Internship Report on Pak Arab Refinery 2009

 
 
Internship Report
PakArab Fertilizers
Multan







Submitted By:
M. Aamir Shahbaz
MBA (E)-III
2002-2004

Supervised By:
Mrs. Basit Bisharat Tayyab


Department of Administrative Sciences
Quaid-e-Azam University
ISLAMABAD







In The Name Of Allah, the Most
Beneficent, the Most Merciful

Praise to be Allah, Lord of the worlds, who blessed me to accomplish this task.
It is only because of the blessings of Allah that I have been able to complete my internship report.

Finally, I pray to Almighty Allah that I might be able to keep high the name of my country, my university, my parents and my teachers.






















TABLE OF CONTENTS

Particulars Page #
® Introduction 7
o Fertilizers industry 8
o National fertilizers corporation 8
o Pakarab fertilizers (pvt) limited 9
§ Company features 10
§ Plants 10
§ Schedule of project cost 11
§ General information 12
® Management system department 16
o Introduction 17
§ Background 17
§ Hardware specifications 19
§ Systems currently running 21
o Systems running
§ Cash book system 24
§ General ledger system 26
§ Inventory accounting system 29
§ Payroll system 38
® SWOT analysis 44
® Findings & Recommendations 46
® Conclusion 49



















Preface

Now a days, the business environment keep on changing every day. New dimensions of business are coming before us. These dramatic and dynamic changes in business world require the specialties about the all aspects of business of today. These requirements made importance of business knowledge and the business education has become the need of the time. The person who is equipped with the latest knowledge keeps the upper edge over others who do not keep such specialties.

Researches, assignments & term reports are the pivotal teaching techniques of department of Administrative Sciences, MBA program. The objective of using these practical techniques is to develop a practical, analytical, liberal & scientific approach in students towards business, social & economic issues.

This report is being submitted as fulfillment of the requirement of MBA. The main objective is to develop an understanding of actual working of business activities and familiarity to business environment.

I am a lucky in the sense that I got the opportunity to join a company that is amongst the biggest industrial organization in the country. Pakarab Fertilizer Ltd Multan. Is huge and complex business concern, it is simply impossible to comprehend all the procedures and operations being used at PFL in such a short span of time i.e. in six weeks duration.









Acknowledgement

My all thanks to Allah who enabled me to complete my training period successfully. I extend my sincere appreciation and profound gratitude to the respected teacher & director placement of internship Mr. G.S.K. Niazi and also my internship report incharge Ms Basit Bisharat Tayab. for the guidance she has provided me to complete my work.

I am deeply indebted to the management and staff of PAKARAB FERTILIZERS, MULTAN and personnel at different departments for their cooperation who helped me as much as possible during my training period

Special thanks to
Mr Javed Iqbal (MSD)
Mr Manzoor Ahmad (MSD)
Mr Mohammad Irfan (MSD)
Mr Mohd. Arif (MSD)

Finally, my thanks to all those, who in one way or the other, assisted and guided me for the completion of my internship report.














Executive Summary

Pakarab is a living symbol of fraternal relationship between Islamic Republic of Pakistan and Emirates of Abu Dhabi. The company was established as a result of protocol concluded and signed on Nov. 15, 1972 in Abu Dhabi by the two governments to further strengthened the brotherly ties in the fields of Petroleum Industry and natural resources available to the mutual benefit of the two brotherly Muslim countries. Consequently, a memorandum of understanding was concluded between WPIDC and ADNOC on March 1973. WPIDC keep& a fertilizer plant in Multan. So a participation agreement emerged on Nov.01, 1973 to establish a joint venture for the expansion and modernization of that manufacturing plant named as Natural Gas Fertilizer Factory, Multan that time. Thus company was incorporated on Nov.12, 1973 with total authorized capital of Rs.1000 million. Later, NFC assumed the share of WPIDC in the company as a result of reformation of public sector corporations.

Company's role in the economy can not be neglected. It is providing employment to 1380 workers on daily wages bass in single shift, which means the total daily wages employment of 1440 workers from three shifts. It keeps jobs of 151 executives and about 180 workers in office (unionized staff) It has paid Rs.2150 millions in the shape of taxes and duties to the government.
Management keeps supportive atmosphere for working in the company for the employees. Every one can approach to any executive at any time for the solution of its problems. Decisions are mostly made at top level but it is the good behavior of management that they receive low resistance from employees. The governing body of the organization is board of directors. Managing Director is the chief executive officer of the Organization.

Inspite of its huge management and compound & complex production, the Pakarab Fertilizers are working efficiently. It keeps big opportunities for the development in future. All its plants are running in a better way Production is more than the capacity in Urea and Nitrophosphate. CAN plant is producing at 80% or greater production level. Expansion programs, which are under consideration, can easily be implemented. Perfect infrastructure and space is available for the expansion purposes. Due to effective management, profits are rising, size of Balance Sheet is increasing, and Production (output) is also increasing and setting new records.

Overall, the Pakarab Fertilizers Ltd. is sound and rich in terms of finance and real assets i.e. its employees.






















INTRODUCTION





Fertilizer Industry in Pakistan

Pakistan is an agricultural country where about 72% of the total population not only resides in rural areas but also relies for its sustenance on agri-activities. This sector is contributing a lion's share In the national economy. Most of the national economic target is dependent on the performance of our agricultural sector; It contributes 24% to the; total GDP. Cotton, Rice, Sugarcane and Wheat are major crops having economics importance. The fertilizer is an important input, which boosts the agri-production. Unfortunately, it is used three times lower in our country than that of the developed countries in the world. We are not still self sufficient in producing our staple food grain, soil deterioration, nutrient mining. And there is insufficient and inadequate use of fertilizer.

History of Industry
The first fertilizer plant in Pakistan was built in 1958 at Daued khail producing Ammonium Sulphate. First area plant of the country was set up at Multan by WPIDC in 1962 where expansion took place in 1973 and 1979. Then another plant was set up in 1968. These produce 750,000 M.T. of urea jointly. Then DH built its plant in November 1971, with 34500 M.T. capacity, which increase to 445000 MT In 1991. In 1981, NFC's Pak-Saudi fertilizer plant production of 550,000 M.T. of urea and in 1982 Haripur Hazara started producing;96,000 MT Same year, FFC's Machigoth 570,000 ton capacity plant gave production which increased to 1330,000 M.T. in March 1993.


P.I.D.C (Pakistan Industrial Development Corporation)

In 1952, Pakistan Industrial Development Corporation (PIDC) was established which has improved the ratio of investment in public sector.

