)
75 % 90 %
Sales quantity Cars 4320
(30.6 %)
9756
(69.3%)
75 % 90 %
Market
quantity
cars 11832
(37.8 % )
19452
( 62.1 %)
75 % 85 %
Conversion:

73. IE Department
Re-fuelling :
Item Unit 2009 2010 Internal
benchmark
External
Benchmark
Market share % 39.9 42 50 70
Number of
customers
cars 103229
(41.4 %)
145565
(58.5 %)
60 % 85%
Claim ratio % 41.4 58% --- ---
Competition
ratio
% 43 41 50 70
Sales
quantity
Cars 147.6
(42.8 %)
196.8
(57.4 %)
60 % 85 %
Market
quantity
cars 372
(44.2 %)
468
(55.7 % )
65 % 85 %

74. IE Department
Performancelevel
Time line
2010 2011 2012 2013
2014
target
current

75. IE Department
Current
(2010)
Target
(2011)
Goal
(2012)
Goal
(2015)
Improve
20%
Improve
20%
Improve
20%
Long Term Continuous Improvement

76. IE Department
Goals and Targets
Conversion:
Item Unit 2009
(current)
2010
(target)
2011
(goal)
2012
(goal)
2013
(goal)
Market share % 36.5 50.1 65 70 75
Number of
customers
% 42 57 65 75 80
Claims ratio % 2 8 5 3 1
Competition
ratio
% 44 42 50 65 80
Customer
satisfaction
% 30 69 75 80 90
Sales
quantity
% 30.6 69.3 75 80 90
Market
quantity
% 37.8 62.1 70 80 85

77. IE Department
Re-fuelling:
Item Unit 2009
(current)
2010
(target)
2011
(goal)
2012
(goal)
2013
(goal)
Market
share
% 39.9 42 50 60 70
Number of
customers
% 41.4 58.5 60 70 85
Competition
ratio
% 43 41 50 60 70
Sales
quantity
% 42.8 57.1 60 75 85
Market
quantity
% 44.2 55.7 65 75 85

78. IE Department
Market kPI:
Strength
point
• Market share (37.2%)
• Number of customers (37.19%)
• Customer satisfaction (130.2%)
• Sales quantity (125%)
• Market quantity (64.4%)
Weakness
point
• Claim ratio (300%)
• Competition ratio (4.5% )

79. IE Department
Skill’s kPI :

80. IE Department
Skill’s Indicators:
1. Attendance
2. Labor productivity
3. Employee turnover
4. Injury rate
5. Illness rate
6. Quality of training

81. IE Department
Attendance
Attendance is the act of attending work. The
attendance rate tells you the average
percentage of employee attending the
company each day in the given year
Attendance % =
(total no of employee –Absent )/total no of employee

82. IE Department
Attendance
total number
of Employee
Absent
Attendance

83. IE Department
Attendance 2009 = 90 %
Attendance 2010 = 70 %
Attendance

84. IE Department
Labor productivity
Rate of output per worker (or a group of
workers) per unit of time as compared with
an established standard or expected rate
of output.
Labor productivity = total quantity / man-hr

85. IE Department
Labor productivity
Conversion
total
number of
cars
man hour "
working
hours"
Re-fuelling
total
quantity
sold
working
hours
Labor productivity

86. IE Department
Indicator Unit 2009 2010
Conversion Car/Man-Day = 2 = 4
Re-Fuelling Mm3 /Man-Day = 0.02 = 0.026
Labor productivity

87. IE Department
Employee turnover
The ratio of the number of employees that
leave a company through attrition,
dismissal, or resignation during a period to
the number of employees on payroll during
the same period.

