Total Quality Management

Executive Summary
Introduction of PakArab Fertilizers Limited contains its vision, mission, goals, objectives, products, competitors, distribution network, and organizational structure. All the PakArab Fertilizers Limited s manufacturing operations are highlighted with respect to its process management strategies. PakArab fertilizers Limited is totall! "#$ based organization which meets all the demands of customers, it is I%& certified organization. Pakarab Fertilizers Limited is committed to produce 'ualit! products conforming product specifications. PakArab fertilizers Limited dedicate its selves for continual improvement in product 'ualit!, productivit! and profitabilit! through teamwork, motivation, safe operation, training and feedback to earn customer satisfaction and confidence. (ith the help of teams PakArab Fertilizers Limited receive 'uicker and better solutions to its manufacturing problems. PakArab fertilizers Limited has open communication s!stem because it is a private organization so that all the emplo!ees of each level are to be encouraged to freel! communicate in decision making and problem solving. . )ustomer Focusing is a techni'ue of PakArab Fertilizers Limited for identif!ing the customers, products*services, 'ualit! characteristics, and performance measures which are most important to their business. PakArab Fertilizers Limited have a team of highl! 'ualified and e+perienced "echnical %ervices &fficers, serving the farming communit! throughout the countr!. PakArab fertilizers Limited alwa!s look at long term commitment, it full fill its short term goals to meet long term objectives, its management focus on long term goals and objectives because the! know that to improve 'ualit! is not a one da! task. Pak Arab fertilizer has a material management department which takes core of the needs of the organization, these items can be of the dail! use as well as the items of higher value. )reating a %afe environment in all areas associated with our products is a priorit! at PakArab Fertilizers Limited. Pak Arab Fertilizer is using I%& -../standards it is also I%&0 /1../23..1 certified )ompan! since 3..4. Pakarab Fertilizers )ompan! Limited conducts its business with the highest ethical standards in full compliance with all applicable laws.

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Company Overview
Pak Arab Fertilizers Limited was established as a result of protocol concluded and signed on 5ovember /6, /-73 b! the 8overnment of Pakistan to further strengthen and develop fraternal ties between Islamic 9epublic of Pakistan and %tate of Abu :habi. A $emorandum of ;nderstanding was concluded between Pakistan Industrial :evelopment )orporation <PI:)= and Abu :habi 5ational &il )ompan! Limited <A:5&)= on $arch 7, /-7>. A participation agreement emerged on 5ovember /, /-7> to establish a joint venture for the e+pansion and modernization of the old 5atural 8as Fertilizer Factor! <58FF= at $ultan. "he )ompan! was incorporated on 5ovember /3, /-7>. %ubse'uentl!, PI:) assigned 63? of its shares to 5ational Fertilizer )orporation <5F)= of Pakistan and A:5&) assigned 14? of its shares to International Petroleum Investment )ompan!, with a paid0up capital of P@971>..A/ million. ;nder the privatization polic! of 8overnment of Pakistan, Pak Arab Fertilizers Limited was privatized on Bul! /1, 3..6 at a cost of 9s./1./36 billion. It was ac'uired b! a consortium of Fatima 8roup and Arif Cabib 8roup. ;nder the new management, Pak Arab Fertilizers Limited has undergone e+tensive modernization and new improved processes have been introduced to ma+imize the output while minimizing the negative impacts on the environment. For this a )lean :evelopment $echanism <):$= plant was installed, which is the first project of this kind in Pakistan. Dasic aim of this project is the abatement of 53& and 5&E emissions from the stack gases of 5itric Acid plant. "he reduction of green house effect of these gases shows the new managementFs commitment towards a cleaner environment. Pak Arab Fertilizers Limited is located at @hanewal 9oad, $ultan. "he site area comprises >.3 acres, which includes area for the factor! and the housing colon! with all amenities including medical centre, school, management and staff clubs for recreation of emplo!ees and their families, etc. "he national fertilizer )orporation of Pakistan is a government undertaking G is responsible for the installation and efficient operation of the fertilizer plants in the public sector Pak Arab fertilizers incorporated on 5ovember /3, /-7> is the largest fertilizer comple+ G a living s!mbol of fraternal relations between pak and Hmirates of Abu :habi and the onl! fertilizer manufacturing facilit! producing compound fertilizer in the countr! with total authorized capital of 9s. /... million. "he compan! has two functional offices2 the corporate office presentl! located at Lahore and manufacturing plant at $ultan.

Vision
"o be a world class manufacturer of fertilizer and ancillar! products, with a focus on safet!, 'ualit! and positive contribution to national economic growth and development. (e will care for the environment and the communities we work in while continuing to create shareholdersF value.

Mission
"o be the preferred fertilizer compan! for farmers, business associates and suppliers b! providing 'ualit! products and services. "o provide emplo!ees with an e+citing, enabling and supportive environment to e+cel in, be innovative, entrepreneurial in an ethical and safe working place based on meritocrac! and e'ual opportunit!. "o be a responsible corporate citizen with a concern for the environment and the communities we deal with.

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Total Quality Management

Pak Arab Fertilizer Goal

It has been mentioned that PFL is under the control of ministr! of production G industries. It assigns them a one !ear goal to be achieved. It has set 'ualit! standard also it has fi+ed demand. (hatever is the demand its marketing branch which is in Lahore deals with it. It is called 5F$L.

Or anizational Structure
Pak Arab Fertilizers Limited <PFL= is a private limited compan! having a Doard of :irectors comprising of // members including the )hairman2 %i+ $embers 9epresenting 5F) and five $embers from A:5&) <Abu :habi=. "he Doard of :irectors has appointed a full time managing director. "he $anaging :irector as )hief H+ecutive of the compan! is responsible for the efficient management and operation of the plants. "here are four general manager assisting $anaging :irector. "he! are2 GM Finance! GM Manu"acturin ! GM Commercial! an# GM Au#it$ ;nder each general manager, there are two or three senior managers. ;nder senior manager, there are manager then assistant managers and finall! supervisors. "he organizational structure of corporate office is broadl! designed into four cells based on e+pertise and functions, namel! the Personnel 8roup, headed b! Personnel $anager, the Finance 8roup, headed b! 8eneral $anager <Finance=, the Planning 8roup, headed b! 8eneral $anager <Planning=, and the %ecretarial 8roup, headed b! %ecretar!. Desides evolving compan! s $anagement policies and procedures, the function of the corporate office is also to render advisor! services to the $anufacturing plant. "he Functional heads in the corporate office report to $anaging :irector directl!. After board of directors its managing director under managing director is the general manager <manufacturing=, general manger <finance=, secretar! of PFL and general manager audit.

Pak Arab %epartments

5ine important departments e+ist in Pak Arab fertilizers2 Production division, "echnical G planning division, Hngineering :ivision, )ommercial department, %afet! operations G environment department, Inspection department, I.9 department and $edical services department.

Ma&or Competitors
"heir competitors are Hngro and FF) in case of urea production. Cow )A5 G 5P the! have gained the monopol! while in urea PFL has also a competitive edge since it has maintained its standard so far.

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Total Quality Management

Pro#ucts
Pakarab Fertilizers Limited has been manufacturing and marketing I)ompound FertilizersI in Pakistan for the last >4 !ears and offers products that are safe, consistent in 'ualit! and are environment friendl!. (orking towards providing Ibalanced nutritionI to the crops, the )ompan! provides fertilizers for all crops and for the correct stage of growth. Pakarab Fertilizers Limited also offers a wide range of other products that mostl! stem from upgraded gas and chemicals coming out of the fertilizer production plants. Its major products include 5itro phosphate <5P=, )alcium Ammonium 5itrate <)A5=, ;rea, Ammonia, 5itric acid and ;tilities.

'reak Even
Pak Arab fertilizer has been running in profit since /-4A. It is profit seeking this fact can be depicted in the sense that A bonuses are offered at the end of !ear along with certain other reinforcements like a pa! * remuneration of two months is given as a reward.

Mana ement (eam o" Pakarab Fertilizers

$uhammad Arif Cabib <)hairman= $uhammad Abad @han <Advisor to )H&= #adeer Ahmed @han <:irector &perations= $uhammad Jahir <:irector $arketing= $uhammad %aleem Jafar <8eneral $anager Projects=

$r. Hjaz Cussain @han <%enior Production $anager=

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%istribution network
For commercial affairs G marketing there is a compan! for 5F) in Lahore named 5F$L <5ational Fertilizer $arketing limited=. Cead office of Pak Arab for commercial dealing is also in Lahore. Import G e+port dealing office is in @arachi. $: of the compan! is responsible for efficient management G operations of the plants and assisted b! three divisional heads2 GM )Manu"acturin *! GM )Finance*! GM )Corporation + Commercial Secretary*

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Total Quality Management

Operations o" PakArab "ertilizers ,imite#

Positionin Strate ies
Pak Arab fertilizers limited is a KP9&:;)" F&);%L organization because2 /. %tandardized fertilizers are offered with high volumes. 3. Longer life c!cle. >. An entrance M e+it strateg! favoring a ver! late e+it because fertilizers are alwa!s in use. 1. )onsistent * fi+ed G good 'ualit! 6. %hort deliver! times. A. Low cost in care of urea.