Establishment of NFC
In order to improve the standards of agriculture in 1973, National Fertilizers Corporation (NFC) was established, financed solely by Government of Pakistan. All the fertilizers manufacturing unit owned by PIDC were handed over to NFC.
The basic aim of the company is:
1. To achieve self-reliance & self-sufficiency in the production & distribution of fertilizers.
2. To arrange for group financing economical development fund.


Head office
Head office of the NFC is located in Lahore. Chairman is its organization chief & four general managers assist him in his organizational responsibilities.


Companies Under Administration
The following companies are under the administrative control of NFC.
Pakarab Fertilizers Mu:tan
NFC lET Multan
Lyallpur Chemical & Fertilizers Faisalabad
Hazara Phosphate Fertilizers Haripur Hazara
Paksaudi Fertilizers Mirpur Mathelo
Pakamerican Fertilizers Daudkhail(Mianwali)
IEFR (institute Of Engineering & Fertilizers Research) Faisalabad


Pakarab Fertilizers (Pvt) Limited, Multan

ESTABLISHMENT
It was 12th June, 1962 when a company named National Gas Fertilizers Factory was established by Pakistan Industrial Development Corporation (PIDC) in Multan, with Ammonia and Nitric Acid plants of 200 & 180 M.Tons per day respectively. Ammonium Nitrate & Urea are the final products having daily production of 330 and 180 M.Tons respectively. The plant was not able to achieve the rated capacity and it was supplemented with an Ammopac unit in 1968, with daily production of 60 M.Tons of Ammonia. This unit was not also able to fulfill the guarantee tests.
So, after detailed investigations and discussions it was decided ultimately to extend the fertilizer units, by using some of the existing facilities in conjunction with a new Ammonia, Nitro-Phosphate (NP) and Calcium Ammonium Nitrate (CAN) plants, so as to achieve the needed target of these fertilizers in the country.

In pursuance of {he above mentioned decisions, a treaty was signed between Pakistan Industrial Development Corporation (now NFC) and ADNOC (Abu Dhabi National Oil Company) on March 7,1973. And an agreement was made on 1st November 1973, to establish a new company named PAKARAB FERTILIZERS (PVT) LTD. in the public sector, as a joint venture for the expansion and modification of the old National Gas Fertilizers.

Pakarab Fertilizers Limited was established as a protocol concluded and signed on the 15th November. 1972 by the Federal Government to further strengthen and develop fraternal ties between Islamic Republic of Pakistan and the State of Abu-Dhabi to cooperate in the fields of Petroleum industries and National resources, for the mutual benefits.





COMPANY FEATURES

The company flow a living symbol of excellent relations between both the brotherly Islamic Countries. was incorporated on 12 November 1973 with total authorized capital of Rs.1000 Million. Pakarab has equity share capital participation of Pakistan through NFC & Abu-Dhabi through ADNOC in the ratio of 52% and 48% respectively, with a paid capital of Rs 743.061 Million. The project was completed at a total cost of RS. 2511.44 Million with a foreign exchange of Rs. 1292.00 Million. It is the largest project of its type in the country.

It is the project producing compound fertilizers such as, Nitro-phosphate, Calcium Ammonium Nitrate & Urea,


PLANTS IN OPERATION

The plants that are working efficiently are:­
Urea Plant Ammonia Plant
Nitro phosphate Plant Nitric Acid Plant
Calcium Ammonium Nitrate Plant Power House

Along with the ferti!izers plants Pakarab has its own Powerhouse., which has the capacity to produce 27 Megga Watts (3 Turbo Generators of 9 MW each) of electricity.











Schedule Of Project Cost (Rs In Million)


LOCAL FOREIGN TOTAL


FIXED INVESTMENT 1053.832 1584.342 2638.174
WORKING CAPITAL 422.000 442.000



FINANCE EQUITY

NATIONAL FERTILIZERS CO. 386.391 38.301 424.692
ABUDHABI NATIONAL OIL CO. 46.529 310.140 356.69
RETAINED EARNINGS 9.889 9.889
FINANCING THROUGH UHDE 37.520 37.520


FOREIGN LOANS

WORLD BANK 607.070 607.070
ASIAN DEVELOPMENT BANK 267.300 267.300
OPEC SPECIAL FUND 108.900 108.900
CITICORP INTERNATIONAL BANK 49.500 49.500
EXCHANGE FLUCTUATION LOCAL
LOANS 185.391 185.391
LOCAL LOANS 1074.544 1047.544


TOTAL LOANS 1517.353 152.821 3080.174

Based on Completion Costs:
Main Project 1983
Urea / Ammonia Rehabilitation 1988






General Information

Registered Name:
Pakarab Fertilizers (Private) Limited.
Status:
A private limited company having only two partners.
Factory Location:
Pakarab Fertilizer, Khanewal Road, Multan.

Brand Name of Products:
KISAN (Urea, Nitrophosphate, Calcium Ammonium Nitrate)
Main Products:
· Calcium Ammonium Nitrate.
· Nitrophosphate
· Urea

Intermediate products:
· Ammonia
· Nitric Acid
· Nitric Acid, Crystals.
Area Factory:
172 Acres
Housing colony:
130 Acres.
Plants Starting on:
Power Plant June 24,1978
Nitric Acid plant Sep 11 1978
Ammonia plant Sep 27,1978
Urea plant Oct01 1978
CAN plant Nov 26,1978
NP plant Jan 12,1979
Capacities:
Ammonia Gas 313500 metric tons
Nitric Acid 441600 metric tons
CAN 450000 metric tons
Urea 92400 metric tons
Raw Material Requirements
Natural Gas 52.5 M.cubic feet (per day)
Rock Phosphate 710 tons (per day)



Storage capacity:
N.P. (unbagged) 30000 TONS
CAN (unbagged) 27000 TONS
Urea (bagged) 12000 tons
CAN (bagged) 5000 tons
Imported Rock 30000 tons

Bagging Facilities:
450Q tons per day.
No. Of employees:
Executives: 151
Office workers: 180
Daily Wages workers: 4140
(According to the requirements)
Auditors:
M/s Riaz Ahmed & Co.
M/s Taseer Had Khalid & Co.
Foreign Sources of Finance:
ADNOC World Bank
Asian Development Bank OPEC Special Fund
City Corporation international Bank

Organizational Set Up

The policy of the company is determined by the two principal corporate shareholders, 6 representing NFC (Pakistan) and 5 nominated by ADNOC (Abu-Dhabi) The board of directors, have appointed a full time chairman and a managing director, who is vested with adequate powers to manage the day to day affairs of the company on sound commercial lines. The Managing Director as Chief Executive, is assisted by divisional heads i.e. General Manager (Mfg.), General Manager (Finance), and General Manager corporate and commercial (Company Secretary), General Manager (Engineering). The Managing Director administers and is responsible for the efficient management and working of Plants.

