Al-Gazi Tractors Limited

Al-Gazi Tractors Limited
EXECUTIVE SUMMARY:
Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.The area of
factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT”
of Italy. The main purpose of the company is assembling and distributing of Fiat
Tractors. They assemble two models of tractors i.e. 480-S and 640. The depletion rate of
480 is 85% and 640 are 76%.
Forecasting entirely depends upon the marketing department. Previously 98% of sales
was made by contract with ADBP but now it is carried out on net cash payment basis.
Because delivery through ADBP has been stopped. Highway method is used for
transportation purpose.
To reduce inventory level they adopt safety stock method. They have different lead-time
for different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing
inventory. Al-Ghazi Tractors Limited has a separate quality control department. The
laboratory is well equipped to under take chemical and mechanical testing of metals. Al-
Ghazi Tractors Limited has received the ISO 9002 Certificate.
Operations Management 1
INTRODUCTION OF THE ORGANIZATION
Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.They

started operations in September 1, 1983. They started their production at D.G.Khan
Auxiliary Plant in February 20, 1985.
A Joint Venture of PACO and Habib Group, NDFC and Fiat of Italy controlled
management from September 1983 to August 1990. It was incorporated as a public
limited company with an authorized capital of 100 million divided into 20 million shares
of Rs. 05 each.
The joint project was first of its kind in pakistan in the line with govt policy of
private sector partcupation in nation’s building program of high priority. Both public and
private sectors worked together upto 1990 and finallyl Al Ghazi Tractors limited was
nationalized in the same years.
Al-Ghazi Tractors Ltd. is rated among the Top Companies of Pakistan & has been
the market leader of tractors in Pakistan Al-Ghazi consecutively for the years 1994, 1995
and 1996 by the Karachi Stock Exchange. Al-Ghazi Tractors was conferred the
Management Excellence Award by the Management Association of Pakistan for
demonstrating the best Corporate Performance in the Engineering Sector of Pakistan for
the years 1995 and 1996. Al-Ghazi Tractors is the first Company in the Automobile
sector of Pakistan to have achieved the highest quality award “The ISO 9002”
registration that gives Al-Ghazi Tractors Ltd. the international recognition as Producers
of Fiat and New Holland Tractors.
With a strong dealer-network dotting the country form Karachi to Gilgit 1 with
over 300 service workshops to attend to the 100,000 Fiat Tractor Models 480-S and 640
and newly introduced model New Holland operating in the country. Al-Ghazi Tractors
today is the market leader with bookings exceeding 50% of the total tractors market in
the country. The company is capable of producing 15,000 tractors on a single assembly
line.
PRIVATIZATION
Al- Ghazi Tractors Limited was privatized on December 9, 1991 according to the
new policy given by Nawaz Sharif government and it was taken over by a forgien
investor Al-Futtaim of Dubai.
Now, the Al- Futtaim group owns 54% of Al-Ghazi tractors limited.s shares
where as FIAT held 42% of shares and 5% of shares are held by the employees in the
local market.
TECHNICAL COLLABORATION WITH ITALY

FIAT has joint hands with Al-Ghazi Tractors Limited to fully furnish know-how
and modern technoloogy in the manufacturing tractors as well as their components so that
the company does not rely on imports thus saving foreign exchange of country.
Al-Ghazi Tractors Limited is backed by FIAT technological expertise and has full
support of italian government who are providing grants for assistance in the shape of
personal training in pakistan.
MISSION STATEMENT
“ OUR ENDURING COMPETITIVE EDGE IS THE QUALITY OF OUR TRACTORS”
MAIN OBJECTIVES OF AL-GHAZI TRACTORS LIMITED:

Keeping in view the economic and structural conditions of Pakistan & the firm’s
missions the company has formulated the following objectives:
 To reduce the expenditures in foreign exchange.
 To increase employment.
 To fulfill the government policy of promoting industrialization in the remote areas of
the country.
 Contibution towards national self-reliance in engineering industry.
 To be able to satisfy customer’s needs of buying locally assembled vehicles.
 To achieve the production capability so that the cultivator may det his tractor readily.
 To pay sepacial attention to the quality of the finished products to get customer
satisfaction.
 To provide prompt and effective after sale services and tactical advice together with
adequate supply of spare parts.
 To achieve maximum localizaton of components .
ORGANIZATIONAL STRUCTURE
Organizational structure of Al-Ghazi Tractors Limited is that both chairman and
CEO are appointed by the Board. The board appoints CEO for running of day to day
matter of business in line with the company’s policy and delegation of athority table.
Vital functions of board are the establishment of company objectives and
approval of annual budget.CEO is also responsible for the corporate strategy and the
formulation of long and intermediate term plans and programs. The CEO privides an
integrating function for the entire organization. He gives the organization right direction
and purpose. For better survival and growth, group decision making through committees
and meetings is a common practice of Al-Ghazi tractors limited.
The organozational structure of Al-Ghazi Tractors limited is split into 5 functional areas;
1. Personnel and administration
2. Finance
3. Material management
4. Plant and production
5. Marketing
chart
MAIN OFFICES:
Main offices of the company are located in Karachi, Dera ghazi khan,Lahore, &
Multan, where as regional offices are located in Nawabshah, Sukhar, Islamabad, &
Peshawer.
Karachi office:
Karachi office is registered head office of the company.

Functions:
• Material management
• Finance
• Personnel & administration.
LAHORE OFFICE:
It’s major function is marketing the product of the company.
MULTAN OFFICE:
It’s major functions are :
Marketing
After sale service.
warranty activities
provision of spare parts to lower punjab area.
LOCATION
The location of facility involves the committment of resources to long range plans.
Locations take on even greater significance because those plans represent the basic
strategy for assessing markets and may have significant impact in revenue, cost and
service level to customers and clients. Technological constraints eliminate most of
possible locations. Location of industry is selected on the basis of:
• Availability of inputs to products or raw materials on cheap prices and
• maximization of profits.
• Proximity to potential customers to be served.
• Proximity to required labor for performing the operations.
• In plant location objective is to minimize the sum of all costs, not only current
but also long term costs.
LOCATION OF AL-GHAZI TRACTORS LTD.

