e 2015Pakistan Tobacco Company Akora Khattak Factory
Department of Management SciencesCOMSATS Institute of
Information Technology, Attock[ ]
Pakistan Tobacco Company,Akora Khattak Factory
ACKNOWLEDGEMENT
At the very outset, I am grateful to Almighty Allah for giving
me the opportunity, strength and ability to accomplish the
internship program. Firstly, I would like to express my thanks to
my internship line manager Mr. Kamil Shahzad (HR Manager) for his
daily guidance and his outstanding support regarding my
project.Secondly, I would like to show my gratitude to Mian Hameed
(HR Senior manager) who willingly took responsibility and gave me a
lot of time and support on each and every step.I am grateful to HR
Department and Logistic Department for helping me to get the
information. Last but not the least would like to thank my friends,
family members and all those people who helped me for the
completion and deeper understanding of the project .Working on this
project was an enlightening experience for me.
Authors NoteBeing a part of Pakistan Tobacco Company (PTC) (at
least for few weeks), a well reputed multinational organization is
a great privilege for me. These 6 weeks internship not only gave me
technical knowledge but also helped me to improve both
professionally & personallyThis report gives full details of
what I have learnt during my internship in HR department (AKF). is
a big factory and is a right place to learn technical and
practically both.In PTC an internee is assigned a project which
he/she has to complete with in assigned time, so I was also
assigned a project that was Managing Performance at PTC, :
Performance AppraisalAs the technology is growing the man is
becoming a human machine. This means he has to perform a lot of
tasks within short time, similar is case for engineers they have to
design, implement, run and maintain the machines which require a
lot of time. To increase the efficiency they create some standards
and according to those standards they manage their work and
machines. They have a record of that standardized data which is
always with them for any assistance. This data is about different
steps of this process e.g. from feeding to delivery end all the
steps are included in this.I studied, analyzed and presented the
data of Yield Reconciliation and all the steps of Yield
Reconciliation which is followed and not followed in GLT and
highlighted the Gaps and gave Recommendations. My presentation is
given in appendix 1. You can refer to it for the summary of
internship. T presented this to the management.
FORWARDThe purpose of this report is to give an overview of what
I have done and learned, during period of my internship in PTC
(AKF). This report primarily focuses on the Managing Performance at
PTC, project assigned to me. It also gives overview of PTC.
PREFACE OF THE REPORT
Internship program is a prerequisite for all universities
bachelors degree. It is an opportunity for the students to know
about the practical environment of the real business world. I had
the opportunity to work as interns at HR Department of Pakistan
Tobacco Company, Akora Khattak Factory. Managing Performance at
PTC,.The findings from this project will help factory management in
further decision making, to improve the productivity.
Table of ContentsACKNOWLEDGEMENT2PREFACE OF THE REPORT5Chapter #
18PAKISTAN TOBACCO COMPANY81.1 INTODUCTION TO THE ORGANIZATION81.2
PAKISTAN TOBACCO COMPANY91.3 History of Pakistan Tobacco
Company91.4 Vision, Mission, and strategies10Strategic objectives
of Pakistan Tobacco Company111.5 Product Line of Pakistan Tobacco
Company151.5.1 Upper slap161.5.2 Middle Slap161.5.3 Lower Slap171.6
MAIN BRANDS171.7 SWOT Analysis191.7.1 Strengths191.7.2
Weaknesses191.7.3 Opportunities191.7.4 Threats20Chapter # 221HRM
DEPARTMENT AT PTC212.1 HR Mission Statements at PTC:212.2 Human
Resource Strategies212.3 Different HR Practices at PTC:222. 3.1
Recruitment and Selection at PTC:222.3.2 Internal
Recruitment:222.3.3 External Recruitment:232.4 Hierarchy of HR
Department27Chapter # 328OVERVIEW OF AKORA KHATTAK FACTORY / THE
SUPPLY CHAIN FUNCTION283.1 A complete overview of PTC Supply Chain
Function283.2 LEAF / LEAF Agronomy Department283.3 Green Leaf
Threshing Department (GLT):293.3.1 Introduction:293.3.2
Objectives303.3.3 Functions of GLT:303.3.4 GLT Process:313.3.5
Operational Sequences of the GLT Plant:323.4 GLT PLANT333.5 Primary
Manufacturing Department (PMD)343.6 SECONDARY MANUFACTURING
DEPARTMENT:35Chapter # 4364.1 Purpose of Performance Management
System in PTC364.2 Performance Management in PTC364.3 Managing
work374.5 Recommendations:39Chapter # 641Drawbacks,
Recommendations416.1DRAWBACKS416.2 Recommendations:42CHAPTER-7437.1
CONCLUSION43Refrences45
Chapter # 1PAKISTAN TOBACCO COMPANY
1.1 INTODUCTION TO THE ORGANIZATIONThe business of British
American Tobacco was originally established in 1902. When to end an
intense trade war. The imperial Tobacco Company of the United
Kingdom and the American Tobacco Company of the United States
agreed to form a joint venture, the British American Tobacco
Company Limited.The BAT business began life in countries as diverse
as Canada, china, japan, Denmark ,Germany, New Zarland, south
Africa and Australia-but not the UK or the USA, By 1910,its
operations had extended to the west Indies, India, Ceylon (now Sri
lanka).East Africa ,java ,Malaya (Now Malaysia) and Nigeria. BAT
listed on the London stock Exchange in 1912 and British investors
acquired most of the American parents shares.BAT held strong market
position around the world and had leadership in more than 50
markets. Since 1994, the group has grown global market share from
10.7 percent to over 15 percent. BAT has 86 functions in 64
countries. BAT uses more than 700 million kilos of tobacco and has
25 leaf growing projects and 23 leaf processing plants, with over
300 brands in BAT portfolio and a market share of 15 percent, make
the cigarette chosen by one in seven of the worlds one billion
adult smokers.BAT differentiated portfolio of brands included Ill
established international brands such as Lucky Strike, Kent,
Dunhill, Benson & Hedges, 555, viceroy, Pall Mall, John Player
Gold Leaf (JPGL). BAT is the second largest quoted tobacco group
with annual shipment of more than 800 billion cigarettes.
