Benzinaria MOLL+ DENSITATE form.pdf

8/10/2019 Benzinaria MOLL+ DENSITATE form.pdf

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AbstractFuel management and reconciliation arethe most important business processesin fuel retailing, having a criticalimpact on the Companys profitability.The special characteristics of the fuelproducts and the number of relativemeasurements points involved in thesupply and distribution chain canbring significant complexity into theprocess and requires extensive use of

automation.

This article presents how MOL Romanialeveraged information technology andintelligent process design to manageefficiently its fuel inventory. MOLretail business in Romania has beengrowing at a fast pace in the lastyears, through acquisitions and greenfield investments. The increase, bothorganic and non-organic, brought withit the question of how to handle the

fuel reception, inventory stock counts,reports, and other various problems.The increase in number and types of

filling stations, combined with variousother demands of the business and

functional units proved that theexisting semi-manual fuel inventorysystem was unsustainable. The "goodold" Excel spreadsheets had to bereplaced with an integrated solutionable to link the existing electronics(tank gauge, dispenser controller,site system, etc.), while incorporatingindustry standards (ASTM 1250-80,ISO 3170, ISO 3675, etc.), industrybest practices and MOL Romaniasown experience gained in the field.

Rezumat

Eugen Negutu (39)Regional Retail Automation CoordinatorMOL Group, DS, [email protected]

Claudia Pal (40)Head of Inventory & Assets ControllingMOL Romania Finance [email protected]

Arpad Feher (42)IT Application ManagerMOL Romania IT Department

[email protected]

Botond Zoltan Asztalos (37)Retail Quality and Process ManagerMOL Group, DS, [email protected]

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Fuel stock management inMOL Romania Retail


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sszefoglalszemanyag kszletkezels a MOL Ro-mnia Kiskereskedelmben

Az zemanyag kezels (tvtel, t-

rols, elads, nyilvntarts, leltr,elszmoltats) a Kiskereskedelemegyik legfontosabb zleti folyama-ta, amely kritikus hatst gyakorol ajvedelmezsgre. Az zemanyagspecilis jellemzi s a mrsi pon-tok szma, amelyek meghatrozzkaz zemanyaglnc e rszt, jelen-ts bonyolultsgot adhatnak e folya-matnak s az automatizls kiterjedthasznlatt ignyelhetik.

A jelen cikk bemutatja, hogyan hasznlja

fel a MOL Romnia az intelligensfolyamattervezst s az informcistechnolgit annak rdekben, hogymegoldja az zemanyag kezelsvelfelmerl teendket. A MOL RomaniaKiskereskedelem zletg gyors fej-ldse rtelemszeren magval hoz-ta azt a krdst, hogy miknt lehetmegoldani az zemanyag tvtel,nyilvntarts, leltrozs s kln-bz jelentsek problmjt. A tl-tllomsok szmnak nveked-

se s a MOL Romania egysgeineks a kutakon felmerl ignyeksszestse egyrtelmen rtsnkre

adta, hogy integrlt s nagy rszbenautomatizlt folyamatmegolds-ban kell gondolkoznunk. Ezrt ajl bevlt Excel megoldsoktlelrugaszkodva, btran nekivgtunkintegrlni (tvzni) a kutakon mrmeglv egysgeket (elektronikusszintmr, ktoszlop kontroller, BackOffice szmtgp stb.), a meglvszabvnyok (ASTM 1250-80, ISO 3170,ISO 3675 stb.) elrsait, valaminttbb kollega meglv vagy idkzbenszerzett tapasztalatt. Olyan szoftvertalkalmazunk, amely kielgti gy atltllomson felmerl ignyeket,mint a kzpontban dolgoz kollegk(Kiskereskedelem, Knyvelsg,Kontrolling stb.)1kvnalmait.

Motto:Essentially all models are wrong, butsome are useful. George E. P. Box [1]

IntroductionFuel reconciliation is a comparison betweenmetered usage of product recorded throughpumps and usage of stock in tanks storagemeasured through regular tank dipping. Accuraterecords allow an operator to exercise adequate

control over the product passing through thestorage tank, and minimize the risk of loosingproduct by leaks or theft. Undetected leaks dueto negligence of stock control could result inprosecution by environmental authorities.