%escriptive -nputs + Outputs

9ock phosphate is the input in 5P plant which is dail! consumed almost 7/. tons in 5P production whereas natural gas has the dail! consumption of 64 million cubic ft. .$ Ammonia Initiall! the production was designed to produce -/. metric tons per da!. "he capacit! was enhanced to -A. M /... metric tons per da! with the installation of organic pure age gas recover! or rehabilitation unit in /-4A. "he process uses steam, air G natural gas as raw materials. Ammonia 5C> consisting of one part of nitrogen used as an intermediate for the production of all nitrogenous fertilizers. 5atural gas, containing about 44? the h!drogen re'uirements of ammonia whereas nitrogen is obtained from air. /$ 0rea Plant ;rea plant has designed dail! production capacit! of 34. metric tons of prilled urea. Ammonia G carbon dio+ide are the raw materials for the production of urea. "he prilled urea contains 1A? of nitrogen nutrients. 1$ 2itric aci# plant 5itric acid, re'uired as an intermediate for the production of nitro phosphate and calcium ammonium nitrate fertilizer is produced in two plants. Doth processes use ammonia G air as raw material. 3$ Calcium Ammonium 2itrate
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Total Quality Management "he plant has dail! designed capacit! of /6.. metric tons of pilled fertilizer grade calcium ammonium nitrate )A5 containing 3A.6? nitrogen nutrient. 4$ 2itro P5osp5ate Plant "he plant produces /./6 metric tons per da! of nitro phosphate 5P. 5P is a comple+ fertilizer containing 3>? of each of nitrogenous G phosphates P3&6 nutrients. "he plant, which is the first comple+ fertilize plant in Pakistan is based on carbon process using of phosphate rock, nitric acid and ammonia as raw materials. 6$ 0tility + Ancillary Facilities "he comple+ generates power for its internal re'uirements through three I$( turbo generators driven b! steam condensing turbines. "he steam is generated b! three gas fired boilers each producing 46 metric tons of steam per hour. "hese boilers also provide steam for urea, 5P G )A5 plants. 9aw water for demineralization unit G other plants is obtained through tube wells, located within the factor! site. "he comple+ has 'ualit! control laboratories, workshops, hospital, canteen, spare part ware houses and a residential colon!. 8ross functional coordination is done b! the gross functional coordination b! the coordination engineers who coordinates with the other departments. "he degree of productivel! is fi+ed.

Operations Cost
It has alread! been mentioned that )A5 have been produced in 5F) s onl! project Pak Arab which has got monopol! in their production. "herefore the )A5 cost is ver! much high. For its is the onl! one for its production therefore no compromise on its cost so far as urea G )A5 concerned their prices is less as compared to the 5P. %ince for the production of 5P <9ock Phosphate= is imported from Bordon, $orocco. Previousl! 8overnment was providing subsid! but that was curtailed and its cost was raised.

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Process Mana ement at PakArab "ertilizers ,imite#

Process C5oice7
PakArab Fertilizer is using a continue process. "he! are continuousl! producing the same standard products. Hach product has its flow process and producing a high volume of standardized product.

Vertical -nte ration7

Nertical integration is the degree to which a firmFs own production s!stem handles the suppl! chain from raw materials to final consumer. IDackward integrationI represents movement towards the sources of raw materials and parts.IForward integrationI means that firms own more channels of distribution, such as its own distribution centers <warehouses= and retail stores. In terms of backward integration, PakArab produces some of its raw materials such as ammonia and nitric acid while the main raw material i.e. rock phosphate is purchased from $orocco and Bordan. PakArab Fertilizer onl! produces the fertilizer. Product distribution is the responsibilit! of 5F$L. %o in this wa!, there is no forward integration.

8esource Flexibility7
9esource fle+ibilit! is the ease with which e'uipment and emplo!ees can handle a wide variet! of products, output, levels, duties and functions. PakArab Fertilizers has fle+ible workforce but its e'uipment are fi+ed and specific to specific production plant.

Customer -nvolvement77
PakArab Fertilizer has no direct contact with customers. "he customer relationship is arranged and maintained b! marketing section, which is in Lahore.

Process C5arts7
A process chart is an organized wa! of recording all the activities performed b! a person, b! a machine, at a workstation or on materials. Pakarab Fertilizer is using process charts and process flow for all its products i.e. ammonia, urea, nitric acid, )A5 and 5P.

Capacity
)apacit! is the ma+imum rate of output for a facilit!. )apacit! planning is central to the long0term success of an organization. "he operations manager must provide the capacit! to meet current and future demand or else the organization will miss opportunities for growth and profits. )apacit! plans are made at two levels. Long0term capacit! plans deal with investments in facilities and e'uipment. %hort0term capacit! plans focus on work0force size, overtime budget, inventories
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Total Quality Management and decisions. PakArab is one of those few plants in the world, which are producing compound fertilizers. %o its demand within the countr! is still to be fulfilled. Its plants have average functional ages of /.0/3 !ears. Dut all of these plants are much older than the specified ages.%o maintenance costs plus time are making them valuable to decreased output. "hus capacit! planners have to cater about all these factors. Plants are functioning for 31 hours in three working shifts. Dut an important point is that da! b! da! the outputs of the plants are decreasing and making it inevitable to either increase the facilities or to install new plants or to subcontract with other plants <which is most difficult because other companies such as Fauji Fertilizers, etc. have not got such compound fertilizers plants =

(otal 9uality Mana ement at Pakarab Fertilizers ,imite#

"he! have fi+ed 'ualit! standard the! never distract from those standards. 5F) is alwa!s recognized b! the standard products the! are not onl! conscious about their 'ualit! but also about the social responsibilit! the! have developed a treatment plant which is known as the Affluent "reatment plant for the neutralization of waste material. In addition to this to maintain a consistent 'ualit! 40/. chemists are allocated for ever! shift. "he! check ever! plant according to its re'uirement. For e+ample some plants re'uire to be checked after ever! hour and some ma! re'uired to be checked after ever! >01 hours. "he! have written sample composition of different materials at different stages of production.

(9M implementations in Pakarab Fertilizers ,imite#

Employee empowerment Hmplo!ee empowerment is a strateg! of Pakarab that enables its emplo!ees to make decisions about their jobs. Hmplo!ee empowerment helps emplo!ees own their work and take responsibilit! for their results. Hmplo!ee empowerment helps emplo!ees serve customers at the level of the organization where the customer interface e+ists. PakArab is satisf!ing their internal suppler b! empowering the workers. "his means to allow them to make decisions on things that the! can control. "his not onl! takes the burden off the supervisor, but it also motivates these internal suppliers to do better work.

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Total Quality Management Continuous improvement For continuous improvement, there is 'uantit! lab, available to check the 'ualit! of raw material as well as of finished goods. In case of an! problem in process different problems solving tools are used to monitor the progress of project. )hecklist, histogram, pareto charts etc, are used for improving 'ualit! and performance. "here are some moral values that Pak Arab has from for its emplo!ees. It is PakArab Fertilizer s ongoing effort to improve products, services, or processes. "hese efforts can seek IincrementalI improvement over time or IbreakthroughI improvement all at once. :eliver! <customer valued= processes are constantl! evaluated and improved in the light of their efficienc!, effectiveness and fle+ibilit!. PakArab is ver! conscious for the continuous improvement. "he! believe that an!one can never be satisfied with the method used, because there alwa!s can be improvements. )ertainl!, the competition is improving, so it is ver! necessar! to strive to keep ahead of the game. Problem solvin approac5 %ome companies have tried to improve b! making emplo!ees work harder. "his ma! be counter0productive, especiall! if the process itself is flawed. For e+ample, tr!ing to increase worker output on a defective machine ma! result in more defective parts. Dut Pak Arab is using the smarter working strateg! not harder. And the! e+amining the source of problems and dela!s and then improving them what is needed. &ften the process has bottlenecks that are the real cause of the problem. "hese must be removed. :orker su estions