88. IE Department
Employee turnover for 2009  1%
Employee turnover for 2010  0.9%
Employee turnover

89. IE Department
Injury rate
Injury rate
number of
Injured
employee
The number of injuries which happens to the workers during working within the
stations

90. IE Department
Injury Rate  2009 = 0.25%
Injury Rate  2010 = 0.23%
Injury rate

91. IE Department
Illness rate
The illness rate is calculated by
comparing employee illness-related
absences against planned working time,
within a specific period
Illness rate = No of illed employee/total no of
employee

92. IE Department
Illness
Rate
Number of
illed
Employee
Total
Number of
Employee
Illness rate

93. IE Department
Indicator 2009 2010
Illness rate 400/1457 = 0.27 = 27% 475/1457 = 0.32 = 32.6 %
Illness rate

94. IE Department
Quality Of
Training
Number of
Trainee
Quality Of Training
Is defined as the ratio between the planned courses attenders to the actual
workers who attended those course

95. IE Department
Indicator Unit 2009 2010
Actual Training
Courses
Attendees
Employee/Year 193 295
Planes Training
Courses
Attendees
Employee/Year 700 700
Quality Of Training

96. IE Department
Current Situation Analysis
Item Unit Actual
(2009)
Current
(2010)
Responsibility Comment
Attendance % 90 70 HR
Labor
Productivity
Car/Man-Day 2 4 Conversion
Mm3/Man-Day 0.02 0.026 Re-Fuelling
Employee
Turnover
% 1 0.9 HR
Injury Rate % 0.25 0.23 HR
Illness Rate % 27 32.6 HR
Actual
Quality Rate
Employee/Day 193 295 HR
Planned
Quality Rate
Employee/Day 700 700 HR

97. IE Department
Current Situation Analysis:
Item Unit Actual
(2009)
Current
(2010)
Responsibility Variance
%
Comment
Attendance % 90 70 HR -22.2
Labor
Productivity
Car/Man-
Day
2 4 Conversion 100
Mm3/Man
-Day
0.02 0.026 Re-Fuelling 30
Employee
Turnover
% 1 0.9 HR -10
Injury Rate % 0.25 0.23 HR -8
Illness Rate % 27 32.6 HR 20.7
Actual
Quality Rate
Employee
/Day
193 295 HR 52.8
Planned
Quality Rate
Employee
/Day
700 700 HR ---

98. IE Department
Benchmarking Analysis
External company
(landirenzo)
Internal
benchmarking
(car gas company
in 2007)

99. IE Department
Performancelevel
Time line
Current situation
World class
(landyrinzo)
The
competition
What's the
cap?
2010 2011 2012 2013
2014

100. IE Department
Strategic objectives
Item Unit Actual
(2009)
Current
(2010)
Internal
Benchmark
External
Benchmark
Attendance % 90 70 95 100
Labor
Productivity
Car/Man-Day 2 4 6 10
Mm3/Man-Day 0.02 0.026 0.027 0.03
Employee
Turnover
% 1 0.9 2 10
Injury Rate % 0.25 0.23 0.2 0.01
Illness Rate % 27 32.6 20 10
Actual Quality
Rate
Employee/Day 193 295 70 95

101. IE Department
Performancelevel
Time line
2010 2011 2012 2013
2014
target
current

102. IE Department
Current
(2010)
Target
(2011)
Goal
(2012)
Goal
(2015)
Improve
20%
Improve
20%
Improve
20%
Long Term Continuous Improvement

103. IE Department
Goals and targets
Item Unit Current
(2010)
Target
(2011)
Goal
(2012)
Goal
(2013)
Goal
(2014)
Attendance % 70 95 96 97 100
Labor
Productivity
Car/Man-
Day
4 6 7 8 10
Mm3/Man-
Day
0.026 0.027 0.026 0.028 0.03
Employee
Turnover
% 0.9 2 5 7 10
Injury Rate % 0.23 0.2 0.1 0.09 0.01
Illness Rate % 32.6 20 15 12 10
Actual Quality
Rate
Employee/D
ay
295 70 80 90 95