The special characteristics of the fuel productsand the number of relative measurements pointsinvolved in the supply and distribution chain canbring significant complexity into the process.The complexity of the topic opens opportunitiesfor process automation and integration offuel inventory and forecourt management

components (site system, forecourt controller,ATG Automatic Tank Gauging in tankelectronic level meter). The main processesinvolved are:

BackgroundAll MOL service stations in Romania are equippedwith automatic tank gauging (ATG) and siteinformation management systems. However, the

1ASTM American Society for Testing and MeasurementISO International Standardization Organisation


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fuel stock management and reconciliation wasfully manually done. All inventory records werekept manually in Excel spreadsheets, centralizedand processed in the head office. Fuel stockmanagement functions at the filling stationswere facilitated by various Excel template formsfor recording fuel receptions and other fuel stockmovements. The data collection in the headoffice was facilitated by email and documentshardcopies. The whole process was error-proneand time-consuming, leading to inventory staffbeing unable to reconcile the stock numbers andto detect stock differences and trends in a timelymanner.

As a consequence, the whole process wasaffected by:

points

losses

The need for process automation and reductionof human factor was apparent and could havebrought several benefits:

inventory levels

overstocking

and inventory

through deliveries or temperature variances

TheoreticalfundamentsThe special characteristics of fuel products withimplications on inventory management are highvolatility and variation of density/volume withtemperature. The problem is even more complexas the fuel supply and distribution chain involvesseveral relative measurement points. To make

the various measurements comparable, anequivalent volume at a reference temperature of15 oC is used.

The related knowledge is best described in thePetroleum Measurement Tables edited by theAmerican Society for Testing and Measurement(ASTM) which is recognized worldwide asa reference in the petroleum industry. Theformulas and tables described below present ashort synthesis of the ASTM principles [2-4].

Fuel reception in the filling station is perhapsthe most sensitive process in the fuel inventorymanagement in retail. The basic principle forvalidating a fuel delivery is the comparisonbetween the volume from the delivery note at15 oC and the actual delivered volume at 15 oC.

To convert the available data collected atdischarging at 15 oC volume, the followingformula it is used:

Taking into consideration that the fuel mass canbe considered constant at different density and

implicitly at different temperature, the aboveformula is modified as follows:

or the following formula can be used:

VCF can be calculated based on the followingformulas:

K0, K

1and K

2are product constants, as follows

(Table 1).

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Product API product Densit K0 K

1 K

2

group range (kg/m3)2/oC kg/m3/oC 1/oC Gasoline 53B, 54B 653.5 to 770 346.4228 0.4388 0.0

Diesel 53B, 54B 839 to 1075 186.9696 0.4862 0.0

M Fuel mass [kg]V Fuel volume at ambient temperature [dm3] V15 Fuel volume at 15 oC [dm3]D - Fuel density at ambient temperature [kg/dm3] D15 Fuel density at 15 oC [kg/dm3]t - Ambient fuel temperature[oC] T Fuel base temperature (15 oC)

VCF Volume Correction Factor 15 Constant related to the thermal expansion coefficientt = t T

2

3

Table 1. API constants for volume calculations (source: ASTM Petroleum Management Tables)

3

2


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A fuel management software application hasto integrate a calculation method based on theASTM standard and to use the following inputdata:

Loaded volume at 15 oC and density at 15 oC or Volume and density at a specific loaded

temperature

tanker flow meter) data: Product volume and temperature at discharge

time.

The application should then calculate thedischarged volume converted at 15 oC. In thisway the loaded 15 oC volume (at the depot,terminal) can be compared with the discharged

15 oC volume (at filling station) and thusany differences at the fuel reception can bedetermined.