The location of Al-Ghazi Tractors Ltd. is about 12 kilometers on main Sakhi
Sarwar Road from Dera Ghazi khan in the South Punjab. Total land area covered by the
plant is approximately 100 acres.Plant is located at about 30 acres whereas the colony is
spreaded over 70 acres of land. AGTL select D.G.Khan because Govt. gave option to
AGTL to select either D.G.Khan or Khushab. Both were tax free zone. The location had
been selected in early 80’s during the period of late President Of Republic Of Pakistan
Gen. Zia-ul-Haq when it was declared free industrial zone for five years.Plant was
inaugurated by Lt.General Saeed Qadir on jan 11, 1984.auxilary plant started it’s
production on february 20, 1984. the main plant started it’s production on april 01, 1985.
FACTORS
Due to following factors the plant was selected at the above location.
TAX FREE ZONE

To promote the back-word areas of Pakistan certain areas were announced as tax free
zones in all provinces. The district of Dera Gazi Khan was one of them. Habib and group
decided to establish a tractor factory in this region. A factory “Al-Ghazi Tractors Ltd.”
was established by joint venture of PACO, HABIB GROUP, NDFC, and FIAT of Italy in
September 1983.
FAVORABLE LABOR CLIMATE

The labor plays an important role in the selection of the labor-intensive company. So the
selection of this location was also favorable labor for construction of the factory.
TAXES AND REAL ESTATE COSTS

One important factor was that the real estate’s cost was too much lower as compared to
other areas of the country. That was the other main reason for the selection of the site.
CONSTRUCTION COST
The major cost involved in any organization is in the shape of the construction costs. That
took a large amount. But at that time the labor was available at the cheaper rate. Due to
which the site was selected at that place
PROXIMITY TO MARKETS
It is located in the district Dera Ghazi Khan of province Punjab whose boundaries
attaches to all four Provinces of Pakistan, especially the most fertile areas of Province
Punjab and Sindh. So, it has more proximity to the market, as Dera Ghazi Khan and
Multan Divisions are famous of being Cotton Belt.
AVAILABILITY OF UTILITIES
The basic utilities are easily available at the place. The facility of fax, electricity, Sui Gas
and telephone was provided by Govt. at that time to encourage the partners to establish
plant there. So these utilities proved much helpful to contact with the global market at
every moment is a key to success. The transportation facility is easily available at factory
place.
FACILITIES PROVIDED TO ATTRACT THE EMPLOYEES
AGTL has the following facilities for his staff. Which are considered to be important.
1-HOUSING FACILITIES
It is having housing facilities for 126 family homes and quarters for
executives and workers. The population of the staff colony is
approximately 500.
2-MOSQUE HOSPITAL AND SCHOOL FACILITIES

There is a Mosque, Hospital with ambulance and AGTL primary school
for the children of staff residing in the colony. AGTL is having a school
bus for pick and drop services to school and college for the children of
staff studying in Dera Gazi Khan City.
3-UTILITY FACILITY
Clean water supply with U.V filter and private electric generator for Un-
interrupted power supply for the staff because the weather in summer is
much hotter here.
4-RECREATION CENTERS
Recreation centers for executives, workers, children and ladies with indoor
games TV, Videos, Dish Antennas and other facilities are available at
AGTL staff colony.
EMPLOYEES
There are 536 employees which, are working in the factory.
DEMAND FORECASTING
“A forecast is the prediction of future events used for the planning purposes”
.
Forecasting has an important role in scheduling all the operations of the organization.
Forecasting is based on qualitative as well as quantitative methods. Management needs
accurate forecasting of demands to make schedule of all operations and to cope with lead-
time of different and reduce inventory levels. Accurate forecast allows schedulers to use
machine capacity efficiently, reduce production times, and cut inventories.
FORECASTING TECHNIQUES
There the four forecasting techniques are available for the purpose of the forecasting of
the demand, which are as under.
1) Qualitative techniques
 Sales Force Estimate
 Executive Opinion
 Market Research
 Delphi Method
2) Quantitative techniques
Causal Techniques
 Regression
 Correlation
Time Series Method
 Naive Method
 Simple Moving Average
 Weighted Moving Average
 Exponential Smoothing Method With trend & Seasonal Effect
FORECAST AT AL-GHAZI TRACTOR LTD.

There is no forecast method at Al-Ghazi Tractors Ltd. The advance booking
period is normally six months. So, Head Office, Karachi, sends monthly production
schedule to the factory according to the number of bookings. Al-Ghazi Tractors Ltd. has
a strong dealers network from Karachi to Gilgit at the district level but the sale is done
through ADBP. The bank prepared the draft and send to AGTL for booking. The plant is
capable of providing 15,000 tractors per year. Whatever the demand is fulfilled by
producing that required amount of tractors.In year 1999-2000 , the firm produced 18000+
tractors utilizing over time to meet the orders out of which 16366 were 480-S & 2049
were 640.
FACTORS AFFECTING DEMAND

There are two main types of factors affecting the demand of the tractors.
 External factors
 Internal factors
External Factors
Following are the external factors that affect the demand.
 ADBP’s loaning policies and procedures
 Climatical disasters such as floods
 Changes in govt. laws, regulations, polices and tariff structure.
 Economics conditions of the country
 Supply constraints of local and CKD components.
Internal Factors
These factors are listed are follows
 High manufacturing cost and selling expenditures
 Promotion Policy
 Lack of professionalism in dealerships.
PRODUCTION AND CAPACITY

CAPACITY
Production is essential for any organization’s continued existence and society’s
well being General Manager (plant) is responsible for managing production and all its
allied activities.
The main features of production management at plant are
1. Efficient execution of required production
2. Maintaining quality in accordance with FIAT specification and standards.
3. Producing goods at economical cost.
Total capacity of plant is 15,000 tractors per annum. Full scaleProduction of FIAT
tractor models 480-S and 640 commenced from April, 1985. The plant operates on high
efficiency because assembly operation wastes are negligible. The optimum production
level is 10,000 tractors and Al-Ghazi Tractors Limited is now having 50% market share.
Al-Ghazi Tractors limited is using effective capacity i.e., maximum out put under
realistic conditions and it implies one-shift operation.
PRODUCTION DATA
MODEL 480-S 640

YEAR
1993-94 3686 1861
1994-95 4400 2015
1995-96 4415 2202
1996-97 3841 1098
1997-98 5375 913
1998-99 10012 2188
1999-2000 16366 2059
INVENTORY MANAGEMENT
“Inventory is a stock of anything held to meet the future demand”
Al-Ghazi Tractor is manufacturing organization, the management gives more

emphasis on raw material inventory and mostly inventory is held in terms of input
products and raw material. Most of the inventory is treated as dependent demand for the
assembling. Here there is a separate Material Management department.
MATERIALS MANAGEMENT
“Materials management concerns short range decisions about supplies,
inventories, production level, staffing patterns, schedules, and distribution”.
Decisions in these areas affect the whole of the organization, either directly or
indirectly.
CENTRAL ROLE OF THE MATERIALS.