(orkers are often a source of continuous improvements. "he! can provide suggestions on how to improve a process and eliminate waste or unnecessar! work. Pak Arab takes suggestions from their workers. Employee -nvolvement For emplo!ee involvement, Pak Arab provides developments programs <training=, awards <Long service award etc=, incentives, bonus, and environment. "he emplo!ee also participates in the decision b! giving suggestion for improvement. Et5ics Hthics is the discipline concerned in PakArab fertilizers Limited with good and bad in an! situation. It is a two0faceted subject represented b! organizational and individual ethics. &rganizational ethics establish in PakArab fertilizers Limited a business code of ethics that outlines guidelines that all emplo!ees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. -nte rity In PakArab fertilizers Limited Integrit! implies honest!, morals, values, fairness, and adherence to the facts and sincerit!. "he characteristic is what customers <internal or e+ternal= e+pect and deserve to receive. People see the opposite of integrit! as duplicit!. According to PakArab fertilizers Limited "#$ will not work in an atmosphere of duplicit!. (rust
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Total Quality Management It is philosoph! of PakArab fertilizers Limited that "rust is a b!0product of integrit! and ethical conduct. (ithout trust, the framework of "#$ cannot be built. "rust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk0taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. "rust is essential to ensure customer satisfaction. %o, trust builds the cooperative environment essential for "#$. (rainin $anaging director of PakArab fertilizers Limited said that "raining is ver! important for emplo!ees to be highl! productive. %upervisors are solel! responsible for implementing "#$ within their departments, and teaching their emplo!ees the philosophies of "#$. "raining that emplo!ees re'uire are interpersonal skills, the abilit! to function within teams, problem solving, decision making, job management performance anal!sis and improvement, business economics and technical skills. :uring the creation and formation of "#$, emplo!ees are trained so that the! can become effective emplo!ees for the compan!. 9uality7 According to PakArab fertilizers Limited the definition of 'ualit! is the totalit! of all the features and characteristics of a product or service that bear on its abilit! to satisfied stated and implied needsI 9uality Control7 #ualit! )ontrol is the use of techni'ues and activities to achieve, sustain, and improve the 'ualit!. It involves integrating the following related techni'ues and activities2 .$ /$ 1$ 3$ 4$ 6$ %pecifications of what are needed. :esign of the product or service to meet the specifications. Production or installations to meet the full intent of the specifications. Inspection to determine conformance to specifications. 9eview of usage to provide information for the revision of specifications if needed. ;tilization of these activities provides the customer with the best product or service at lowest cost. "he aim should be continued 'ualit! improvement.

;$ Statistical 9uality Control7 %#) is the branch of 'ualit! control. It is the collection, anal!sis, and interpretation of data for use in 'ualit! control activities. %P) and acceptance sampling are the two major parts of %#). #ualit! control is involved with activities of specification, design, production or installation, and review of usage. #ualit! assurance is involved with these activities as well as the entire 'ualit! s!stem. All the planned or s!stematic actions necessar! to provide ade'uate confidence that a product or service will satisf! given re'uirements for 'ualit! is called 'ualit! assurance. It involves making sure that 'ualit! is what it should be. "his includes a continuing evaluation of ade'uac! and effectiveness with a view to having timel! corrective measures and feedback initiated where necessar!. Ob&ectives7 "he objective of the Pakarab 'ualit! program can be summarized as under2
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Total Quality Management "o produce high 'ualit! product )onforming to the standard specification #ualit! check of the purchased material helps in achieving the re'uired specification. Inspection of the various maintenance jobs help in gaining huge saving b! reducing the maintenance error cost (eight and packing check before dispatching help in building the good image in customer mind.

Sta es7 #ualit! is checked mainl! at four points2 Purchased material H'uipment and maintenance activit! check (eight and packing check at the time of loading. Product 'ualit! checks in laborator!.

-nspection (ests7 Pakarab fertilizer has variet! of e'uipment used for checking the conditions of e'uipment and maintenance and repair activities. %ome of the major tests applied are as under2 Nessels and shells thickness monitoring Nibration checks at rotar! e'uipment "emperature and pressure checks (elding tests like d!e penetrating Dalancing of rotar! e'uipment check 9adiograph! and +0ra! tests of the material are conducted b! the contracted firm.

2ew Materials an# E<uipments7

In the first stage all the incoming materials and e'uipment is inspected b! the inspection department. "he! inspect the specifications of the incoming materials and e'uipment as mentioned in the contract. In case of raw materials, the 'ualit! laborator! checks the 'ualit! of the raw materials. If the materials or e'uipment miss matches to the stated specifications or 'ualit! whole the lot is to be rejected.

Process 9uality7
"he #ualit! )ontrol Lab staff is present 31 hours in ever! plant. After each hour the Lab staff draws a sample from different stages in the plant and sends it to the lab for checking the #ualit!. #ualit! )ontrol Laborator! is working under the 8eneral $anager "echnical G Planning. "he working boss of this laborator! is %H5I&9 $A5A8H9 <Lab=*;5I" $A5A8H9. (ork scheduling in the main lab is as follows2 Four persons are working in one shift under a shift in charge. "here are > shifts working per da!. "his main lab has a %ub Lab, which is called Plant Laborator!, which is supervised b! supervisor."his plant laborator! working under the chemist of main laborator!. (ork scheduling in this plant lab is same as main lab2Four Persons working in

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Total Quality Management one shift of 4 hours under a shift supervisor. $ain lab is connected with Plant Lab G )ontrol 9oom 31 hours through telephone. Doth the laboratories are e'uipped with latest anal!tical instruments. Laborator! used different anal!tical techni'ues for assuring the 'ualit! of finished product as well as raw material.

9uality Control "or 08EA7

Dasic raw material used for the urea production is 5atural 8as. %o 'ualit! of natural gas must be checked. From this natural gas, h!drogen contents are used in urea. %o if h!drogen contents are less in 'uantit! then it affects the 'uantit! of finished product. $ain components of natural gas which are being checked are2 Met5ane Et5ane Propane 'utane Pentane "hese must be present in -3? in the gas. If these are less than -3?, then 'uantit! produced is reduced to some e+tent. "he second main component used in urea plant is carbon dio+ide <..3= which is produced as a b!0product in Ammonia Plant. "he 'ualit! of ..3 must be checked once a da!. Finished product is checked 3 times per shift <i.e.= 4 times per da!. 3 major components are present in urea fertilizer, which are2 Diurate </.6?= $oisture content <less than ..6?, above this causes damage to 'ualit!=.

9uality O" ,i"e "here is separate G well established housing colon! for people working there. Hmplo!ees living in this colon! are provided with man! facilities like electricit!, %ui gas, local telephones are free. "here is a market where all the basic necessities of life are available. "hree bank branches such as $)D, 5DP G CDL are there, for recreational activities. "wo clubs are there. &ne of them is for the officers and one for the workers. Functions are held on different occasions. "hree schools one is Hnglish medium and the other two are of urdu medium. Hmplo!ees whose children are stud!ing outside the colon! schools have been provided with the proper transportation s!stem. Hmplo!ees like engineers who are working but live outside the colon! are given separate transportation facilit!. Along with different facilities there is a blood bank, welfare trust and check posts are there. "wo rest houses are available for compan!

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(eamwork at PakArab Fertilizers ,imite#

"o become successful in business, teamwork is also a ke! element of "#$ in PakArab fertilizers Limited. PakArab fertilizers Limited with the help of teams receive 'uicker and better solutions to its problems. "eams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that ma! occur, and can get help from other workers to find a solution and put into place. "here are mainl! three t!pes of teams that PakArab fertilizers Limited adopt2 9uality -mprovement (eams or Excellence (eams "hese are temporar! teams with the purpose of dealing with specific problems that often re0occur. "hese teams are set up for period of three to twelve months. Problem Solvin (eams "hese are also temporar! teams to solve certain problems and also to identif! and overcome causes of problems. "he! generall! last from one week to three months. 2atural :ork (eams "hese teams consist of small groups of skilled workers who share tasks and responsibilities. "hese teams use concepts such as emplo!ee involvement teams, self0 managing teams and 'ualit! circles. "hese teams generall! work for one to two hours a week. ,ea#ers5ip It is possibl! the most important element that PakArab fertilizers Limited is using to implement "#$. It appears ever!where in organization. Leadership in "#$ re'uires the manager to provide an inspiring vision, make strategic directions that are understood b! all and to instill values that guide subordinates. In the PakArab fertilizers Limited all supervisors committed in leading their emplo!ees. PakArab fertilizers Limited ever! supervisor understands "#$, believe in it and then demonstrate their belief and commitment through their dail! practices of "#$. "he supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout the organization to provide focus, clarit! and direction. A ke! point is that "#$ has to be introduced and led b! top management of PakArab fertilizers Limited. )ommitment and personal involvement is re'uired from top management in creating and deplo!ing clear 'ualit! values and goals consistent with the objectives of the compan! and in creating and deplo!ing well defined s!stems, methods and performance measures for achieving those goals. 8eco nition to employees 9ecognition is an important element in the PakArab fertilizers Limited s entire "#$ s!stem. It provides recognition to emplo!ees of all level for both suggestions and achievements for teams as well as individuals. All Hmplo!ees of PakArab fertilizers Limited strive to receive recognition for themselves and their teams. :etecting and recognizing contributors is the most important job of a PakArab fertilizers Limited s top management. As people are recognized, there can be huge changes in self0esteem, productivit!, 'ualit! and the amount of effort e+horted to the task at hand. 9ecognition
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Total Quality Management comes in its best form when it is immediatel! following an action that an emplo!ee has performed. 9ecognition comes in different wa!s, places and time in PakArab fertilizers Limited such as2 Ways: It is given b! wa! of personal letter from top management. Also b! award ban'uets, pla'ues, trophies etc. Places: 8ood performers are recognized in front of departments, on performance boards and also in front of top management. Time: 9ecognition given at an! time like in staff meeting, annual award ban'uets, etc