104. IE Department
Skills kPI :
Strength
point
• Labor productivity (100%)
• Quality rate (52.8%)
• Illness rate (20.7%)
Weakness
point
• Attendance (-22.2%)
• Employee turnover (-10%)
• Injury rate (-8%)

105. IE Department
Process kPI :

106. IE Department
Process Indicators:
1. Performance rate.
2. Quality rate
3. Process utilization
4. Defect ratio
5. Maximum operation hours
6. Process consumption
7. Number of activities
8. Capacity

107. IE Department
Performance rate = total quantity/working hours
Performance rate
The job related activities expected of a
worker and how well those activities were
executed. Many business personnel
directors assess the employee
performance of each staff member on an
annual or quarterly basis in order to help
them identify suggested areas for
improvement.

108. IE Department
Performance
rate
Conversion
Total no. of
converted
working
hrs.
Sales of gas.
Total
quantity of
gas
Working hrs
Performance rate

109. IE Department
Quality rate = Accepted Quantity/Total quantity
Measures of good or service
characteristics based on customer
specifications and expectations, and which
are essential elements in achieving
customer satisfaction.
Quality rate

110. IE Department
Quality rate
Conversion
Accepted
conversion
cars
Total
converted
cars
Sales of gas
Accepted
gas sales
Total
quantity of
saling gas
Quality rate

111. IE Department
Defect ratio = Total quantity – Accepted quantity
Defect ratio
A defect rate shows how many errors in
production occur on average

112. IE Department
Defect ratio
Total
quantity
Conversion Sales of gas
Accepted
quantity
Conversion Sales of gas
Defect ratio

113. IE Department
Max. Operation hrs = Time of converting 1 car * total no. of car/years
Max. Operation hrs = time of filling 1 car*total no. of cars /years
Maximum operation hours
The maximum allowable hours which the
worker operates at during the whole year

114. IE Department
Maximum operation hours
Max.
operation
hrs.
Conversion
Time of
converting
1 car
Total no. of
cars/year
Sales of gas
Time of
filling 1 car
Total no. of
cars/year

115. IE Department
No. of activities = Sales Quantity /years
No. of activities =No of converted cars /years
Number of activities
Its defined For the conversion process to
be the number of converted cars that the
operated done annualy
And for the re-fuelling activity it can be
defined as the actual sold quantity of gas
during the year

116. IE Department
No. of Activities
Conversion Sales of cars
Number of activities

117. IE Department
Capacity = Actual capacity/planned capacity
Capacity
Highest sustainable output rate (maximum number of units per month,
quarter, or year) that can be achieved with current resources, maintenance
strategies, product specifications

118. IE Department
Capacity
Capacity
Conversion
Actual
capacity
production
Planned
capacity
production
Sales of
gas
Actual
sales of
capacity
Planned
sales
capacity

119. IE Department
Current situation Analysis:
VarianceResponsibility20102009UnitItem
100process1200600Car/yearPerformance
rate
12process76.968.64%Quality rate
100process104 (66%)52 (33%)Car-yearDetect ratio
126process39024
(69.3%)
17280
(30.6%)
Hr-yearMax.
operation hrs
38.7process9756
(69.3%)
4320
(30.6%)
Car/yearNo. of
activities
49.1%process88%59%%Capacity ratio
Conversion:

120. IE Department
Sales of gas
Variance
%
Responsibility20102009UnitItem
31.7process0.0270.0205Mm3 /yearPerformance rate
1.02process9998%Quality rate
-39.5%process120,000
(37.5%)
200,000
(62%)
Mm3/gasDetect ratio
37.2%process5202
(57.8%)
3792.3
(42.1%)
Hrs-yearMax. operation hrs
34%process16.41
(57%)
12.3
(42.6%)
M-m3Fuel consumption
-24.4%process147.6
(43%)
19506
(56.9%)
Mm3/yearNo. of activities
4%process104%100%%Capacity ratio