As the AGTL is a manufacturing organization so they need the input material for
the purpose of the production of tractors from the vendors in country as need as well as
the foreign countries. This material takes round about the 80% while staff takes 20% of
the resources of the organization.
The other reason is the impact of inventory on the profitability of the organization.
As on keeping more inventories the organization has to bear much more holding cost.
FUNCTIONS OF THE MATERIAL MANAGEMENT

The Sales, Vendor Development, Purchasing, Production Departments are tied
collectively to perform the functions relating to the materials. The Sales Department
makes the forecasts of the month, on the basis of orders paid by Agriculture Bank of
Pakistan. Then these are send to the production department, then Production Manager
makes the monthly production plan, then depending upon the production, they need the
raw material which is asked by Sales Department to the Purchasing department, then this
department makes the required purchasing plan. This plan is made for the purchase from
the inside as well as from the foreign countries. The purchasing is made according to
documented procedures of ISO 9002 standards discussed in ISO 9002.
OBJECTIVES OF INVENTORY MANAGEMENT

Following are the objectives of the inventory management system.
 To minimize cost
 To maximize profits
 Reducing the possibilities of stock out
 Continuity in the production system
 To avail discounts
TYPES OF INVENTORY MANAGEMENT

The inventory can be divided into two broad categories.
1. Raw Material Inventory.
2. Finished Goods Inventory.
RAW MATERIAL
The company needs raw material for the purpose of the production by the company can
divide the items, which come under the raw material, into two broad categories.
a) Imported material
b) Local material
1). IMPORTED MATERIAL
The main items, which are imported by this company, are the gear cases and
Engine and the critical items, which are necessary for the purpose of the production by
the company. The company imports these items from Italy, Turkey.
The raw material fall under this category for
a) Model 480-S is 15%
b) Model 640 is 24%
2). LOCAL MATERIAL

AGTL is having 359 vendors from all over the Pakistan. These vendors are
responsible for providing the high standards products to the AGTL. This contains the
main portion of raw material. These are also categories according to the Models
a) Model 480-S 85%
b) Model 640 76%
REORDER POINT
At any time the raw material of 200 tractors is present in the factory premises.
Whenever the material falls below it a fax is sent to Head Office for more raw material.
The reorder point in the company is the raw material of 200 engines of the tractors.
LEAD TIME
Lead-time is the time required for receiving goods from the suppliers. AGTL has two
types of suppliers.
Local suppliers
1) Vendors from Lahore area have lead-time of 10 days.
2) Vendors from Karachi area have lead-time of 30 days.
 Foreign suppliers
Lead-times for foreign vendors from Italy and Turkey have usually 6 months.
METHODS FOR INVENTORY MANAGEMENT AT AGTL

ABC PLAN FOR INVENTORY
AGTL uses ABC, system that is the process of dividing items into three classes
according to their Rs. Value and usage.
Category A:
A category includes those items that require largest money investment about 80 %
of the overall investment while they account for only20 % only. It requires continuous
review of the items included.
It includes the following items
1). Engine of tractor
2). Gear box of tractors

3). Imported items
Category B:
B category is the second important category includes those items that require
second largest money investment about 15 % of the overall investment while they
account for only 30 % only. It requires periodic review of the items included.
It includes the following items
1). Items used in transmission
2). Nozzles
3). Tires
Category C:
The last category is C category includes those items that require least money
investment about 5% of the overall investment while they account for 50 % of all items.
It includes items, which are prepared by local vendors.
Quality Policy
In Al-Ghazi quality is a dynamic state associated with the products, services,
people, processes and environment that meets or exceeds the expectations of their
customers and it is a strong edge on the basis of quality against the competitors. There is
well-established Quality Control department in the company that assures quality by
incorporating other departments.
DEPARTMENTS
There is well-established setup to ensure quality in the company. The following
departments are directly concerned with quality assurance in the company.
• Quality Control department.
• Purchasing department.
• Inspection department.
• Production department.
• Vendor development department.
There is a strong integration of all the departments to make assurance of quality at

the every stage of whole the process starting from purchasing to final inspection of
finished products.
QUALITY CONTROL IN PURCHASING

About 85% parts of 480 model and 75% of 640 model are obtained from local
vendors while the remaining parts are imported from Italy. For local parts the Vendor
department gives drawing and material specification to Vendors. Samples are obtained
from them and are sent to well establish Material & metallurgical Laboratory, which is
situated in the plant for calibration of, required specification of the part and strength of
the material. If the results are up to mark then ordered are placed to them. Otherwise
engineers of the company assist them in solving the problems relating to strength and
specification of the part.
The purchased parts are inspected in the company and Karachi where company’s
headquarter is situated, by taking sample among them on the following criteria.
13 out of 100 items.
32 out of 200 items.
The specification of the items, quality and the strength of material of materials
used in parts are checked by material and metallurgical engineers in the laboratory. If the
items are 2% of the total sample are defective than the whole lot is not accepted. Then all
the items are checked and cost of checking and inspection of these items is beard by the
vendors and all defective items are replaced and repaired by the vendors. If defective
items are less than 2% than all defective
are replaced and repaired by the vendors.
AL-GHAZI TRACTORS LIMITED D.G.KHAN

Quality Control Department
Sampling Plan
LOT
SIZE ACCEPTANCE QUALITY LEVEL
0.65 1.5 04 6.5
N K R N K R N K R N K R
2-10 % % --- % % --- 03 00 01 02 00 01