Open Communication Mana ement

an#

=nowle# e

PakArab fertilizers Limited has open communication s!stem because it is a private organization so that all the emplo!ees of each level are to be encouraged to freel! communicate in decision making and problem solving. It binds ever!thing together. %tarting from foundation to roof of the "#$ house, ever!thing is bound b! strong mortar of communication. It acts as a vital link between all elements of "#$. )ommunication means a common understanding of ideas between the sender and the receiver. "he success of "#$ demands communication with and among all the organization members, suppliers and customers. In PakArab fertilizers Limited %upervisors keep open airwa!s where emplo!ees can send and receive information about the "#$ process. )ommunication coupled with the sharing of correct information. PakArab fertilizers Limited communication s!stem contains2 %ownwar# communication "his is the dominant form of communication in PakArab fertilizers Limited, it has open communication s!stem. Presentations and discussions basicall! do it. D! this the supervisors are able to make the emplo!ees clear about "#$. 0pwar# communication D! this the lower level of emplo!ees are able to provide suggestions to upper management of the affects of "#$. As emplo!ees provide insight and constructive criticism, top management of PakArab fertilizers Limited listen effectivel! to correct the situation that comes about through the use of "#$. "his forms a level of trust between supervisors and emplo!ees. "his is also similar to empowering communication, where supervisors keep open ears and listen to others. Si#eways communication In PakArab fertilizers Limited this t!pe of communication break down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner.

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Total Quality Management

Customer "ocus an# Satis"action

According to PakArab fertilizers Limited a satisfied customer is the best business strateg! of all compan! is be dramaticall! willing to focus on the customer at all costs. )ustomer Focusing is a techni'ue of PakArab Fertilizers Limited for identif!ing the customers, products*services, 'ualit! characteristics, and performance measures which are most important to their business. $anagers often take it for granted that all staff members are working towards the same customer oriented objectives. )onducting a session in the wa! described below will show that this is often not the case, and will contribute significantl! towards correcting the situation. Pak Arab fertilizer offers best 'ualit! products with fast deliver! time to the customers. "hese 'ualit! products are being offered at reasonable prices. 5ame of Pak Arab is a s!mbol of a 'ualit!, which provides satisfaction in terms of 'uantit!, and 'ualit! to its customers.

Support to Customer
PakArab fertilizers Limited know that its long0term success is linked to the success of the thousands of customers which are farmers who grow crops. "hatFs wh! PakArab fertilizers Limited work on0the0ground with farmers and educate them the proper use of fertilizers to help improve !ields. PakArab fertilizers Limited wants to enhance farm productivit! G profitabilit! b! improving farmerFs knowledge and perception on balanced fertilizer use. (ec5nical Services (eam PakArab fertilizers Limited have a team of highl! 'ualified and e+perienced "echnical %ervices &fficers, serving the farming communit! throughout the countr!. "eam is e'uipped with the latest scientific knowledge, updated time to time, about crop production and fertilizer management practices and balanced fertilizer use to restore soil fertilit! and enhance farm !ields. "echnical team uses state of the art methodologies and tools to educate the farming communit! for improving their knowledge to improve crop !ields, farm income and profitabilit!. "eam has a close liaison with the 8overnment and private research institute, seed and pesticide companies for da! to da! updates on new products and technologies being used in the field. Activities "or t5e Services o" "armin Community7 Farmers are regularl! contacted b! the "echnical field staff through various wa!s and means. "he basic purpose of meeting farmersF is to educate them on crop G fertilizer management to get ma+imum output. "his educational program is run on well planned activities. Farmers are contacted through different processes those are e+plained below2 Seminars: For mass communication of PakArab fertilizers Limited s messages, seminars are organized in each territor!. "echnical services staff, fertilizers dealers and sales team is involved in this activit!. Farmers from within the territor! are invited to attend. %eminars are arranged prior to the planting season of each crop. Farmers are appraised on the latest crop management techni'ues, fertilizer re'uirements and its application strategies to get

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Total Quality Management ma+imum benefit G output. ;suall! 30> seminars are arranged in each territor! on each major crop. Product demonstrations & Field days: Fertilizer pla!s an important role in improving crop !ields G maintaining soil fertilit!. It contributes more than 6. ? towards !ields, provided a balanced combination is applied at proper time. Fertilizer demonstrations are laid out at farmersF field to educate and convince the farmers for balanced fertilizer use. Field da!s are held at various crop growth stages and at harvest to show the effect of balanced fertilizer use. Research trials: PakArab fertilizers Limited have a close liaison and interaction with the government educational G research institutes. 9esearch trials on fertilizer use efficienc!, application timing, methods of application and re'uirements of new cultivars are planned, discussed with the scientists and laid out at the research stations. "he results are then shared with the farming communit!. Team Training: "echnical training are arranged regularl! to update the team with the latest knowledge and innovations in agriculture. Cighl! 'ualified scientists from various educational G research institutes are invited to impart these training. "his helps in improving technical skills of the team for effective farmersF education. Training of FFCL field staff & Allied Industry Field Staff: PakArab fertilizers Limited regularl! arrange training programs for its field staff and other industr! <seed, pesticide, sugar mills etc= staff on crop management and balanced fertilizer use. "his aids in improving field staff knowledge and perception to carr! out farmersF education programs effectivel!. Publication and distribution of Technical Literature: "echnical bulletins are published on various crops. "hese bulletins are placed at dealersF shops and are also distributed directl! to the farmers at various occasions. "hese bulletins give hands on tips for better crop production and fertilizer management to get ma+imum benefit. iological Control Ser!ices: Pakarab Fertilizers Ltd. has established Fatima Diological Laborator! near Fatima %ugar $ills at %anawan, @ot Addu. Insect predators <"richogramma and )hr!soperla carneae= are mass multiplied in the laborator! and are then supplied * distributed to the growers for release in the field. "richogramma is an egg parasitoid which destro!s the eggs of sugarcane borers, maize and sorghum borers, vegetable pests and different moths. )hr!sopa is a predator and pre!s on man! insects like sugarcane P!rilla, "hrips, Aphids, mites and (hite Fl!. It is named as Aphid Lion b! the scientists. "hese predators can be used to control insect pests of various crops, like, sugarcane, cotton, maize, sorghum, vegetables and citrus. Again the effort aims at the reduction in pesticide use, control insects biologicall! and minimizes environmental pollution. Diological pest control is the onl! alternative of pesticides for pest control in crops and orchards. "his method of insect control is cost effective, eas! to use and environment friendl!.

Customer 8elations5ip Mana ement

Farm !isits " indi!idual contacts: PakArab fertilizers Limited s technical field staff pa!s visits to individual farms. :etailed discussions are made to address various farming issues. Fields are visited, problems are identified and solutions are suggested. Individual farm visits provide an opportunit! to effectivel! interact with the individual farmer, anal!ze farm issues and suggest remedial measures at the spot. Soil Sam#le Analysis: %tate of the art soil anal!sis laboratories have been established at PakArab fertilizers Limited fertilizer plant sites. "hese laboratories are e'uipped with the latest e'uipments for soil anal!sis. %oil samples are collected from farmersF field, anal!zed free of cost and results, along with recommendations, are delivered to the farmers at their door step
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Total Quality Management Farmers$ meetings: &ther than seminars, small farmersF meetings are also arranged. "his helps in pa!ing proper attention to a group of farmers, educate them and to listen to their concerns. "hese meetings are held starting from the planting season till the completion of fertilizer application to the crops.

