I NTERNSHIP R EPORT

Pakistan Ordinance Factories

Submitted to:

Principal POFIT

Submitted by:

Name: Waqar Ahmed

Registration No. OOPRI2365

Mailing Address: House No. B-292

Gulistan Colony POFs, Wah Cantt.

Contact No: 0322-8517712

Discipline: MBA (Marketing)

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 PREFACE

We are the students of MBA Marketing and our institutes have assigned us to do internship
for the period of 6 to 8 weeks to enhance our practical skills in the running business
environment of any organization. The objective of this internship program is to expose our
self into the practical atmosphere where we can observe, analyze and even practice the
application of the professional knowledge that we have acquired during the course of our
studies.

I was selected to do my internship in nation POF. I worked there for 8 weeks &
it gave me a greater practical knowledge about business. In the following pages I have
narrated my experience, observation & all the working activities which I observed.

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 ACKNOWLEDGEMENT

Actually this report is made possible with the help of many people. Some of who
have done as much work as they could do and all of whom have brought their own brand
of expertise to the task, so I have many people to than.

I would like to thank all my teacher and all others who supported me. My greatest
acknowledgement is for “Pakistan ordinance Factories” management who help me in the
completion of project. Finally my most acknowledgements goes to my instructors who
gave me his precious time. Due to his continuous supervision and cooperation I am
succeeded in completing my project, which will prove a asset in broadening my attitude
and experience for my future.

I am grateful for the support and contributions of the above people who have
enable me gain the experience and determination needed to compile this project.

God Bless them All.

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DURING MY INTERNSHIP PERIOD I HAVE DIFFERENT DEPARTMENTS OF
POF THAT ARE:

Sr.No. Department Duration

1 Export Deptt. 05-01-2010 to 16-01-2010

2 MIS Deptt. 18-01-2010 to 23-01-2010

3 WIL Deptt. 25-01-2010 to 06-02-2010

4 P&S Deptt. 08-02-2010 to 13-02-2010

5 Finance Deptt. 15-02-2010 to 20-02-2010

6 Admin Deptt. 22-02-2010 to 24-02-2010

7 HR Deptt. 25-02-2010 to 27-02-2010

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 TABLE OF CONTENTS
TABLE OF CONTENTS............................................................................................................ 5
Introduction..........................................................................................................................5
Mission & vision statement...................................................................................................7
Objective of studying the organization.................................................................................8
Overview of the organization................................................................................................9
Brief history of the organization............................................................................9
Number of employees...........................................................................................9
Product lines........................................................................................................10
POF SERVICES..................................................................................................................... 10
Organizational structure.....................................................................................................12
Main factories ....................................................................................................12
Subsidiaries...................................................................................................................... 13

Structure and functions of the marketing and sale department.........................................14

Organization chart of marketing and sale department.......................................14
Marketing Operations ........................................................................................15
Administration Department:............................................................................................... 31
Sub departments of administration department:................................................................31

Functions of central welfare:...............................................................................32

Human Resource Department:...........................................................................................34
Short-fall/weakness.............................................................................................................36
Conclusion..........................................................................................................................38
Suggestions & recommendation.........................................................................................38
Reference & sources...........................................................................................................38

Introduction

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 P.O.F came in to being in December 1951 and has recently completed its 53

years of existence. Since P.O.F had to start from scratch, this half-century has

been an arduous but rewarding journey which enables Pakistan to move

dependence to independence and from reliance to self reliance in production of

defense war withal. P.O.F had set high standards in industrial engineering. Its

scope of production encompasses state of the art defense engineering process,

explosive propellants and powder metallurgy. All fourteen industries of P.O.F are

ISO 9001 certified while subsidiaries like Wah Nobel Group of Companies are ISO

9002, ISO 14001 and ISO 18000 certified by internationally reputed firms like

moody International setup in UK.

Awarded ISO 9001 certificates to all the Fourteen Industries of P.O.F after

inter-acting for nearly a year.

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Mission & vision statement
“Quality at every Level”

They want to give their customers premium sets of initiative products.

The main mission of the Company is:

 Manufacturing and sale of qualitative ammunition and Commercial

Explosives.
 To utilize spare capacity of POFs by marketing its qualitative civil production
items

Disposal of:

 Obsolete/Surplus plants, Machinery & stores.