1.2 PAKISTAN TOBACCO COMPANY Pakistan Tobacco Company is the
first- Multinational Company of Pakistan and recently completed 60
years of its operations in the country. The company is the member
of multinational British American Tobacco group, which employs over
100,000 people, operates in 180 countries and is one of the top 5
FMCG trade marketing companies in the world.
1.3 History of Pakistan Tobacco CompanyPTC was incorporated in
Pakistan and is listed on the three stock exchanges of the
country.it was established in the same year when Pakistan took its
birth in 1947, and took over the business of imperial Tobacco
Company (India). It had three branches Karachi, Jhelum and Akora
Khattak, but Karachi factory however has been closed since 1992 due
to heavy losses and some other reasons. The first plant was set in
warehouse in Karachi port with monthly production of 30 million
cigarettes against sales of 60 million, the gaps being filled up by
import. When Pakistan came into being all tobacco was imported in
for production of cigerattes.But in 1952, a development project was
initiated in N.W.F.P and the top quality American Tobacco found way
to Pakistan. A factory was established in 1955 at Jhelum, and PTC
becomes a Public Limited Company in the same year. In 1975 a new
cigarette factory was set up at Akora khattak to, meet the
increasing demand. Akora khattak factory is now one of the largest
factories of N.W.F.P. Pakistan Tobacco Company has divided the
whole country into 5 regions (Central Punjab, Southern Punjab,
northern Punjab Region, and Lower Sindh).within each region, there
are five to six areas, and each area is further sub-divided into
direct delivery and wholesale. In total, the company has five
regions, 22 areas, 355 distribute sand 12 area warehouses. After
six years of serial losses (1997-2002), Pakistan Tobacco Company
Limited has managed to swing back to a profit of 354 million in
2001. The accounts for the six months to end-June 2002, released
recently, show 2% slip in the top line to Rs10.8 billion for the
corresponding period of last year.Pre-tax profit, nonetheless, rose
sharply by 175% to Rs.415 million, from Rs.152 million and after
tax profit should growth of 92% to Rs.248 million, from Rs.129
million. New products introduced during the past two years
accounted for 33% of PTCs sales during the six months under review,
during which the company said to have unparalleled performance in
new product innovation in the cigarette industry. The company has
continued to claim that five out of the five top selling brands in
Pakistan are those of PTC.They include Gold Flake,Capstan,John
players Gold Leaf and Embassy. The company had paid the last cost
dividend in 1995.The 10-rupee share in PTC hit its record high at
Rs.162 in 1994. The prize slipped over the year to hit the lowest
Rs.8.50 in 2000; but the stock has now recovered to Rs.60.25. The
board didnt declare a dividend for shareholders for 2001 and used
all of the profit to wipe out the huge accumulated deficit of
Rs.337million on the balance sheet. But the important thing is that
the shareholders equity is back in the black.at end June 2002,
shareholders equity
Amounted to Rs.2.820 billion, with Rs.2.555 billion being the
paid up capital. For PTC , it isnt still a smooth journey I
reiterate that tax evading sector remains a major threat to the
government revenue and to my business, directors complain in their
half term report, adding that the steps taken by the governments in
the past to check evasion had been encouraging. However, recent
increase in activities of the tax-evading sector was stated to be
alarming; the company urging government support in the matter.
1.4 Vision, Mission, and strategies Vision First choice for
everyone
Mission Transform PTC to perform with speed, flexibility and
enterprising spirit of an innovative, consumer focused company with
a long vision of becoming the FIRST choice for everyone
Key Objectives Drive with standards in products, process and
services through passion, skilled and confident people. Strive to
meet stakeholder expectation. Strategic objectives of Pakistan
Tobacco Company My strategy reflects vision, being the champions of
growth productivity, responsibility and the wining
organization.
Business PrinciplesPTC follows three fundamental business
principles:1. Mutual Benefits2. Responsible Product Stewardship3.
Good corporate Conduct each Principle is supported by a series of
core Beliefs Which are explained below:Mutual Benefits:The
principle of mutual benefits is the basis on which I build my
relationship with my stakeholders. I are primarily in business to
build long term shareholder value and I believed the best way to do
this to understand and take account of the needs and desires of all
my stakeholders.Core Beliefs Creating long term shareholder value.
Engaging constructively my stakeholder. Creating inspiring my
environment of my people. Adding value to the communities in which
I operate.
Responsible product stewardshipThe principle of responsible
stewardship is the basis on which I meet consumer demand for legal
product that, put simply, is cause of serious disease, Therefore,
my products and brands should be developed, manufacture and marked
in a responsible manner. I aspire to develop tobacco products with
critical mass appeal that will, over time, be organized by specific
and regulatory authorities as posing substantially reduced risks to
health.Core Beliefs Provision of accurate, clear health messages
about risks of tobacco consumption. Reduction of health impact of
tobacco consumption whilst respecting the right of informed adults
to choose the products they prefer. Continued availability of
relevant and meaningful information about my products. Underage
people should not consume tobacco. Responsible marketing of my
brands and products and directed at adult consumer. Appropriate
taxation of tobacco products and elimination of illicit trade.
Regulation that balances the interests of all sections of society,
including tobacco consumers and the tobacco industry.Good Corporate
ConductThe principle of good corporative Conduct Id the basis on
which all my business should be managed. Business success brings
with it an obligation for high standards of behavior and integrity
in everything I do and whenever I operate. These standards should
not be compromised for the sake results.Core Beliefs My business
upholds high standards of behavior and integrity. High standards of
corporate social responsibility to be promote within the tobacco
industry. Universally recognized fundamental human rights to be
respected. Tobacco industry to have a voice in the formation of
government policies affecting it. Achieving world class standards
of environmental performance.Guiding principles PTC follow fmy
guiding principle that represents:1) Strength from diversity 2)
Open minded3) Freedom through Responsibility4) Enterprising
spiritMy guiding principles describe the organization I are and the
type of organization I want to be. They represent the common value
at the heart of my success.
Strength from diversityStrength from diversity reflects the
culture mix within the company and the work environment that
respects employees individual differences. It also reflects my
vision of harnessing diversity of people, cultures, viewpoints,
brands, markets and ideas.