Another hot issue in the fuel inventorymanagement is the contraction/dilatation of fueldue to the temperature variations (around the 15oC reference temperature), considering that atthe pump level the fuel is metered at ambienttemperature and that the inventory records arealso kept at ambient temperature. This effectis reflected directly in the seasonality of fuel

inventory in the underground tanks of the fillingstation which causes inventory pluses andminuses at stock counting time. The main reasonbehind this effect is the temperature recorded atfuel reception time.

at a lower temperature than the productaverage temperature in the underground tankof the filling station, while the sales will bemade usually at a higher temperature (hencemore volume is sold/metered). That generatespluses in volume at ambient temperature.

A lower turnover of the fuel in winter timewill contribute to the accentuation of thisphenomenon, when the fuel has enoughtime to warm up in the underground tank andthus producing inventory pluses in volume atambient temperature.

received at a higher temperature than theaverage temperature in the filling station tank,therefore the fuel contracts in the tank andthe sales will be made at a lower temperature(hence less volume is sold/metered). That

generates minuses in volume at ambienttemperature. At those stations where insummer time the sales increase significantly,

the phenomenon can be diminished becausethe higher sales generate higher turnover ofthe fuel in the reservoir and that can ensure thesales of fuel at a temperature which is closerto the receiving temperature, so the fuel doesnot have enough time to cool down in theunderground tank.

Other factors are the existing in tank volume,the volume of product delivered, outsidetemperature, etc. Based on the above it canbe concluded that the overall effect of theseasonality on fuel stock level over a full yearperiod is not balanced due to fuel turnovervariations.

The solutionThe basic principle of the fuel managementsystem in MOL Romania was to use theinformation that was available, i.e. to obtainmaximum effects with minimal investment. ATGwas used as the main control tool, which lead tothe following solution blueprint (Figure 1).

The second key goal translated into functionalrequirements was to develop an automatedfuel reception tool where the decisions areto be made by the system and the operatoraction is limited to basic data introduction

(such as delivery documents and manual levelmeasurement) which in turn is double checkedby various formula and/or checking points.

The final solution (GestPOS Oil, InfoTankApplications) developed by Master Computerssrl, Romania covered the following areas of thefuel inventory management:1. In-tank inventory monitoring2. Fuel receiving3. Fuel stock-taking4. Special stock movements

5. Stock reporting.

The sections below will detail the implemented

Fig. 1. Scheme of fuel management in a filling station (BOS-back officesystem, POS-point of sale)


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solution focusing on functionality at each leveldescribed.

IN-TANK INVENTORY MONITORINGIn-tank inventory is an operational report availablefrom the ATG console which gives informationabout the level of product in each tank. Thefollowing data is available and can be stored inthe site system database:

in progress) 1. Volume [l] 2. TC volume4 [l] 3. Ullage5 [l]

4. Height [cm] 5. Water [cm] 6. Temperature [oC] 7. Water volume [l].

Stable ATG inventory readingDuring normal operation the level of fuel in eachtank is changing frequently (due to ongoingsales and deliveries). To have accurate inventorymonitoring, it was a must to aim getting stablereadings every time it was ATG polling. A stablereading is reached when the measured inventory

volume does not change more than a presetvolume during a preset time interval.

A stable report is generated when the volumedoes not change more than a specified stabilityvolume during a specified stability time. The twoparameters depend at least on:

and diameter) and the slope of tank volume.

Other factors, such as temperature, presenceof vapours recovery, the type and location ofvents used on the tank and the type of soil inwhich the tank is placed may also have influenceon the actual stability volume and stability time.Therefore the optimum values for the stabilityparameters can be determined by a trial anderror method. Incorrect values might make astable reading impossible. Note that all ATGreadings referred further in this document impliesa stable reading.

Continuous inventory monitoringTo be able to trace variances between calculatedand measured stock levels, and to monitor their

evolution over time, the system can get regularreadings from the ATG.

The site system continuously monitor the in-tankinventory data, by sending every X minutes anIn-tank inventory report command to the ATG,for all tanks. This data is used for centralizedreporting and analysis in the head office;therefore it is discarded from the site systemdatabase after successful transmission to HOS(Head Office System).

