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Organizational Control

Group Member
Rana Javed
Danish Raza
Zaheer Tahir
Faizan Zaidi
Khalid Mazhar
1

Controlling - To Ensure Results


The process of
measuring actual
performance,
comparing it against
a standard, and
taking managerial
action to correct
deviation or
inadequate standard
2

Rechargeable Fans

Submitted by:
Syed Faizan Ahmed
Muhammad Azeem

Executive Summary
Our mission is to provide a comfortable domestic environment where the

customer can feel relax and enjoy the comfort of cool in a hot outside whether
We will provide a competitive solution of daily breakdown of electricity
We will offer a variety of choices to the customers in the field of rechargeable

fan at a reasonable prices


Our new model and design is capable to save energy by using energy

conservation techniques
We provide economical relief for customers by reducing electrical

consumption

Market Description
Our target market will be that segment of customers who has less income and

facing troubles by the periodically electrical breakdowns. Peoples of all ages


including male, female and children, students and working class
In summer season electric fan is becoming the most essential requirement for

everyone especially the lower middle class. Millions of people cannot live
without it.
In our country the trend is increasing day by day as more and more people in

ruler areas using this to get comfort


Growth rate of the market is around 10 % annually and is expected to remain

in double digits over the next decade

Product Review
Our rechargeable ceiling fan consist of following features
Energy Saving Motor & Charging indicator
Voltage: AC220V~240V/DC12V/24V,50Hz, Power: 17W-30W
2 piece rechargeable battery built in the fan
100% Copper Brushless Motor
AC/DC automatic conversion
The fan works continuously 6 hours when the power fails
Overcharge and over discharge protection
75% Energy Saving as compare to AC motor
50% Low Noise as compared to AC motor

Product Specification
Type:
Installation:
Material:
Power:
Voltage:
Brand Name:
Motor:
Size:
Speed:
Function:

Air Cooling Fan


Ceiling
Stainless Steel
36 W
220-240 V AC, 12 V DV
Air control
12v Dc Brushless Motor
48 Inch
330rpm
AC/DC Operated

Schematic Diagram

Competitive Review
Approximately 10 manufactures are dealing in electric fans of all types. Three

most popular brands are


1. GFC (General Fan Company)
2. Younas Fan (Yunas Metal works)
3. Royal ( Rafiq Engg. Industries)

They are all local manufactures not dealing in rechargeable fan.


However, Rechargeable fans are available in the market importing from China

which has a lot of disadvantages as;


1. High Price Range (Starting from Rs. 10, 000)
2. No after sales service (Due to imported item)
3. Long rechargeable time with short back up

Distribution Review
Following channels will be used for distribution of rechargeable fans
Wholesalers
Retailers
Direct Sales

SWOT Analysis
Strength
Reasonable prices
Wide variety of models
Continuous supply of power
Reduction in electricity usage

Weakness
New business
No reputation
Start-up cost
Criticism by competitors
No market share

SWOT Analysis
Opportunities
Job opportunities for many unemployed technical personnel
Locally manufacturing provide an opportunity to reduce imports and increase

exports
Market is big and attractive

Threats
Strong and well established competitors
Economic instability
Political instability

Objectives
Financial Objectives
We are aiming for unit sales volume of 500,000 by the end of year 1
Increase sale by 100% by end of year 2
Reach profitability within one year
Marketing Objectives
Develop brand awareness
Decrease in marketing expense
Other Objectives
Satisfy the customers
Develop active pages on social forum to keep in touch with customers

Marketing Strategy
We will highlighting the savings in terms of electricity in the

mind of customer in our advertising through news papers and


commercial add in television

We will offer 10% discount on our first hundred customers


After sales service charges will be off after four months of

warranty expiry

We will have reasonable price but they will not too high or too

low

Positioning
The specific feature of Air control is to provide 6 hrs

continuous power supplies in the absence of electricity for


a healthy and comfortable environment.
Its specific design consumes only 36 Watts and capable to

provide air flow at 330 rpm


Overcharging and undercharging cut offs enhance the

battery life

Product Strategy
Our product will be available for residential as well as

professional use
Our customers include lower, middle and upper class
Our product is energy efficient
Our product is sold with one year warranty
Our product is available in reasonable price as compare to
others

Pricing Strategy
Just to promote our product its starting price is only Rs.