 Ferrous and non-Ferrous scraps
 Economical utilization of Company’s funds in profitable ventures

SUBSIDIARIES
WEAPONS
CIVIL WORKS CORPORATE
R&D
ARTY AMMO
MIS EXPORTS
EXPLOSIVES
PURCHASE & QA
FILLING
STORES SECURITY
SAA & B.M
SERVICES HOSPITAL
TA MINISTERIAL
CLOTHING CMA (POF)
GADWAL COORDINATION
SAFETY
SANJWAL
ADMIN
NAVELIAN
HRM
MG

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Objective of studying the organization
The objectives of POF board have clearly been laid down in POF board ordnance
1961. According to which POF board is responsible to manage and administer the
affaires to factories and to run them on sound commercial line so as to adequately
meet during a peace the needs of defense of the country and to utilize the surplus
capacity of factories to meet the needs of civilian population.

POF was established as expanded as a sprawling complex of fourteen mainstream

industries and six commercial subsidiaries. These are:

 Weapon Factory

 Machine Gun Factory

 Small Arm Ammo Factory

 Medium Artillery Ammo Factory

 Heavy Artillery Ammo Factory

 Tank & Anti Tank Ammo Factory

 Explosive Factory

 Filling Factory

 Propellants Factory

 Tungsten Alloy Factory

 Tungsten Carbide Factory

 Steel Foundry

 Brass Mills

 Garments Factory

Subsidiaries are:

 Wah Nobel

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  Wah Industries

 Hi Tech Plastics

 Attock Chemicals

Overview of the organization

Brief history of the organization

During their colonial rule, the British built sixteen ordnance factories in India,

which at the time of the partition in 1947 all fell to Indian control. Pakistan's first

Prime Minister, Liaquat Ali Khan, issued a directive within four months of the

creation of Pakistan to establish an ordnance factory in collaboration with British

Royal Ordnance Factory to manufacture 0.303 calibre rifles and their ammunition

in Rawalpindi. In December 1951 Pakistan's second Prime Minister, Khawaja

Nazimuddin, took part in the opening ceremony of the first four POF workshops in

the small town of Wah Cantonment.

Number of employees

Over 40,000

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Product lines.

P.O.F is producing approximately 70 major products, which it supplies to Pakistan

Army, Pakistan Navy, and Pakistan Air Force.

The main products are

 Automatic rifle
 Light medium and heavy machine ammunitions.
 Tank ammunition and anti-tank ammunition.
Bombs

 Grenades
 Anti tank mines
 Pyrotechnics
Commercial Product:

POF specialize in the manufacture of wide range of copper,

copper, alloys, brasses, gilding metal and offer a large variety of brass items in the
form of rods, wires, sheets, strips, Hexagonal & special sections. Rods, bars & wire
round Hexagonal, square rod, Tubes, round Square, rectangular tubes, Strips, Foils,
Sheets, GMCS strip with 10% coating on either side

POF SERVICES
Laboratory Testing

Highly qualified engineers and scientists look after this testing facility. We ensure
high standard of quality demanded in any material testing laboratories and

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possess state of the art technology to meet all your material testing requirements.
We have the ability to conduct following tests.

Mechanical Testing: we conduct tensile, compression, impacts, bend, and cupping

and hardness tests for metallic materials. Available tensile testing machines range
from 0.5 Ton to 100 Tons capacity. All standard loads are available in hardness for
Vickers, Brinell, Rockwell and Shore.

Non-destructive Testing: We have instrumentation to measure internal and surface

flaws in castings, forgings, welded joints and finished parts. Radiography,
Ultrasonic Testing, Eddy Current method, Magnetic Crack Tetection and
Fluorescent Dye Penetration are some of the available Non-destructive Testing
Techniques.

Physical Testing: We determine the density, viscosity, ash content and distillation
range for various chemicals and substances, which include petroleum products,
paints, asbestos, soap, paper and cardboard.

Metallographic Analysis: We have facility to analyze the micro and macro structure
of metallic materials to determine structural details.

Chemical Analysis: We have the facilities to determine chemical composition of

metals / alloys, refractory and other materials through conventional Wet Analysis,
as well as instrumental techniques such as Photometry, Spectrograph, and
Spectrometry.

Polymer Testing: Polymer Lab established in this group has facilities to carry out
tests like hardness, tensile strength, impact value, softening point, melt flow index,
and moisture content in polymer materials.

Refractory Materials: Refractory materials tests for sand, clays, firebricks etc.
include sieve analysis, green strength, compatibility, permeability, and water
absorption and bulk density.

Other Services

These services comprise of:

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  Manufacturing and repair of thermo-couples.
 Repair and calibration of Thermo-electric Pyrometers.
 Calibration of Force Testing equipment (UTS machines)
 Calibration of Hardness Testing Machines.
 Production of Copper Crushers for proofing of ammunitions.
 Production of Phosphate solutions.