FUEL RECEPTIONFunctional design assumptions:

the discharge of the road tanker

is not allowed, but

reception transaction was fully booked in thesystem (e.g. discharge in tank 1 was finished;while system waits for a stable ATG readingfrom tank 1, the discharge starts in tank 2)

within a given time, the connection is assumedoffline and the operator is informed about thedefault. Further on, a manual procedure will befollowed.

At the beginning of the discharge, the filling

station operator selects the filling station tankwhere the discharge will be made and confirmthe starting of the discharge by pushing the startbutton. These operations simultaneously collectthe ATG actual status and the fuel dispenserssales indexes (Figure 2).

When the discharging is completed, the operatorwill confirm the end of the operation with the

Finalize the discharge button. At that momentthe ATG actual status and the fuel dispenserssales indexes are collected and stored. The

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Fig. 2. The relevant application screen during fuel reception

4TC = Temperature Compensated, i.e. 15 oC equivalent5 Ullage is the amount of room left in the tank. Normally, a tank is not totally full to leave room for the product to expand.


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differences between the two snapshots ensurethe control of fuel received in the filling stationtank and the sold fuel during the discharge.

The major benefit of the continuous monitoringof the fuel level in the station tanks during thedischarge is the early warning given in caseof crossover (a level increase is detected in

another tank than the one selected by operator).The system will raise a visual and audible alerton all terminals in the filling station whenever apossible crossover is detected.

The discharge data captured is written in the site

system database and can be further processedin the Back Office (BO) system fuel managementmodule. The system shows the collectedinformation in different columns for the data atthe beginning of the discharges, data for thefinalization of the discharges and the differencesbetween the two in a separate column (Figure 3).To introduce the discharge in the inventory

books the operator has to register in the systemthe delivery document data and the discharge(road tanker) ticket data. In this section the datarelated to the depot/loading point, road tankerplate number, driver name, etc. will be registered(Fig. 4).

Fig. 3. Discharge information table

Fig. 4. Delivery document and discharge ticket data


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The next step requires the data from the deliverydocument, mass, volume, volume at 15 oC,density, density at 15 oC and temperature. Thecorrectness of the data is checked with theinterrelation formulas described above. This stepensures that the data is accurate (Fig. 5).The delivery ticket data introduction is the last

step in the data gathering, the relevant data isthe ambient volume and ambient temperature ofthe discharged fuel.

The system calculates automatically thedischarged volume at 15oC using ASTM rules.

After this calculation the system allows theoperator to allocate captured discharges torecorded delivery documents (Fig. 6).

The decision related to the volume that shallbe booked is based on the value of the P(percentage) factor calculated as follows:

The value for P% threshold shall be set upaccording to the legal and/or internal provisions.

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Fig. 5. Checking of data correctness

Fig. 6. Allocation of captured discharges


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After these steps are finished, the systemautomatically prints out the Goods Receipt Note(GRN), which contains all the captured data.

FUEL STOCK-TAKINGStock-taking is the operation that reconcilesbooked stock levels and actual measured stocklevels. The difference is booked as an inventoryadjustment and thus the actual stock becomesthe new booked stock level.

This function is restricted in the application andcan be accessed only by authorized persons.

For legal and regulatory compliance, the stock-taking will always start after the day closingprocess, while the activity in the forecourt isstopped. The recorded date/time of the inventory

transaction is the date/time of the day closing.

In order to complete the stock-taking andrespectively to register the results in the BackOffice system, some mandatory steps must befollowed, as described below.

Step 1 Stock counting listsThe system provides two Stock counting lists,which can be printed out before starting the fuelstock-taking procedure.

Counting list 1: Manual Stock Measurement -this list will be used to write down product levelmeasured with the dipstick and the temperatureand density of the product (from a sample takenfrom each tank).

Counting List 2: Nozzle Counters - this list willbe used to write down the mechanical nozzlecounters at each pump.

The fuel sales can be resumed as soon asthe stock-taking operator had performed thefollowing tasks:

tank with the dipstick (fill in Counting List 1)

the product in each tank

List 2).