7,000 /- which is less than 30 % less of market price. The


durability of our fan is far extent than an ordinary charging
fan.

Distribution strategy

Marketing communication
strategy

Market research

Marketing organization

Action plans

Budgets

Controls

Control Process-Steps

25

Control Process
Objectives
Objectives

Standard
Standard

Measure
MeasureActual
Actual
Performance
Performance

Compare
CompareActual
ActualPerformance
PerformanceWith
WithStandard
Standard
Is
IsStandard
Standard
Being
BeingObtained
Obtained

Yes
Yes

Do
DoNothing
Nothing

Is
IsVariance
Variance
Acceptable
Acceptable

Yes
Yes

Do
DoNothing
Nothing

Is
IsStandard
Standard
Acceptable
Acceptable

Yes
Yes

Identify
IdentifyCause
Cause
Of
OfVariation
Variation

NO

NO
NO

Revise
Revise
Standard
Standard

Correct
Correct
Performance
Performance

26

Control Systems

A good control system should:


be flexible so managers can respond as needed.
provide accurate information about the
organization.
provide information in a timely manner.

27

Three Types of Control

28

Three Types of Control

Feed forward Controls


ensure that
objectives are clear
proper directions are
established
right resources are
available

focus on conditions
before a work activity
begins

29

Three Types of Control

Concurrent Controls
monitor ongoing operations to make sure they
are being done according to plan
focus on quality of task activities during work
process

30

Three Types of Control

Feedback Controls
Used to provide
information at the
output stage about
customers reactions to
goods and services so
that corrective action
can be taken if
necessary
31

Intro to Shan Foods Pvt. Ltd.


Shan Foods Pvt. Ltd. is a global food company.
Management Staff : Around 300
Non-Management Staff : Around 700
Manufacturing Facilities: Pakistan , UAE and United Kingdom.

Its vision is to become a global food brand offering premium quality


innovative products, which delight its consumers.

Shans product portfolio includes-Plain spices, recipes, pickle &


chutneys, ginger garlic paste, traditional desserts, shoop and basmati
rice.

Shan Foods is a 7 Billion company, using best production processes to


manufacture its products.

Different Production Processes In SFPL


Different processes involved in manufacturing:
Raw material fumigation and cleaning
Raw material Grinding
Spice Mixing
Spice Filling
Packing
We will be discussing Spice filling in polys as it is major area of defects.

Spice Filling Section


67 machines are in operation, filling different SKUs.
Different local, Chinese and Indian make models of machines are
used.

What we did
Based on observations of QC
department we conduct an study to
collect data from different machines
which
shows
In-Process
NonConformances.

Non-Conformance Record in SFS From March 2012 to June 2012


S.
Item Name
No

Mfg. Date

NonConformance

Date

M#

Lot#

13.03.2012

29-R

120505319005

21.02.2012 Rope found

19

130121005805

07.03.2012 Broom sticks found

20

130031003002

12.03.2012 Metal piece found

42

13101010046108

18.03.2012 Weight Variation

1301010081019

25.03.2012 Liner pieces found


15.02.2012 Broom sticks found

Fried Chop

Chicken Masala

Pullao Biryani

Korma

Korma

22.03.2012
28.03.2012

Korma (Paras)

10.04.2012

50

QA ref-4967

Biryani Masala

13-R

1300110117064

Aalu Bukhara

21.04.2012
21.04.2012

42

QA ref-5018

Bombay Biryani

48

1300110117067

10

Bombay Biryani

48

1300110117068

11

Dahi Bara Mix

05.06.2012

23

1303005147019

27.05.2012 Metal piece found

13.06.2012
14.06.2012

1304310077003

11.06.2012 Rope found

13

Vegetable
Masala
Aalu Bukhara

45

QA ref-6819

14

Bombay Biryani

48

1300110117068

31.05.2012 Broom sticks found

15

Haleem Masala

33-L

1302110159006

20.06.2012 Broom sticks found

12

13.03.2012
14.03.2012

31.05.2012
31.05.2012

19.06.2012
24.06.2012

03.04.2012 Weight Variation


12.04.2012 Nut found
Less nitrogen
28.05.2012
Quantity
Less nitrogen
31.05.2012
Quantity

13.06.2012 Metal piece found

Product Defects
Following product defects need solution:

Weight variation
Nitrogen purging percentage out of standard
Metal pieces found
Broom sticks found
Rope found

Standard Values of Product Parameters


Weight variation: For a 50gm SKU, the standard value for weight of

each poly is 52+/-2 grams.