Open minded Open minded reflects my openers to change,
opportunities and new ideas, including ways of addressing
regulatory issue and changing social expectations. I seek to listen
without prejudice, actively and genuinely considering other view
points.
Freedom through ResponsibilityFreedom through responsibility
desires how to make decisions: as close to the consumer to the
consumer as possible. It also affirms my belief that
decision-makers should accept responsibility for their own
decisions.
Enterprising spiritEnterprising spirit has been a characteristic
of my business for more than a century. It is to reflected my
ability to grow my business and its value within challenging
environments-in the confidence to seek my opportunities for
success, to strive for innovation and to accept considered
risk-taking as a part of doing business.
Business Process Re-Engineering Appreciating the importance to
change the status quo for continuous improvement and deliver strong
business results in a sustainable way, PTC has always been on the
lookout for opportunities to enhance the speed, efficiency and
reliability of PTCs process, several BPR projects Ire undertaken
during 2006 and 2007 including the setting up of the enterprise
program office (EPO), projects slender at Akora Khattak Factory and
the supply chain operations References (SCOR) model implementation.
EPO puts in place a new way working, which keeps corporate strategy
at the forefront and ensure all the initiatives are aligned to
support the strategy through effective program management and
allocates resources to the best fit priority areas. Project slender
entails relocation and resources, changing the layout of production
floor in a way to boost process effectiveness and achieve higher
productivity without employing Additional resources SCOR model is
being implemented all across the supply chain i.e. from seed to
smoke, for achieving cost optimization and improved process
efficiencies.
Corporate social responsibilityPTC has been at the front of CSR
subsequent to its initiatives of a forestation, mobile free
dispensaries, eye via Layton Rehmutullah Benevolent Trust, Leering
resources Center, non-formal education through the NGO adult basic
education society, supporting citizens foundation to prove
educational facilities for the children and installation of water
filtration units. Rehabilitation of earth quack Affecters in
Battagram, inaugurated in September 2006. In November 2006 PTC
under look a project to combat the spread of viral hepatitis in
northern Areas. In 2005 PTC become the first company in Pakistan to
publish a duly audited social report. Second cycle of the social
reporting dialogue, based on issues identified in the stakeholders
mapping classification exercise, was competed in November 2006 and
the social report is planned for the publication in early 2008.
Best practices of good corporate conduct governance being adhered
to include producing an annual report that provides quality
information to all stakeholders.Environment, Health and Safety
(EH&S) Being fully alive its role as a responsible corporate
citizen PTC has implemented a Ill-structured EH&S program in
addition to embedding internationally recognized best practices,
PTC is committed to ensure that it nurture an environment where its
employees and surrounding communities are safe from any hazards
that may affect their health and minimize the impact of its
operation on biodiversity. PTCs commitment to EH&S was further
strengthened during 2006 as PTC achieved significant improvement on
the EH&S road map. Both its production facilities Ire rectified
with ISO 14001 earning the Evergreen status. PTC has consistently
sustained its accreditation in last seven surveillance audits with
zero major and Minor points. PTCs efforts has further been
sustained with National Forum for Environment & Health awarding
PTC the Annual Environment Excellence award on Health safety and
Environment . For the second consecutive
Year in 2006. Throughout the companys history. It has maintained
a strong stance on corporate and social responsibility; it strongly
believes effective and constructive partnership with communities by
helping address various EH&S issues.Over the year the company
has invested substantial resources in terms of finances and man
poIr in various initiatives like mobile free dispensaries, Learning
Resources Center and portable water. Environment, Health &
Safety (EH&S) policy:It is PTCs policy to: Provide and maintain
a safe and healthy working environment including use of cleaner
technologies and safe system of all its employees and non-company
personnel on the company premises. Pay due regard to all impact of
its activities on the physical environment. Comply with all
applicable national laws and regulations BAT policy pertaining to
environment Health and Safety. Establish procedure to regularly
assess and reviewing the EH&S performance. Adopt a proactive
role to continually identify cost effective measure, which it can
take to reduce pollution, safeguard the health and safety of its
employees, non-company personnel on company premises, the
neighboring communities and the physical environment.
1.5 Product Line of Pakistan Tobacco Company The PTC have a
stretched product line covered every segment but comparative to its
competitor its loIr segment is very short. PTC generates most of
its revenue from middle slap the following are the product line
segmented into upper slap, middle slap, and loIr slap.1.5.1 Upper
slap Benson & Hedges 20HL Benson & Hedges 10HL Benson &
Hedges light Gold Leaf 20HL Gold Leaf 10HL Gold Leaf flavor
1.5.2 Middle Slap Capstan int. KSFT 20HL Capstan int. KSFT 10HL
Capstan LSFT 10 SS Capstan by pall mall 20HL Capstan by pall mall
10HL Wills king 20 HL Wills Navy Cut 10SS Will international 20HL
Wills international 10HL Gold Flake 20SC Gold Flake 10HL Gold Flake
20 HL Gold Flake Supreme 10HL Gold Flake Supreme 20HL
1.5.3 Lower Slap Embassy kings 20HL Embassy king 10HL Embassy
10SSThe cigarettes are packed in two different style boxes. They
are called Sheel in side (SS), Henge led (HL), the interesting
thing is that the different plants are installed for the both style
packing. Sheel in Slide is imported while Henge led is made in the
factory.1.6 MAIN BRANDSPTC has always considered itself a consumer
focused company. They aim to offer a product that excels in all
aspects and exceeds the expectations of the consumer. PTC has
particular emphasis on its five national drive brands.