Step 2 Initiate processTo initiate the process, the stock-taking operatoractivates the fuel stock-taking function on theback office computer. The system performs thefollowing tasks:

there were any fuel transactions (either paidor payable) after last day closing, then it will

prompt operator to close the day beforestarting the inventory function

tanks. The stable reading is saved togetherwith the date/time of the site system (ifATG connection is broken the operator isinformed accordingly and the stock-takingreport will not contain ATG data)

restarted.

Step 3 Manual data entry: dipsticklevels, product temperature and density

operator enters data from the Counting List1 (fuel level height per each tank, measuredwith the dipstick and optionally, producttemperature and density).

to l) is done automatically by the systemand displayed on screen. The data entry canbe stopped and restarted at any moment,as long as the inventory report was notbooked.

operator can choose to create the stock-taking and reconciliation report. When thisis complete the new levels, as measuredwith the dipstick must be booked. Thiswill be done through a positive or negative

adjustment. The system will prompt theoperator to confirm the booking.

about the stock-taking/reconciliation.

the reconciliation is booked and the fuelstock reconciliation report is printed.

Step 4 Manual data entry: nozzlecountersSystem provides a form where the operatorenters data from the Counting List 2 (nozzlecounters).

The data entry can be stopped and restarted atany moment, as long as the inventory report wasnot booked. When this is completed, the data issaved and the nozzle reconciliation reportcan be printed.

HANDLING OF SPECIAL STOCKMOVEMENTSInternal transferAn internal transfer refers to moving stocksbetween two tanks within one station. This

operation can be done in two ways:

6V15R Calculated 15oC volume at the reception V15D Volume at 15

oC mentioned in the delivery document


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and then discharging the fuel from the roadtanker to tank 2.

The second case is similar to an external transfer(between two stations) and the system shouldfollow the external transfer procedure describedbelow in this document.

External transferExternal transfer refers to moving stocks fromone station to an external destination (e.g.another station or other location). The fuel isextracted from the stations tank into a roadtanker, transported to the destination station/location and discharged.

Tank cleaningFor tank cleaning operations the whole volume

of fuel must be extracted from the tank (includingthe dead stock) and transferred to an outsidelocation for proper disposal.

The base for stock movement booking is thereport created by the maintenance company,which indicates the actual volume of fuel stockextracted (V

slam). For this procedure the automatic

measurement with ATG is not relevant, becausethe process involves handling of fuel at tanklevels which are not measurable by the tankprobes. For control purposes, the system will

take a snapshot of the tanks only before startingthe cleaning/emptying process.

Fuel sales are not allowed during special stockmovements.

STOCK REPORTINGThe reporting functionalities were built with theaim to ensure adequate tools for monitoringthe fuel stocks and inventory differences, to beable to evaluate the performance of the mainelements involved in the fuel supply chain and toforecast trends.

The reports were implemented in the backoffice and head office systems using standardtechnologies such as Crystal Reports andMicrosoft SQL Server reporting services.

According to content, purpose and audience,the reports can be grouped into three categories(Table 2).

Level 1: Filling stations

This category of reports provides stationmanagers continuous control over fuel stocklevels and fuel stock movements, and outlinesthe evolution of the inventory differences.

Fuel inventory reportThis is a detailed daily inventory report whichshows all stock movements for a selectedproduct between two reference points in timeand has the following content:

each day closing, station staff measureswith the dipstick the fuel stock level in each

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Level Purpose Content Audience

points, transport

companies, drivers,

road tankers

discharges, inventory

reconciliations, evaluation of

fuel inventory results and predicting trends

Table 2. Stock report categories


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tank and inputs the data in the back officesystem

is measured and registered automaticallyin GestPOS Oil (GestPOS Oil - the nameof the developed solution) at every shiftclosing

stock and measured stock (measured withdipstick and ATG).

Benefits:The report can be extracted at anymoment, for any period of time, per any productand/or tank and hence the station manager canhave an exhaustive overview over thefuel inventoryand apply prompt controls.

The system provides a chronological list of allfuel stock movements recorded in the selectedperiod, and reconciles the computed stockwith the actual stock at day and period level.Specifically, the report shows stock differences(booked vs. actual level) realized:

taking recorded in the system.