There are four major Divisions:
Manufacturing Division Internal Audit Division
Finance Division Corporate Affairs & Commercial Division







Under these divisions following departments are currently working

MANUFACTURING DIVISION

· Safe Operation & Environment Department
· Production (Plant and their relative storage areas)
· Materials Department
· Inspection Cell
· Technical & Planning Department
· Personnel & Industrial Relation Department
· Security Department
· General Administration Department
· Procurement Commercial Department

FINANCE DIVISION
· Management system Department
· Education Department
· Finance Department
· Accounts Department
· Internal Audit and commercial divisions are not further divided into sections or departments.

Operation Strategy

Developing an operation strategy begins with a process called “Marketing Analysis” which categorizes the firm's customer and identifies their needs. This analysis occurs in conjunction with an analysis of external environment. Then firm formulates its corporate strategy, which provides the framework of goals for entire organization. Through this strategic planning each functional area is responsible for identifying ways to develop the capabilities it will need to implement functional strategies and achieve corporate goals. This input along with the current status and capability of each area is fed back into corporate strategy planning process to indicate whether corporate strategy should be modified.
Operation strategy specifies how operation can help in implementing corporate strategy. Continuous cross4unctional interaction must occur in implementing operation strategy. Operation strategy does not define the specific processes to be used or the specific resources to organization; rather it identifies the nature of the operation that are required to accomplish the goals of the organization.
There are two types of operating strategy.

Process focused strategy Product focused strategy

Operation strategy in PAKARAB is product focused. It is producing standardized products. In this strategy, equipment and work force are organized around the product. This strategy fits high volume production of products.
Based on the positioning strategy. There are three manufacturing strategies.
Make to stock Make to assemble Make to order

Product focus manufacturing firms follow 'make to stock' strategy in which firms hold items in stock for immediate delivery. This strategy is feasible because most product focus firms produce high volumes of products. Operation strategy for PAKARAB is product focused so based on this strategy “make to stock strategy" is adopted. There is mass production in this organization, so make to stock' is feasible.





































MANAGEMENT SYSTEMS DEPARTMENT














System Department In Pakarab Fertilizers

BACKGROUND

In the beginning, there was no computing facility available in Pakarab; all the activities were manually performed. But in today's world of technology and computer, like every other business organization, the management of Pakarab felt the need of computerization of the manual Systems in order to reduce work load on the employees and get quick and accurate results of the daily transactions,

In 1980, the manual system such as the General Ledger system, Cash Book system and the Inventory system were processed at a sister organization Paksaudi Fertilizers which had data processing department working efficiently. with most of its systems fully computerized, The monthly data was sent to D.P department of Paksaudi Fertilizer, at the end of the each month, where it was processed and the results were handed over to Pakarab management. But this was not fulfilling the needs of the factory, as it was time consuming job and did not provide the quick and effective results.

In 1986, the management of the factory decided to set up its own data processing department and first of all purchased a personal computer of IBM and a printer. Later on management decided to purchase the Mini computer. system 36 and in 1987 PFL 'installed IBM System-36 at Multan which was purchased and installed by IBM Lahore. This was basically for development of Inventory Management System. However the inventory accounting system being developed by IBM Lahore was also converted to S-36 at Multan. As the time elapsed, more systems were converted to system-36 mode.















HEIRARYCHY OF DEPARTMENT


G.M(FINANCE)






ASSISTANT MANAGER







SUPERVISOR






NON EXECUTIVE OPERATOR





HARDWARE SPECIFICATION


SYSTM/36
Processor unit 256KB
Hard disk 200 MB
8”Floppy Disk Drive


System/36 is replaced by AS/400 9404-D10 having following specifications:

8MBMemory
960 MB DASD (Hard Disk)
150 MB Tape Drive
8” Floppy Disk Drive
1 Communication line
Performance 1.9 Rpf
Operating System V2R2MO
Cobol/4OO
PC Support

AS/400 94O4-D10 is replaced by AS/400 9402-400, with specifications given below:

IBM AS/400 9402 Model 400 (Black Box)
RAM 16MB
Tape Drive 2.5GB
Hard Disk 3.94 GB
1 Optical Drive ( CD drive)
1 communication line
Performance 2.5 Rpf
Operating system V3R1 MO
ILE COBOL I 4OO
Client Access / 4OO

AS/400 9402-400 is upgraded to
24 MB Memory
Operating System V3R6MO
Operating System V3R7MO




COST OF UPGRADA TION
Total cost of replacement and upgradation = Rs. 7,44,000/

STAGES OF UPGRADATION:

It took place in two stages in 1995: -
· White box to Black box (Advanced series).
· Black box advanced series to Black box Power PC.

PRINTERS

(P1)
5224-002
LINE PRINTER
Speed 240 LMP (Line per minute)

P (2)
6400-004
LINE MATRIX PRINTER
Speed 475 LMP

P(3)
4214-E02
MULTI FUNCTION PRINTER
Speed I32 CHAR / MIN
Serial 41-44883

HEWLLETE PACKARD
LASER JET 4L
Speed 4 PAGE PER MINUTE

LANGUAGE: COBOL/400

DISPLAY STATIONS (TERMINALS)
There are “10” display stations attached with AS/400 system
Unit types of
· 5291
· 3476
· 3497 of IBM


DISTRIBUTION OF DISPLAY STATIONS
· 5 in M.S.D
· 2 in ACCOUNTS
· 3 in STORES
· 1 in COMMERCIAL
One “personal computer” in use by M.S.D
COMPAQ XE 560 PANTIUM
· 8 MB RAM
· 540 MB HARD DISK
· 1.44" and 1.2" each Disks Drives
· ONE SVGA MONITOR (COMPAQ)

Systems Currently Running

Ø INVENTORY ACCOUNTINC SYSTEM
Ø INVENTORY MANAGEMEN – SYSTEM
Ø GENERAL LEDGER SYSTEM
Ø CASH BOOK SYSTEM
Ø FIXED ASSETS ACCOUNTING SYSTEM
Ø PERSONNEL SYSTEM
Ø MEDICAL SYSTEM
Ø PROVIDENT FUND SYSTEM
Ø PAYROLL SYSTEM
Ø TELEPHONE SYSTEM
Ø MATERIAL PROCUREMENT SYSTEM


System AS / 400 (Application System / 400)

With the increasing data, processing of the data and conversion of manual system to computerized systems, System-36 proved unable to control large database and storage capacity, also seemed to be insufficient. The estimates made to enhance the storage capacity of the system were so much high that it clearly indicated to purchase a better system rather enhancing an old system. So IBM's system AS/400 was purchased which is more powerful system. The decision for installing A51400 was further reinforced by the fact that it was very much close to system-36. Now the IBM introduced a latest model AS / 400 (Black Box) which is more powerful as previous one



IBM Applications system / 400 (Black Box)
IBM AS / 400 system is an advanced family of mini-computer with exceptionally high degree built in function, Relational Database, versatile communication and network capabilities system management, user education and hardware and software supports.
Features Of As / 400

1- OPERATING SYSTEM 400 (OS / 400)
The operating system 400 (OS/400) program includes extensive on-line help, on-line education, and on-line problem analysis

2- ON-LINE TRAINING
The on-line training is provided by AS/400; i.e. tutorial that is segregated into course modules about the system operations and concepts, and takes about 30 to 40 minutes to complete and can be tailored to suit the user's level.