9-15 % % --- % 00 01 03 00 01 02 00 01
16-25 20 00 01 08 00 01 05 00 01 08 01 02
26-50 20 00 01 08 00 01 13 01 02 08 01 02
51-90 20 00 01 13 00 01 13 01 02 13 03 03
91-200 20 00 01 13 00 01 13 01 02 13 03 03
201 & 32 01 02 32 01 02 32 03 04 32 05 08
ABOVE
AQL FOR MACHINE PART = 1.5

AQL FOR CASTED PART = 6.5
N = # OF SAMPLES FOR INSPECTION
K = ACCEPTABLE LIMIT
R = REJECTED LIMITED
AQL FOR HARDWARE 0-200 = 05%
AQL FOR HARDWARE 201-500 = 03%
AQL FOR HARDWARE 501& ABOVE = 02%
AQL FOR HOOD ASSY. = 05%
LIST OF COMPONENTS ACCEPTED ON FITMENT/FUNCTIONAL TEST

 Hudraulic lift
 Steering box
 Instrument cluster
 Hood
 Water body
 Fenders
 Self starter
 Alternatos (generators)
LIST OF PARTS CHECKED OUTSIDE THE PLANT DUE TO LIMITED
INSPECTION FACILITY AT THE PLANT
 Gear box
 Axle casing
 Oil sump
 Piston
 Gears
QUALITY CONTROL DURINDG WORK IN PROCESS

As the lot is accepted on the basis of sample and it may be possible that there are
some defective items in the lot, due to this during the process on assembly line these
defective parts are identified and than Quality Inspector or the employees working on
assembly line separate them out and latter than these are returned to vendors.
The following are major activities/operations on the assembly line.
1) Gear box checking
2) Transmission
3) Coupling of Transmission with Gear box
4) Test Bench
5) Coupling of Engine with Transmission
6) First line
7) Paint shop
8) Second line
9) Final inspection
There is chained relationship among all above activities and operations. If one person
fails to identify a defective item than the next one will identify it. The Quality Inspector is
on the assembly line to check the quality of the items and to identify defective parts.
FINAL INSPECTION
In the last a group of Quality Inspectors examines the finished product. They
check the paint and performance of tractors on the “Roller test” to check the gear, speed
and working of the tractors. After it each and every tractor is checked on the road before
the delivery. For this purpose meter reading is noted before and after the test. Each and
function is checked in the Road Test. After it pre delivery test is completed.
CHART ?
TOTAL QUALITY MANAGEMENT
“Total Quality Management is an approach to doing business that attempts to maximize

the competitiveness of organization through the continual improvement of the quality of
its products, services, people, processes and environment”.
In Al-Ghazi Tractors Ltd. management has been taking the following steps for Total
Quality Management.
1-EDUCATION AND TRAINING
The management has established a training center in the premises of the company
for training to the managers and workers to increase the performance at every level. This
improvement in performance is directed towards satisfying such cross-functional goals as
quality, schedule, and others activities. Before audit of ISO 9002 implementation in the
company all the employees who are concerned with quality were given training so that all
the employees could understand all the documented procedures, authorities and
responsibilities of each other in the company. Some managers were sent to different
seminars and workshops to learn about ISO 9002.
Now a days the companies has introduced their new product New Holland tractor
in the market. For this they are giving training to new hired employees about assembling
of the tractor.
2-TEAMWORK
In Al-Ghazi there is strong existence of teamwork. These are the managed group
of the employees doing their best competitive efforts to cope with the barriers, rivalries
and distrust among different departments to improve the quality of the their products. In
the company the employees have
3-CUSTOMER FOCUS
In Al-Ghazi all operations are directed satisfaction to both external or internal
customers .The product produced, to the external customers is totally checked by the
internal customers. The internal customers in Al-Ghazi check the quality of items, semi-
finished goods during process because the work of one depends on the work that proceeds
them.
OBSESSION WITH QUALITY
For obsession with quality the employees are trained from time to time to learn
the philosophy “ how can we do better ” the suggestion given by the employees about
quality are appreciated in the company.
SCIENTIFIC APPROACH
As the engine of the tractors are produced in Italy for Fiat and for New-Holland .
From New-Holland Company which is a subsidiary of Fiat group. These both are
operating 13 research and development centers located in Brazil, Belgium, Canada,
England, India, and Italy, United States. Besides it both is directly operating 19
manufacturing centers and 26 sales offices around the world. These research centers are
using scientific approaches to develop and modify their existing and new products.
CONTINOUS IMPROVENENT OF SYSTEM

The management of Al-Ghazi tractors Ltd. has taken many steps to improve their
system in order to continually improve the quality of products and services. Employees
are trained from time to time and new technologies are adopted. Recently company has
introduced hydraulic pressure engine in their 486 and 640 models.
A new product New-Holland has been introduced in the market that is symbol of new
technology.
EMPLOYEE INVOLVEMENT
Employees are involved in all the matters relating to quality, purchasing and other
functions of the company. It results in good decision making and more effective
improvement by bringing more minds to bear the situation.
PRODUCTION PROCESS
The process design in the assembly line of tractors consists of the following operations an
activities.
 Gear Box
 Transmission
 Coupling of transmission with Gear-Box
 Test Bench
 Coupling engine with transmission
 First line
 Paint shop
 Second line
 Final inspection
1-GEAR-BOX
Engines and many parts of the tractors are imported from Fiat manufacturers in Italy and
Turkey. During the journey from Italy to the plant many parts of gearbox get loose. On arriving
in the plant, during assembling certain operations are performed by technical individuals, are
discussed as under.
i) CLEANING OF CASE FROM INSIDE
Here the case of gearbox is cleaned from inside because it is much effected due to dust.
The dust is removed from inside the case by cleaning it with some dust-removing
agents.
ii) COUNTER SHAFT NUT TIGHTING AND STAKING.
Some parts of gearbox get loosed because of journey in ship and later on trucks. Here
shaft is tightened and
some other items are assembled to it.
iii) TRANSMISSION SHAFT COVERS TIGHTENING.
After counter shaft nut tightening next the transmission shaft cover is tightened
because of above reasons.
iv) SPILTER TIGHTENING AND LOCK PLATE BENING.