Production of combustion boats for carbon / sulphur determination

Explosives Laboratories

These analytical laboratories are the heart of POF explosive manufacturing

technologies as these are the most essential elements of ensuring top class quality
of all of our intermediate and finished chemical and explosive products Our
laboratory human resource comprise of highly qualified engineers, scientists and
analysts. In addition to the conventional apparatuses and instruments, the
laboratory is equipped with high-pressure liquid Chromatograph, UV Spectrometer,
Flame Photometer, Sub-sieve Particle size and many other modern testing
equipment. In addition to the conventional explosive testing, we have all the
essential resources to conduct following tests and analysis:-

Organizational structure
Main factories

 Weapon Factory
 Machine Gun Factory
 Small Arms Ammunition Factory
 Medium Artillery Ammunition Factory
 Heavy Artillery Ammunition Factory
 Tank and Anti Tank Ammunition Factory
 Explosive Factory
 Filling Factory
 Propellants Factory
 Tungsten Alloy Factory
 Tungsten Carbide Factory
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  Steel Foundry
 Brass Mills
 Garments Factory

Subsidiaries

 Wah Industries Ltd

 Shotgun Ammunition Factory
 Packaging Factory
 Hi-Tech Plastics
 Wah Nobel (Pvt) Ltd
 Wah Nobel Chemicals
 Wah Nobel Acetates
 Wah Nobel Acetates
 Wah Nobel Detonators

Review of the various department of the organization

During my internship period I have different departments of POF that are:

Sr.No. Department Duration

1 Export Deptt. 05-01-2010 to 16-01-2010

2 MIS Deptt. 18-01-2010 to 23-01-2010

3 WIL Deptt. 25-01-2010 to 06-02-2010

4 P&S Deptt. 08-02-2010 to 13-02-2010

5 Finance Deptt. 15-02-2010 to 20-02-2010

6 Admin Deptt. 22-02-2010 to 24-02-2010

7 HR Deptt. 25-02-2010 to 27-02-2010

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 Structure and functions of the marketing and sale
department
Organization chart of marketing and sale department

Usman Ali Bhatti

( Dir Export )

Nadeem Ahmad M. Mateen (PA) Muhammad

Manger Admin Zulfiqar Ahmad Afzal
Marketing & Pre – Contract (NQ) ( GM Export )

Syed Ahmad Naeer Ud

Salman Haider Nighat Umer Jamal Din(PA)
Naeer Ud
( AM-1 Pre-Conract) (A.M-II Pre-Cont) Mgr Exports Abdul
Din(PA)
Latif(Drafty
(Post
Contract) )
Abdul
Naeer Ud
M. Zahid C’Man Waseem Ahmad (UDC) Din(PA)
Mrs Sumia Nadeem
(AM-II) Abdul
Bashir Khan
(AM-I)
Tasneem Khan (E.O) Zulfiqar Ahmad
Zahid Pervaiz
Zubair Khan (U.D.C) (TO.Exhib)
(TO)
Muntaizar Abbas M. Naseer Khan (Asstt)
Mureed Abbass (EO)
(U.D.C) Khalid Jamil (N/Q)
Ghulam Bari
Shakeel Khan (A-I/C)
(U.D.C)

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 Marketing Operations
The export function started in POF for the first time in 1972-73 when Arms and
Ammunition (A&A) factory started exporting arms to OMAN and other friendly
countries.
Functions of export sections:
 To arrange exports of POF Products.
 To have correspondence with DPD,
Ministry of Defense.
 To correspond with Pakistan embassies
in foreign countries for export promotion.
 To arrange supply of samples free of cost
to prospective client after obtaining
approval of POF board.
 To submit quarterly report to Ministry
through FACF in respected of foreign
exchange earrings and its utilization.
 To obtain information of price quoted by
other manufactures for similar stores as
exported by POFs.
 To initiate proposal and obtain Govt.
approval for visits of POF delegation for
exports promotion to friendly
countries.
 To prepare up-to-date broachers for
export items.
 To obtain clearance of Ministry of
Defense for inviting important dignitaries

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 in connection with sales of POF
products.
PRE – CONTRACT SECTION:
This section of export department is responsible right from enquiry of any
export order by a client to its final confirmation. The procedure related to
customers process and functioning of this sections is given below;
PROCEDURE FOR CUSTOMER RELATED PROCESSES:
Purpose & Scope:
Te scope of this division and procedure is the execution of orders placed on POF by
foreign clients to their satisfaction. The procedure is only for export purpose.
Responsibilities:

