Internship Report

Pakistan Tobacco Company

A Subsidiary of

Project

IWS Skill Matrix

By

Syed Muhammad Ali Shah

6th Sept 2019 – 18th Oct 2019
Acknowledgment
I am very grateful and satisfied that I did my internship at such a prestigious and reputable
organization i.e. Pakistan Tobacco Company and for that we are very thankful to Allah Almighty
the most merciful and beneficent who gave us this overwhelming opportunity. I reached this place
only because of the support and hard work from my families and teachers.

I express my deepest gratitude to our kind-hearted line manager SALMAN RAHATULLAH and
others who helped me to complete the project on time and guided me whenever I was stuck in
work. I really want to appreciate TANVEER SIR, who supervise me and help me out in every
possible way and support me where I confused in operations of this project.

Finally, I would like to express my gratitude to the whole team of PTC (AKF) which provided me
all the information that was needed for the completion of project.

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Author’s Note
For the past 6 weeks, I’ve been a part of Pakistan Tobacco Company Akora Khattak Factory, a
very well recognized and highly reputed organization. In these 6 weeks at PTC, I gained a lot of
technical knowledge and that polished me both professionally and personally.

In this report, I will give the complete details of what I’ve gained during my internship at PTC, an
intern is assigned to a project which he must complete in the given time. I was also assigned to a
project i.e. LOSS TREE.

I analyzed the data from Questionnaires of different employees and find the gaps, and concluded
difference of actual score and expected score. After finding all the gaps, the database was created.

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Forward
The purpose of this report is to give an overview of what I have done and what I have learned
during internship at PTC (AKF).

This report would primarily focus on the LOSS TREE. It would also give an overview of PTC.

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Preface of the Report
It gives an opportunity to the students to come out from their theoretical knowledge to the
professional field and experience the practical environment and know about the real business
world. I got this opportunity to work as an intern at Pakistan Tobacco Company The results that I
found out through my study may help the factory management in their decision making to improve
the productivity.

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List of the Acronyms

AKF Akora Khattak Factory

BAT British American Tobacco

CbPM Capstan by Pall Mall

EHS Environment, Health and Safety

FRD Filter Rod Department

FTSE Financial Times Stock Exchange

GF Gold Flake

GPM Gross Profit Margin

IWS Integrated Work System

MOM Member of Management

PTC Pakistan Tobacco Company

PMD Primary Manufacturing Department

ROI Return on Investment

SMD Secondary Manufacturing Department

TL Team Leader

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 INTRODUCTION
TO

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History of BAT
The company was formed in 1902, James Buchanan Duke became the chairman of the company.
British American Tobacco is a joint venture of Imperial Tobacco Company (United Kingdom) and
American Tobacco Company (United States). Despite its name, the BAT business began life in
countries like China, Canada, Denmark, Japan, New Zealand, Germany, South Africa and
Australia but not in the UK or USA. By 1910, they expanded their business to West Indies, Sri
Lanka, India, Malaysia and Nigeria. Slowly and gradually they started acquiring other tobacco
firms and with that their market share was growing as well.

What is BAT TODAY?

British American Tobacco plc is a British Multinational Tobacco Company. The headquarter of
BAT is situated in London, United Kingdom. It is the largest publicly traded tobacco company in
the world. BAT has a market leading position in over 55 factories in 42 countries and operations
in around 200+ markets. BAT has a primary listing on the London Stock Exchange and is
constituent of the FTSE 100 Index. According to their annual report 2018, the revenue of BAT
was £24,492m and their net income was £9,313m. BAT has more than 55,000 employees
worldwide.

International Brands of BAT

Among all of their brands, four largest selling brands are:

 Dunhill
 Lucky Strike
 Kent
 Pall Mall

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Other brands that the company markets include are:

 Benson & Hedges

 Rothmans
 Vogue
 State Express 555
 Viceroy
 Kool

There are more than 300 local brands owned by British American Tobacco.