,on >(erm Commitment an# Forecastin PakArab "ertilizers ,imite#

at

PakArab Fertilizers Limited alwa!s look at long term commitment, it full fill its short term goals to meet long term objectives, its management focus on long term goals and objectives because the! know that to improve 'ualit! is not a one da! task. Improving 'ualit! re'uires lot of efforts with long term orientation. A forecast is the prediction of future events used for planning purpose. Accurate forecasts allow schedulers it uses machine capacit! efficientl!, reduce production time end cut inventories. PakArab Fertilizers Limited is taking advantage of computer. "he computer was installed in /-4A. Defore this all the process of central ledger s!stem cash book s!stem and inventor! s!stem was been processed at Pak %audi firstl! in the s!stem*>A was introduce but due to the verge size handing, the modern s!stem was introduced which is A%*1... It is nine time grater in capacit! G speed it has provided man! facilities in man! facilities in man! writing reports. "he date received from various departments inter into computer b! accounts department. A ver! find application is in KInventor! indenting and for costing s!stem. "his s!stem is a part of inventor! management s!stem which consists of indenting, for costing. :emands indent items this t!pe of indent is raised on demand of uses. "he indent are sends his demand along with complete specifications to stores. (hen the specifications are entered into the computer and then a print out of the indent is sent to the inspection Hngineer for further check up of the specification and then the indent after approval of competent authorit! is sent to procurement for purchase of items. %tock those indents. "his t!pe of indent is generated when the stock of certain items becomes e'ual to order point. Again specification are entered in the computer the process continues for two weeks and a print out of demand items is produce after going to inspection cell, these indents are then sent to procurement department for insurance purchase order after obtaining 'uotations. 5aOve forecast method is sometimes used and in the same wa! forecast module is used.

(ime
As it is concerned with the comple+ chemical project therefore the time consciousness is alwa!s taken into account. "he factor! runs for 31 hours a da! which is accompanied b! a da!s a week. "here are >A6 da!s in a !ear out of which >>. da!s are fi+ed for the working while >6 da!s are fi+ed for the shut down. Hven though it is shut down but most of the work is done in these >6 da!s. Previousl! shutdown was done in April and ma! but now it is done in 5ovember and :ecember. )leanliness of pipes, turbines and machines is done wear G tear and depreciation is to be recovered. &n time deliver! is done of the high lighting feature of Pak Arab fertilizer limited. As it is concerned onl! with the production no customer contact is there. "he responsibilit! of deliver! and distribution goes to 5F$L. 5F$L order the :FL for the deliver! of the fertilizer which is taken b! 5F$L wagons, trucks and pickups. 5F$L is now directl! responsible for the deliver! of the fertilizer if it is e+cess of order then it is stored in 5F$L warehouses.

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Total Quality Management

-nventory Mana ement at PakArab "ertilizers ,imite#

Inventor! is one of the most e+pensive assets of man! companies, representing as much as 1.? of total invested capital. &peration managers, around the globe have large long recognized that good inventor! management is crucial. &n one hand a firm becomes dissatisfied when an item is fre'uentl! out of stock. "hus companies must strike a balance between inventor! investment and customer service level.

-nventory Mana ement in PakArab7

In Pakarab $aterial %torage :epartment mentions inventor!, which is under the %enior $anager. All the Inventor! 9ecord is kept in computer. "here are two t!pes of main inventories in Pakarab2 9aw $aterial Inventor! $aintenance*9epair*&perating %upplies Inventor!

8aw Material -nventory7

"hree main t!pes of raw materials are used in the fertilizers. Air 5atural 8as 9ock Phosphate

Air7
Air is used as a nitrogen source. inventor!. Air is present in abundance so no need to store it as

2atural Gas7
"he second main raw material is 5A";9AL 8A%. For Pakarab plant there is online continuous suppl! form %ui. %o there is no need to store it is as inventor!. "he plant management with %ui0gas :epartment signs !earl! contract, $anagement told them about their demand. As discussed with 8eneral $anager &perations $r. 8. 9. A@C(A5:, he told that the! alwa!s get their re'uired suppl!. For this proper suppl! of 5atural 8as pumping station is also working in $ultan. :ail! consumption of 5atural gas for proper operation of plant is 64 million cubic feet

8ock P5osp5ate7
"he third main raw material is 9ock Phosphate. It is an imported product. It is imported from $orocco G Bordan. Pakarab management signed contract with the companies present in both countries. $anagement told them about their re'uirement for the whole !ear and
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Total Quality Management get 9ock Phosphate in different consignments. From Bordan G $orocco the 9ock is transported on ship to @arachi port. (hen rock is unloaded from ship then it is loaded on the railwa! boogies on which rock reached directl! to Pakarab $ultan. $anagement has !earl! contract with railwa!s. 9ailwa! line is well0maintained up to the plant. 9ock is unloaded here from 9ailwa! boogies G then with the help of factor!Fs own locomotives transported this to warehouse. In warehouses inspection team inspect this rock if it is approved then used in production. Inventor! is kept for almost 160A. da!s. Lead0time for the rock phosphate is almost > weeks dail! consumption of rock phosphate is7/. tons. Maintenance?8epair?Operatin Supplies -nventory7 $9& inventor! is divided into two parts2 %tock Items :emand Items

Stock -tems7
"hese items are stocked for purpose of smooth operations or functioning of plants. "hese items are purchased locall! as well as foreign markets. For these stock items order size is fi+ed at the start of !ear but it ma! review after see the consumption rate. For these stock items indents are released b! the store in charge at reorder point.

%eman# -tems7
"hese items are purchased on the demand of plant in charges. Plant in charges foresee the need of certain item and make indent and forwarded it to the store incharge or commercial department. "hen the! decide to purchase it from local market or from foreign market.

-ssue -tems7
%ome ver! costl! items which are kept in inventor! onl! one or two, are ordered at the same time when are issued to an! consumer. "hese are KAL items in AD) anal!sis.

A'C Analysis7
For stock items AD) categorization has done. AD) categories divide on0hand inventor! into three classifications on the basis of annual rupee volume. C,ASS A7 )lass A items are those on which the annual rupee volume is high. In class A onl! those items are included which priced more than 9s. /36,.... "hese items are not more /.? of the total inventor! but the! represent 4.? of the total inventor! cost. )lass A items are ver! costl! such as2 )ompressor 9otors (ater Pumps Platinum 8auze %eals 5ickel )atal!st Platinum is ver! high priced item, / kg priced 9s. -..,.... )lass A consists of
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Total Quality Management almost >3... items. "hese are ver! necessar! to keep in Inventor!. C,ASS '7 )lass D contains those items, which price less than /36,... and not less than 6.,.... "hese items represent 1.? of the items and /6 to 36? of the total rupee value. C,ASS C7 )lass ) contains those items which prices less than 6..... "hese items represent 6? of annual rupee amount but 6.063? of the total item. "here are almost 1.,... items are present in stock inventor! G annual turnover of stock items is 9s. 6>. million.

%aily Movement 8eport7

%tore manager maintains a report, which consists of all the receipts of new items and issuance of items to different departments. &n the basis of :$9 new indents are placed to replenish the inventor!. ,ea# (ime7 For local purchases <within Pakistan=, lead0time is >0A weeks. For foreign purchases, lead0 time is > months.

Computerize# -nventory Mana ement System7

Pakarab Fertilizer has well over 1.,... items on its inventor!. Purel! from manufacture of main products are concerned, the onl! inputs are natural gas, rock phosphate, utilities <power, water, steam, etc.= and air. 5atural gas is on time supplied 31 hours under contracted obligations b! %ui 5orthern 8as. "his gas is to be supplied at certain pressure <16 kg*cm3= along with certain 'ualit! re'uirements <discussed in 'ualit! control section= and at a certain heating value <D"; standards=. &f late certain problems are being faced in the D"; value, which affects the total outputs, so no such inventor! of gas is maintained. For utilities, main power lines are available, as a backup, the! have > power generation units, capable of meeting their own power generation needs no inventor!. "he onl! item, which is stocked as inventor!, is rock phosphate. "his is imported from $orocco*Bordan, according to a !earl! schedule. Lead0 time is > weeks, and on an average, two months stock is ordered. Defore go into details of the computerized s!stem, I would like to give the material coding s!stem followed at Pakarab fertilizer.