Nitrogen purging percentage: It is set to the standard value of 84-89%

in each poly.
Metal Pieces/Broom Sticks and Rope Pieces Found: These are NC for

company, and samples with these non-conformances rejected by QC.


These defects result in reworking which increase material wastage and

production cost.

Reasons of the Defects


Three major reasons for defects in any process
Man
Machine
Material
Weight variation is related to man, where an operator is not trained enough to

set the speed of machine as per the volume of recipe/product running.

Sometimes they just speed up the machine to quickly finish the production on

their machine.

Nitrogen purging percentage is related to machine, material and man, when

machine faces certain wear outs.

Nitrogen is purged in about 84-89% in each poly to remove oxygen from inside

it which prevent oxidation of product. It Improves the shelf life of product.

Metal Pieces /Broom Sticks/Rope Pieces are related to the human error which

occur during machine cleaning/maintenance.

Formation of Quality Circle

Need to study the defects in detail with preventive measures to be


suggested for continuous improvement.

Quality Circle: are small groups of workers that meet to discuss quality
assurance of a particular project and to communicate their solutions to
these problems to management.

Control Tool

Control Tool: is a specific procedure or technique that presents pertinent


organizational information in a way that helps managers and workers
develop and implement an appropriate control strategy.

Control tools helps managers and workers in pinpointing the organizational


strengths and weaknesses on which a useful control strategy must focus.

Preventions of defects
The following preventive action taken to remove these issues:
To overcome weight variation issues we trained operators-who know the nature of product

and can set machine speed accordingly. Designate machines according to SKUs behavior.

A check weigher installed with these machines by which we are controlling weight

variation. (Completed)

Installation of Nitrogen analyzer on Spice filling machines to monitor/control the

percentage of Nitrogen. (Completed)

Installation of Metal detectors on IBC (Intermediate Bulk Container) filling station to

rectify the issues of metal pieces in the product. (Completed)

To rectify the issues like Broom stick and rope found in the product we have planned to

leave bag filling system and will completely switch on to IBC system for product handling
with in two years. (Long term plan, In-process)

PAKISTAN PETROLEUM LIMTED


Pakistan Petroleum Limited is the pioneer of the natural gas industry in the

country, Pakistan Petroleum Limited (PPL) has been a frontline player in


the energy sector since the mid-1950s. PPL contributes around 24 percent
of the countrys total natural gas supplies.
Vision
To maintain Pakistan Petroleum Limiteds position as the premier producer
of hydrocarbons in the country.
Mission
To sustain long-term growth by pursuing an aggressive hydrocarbons
exploration and production optimization programm in the most efficient
manner through a team of professionals utilizing the latest developments in
technology while ensuring that quality is an integral part of all operations
and maintaining the highest standards of health, safety and environment
protection and addressing community development needs

PAKISTAN PETROLEUM LIMITED


Head Office of PPL is situated in PIDC House buildings, Karachi
Operating Gas Fields

Sui Gas Field, Balochistan


Adhi Field, Punjab
Kandhkot Gas Field, Sindh
Hala Gas Field, Sindh
Mazarani Gas Field, Sindh
Chachar Gas Field, Sindh

Employees

Management Staff: 1135


Non Management Staff: 1850

PAKISTAN PETROLEUM LIMITED


PPL operations are conducted by the following functions.

