ACKNOWLEDGEMENT

First, we would like to thank ALLAH Almighty who gave us the courage. Health
and Energy to accomplish our report in due time and without whose help this study
which required untiring efforts would have not been possible to complete within
the time period.

We are also very thankful to "Production Manager of Power Cement limited" for
his guidance for our topic. So That we may able to do our work within time limit.

THANK YOU!

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 TABLE OF CONTENT

 Introduction…………………………………………………………03
 Mission……………………………………………………………….03
 Vision………………………………………………………………....04
 Production Activities………………………………………………...04
 Our Products…………………………………………………………04
 Brands………………………………………………………………...04
 Inventory Management………………………………………….…...05
 Production Planning………………………………………..……..….06
 Forecasting……………………………..……………………………..08
 Quality Control……………………………………………………….09
 Achievements………………………………………………………….10
 Future Projects………………………………………………………..10
 Conclusion……………………………………………..………….…...11
 Recommendation………………………………………………….…..11

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 INTRODUCTION

Power Cement Limited established as Private Limited Company on 1 December 1981, converted
into Public Limited Company on 09 July 1987, and listed on Karachi and Lahore Stock
Exchanges. The registered office of the Company is situated in Nooriabad.

GROUP

Arif Habib Group ranks amongst the fastest emerging financial services providers in Pakistan at
present. This has made possible by a strong brand charter built on decades of first-rate services to
clients. The Group holds interests in the securities brokerage, investment and financial advisory,
investment management, commercial banking, commodities, and private equity, cement and
fertilizer industries.

BUSINESS ACTIVITIES

The Company is engaged in the business of manufacturing, marketing and selling of cement.

MISSION

 To become a profitable organization and exceeds the expectations of our customers and
stockholders by producing and marketing competitive and high quality products through
concentration on quality, business values and fair play.

 To promote best use and development of human talent in a safe environment, as an equal
opportunity employer and use advance technology for efficient and cost effective
operation.

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VISION

Power Cement Limited aims to recognize nationally and internationally as a successful cement
producer with a strong satisfied customer base.

PRODUCTION ACTIVITIES

The plant comprises of two production lines and has a total production capacity of 3000 tons of
clinker per day. PCL plans to triple its production to 3.1 million tons from current 900,000 tons
over a course of two years.

Power Cement’s primary target is the domestic market as it caters to the Southern region of
Pakistan. Its products are also export to markets located in the region. Power Cement is at an
advanced stage of ordering new plant and equipment, which would take its capacity in excess of
10,000 tons per day.

OUR PRODUCTS

 Ordinary Portland cement (OPC)

 Sulphate Resistant Cement (SRC)
 Blast furnace Cement (P.BLF)

BRANDS

 Power Cement
 Black Bull Cement
 Estate Cement

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 INVENTORY MANAGEMENT

Record keeping system:

Inventory management is very important for all companies. Power cement manages and records
their inventories on perpetual system that means they record their raw material on daily basis
apart from it the recording of silos done with the help of two-bin system as the silos continuously
filled with the material so they record the quantities of bag the silos fill per day.

Cope up with fewer raw materials:

If there is any situation, where the power cement gets an order but they do not have enough
material to full fill the order they cope up with this problem by 2 ways:

o Buy the raw material (i.e. clinker) from other companies or suppliers and fulfill the
order.
o Alternatively, to keep the customer they do a quota system in which they full fill
75%-80% of the order and ask for some more time.

Overstocking brings you profit or loss:

Over stocking brings profit for power cement as they can easily fulfill the orders.
In addition, when they prepare a huge amount and store them so at the time of order delivering
they do not need over time labor.
In the case of increasing prices, they can easily sell their products on high rates.
However, on the other side they have to spend money on the maintenance of warehouses and
look after the finish products keep them away from getting wet.

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 PRODUCTION PLANNING

Raw material use in production:

 Shale/overburden.
 Lime stone.
 Gypsum.
 Slag.
 Iron ore & silica sand.

Per day production:

The Company has doubled its cement grinding capacity to 1.8 Million tons per annum with three
new storage silos. The modernization of the Clinker grinding process with updated environment
pollution (Cooler ESP and Beg filter Plants) control equipment were completed to produce
300,000 tons per annum

How you cope up with technical faults?

Whenever we face any technical fault we try to solve it on immediate basis, we contact to the
technical department to look after the issue. Incase if the fault is major and it take time to solve
we arrange the spare machine for it to complete its process. Sometime our workers have to do
overtime to cope up with the situation.

How you differ with your competitors?

Our products may not differ from competitors but we stood out with our values that are:

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 Transparency:

Transparency and openness is core to our business functioning, customer and supplier
transactions and HR policies. This helps us build trusted relationships that translate into
brand loyalty in the long term.