Measurin -nventory7
In Pakarab, each store has its own wa! of measuring the inventor!. Cere we will discuss all the method of measuring the inventor! with giving specific references to the particular store. Countin 7 "his method is used for that kind of the product that is ph!sical in nature and countable. ;suall! the following stores use that method2 /. 3. P&L %tores )atal!st*)hemical %tore.
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Total Quality Management >. 1. 6. A. )ivil and %afet! %tore Packaging %tore %pare Parts %tore "ool and Card (are %tore

Estimation7
"his method is used for that kind of product, which is not countable. "he e+ample of that product is the major raw material like 9ock phosphate. "he incharge of the store estimate the 9ock Phosphate first b! seeing the capacit! of the store and then see the height and width of the 9ock Phosphate.

Measurin 0ncountable -nventories7

"his method is used for that kind of the inventor!, which is not countable. "he e+ample of that kind of inventor! is 8A% and AI9, which is used in the production process. As long as the 8A% is concerned it is contracted with the government of Pakistan and government is responsible for providing that specific amount to the PA@A9AD.

(rackin -nventory7
"racking method of inventor! is for the purpose to increase the smooth flow of operation and to increase utilization of the organization. 5ow that method is onl! relevant to the inventor!, which is countable. Pakarab is using the combination of different method to track the inventor!. For e+ample the spare parts store is having at the moment the inventor! of A.. million.

Material mana ement at PakArab "ertilizers ,imite#

Manu"acturin strate y PFL a product focused manufacturing form intend to use a make to stock strateg! in which the PFL hold items in stock for immediate deliver! there la! minimizing deliver! time. "his strateg! is feasible because most products followed companies like PFL produce high volumes of relativel! few standardized products for which the! can make reasonabl! accurate forecast. $ass production is used to define compan! using a make to stock strateg!. Decause PFL environment is stable and predictable therefore its competitive priorities are t!picall! achieve high 'ualit! at a lowest possible cost. "he! can compromise on cost but not on 'ualit!. %epartment O" Material Mana ement Pak Arab fertilizer has a material management department which takes core of the needs of the organization. "hese items can be of the dail! use as well as the items of higher value such as it can be a pencil or a platinum catal!st. 9aw materials, chemical and catal!st and packing material the! are dealt b! the department. "here are about 6.,... items which amount to 9s 6.. million in value. %enior material manager is the head of department. $aterial management is a difficult task so there are separate departments for purchasing, production control and distribution.
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Total Quality Management Purc5asin It is the responsibilit! of commercial department. Hach unit manager of the department is responsible for this purchasing is the management of ac'uisition process, which includes. /. %upplier )ontract. 3. 5egotiating contract. Inventor! management section has the important work in $$ b! ac'uisition process. 9ecognition of need the department when some material or an! needs spare part raises demand in the shape of indent or purchase re'uest indent. Purchase re'uest this purchase re'uest contains all the specification of the item, 'uantit! and desired 'ualit! and desired deliver! date. Indenting department gives specifications in purchasing re'uest and then gives it to commercial department. %istribution After producing finished goods, PHL sends it to 5F$L which is the marketing branch of 5F) as soon as possible trucks are waiting outside the factor!. %o there is a forward placement in PFL in PFL mostl! fertilization bags are distribute through trucks and trains keeping in view the customer item, %o there is a schedule for deliver! product it customer. Obsolescence an# #eterioration Hver! machine is surliest to deterioration for the compensation of this the sheet down period is carried out for >6 da!s it appreciate it again. Sa"ety stock an# anticipation inventory %afet! stock of different t!pes of inventor! including e'uipment and raw material is often considered 9ock phosphate has a lead time of si+ months. Anticipation inventory Anticipation inventor! is made to cope which the inventor! is made to cope with the uneven demand distribution. Material 8e<uirement Plannin "he concept of material re'uirement planning and master production schedule in PFL is that $P% and $9: gives production control, of purchasing and top management the information needed to plan G control business operations. It identifies their detail production and purchasing actions which need to be taken response to pa! to da! events. It also tries overall business planning to details operations through master scheduling function. "heir $9: s!stem comprises of three processes. /. D&$ 3. $P% >. Inventor! records
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Total Quality Management Part Community "he degree to which a component has more than one immediate part. It can be depicted that in PFL man! raw materials like %ui gas, water and rock phosphate is used in more than one fertilizer. "he objectives of factor! behind their $9P is /. :ecrease inventor! investment 3. :ecrease of our stock site for needed e'uipment >. Provident of planning priorities based on due dates. 1. 9ecords material based on dependent demand. 'ill o" Material "he main problem occurs in bill of materials. "he compan! want to make )A5 which is his one of the fertilizers now, compan! makes plan for the manufacturing of )A5 what t!pe of machiner! is used. 5ow along is the process or each process what is the re'uirement of the plant. Cow man! chemicals raw materials are regained for production of certain amount of )A5. Cow much spare parts are needed. In raw materials how man! metric feet sui gas is needed. Cow much rock phosphate should be imported. All the details are made for each product. Master Pro#uction Sc5e#ule &ne another important re'uirement in planning is $:%. "hrough $:s are indirectl! making rough capacit! plan. H.g. $P% of urea fertilizer base on targets G capacit! of firm. Firm checks what are true forecasted orders or what are actual targets given b! 5F). (hat is the time period of their manufacturing process. "he lead time description of each of the finished product is considered. -nventory 8ecor#s $aintaining inventor! records is the responsibilit! of accounts department in which there is a separate section for inventor! management in PFL. "he! maintain records of new records scheduled receipts inventor! errors, scrap losses, inventor! rejecting shipments G stock returns. Strate y to 'e 0se# Level chased or mi+ed strateg! which is to be followed mi+ed strateg! is followed for this purpose. -nventory Control System
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Total Quality Management Periodic review s!stem is used for the raw material.

F0(08E P,A2S "he e+isting Ammonia, 5P, and )5 * )A5 plant of PFL are in operation since /-74M7-. "he! have alread! outlived their economic lives and it is difficult to obtain sustain production * product 'ualit! from the e+isting plants in their present form at the rated capacities. "he rate of production would rather continue to decrease progressivel!. "he present operation of the plant is e+pensive because of increased maintenance cost, higher consumption of raw materials, spare parts, chemicals and fre'uent breaks down of pumps * compressors * e+changers etc. "he e+isting plants also suffer from high0energ! consumption. (ith the objective of achieving rated production capacities and decreasing the energ! consumption, PFL engaged various international consultants to carr! out through feasibilit! stud! of the plants. For the revamping of Ammonia and 5PM)5 plants, feasibilit! studies were conducted b! $*s. Caldor "opsoe of :enmark, $*s. ;C:H * DA%F of (. 8erman! G $*s B)I of Bapan respectivel!. "heir stud! reports have been received and criticall! studied b! PFL $anagement. "he proposals are under active consideration for implication after approval from 8overnment of Pakistan.

@ealt5! Sa"ety + Environment

)reating a %afe environment in all areas associated with our products is a priorit! at Pakarab. It is our polic! to ensure a hazards0free workplace and compl! with the best practices of product stewardship and the laws and regulations applicable to C%GH. Pakarab Fertilizers Limited is committed to assuring the 'ualit! of its products and services while ensuring that 5& CA9$ "& PH&PLH &9 "CH H5NI9&5$H5" occurs through its operations.

@ealt5! Sa"ety an# Environment Policy

Cuman safet! and Hnvironmental conservation is our priorit! and shall not be compromised as a result of business pressures. &ur goal is to achieve e+cellence in Cealth %afet! and Hnvironment and become a benchmark for industr!. In pursuit of this goal we are committed to the following2 (o Protect7 All persons involved in our activities, emplo!ees, customers, suppliers and communit!. "he Hnvironment in which compan! is operating. Dusiness assets and reputation of Fatima Fertilizer )ompan! Limited.

(o Comply7 Full! with all relevant C%H laws and regulations of the countr!.

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Total Quality Management

(o Strive For7 Annual improvements in our C%H performance. "he Fwell0beingF and %afet! of our emplo!ees 9educing and minimizing the production of waste %ocial acceptance of our business resources are ma#e

-n support o" t5e above we will ensure t5e "ollowin available7 C%H training, information and supervision %ufficient time, resources, e'uipment and finances

All emplo!ees must compl! with this polic! and the C%H procedures. "he! must activel! pla! a ke! role in ensuring the health and safet! of themselves and their colleagues and protecting the environment in which we operate.