Exploration
Drilling & Well Engineering
Production
Health Safety & Environment
Finance
Human Resources
Corporate Services
Commercial & Supply Chain
Internal Audit
Information Technology

PAKISTAN PETROLEUM LIMITED

HUMAN RESOURCES DEPARTMENT

General
Manager
Human
Resources
Manager
Human
Resources

Manager
Learning &
Development

Manager
Recruitment

Manager
Industrial
Relations

PAKISTAN PETROLEUM LIMITED


Core Functions of HR department
Recruitment
Compensation & Benefits
Employees Relations
Performance Management
Training & Development

PAKISTAN PETROLEUM LIMITED


Compensation & Benefits

To develop policies and measures to offer competitive compensation


packages to staff for professional satisfaction, career growth and
retention of Human Asset.

To achieve the above objective periodic surveys for market best


practices in terms of salaries and other fringe benefits are carried out,
Performance of employees is monitored through annual appraisal
exercise, annual increments and promotions are awarded to good
performers.

PAKISTAN PETROLEUM LIMITED


Measuring Performance
Increased Voluntary Attrition Rate

There was a high voluntary attrition rate during the year 2011-12,
which badly affected the Companys Operations.

Many positions in different departments got vacant.

Recruitment section could not timely induct new professionals to fill up


the gap due to various governmental rules and regulations.

PAKISTAN PETROLEUM LIMITED


Comparison with the past trends.

Year

Total # of
employees

Total staff
resigned

Technical

Support

New Employer
Abroad

Attrition
Rate

Pakistan

2007-08

1103

21

19

02

12

03

1.9

2008-09

1115

17

17

05

01

1.5

2009-10

1114

25

24

01

05

10

2.2

2010-11

1130

20

16

04

09

07

1.8

2011-12

1125

70

65

05

39

15

6.2

PAKISTAN PETROLEUM LIMITED


Comparison with the past trends
Year

Increment Rate

Performance
Bonus Scheme

Promotions

Attrition
Rate

2007-08

From 16% to 18 %

65% Technical
35% Support

1.9

2008-09

From 16% to 18%

60% Technical
40% Support

1.5

2009-10

From 17% to 19.5 %

Yes

63% Technical
37% Support

2.2

2010-11

From 17% to 23%

Yes

70% Technical
30% Support

1.8

2011-12

From 17% to 23%

Yes

67% Technical
33% Support

6.2

PAKISTAN PETROLEUM LIMITED


Comparisons with the Competitors
Special surveys were conducted to get the information about existing
competitors operating within Pakistan.

Attrition rate of technical staff


Salary Structure.
Perks and Privileges
Allowances
Bonus
Annual Promotion Rate
Employment Terms & Conditions

PAKISTAN PETROLEUM LIMITED


Survey of International Market Situation

New Emerging Companies in E&P Sector

Business Expansion Plans of Existing Companies

Salary Structure being offered by the Companies

Employment Terms & Conditions

PAKISTAN PETROLEUM LIMITED


Out come of the Comparisons
Past internal trends, results of the surveys showed that:

Compensation and career growth rate of staff in PPL is stable as compared to its
competitors. Some multinational Companies are apparently offering
comparatively higher salaries but have no after retirement benefits and
employment is of contractual nature.

Attrition rate has increased only in technical departments.

Mainly Geologist, Drillers and Petroleum Engineers have left the Company.

Majority of leavers got employment opportunities abroad.

Majority of leavers belonged to lower and middle management groups.

PAKISTAN PETROLEUM LIMITED


Out come of the Comparisons
Although PPL remained on top in acquiring exploration blocks in Pakistan during bidding round
in 2010-11, but other multinational companies also had a increased share of exploration blocks
due to Countrys lust for increased energy resources.

By winning additional exploration blocks, other E&P companies in Pakistan have openings for
experienced technical staff.

Extensive Exploration & Drilling activities are in progress in Saudi Arabia, UAE and Iraq due to
the growing energy need in Europe and America. Companies are offering attractive salary
packages to technical staff from all over the world for their operations in remote and rugged areas.

E&P Companies like China Petroleum, Qatar Petroleum and Baker Hughes, USA are expanding
their business operations world over.