121. IE Department
Strategic objective
Conversion:
External
benchmark
Internal
benchmark
20102009UnitItem
250015001200600Car/yearPerformance
rate
957567.968.64%Quality rate
80%70%66%33%%Detect ratio
87%75%69.3%30.6%%Max.
operation hrs
85%74%69.3%30%%No. of
activities
96%90%88%59%%Capacity ratio

122. IE Department
Sales of gas:
External
benchmark
Internal
benchmark
20102009UnitItem
500000003500000273333320500Mm3 /yearPerformance
rate
10099.59998%Quality rate
10%30%37.5%62%%Defect ratio
77%65%57.8%42.1%%Max.
operation hrs
76%64%57%42.6%%Fuel
consumption
80%65%43%56.9%%No. of
activities
130%115%104100%Capacity ratio

123. IE Department
Goals and target
Conversion
20142013201220112010Item
25002300190015001200Performance
rate
9586807567.9Quality rate
5%10%20%33%66%Defect ratio
87%80%77%75%69.3%Max.
operation hrs
85%80%75%74%69.3%No. of
activities
96%95%92%90%88%Capacity
ratio

124. IE Department
Sales of gas
20142013201220112010Item
5000000046000000400000035000002733333Performance
rate
10099.999.799.599Quality rate
10%20%25%30%37.5%Detect ratio
77%70%68%65%57.8%Max.
operation hrs
80%75%70%65%43%No. of
activities
76%74%68%64%57%Fuel
consumption
130%125%120%115%104%Capacity
ratio

125. IE Department
KPI process :
Strength
points
• Defect ratio (-39.5%)
• Max. operation hours (37%)
• Capacity ratio (4%)
Weakness
point
• No. of activities (-24.4%)
sales of gas

126. IE Department
Strength
points
• 1)Max. operation (126%)
• 2)No. of activities (38.7%)
• 3)Capacity ratio (49.1%)
Weakness
points
• Detect ratio (33%)
conversion
KPI process :

127. IE Department
KPI Report
Strength points:
Revenue (24.19%)
Value added (25.9%)
CAPEX ratio (70%)
Inventory turnover (19.9%)
Market share (37.2%)
Customer satisfaction (130.2%)
Sales quantity (125%)
Labor productivity (100%)
Market Quantity (64.4%)
Capacity ratio (4.5%)

128. IE Department
Weakness points
Total cost (15.7%)
Profitability (-28.7%)
Assets turnover (19.5%)
Claim ratio (300%)
Competition ratio (4.5%)
Attendance (-22.2%)
Employee turnover (-10%)
Injury rate (-8%)
Defect ratio (-39.5%)
No. of activities (-24.4%)
KPI Report

129. IE Department
Threats
New technology for design
New technology for stations
New technology for services
More competition
External factors
KPI Report

130. IE Department
opportunities
Change in petroleum prices
New markets
Online markets
Development of Information system
Development in gas technology
KPI Report

131. IE Department
Recommendations :
Change in management culture
Change in customer culture
Market motivation
Training plan Improvement
Increase the station gas
Development of manufacturing the cylinders gas
KPI Report

132. IE Department
Action strategic plan
Main
Objective Main Items Budget Duration Start Finish Responsible
Increase
the
station
gas
4 New Stations:
1.Matrya
2.Aaz eldin
3.Elatamia
4.New cairo
11000000 3
years
1/1/
2012
1/1/
2015
Process
department
Training
Improve
ment
New Courses:
Process
Safety
Quality
Market 100000
2
years
15/5/
2012
15/5/
2014
HR
department

133. IE Department
Feasibility study
For Example:
Matrya station in car gas company

134. IE Department

135. IE Department

136. IE Department
Item Unit Year #1 Year #2 Year #3 …. Year #n
Market Information:
Investment Information:
Technical Information:
Cost Elements Information:
Others Information:
Bank interest rate= i % MARR = I % Project duration= n years
Case Study: Feasibility Study for

137. IE Department
• Technical study
(daily working hours, daily production, machine utilization,
, space layout, etc)
• Economical study
(unit cost, unit price, profit %, CAPEX %, OPEX %,
Value added %, Margin factor %, etc)
• Financial study
(salvage value, cash flow, payback period, NPV,, IRR, etc)
• Environmental & Safety study
(safety policy, safety tools & equipment, etc)
• Management Study
(vision, values, mission, organization structure, KPI report, etc).