Social Contributions an# Clean %evelopment Mec5anism

Pakarab :orker :el"are 'oar# )P::'* &n &ctober 4, 3./., an agreement was signed between 8overning Dod! of (orker (elfare Fund, $inistr! of Labor and $anpower and Pakarab Fertilizers Limited for the construction of $ukhtar A. %heikh $emorial (elfare Cospital, $ultan, at a cost of appro+imatel! 9s. 3 billion. ;nder the agreement, Pakarab (orkers (elfare Doard is being established as a Public0Private partnership between (orker (elfare Fund <((F= and Pakarab Fertilizers Limited for the efficient management and administration of the mone! to be allocated for the Project. For the establishment of the hospital 6.? will be contributed b! the ((F and the remaining 6.? will be contributed b! Pakarab Fertilizers Limited. "he total project cost of 9s. 3 billion does not include the land cost. Land for the Project is being provided b! Pakarab Fertilizers Limited. &nce completed, it will be a self sustaining hospital. $ukhtar A. %heikh $emorial (elfare Cospital will provide free kidne! and ps!chiatric treatment to all workers registered with H&DI or H%%I. "his is the first (orker (elfare Doard of its kind in the )ountr!.

Clean %evelopment Mec5anism )C%M*

8lobal warming has become the most important challenge the world is facing in the 3/st centur!. A lot of research and development is being done for curtailing greenhouse gas emissions. Following its accession to the @!oto Protocol of the ;nited 5ations Framework )onvention on )limate )hange <;5F)))= in Banuar! 3..6 Pakistan made the $inistr! of Hnvironment the :esignated 5ational Authorit! <:5A= for ):$ under the protocol. A ):$ cell was created in the $inistr! in August 3..6.

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Total Quality Management

Pak Arab Fertilizer an# -SO ABB.

I%& -../ is an international standard that gives re'uirements for an organization s %uality management system &'(S). It is part of a famil! of standards published b! the International &rganization for %tandardization <I%&= often referred to collectivel! as the KI%& -... seriesL or II%& -... famil!I. For this reason, !ou ma! sometimes hear !our suppliers refer to being KI%& -... certifiedL, or having an KI%& -...0compliant #$%L. "his will normall! mean that the! are claiming to have a #$% meeting the re'uirements of I%& -../, the onl! standard in the I%& -... famil! that can be used for the purpose of conformit! assessment. It is important to understand, however, that I%& is the bod! that develops and publishes the standard. "he latest version of I%& -../ was published in 5ovember 3..4, making onl! minor changes compared to the previous <3...= version. "he new revision aims primaril! to improve the clarit! of previousl! e+isting re'uirements in I%& -../23..., rather than introducing an! new re'uirements. For that reason, I%& -../23... and I%& -../23..4 can be considered to be e'uivalent for all practical purposes, though I%& -../23... will graduall! be replaced b! I%& -../23..4 until being no longer valid for conformit! assessment purposes b! /6 5ovember 3./. <two !ears after the publication of I%& -../23..4=. "he compan! was certified b! $*s %8%, ;@ Ltd. on August .4, 3..> for #ualit! $anagement %!stem <I%& -../23...=. "he certificate has e+pired on August .7, 3..A. "he compan! has initiated for recertification audit of #ualit! $anagement %!stem <I%& -../23...= b! another compan! $*s Nincotte International $edal Hast LL) :ubai, ;nited Arab Hmirates. "he certification audit is planned in near future after improving upon the current $anagement %!stem. Pak Arab Fertilizer used I%& -../. "he objective of using I%& -../ Pak Arab is to use its set of re'uirements that will provide the confidence that their supplier can consistentl! provide goods and services that2 $eet their needs and e+pectations and )ompl! with applicable regulations. "he! used I%& -../ re'uirements for wide range of topics, including their supplier s top management commitment to 'ualit!, customer focus, ade'uac! of resources, emplo!ee competence, process management <for production, service deliver! and relevant administrative and support processes=, 'ualit! planning, product design, review of incoming orders, purchasing, monitoring and measurement of their processes and products, calibration of measuring e'uipment, processes to resolve customer complaints, corrective*preventive actions and a re'uirement to drive continual improvement of the #$%. Last but not least, the! used re'uirement for supplier to monitor customer perceptions about the 'ualit! of the goods and services it provides. "he $: of PakArab fertilizers Limited said that we are an I%&0/1../23..1 certified )ompan! since 3..4 :5at is -SO .3BB.7/BB3C I%& /1../ is a generic standard2 8eneric means that the same standards can be applied2 Kto an! organization, large or small, whatever its product or service in an! sector of

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Total Quality Management activit! and whether it is a business enterprise, a public administration, or a government department.L "he I%& /1../ works to a P:)A model2 Plan2 Hstablish the polic! objectives, processes and procedures relevant to managing the s!stem :o2 Implement and operate the polic!, controls processes and procedures )heck2 Assess, measure performance against objectives, targets and report results to senior management Act2 "ake corrective and preventative actions based on the results of the internal Hnvironmental $anagement %!stem audit and management review or other relevant information, to achieve continual improvement of the s!stem It uses the three 9 s2 9educe, 9euse, and 9ec!cle. 'ene"its o" -SO .3BB.7/BB3 "he main benefits of a compan! following a recognized Hnvironmental $anagement %!stem are2

Increase the management of environmental risks within the business Increase customer base Full! demonstrate compliance to legal and regulator! controls Potentiall! reduce the cost of public liabilit! insurance Ceightened morale G motivation Celp reduce costs2 consumption, waste and rec!cling %hows an innovative and forward thinking approach to client 8reater competitiveness leading to higher profit potential I%& /1../ is full! compatible with other $anagement %tandards including I%& -../, D% &C %A% /4../ and I%& 37../

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Policy Statement o" Et5ics an# 'usiness Practices

Pakarab Fertilizers )ompan! Limited conducts its business with the highest ethical standards in full compliance with all applicable laws. Conest! and integrit! take precedence in all relationships including those with customers, suppliers, emplo!ees and other stakeholders. Et5ics an# 'usiness Practices )ompan! believes in conducting the compan!Fs business in a manner that respects, protects and improves the environment and provides emplo!ees with a safe and health! workplace. )ompan! conducts its business in an environmentall! responsible and sustainable manner. Hmplo!ees must be completel! familiar with the permits, Cealth %afet! and Hnvironment polic!, local laws and regulations that appl! to their work. All emplo!ees are e+pected to understand the laws and business regulations related to their work and compl! full! so that all shareholders, emplo!ees, customers, suppliers, stakeholders and the 8overnment have complete faith in the wa! compan! operate and that compan! s business decisions are made ethicall! and in the best interests of the )ompan!. Hmplo!ees are obligated to act in accordance with the compan!Fs code of Hthics and Dusiness )onduct and are restricted to using onl! legitimate practices in commercial operations and in promoting the )ompan!Fs position on issues before governmental authorities. Inducements intended to reward favorable decisions and governmental actions are unacceptable and prohibited. Hmplo!ees are prohibited from using their positions, compan! propert! or information for personal gain, and from competing with the )ompan!. Hmplo!ees are also prohibited from taking advantage from opportunities that become available through the use of )ompan! information, propert! or their position. Assets an# Proprietary in"ormation PakArab fertilizers Limited consider its compan!Fs assets, ph!sical and intellectual, ver! valuable. It has therefore an obligation to protect these assets in the interest of the )ompan! and its shareholders. Protection of the )ompan!Fs information is important for compan! s business. All emplo!ees are e+pected to know what information is proprietar! and which must not be disclosed to unauthorized sources. Hmplo!ees are responsible for appl!ing all available tools to manage the )ompan!Fs information resources and records.

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Total Quality Management

PakArab "ertilizers ,imite#Ds Employees PakArab fertilizers Limited believe that highl! engaged emplo!ees are the ke! ingredient in professional development and business success. "herefore, it invite emplo!ees to contribute their best and to avail the opportunities for improvement and growth. "he $: of PakArab fertilizers Limited sa!s that we are an e'ual opportunit! emplo!er and promote gender diversit!, self0development and innovation. (e provide emplo!ees with tools, techni'ues, and training to master their current jobs, broaden their skills, and advance their career goals.