Subsidiaries of BAT
Some of them are given below:

 Reynolds American
 Imperial Tobacco Canada
 Bentoel Group
 Souza Cruz
 Niemeyer
 Tekel

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 INTRODUCTION
TO

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History of PTC
Pakistan Tobacco Company is one of the first multinationals that started its operations in Pakistan
and recently PTC completed 70 years of its operations in Pakistan. It is a subsidiary of British
American Tobacco.

PTC was established in the same year when Pakistan took its independence in 1947 and took over
the business of Imperial Tobacco Company (India). It had 3 branches i.e. Karachi, Jhelum and
Akora Khattak. Due to heavy losses and many other reasons, the Karachi factory is closed since
1992. First plant was set in Karachi and that plant had monthly production of 30 million cigarettes
against the sales of 60 million. This gap was used to be filled by imports.

A factory was established at Jhelum in 1955 and in the same year PTC became a Public Limited
Company. A new factory was established in 1975 at Akora Khattak in order to meet the increasing
demand of the customers.

Tax Contribution to the GDP

Pakistan Tobacco Company is one of the largest tax contributors in the private sector in Pakistan.
For the last year Pakistan Tobacco Company paid the tax of Rs 92.2 billion. PTC became the
largest company on Pakistan stock exchange that provided the 10% of total market capitalization
by Rs 617 billion.

Vision Statement
“Our consumers are at the core of everything we do and our success depends on addressing their
preferences, concerns and behaviors. We know that these are fragmenting and evolving at an
unprecedented pace, and consequently, we are focusing on providing a range of tobacco and
nicotine products across the risk spectrum. In addition, we are clear that to win in this space we

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need to understand our consumers’ preferences and further invest in a pipeline of ever evolving
innovations.”

Mission Statement
“Delivering our commitments to society, while championing informed consumer choice. We have
long known that, as a major international business, we have a responsibility to address societal
issues with our tobacco products, and that, as our business continues to grow, so does our influence
and the responsibility that comes with it. We are also clear that we have a duty to our shareholders
to ensure we continue to deliver today and invest for a sustainable future and to our consumers to
provide, in addition to our combustible products, a range of potentially reduced-risk products such
as NGPs and oral tobacco products. Our transforming tobacco ambition, with its core objective of
providing consumers with more choice, more innovation and less risk will allow us to: satisfy these
consumers; address societal concerns at large through the growth of multiple categories of
potentially reduced-risk tobacco and nicotine products; and provide a sustainable, profitable future
for our shareholders.”

Brands:

 Dunhill
 John Player Gold Leaf
 Gold Flake
 Capstan by Pall Mall
 Embassy

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LOSS TREE
In general, loss tree is simply a listing of the losses or inefficiency , which may exist in a factory
production process. Loss deployment is a cascade process that looks initially at the overall factory
losses than increasingly at a more detail level down to a packing line. Also loss tree is a tool where
different type of losses are analyzed.

There are four types of losses in loss tree.

1. UPDT (Unplanned downtime)

2. PDT (Planned downtime)
3. RL (Rate loss)
4. QL (Quality loss)

One of the major goals is to reduce or eliminate, which are called the most common causes of
equipment-based productivity loss in manufacturing.

UNPLANNED DOWNTIME

Equipment failure accounts for any significant period of time in which equipment is scheduled for
a production but is not running due to a failure of some sort. A more generalized failure is any
unplanned stop or downtime.

In an unplanned downtime condition the equipment owner have no idea that for how Maytime
machine will remain stop.

Examples of common reasons for equipment failure include tooling failure, breakdowns and
unplanned maintenance.

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SETUP & ADJUSTMENTS
Setup and adjustments accounts for any valuable periods of time in which equipment is
scheduled for production but is not running due to equipment adjustment or in other words
cleaning, inspection and lubrication purpose.

A more generalized way to think of setup and adjustments is as any planned stop.

Examples of common reasons for setup and adjustments include setup, changeovers, major
adjustments, and tooling adjustments. Other common reasons are cleaning, warmup time,
planned maintenance and quality inspection of a machine.

RATE LOSE (REDUCED SPEED)

Reduced speed accounts for the time where equipment’s runs slower than the ideal cycle time
or the theoretical fastest possible time to manufacture one part. Reduced speed is a performance
loss.