3- CUSTOMER SUPPORT SERVICE
It helps you in dealing with hardware and software problems and supplies technical information and support This support includes:
Resources and configuration support
Network problem management.
Technical support and information access.

4- USER FRIENDLY
The system is designed to be operated entirely from built in menus, without the user having to know complex terms or commands. Experienced users may choose to use the AS / 400 control language, which is made up of commands.

5-APPLICATION SUPPORT FOR SYSTEM / 36
A migration aid is available to help you move many of your system / 36 application to the AS / 400 system. On the AS / 400 system, a system /36 environment provides access to various system/36 functions such as multiple request terminals, screen handling, file access, and operating control language processing.

6- COOPERATIVE PROCESSING
Cooperative processing enables a personal computer, running either on OS / 2 EE of PS/DOS operating system or an AS/400 system to work together accomplish a single task.

7- DATA FILE UTILITY
The data file utility is a too to help you meet some of the programming needs without knowing a programming language, through a series of displays, DFU asks questions about the program use want to create and use the answers to generate that program. It is designed to create programs to enter data into files, update files, inquire into files and list files faster than coding similar program with programming language.


8-SCREEN DESIGN AID (SDA)
SDA helps design menus and display, and creates on-line help information. SDA is available in an ASI4OO, system 36/38-environment form. The menus created present a list of options from which the operator can make a selection. The displays created are those, an operator can work with when using an application program. On-line help can also be created for both display and menus.
9-SOURCE ENTRY UTILITY (SEU)
SEU is an editor that allows creating and changing source members. With SEU following facilities are available:
· Enter I Update to create a source member, add statement to an existing member or change statement in an existing member.
· Copy/move to duplicate or relocate statement in a member.
· Delete to remove statement from member.
· Copy statement from one member to another.
· Check syntax of statements on entire members.
· Find a specific character string and optionally change it.


10- REPORT LAY OUT UTILITY(RLU)
This utility helps to make layout for your reports without going into the complete details of programming.










Cash Book System

Cash is the most valuable asset that a company owns. An internal control 5 especially needed to prevent fraud and theft relating to the cash transactions and to use the asset in the best possible manner. For this purpose most of the organizations maintains a register called a "Cash Book".

In cash book daily transactions are recorded. Now with the increased use and utilities provided by the computer the software replaces these registers and databases are used to maintain records of these transactions. Cashbook system in PFL is designed to maintain the record of cash balances involved in the daily transactions and to prevent any fraud and discrepancy in flow of valuable asset. It is a batch system.

Since PFL is a huge complex so in order to facilitate transactions between management and suppliers of resources different accounts are opened in different banks to meet timely need of cash

Different codes are assigned to different banks and accounts relating to different suppliers

The banks that mainly dealt with are

1ABL 2.HBL 3 NDFC 4 UBL 5 NBP and etc.

DOCUMENT USED
Mainly three vouchers are being used daily:
1.Bank payment voucher
2.Bank receipt voucher
3.Cash receipt book

MAIN MENU
Main menu contains the following options
1. Create daily transaction file
2. Enter data into bank payment vouchers
3. Enter data into bank receipt vouchers
4. Enter data into cash receipt book

CREATE DAILY TRANSACTION FILE

It transfers the data of the previous day to master file and create a new file for the current day transactions. Data is being entered by cash book section at the start of each day into respective voucher and cash receipt book.
DATA BASES
Three databases are used
1 Daily transaction file
2- Bank file with opening and closing balances along with the bank codes.
3-Account file with account no along with respective debit and credit amount of cash.

DAILY PROCEDURES AND THEIR GENERATED REPORTS
Five procedures are run on the daily basis in system 36 mode.

FIRST PROCEDURE
It makes a copy of previous day transaction file on the requested day, then it sort the file on the type of vouchers either payment or receipt voucher, Then it deletes the previous day file and renames the requested day file with the previous day file. Then a program is being called by the procedure that tallies the sorted entries with the records in account and bank files on account and bank codes.

If there is a mismatch found a mismatch report is being printed by the program as 'Mismatch Report of Main and Sub Accounts and Bank Codes".

In case of mismatch, cashbook section is asked to detect and remove error depending upon the nature of error. If an error is of such type that a new account is opened or new bank code is assigned that is present on the transaction file but not on account and bank files, MSD add it into these files. Procedure is run again until there is no mismatch.

SECOND PROCEDURE:
This procedure changes the closing balances of the previous day into the opening balances of the current day in bank file.


THIRD PROCEDURE:
This procedure uses the file created in Procedure first, sort, the file on Vouchers "BPV” create a new file “payments” after making comparison of records in sorted file by the bank code and account code with in account and bank file.

FOURTH PROCEDURE:
This procedure performs the same function as the third one except that{ file is being sorted on "BRV" and "receipts" is' created.

FIFTH PROCEDURE:
It prints the 'daily bank balances" of the company . It can be rerun as desired.

CASH BOOK MONTH END REPORTS:

1- Cash Vouchers total payment summary.
2- Cash Vouchers total receipt summary.
3- Journal cash Voucher.
All the data from these reports is being posted to general ledger at month end.

General Ledger System

This system is maintained by Book keeping section and is currently running in system 36 mode
Two types of Vouchers are being used in the organization;
__ J V Journal Vouchers
__ MCV Main cash Vouchers

J.V is made for plant entry transaction and for adjustment purpose. These adjustments are made against payments and receipts. The section makes all entries and adjustments during the whole month. MCV are made by MSD at the end of month. Journal Vouchers number ranging from (1-7) is directly made by computer. J.V no.1 is for financial report adjustment. J.V no.7 is for cashbook J.V. Different sections are making others Jvs and at the month end these vouchers are brought to book keeping section.
After feeding these vouchers into computers the job of MSD starts.