Benson & HedgesIn 1873 Richard Benson and William Hedges
started a partnership in London. From the very start, the idea was
to make Benson a style statement, which is why the business started
from Londons fashionable 1st End. PTC launched Benson & Hedges
in Pakistan in 2003. Made with the finest hand-picked golden
Virginia tobacco from across three continents, the brand is packed
with perfection to seal its freshness. The objective of introducing
the brand his brand is to establish the locally manufactured
B&H light is the most preferred offer amongst consumers, in the
premium lights segment and to add image to the B&H family by
offering avoider product range. It was launched in the three metros
of Karachi, Lahore, Islamabad and Rawalpindi.JOHN PLAYER GOLD
LEAF:The story of john player Gold leaf has to start from the story
of its founder, john player. An enterprising businessman, john
player started a small tobacco selling business in 1877 and turned
it into a thriving cigarette company, John player and sons With a
distinct lifebuoy and sailor trademark john player Gold Leaf has an
identity entrenched in salling and maritime adventure. Thus staying
true to john players very first big brand Players Gold Leaf Navy
Cut Cigarettes. Gold Leaf is the key value and the volume
contributor for PTC. It remains the most aspire brand in Pakistan.
From 2000, the brand is showing continuously growth.
CapstanCapstan has a rich heritage, organizing in Britain in the
19th century. The brand was created under the auspices of W.D &
H.O WILLS and London. Capstan has grown by leaps and bound to
become the fastest growing brand of Pakistan Tobacco Company (PTC)
in the year 2001, recording a straggling growth rate of 104%
overtaking sales volume of the major competitive brand in the Carly
part of the year, And consistently outselling it throughout.Gold
FlakeGold Flake, like many of ur brand also boasts its origins at
W.D & H.O. WILLS where it was a premium brand took off the end
of the 19th century. Launched in 1982, in a soft cup packing, the
brand took off when it was repositioned in the value for money
segment and later a hinge lid variant was introduced in 2000. Gold
Flake is PTCs largest brand in volume terms and is also a
significant contributor towards the value share. A highly
successful pack design change In 2004, soon after the new pack was
launched in the market and Gold Flake smokers accept the new design
of the pack, at this point an aggressive promotion in the market
that would ensure the maximum exposure of competition smoker to the
new pack. There are three new variants Ire added into the family;
Gold Flake 14HL, Gold Flake 10HL, and Gold flake 10SC, in order to
offer the consumers a wider choice.Wills King WILLS take its new
name from the heritage of one of the original Imperial Tobacco
Company Families; the Wills Brothers of London, Wills is also a
Ill-known brand in Pakistan. EmbassyThe third leading volume brand
in Pakistan is the most popular in the Punjab where it enjoys a
leading position due to its equity and loyalty. Embassy continued
its growth in the year 2001 fortifying its position in the market.
The brand registered a growth of 3% over in 2000. Major focus
during the year remained on the introduction of more extended
relevant packaging variants. In the third quarter of 2001 the brand
family was extended with the introduction of Embassy filter 16ss
pack followed by Embassy kings 14HL. With the launch of these
variants, the family now offers more choice its consumer at
affordable price.1.7 SWOT Analysis
1.7.1 StrengthsIn the analysis of the Strengths of the company
we focused on the competencies of the PTC its entirety. Continuous
learning and improvement. Sustainable growth. Environmental
standards achievement. Market leadership in the world. being
beneficial to the community (Corporate Social Responsibility)
Diversified workforce and environment. technologically advanced
machinery and equipments. Good salaries packages. Focus on health
and safety on the company premises. Training and development of its
employees.1.7.2 Weaknesses Salaries difference between workers who
work more and the one who put minimum efforts. Technological
advancement would decrease the workforce and unemployment will
increase. Very minimum marketing as compare to its competitors.
Workers are always under threat because of downsizing.Improper
distribution of work.1.7.3 Opportunities Greater opportunity of
promoting lower brands in rural region. PTC has the potential to
further improve the cost reduction method. Create a better work
environment in GLT department because of more hazards in this
department. lowering the downsizing will create a good image in the
eye of regulatory authorities and government. Focus on its key
brands i.e. high growth like Gold Flack this years growth was
around 27%. Export of premium brands.
1.7.4 Threats Some of its competitors are also producing high
quality brands like Marlboro byLackson.internationally some
countries are continuously promoting anti-smoking slogans like the
ban of smoking in Bhutan in 2002. Better marketing campaigns by
rivals.Their well-established brands are highly copied by some
local manufacturer.The political, economic situation is not stable
in Pakistan. Limitation of their product, Decline in tobacco
growth
Chapter # 2 HRM DEPARTMENT AT PTC
2.1 HR Mission Statements at PTC:
To leads the organization in enhancing its human capital and
creating a winning environment where everyone enjoys contributing
to the best of ones ability.PTC will achieve this by: 1. Inspiring
and motivation its people 2. Development its people to strive for
higher standards.3. Driving an open minded and enterprising
corporate culture where people through leadership at all levels
dare to dream, dare to try , dare to fail and dare to succeed.4.
Attracting and recruiting the best talent.2.2 Human Resource
StrategiesHuman resource department will continue its effort
towards nurturing an winning corporate culture and building
organizational capabilities by ensuring that its people at all
levels are both able and willing to perform at consistently
exceptional levels. At PTC the people have been employed to a large
degree by minimizing out dated rules/regulations and plan to
further eliminate the bureaucratic barriers to capitalize on their
ingenuity and talent. The top team Continue to play its role in
providing the guidance and support to people at all levels. The HR
(people) function ensures that it leads the transformational change
by nurturing a climate, which would help in converting the huge
potential at disposal of the company into world-class
performance.The active and effective role played by HR in people
development at different levels organizational, departmental and
individual is considered in PTC to be one of the most critical
factors leading to the development of winning corporate cultures.
The effort continues to be directed towards developing the skills
of the shop floor employees, improving competencies of Business
Support Officers (BSO), and enhancing the leadership qualities of
managers. 2.3 Different HR Practices at PTC:These are few of the HR
practices that I have learned at PTC from my resource person. 1.
Recruitment & Selection process 2. Performance appraisal3.