After transmission shaft cover tightening a splitter of weight of 9.5 kg is fixed into the
Gearbox by tightening bolts and locking plates are bent.
v) CHECK POSITION OF MAIN SHAFT INNER AND SEAL AFTER INSERTION OF
P.T.O. SHAFT.
It is a final operation in the gearbox checking. Here it is checked and assures that our
shafts are on its right place or not, further corrective actions are taken to make it ready.
Then gearbox is totally sealed after insertion of P.T.O. shafts.
2-TRANSMISSION
The following are the operations that are performed during transmission.
i) CLEANING FROM INSIDE.
Here nozzles that are to be fitted into gearbox are cleaned. Others parts are also cleaned and
oiled.
ii) BEVEL PINION NUT TIGHTENING.
It is the second operation in transmission. Here the bevel pinion nut is tightened into the
gearbox.
iii) BEVEL PINION ROTATING TORQUE.
Bevel pinion rotating torque is cleaned and made ready for assembling into the gearbox.
iv) DRIVE HEAD TIGHTENING.
Drive is a separate part, which is later adjusted to the gearbox, is tightened with some of
other parts.
v) BEVEL DRIVE ROTATING.
Bevel drive rotating is cleaned and its specification is checked and is sealed by adjusting it
into the gearbox.
vi) BEVEL DRIVE BACKLASH.
Here the bevel drive is recoiled so that it is ready for coupling to gearbox and engine.
3-COUPLING OF TRANSMISSION WITH GEAR-BOX

Here gearbox and all other parts, which are prepared in transmission, are coupled and
the following operations are performed.
i) GEARBOX WITH TRANSMISSION TIGHTENING.
Here gearbox is coupled with transmission by tightening that integrates them.
ii) FINAL DRIVES TIGHTENING.
Drive head, which is a separate part, is tightened into coupled gearbox and transmission.
iii) BREAK PEDAL ADJUSTMENT .
Here the position of break pedal is adjusted for both forward and back Tires with the
engines.
4-TEST BENCH
Here the engine is checked to check that all its parts are at their its correct places or not,
further actions are taken later on.
i) OPERATION TEST.
Here the engine is checked by engintioning it and the performance of the engines are
checked to ensure its performance.
ii) CLUTCH TO FLY WHEEL TIGHTENING
Here the flywheel are checked and tightened strongly with the transmission.
iii) ENGINE WITH TRANSMISSION
Here the engine is combined with the transmission and bolts are strongly tightened.
iv) MASTER CLUTCH PEDAL ADJUSTMENT
Here the master clutch pedal is adjusted.
v) HYDRALIC LIFT TRANSMISSION TIGHTENING
Here hydraulic lift is fixed and tightening with transmission.
vi) LEVER TO STEERING BOX TIGHTENING
Here lever of tractor is tightening with the lever to transmission.
vii) FRONT AXLE SUPPORT TIGHTENING
The bolts of front axle are tightened to the transmission.
viii) DRAG LINK TO STEERING ARM AND AXLE TIGHTENING

Here small and big axles are tightened to transmission.
ix) CORRECT APPLICATION OF PROTECTION TO VARIOUS PARTS
Here different parts are checked and adjusted to their correct places.
5-PAINT SHOP
i) WASHING
Here to remove dust the body of engine , the body of the engine is washed with hot mixture
of hot water and chemicals.
ii) PRIMER
Here the body is make prepared for paint by allowing to remained in the hot air.
iii) PAINT
Here the steel body is painted in the “Paint Shop”.
6-SECOND LINE
i) INJECT GREASE IN ALL LUBRICANTS
Here grease and other lubricant oils are injected to engine and moving parts of the tractors
like wheel.
ii) ELECTRICAL SYSTEM
Here all electrical wiring system is built ion to the tractor a d a battery is adjusted in the
tractor. All lighting bulbs are put bonnets relevant places.
iii) ALIGNMENT OF STEEL METAL
Here the painted body of the tractor is aligned tom the engine and other body of the tractors.
iv) FRONT WHEEL TIGHTENING
Here the bolts of front line are tightened and also are injected grease to it
v) REAR WHEAL TIGHTENING
Here the bolts of the back wheel are tightened, and the inner parts are oiled with Mobil Oil.
vi) WHEEL ALIGNMENT
Here the front and back wheels are alighted and their bolts are tightened.
vii) OIL CHECKING
Here the oil levels are checked and fill oil to it and after it the final inspection is made.
7-FINAL INSPECTION
The following are the operations, which are performed during final inspection of finished
tractors.
i) CHECKING OF OIL LEVEL:
 Engine oil level checking
 Gear Box oil level checking
 Air cleaner oil checking
 Water level checking
 Weight test of Hydraulic pressure
ii) CHECKING OF OPERATING PARTS:
 Clutch play tightening and sound test
 Tightening of break L/H & R/H
 P.T.O Clutch test
 High, low gear sound checking
 1-2-3-4 & reverse gear checking
 break seal of L/H & R/H
 Final drive tube leak
 Differential case hole and sound checking
 Gear box top cover leak checking
 P.T.O top cover leak checking
 P.T.O plate leak checking
 P.T.O cover leak checking
 P.T.O seal leak checking
 Differential leak checking
 Engine sound checking
 Lift pump support checking
 Automisophry support checking
 Paint cover checking
 Fuel engine pipe leak cover checking
 Top hydraulic leak checking
 High pressure pipe leak checking

 Low pressure pipe checking
 Steering plate leak checking
 Steering loose/tight/free checking
 Wheel alignment checking
 Tie rood (rubber boot/pin) checking
 640 fender & distance checking
 Sheet metal (paint/welding/crack) checking
 Grease checking
 Tire’s air checking
 Self starter checking
 Leaving box checking
ELECTRICAL LIGHTING SYSTEM CHECKING :
 Parking lights checking
 Parking indicators checking
 Neutral switch checking
 Head light low checking
 Head light high checking
 Beam indicators checking
 Oil pressure checking
 Alternate light checking
 Alternate junctions checking
 Fan belt (extension/loose) checking
 Fuel gauge checking
 Temperature gauge checking
 Main wire clip checking
 Back lights checking
 Horn checking
 Yellow lamp checking
 Fuse box checking
 Wire fitting checking
 All body paint checking