Examples of common reasons for reduced speed include dirty equipment , poor lubrication,
substance materials, poor environmental conditions , operator inexperience.

QUALITY LOSS
Quality losses are also called process defects. Process defects account for defective part
produced during stable or steady state productions. This includes scrapped part as well as parts
that can be reworked, since OEE measure quality. Process defects are quality loss.

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BENEFITS
VISIBILITY

1. Focus on top losses

2. Impact on top losses
3. Trends with time

“NEEDS”
Different kinds of losses can appear on quipment in factory.Loss tree is very helpful in
identifying losses and analyzing losses and then calculating equipment efficiency.

The figure below shows us about types of losses and thir readings. e.g

In planned stop cause of stop is incomplete cigarette pocketsstop due to this cause occurs 46
times and wasted time of about 30.9 minutes.Then we can calculate % OEE loss.

% OEE LOSS = ( WASTED TIME / TOTAL TIME IN A DAY ) * 100

= ( 30.9 / 1440 ) * 100

% OEE LOSS = 2.22 %

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IWS Skill Matrix
A skills matrix is a grid or table that clearly and visibly illustrates the skills and competence held
by individuals within a team. Well-implemented skills matrices should identify the skills that a job
role requires, the skills of all individual employees, and any gap between the two.

The data was already collected I just used to identify the gap and mark those employees that are
below threshold. If any person is below threshold will be enrolled for the specific training either
he or she is weak in technical or IWS skills.

IWS arranged the survey by using different questionnaires for every department operating in
Pakistan Tobacco Company (Akora Khattak factory). Now, if a person has scored less from the
target value on any tool, he would be given training on that specific tool in order to meet the
required targets which are very necessary for IWS. The scoring criteria were 1 to 5. The details of
scoring criteria are given in the below picture:

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For each department and for every rank IWS used different questionnaire with the division of
technical skills and IWS skills by mean of further different heads and specific question relevant to
the knowledge skill. The questionnaires have predefined expected target proficiency. All the
questionnaires have the same format which is given below:

Division of department

Manager cell one and cell two

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There were about seven members in cell one and seven member in cell two having individual
single head respectively and rest on them were just members.

Filter manufacturing department

FMD contain total 16 members one of them was head supervisor and rest of them were EO’S.

Primary manufacturing department

Primary manufacturing department consist of head supervisor and others are EO’S.

Secondary manufacturing department

Secondary manufacturing department consist of 20 makers and 20 packers with supervisor. It has
four shifts A, B, C, D.

Maintenance department

In the same way maintenance department has supervisor, technicians and other supporting staff.

Gap Analysis

By mean of skill matrix, I find the gap for each employee by using the formula

Gap= Actual score-expected score

If the value comes negative, show that the person is below threshold and if it comes positive it
means that the person is above threshold and the values with zero show that the just meet the target.

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Excel sheet was maintained separately for all the departments in order to find the gaps for each
employee. For further ease of the management, I made Pivot Table for the database so that
everyone can easily find out the information that he wants. Through Slicers, with only one click
on the name of the employee or his Employee ID or any tool etc., all details would show up on the
screen.

This database would be very helpful for the management of Pakistan Tobacco Company because
it would guide them in further decision making and increasing their overall productivity.

Pivot chart

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Data base

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Graph

The graph mentions above show that how many people are below threshold for each heads
regarding IWS and technical skills.

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Conclusion

Skills matrix help the management to find the weaknesses of the employees and bring the training
for them. The results conclude that most of the employees are below threshold but it does not mean
that the employees are not effective. In most of the skills asked, the management expected that the
employee may know the skills and also teach to others but the employees show productivity as
they know about the skills but cannot teach.

It was a wonderful experience working here at Pakistan Tobacco Company as an intern. I was
assigned a project that is completely out of my scope because my major is Finance, but still at the
end of the day, I completed my project and I learned a lot in this internship. It thought me about
diversity that how you should adjust yourself with different kind of people and how to utilize their
skills.

Recommendation

 The department should consider the intern for any project by keeping the area of
specialization of the intern that may bring to the effective results.
 The line manager must give some time to the intern to guide him in better way.

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