Training & Development 4. Reward Management5. Employee
Discipline2. 3.1 Recruitment and Selection at PTC:In PTC, the
activity to fill a vacancy or a new job starts with the requirement
communicated by the respective managers to the HR department. The
HR department then looks for the possibilities of internal and
external recruitment.2.3.2 Internal Recruitment:In PTC, internal
recruitment is done for the managers of the higher grade and
directors. When position is vacant, the HR department views the
past performance of the people working at loIr levels than the
vacant position and chooses the right person who is promoted to
that position. At the director level, the internal recruitment
process is from PTC or from any other subsidiary of BAT. The
decision of recruiting a director from a subsidiary of BAT is not
in the hands of the HR department of PTC or any of the PTC
executives. The directors are allocated form the Asian office of
BAT.2.3.3 External Recruitment:For external recruitment in PTC, the
line managers are required to make a requisition form for the job
in which they have to mention their need taking in account the
budget for establishment and salaries for the position of
Management, Business Support Officers and Workers. Role profile for
the specified job is also prepared matching up the requirement and
the grade of the job. Training period is also specified on the
requisition form. This process is given a total of 7 days. The
requisition form along with the role profile is sent by the line
manager to the functional director for his approval and then
forwarded to HR Manager. The HR manager confirms the availability
of budgets required for establishment, salaries and cost of
advertisement for the job. After all this,
the Requisition form along with the job profile and the budget
forecast is sent to the JR Director for his final approval. This
process if required to be done in 2 days time.After approval from
the HR director the HR manager and the line manager Work hand in
hand to prepare job and person specifications for advertising or
giving to the head hunters. They are given a total of three days
time to do that.The sources that PTC uses to attract applicants
are:a) inviting applications through advertisement b) Key
campusesc) Recommendations from the head huntersd) Application
obtained from the data bank of PTC where direct application are
received from time to time
This process is given a total of 5 days. PTC is also indulged in
the marketing of their company as being a good employer by the
process which they call the Campus Marketing Campaign. The
objective of PTC by doing this is to attract the best graduates
from the related areas of education by increasing Awareness about
PTC and BAT and to establish the companys brand name as the leading
employer. For this, they have selected some key universities,which
they target for the campus Marketing Campaign. The universities
targeted for attracting business students and engineers are:a. IBA
Karachib. LUMS Lahorec. QAU Islamabadd. NUST Rawalpindie. UET
Lahoref. UET Peshawarg. G. GIKI Topeh. H.NUST Rawalpindii. Bahrain
Islamabad
The universities targeted for attracting masters in tobacco leaf
growing are: 1. Agriculture University Faisalabad 2. Agriculture
University PeshawarGraduate Recruitment teams are made which have
the responsibility of recruiting new personnel to PTC. These teams
are also responsible for the Campus Marketing Campaigns. Each team
has a leader and the HR managers are responsible to provide
administrative support to the recruitment team leaders and are HR
managers themselves are the members of these teams.For business
schools, the recruitment team leader is a grade 36 manager from
Marketing or Finance department. For UET Lahore and NUST, the
Factory Manager of the Jhelum Factory is made the team leader and
for UET Peshawar the Factory Manager of Akora Khattak Factory is
made the team leader. In the same way for GIK Topi, the IT
Manager,for Agriculture University Faisalabad, the Crop Manager and
for Agriculture University Peshawar the leaf manager are made the
recruitment team leaders respectively.A two year marketing plan for
each campus is made in which different strategies are formulated to
attract different target audiences. PTC has made different
marketing plans for the 1. Faculty 2. Student Organization 3.
Prospective MBAsThe marketing plan covers the following
activities1. Company and career presentation2. Internships3.
Sponsorships Student events4. Campus Advertising in
magazines,journels and graduate directory to establish PTC and BAT
employer brand name5. Organizing Lectures and Training Programs6.
Direct mail shots
After a substantial amount of applications have been received,
the line and the HR manager again work together for a total of 10
days to shortlist the applications. This is done carefully going
through all the application and by giving different weightage to
the following criteriaa. Quality of early schoolingb. Grade
obtainedc. Extra-Curricular activitiesd. Overseas travel and
educatione. Agef. Target Universityg. Relevant experienceThe HR
department then issue call letters to the short listed candidates
along with blank application forms by date, time and venue for the
preliminary interview is advised and candidates are asked to bring
along completed application forms. A two-member panel of HR and
line management carries out competency-based interviews focusing on
functional skills and managerial and supervisory skills. The
process is again given a total of 10 days.After the preliminary
interviews are cleared people applying for different jobs and
tested different ways. In case of management, Assessment Centers
are organized for recruitment. Assessment material is provided by
BAT which is composed of case studies followed by discussions among
the applicants. The following management competencies are assessed
by a panel of cross functional assessors:1. Communication skills2.
Resource management3. Rational decision making4. Influencing5.
Creative thinking6. Business development
The HR department is responsible for overall administration of
the assessment center including training of the assessors. In case
of Business Support Officers selection tests are designed to assess
functional, intelligence, writing and numerical ability. The line
and HR managers prepare the test papers. AH4 test is currently
being used to assess basic intelligence, language and numeric
ability.PTC makes sure that the candidates reporting for test from
outside the city are reimbursed air, train or bus fares. In case of
workers, HR administers written aptitude and mechanical
comprehension tests in conjunction with line managers. Management
focuses to finish all this in 15 days.After all the tests, the
candidates are again short-listed for the final interviews. The
short-listing of the candidates is based on their performance on
the secondary stage of the recruitment and selection procedure.
Date and time for the final interviews is fixed with the selection
board and call up letters is sent to the candidates.Candidates
reporting for the final interviews from outside the city are
reimbursed air, train or bus fares where considered appropriate.
The final interviews take a total of 7 days.The candidates selected
after final interviews are referred to PTCs nominated doctor for
medical examination. The doctor sends his medical report to HR
department. Candidates declared medically fit are made an offer.
The HR department provides details of remuneration package and
terms and condition of service. The HR department also prepares
appointment letter, service agreement and finalizes other
documentation for service record.