 Sheet metal checking
DISTRIBUTION FUNCTION
The distribution function is the part of the marketing department and its activities are as
follows.
 Booking of tractors
 Delivery of tractors
 Handling of payments
 Preparation of reports for MIS
 Close co-ordination with production and material management department.
1-BOOKING OF TRACTORS
There are two types of tractors bookings i.e., against ADBP loans and cash
bookings are registered with the company either by customers over the counter or
through dealership network. 90% booking’s are being entertained through dealers.
2-DELIVERY OF TRACTORS
On the delivery side prime functions is to obtain information form Material
Management so as to ascertain the availability for tractors. After the availability of
tractors delivery scheduled is circulated to the dealers by the way of intimation letters to
customers.
3-HANDLING OF PAYMENT
If the tractor is ordered on cash basis then it is immediately delivered to the
customers from stock that the company holds but if they put to loan order such
documents are passed on to the payment handling section where the sets of documents
are submitted to ADBP, bank drafts for its encashment in accordance with prevalent
Agriculture Bank procedures.
4-SERVICE FUNCTION
The function of this department is to look after products and their after sales
service. This department is not a profit oriented department. Its operations are directed
towards cost savings, which are conducted in a business like manner. It provides prompt
and satisfactory after sales service to the customers.
5-PARTS FUNCTIONS
The aim and objective of Parts Department is to ensure availability of all
necessary imported and local parts for the ease and convenience of the end user.
ISO 9000
ISO 9000 is quality system standards and are the highest criteria of quality in the
world. Many companies in EC, Arab countries, USA and other countries are now
demanding ISO 9000 registration from the suppliers around the world. Approximately
45000 companies around the world are ISO 9000 certified. ISO 9000 is effecting industry
and business in every sector. Due to the importance of the ISO 9000 many companies in
Pakistan have started their journey on the certification.
ISO 9000 IN AGTL

AGTL is the first company in the automobile industry of Pakistan who has
achieved ISO 9000 quality award. The ISO 9000 registration gave AL-Ghazi Tractor
Limited the international recognition as producer of FIAT Tractors.
REASONS FOR OBTAINING ISO 9000

 To maintain the world class standard of Fiat.
 To produce quality confirmed tractors.
 To determine all steps in the production so that it can be identified and corrected.
 To have quality control over the purchases from the vendors to all over the
Pakistan.
 To have an effective internal audit to identify mistakes and takes corrective
actions.
 To be automobile leaders in Pakistan.
 To expand the market to the other nearest Asian countries.
ISO 9002 IMPLEMENTATION IN AGTL

The customers of every organization in response to new global competitive
environment have become more quality conscious. Now due to it some of your customers
might already asked you about the ISO 9000 series quality standard and your attention in this
regard. Now a-days, no matter what business you are in, you will be eventually be asked,
“Are you ISO certified” by your customers. Now a days in the World, just about every
business, from the large multinationals to the local organizations have pursued or pursuing
certification to satisfy and win the hearts of their customers.
In Pakistan about 90 companies have still certified ISO 9000 that is a positive
indicator as it laying a foundation of Quality Management in the companies. Its nice to
see so many companies achieving ISO 9000 registration the growth is extraordinary. Al-
Ghazi Tractors Ltd. the market leader in tractors in auto industry is the pioneer in getting
the highest quality standard of World ISO 9000 in Pakistan. The management and
employees have taken it a real challenge to integrate the Quality Management into their
business operations as an essential part of their work.
MANAGEMENT’S RESPONSIBILITY
OUR QUALITY POLICY:

“OUR MOST ENDURING COMPETITIVE EDGE IS QUALITY OF OUR
TRACTORS”
RESPONSIBILITY AND AUTHORITY:

The quality control program with in Al-Ghazi Tractors Ltd. has been established
at the direction of the Senior Management due to demand of quality as a competitive
edge in Auto Industry. The responsibility for development and integration of the quality
plan resides within the quality control operation. The responsibility for execution of the
quality program is delegated to the Production Manager. The Production Manager has
delegated responsibilities to all those who are concerned with quality. Responsibilities
and authorities in the company have been documented.
Quality control has the organizational freedom and authority to initiate action to
prevent the occurrence of non-conformities, record problems, initiate corrective actions,
verify solutions, and if necessary, stop those processes until such time as they fully
comply.
The Quality Control Manager has the responsibility for overseeing, incoming
material inspection, work in-process test, final inspection, and statistical techniques in
conjunction with the production departments.
Independent personnel are trained and appointed by the quality control
department, perform the quality audits and can audit any area from which they are trained
and appointed.
RESOURCES
The management of Al-Ghazi has designated appropriately trained individuals, to
meet all the requirements of the quality program. Quality control department has
approved personnel performing the quality inspections. The employees who are
concerned with quality in the company have been trained to understand and maintained
the quality policy of the company.
 There are documented job descriptions that define authority and responsibility for
quality operations.
 There are trained employees have been assigned to internal audit activities and audit
reports are transmitted to senior management.
 The trained engineers and employees of Materials and Metallurgical laboratory to
verify and inspect the conformance of incoming raw materials and products against
the design specifications that is managed and overseen by quality control department.
 The trained engineers and employees of Quality Control department and Production
Department perform In-process inspection, final inspection, and functional testing
that ensure conformance to product design specification.
MANAGEMENT REPRESENTATIVES
The Production and Quality Control Mangers are responsible for insuring that the
ISO 9002 requirements are met as well as all other customer requested requirement. It is
also the function of the quality control manager to provide regular feedback on the status
of the quality system and its progress. This is accomplished via reports on those
measures reflective of the quality system.
The Quality Control Manger also acts as the primary communicator with
reference to any outside bodies affecting the quality system.
MANAGEMENT REVIEW
From time to time the Quality Control Manager reviews the quality system’s
methodology and its application to the ISO 9002 Standard. Revisions to the manual and
quality system is made as required to guarantee the quality of the product, services, and
the needs of the company.
The Upper Management and staff conduct regular reviews of quality issues. These
documented reviews are used for further corrective plans.
QUALITY SYSTEM
In Al-Ghazi Tractors Ltd. the quality control program is a formally documented
system of planned activities established to provide evidence of compliance to the
requirements of applicable regulation, codes, standards, contractual specifications,
drawing, ISO 9002, as well as the company quality policy.
All of these activities are governed by procedures and written instructions
supported with records of training and satisfaction compliance of products and processes.
QUALITY PLANNING
The quality manuals and all the supporting departmental procedures are referred
to as the quality plans. The preparations of these plans are responsibility of the
Production Department and Personnel Department and they maintain them in conjunction
with senior management review.
CUSTOMERS ORDERS
The firm maintain a documented system with appropriately maintained records to
ensure the appropriate review of the customer’s orders. This ensures that the order is
well understood by both parties and we have the capability to meet the requirement.
These procedures require agreement prior to the acceptance to the order. It is the
responsibility of the sales organization to ensure a comprehensive documented

integration of this requirement exists.
AMENDMENTS TO CONTRACTS
The organization maintains procedures for the processes used to amend a
customer requirement to ensure compliance with the request.
RECORDS
The customer orders (contracts) shall be maintained by the sales department for
the duration of the warranty period plus one-year unless otherwise requested by the
customer. Documented procedures exists to support the retention of these records.
DOCUMENT AND DATA CONTROL

