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3.13 RelativeResourceManager;JSESSIONIDVISTA=zj5qKHNPtNL7y0nL9xppVbrfjsjdxQ4ct5tLD2Y2zR2JLGzTy1Ln!87

3.13 RelativeResourceManager;JSESSIONIDVISTA=zj5qKHNPtNL7y0nL9xppVbrfjsjdxQ4ct5tLD2Y2zR2JLGzTy1Ln!87

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Unformatted text preview: 56 CASE 21 MOBIL USM&R FINANCIAL CUSTOMER INTERNAL EXHIBIT 5 USM&R Balanced Scorecard Objectives Statement Strategic Objectives Return on Capital Employed— —Earn a sustained rate of return on capital employed (ROCE) that is consistently, among the best performers in the US downstream industry, but no less than th agreed corporate target ROCE of 12% Cash Flow—Manage operations to generate sufficient cash to cover at least USM&R’ s capital spending, net f1 nancing cost, and pro rata share of the Corporate shareholder dividend Profitability—Continually improve profitability by generating an integrated net margin (cents per gallon) that consistently places us as one of the top two performers among the US downstream industry Lowest Cost—Achieve sustainable competitive advantage by integrating the various portions of the value chai to achieve the lowest fully— —allocated total cost consistent with the value proposition delivered Meet Profitable Growth Targets—Grow the business by 1nc1easing volume faster than the industry average and by identifying and aggressively pursuing profitable fuels and lubes rev enue Opportunities that are consistent with the overall division strategy Continually Delight the Targeted Customer—Identify and fulfill the value propositions for our target con-l sumers (speed, smile, stroke) while maintaining and 1mprovin the “price of entry” items Improve the Profitability of Our—Improve Dealer/Wholesale Marketer profitability by providing consume Dealer/Wholesale Marketers driven services and products,- and by helping develop their business comp tencies Marketing Product, Service and Alternate Profit Center—Develop innovative and mutually profitable (APC) Development services and products . Dealer and Wholesale Marketer Quality—Improve the franchise team to a level equal to b st- class retailers outside the oil industry Manufacturing Lower costs of Manufacturing Faster—Create a competitive advantage by continuing to inc, Than the Competition gross margins and reduce manufacturing expenses fast than the competition Improve Hardware Performance—Optimize the functioning of our refinery assets th1 ough ii proved yields and decreased downtime Safety—Strive to eliminate work- 1"elated mjuries by constantly focusing efforts on improvingth safety of our refinery work environment through continued employee education and pre‘, vention of workplace hazards Supply, Trading, and Logistics Reducing Laid Down Costs—~Continue to lower supply acquisition and transportation costs to re— duce light—products laid- down costs, such that we strive to supply products to our terminals at a cost equal to 01 better than the com petitive market maker Trading Optimization— ——Maximize spot market sales realizations from 1efinery— —finished and unfin ished light products laid down costs, such that we strive to supply p1 OdUCtSf to our terminals at a cost equal to better than the competitive market niak Inventory Management—Optimize light products inventories while maintaining satisfactory GUS" tome1 service levels Improve Health, Safety, and Environmental-Be a good employer and neighbor by demonstrating comnut". _ Performance ment to the safety of all of our facilities and active concern ab_0_ our impact on the community and the environment Quality—~Manage the operations to provide the consumers with quality products supported by quality busiHBSS processes that are timely and performed correctly the first time throughout the value chain CASE 21 MOBIL USMSR 55 ~ ;xhibit 5 Continued Organizational Involvement—Enable the achievement of our vision by promoting an understanding of our or- ’ ganizational strategy and by creating a climate in which our employees are nioti— vated and empowered to strive toward that vision Core Competencies and Skills-——(a) Integrated view—Encourage and facilitate our people to gain a broader un- derstanding of the marketing and refining