 Reliability:

Customer satisfaction is what we deliver every time our esteemed clients consider us.
Absolute reliability along with superior performance helps us to serve you in the best
possible manner.

 Integrity:

Our business built on integrity. We follow clear ethical guidelines and strictly enforce
them throughout the company.

 Quality:

Quality is the most significant of our core values. We ensure import of standardized high
quality coal. One of our key priorities is to challenge the way things have done along
with actively developing new solutions and encouraging new ways of doing business.

 Efficiency:

Our dedicated team of employees ensures that all our clients provided tailor made
solutions to complement their production requirements. We are continuously striving to
improve our services and look forward to work hand-in-hand with the customer.

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What you do if production is less than your forecasting? How you cover up
the things?

If we do less production than forecasting, we look through the process to find the loophole and
try to overcome with it in the next batch production.

FORCASTING:

Which approaches you use for forecasting?

We do forecasting on the quantitative approach and for that, we look after all the pervious data.
However, some time we also forecast based on constructions of projects in the city. Like CPEC,
increase the demand of cement.

How often you do forecasting.

We do forecasting after every two or one and half month.

Do you depend on previous forecasting?

Yes, we always go through previous forecasting and see through their results while doing next
forecasting. In addition, if we face any problem then we change and look through the missing
point for next forecasting.

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 QUALITY CONTROL

Inspection:

We have different team to do inspection on every stage like one team inspect the raw material
another team for inventory inspection, one team when putting raw material in the machine and
one during the process. We also inspect the quality of finish good before selling it.

Is your product reliable and consistent in terms of quality?

Quality is the most significant of our core values. We ensure import of standardized high quality
coal. One of our key priorities is to challenge the way things have done along with actively
developing new solutions and encouraging new ways of doing business

Is your product brand positioning?

Yes, our product held a brand positioning.

Do you consider poor quality one of the factor for loss of the business?

Yes, because of poor quality you lose your customer and lose of customer means loss of
business.

Due to bad quality of your product, do you ever loss your customer. How you
overcome with this loss?

We do not face any situation like that because we do inspection on every step of process but in
case we face this type of situation so we can recycle our product and add the desire amount of
raw material.

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Which type of inspection is done in your company either centralized or on-site
inspection.

We do both centralized and on-site inspection when our raw material is in the process or when
we get finish product.

CUSTOMER SATISFACTION

Discount offer:
We gave the margin of 5% discount on each bag if customer contract with us for large project.
In addition, some time we provide the free delivery transport.

Achievements:

 All the products of power cement are approving by the Srilanka Standards Institutions.

 The Company is ISO 9001:2008 accredited for its environment and dust free workings.

Installation of filter-bag-house equipment

Power Cement has recently invested Rs350 million in installing environment friendly bag
house equipment to reduce dust emissions during which the company had to reduce its cement
production.

FUTURE PROJECTS:

We plan to expand the Cement grinding capacity to 3 Million tons per annum with additional
SILO and Packing plant. The likely investment is in the region of $30 Million, which proposed
to be complete by June 2017.

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 PROBLEMS

1. They do not move towards technology and resist change

2. They depend on previous forecasting
3. More technical faults like power shortage
4. Import machineries and other raw material for production which causes high imports bills
5. High prices as raw materials used is very expensive

RECOMMENDATIONS

 To remain competitive in the market they need to follow highest standard of the
technology but acquiring new technology and replacing the older one with newer
technology.
 As dependence on previous forecasting or underestimation leads you loss. So, forecasting
should be new for every period. For this, reliable source and consistency in forecasting is
necessary.
 Power Cement is cement producing company which is the foundation of houses and
buildings. Power failure stops the production so there is a need to first overcome this
problem of power shortage. Arrange some alternatives that if electricity is not available
so there must be some other interchange available so production won’t stop.
 For producing consistent quality of cement, expensive raw materials are used and this
affects the economy of country and also customers. They should try to cut down the
prices of cement with the same quality. In this way, customers attract towards them.

CONCLUSION

Power Cement Limited was established as Private Limited Company on, 1981 and was converted
into Public Limited Company on 09 July 1987 and is listed on Karachi and Lahore Stock
Exchanges. The Company’s principal activity is manufacturing, sell and marketing of cement.

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Product line includes Ordinary Portland cement (OPC), Sulphate Resistant Cement (SRC), Blast
furnace Cement (P.BLF). Raw material include: Shale/overburden, Lime stone, Gypsum, Slag,
Iron ore & silica sand. PLC manages and records their inventories on perpetual system that
means they record their raw material on daily basis. Forecasting was done after every two month.
Inspection was done at every stage. 5% discount per bag and free transport given while dealing
with large projects.

By using advanced technology and accepting change, arrange alternatives with power shortage
and reducing prices, company can become more productive and successful.

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