1)- These vouchers are merged by a procedure in a file.
Two ACCOUNT heads are used
1)-Main head
2)-Sub head

ACCOUNTS CODING
For the efficient running of the system each account has been allotted a unique code. This codification is very systematic. The accounting code is based on 12 digits. The scheme is as follows:


ACCOUNT NUMBER: XXXX-XX-XXX-XXX
(1) (2) (3) (4)
(1) MAJOR HEAD
(2) ACCOUNT NAME
(3) COST CENTER
(4) SUB COST CENTER


EXAMPLE: 5000-01-200-090
5000 => MAJOR HEAD i.e. (PRODUCTION)
01 => MECHANICAL (ACCOUNT NAME)
200 => ENGINEERING (COST CENTER)
90 => UTILITY EAST CODE (SUB COST CENTER)
2)- Then the file is sorted on main and sub account and two separate files are made.

3)- The validity of data in these separate files is checked against the master files
In case of mismatch a report “Mismatch Report” for sub and main account is printed. Then the error is detected and removed.

4)- Data from the transaction files are posted to master files. Sub account data is posted to respective sub master file and similarly main account data is posted to respected main master file. Account no. is key and is used while posting of data.

5)-After posting of data, 'Posted Record Summary" is printed.

6)-From the main ACCOUNT master file following reports are generated at month end.
Ø Trial balance for the month.

7)-Then the data is transferred to P.C at book keeping section
__ VARWRKSF
__ FIXWRKSF

Fixed Asset Accounting System

It is an important system designed to evaluate of net worth of the assets. Fixed assets are important part of organization property. Fixed asset system provides necessary and update information of net value of assets, to management in making timely decisions about the utilization of assets. In Pakarab the assets have value more than RS. 5,000 are categorized as fixed assets. Fixed asset main menu has following options.

MAIN MENU

The main menu for fixed asset accounting system is
1-Enter/update the transaction file
2-Display data files.
3-Transfer data from transaction to master file.
4-Calculation of annual depreciation.
5-Printing reports.



1. ENTER / UPDATE / DELETE TRANSACTION FILES
In this option of menu two files are used one for Multan assets and one for Lahore assets. Data is entered in these transaction files during the whole year and then transferred to the master file for further operation of depreciation calculation, report generation etc. After transferring data from transaction to master files data in transaction files is retained for the back up purpose By using this option data can be added, changed and deleted in the transaction files.

2. DISPLAY DATA FILES
This option enables the user to display the data present in files:
1. Master Data File
2. Transaction File.
In a desired format according to the options available in the sub menu of this option.


3. MAINTAIN DATA FILES
This option is for file maintenance of:
1. Master Data File by transferring data from the transaction to master files and update master files.


4. CALCULATION OF DEPRECIATION
This option enables you for
1-Calculation of annual depreciation~
2-Calculation of depreciation for required months for audit reports.


5.PRINT REPORTS
Following reports are printed by this option..
1.Fixed Asset Register.
2.Retired Asset Report (Assets having net book value equal to one.)
3.Location-wise Summary Report
4.Class-wise Summary Report
5.Class and location wise Summary Report
6. Retired assets man class-wise summary report
7.On request reports


Data about the assets is fed into the computer by fixed asset section. Then at the end of the year calculation of the depreciation is performed at MSD by running a procedure. And desired reports are generated. Depreciation is calculated by multiplying the total value of an asset by a depreciation rate that is determined by fixed asset section with the approval of G.M (Finance).

Inventory Accounting System

This system is run on monthly basis. It is a batch system. During the month the store section in store system file enters the data into a store file. Then at the month end the file is being copied into the inventory account system library hr further operations. The file is then converted into a format acceptable by the account. After converting the tile into the account format different sub files are being generated from this file, meeting different requirements of the system.

After certain procedures tile is maintained enough to generate reports. It is an important system which helps to maintain not only the record of inventory stock but also to evaluate this stock in terms of its value



MAIN MENU OF INVENTORY ACCOUNT

1. Create transaction file.
2. Update / enter issues (Fl 3)
3. Update / enter returns.(F12)
4. Update / enter receipts. (Fl 1)
5. Update reversal I corrections (Fl 8.19)
6. Create master data file.
7. Update master data file.(F16 17)
8. Display master data file.
9. Update inter-store transfer (FIT)
10. Update freight.
11. Display master inquiry file.


CREATE TRANSACTION FILE
This option is used to create a transaction file for inventory account system This data (related to the inventory) is entered separately into this file to meet tile requirements of inventory accounting system. But nowadays this option is not used because data is directly taken from the data being entered into inventory management system and then it is being converted into the format acceptable enough to meet the requirements of the system.

UPDATE / ENTER ISSUES
The inventory account file is then used to further update or enter data regarding the issues or MES. F13 is used to identify the records of issues in the file.



UPDATE / ENTER RETURNS
The inventory account file is their used to further update or enter data regarding the returns or MRS (Material return to store). F12 is used to identify the records of returns in the file.

UPDATE / ENTER RECEIPTS
The inventory account file is then used to further update or enter data regarding the receipts or WRM. Fills used to identify the records of returns in the file These receipts are final receipts after the complete inspection and for the finally 8-ed material. Therefore the rejection entry is not passed against these receipts.


UPDATE REVERSAL CORRECTIONS
This option is used to make adjustments related to entry / updation regarding the receipts returns or issues by making reverse entries or update the existing one.

CREATE MASTER DATA FILE
A master file is created for building relationship on the basis of nomenclature & description of items

UPDATE MASTER DATA FILE
This option is used to update the master data file.

DISPLAY MASTER DATA FILE
This option is used to display master data file to view the data in the file.

UPDATE INTER-STORE TRANSFER.
It is used to update the inter-store transfers based on the transactions being made for the movement of items between stores. Fl 7 is used to identify the records of items in file that are being transferred with in stores.

UPDATE FREIGHT
This option is used to update the freight charges related to the procurement of items.


DISPLAY MASTER INQUIRY FILE.
It is used to display master inquiry file. It is file the is being used to make inquires of items against the P.O (purchase order) and other specifications for validity purpose. This file is based on the old index number.

FILE DESCRIPTION
Following fields are included in the file
Unit code, unit price, cumulative quantity received, cumulative quantity returned, cumulative quantity rejected, cumulative value received, cumulative value returned, cumulative value rejected, last issue date, last receive date.


GENERATED REPORTS
Daily and monthly reports are being generated that help to evaluate the value of inventory

DAILY REPORTS
DMR (DAILY ITEMS MOVEMENT REPORT)

MONTHLY REPORTS
· FINANCIALREPORT
· CONSOLIDATED REPORT
· REVERSAL SUMMARY REPORT
· STORE STOCK VALUE REPORT

Inventory Management System
Inventory management system or store System is an on line system The system is meant to update the inventory of the organization and maintain records properly that help management to take decisions about the availability of items to keep the operations. running smoothly.