Director export and G.M exports are responsible to control all activities of
this procedure.
Procedure:
 The requirement is received trough mail, telefax, e-mail or by other
means are scrutinize by Director export and G.M Export for
specification required quantity on demand, country to whom the
store to be supplied and the delivery mode indicated by the client.
 The delivery schedule of store is obtained by Director Export and
G.M Export from MPC/concerned head of the factories. Price
approval (to be quoted) is obtained from Chairman POF Board.
 A regret message is sent by Director Export/G.M Export. If the items
demanded are not within the range of production manufacturing by
POF.
 In case the product specification do not exactly meet the POF
specification, then a comparison sheet is prepared by manager
Export-I. with the help of concerned production manager of factory
and is sent to the customer for comment/acceptance, if so desired a

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 sample of POF produced store supply inspected by Q.C of that
factory, is also sent for acceptance to the client.
 A formal quotations is prepared Director Export and G.M Export as
per format desired but the client and then quotation register is
prepared and forward it to the schedule, payment terms and other
condition of supply.
 Recipient confirmed the order “Contract review form” is prepared
by manager Export-I and then forwarded to concerned production
factories under the signature of Director and G.M Export along with
extract work order for under taking production.
 Extract work order placed on production factory is recorded by
Manager Export in extract register the relevant information of order
received is also recoded in the order register for the future
reference.
 Then the production factory arranges for inspection testing &
proofing as per relevant agreed . Proofing of schedule the
inspection testing & Proofing is carried out under the supervision of
quality assurance directorate. Director quality assurance may
nominate his rep. to witness proofing. Results are compiled by
quality assurance directorate and quality assurance certificate is
issued by the department.
 The consignment is dispatched to client by air/ sea by manager
export-2 through store department / office Karachi.
 During the course of contract, if some changes are required to be
done regarding order within POF or by client it is mutually settled
down by visit to each other premises and conveyed to manager
export and director export.
 Separate order file comprising all correspondence including
amendment is prepared for each order.
 To increase export earnings and market of POF's product there is a
need to nominate agent abroad. The criteria is as under;

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  Requests received for appointment abroad, This request is then
sent to
 concerned DA of that country for checking credentials and
recommendations,
 On the Receipt of recommendation the case is prepared and sent to
 Chairman' POF Board for approval.
 After getting chairman POF Board approval draft agreement is
forwarded
 To firm for their vetting.
 On receipt of draft agency agreement (fear) agency agreement is
prepared and forwarded to the firms under thy signature of Director
export.
 POF is only mediator so it does not outsource any part of the
product. However, when it is needed at any time appropriate
procedure will be added to the system,
RELATED DOCUMENTS:
1. Contract review form
2. Comparison sheet
3. Quotation
4. Quotation register
POST-CONTRACT SECTION:
This section is responsible for performing following activities;
 Contract L/C
 issuance of Export permit
 PSI
 Dispatching of Consignment
 Dealing with freight issues and insurance matters,
ADMIN FINANCE (EXPORTS)

This department is responsible for facilitation of all sections of Exports

including Pre-contract, post-contract and marketing department.

Functions of Admin department:

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  Agents commission approval
 Stevedoring.
 General purchase
 Payment of courier charges, transport expenses, insurance charges and also
the payment of trucking bills.
 Receipts of payments.
 MRO payment of commission.
 Bank commission
 Performance guarantee
 Payment of Freight forward charges.
 Maintenance of attendance register of export department’s staff.
 Financial concurrence from FA department.
 Any type of export payment is made by Admin.
 Office purchase and gifts purchase for the foreign delegations is made by
Admin.
 Miscellaneous financial matters including payment to vendors.

MARKETING DEPARTMENT

Functions of Marketing department:

The main functions of marketing department are;
Arranging exhibitions inside and outside the country for products of POF including;
 .Bridex in Brunei
 .Desi in London
 Ideas in Karachi
 Promotion is done through mass communication, advertising, Events and
customer relations.
 While briefing to international delegations presentations are given by this
department about arms and weapons of POF.
 Arrangement of joint ventures are also done through this department.

MARKETING STRATEGY:
As POF is dealing in dangerous goods so the marketing strategy used is Focused
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approach.
Focused Approach:
Focused approach is used in target countries through personal visits and
presentations. The target countries includes, Sri lanka, Saudi Arabia, Bangladesh,
Bosnia, Turkey, Ukraine, Kenya, Lebanon, Jamaica.
E-MARKETING:
The marketing department through interactive e-mail and websites contacts
with its customers.