At Al-Ghazi Tractors Ltd. the management has established document and data
control procedures for the collection, maintenance, and distribution, one of key
requirements of ISO 9002 implementation. It is the responsibility of each department to
follow the established procedures for the collection, maintenance, and distribution and
control of all the documents, instruction, and data in their operations to meet the intent of
the ISO 9000 standard.
In Al-Ghazi following documents are maintained and controlled.
 Policy Documents
 Quality Manuals
 Operations Procedures
 Quality Procedures
 Specifications of materials
 Inspections & Test Criteria
 Process Technology
 Quality Plans
 Work Instructions
 Storage
 Handling & Maintenance Instructions
 Quality Audit
 Training Document
DOCUMENTATION APPROVAL AND ISSUE

All departments in Al-Ghazi have established the procedures and maintenance of
the documents. Documents and Instructions are established to handle and avoid a lack
that could adversely affect the quality of the process, product, or services provided by the
operation.
A master revision listing of the documents of the vendors is maintained and
issued by the quality control department at the end of each month to Vendor
Development Department for further purchasing decisions. It is the responsibility of the
all departments to ensure that only current documents are available for usage. Obsolete
documents must be promptly removed by the department and adequately identified as
available for reference only.
DOCUMENT CHANGE
Prior to the issuance of any new procedure/instructions/documents approval is

required from the Upper Management. To upgrade a document related to quality, the
quality control department required to provide a new revision about whether it is possible
and feasible or not. When making changes, it is required that the changes from the
previous instructions should be highlighted to ensure the proper changes are readily
implemented. All of the department are informed and provided with attested copies by
the concerned manager and upper management, with modified or upgraded documents
for information and implementation.
PURCHASING
Providing the best quality products require best raw material that meet certain required specifications. It is
the most important function in ISO 9000 standards implementation requirement. The purchasing
department plays an important role in that it makes documented policies about the purchasing. In Al-Ghazi
Tractor Ltd. the purchasing department situated in head office has established and maintained a
documented process with appropriate records that ensure the purchased products meet defined
specifications.
EVALUATION OF THE SUPPLIERS
The purchasing department has established documented procedures with the co-
operation of quality department by which supplier are selected. Their selection
incorporates at least three considerations in the following priority:
Their ability to deliver material that meets the product specifications.
 The evaluation of the quality of the products by quality department to

ensure that consistent and desired quality and delivery requirements are met.
 A cost competitive delivery of the material.
The purchasing department in conjunction with the quality control department
determines the methodology employed to ensure the receipts of the appropriately
conforming materials. The purchasing department in conjunction with the inspection of
incoming materials maintains records of the supplier’s performance. The purchasing
department only purchases materials from approved suppliers/vendors. It is the
responsibility of the purchasing department to establish and maintain procedures for the
generation of an acceptable supplier listing. The listings of approved suppliers must have
the approval of the quality control department.
PURCHASING DATA
The purchase orders provided to the suppliers contain appropriate information
about standards, specifications, and drawing testing criteria of the company packaging,
delivery schedule, mode of transportation.
VERIFICATION OF PURCHASED PRODUCT

The purchasing department has defined the documented procedure how they will
ensure that all materials introduced into the operations have undergone a review for
conformity. The purchasing department looks and checks the materials by commodity
grouping according to defined inspection routines for each commodity.
PRODUCT IDENTIFICATION AND TRACTABILITY

There are procedures for proper identification and documentation of materials it is
understandable and can be recognize by all the individuals in the factory. The items and
products are assigned numbers for identification that are stored in cases, by the material
handling and storage department. These procedures incorporate intractability of the
items, components and semi or finished goods along with the appropriate recording of
status of batch.
PROCESS CONTROL
This includes operating instructions for all department and employees that affect
quality. Specific work instructions and procedures have been defined and documented
where there is a lack that adversely affect quality, it includes.
 Documented work instructions / procedures that define the manner of
production, installation and servicing.
 Use of suitable production and installation equipment.
 Suitable working environment.
 Compliance with referenced standards / codes and quality plans.
 Monitoring and control of suitable process and product characteristics
during production.
 Approval of process and equipment as appropriate.
 There is suitable maintenance of equipment to assure continued capability
& capability.
Specific training and instructions are given to employees to understand and retain specific
records for these special processes.
For employees it is recommended that they follow the assembly line instructions flow-
charting method.
INSPECTION & TESTING

In Al-Ghazi Tractors Ltd. there is a well-established computerized Material and
metallurgical laboratory in the plant where operations are performed to check the strength
and the appropriate specifications of items.
All procedures and activities affecting testing are overseen by quality control and
their signature on the proposed procedure is required to the Hovel Card which is attached
with gear box and it remain with it until the compelition of the product.
INSPECTION AND TESTING OF RECEIVING ITEMS.