business from end to end (b) Functional Excellence—Build the level of skills and competencies neces— sary to execute our vision (c) Leadership—Develop the leadership skills required to articulate the vi— sion, promote integrated business thinking and develop our people Access to Strategic Information—Develop the strategic information support required to execute our strategies GROWTH LEARNING & 58 CASE 21 MOBIL USMwa «5' >3: CUSTOMER FINANCIAL INTERNAL LEARNING & GROWTH OBJECTIVE Return on Capital Employed Cash Flow Profitability Lowest Cost Meet Profitable Growth Targets Continually Delight the Targeted Consumer Improve the Profitability of Our _ , "Partners Improve EHS Performance Product, Service and APC Development Lower Costs of Manufacturing Vs Competition Improve Hardware Performance Improve EHS Performance Reducing Laid Down Cost Inventory Management Quality Organization Involvement Core Competencies and Skills Access to Strategic Information MEASURE ROCE (%) Cash Flow Excl. Div. ($MM) Cash Flow Incl. Div; ($MM) P&L ($MM after tax) Net Margin (cents per gallon before tax) Net Margin, Ranking out of 6 Total Operating Expenses (cents per gallon) Volume Growth, Gasoline Retail Sales (%) Volume Growth, Distillate Sales to Trade Volume Growth, Lubes (%) Share of Segment (%) g -% of Road Warriors -% of T1116 Blues -% of Generation F3’s Mystery Shopper (%) Total Gross Profit, Split Safety Incidents (Days Away From Work) Environmental Incidents APC Gross Margin/Store/Month ($M) Refinery ROCE (%) Refinery Expense (cents/UEDC) Refinery Reliability Index (%) Refinery Yield Index (%) Refinery Safety Incidents LDC Vs Best Comp. Supply - Gas (cents per gallon) LDC Vs Best Comp. Supply - Dist. (cents per gallon) Inventory Level (MMBbl) Product Availability Index (%) Quality Index Climate Survey Index Strategic Competency Availability % Strategic Systems Availability FREQUENCY: z :- 39 a: as“ CASE 2i EXHIBIT 7 USM&R Brochure of Strategic Theme "will guide us to our vision and are defined ' above each graph. Ethat will keep us focused on achieving jfyUSM&R’s strategic themes are explained in the graphs and the bulleted text accompanying them. Financially Strong Reward our shareholders by providing a superior long-term return which exceeds that of our peers. ROCE = Income divided by capital employed including all r. ;;.._ allocations. 1993 gDelight the Customer f: nderstand our consumers’ needs better than / in The Mystery Shopper program rates how well each of our stations is delivering the “best buying ": . experience.” 1994 Target yone and offer them products and services hich exceed their expectations. Mystery Shopper 1993 . - 1994 Target Win/Win Relationship Improve Dealer/ Wholesale Marketer profitability through customer-driven products and services and by developing their business competencies. Dealer/Mobil Gross Profit 0 Total profit earned at Mobil outlets and split between our dealers/ whole-sale marketers and Safe & Reliable Mobil. 1993 1994 Target Maintain a leadership position in safety while keeping our refineries fully utilized. USM&R Days Away From Work 1993 1994 Target Competitive Supplier Provide product to our terminals at a cost equal to Manufacturing Reliability Index 1993 1994 Target or better than the competitive market maker. - Our cost to deliver product to the terminal vs. lowest cost provider. Laid-down Cost 1993 1994 Target Good Neighbor MOBIL USMGR Protect the health and safety of our people, the communities in which we work, and the environment we all share. - Composite of: - reportable releases to air and water - reportable spills - community reported incidents. 0n Spec On Time Environmental Index _ - 1993 1994 Target Provide quality products supported by quality business processes that are on time and done right the first time. s Composite of incidents of: - product off spec ~ order shipped late - business process errors - customer complaints - cost of rework. Quality Index 1993 Motivated & Prepared Develop and value teamwork and the ability to think Mobil, act locally. - Survey of employees to measure how people perceive the Mobil workplace environment. 1994 ‘ Target Climate Survey 1993 1994 Target ...
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