138. IE Department
Technical study
Daily working hours
Daily production
Machine utilization
Quality policy
Space layout

139. IE Department
54321units
72007200720072007200Hr/yearWorking hr
18001770172516501500Car/yea
r
Annual
converted
cars
420000039000003600000330000030000000m³/yearDaily
production
0.660.670.700.700.75%Machine
ulitilization

140. IE Department
Economical study
Unit cost
Unit price
Profit (%)
Capex(%)
Opex(%)
Value added(%)
Margin factor

141. IE Department
54321unitsItems
0.400.400.400.40o.40LEUnit
cost
4545454545LEUnit
price
68.968.968.868.868.8%Profit
453052
9
453052
9
453052
9
453052
9
453052
9
LEcapex
660336660336660336660336660336LEopex
6.87.58.39.22.6%Value
added
0.090.090.090.090.09%Margin
factor

142. IE Department
Financial study
Deprecation
Salvage value
Cash flow
Payback period
Net present value
Internal rate of return

143. IE Department
54321unitItems
100000100000100000100000100000LEBuilding
28500002850000285000028500002850000LEcompressor
5357153571535715357153571LEStorage
/storage
30035713003571300357130035713003571LETotal
deprecation

144. IE Department
54321unitItems
19000001900000190000
0
190000
0
190000
0
LEbuilding
350000350000350000350000350000LECompressor/stor
age
696428696428696428696428696428LESpenser
Salvage value

145. IE Department
Cash flow
-4530529
1577583
945820
98978
9
1164682
3329200
1
0
1 2 3 4 5

146. IE Department
Payback period=4+(1017341/1164682)=4.8
NPV=-45530529+1577583(P/F,i,n)+945820(P/F,I,n)+
989789(P/F,I,n)+1164682(P/F,I,n)+33292001(P/F,I,n)
0=-45530529+1577583/(1+IRR)^1+ 945820/(1+IRR)^2+
989789/(1+IRR)^3+1164682/(1+IRR)^4+33292001/(1+I
RR)^5 =8.5%
IRR=8.5%