Daily fuel inventory reconciliationA fuel inventory reconciliation section wasincluded in the existing back office day closing

report. This report shows initial and finalstock levels (computed and actual) and all

fuel movements (in-out) for each product andtank and calculates the differences betweencomputed and actual stock.Benefits: The station manager is informeddaily about the evolution of the fuel inventoryresults and can identify and report promptly anymalfunction or inconsistency observed.

Daily nozzle reconciliationAt each day closing, station staff reads themechanical nozzle counters from eachdispenser and inputs the data in the back officesystem. The daily nozzle reconciliation report

outlines the differences between the registeredvolume sold (at POS) and the metered salesaccording to dispenser electronic and mechanicalcounters (Figure 7).Benefits:The daily nozzle reconciliation outlinesthe differences between the registered volumesold (at POS) and the metered sales accordingto dispenser electronic and mechanical counters.The station manager can identify quickly thediscrepancies, investigate and report to headoffice.

Level 2: Retail operationsThis category of reports aims to provide in atimely manner the relevant information to Retail

Fig. 7. Daily nozzle reconciliation


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and Logistics executive managers. The reportsallow management to investigate and identify thediscrepancies in fuel inventory and to take quickand efficient actions for identifying and eliminatingthe causes. These reports are automatically sentvia email to a predefined list of recipients, in theform of alerts.

Fuel discharge difference alertsThis can be viewed as a database containing allproblematic fuel discharges and related capturedparameters and measurements. Alerts aretriggered for all discharges where the differencebetween the quantities loaded in the depot andthe quantity discharged in the filling station tankexceeds a certain predefined threshold. Toprovide a better view, the report is split into twoparts: discharges with flow meter and discharges

without flow meter.Benefits: The report allows management byexception to focus on those cases were higherdischarge differences are recorded. The causesof the differences are analyzed by the relevantpersonnel and the necessary measures aretaken.

All discharges without flow meter are individuallyverified by the secondary distribution manager.

Filling station discharge alerts ranking

This report contains a ranking of fillingstations based on the number of dischargealerts recorded in a period of time (usual periodsused are monthly and year to date), as defined inthe previous report (Figure 8).Benefits: The report provides an overviewof the stations where there were identifieddischarge differences above the thresholds,ranked on the number of events, as thesedifferences will have a direct influence on the

inventory differences recorded in the fillingstations. Management can focus immediatelyon the top ranked stations to take operationalmeasures at filling station level, and achievea high efficiency impact on the fuel inventoryresults.

Summary of alerts vs. loading points, transportcompanies, driversThe number of recorded discharge alerts canbe ranked as well considering the supply anddistribution chain elements, such as loadingpoint, transport company and even the driver.The ranking is based on the number of dischargealerts recorded as described in the previousreports (Figures 9,10).

Benefits: The reports allow the evaluation ofthe main actors participating in the fuel supplyand distribution chain and provide an overviewof the elementswhere there were dischargedifferences, these having a potential director indirect influence on inventory differencesrecorded in the filling stations.

Thus, management can focus on the top ranked

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Fig. 8. Filling station discharge alert ranking

Fig. 9. Summary of alerts vs. transporters


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elements (depots, transporters, and drivers) to takeoperational measures and achieve a high efficiencyimpact on the fuel inventory results. In case ofmajor differences referenced by a certain loadingpoint, a deeper analysis is conducted onsite, suchas checking the accuracy of density and volumemeasurement. Similarly, secondary distributionmanagers can analyze in detail the performance ofthe contracted transport companies, drilling downto each road tanker and/or driver, and preparecustom action plans.

Product density alertsThe report contains a ranking of the loading points(depots) based on the number of product density(15 0C equivalent) differences alerts recorded (Fig.11). One alert is triggered whenever the differencebetween the loading density and the dischargedensity at 15 0C exceeds a predefined threshold.The unloading density is determined based on the

manual measurements made by the filling stationoperator according to the fuel discharge procedure.Benefits: The report offers an overviewregarding the accuracy of the loadingproduct density recorded in the deliverydocuments. This process is very important,taking into consideration that the volume andthe density are inversely proportional. In otherwords, it can be calculated if more or lessfuel was received in the filling station tank ascompared to the invoiced quantity.