2.4 Hierarchy of HR DepartmentHR ManagerHR Admin Officer HR
ManagerAssistant HR manager Assistant HR manager Assistant HR
manager leaf & GLT HR Welfare Officer HR Legal Affairs
Unionized Employee UUnionized Employee nionized Employee Unionized
Employee
Chapter # 3 OVERVIEW OF AKORA KHATTAK FACTORY / THE SUPPLY CHAIN
FUNCTION
3.1 A complete overview of PTC Supply Chain FunctionThe
following lines describes the complete period function of PTC
supply chain in proceeding order starting from the LEAF and the
ending up with the finest quality cigarette sticks of the cigarette
Factory.3.2 LEAF / LEAF Agronomy Department The very first stage of
the PTC Supply chain function is to collect the cured tobacco
leaves from the PTC Leaf depots in the field areas of NWFP and
Punjab. Basically, there are two techniques for curing the raw
tobacco leaves.a) F.C.V (Flue Cured Virginia)b) S.C.V (Sun Cured
Virginia)The tobacco lots are cured in the PTC Leaf depots in the
areas of ;A. Plain Areasa. Shergarh Regionb. Yar Husain Region
B. Development Areasa. Mansehra Regionb. Buner Region
C. Punjab Regiona. Gujarat Region b. Mianwali Region
Moreover; the following Leaf Varieties are procured for making
of different cigarette brands: W.PW.P also known as White Patta in
local slang is a vastly cropped brand in the local tobacco fields
of KPK. D.A.CDark Aired Cured Virginia is another good class of
tobacco cigarretized for good brands BURLAYBurlay is another local
type of tobacco leaf which is grown extensively in the regions of
Swat KPK.Before the tobacco crop is purchased by the PTC, The leaf
Agronomy department at PTC AKF checks different parameters of the
samples taken from each and every lot of the particular crop. The
quality parameters including chemical and smoke analysis are verily
and thus the crop is declared variable for further
processing.Tobacco in the form of leaf lots of leaf after curing
and sample testing packed and sent to both the PTC Akora Khattak
and Jhelum factories.3.3 Green Leaf Threshing Department
(GLT):3.3.1 Introduction: The main function of GLT is to separate
the stem and lamina. Stem and lamina are important in manufacturing
of cigarette. Lamina is used for taste and stem is used to hold the
lamina in cigarette. Stem has no taste. For example if company uses
80%of lamina than 20% of stem will be used.The price of lamina in
the market is higher than the price of the stem, for example if the
price of lamina is 120 than the price of stem will be 20.Dust is
collected during the process with the help of dust collectors and
in sold in the market. This dust is used in fertilizers; low
standard or scrap is also separated and sold to those companies,
who manufacture low standard cigarettes. The workers working in GLT
and the visitors use air plugs and pollution resistance masks as a
precaution. About 120 to 150 workers work in GLT.
After processing stem and lamina, these are packed separately in
C-48 cases.3.3.2 ObjectivesThe objectives of plant are:I. Cleaning
II. MoisturizingIII. Threshing and Classification of Tobacco Leaf A
Tobacco Leaf Consists of two major componentsI. Stem II. Lamina
Both are processed separately. Both are passed through the same
procedure and machinery. The GLT plant machinery has been adjusted
in two lines.I. Line 1II. Line 2Capacity of each line is
8000kg/hr.the tobacco bales that comes to GLT Plant have different
grades, different grades means they have different constituents of
different proportions, to select a suitable grade for processing
Pakistan Tobacco Company has a blending department, the
responsibility of blending department is to select grades which
means their quality standards which are ready defined, they choose
suitable grades for process in GLT Plant.3.3.3 Functions of GLT:
Both lamina and stem are separated from tobacco leaf in GLT.
Following percentages get from tobacco leaf in GLTLamina = 70%Stem
= 20%Dust = 3 to 4%Moisture = 6 to 7%
The price of lamina is high in market while the price of stem is
low in the same market. So the aim of GLT is to high the production
of lamina. Another function of GLT is to maintain moisture because
high moisture creates the problem of fungus namely called Mould.
While on the other hand low moisture creates the problem of
converting the leaf in the form of powder. Another function of GLT
is to remove the dust from tobacco leaf and sell it in the market.
Another function of GLT is to separate the scrap and it in the
market.
3.3.4 GLT Process: Tobacco leaf is put on feeding platform
according to the grades. Then it is shifted to the conveyer belt.
On this stage dust is collected through dust collectors. Searchers
on picking area to remove impurities from leaf Then leaf is
conditioned in conditioning cylinders. After conditioning leaf
comes to process in threshers. After threshing the lamina and stem
are classified with the help of air lift. After classification
lamina is dried in lamina dryer and stem is dried in stem dryer.
After drying lamina and stem, both are shifted to press and here
both are packed separately. After packing these are shifted to
PLS.In GLT, the STEM and LAMINA are separated from the tobacco
leaves and grading is done on the basis of Nicotine Chemistry.
3.3.5 Operational Sequences of the GLT Plant:GLT Plant receives
tobacco leaves from leaf logistic department and first of all,
cutting is performed on it on the Tipping Tables which divide the
leaves into pieces. Then, these cut tobacco leaves go through the
Conditioning Cylinders and are given moisture up to 15-16%.The next
phase comprises of shifting the tobacco to a cindery, where all the
scrap is filtered from the cut and conditioned tobacco leaves and
it is once again then passed through conditioning cylinder moisture
of 17-18%.finally, the leaf is separated into STEM and LAMINA in
threshing. The next action is known as Re-Drying; which brings down
the moisture to 13-14%.Now; the stem is packed into Gunny Bags
while lamina is packed into Bales. The net weights are 36kg and
110kg respectively.Now; the tobacco is sent to the PLS (prized Leaf
Stores) where the government taxation liabilities are carried out
before it is dispatched to Jhelum and Akora Khattak Factories
through the C-5 godown.Following is the series of operations
followed in order to separate the stem and lamina as Ill as grade
them make them ready to be stored before the tobacco is fed to the
PMD for further procurement.
3.4 GLT PLANTBASIC PROCESS FLOW DIAGRAMGREEN LEAF
THTHRESHING
BALE OPENING
Feeding / Blend
CONDITIONING
Sand Reel / Roller Deck
Sorting / Searching
Re-Conditioning
THRESHING
ClassificationSTEMLAMINA
SIEVINGSIEVING
Small particles / Stem Bits / Dust
DRYINGREDRYING
PACKINGPACKINGStoring / Distribution
3.5 Primary Manufacturing Department (PMD)As the name; Primary
Manufacturing Department is the very first processing plant of
tobacco after the tobacco is dispatched from the GLT
warehouses.Here, the tobacco is conditioned, blended with casing,
cut further with supply of moisture, dried, and finally blended.