PAKISTAN PETROLEUM LIMITED


Remedial Actions
It was agreed upon that external factors are beyond the control of

Companys management. PPL is moving ahead in its steady pace. Due to


the boom in international markets some short term measures are required
to be adopted internally to retain the technical staff.
On the recommendation of HR department a bail out package was

prepared and have been implemented with effective from 01 January


2013. This package is of temporary nature and would remain enforced till
the market position in E&P sector is back to normal.

PAKISTAN PETROLEUM LIMITED


Bail Out Package

Sign-in bonus equivalent to 25% of basic salary will be paid to fresh


inducted technical staff (Geologists, Drillers and Petroleum Engineers)
at the time of signing employment agreement. This amount would be
recovered if the incumbent leaves the Company before completion of
three years service.

Technical Allowance equivalent to 40% of basic salary will be paid to


technical staff in addition to the existing allowances.

Retention Bonus equivalent to 3 basic salaries would be paid to


technical staff, provided they remain in the Company for next three
years.

Foreign training opportunities would be provided to technical staff.

Controlling Process in ICCBS

Intro about International Center of


Chemicals and Biological Sciences
ICCBS is an autonomous body located inside the

University of Karachi
ICCBS is a institution where the research work such as

artificial plantation, medicine testing etc took place


Institution is producing around 40 scientists in a year from

all over the world including Nigeria, Cameron, Saudi


Arabia, Bangladesh, Japan etc

Procurement Process in ICCBS


SPPRA (Sind Public Procurement Regulatory Authority) is an

autonomous body who monitors the procurement process in


govt. organization

In all the government organization procurement is done under

the rules described by SPPRA

Usually procurement is based on 5 categories

Scientific Equipment
Chemicals
Glassware Item
General Item
Stationary Item

Cycle View of Procurement Process


Procurement cycle consist of 12 steps.
1) Purchase requisition from the end user
2) Web based advertisement of quotation
If the amount is less than 1 lac purchase committee directly purchase

the item after receiving three quotations


If the amount is between 1 lac and 10 lac Committee has to advertised
on any website which is best rated for procurement
If the amount is above 10 lac then the committee has to advertised it
on website as well as at newspaper
3) Tender arrive from suppliers
4) Signed by 2/3rd purchase committee member

Cycle View of Procurement Process


5) Comparative statement are made and sent to Director for
evaluation
6) Technical committee is formed and evaluation process is
carried out
7) Purchase committee
8) Sent to Director for approval

Cycle View of Procurement Process


9) Sent to account for sanction
10) Purchase order made from sanction approval
11) Delivery
12) Stock entry

Control Mechanism inGAEL

Introduction
Gul Ahmed Energy Ltd. came into existence

on 20th July 1994 to overcome the crises of


Electricity Power in Karachi with the
production capacity of 136.17 MW using
furnace oil as source
The plant comprises of 9 Wartsilas Internal
Combustion Heavy furnace Oil fired Engines
of 15 MW each with all auxiliaries, 6
Transformers & a complete grid station.

Management Approach
In GAEL, management system is based on

clearly defined hierarchical levels and roles in


order to maintain efficiency and
effectiveness(Bureaucratic Approach).
The decision making process is centralized. All
the critical decisions are taken by top
management.
Concurrent Control system is followed, to take
all the corrective actions timely and keep the
plant ready to meet KESCs Demand.

Plant
Manager

Admin
Manager

Operation
Manager

Maintenance
Manager

Admin,
Security,
Accounts,
House
keeping etc

Operation
Staf
comprises of
four shifts A,
B, C & D

Admin,
Security,
Accounts,
House
keeping etc

Each Shift
consist of 3
Mechanical,
2 Electrical,
2 Utilities &
an Office Boy

MAINTENANCE
MANAGER

MANAGER
MECHANICAL

MANAGER
ELECTRICAL

AM MECHANICAL

AM ELECTRICAL

MECHANICAL
ENGINEER

ELECTRICAL
ENGINEER

Asst ENGINEER
MECHANICAL

Asst ENGINEER
ELECTRICAL

SUPERVISOR
MECHANICAL

SUPERVISOR
ELECTRICAL

ASST SUPR
MECHANICAL

ASST SUPR
EELCTRICAL

MECHANIC

ELECTRICIAN

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