AGGRESSIVE MARKETING:
Aggressive marketing is done trough international exhibitions and trade visits.
MEDIA CAMPAIGN: Aggressive media campaign is regularized through international
journals through print and electronic media coverage. The following are the
journal's used for media campaign;
 Military technology
 Janes defense weekly & Janes defense journal
 Defense Publications
 Show dailies in all expos
 Asian military review
 Regional defense journal
 National events
MARKET EXPANSION:
The market expansion is done by adding new countries into focus including;
Lebanon, Malta, West indies, Spain, Belgium, Cote d' vorie, Jordan, Haiti, Kenya,
Vietnam, Nepal, Uraguay.
COMPETITORS:
The main competitors of POF are Iran, Greece, Serbia, Romania, Yugosalavia,
Turkey and China. And POF is competing with these countries on the basis of Price,
Quality, availability and delivery of weapons.
INTERNATIONAL PRESENCE:
The International presence of POF is made by regular exhibitions in IDEX in Abu
Dhabi, DSA, Malaysia. IDEAS, Karachi. Eurosatory, France. IDEF, Turkey and DSEI,
UK. And new expos and visits includes Shot show in USA, Africa aerospace&
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defense in South Africa, Bridex 2009 in Brunei and trade visits in Defense and
security in Thailand.
EXIHIBITION FOCUS:
The exhibition's focus is on;
 Showcasing of products and brand promotion.
 Making new customers and generation of new inquiries.
 Consolidating existing relationships and settlement of disputes.
 Identifying new products for joint ventures.
 Exposure to officers.

Due to, effect of marketing strategy the Export volume has been increased with
increase market share in international market.

STRUCTURE AND FUNCTION OF THE MIS DEPARTMENT

MIS department in POF Wah Cantt manages and updates a huge range of
information electronically.
MIS controls and manages different areas which are:
 Software development

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  Networking
 Hardware
 Website
 Database Administration (DBA)
 Hardware

Two types of network media is being used here:

 Fiber Optic
 DSL
Software being used:

 Oracle is being used as database management system. It is being used on

large scale. There is a huge database which is covering all the information of
employees and factories under POF.

 Developer is being used for programming and making graphical user

interface (GUI).

 However the payroll system uses COBOL, which is then converted to oracle
in MIS.

Software Development Approaches:

There are two approaches of software development:

 First approach is step wise approach in which each step of software

development process is performed by a different team. Each team is
responsible of performing a particular step for each module.

 Second approach is module wise approach in which a project is divided

into different modules and each module is assigned to a different
team. All the steps e.g. analysis, implementation, testing of that
module are accomplished by that team.

MIS Dept Is Using Second Approach i-e Module Wise Approach.

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 Areas covered by different modules are:
 Personnel
 Inventory
 Web
 Database Administration
 Hardware
 Networking

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WAH INDUSTRIES LIMITED
Pofs provide different commercial product according to need of different
organizations of Pakistan by name of wah industries limited (WIL).
Introduction:

Wah Industries Limited (WIL) is a public limited company incorporated under

the companies’ ordinance, 1984. Established in 1958.WIL is engaged in the
production of 12 Bore Shaheen Cartridges and marketing of a wide variety of
engineering products and chemicals, produced by POF according to
international standards and quality, at competitive rates. It’s PRIDE PRODUCT
of excellent quality and is popular with Pakistani hunters is the well known
12-Bore ammunition marketed under the brand name “SHAHEEN” cartridges.
The high quality of new varieties “SHAHEEN SUPER” and “SHAHEEN EXCEL”
in shot No.4, 6 & 8 have also been marketed. They are also the sole agents
for selling Civil Products manufactured by Pakistan Ordnance Factories. They
are manufacturing/supplying the following wide variety of products/services
according to buyer’s requirements:

12-Bore SHAHEEN Cartridges in Shot No. 4,5,6,7,8,9,BB,AAA,SG and LG with

31 gm game load.