The tobacco is then stored and finally fed to the Mark-9 machines
from Cut Tobacco Stores.a) CONDITIONING:The Conditioning process
opens up the compressed tobacco leaves and adds up moisture to
threshing and is stored in the warehouses.b) BLENDING:On the basis
of leaf varieties and Bill of Materials (BoM); every brand has its
own blending mixture including GF, CH, AY, JPGL, and CBPM etc.c)
CUTTING:There are separate CUTTERS for stem and Lamina i.e. both
Stem and Lamina are separately fed to the conveyor line leading
towards their respective cutters.For LAMINA:28 Cut/ InchMoisture:
22%Leaf is open through conditioning For STEM:160 Cut
/InchMoisture: 38%
d) DRYING:The 38% and 22% moisture of Stem and Lamina
respectively are brought down to 15% in drying action.
e) FINAL BLENDING:Finally, the Stem and Lamina are blended
together in a proportion of 1:4 respectively. i.e. 20% Stem and 80%
Lamina are mixed up together before this finally blended tobacco is
sent to Cut Tobacco Store.f) CUT TOBACCO STORE:The cut tobacco
store or CTS is the final depots of the Primary Manufacturing
Department from where the ready cut tobacco is fed to the cigarette
making machine through feeders. There are a total of 14 Feeders in
the CTS.The blended cut tobacco is firstly stored in a wooden box
for 24hrs and is then fed to the feeders which further transfer it
to Hopper Unit of the Mark-9 Machine installed in the Secondary
Manufacturing Department due to the action of pneumatic section.3.6
SECONDARY MANUFACTURING DEPARTMENT: SMD is the abbreviation of
Secondary Manufacturing Department.The elite manufacturing
department of the PTC AKF; SMD is divided in to two functional
groups i.e. MAKING and PAKING. It is the final department of the
AKF factory where cigarette are manufactured from tobacco coming
from CTS; they are packed, and thus finally delivered to PTC
warehouses.Secondary Manufacturing Department
MakingPacking
Chapter # 4Performance management has three parts: Defining the
performance, measuring or appraising performance, and finally
feedback for the performance.
4.1 Purpose of Performance Management System in PTCThe
Performance Management system of any company is to check the
employee performance is aligned with strategic goals. PTC claims to
be value leaders in the cigarette industry and future goal is to
transform PTC to perform with speed flexibility and enterprising
spirit of being an innovative consumer focused company.Furthermore,
the employees who perform well are given opportunities to further
develop themselves. Normally the weak points are pin pointed so
that the employees can improve themselves.4.2 Performance
Management in PTC
At PTC, the process of performance management starts by defining
performance. Performance cannot be defined without a clear
knowledge of the job that is to be performed by the employees. At
the managerial level, it is very difficult to define performance of
the employees keeping in view their quantitative aspects. Due to
large variety of managerial jobs at PTC, the performance of
managers is analyzed on a qualitative measure.At PTC, jobs are
analyzed after two years or whenever there is a need of jobs
analysis and performance is defined. After that, this definition of
performance is communicated to all the employees and it is made
sure that they work on these measures as they are also appraised on
the same measures.After performance has been defined, all the
required behaviors for the managers are studied in detail and some
indicators are developed which are necessary to judge whether the
employees is performing good or bad. The indicators that are in
favor of the required performance are called Positive Indicators
and the indicators against it are called Contra Indicators.Given
below are the behaviors with their required performance for
managers PTC:
4.3 Managing work
Managing own work in the most efficient and effective way:
1. Plans and prioritizes own work, breaking down the task.2.
Uses available resources effectively (own time, systems, finances,
people, information)3. Prepares well and has everything at hand.4.
Has an organized approach to work.
At a supervisory level:
1. Delegates tasks effectively2. Coaches subordinate(s) to
achieve tasks
Analyzing and understanding
Understanding own role, responsibilities, tasks and solve
problems:
1. Seeks clarification by probing, questioning and challenging2.
Anticipates and thinks around problems/ issues3. Recognizes own
limitations and other resources-knows when help is needed4.
Considers and evaluates all options-is able to weigh things up5.
Makes sound judgments and decisions.6. Is able to be discreet and
maintain confidentiality.
Processing work
Processes and produces work to meet all the deadlines.
1. Follows appropriate procedures in a methodical and systematic
way.2. Seeks appropriate approvals and authority3. Maintains
routine tasks and systems-filing, info systems, dairies, etc4.
Monitors and reviews own tasks, makes appropriate checks5. Is
accurate and pays attention to detail.
Adaptability
Is flexible and responds positively to changes.
1. Accepts changes enthusiastically2. Is willing to
learn/change3. Is open to new/other ideas4. Is able to perform
under pressure
Initiative
Uses initiative and seeks improvement
1. Is curious and inquisitive2. Generates ideas3. Develops and
makes improvements4. Learns from experience5. Is able to work with
minimum supervision/direction
Relationships
Has a good working relationship with others, both within and
outside the organization.1. Build informal working relationships2.
Co-operates with others, is a team player3. Understands and is
sensitive to the needs of other people4. Persuades and
negotiates-is able to gain commitment5. Confronts problems and is
assertive when necessary
Communication
Communicates confidently and clearly with others 1. Is clear and
concise in communication2. Effectively communicates own needs3.
Liaises and consults with others4. Is able to communicate
effectively in writing
CommitmentDisplays commitment and self-motivation1. Completes
and finishes tasks, not giving up2. Is conscientious and takes
pride in their work3. Works to high standards4. Is reliable and
consistent-not letting others down 4.5 Recommendations:a. Along
with report He (Feed end supervisor) should also give detailed
comments about LIP and the issues occurred in BAT Leaf system. He
should also take up the physical and system issue with a Logistic
Green Leaf Issue Supervisor. Also the issue to be timely
(communicate) to a GLT team leader.b. The LIP should be properly
recorded and accounted for while doing the reconciliation. At times
it has been observed that LIP is not properly recorded and
traceability is lost.c. The LIP is especially the problem when the
process is running 24hrs.
