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Heavy Mechanical Complex, Taxila, is an organization under Administrative

control of Ministry of Production, Government of Pakistan. It is registered
as a private limited company with Securities and Exchange Commission of
Pakistan under companies act with 100% holding by the Government of
It was established under 3rd Five Years Plan in 1971, by WPIDC, to
implement governments industrial policy to shift emphasis from consumer
goods to capital goods manufacturing. In 1974, it was transferred under the
administrative control of newly established State Heavy Engineering &
Machine Tools Corporation (SHE&MTC) and later under State Engineering
Corporation (SEC).

In March 2006, it was decided to privatize HMC and Privatization

Commission invited EOIs from the interested parties. In December 2006,
keeping in view its strategic importance as heavy engineering industry,
Cabinet Committee on Privatization (CCOP) de-listed it from privatization.
Then in May 2007 it was detached from State Engineering Corporation
(SEC) and placed directly under the control of Ministry of Production. It
was decided to restructure its facilities to manufacture power plants and a
new Board of Directors was also constituted for strengthening it.

In 2011, two PC-1s for establishment of a Design Institute and establishment

of Turbines & Power Plants manufacturing Facilities at HMC were
approved, which are now in initial stages of implementation.

1.2.Objective of Studying Organization

It is greatly honor for me to work as internee being part of that kind of organization
that have remarkable value in Pakistan and known as leading engineering goods
manufacturing enterprise.HMC have the resources to handle large projects with
demanding delivery schedules. Being the largest and most extensive fabrication
and machining facility equipped with state of the art technology. HMC provide
manufacturing services both on our own or customers design.HMC have gained
rich experience in designing and manufacturing of large projects through
collaboration with internationally reputed engineering organizations.The main
reason to choose HMC on the behalf of following objectives.
To know how operations are perform in that kind of big organization.
To know how marketing activities are perform by the company.
To know about interrelated departmental activities of the organization and
nature of decision making environment.
1.3.Overview of the Organization
HMC is a well reputed organization for the manufacturing of the engineering
goods in Pakistan. ISO 9001 certified and authorized to use 4 ASME stamps U,
U2, S & PP for equipment manufactured according to ASME code.

Hrm sub departments

G. admin
Chapter 1

It was my first and I was already up at 6 pm for my first day in HMC training
department where all the internees were waiting desperately for their boss. The
name of the boss was mudassir.
Ms.muddasir handed over some documents to every internee spritely and told us
to scan some of our info cards and schedule our week. When we came back with
our forms and id card copies he told us to arrange them in a specific oder. After
that we were ordered to give 2 document arrangement to the head office of the
HMC, one for the training cell and one to the md. Another was to be given to the
security guard and one waste be kept with ourselves.
at the end of the day we took our forms and went straight to the security office
where they were clearified. Soon the clearance was finished and headed towards
lecturer of the HMC me directly reached to the admin or hrm department of hmc
were I directly meet with the hrm manager malik ayaz sahib who was a great
personality and kind hearted , I showed my application to manager he signed and
his assistant give orientation and give me the letter schedule of hrm department or
weekly schedule of my internship how I spend my weeks in different departments
of hmc

after that when I come next day after orientation I firstly join the estate department
were I learn a lot under the executive sir Shoaib and rafi sahib they both help me a
lot I spend my 2 weeks in state department in which I learn about the hmc worker
and employes houses hmc have 1600 houses in which mostly is aloted to the
worker and employes in estate department I leran how to maintain files ,, record
oof houses there house rent , electricity bills etc we can get bills and after that we
keep the register monthly these registered are updated monthly name of there
houses are FTYPE,ETYPE ,ATYPE etc , in which few are bachelor quarter , we
keep the same records in computer I almost complete all the task of month of july ,
thats all the work of estate department

Chapter 2
,after that I join the littegation department for few days in which there is
IFTIKHAR SAHAB that was basically the layer they share a lot of knowledge
with me he have a lot of experienced he serve the hmc from 40 years ,basilcally
litegation department deal all the court orders and deal all the conflicts of the
workers and employes ,, in which iftikhar sahib tell us about the standing order
under the ordinance 1968 , all term and condution of employment are mention in it
according to the we recruit ,
Employees is duty bound to adhere or comply with the provision set out in this
order , if employee violate he will be punished,, industrial relatation between act
2010 deal with the relation between employees CBA (COLLECTIVE
BARGAINING AGENT ) 50 or above worker are working in organization to select
their leader and set up a union
In every 2 year employees and CBA make settlement , CBA give charter of
demand e,g leaves increment , employees also give cod , there is and agreement

between CBA member and employees that can be improved but not minimized
,CBA can report to the court or NIRC national industrial relation commission if
something not selfed , unfair labour practice who ever commits either employes or
CBA they can report to labour court or NIRC to make productive system or to
maintain good relation in organization ,
group insurance we pay premium to state life , it
is for 24 hours
Hmc conduct annual insurance in case of death amount is paid to relatives of
Employes will have to conduct provident fund ,
10% of salary will be contributed by employe and employer , employer need to
contribute this fund in government scheme and distribute profit in employee
Where employer do not pays provident fund then will pay graduity at the time of
resignation on pension ,
Hmc now paying provident funds plus graduity to their employes under
memorandum of setelment .
so casual leaves sick leaves earned leaves
Workman compensation act 1923 how to deals with the cases of a worker at the
time of accident, disabilities and death
Hmc has ensured their employees for 24 hours