147. IE Department
Environmental study
Safety policy
Safety tool
Safety equipment

148. IE Department
Car Gas H.S.E. Policy is based on managing and
conducting its activities in a way that :
‫إداسح‬ ‫ػلى‬ ‫الجٍئخ‬ ‫َدمبٌخ‬ ‫َالغالمخ‬ ‫للصذخ‬ ‫جبط‬ ‫كبس‬ ‫عٍبعخ‬ ‫تؼتمذ‬
‫ػلى‬ ‫ٌؤكذ‬ ‫الزي‬ ُ‫الىذ‬ ‫ػلى‬ ‫أوشطتٍب‬ ‫َمجبششح‬:
-Safety is the responsibility of every member of the
company.
-‫الششكخ‬ ً‫ف‬ ُ‫ػض‬ ‫كل‬ ‫مغئُلٍخ‬ ‫الغالمخ‬ ‫أن‬.
-Positively act to protect the health and safety of its
personnel, and others who may be affected by
these activities, and take the necessary precautions
to prevent adverse effects on the physical
environment in which its activities are conducted
within the law and in compliance with relevant
regulations.
-‫َلُخشٌه‬ ‫لؼبملٍٍب‬ ‫الغالمخ‬ ‫َتُفٍش‬ ‫الجٍئخ‬ ‫دمبٌخ‬ ‫ػلى‬ ً‫إٌجبث‬ ‫ثشكل‬ ‫الؼمل‬
‫لمىغ‬ ‫الالصمخ‬ ‫الُقبئٍخ‬ ‫التذاثٍش‬ ‫كبفخ‬ ‫اتخبر‬ ‫مغ‬ ‫اِوشطخ‬ ‫ثٍزي‬ ‫ٌتأثشَا‬ ‫قذ‬ ‫الزٌه‬
ً‫ب‬‫طجق‬ ‫أوشطتٍب‬ ‫مجبششح‬ ‫الششكخ‬ ‫فٍٍب‬ ‫تتُلى‬ ً‫الت‬ ‫للجٍئخ‬ ‫مىبَئخ‬ ‫تأثٍشاد‬ ‫أي‬
ً‫ل‬ ‫المكملخ‬ ‫َاللُائخ‬ ‫القبوُن‬ ‫ِدكبم‬.
-No part of its business objectives can be carried
out effectively and successfully if not performed
safely.
-‫ػه‬ ‫إال‬ ‫َوجبح‬ ‫ثفبػلٍخ‬ ‫ٌتذقق‬ ‫ال‬ ‫الششكخ‬ ‫أٌذاف‬ ‫مه‬ ‫جضء‬ ‫أي‬ ‫تىفٍز‬ ‫أن‬
‫اَمه‬ ‫اِداء‬ ‫الغالمخ‬ ‫إتجبع‬ ‫طشٌق‬.
-It is an essential duty of line managers and
supervisors to promote the health and safety of all
personnel and to ensure the integration of this
policy into all stages of operation, maintenance of
equipment, systems of work, associated activities
and the analysis of all accident in order to prevent
its recurrence in future.
-‫َعالمخ‬ ‫ثصذخ‬ ‫االستقبء‬ ٌُ ‫َالمششفٍه‬ ‫للمذٌشٌه‬ ً‫اِعبع‬ ‫الُاجت‬ ‫أن‬
‫التشغٍل‬ ‫مشادل‬ ‫جمٍغ‬ ‫داخل‬ ‫الغٍبعخ‬ ‫ٌزي‬ ‫اوذمبج‬ ‫َتأكٍذ‬ ‫الؼبملٍه‬ ‫جمٍغ‬
‫جمٍغ‬ ‫َتذلٍل‬ ‫لٍب‬ ‫المصبدجخ‬ ‫َاِوشطخ‬ ‫الؼمل‬ ‫َأوظمخ‬ ‫المؼذاد‬ ‫َصٍبوخ‬
‫المغتقجل‬ ً‫ف‬ ‫تكشاسٌب‬ ‫لمىغ‬ ‫لٍب‬ ‫تتؼشض‬ ‫قذ‬ ً‫الت‬ ‫الذُادث‬.
Natural Gas vehicles company – Car Gas
‫البيئة‬ ‫وحماية‬ ‫والسالمة‬ ‫الصحة‬ ‫سياسة‬
Health, Safety and Environment Policy
Safety
policy

149. IE Department
EMERGENCY EQUIPMENT
 Fire detection system
 Automatic fire extinguishing system
 Fire water system( fire pumps & hose reels )
 Foam trailer
 Portable fire extinguishers
 Clinic
 Ambulance