• 12-Bore trap/skeet cartridges in Shot No. 7 & 9 with 24 gm competition

load.
• 12-Bore Shaheen Super and Shaheen Excel (Extra Long Length)
cartridges in shot No.4,6 & 8 with 16mm long head ,imported primer and 36
gm game load.
• Mild Steel, medium carbon Steel & Aluminium Ingots.
• Iron/Steel Castings and forgings.
• Carbide Tips, Tools, Gauges, Moulds, Dies and other Tool Room
facilities.
• Brass/Copper Sheets, Strips, Rods, Pipes, Wires and Profile Shapes in
any required size & quantity.
• Copper Pipes for Refrigeration, Air Conditioning and Sugar Industry.
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• Chilled Iron Shots/grit (Round/Crushed).
• Industrial Chemicals & Explosives i.e. Nitric Acid, Acetone &
Nitrocellulose, Nitroglycerine, etc.
• Pakistan National Flags.
• Testing/Analysis of ferrous & non-ferrous materials, refractory
materials, paints, lubricating oils and greases.
• Repairs and calibration of pyrometers and hardness testing machines.

Apart from the above, absolete/surplus stores and scrap (Brass, Aluminium,
Steel, and Wood etc.) generated as by-products in Pakistan Ordnance
Factories, are also disposed off by WIL through open public tenders/auctions.

Objective

The prime objective of the Establishment of Wah Industries Ltd is to utilize

the surplus production capacity of POF to meet the civil sector requirements.
This procedure is introduced to regulate the sale of civil production items.

Authority

WIL has been appointed sole selling agent of POF’s products in accordance
with agreement on 5th March, 1962 between POF and WIL. WIL is a
commercial enterprise of POF and is incorporated under companies
Ordinance 1984,Registered as a public company and functions with in the
preview of the memorandum and articles of Association and Companies
Ordinance to achieve its objectives.

The marketing Environment:

The matching process of company’s capability and customer wants takes
place in what we can call the marketing environment. The most obvious
ingredient of the marketing environment is our competitors who play vital
role. WIL has wide range of Products i.e industrial, commercial , Arms and
Ammo that’s why we use different modes to monitor our competitors
indicated as below:

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  Marketing research
 Questionnaire survey
 Public data base
 Telephone research
 Face to face research
 External data sources
Wah Industries Limited use different Channels of distribution to address
target customer’s need.
1. WIL Customers(Direct)
2. WIL Post Office Customer(mail order)
3. WIL Agents Customers.

WIL core competencies as compared to other business sectors

 Pricing
 Packing
 Features
 After sale service
 Delivery
 Quality improvement

PROCUREMENT & STORE DEPARTMENT

The purpose and scope of purchase department is to arrange procurement

for common use items, for store i-e plant & machinery, material and tools
etc. Which are available or can be developed indigenously from trade by
central purchase department (CPM). The Procurement and Store Department
has the following wings to proceeds the systematic working of the
department:
1. Purchase I
2. Purchase II
3. Purchase III

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Other wings to supplement the working of P & S of departments are as
under:
 Firms Registration Cell
 Cash Purchase Cell
 Budget Cell
 Store Verification Cell

PURCHASE- I
Purchase-I deals with the purchase of common use items of the all factories,
as for the specific material all factories have their own purchase department
at their disposal. P-I only handled with common use item of the all factories.
Purchase-I usually deals with the purchase of goods like:
Cement, Computer, Steel tools, Batteries, Spare parts of cars Furniture,
Carpet, Glass, Bells, Firefighting equipment and Ball bearing etc.
PURCHASE -II
Purchase -II usually handled the purchase process of the chemical and
necessary production processing materials. Purchase-II covers the following
objects:
Lubricants, Oil, Petrol, Desial, Coarsen oil, Furnace oil, Chemical, Gasses,
Paints, Safety equipment, Electrical items and Pipes.
PURCHASE -III
This department usually handled the purchase procedure of foreign
purchase. Thing comes under this department is technology based
machinery, plant that usually not available in the local market and if
available price of that plant is too much high that is why purchase is being
made by the foreign companies .the procedure is usually very simple not
involve too much paper work.
FIRM REGISTRATION CELL
For the quality assurance the department has its separate cell dealing with
the registration of the firms apply for the taking contracts or for taking
tender it is necessary as department does not publicly advertised these
tenders as firms themselves apply for the tender as per quotation are

27
demanded.

MAIN FINANCE DEPARTMENT:

Finance section commonly known as main cash office is one of the section
functioning under deputy director personnel management in director
administration department.

Its major role relates with cash management because it acts as pay master
for public fund, It also maintains non public fund accounts through main cash
office but here also basic role is the same like as release of payment on
receipt of approval from competent financial authority (CFA).audit teams of
CMA carryout periodically audit of public fund accounts of main cash office,
however for non-public fund accounts ,maintained by the main cash office,
independent quarterly audit is arranged by engaging an Asstt.manager of
cash office other than that of director administration department of CMA.
Accounting department is separate to finance department. POF work for the
welfare of employees so its working is different from private and public
sector and it is non profit organization.

