Management systems

The Integrated Management System (IMS) is regularly reviewed and updated as our needs change, supporting the delivery of the LOTOS Group’s strategy. Since the 1990s, when we first began to deploy management systems, the well-designed and coherent management and operational processes provide the foundation for our business, while concurrently undergoing some major changes.

Management systems at the LOTOS Group
As at December 31st 2013

Company	Management systems in place
Grupa LOTOS	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards. Implemented requirements of the energy management system in line with the ISO 50001 standard, requirements of AQAP 2110 (Allied Quality Assurance Publication) and requirements of the Internal Control System for trading in strategic materials (consistent with the PN-N-19001 standard).
LOTOS Asfalt	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards. Implemented and certified Site Production Control system.
LOTOS Kolej	Implemented and certified Integrated Management System compliant with ISO 9001, ISO 14001, and PN-N-18001, Railway Transport Security Management System (SMS) compliant with Directive 2004/49/EC and national regulations, Rail Vehicle Maintenance Management System (MMS) compliant with Directive 2004/49/EC and Regulation (EU) 445/2011, quality in welding management system compliant with the EN 15085-2 standard, and system of Maintaining Freight Cars in accordance with the VPI requirements.
LOTOS Lab	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards. Certificate of compliance with PN-EN ISO/IEC 17025:2005 issued by the Polish Centre for Accreditation.
LOTOS Ochrona	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards.
LOTOS Oil	Implemented and certified Integrated Quality Management System compliant with the ISO 9001 standard and AQAP 2110 (Allied Quality Assurance Publication). Implemented requirements of ISO 14001 and PN-N-18001.
LOTOS Petrobaltic	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards. Implemented ISM Code (for compliance with the International Management Code for the Safe Operation of Ships and for Pollution Prevention) and ISPS Code (International Ship and Port Facility Security System).
LOTOS Serwis	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards. Implemented and certified quality in welding management system compliant with the PN-EN ISO 3834-2:2007 standard.
LOTOS Straż	Implemented and certified Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards.
LOTOS Terminale	Implemented Integrated Management System compliant with the ISO 9001, ISO 14001, and PN-N-18001 standards.
LOTOS Paliwa	Implemented and certified Integrated Management System compliant with the ISO 9001 standard. Implemented requirements of ISO 14001 and PN-N-18001.
LOTOS Infrastruktura	The company is in the process of implementing the Integrated Management System.
LOTOS-Air BP Polska	The company is in the process of implementing the Integrated Management System.

Audits of the Integrated Management System provide valuable and objective feedback on the operation of individual areas of the organization.

Between 2011 and 2013, we performed nearly 200 internal, corporate and supplier audits at Grupa LOTOS.

The findings of internal audits provide information on the effectiveness of our system, but also help identify areas which still need improvement, allowing the management to make informed decisions on corrective, preventive or adjusting measures.

Corporate audits carried out at subsidiaries of Grupa LOTOS assess the degree to which they have implemented corporate requirements and standards. In 2013, additional audits were performed to assess the degree of implementation of personal data protection requirements.

Following the audits, in many areas we have undertaken long-term improvement work, requiring the involvement of persons from different organizational units, which proves that we are an organization that can learn from feedback.

We adapt our audits to any changes relevant to the LOTOS Group’s operation and any identified needs.

We also seek to standardise the qualifications of our auditors through the Auditor School initiative, hands-on exercises and exchange of auditors between companies, which helps them gain new experience.

Requirements for business partners

The findings of supplier audits provide information on the degree to which our suppliers meet the quality requirements, as well as occupational safety and environmental protection requirements, which are high on our list of priorities. They offer assurance that all works on the premises of Grupa LOTOS are carried out safely and identify areas which still need improvement.

Realising that compliance with our requirements may be a demanding task for suppliers, we make sure that our audit reports contain detailed and accurate information on all audited areas.

Key changes in process management systems ad structures in 2013

Enterprise Risk Management (ERM)

To ensure secure and effective pursuit of our strategic and operational objectives, we have successfully implemented the enterprise risk management system at the LOTOS Group. Measures taken in 2013 as part of the ERM system were designed to mitigate the identified risks, and to enhance the system itself and its risk management process. (More details)

Process management

In 2013, we started to communicate the findings of process monitoring within the organization via a dedicated portal, which serves as a platform for direct communication of various follow-up measures based on reviews of the Integrated Management System and tasks related to our day-to-day operations. We have also successfully completed one of the projects designed to improve efficiencies along the supply chain.

Project management

In implementing project management at the LOTOS Group in 2013, our objective was to ensure efficient project execution, effective monitoring of project status and deliverables and proper reporting for projects run in accordance with established corporate policies. We also began to deploy an IT tool to support project management throughout the organization.

Energy Management System (EnMS)

In 2013, we successfully put in place the energy management system compliant with ISO 50001, which aims to establish uniform standards for a range of measures designed to improve Grupa LOTOS’ energy efficiency through:

• Systematised and standardised approach to energy management (with respect to all forms of energy) across different operating areas,
• Identification of significant energy aspects of the Company’s operations,
• Documentation of sub-tasks undertaken in areas covered by the EnMS,
• Identification of upgrade and development work required to achieve energy efficiency.

Development until 2015

Faced by the highly complex nature of processes, projects and tasks we need to undertake in the fast-changing environment, we will focus on ensuring efficient communication within the LOTOS Group.

We want to pursue that objective by deploying advanced IT tools, suited to the organization’s needs and friendly for users. As part of our plans, we intend to:

• Enhance the enterprise risk management (ERM) system by developing the ERM portal in response to any needs that may emerge in connection with the growing maturity of the ERM system;
• In the energy management area: satisfy training needs, raise the overall awareness of energy issues among our staff, and improve the auditing qualifications of the LOTOS Group’s employees. 2014 will be the first effective year of our new internal regulations pertaining to the Company’s energy management system and the first year of refining the system based on regularly obtained findings of production process monitoring, audits and needs reported by those involved in energy efficiency processes;
• Maintain and improve the project management system, deploy an IT tool designed to support project management within the LOTOS Group and raise the competences of staff involved in project management and execution;
• Identify on an ongoing basis any processes needing improvement and take relevant actions, and develop process management based on the best global practice. We also plan to launch a new channel for communication with employees to expedite feedback reporting and a tool for visual representation of the summary findings of process monitoring, referenced to risks as well as to strategic and operational objectives;
• Implement an effective and user-friendly IT tool supporting the circulation of documents related to internal regulations.

Over the period 2014-2015, we will implement our Effective and Rising Programme, whose success will be supported by the correctly-designed and effective Integrated Management System.