Daily fuel differences alertThis HOS report is predefined as a daily fueldifferences alert report and it is generatedon a daily basis. It lists all stations/tanks wheredifferences between computed/booked stockand measured stock (ATG and dipstick) wereidentified during the previous day; differencesexceeding the preset threshold.Benefits:This report, offer a strong controlover the fuel differencesas it can identifyquickly and in time eventual technical problemsthat occurred in the filling station and theappearance of the high fuel differences. Therelevant persons from Retail are informed dailyabout the fuel differences generated in theprevious day.

Level 3 - Head office

The aim of this category of reports is to providetools for the performance evaluation of the mainelements involved in the fuel supply and distributionchain and to forecast fuel inventory trends.

Retail consolidated fuel dischargeevaluation reportThe report lists fuel deliveries made in all retailfilling stations within a given period and showsthe differences between onsite measurementsand delivery note data. Practically it provides aconsolidation of all fuel discharges, containing all

relevant data like: point, drivers, tank cars)

temperature, height and volume measuredwith dipstick before and after discharges

discharges

volume and percentages).

Fig. 10. Summary of alerts vs. drivers

Fig. 11. Product density alerts


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Benefits:The report provides a comprehensiveand compact database of all the data related toeach individual fuel discharge measurementwhich can be used by inventory controlling stafffor further analysis.

Retail Consolidated Fuel Inventory Report

This report extracted from HOS contains theinventory differences of all filling stations, for agiven period. The differences are determinedaccording to dipstick and ATG measurements.Benefits: Based on this report inventorycontrolling staff can monitor continuously theevolution of the inventory differences and canestablish trends and forecast the evolution ofthe future results.

Retail - nozzle reconciliation report

The report compares the manually measurednozzle counters (mechanical counters) withthe automatic measurements (electronic nozzlecounters saved at every day closing) andwith the registered sales. The report can beextracted for any station for a given period oftime.Benefits: The report offers a strong controltool and allows inventory controllers to identifydiscrepancies between the registered volumesold (at POS) and the metered sales accordingto dispenser electronic and mechanical

counters. The causes are then identified andanalyzed to provide the necessary remediationactions.

ConclusionsThe implementation of the fuel managementmodule in the retail information system of MOLRomania Petroleum Products brought significantbenefits in all major operational areas of the retailbusiness, as well in the supply chain. The majorbenefits are listed below:

Operational

track inventory differences (calculated vs.actual stock level) on a daily basis and/orcumulated over any given period

dispenser counters daily and over any givenperiod

ATG at shift and day closing, and before andafter fuel discharge

exceeding the preset threshold.

Quality

continuous monitoring of in-tank inventorylevels during tank replenishment.

Efficiency

(product density, temperature compensatedvolume, weight, etc.)

inventory documents

documents

documents from an electronic archive.

Control

documents to the head office in electronicformat, the relevant documents are availablefor accounting, logistics, area managers andInventory Controlling

forecasted Retail fuel inventory results,reconciliation with SAP inventory thesystem offers a consolidated inventoryreport and computing of differences beforeand after applying the allowed (technological)losses with breakdown per site and product;the report is available for any given period,

hence the stock reconciliation with SAPbooks can be realized very frequently

reports to evaluate the performance of themain elements involved in the fuel supplychain and to forecast trends:

forecasted Retail fuel inventory results,reconciliation with SAP inventory

differences between discharged andbooked quantities

the secondary distribution performance.

The rules of the fuel stock management systemare fixed in internal documents [5-10].

FutureopportunitiesBy implementing the fuel stock managementsystem, it was created a solid base for furtherdevelopments, such as:

Integration with loading points: thiscan further reduce human input by sending

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electronically the delivery documents to thefilling stations system

Integration with the ERP (enterpriseresource planning): automatic postingof goods receipt notes in SAP system ispossible, thus increasing the operationalefficiency of the registration of goods received

Validation of nozzle calibrations: acompact database of the calibration settingparameters of the pump nozzles can becreated to assure a more accurate evaluationof inventory differences, by calculating theinfluence coming from nozzles calibration.