150. IE Department

151. IE Department

152. IE Department
‫المتوقع‬ ‫التموين‬ ‫مراكز‬
‫افتتاحها‬
‫الفترة‬‫المبيعات‬ ‫فى‬ ‫المتوقعة‬ ‫الزيادة‬‫المبيعات‬ ‫الى‬ ‫الزيادة‬ ‫نسبة‬
2009
-‫سويف‬ ‫بنى‬
-‫الفيوم‬
-‫بشر‬ ‫سيدى‬ ‫مركزى‬
-‫القطامية‬
-‫المطريه‬
-‫الدين‬ ‫عز‬
‫عام‬ ‫من‬ ‫األول‬ ‫الربع‬ ‫خالل‬
201042,000‫م‬3‫بواقع‬ ‫يوميا‬
11,5‫م‬ ‫مليون‬3
11,5‫م‬ ‫مليون‬3/163,5
‫م‬ ‫مليون‬3
7%
-‫بالسويس‬ ‫مركز‬
-‫باألسماعيلية‬ ‫مركز‬
‫عام‬ ‫من‬ ‫األخير‬ ‫الربع‬ ‫خالل‬
2010
‫كاآلتى‬ ‫بيانتها‬ ‫افتتاحها‬ ‫المتوقع‬ ‫التموين‬ ‫مراكز‬

153. IE Department
‫خالل‬ ‫افتتاحها‬ ‫المتوقع‬ ‫المحطات‬
‫العام‬
‫التشغيل‬ ‫فترة‬‫اليومية‬ ‫المبيعات‬ ‫متوسط‬
(‫م‬3)
‫المتوقعة‬ ‫السنوية‬ ‫الزيادة‬
(‫م‬ ‫مليون‬3)
‫االسماعيلية‬–‫بهنسى‬ ‫أحمد‬‫العام‬ ‫بداية‬ ‫مع‬10,0003,6
‫القطامية‬–‫مقلد‬ ‫عالء‬‫العام‬ ‫بداية‬ ‫مع‬10000,36
‫التعاون‬–‫السويس‬‫العام‬ ‫من‬ ‫الثانى‬ ‫الربع‬10,0002,7
‫المنيا‬‫العام‬ ‫من‬ ‫الثالث‬ ‫الربع‬‫التحويل‬ ‫زيادة‬ ‫مع‬0,3
‫األسكندرية‬(‫الهيئة‬ ‫أتوبيسات‬)‫العام‬ ‫من‬ ‫الثالث‬ ‫الربع‬15,0002,7
‫سوهاج‬‫العام‬ ‫من‬ ‫األخير‬ ‫الربع‬‫التحويل‬ ‫زيادة‬ ‫مع‬0,2
‫المطرية‬‫العام‬ ‫من‬ ‫األخير‬ ‫الربع‬80000,72
‫شبرد‬‫العام‬ ‫من‬ ‫األخير‬ ‫الربع‬80000,72
‫كالتكس‬–‫أكتوبر‬‫العام‬ ‫من‬ ‫األخير‬ ‫الربع‬70000,63
‫المنصورة‬‫العام‬ ‫من‬ ‫األخير‬ ‫الربع‬80000,72
‫عام‬ ‫خالل‬ ‫المتوقعة‬ ‫الزيادة‬ ‫إجمالى‬201112,65

154. IE Department
 Brinckerhoff, P.C. (1994). Mission-based management: Leading your not-for-
profit into the 21st century. Oak Park, IL: Alpine Guild, Inc.
 Bryson, J.M. (1989). Strategic planning for public and non-profit organizations.
San Francisco: Jossey-Bass Publishers.
 Caffarella, R. (1994). Planning programs for adult leaders: A practical guide for
educators, trainers and staff developers. San Francisco: Jossey-Bass Publishers.
 Gomaa, A.H., (2011(, “Strategic Planning & Change Management for Engineers”,
Engineering and Science Services - American University in Cairo.
Reference Books:
Relevant Web Sites
• Strategic Quality Plan:
http://www.co.mecklenburg.nc.us/cobudget/pdf/Introduction/StrategicQualPlan01.pdf
• Strategic Quality Planning Through Quality’s Five Dimensions )by Richard Winder(:
http://www.ldri.com/articles/93stratqualplan.html
• University Club of MSU Website: http://www.universityclubofmsu.org
• What is Strategic Planning?: http://www.allianceonline.org/FAQ/strategic_planning
• http://www.ngvc-eg.com/about%20us.html

155. IE Department