Impact of LIP on yield is that if the LIP rate is high than it
decreases the overall yield. It is a continuous process and it
occurs randomly. Due to Break Down or Time, communication,
neglisous (mistakes). d. Tobacco handling to be made with intense
care while truck unloading and unloading at feeding platform from
the pallets. Change in handling practices will decrease the
degradation loss.
e. I made an observation that tobacco scrape is dropped on the
GLT plat forum during handling before the bale is put on the scale
for re-weighment loss
Calculation. To further verify this observation I conduct a
trial following two approaches.1. Carefully Handling (During
unloading)2. Normal / Routine Handling (During unloading)
I formed a different of up to 1% only in case of very shatter
grades. Re-weighment loss in case of such grades is slightly high
if I dont handled the bales carefully due to spillage of
scrape.
Chapter # 6Drawbacks, Recommendations6.1 DRAWBACKS:There are
social, environmental, operational and material draw backs in GLT.
These are given below:SOCIAL DRAW BACKSUnemployment: Before the use
of technology number of labor worked in GLT, which not only reduced
the unemployment situation in the region but also improved the
standard of living of the people. With the passage of time latest
technology was installed in GLT. Which increased the production but
it has also caused unemployment.ENVIRONMENTAL ROLEDust:There are
two types of dust organic and inorganic. Dust is a common feature
of GLT. It is estimated that about 3 to 6% dust is present in
tobacco leaf which is removed in GLT. Level of dust increases as
weather changes from hot to cold. This dust is collected from leaf
in dust collection units. Dust may also harm the respiratory system
of the workers
MATERIAL DRAW BACKS: Sometimes dust level is too much high and
it creates problems while removing it in dust collection units.
Sometime moisture level is too much high. Sometimes amount of scrap
in bales is large.
OPERATIONAL DRAW BACKS:Shortage of electricityGLT is totally
dependent on WAPDA because electricity requirement is very high
(almost 3-4 megawatt) and generators are used..Lack of skilled
laborIn GLT workers are hired on seasonal basis and it is very
difficult to find skilled labor every time, even if a skilled
worker leaves the company it is very difficult to find a worker of
same potential. 6.2 Recommendations: A proper conditioning of leaf
must be done and verified before it is bring to GLT plant for
further processing. Advance sensors should be used to remove
foreign matters, to produce finest quality tobacco. The conveyors
should be covered properly and small dust suction fans should be
used for conveyors separately. The components of machines should be
maintained properly to minimize the vibrations in the components
and noise.
CHAPTER-7
7.1 CONCLUSION
As we know PTC is highly aware of how to motivate its employees
in the best way. This can be judged by enthusiasm and good spirit
that people show in performing their jobs. There is a well-devised
system that PTC follows for the purpose of motivation. It includes
both financial and non-financial rewards along with the major
motivators and Dissatisfiers. The company recognizes the importance
of making people drive towards their goals and the basic step
towards this is made through recognizing the value of importance
that the company gives to its employees. PTC has a set of financial
rewards, medical, dental, vision and life insurance, retirement
plan, educational refund assistance, paid vacation days, family and
work life balance benefits and profit sharing plan, annual bonus
opportunities, company cars etc. other ways in which employees are
motivated are:
1. Employee Consultation for:
1) Everyday Residence issues (remodeling, repairs,
house-sitting, etc.).2) Legal matters.3) Financial issues.4)
Education and schooling.5) Parent and child care.6) Resources for
seniors and eldercare issues.7) Disability and accessibility. 8)
Emergency dependent-care reimbursement.9) Adoption assistance
Additional employee benefits may include:
1) Paid time off for dependent care.2) Educational refund
plan.3) Scholarship program.4) Medical, dental and vision benefits
plans.5) Group life insurance. 6) Student and parent loan
program.7) Fitness center.8) Group discounts on: car, home,
long-term care, pet insurance, home security, auto services and
purchasing, mortgage and home equity loans, and legal services.9)
Health services.10) Lunch n Learn educational seminars. 11)
Employee Assistance Program(EAP)
Other factors that lead to greater employee motivation are
1) Employee are made to work in such a dynamic way that they can
derive satisfaction from knowing that they have achieved something
that was previously impossible or extremely difficult to achieve.2)
Employees are safe in knowing that they will be rewarded for any
exceptional work. This reward is not only monetary. It is
accompanied by the employee being given recognition and greater
empowerment.3) Employees are given a very beautiful and healthy
work environment. Special attention is given to make physical
environment most protective. This is why PTC offices are considered
to be the most well decorated and organized.4) As we know PTC has a
desire to promote the high achievers from with in the company.
Positions are given on merit and are transparent and fair in
nature. There is no special treatment. Therefore each employee know
that he can aim for the top and actually get there. This has proved
to be a great source of motivation for employees of PTC.
Refrences
Web Sites
Pakistan tobacco company.(2015).Ptccompk.Retrieved20 October,
2015,from http://www.ptc.com.pk/
History of British American Tobacco. (on-line) Available (2008).
http://www.bat.com
Pakistan tobacco company.(2015).Ptccompk.Retrieved20 October,
2015,from
http://www.ptc.com.pk/group/sites/PAK_7SHBXN.nsf/vwPagesWebLive/DO7SHC64?opendocument
Slidesharenet.(2015).Slidesharenet.Retrieved20 October,
2015,from
http://www.slideshare.net/jawadiqbalkhan86/strategic-management-analysis-of-pakistan-tobacco-company-2008
Koontz, Harold. (1993). Management, Tenth Edition. Singapore:
Mc-Graw Hill. Institute of Management Sciences, (2014). Internship
Report on Pakistan Tobacco Company limited Akora Khattak factory,
Peshawar University
Pakistan Tobacco Company Limited. (2012). Annual Report.
Islamabad. Pakistan Tobacco Company Limited. (2013). Annual Report.
Islamabad. Pakistan Tobacco Company Limited. (2014). Annual Report.
Islamabad.
Teachers
Mr. Kamil Shahzad (HR Manager) at PTC
Mr. Sarfaraz Khan (Financial Leaf Analyst manager) at PTC
Mr. Mohsin Khan (my supervisor) at Comsats
Pakistan Tobacco Company | AKF 20