PakArab fertilizers Limited believe that highl! engaged emplo!ees are the ke! ingredient in professional development and business success. "herefore, it invite emplo!ees to contribute their best and to avail the opportunities for improvement and growth. "he $: of PakArab fertilizers Limited sa!s that we are an e'ual opportunit! emplo!er and promote gender diversit!, self0development and innovation. (e provide emplo!ees with tools, techni'ues, and training to master their current jobs, broaden their skills, and advance their career goals. 8elations wit5 'usiness partners PakArab fertilizers Limited seek to do business with suppliers, vendors, contractors and other independent businesses who demonstrate high standards of ethical business behavior. &ur compan! will not knowingl! do business with an! persons or businesses that operate in violation of applicable laws and regulations, including emplo!ment, health, safet! and environmental laws. (e shall take steps to assure that our suppliers, vendors and contractors understand the standards we appl! to ourselves, and e+pect the same from them

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Conclusion
PakArab Fertilizers Limited is totall! "#$ based organization which meets all the demands of customers, it is I%& certified organization. Pakarab Fertilizers Limited is committed to produce 'ualit! products conforming product specifications. PakArab fertilizers Limited dedicate its selves for continual improvement in product 'ualit!, productivit! and profitabilit! through teamwork, motivation, safe operation, training and feedback to earn customer satisfaction and confidence. "he ke! performance of Pak Arab fertilizer is making profits b! which we can measure its success. (hile the distinguishing features are the monopol! in producing )A5 .in 5P the! had the monopol! in past but now it is also produced b! FF). Pak Arab Fertilizer Limited is a mega project and producing the 'ualit! products. Pak Arab achieves the product of team effort. All PAF emplo!ees share the achievement of the compan! and have ever! reason to feel proud of what has been achieved so far. It s safe, speed!, and efficient and environment friendl! operations will help the nation in accelerating and sustaining economic growth and development in agriculture felid. "he e+isting Ammonia, 5P, and )5 * )A5 plant of PFL are in operation since /-74M7-. "he! have alread! outlived their economic lives and it is difficult to obtain sustain production * product 'ualit! from the e+isting plants in their present form at the rated capacities. "he rate of production would rather continue to decrease progressivel!. "he present operation of the plant is e+pensive because of increased maintenance cost, higher consumption of raw materials, spare parts, chemicals and fre'uent breaks down of pumps* compressors * e+changers etc. "he e+isting plants also suffer from high0energ! consumption. (ith the objective of achieving rated production capacities and decreasing the energ! consumption, PFL engaged various international consultants to carr! out through feasibilit! stud! of the plants. For the revamping of Ammonia and 5PM)5 plants, feasibilit! studies were conducted b! $*s. Caldor "opsoe of :enmark, $*s. ;C:H * DA%F of (. 8erman! G $*s B)I of Bapan respectivel!. "otal cultivated area of Pakistan <7.?= is irrigated through canals s!stem and tube wells while the rest of area is full! dependent on rain falls, about >6? of land is under cultivation."here are lot of drawbacks in agriculture sector of Pakistan one of them is the ;se of natural fertilizers, if chemical fertilizer is used it is of lower 'ualit! having less effectiveness. "he PFL $anagement has man! proposals, which are under active consideration for implication after approval from 8overnment of Pakistan.

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8e"erences7
(e collect the above information through our personal visit at PakArab fertilizers Limited $ultan and also from Internet thorough following websites2
www.edb.gov.pk*)orporations*5F)*Pak?3.Arab.pdf

www.privatisation.gov.pk*industr!*Pakarab0new.htm
www.alacrastore.com*compan!0snapshot*PakPArabPFertilizersPPvtPLtd0/.167A-

0 36k www.dawn.com*3..>*./*36*ebr3.htm http2**www.fatima0group.com*pakarabfertilizers*aboutus.php

Contact -n"ormation

@EA% OFF-CE "rust Plaza L$# 9oad, $ultan. "el Q 2 R-3 <A/= 16/3.>/03 Fa+ Q 2 R-3 <A/= 16//A77

P,A2( S-(E @hanewal 9oad, $ultan06-A. "el Q 2 R-3 <A/= -33..33, -.A/.... Fa+ Q 2 R-3 <A/= -33..3/

MA8=E(-2G OFF-CE "rust Plaza L$# 9oad, $ultan. "el Q 2 R-3 <A/= 16776.Fa+ Q 2 R-3 <A/=

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9uestionnaire7
Employee 2ame7 %esi nation7 ,ist o" 9uestions7
/. :o !ou reall! think that the #ualit! manufacturing operations of Pak Arab Fertilizers are the source of competitive advantage for the organizationS If !es then elaborate. 3. Cow man! wa!s Pak Arab Fertilizers use to improve its #ualit!S >. (ho is responsible for managing Pak Arab Fertilizer s product and service #ualit!S 1. (hat t!pe of decisions the management make dail! for the organization to improve it total 'ualit! management practicesS 6. (hat t!pes of total 'ualit! tools are utilize b! the management for making sound and timel! decisionsS A. (hat are the ke! factors for the performance of Pak Arab Fertilizers total 'ualit! managementS 7. (hat are the competitive priorities of Pak Arab FertilizersS 4. Cow a pattern of decisions about total 'ualit! management and value chains is applied b! Pak Arab Fertilizers to develop the competitive capabilities to achieve those competitive prioritiesS -. (hen and how !ou select the project manager or project teamsS /.. (hat are the 'ualities re'uired in a project manager to accomplish a project successfull! and timel!S //. (hat are the options available to project manager to alleviate problemsS /3. (hat are the major 'ualit! improvement decisions made b! the operations manager regarding Pak Arab Fertilizer s manufacturing operationsS />. (hat t!pe of manufacturing process structure is adopted b! Pak Arab FertilizersS Bob process Datch process Line process )ontinuous flow process /1. (hat t!pe of production and manufacturing strateg! adopted b! Pak Arab FertilizersS $ake to order strateg! Assemble to order strateg! 34 | P a g e

Total Quality Management

$ake to stock strateg! /6. Is there an! customer involvement or participation in the Pak Arab Fertilizer s processesS /A. (hat t!pe of strateg! for change regarding processes is utilized b! Pak Arab FertilizersS Process reengineering Process improvement /7. Is there an! s!stematic wa! to anal!ze processesS If !es then what is that wa!S /4. (hat techni'ue is used in Pak Arab Fertilizers for documenting and evaluating the processesS Flowcharts %ervice blueprints Process charts /-. (hat t!pe of process La!out utilized in Pak Arab Fertilizers manufacturing operationsS Fle+ible flow la!out Line flow la!out C!brid la!out Fi+ed position la!out 3.. Cow do !ou determine that which one t!pe of la!out is best for !our organizationS 3/. (hat are techni'ues adopted b! Pak Arab Fertilizers for inventor! management with

respect to its competitive prioritiesS

-nstructions7 "he purpose of this #uestionnaire surve! is to assess !our organization s culture and the
implementation of total 'ualit! management practices in !our organization. 9espond to each of the criteria b! circling the number !ou think best describes !our organization. )hoose zero <.= if !ou think that !our organization is not meeting this criteria and choose five <6= if !ou think that !our organization is completel! satisf! this criteria. :o not respond to those items that are not appl!ing in !our organization or !ou are unsure about that items.

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Statements /. All emplo!ees focus is on customersF needs 3. All emplo!ees focus is on problem prevention before the occurrence of the problem >. All emplo!ees focus is on problem correction after the occurrence of the problem 1. Tour organization $ake continuous improvements2 seek to meet customersF re'uirements on time, the first time, ever! time 6. Tour organization train emplo!ees in wa!s to improve 'ualit! A. Tour organization appl! the team approach to problem solving 7. An open, problem0solving atmosphere e+ist in !our organization 4. In !our organization the Level of "rust is high among all emplo!ees <staff, line, workers, managers= -. Tour organization is Providing leadership as demonstrated b! top managementFs e+plicit e+pectations and behavior in ever!da! activities /.. Tour organization is providing the agreed resources <people, mone!, training, machines, etc.= //. In !our organization there is a s!stem of assigning authorit! and establish deadlines to put resources into motion /3. In !our organization there is a s!stem of monitoring progress in achieving goals, not to apportion blame, but to aim for improvement />. In !our organization there is a s!stem of measuring improvement and reward both the achievement of goals and the wa!s the! are achieved /1. &rganization is using si+ sigma approach and statistical measures for the continuous improvement /6. /6All emplo!ees know the mission of the organization /A. All emplo!ees know their role in helping the organization accomplish its mission /7. H+ecutive management is committed to the continual improvement of 'ualit!, productivit!, and competitiveness /4. $anagement treats the workforce as a valuable asset /-. &pen, continual communication e+ists at all levels of the organization 3.. $utuall! supportive internal partnerships e+ist between management and emplo!ees 3/. $utuall! supportive internal partnerships e+ist among emplo!ees 33. #ualit! is defined b! customers, internal and e+ternal 3>. )ustomers participate in the product development c!cle 31. Hmplo!ees are involved in decision0making process 36. Hmplo!ees are empowered to contribute their ideas for promoting continual improvement 3A. Performance of processes is measured scientificall! 37. %cientific data are used in the decision0making process 34. Hmplo!ees receive the education and training the! need to continuall! improve their performance 3-. All emplo!ees at all levels are e+pected to maintain high ethical standards

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

/ / / / / / / / / / / / / / / / / / / / / / / / / / / / /

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

> > > > > > > > > > > > > > > > > > > > > > > > > > > > >

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

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