These developments could further increaseoperational efficiency and will allow optimizationof business processes.

References[1] Motto: Essentially all models are wrong,but some are useful; Box, George E. P.;Norman R. Draper. Empirical Model-Buildingand Response Surfaces. Wiley. pp. 688, p.424. ISBN 0471810339 (1987)

[2] Petroleum Measurement Tables: Table53B Generalized Products, Correctionof Observed Density to Density at 15oC,Prepared Jointly by American Society forTesting and Materials American Petroleum

Institute The Institute of Petroleum, 2007,ISBN 0-89364-030-1[3] Petroleum Measurement Tables: Table 54B

Generalized Products, Correction of Volumeto 15 C Against Density at 15oC, PreparedJointly by American Society for Testing andMaterials American Petroleum Institute The Institute of Petroleum, 2007, ISBN0-89364-030-1

[4] Petroleum Measurement Tables: Table 54C Volume Correction Factors for Individual andSpecial Applications; Volume Correctionsto 15oC Against Thermal Expansion

Coefficients at 15oC, Prepared Jointly byAmerican Society for Testing and Materials American Petroleum Institute The Instituteof Petroleum, 2008, ISBN 0-89364-032-8

[5] Eugen Negutu: Wet Stock Management andReconciliation with POS-ATG connection Business Functional RequirementsSpecification, June 2008, MOL Romania PPInternal document

[6] Eugen Negutu Claudia Pal: Info Tank Users Manual, March 2009, MOL RomaniaPP Internal document

[7] Eugen Negutu Claudia Pal: GestPOS Oil Users Manual, March 2009, MOL RomaniaPP Internal document

[8] RET_3_R10_MOLRO 2_Fuel (Gasoline &Diesel) discharging and reception at MOLRomania filling stations, MOL Romania PPInternal document

[9] RET_3_R10_MOLRO 3_Liquified PetroleumGas (LPG) discharging and reception at MOLRomania filling stations, MOL Romania PPInternal document

[10] RET_3_R10_MOLRO 5_Handling of fuelspecial movements at MOL Romaniafilling stations, MOL Romania PP Internaldocument

Keywords: fuel, report, evidence, fuelmanagement, wet stock-taking, inventory,reception, transfer, monitoring.

Reviewed by: Bla Csorba

Eugen Negutuis a licensed engineer specialized in IndustrialRobotics and Automated ManufacturingSystems at the Politehnica University ofBucharest and holds a master degreefrom the Bucharest Academy of EconomicStudies. He worked in several IT and retailautomation positions in Shell before joiningMOL Group in 2006 as Regional Retail ITCoordinator. In his current position he hasgroup level responsibilities in retail IT strategic

management, business process engineeringand project management.

Claudia Pal graduated Dimitrie CantemirUniversity of Cluj-Napoca, was specializedin Business & Commerce Management,actually she finalizes a Master degree inBusiness Communication. She worked inseveral companies as Chief Accountant;Internal Financial Controller. She joinedMOL Romania in 2003 as Head of Inventoryand Asset Controlling. She contributes atthe development of different monitoring and

reporting methods at company and fillingstations level.

rpd Fehr graduated from TechnicalUniversity of Cluj-Napoca, was specialized insoftware engineering in 1993. He held positions invarious areas of information technology, includingprogramming, database management, architect,team leader. He joined MOL Romania in 2003,as IT project manager. Since 2005, he has beenthe Application Manager of the company. Hisresponsibility is to coordinate activities related

to software development, maintenance andoperation, mainly of the local Retail InformationSystem.


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Botond Asztalos graduated fromTechnical University of Cluj-Napoca in2002, was specialized in Electronics andTelecommunication. He joined MOL Romaniain 2002, as Retail Maintenance Engineerand worked in various positions as RegionalTechnical Manager, HSE Manager and wasinvolved in various projects mainly related toorganisational development, knowledge sharingand new domain development/implementation.

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