Director Admin department control the budget of the following centralized

groups but has no administrative control over the expenditure incurred by
the centralized groups.

1. Chairman POF board

2. Member production coordination
3. Production coordination
4. Director and member POF board
5. Central purchase and stores
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6. Secretary POF board
7. Planning and budget
8. Public relations department
9. Director civil works
10. Quality assurance
11. Inspection department
12. OFLS Karachi
13. TLO Lahore
14. MIS
15. 699 FIU

Functions:

Main cash office performs the following three functions:

1 Paymaster for public fund

2 Maintenance of non-public fund
3 Maintenance of financial discipline
As clarified in the beginning, the primary and major role of main cash office
is as pay master for public fund. Thus as paymaster it arranges following
payment in respect of employees of director adman department centralized
groups ,salary of staff/officers, wages of workmen, TA/DA ,overtime ,night
shift refreshment ,final payment ,TPT &miscellaneous grant. On receipt of
payment instruction in the form of cheque slip the amount is released on
proper documentation.

Maintenance of non public accounts

So far Maintenance of non public accounts is concerned, main cash office

acts as custodian of following non public accounts:

1. Chairman POF board special fund

2. POF special fund

3. Central welfare fund

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 4. Group welfare fund

5. Central sports fund

6. Al-behbood shopping plaza fund.

Non-public funds are non auditable and are maintained on the pattern of
regimental funds.

Maintenance of financial discipline:

On the ‘financial discipline’ side, main cash office is responsible for

arranging: Quarterly audit of non-public funds (group welfare fund &group
sports fund) of all the factories/groups. The objective of reviewing the
financial transactions and control of public resources is to safeguard the
interest of organization. Main finance conduct audit of non public fund and
audit of public fund conduct by CMA .the audit reports of all the factories,
along with observations /recommendations of the audit teams are submitted
by main cash office, in a consolidated form, to chairman POF board for
information .thereafter, the instruction of the chairman are communicated to
the concerned heads of department for rectification etc.

Budget department:
One of the most difficult tasks facing today’s manager is planning for the
future in a world where in business conditions take place continuously. Major
currencies rise and fall, prices of raw material suddenly rise and sources of
supply become unpredictable .the best way to prepare for changing business
conditions is to devise a framework that contains a specific plan. But is
sufficiently flexible to allow adaptation to unforeseen changes .this is
precisely what a well designed budgetary system does.

Budgeting performs two vital management functions:

1 It formulates a comprehensive future plan of action

2 It compares actual results with the predetermined plan
Thus planning and control, two primary functions of management, are also
essential features of budgeting process.
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 POFs is an industrial organization under the federal govt. its budget is
prepared on the basis of production programmed for a particular year. All the
primary controlling authorities as detailed below are associated and the
budget is prepared with their participation:

1 POF gadwal
2 POF sanjwal
3 POF havellian
4 Explosives factory
5 S.A.A factory
6 R&D
7 Brass mill
8 Filling factory
9 Machine gun factory etc

Administration Department:
Mr. Walayat khan the Establishment officer attended me in
administration department. He told us about the functions of administration
department is to coordinate all departments. The duties of administration
department are as follows:

 Disposal of all matter / demand of POF association

 Fee concession
 WEC (3 seats in each department)
 Family medical card
 Consumable item (soap, towel)
 Declaration of assets
 Audit check reply
 Umrah package

Sub departments of administration department:

These are the further sub departments of administration department

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  Central welfare department
 OF-I/A-II Section
 Publication section
 Admin General

Functions of central welfare:

Main functions of main welfare department can be summarized as
under:-

1. Arrangement of all official functions.

2. Formulation of policies regarding welfare of POF employees.
3. Proceeding of applications received regarding financial
assistance from POF employees and non-POF as well.
4. Arrangements in connection with transportation of School
College going sons/daughters/wives of POF employees to various
educational institutions of Rawalpindi, Islamabad, Hassanabdal etc.
5. Arrangements of honorarium and connection with blood donation
(Rs. 400/-), re-imbursement of cost of spectacles (Rs. 350/-)
6. Supervision of C-04 canteen.
7. Admission of children of POF employees in various schools at
Wah and Rawalpindi.
8. Supervision of reaction center in 10 area and 19 area signalmen
barracks.
9. Issue of Urdu khabarnama regarding policies of POF.
10. Arrangement regarding payment of death grant Rs. 50,000/-
11. Arrangements of sending two employees in hajj in POF expense
every year.
12. Management of official masques i.e. Central Jamia Mosque, 27-
area mosque and ordnance house.
13. Matters of mosque in estate area like extension etc.
14. Provision of transport to Christian/other employees on religious
function.
15. Arrangements in connection with Moharram.