Punjab employees social security ordinance 1965 under this worker medical
treatment , family treatment social security hospital ,
7% of salary on behalf of employer prescribed amount pay on behalf of each
worker social security issues them a card and they get free treatment in social
security hospital ,
Social security order is not applicable on hmc because they are already providing
medical facility
This is welfare law and under it employee is responsible under whom 5 or more
workers are get them registerd with EOBI
Employer would pay 5% of prescribed minimum wage and 1 % of employee salary
will be deducted on monthly basis
Benefit of EOBI
1 this benefit is given to the employes if he serve the hmc minimum 15 year
Invalidity pension during service if any employee is disable and cant walk then he
would get the invalidity pension his ensured service should be 7 year minimum
Survival pension (widow pension)
Eligibility criteria duration of services (3 to 5 year )if husband died then wife will
get this pension , if widow get married than they wont be eligible for that pension

Chapter 3
Introduction of trainee engineer

Step 1.introduction of ----trainee engineer ere approved by the competent authority

(annex.a). as such in oder to induct trainee engineer in different disciplines,an step
2. Advertisements was released in the newspaper inviting applications of
mechanical, industrial ,metallurgical, electrical, electronic, and telecom engineer
(annex). In response we had received applications as under


Industrial engineering


Metallurgical engineering

Electrical engineering
Electronic engineering
Telecom engineering
Province and discipline and wise details found at (annex c)
Step 4 therefor the following selection committee was approved for processing the
applications, conducting test/interviews and submitting recommendations:-.






The committee in its meeting and keeping in view the past experience set the
following criteria for selection


all the applications to be checked and to ensure completeness of

required documents

all the complete applications be sorted out engineering discipline and

province wise

merit list for issuance of call letters for test/interviews to be prepared

strictly and merit basis considering the marks obtained I engineering


test/interview calls to be issued on the merit based from all the

disciplines and provinces according to the requirement


test1interview to be conducted by the above referred committee on the

following dates

----and 1----April. 1---



Electrical/electronical and telecom

----April. 201------


merit list for final selection to be prepared on the basis ofmarks

obtained in written test/interview. Province-wise quota basis and weighted average

of------% and ------% to be allocated to test interview respectively
The whole process was conducted strictly in accordance with the above criteria and
resultantly following documents are annexed
Step-5- complete list of candidates who have applied call letters issued and
appeared for test/interview
Step 6-score sheet of all the candidates appeared for test/interview
Step 7-list of candidates selected on merit and provincial quota basis recommended
by the committee for selection

Thee are some rules designed by HMc for n ew internes

that are some secure rules thatare mentioned a bove
names as annex 1 annex c annex

2.2 Organization Hierarchy

Design & Sales A&B.

Project Management.
Project Management.
Purchase & sales c.

Mechanical works.
Production Planning and Control
Finance & Accounts


Administration.& HRM

Quality assurance & new products
Foundry & Forge works.


It has following shops, foundries and blocks:

1. Fabrication Shop
2. Machining Shop
3. Iron and Steel Castings Foundry
4. Sand Making Shop
5. Forgings Shops
6. Heat Treatment Shop
7. Assembly Shop
8. Sand Blasting Shop
9. Painting and Galvanizing Shop
10. TTC
11. Production Planning and Control
12. Material Testing Laboratory
13. NDT lab
14. Inspection Shop

It has needed a heavy investment to start the operation so it is the big barrier to for the

entrance of the other companies in this industry sector.

It is Pakistan largest engineering manufacturing company. Its provide the employment
opportunity thousands of worker and have a capacity to full fill the engineering capital
goods demand with in and also outside the country.

HMC using the machinery that are using by the company are now out dated. It did not
install latest machinery tot hat extend as by its competitors. So it may fall behind in its
production capacity
Due to heavy losses and bad financial policies it is losing its financial position. Its facing

problem in meeting its day to day expenses.

Privatization always shows weakness in a companys working. The government of
Pakistan decided many time to privatize it to three party consortiums at nearly scrap


Since it has been working for a very long time so it has achieved high skills to produce a
large variety of products. So it has to satisfy many wants of the customer and increase its

Its competitors in the market not have any strong position or have ability to produce
many products under same roof. So it can be able to earns more profits.


With the entrance of the new competitors the sales of HMC company can be decrease.

The emergence of advance technological capital good producers is threading its profits.
Due to economic crises and energy issue in Pakistan have a bad impact on its profitability
and also decrease in the demand.

Now a days hmc is working on totally two projects

1. Nalter jeel materials in which overheads etc
2. Sugar mills machinery