MAIN MENU
Main menu contains following options
1.Make file inquires
2.Enter item movement or corrections
3.Manage stocks
4.Maintainfiles
5 Print files
6.Work on orders
7 Run monthly management programs
8.Indenting menu
1.MAKE FILE INQUIRES

This option enables to see the requested data about the transaction (issues & receipts) of particular item. For this purpose a screen is available to select the option, type the index no to see the information. It makes inquiry with in the system to ensure the validity of record.

2. ENTER ITEM MOVEMENTS OR CORRECTIONS

By selecting the option a sub menu opens that enables the user to make entries in respective records. Sub menu includes options.

1.Stores issues (Material Requisition MR)
2.Stores returns ( Material Return MRN)
3.Goods received ( Material Receipt MRR)
4.Goods returned ( Material Rejected)
5.lnter-store Transfer note (ISTN)
6.Consolidation of items
7.Correction in transactions (issue, return & stock-check)
8.Correction in transactions (receipt)
9 Enter stock items indents


Stores issues (Material Requisition MR)
This option enables the user to make entry regarding the issues of items against the respective MR.

Stores returns (Material Return MRN)
This option enables the user to make entry regarding the record of items that are returned to stores against the respective MRN

Goods received (Material Receipt MRR)
This option enables you to make entry of items received from the supplier against the respective MRR.

Good returned (Material rejected)
This option enables the user to make entry regarding the record of items that are rejected during the inspection and returned to suppliers.

Inter-store Transfer note (ISTN)
This option maintains the record of items that are being transferred with in the stores and generate a document (ISIN) showing the item description, value along with specification of item

Consolidation of items
This option enables the user to consolidate those items which are of same nature but slightly different specification & being allocated two different index numbers.
In order to avoid dual index numbers, these items are allocated one index' number. This is called consolidation of items.


Correction in transactions (issue, return & stock-check)
It is used to make corrections in transactions relating to issues, return and stock-check.

Correction in transactions (receipt)
It is used to make corrections in transactions relating to receipts of material.

Enter stock item indents
This option is used to make entries to generate indent for stock items.

3.MANAGE STOCK

By selecting the option sub menu appears having following options:
· Print Stock-Check List
· Print Requisitions & Returns
· Print Goods Received & Rejected
· Enter Stock-Check Data
· Check Stock-Check Results
· Perform Stock Availability Run
· Print Inter Store Transfer Report

Print stock-check list
This option is used as auditing for the physical and computer check of the items movements relating to issues, returns, receipts, rejections and after the completion of audit check prints the stock-check list.

Print requisitions & returns
It is a daily report for the requisition & returns of material within the organization.

Print goods received & rejected
It is a daily report for the goods received & rejected.

Enter stock-check data
Stock of items is being entered in order to check data for the stock in computer record against these entered figures
Check stock-check results
This option enables the user to check the stock against the entered figures and to check results of auditing for verification.


Perform stock availability run
It runs at the month end to show the availability of stock after the transactions occurred in the particular month.

Print inter store transfer notes:
It is a daily report showing the transfer of material between the stores.

4. MAINTAIN FILES

By selecting the option the sub menu appears having the following options:
· Maintain item master file
· Maintain supplier master file
· Maintain order text file
· Maintain block file
· Enter description / stock levels / location

Maintain item master file
It is used to update the item master file that contains the data regarding the item codes (old & new ), specification of item related supplier code & description of item etc.

Maintain supplier master file
It is used to update the supplier master file that contains the data regarding the selected or registered suppliers, codes and other related information about supplier of particular items.

Maintain order text file
It is used t9 update the order text tile that contains the detail of description for the specification of particular order.

Maintain block file
It is used to update the block file. Block file contains the information of the level up to which a stock of particular item is blocked from the issuance.

Enter description / stock levels / locations
This option is used to enter/ update records in relevant files relating to the description stock levels and locations of particular item.


5. PRINT FILES

By selecting the option a sub menu appears having the following options:
· Print item master file
· Print supplier master file
· Print order text file
· Print block file
· Print item specification record
By selecting the options print outs of required files and specification of items are obtained.

6.WORK ON ORDERS

By selecting the option a sub menu appears having following options:
· Print Requirements
· Print Order due
· Maintain Order File
· Generate Stock Item Indents
· Print indents
7. INDENTING MENU

Indent is a document that contains a request for the purchase of an inventory item. The preparation of this document is called indenting.
Two types of indents are generated at Pakarab:
a) Demand item indent
b) Stock item indent

DEMAND ITEM INDENT
This type of indent is generated at the time of demand from the user. The user initiates the request by filling in “purchase requisition request” form.

STOCK ITEM INDENT
This type of indent is generated when the stock on hand becomes equal to the order point. The specifications of the item are entered in the computer then a print program is run which gives the printout of all stock indents.
By selecting the option a sub menu appears having the following options.
· Enter stock item indents ~
· Enter demand item indents
· Maintain indent file
· Inquiry indent per item
· Enter indent & purchase order reference

Enter stock item indents
This option is used to make entry for the preparation of indent for stock items after they reach at their order points. It is run on quarterly basis.

Enter demand item indents
This option is used to make entry for the preparation of indent for the demand item. This option is used on requirement basis.

Enter indent & purchase order reference
This option is used to enter the purchase order number relating to the relevant indent number of particular item.
Forecasting System
System designed in AS / 400 run at the month end used to classify the items on the inventory list on the consumption and current stock. basis into A, B and C categories. Also the system forecast the new order point and order quantity after reviewing the order points of all the items on inventory list, based on the lead time and purchase period.

CLASSIFICATION OF ITEMS ON CONSUMPTION BASIS
A: Slow Moving Items
B: Normal-Moving Items
C: Fast-M6ving Items

MAIN MENU OF FORECASTING SYSTEM
Main menu of the system has following options:
a) Forecasting system programs
b) Forecasting system reports
c) Indent generation program

FORECASTING SYSTEM PROGRAMS
By selecting the option a sub menu appears having the following options:
· Initialize the consumption counter
· Updating the consumption counter
· Classification of items into FMI NMI S1\4' NFI
· More forecasting system programs
· Update XM1OEXI (Item EXTN-10)
· Update XMI2EXT Item EXTN-12)
· Update XM1OEXIB Item EXTN-IOB)
· Classification of items into A, B, Q (on consumption basis)-1
· Classification of items into A, B C (on consumption basis)-2
· Computation / updating of order point and order quantity
· Classification of items into A, B, C (c current stock basis)-1
· Classification of items into A, B, C (on current stock basis)-2

Initialize the consumption counter
Consumption counter is calculated by manipulation of purchased period and lead-time.