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16. Arrangements for deposit of Sui gas bills.

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Human Resource Department:
Here by human resource department is on duty to recruit new and most
eligible persons for the perfect job. The processes by which management
ensures that it has the right personnel, who are capable of completing those
tasks that help the organization, reach its objectives. Another par of the
current assessment is the job analysis.

Human resource planning can be condensed into three steps.

1. Assessing current human resources.

2. Assessing future human resource needs.
3. Developing a program to meet future.

HRP PROCESS
Major steps in the Human resource planning process are to ascertain:-

1. Goals and plans of organization

2. Current human resources situation
3. Human resource forecast
4. Implementation programs
5. Audit and adjustment

FORECASTING HR REQUIREMENTS
Forecasting of HR requirements, at POF is made on the following parameters:-
 Staffing Level
Number of employees needed to meet the strategic plans of the POF.

 Staffing Mix
There are following categories of working staff in POF as mentioned below:-

 Executives
 Officers
 Clerical staff
 Non-clerical staff
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Organization and Job Design

 Proposed projects for launching as per the future requirements.

3. Action Plans

 Staffing authorizations
The Regional office is authorized to hire employees by outsourced
company’s e.g. Security guards, Janitorial services, Sales & Marketing
staff.

 Recruitment
All the new recruitments on permanent basis is made according to the
laid down procedure and policies at Head Office Level. So, all the major
decisions are taken by the Senior Executive management of the bank
regarding recruitment of permanent staff.

However, recommendations / suggestions are taken by the Head Office

from Regional Offices time to time.

 Promotion & Transfer

Normally after every 03 years Promotion / Move-over is given to the
employees on the basis of their ACRs (Annual Confidential Reports),
performance reports, recommendations, seniority and so on.

 Organizational changes
As per the requirement of the bank, organizational changes are also taken
whenever bank management feels the changes necessary for the bank.

 Training & Development

Training & Development is necessary to equip the employees with new
technologies. It’s also helpful for career growth and development. Employees
learn and develop new skills, or areas of development in new Techniques
and latest information, so that, after the necessary training on specific fields,
better & accurate functions and operations may be executed in the bank.

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  Recruitment Planning
Recruitment begins with a clear specification of

1. The number of people needed through HR Forecast

2. When they are needed

 Compensation & Benefits

Compensation and benefits are given to employees.

 Labor Relations
The information for job analysis is better for both management and unions
for resolving disputes.

Short-fall/weakness
Strengths:

1. POF always followed its customer’s needs and thus providing

quality services to its customers.
2. POF has built its strong association with many local and foreign
organizations.
3. POF has well established performance evaluation process of
employees to enhance their performance level.
4. Motivational programs are held to make employee`s more
productive.
5. Security system of POF is excellent, because of highly sensitive
area.

Weakness:

1. Employees are not so much productive to encounter new

challenge.

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 2. There is so much manual work (paper work) instead of
computerized work.
3. POF has no Accounts department to handle accounting matters.

Opportunities:

1. Research and Development projects have been undertaken to

minimize the dependence of foreign suppliers.
2. The Factories in POF employee some of the latest state of the are
processes, including computerized numerical controlled
machines and flexible manufacturing systems.
3. Auditing process must be strong in order to make the employees
more beneficial for POF.
Threats:

1. Chinese goods have a negative impact on POFs production due

to cheapness. It is challenge for POF to reduce the cost of
production.
2. Departments are centralized but there is no centralized
database, this may reduce the productivity and time consuming
as well.

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Conclusion

No doubt the POF is organization but the working substances are the
human beings. It goes with out saying that Human resources are the most
important in the organization and so does the Human Resource Department.
It integrates all the activities and functions of the bank like job analysis,
recruitment, staffing, training, designing compensation package and
employees appraisal system.
Human Resource Department plays the key role in the hiring,
retention, motivation and promotion of the employees. Actually it assigns the
specified duties to the specified persons in this age of specialization.
Human Resource manager should be well versed and confident in his
field. He should be humane, well natured and have go face reading
capabilities. All this ensures his success. He should be of the notion “victory
is not the everything but the way of fighting is”.

Suggestions & recommendation

As for as strategy planning is concurred POFs management is doing very good job.
How ever there is a need of a strategy to change the corporate culture which can
lead POFs to make an organization of international level.

Reference & sources

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www.pof.gov.pk

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