Updating the consumption counter
This option is used to update the consumption counter.
Update XM10EXT (Item EXTN-1O), XMI2EXT (Item EXTN-12), XM10EXTB (Item EXTN-10B)
These are files containing data pertaining to the consumption, order point, 'inventory value of item, Relative options are used to update these files.
FORECASTING SYSTEM REPORTS
By selecting the option a sub menu appears having the following options.'
1- Print MIS report
2- Print list of redundant items
3- Print list of items showing out of control parameters
4- Print list of A-Class items (consumption based)
5- Print list of B-Class items (consumption based)
6- Print list of C-Class items (consumption based)
7- Print list of A-Class items (stock based)
8- Print list of B-Class item~ (stock based)
9- Print list of C-Class item~ (stock based)
10- Print list of Fast Moving Items (FMI)
11 - Print list of Normal Moving,, Items (NMI)
12- Print list of Slow Moving Items (SMI)
13- Print list of Non-Forcastable items (NFI)

MIS REPORT
This report shows the inventory value of all the items on list along with consumption during the period (in values) turn over and coverage of items. Coverage shows the time period for which the item is available in stock and need not to be ordered. In this report items are classified as:
· Raw material
· Packing material
· General store items
· Spares
· Chemical & catalyst
· Others

LIST OF REDUNDENT ITEMS
This list shows those items that have been obsolete. These items are assigned a specific code.

List of items showing out of control parameters
This shows the list of those items that have no specific lead time and order point.

List of Fast Moving Items (FMl), Normal Moving Items (NMI), Slow Moving Items (SMI)
These items are classified on issue basis. The list shows the consumption and value of those items.

List of Non-Forcastable items (NFI)
Items that are purchased on demand considered as general items e.g. nut bolts.

Payroll System

The payroll system was the first system designed and computerized in System 36. It is a batch system and run on month end. The main purpose of system is to calculate the salaries of employees. Since employees are categorized into workers and executive so the system support the change in a way of calculating the pay of employees.
The system not only functions for PAKARAB but also the pay for the employee at LAHORE & KARACHI head offices is calculated.

DATA BASES:
Six master files are used

FOR EXECUTIVES:
· PAY33BIF (EMPLOYEE BASIC INFORMATION MASTER FILE)
· PAY33TMF (TRANSACTION MASTER FILE)
· PAY23COD (COSTCENTER, GRADE, RANK & SECTION CODES)

FORWORKERS:
· PAY35BIF (EMPLOYEE BASIC INFORMATION MASTER FILE)
· PAY35TMF (TRANSACTION MASTER FILE)
· PAY25COD (COSTCENTER, G~ADE, RANK & SECTION CODES)
The BIF Master file contains the following information;
ACTION CODE: AID/S
A: For active person.
D: For retired person.
S: For employee whose pay is stopped for particular month due to some reason

EMPLOYEE NUMBER, EMPLOYEE NAME, DESIGNATION4 NATIONAL TAX NO., PENSION CODE, GRADE, BANK CODE, COST CENTER CODE, OFFICE CODE, PEN/GRA T CODE (GRATUITY CODE FOR WORKERS), OVERTIME CODE (FOR WORKERS), PAY STOP CODE, E.O.B.I CODE. RECORD TYPE

The COD MASTER file contains the following information;
TRANSACTION CODE, ACTION CODE, DESCRIPTION, C05E CENTER. DESCRIPTION 1, DECRIPTION~2, IDENTITY CODE (THE DEPARTMENT OR SECTION CODE), RECORD TYPE (IT IS '2' FOR D/S'ACTION CODE AND '1' FOR A'ACTION CODE).

Two transaction files are used;
FOR EXECUTIVES:
PAYl .TRN

FOR WORKERS:
PAY6. IRN
These transaction files update the PAY33TMF & PAY35TMF master files respectively.

The transaction files contains the following information:
Employee no, transaction code, permanent code, permanent amount, temporary code, temporary amount, record type

MAIN MENU
· Update the B.I Master (Executive)
· Update the B.I Master (Workers)
· Update Code Master
These options enable you to update the data in the respective files.

MENU FOR EXECUTIVES
· Update the transaction file
This option enables the user to update the information in the transaction file that respectively updates the transaction master file of executives

MENU FOR WORKERS
· Update the transaction file
· Update overtime
· Update leaves
· Update short leaves
· Update loan
· Update replacement overtime

By selecting the respective options the data in the transaction file is updated. which then updates the transaction master file of workers, Also about the leaves, overtime short leaves(leave for one hour or two or more), loans, replacement overtime(overtime of one worker that has been performed~ by the other person).

PROCEDURE:
a) When the data in the transaction file is entered validity of data is checked against the data in B.I and Code master whether there is any duplicate record against one code.
b) Updation of transaction master file, Audit trial is done in which previous and current opening balances are tallied.
c) Creation of Emolument file that combines the data of the three updated master files and validates it against negative value in pay of any employee record.

GENERATED REPORTS
From the Emolument file following reports are generated at the month end.
· PAYSLIPS
· SUMMARY OF OLDAGE BENEFIT CONTRIBUTION
· INCOME TAX STATEMENT
· BANKADVICE
· PENSION CONTRIBUTION SUMMARY
· SCHEDULES OF ADVANCES & LOANS
· COST CENTER WISE DEDUCTION SUMMARY
· COST CENTER WISE PAYMENT SUMMARY

ON REQUEST REPORT
· PAYSLIPS FOR CUMULATIVE PAY

PAYSLI PS
Pay slip of employee contains the following information:
Ø Basic pay
Ø Index pay (25 % of basic pay)
Ø Technical pay (30 % of basic pay)
Ø Arrears (any due amount that has to be deducted or added from the basic pay or the tech pay or etc).
Ø Deductions that includes
Ø Provident fund contribution (8.75 % of basic pay for executive & 10 % for workers)
Ø Income tax
Ø Car loan
Ø H.B loan (house building loan)
Ø Soft loan (loan for purchase of home appliances)
Ø F.P shop (bill of fair price shop)
Ø Club dues








Provident Fund System

This is a batch system and the main purpose of the system is to take the information about provident fund of the employee from the payroll and post the value against the employee no in the ledger. A person who is a permanent employee of ho company can participate in the provident fund by filling a Performa called “Provident Fund Membership Form”. This form consists of three more forms named A ,B,C by filling the form ‘A’ a permanent employee becomes the member of provident fund system. By filling the form 'B' his provident fund will be deducted from the date specified in the form. The form 'C' shows the nomination of his provident fund in case of his death. In pay slips two fields printed that are:
· P.F Contribution
· P.F Loan
These are the inputs of provident system. The provident fund contribution shows the amount that is deducted from the salary and the provident fund loan shows if employee gets the loan from what he contributes.
For executives the contribution is 8.75 % of basic salary and for workers it is 10 % of basic salary. Executives come under the Lahore trust.
The employee and PFL both contribute in provident fund. If employees contribute Rs.500 in his provident fund then same amount is contributed by the PFL. The company also provides facility of loan to his permanent employee .



There are two types of loan which employee can take:

· Refundable loan
· Non-refundable loan
Refundable loan is equal to the 6 times of the basic salary. The non-refundable loan is 9 to 24 times of basic pay depending upon different conditions. The refundable loan will be deducted from the employee's own contribution while the non-refundable loan will be deducted from both employee's and company S contribution.

MAIN MENU
· Update loan data file (executive)
· Update cash adjustment file
· Display master file (executive)
· Update loan data file (Workers)
· Update cash adjustment file (workers)
· Display master file (Workers)

Update loan data file
This option enables to update the loan file.

Update cash adjustment file
If the repayment of loan by employee is made before the specified time then cash adjustment are made.

Display master file
This option is used to display the master file that contains data such as.
· Opening balance own (the employee's own contribution of P.F)
· Current balance own (the employee's own contribution of P.F)
· Opening balance co (the company balance against the P.F. contribution of employee)
· Current balance co (the company balance against the P.F. contribution Qf employee)
· Product balance own ( cumulative balance)
· Product balance co
· Loan deduction own
· Loan deduction co

Own and company contributions and loan deduction for employee is shown in months for the whole year such as
Opening balance own JANUARY (the employee's own contribution of P.F)
Opening balance own FEBUARY (the employee's own contribution of P.F)
Provident fund increases in case of increment in salary.
Ø For executives salary increases in month of January.
Ø For workers salary increases in month of July.

INVESTMENT OF PRO VIDE&T FUND
The provident fund obtained each month is invested in the approved schemes of government, like saving certificates or defense certificates or deposits in bank as fixed deposit If an employee wants to leave the job he is 9iven 10% of interest on his provident fund plus total provident fund.

GENERATED REPORTS
There are following reports which are produces in this system.
Ø Provident Fund balances
Ø Provident Fund Statement for the Year.
Ø Refundable Loan Statement.
Ø Non-Member List.
Ø Member List.


PROVIDENT FUND BALANCE:
This report shows how much balance amount of provident fund for each employee. The report includes employee #, name, opening balance, current balance, total balance. and contribution of company etc


PROVIDENT FUND STATEMENT:
This report is printed on annual basis, which includes each month employee's and company contribution.
REFUNDABLE LOAN STATEMENT:
This report shows list of those employees who get the refundable loan along with the monthly installments, total amount and remaining amount


NON-MEMBER LIST REPORT:
This report shows the list of those employees who are retired or dead or they have left the organization and are no more contributing in the provident fund.

MEMBER LIST REPORT:
This report shows the list of all employees who are contributing to the provident fund.


















SWOT ANALYSIS




SWOT ANALYSIS

STRENGTHS
Ø Central location of plant
Ø Broad production range
Ø Monopoly in Calcium Ammonium Nitrate & Nitro Phosphate production
Ø Support from Ministry

WEAKNESSES
Ø Dependence on imported feed stock, suppliers and special repair / maintenance facilities
Ø Environmental problem & proximity to urban area
Ø Limitation in achieving NITROPHOSPHATE product quality.
Ø Too much centralization effects; timely decision making.
Ø Unsatisfactory Product quality of urea
Ø No proper sales promotion
Ø Lack of long term planning; decisions are made keeping in view the short-term benefits
Ø Lack of financial budgets for implementation of decisions

OPPORTUNITIES
Ø Improvement in product quality
Ø Expansion of plants to meet the demand more efficiently
Ø Proper sales promotion
Ø Proper placement of warehouses
Ø Quality should be improved gradually with the results and trends in market


THREATS

Ø Low product Quality.
Ø High price of product.
Ø Less Incentive to customer.
Ø Less availability of product.
Ø Poor packaging of product.
Ø Imported fertilizers.













FINDINGS
&
RECOMMENDATIONS






















F Over staffing and unbalanced distribution of employees in departments. Like all the government and semi government institutions Pakarab has also excessive staff than required.Moreover,there is uneven distribution, a place where one man can do the job three people are working there. And some place a job of three persons is taken from a man. This uneven distribution results in de-motivation of the employee and gradually his interest in his work decreases that effects the efficiency. In order to increase the efficiency of worker job is assigned to its caliper to develop his interest in work that increase the output and decrease the overall cost of organization.
F In the company there is as unnecessary emphasis on documentation. In transactions a lengthy procedure of paper work is involved that decrease the efficiency and result in wastage of time. It is also observed that in some cases more than one department maintains the same record.
F There are very few programs for career development of the employees. People working in one section or department from years are still with the same knowledge and style of doing job. There should be proper career planning of employees & improve its efficiency but results in better and improved output for the organization.
F Some employees are working in the same department or section they are appointed. Employees should be transferred within departments so there is job variety that develops their interests, update their information and versatility in their performance.
F Too much centralization in the organization. Managers at the low level are not authorized to make decisions even about minor things. They have to consult top management and give justification on small matters. Involvement of top management and reaching at the final decisions is time consuming and some times result in heavy losses. Also man at low level with responsibility and no decision making power gradually lose interest in his job and de-motivated that effects his performance.
F So there should be delegation of authority up to certain extent that enables manager to take timely decisions at the spot with confidence. When they take decisions they feel themselves more involved and responsible for the job and in turn their efficiency increases.
F Due to high rate of unemployment in the country person join those jobs which are against their interest and not according to their interest and not according to their calipers. So proper analysis should be done, and explore those employee which can do better what they are currently doing in the organization.
F There is no strict means to force employees to take safety measures and follow safety rules. Management should take necessary action in implementing the safety rules in the organization.
F After viewing the marketing analysis we see that product quality is not up to standard because management is more quantity conscious than the quality. While FFC with almost the same plant and machinery giving the standard product.







CONCLUSION

It was a wonderful experience to work in such a big manufacturing concern .It made me realize how important is management as a whole and more specifically in case of manufacturing concern. Moreover during my stay there I found out there computer system to be very complex and yet very helpful to the organization. Marketing is something which is essential for any organization, one place where PakArab is lagging is this department. If they want to become a successful organization they will need to be more professional in this regard. Environmental hazard is another problem which I find to be of a very complex nature. Moreover I hope that if this organization follows the new principles of decentralization and professionalism they would definitely succeed.