At Al-Ghazi it is responsibility of inspection department to ensure that no material
can be used until they can verify compliance with the specified material requirements.
The inspection is carried out in Material and metallurgical laboratory by taking a sample
from the lot and according to the documented inspection procedure. Quality control
engineers approve the testing procedures.
WORK IN- PROCESS INSPECTION AND TESTING

The production department is responsible for work in process inspection and
testing. At Al-Ghazi Tractors Ltd. the production department has generated a
comprehensive inspection and test plan. This testing plan is based on documented testing
instructions. No materials may bypass these inspection plans or continued to be processed
without successful completion of the test and inspection requirements. For this purpose
many quality inspectors have been assigned on the assembly line. On assembly line the
output of one is the input of other one, due to this there are less chances of bypassing a
defective item.
FINAL INSPECTION AND TESTING

The production department has generated a comprehensive inspection and test
plan that ensures that all defined testing requirements are met. In the last a complete
testing plan is formulated to ensure the quality and conformance of the final product. No
product may by pass until the final inspection.
INSPECTION AND TESTING RECORDS

A Hovel Card moves on assembly line from beginning to the end. Each
observation and testing made by any person is checked and he signed on the card. If any
person commits any mistake he is the responsible for it
CONTROL OF INSPECTING, MEASURING AND TEST OF EQUIPMENT

Being a engineering work in the factory, all of work is performed through
machines and equipment’s. Quality and Inspection departments in Al-Ghazi Tractors
Ltd. have established and maintained documented procedures to select, control, calibrate
and maintain inspection, measuring, and test equipment used to demonstrate conformance
of the product or items. These devices include measurement tools, gauges, or any other
“device” used to ensure conference.
The devices, machine is assigned to the appropriate individuals who knows how
to make it run. or this the employees are properly given training so they are able to handle
the instruments for security purposes. History of the equipment is maintained and
whenever it become out of order, it is repaired properly to avoid further errors.
CONTROL PROCEDURE
All the devices are used on a schedule based on usage or duration of time. The
schedule has been scheduled in such a way that the all the operations in factory are not
affected. Documented inspection procedures exist for the calibration of equipment. That
includes maintenance, duration between recalls, as well as the actual testing for which the
device is being used. No unauthorized person can make changes in the devices.
INSPECTION AND TEST STATUS:

Production department has established documented process with procedure for
ensuring that all materials / products carry a test status. The incoming materials or items
are checked by Inspection department, after successful checking they paste a material
transfer tag designating transfer for acceptable materials, if the material is not up to the
mark than a further tag is pasted on the lot for further decisions.
The work in-process inspection stations demonstrate compliance on HOVEL
CARD on which each person who performs a particular activity sign about the
conformance and specification of or item used. On assembly line there are many
inspection stations where quality control inspectors are assigned that checks the progress
and quality of process as well as material used.
Final inspection is done by a group of quality inspectors and it validates the

existence of all prior inspection against the check sheet as well as the test data and sign of
on acceptance. This check sheet acts as the quality records.
NONCONFORMING PRODUCT REVIEW AND DISPOSITION

When a material is found to be defective/nonconforming then according to
established procedures are placed for appropriate disposition. Quality department initiates
the authority for disposition of products. By taking a sample from the lot the inspection
department checks the specification of the product. If it is up to mark than it is accepted.
If not than further actions are taken thorough investigation of the defects, the result of
which can fall into the following categories.
 Reject the lot.
 Check whole the lot on the expenses of suppliers.
 If less than 20 % lot is defective accept non-defective parts.
 If more than 20 % than reject the whole.
All decisions by the Inspection department results from an investigation of the material
specifications. Any compromise to the material will require notification of the affected
parities.
CORRECTIVE AND PREVENTIVE ACTION:

All departments in Al-Ghazi Tractors Ltd. have established and maintained
procedures for implementation of corrective and preventive actions. It is the slogan of the
company that:
“We always take corrective actions not just corrections”
These non-conformities are collected, analyzed, and than with root-cause

philosophy they are corrected. Safety issues have received top priority and immediate
allocation of resources. In all cases where a corrective or preventative action is employed,
a record of the changes made shall be recorded and the record is maintained for further
actions.
1-Corrective Action
A corrective action results from a customer, employee of factory or a report of a
product nonconformance. The sales department maintains a documented process by
which the complaints are complied, analyzed, and corrective action are taken. A report is
generated to Senior Management about complaints made by the customers for the
solution. Corrective actions are than taken by the management after reviewing the
situations.
2-Preventive Actions:
A preventive action is taken on the information indicating a nonconformity within
the operating process that affects quality. These information are gathered by way of
internal audits, quality records, yields shortfalls, service reports, customer complaints,
employee’s indication or any other areas indicating process failures. The quality
department than takes action for the prevention of such failure/shortfalls in the future.
The quality control department maintains documented processes by which the shortfalls
are complied, analyzed and preventive action initiated and tracked. This prevention
action is addressed not only the root causes but also the application of controls to ensure
its effectiveness. Senior management reviews a report of the corrective and preventive
actions.
HANDLING, STORAGE, PACKAGING, PRESERVATION AND DELIVERY

There is separate department for handling and storage of all the input materials
has established and maintained documented procedures for the handling, storage and
preservation all input products.
1-Handling
There are appropriate trained employees to ensure the proper and safe handling
of materials. All forklift drivers are trained to operate the lift.
2-Storage
When an item or product come in the premises the employees put them to large
case which contains their identification number and name of that commodity. There are
appropriate trained employees in the handling and storage department that ensure the
proper and safe handling of materials. All materials are stored to prevent deterioration as
well as support easy retrieval for usage. It is the company’s policy to follow a “first in
first out” inventory policy and all material storage procedure is accommodate to this
policy.
Those materials that are sensitive to environment like it is very important to make
safe the engine from dust the engine is kept remained within the case in store and it is not
place openly. All the material is properly handle, continually monitor, and removed if
inappropriate. All other materials are monitored at regular intervals to detect
deterioration.
Receipts for storage and dispatch of materials from storage and handling
department are issued and received by authorize persons.
3-Packaging
The trained employees of materials handling and storage department package
supporting materials which is given with the tractors. They also maintain packaging of
the materials, which are to be use in the internal operations.
4- Preservation
A big secure store area has been established in the plant in material and handling
department to segregate the input and semi-finished products to ensure its preservation.
5-Delivery
There is network of dealers of Fiat and New-Holland tractors from Karachi to
Gilgit in Pakistan. About 98 % of tractors are sold through Agriculture development
Bank of Pakistan and only 2 % sales are on net cash. The tractors are delivered to
customers through the dealers or they may buy from company premises.
CONTROL OF QUALITY RECORDS

All departments that are related with quality have established and maintained
documented procedures on how they handle quality records. The procedures have been
establish that through light and guide about:
 Methods for collection of quality records

 Methods for accessing of quality records
 Filing the quality records
 Storage of quality records
 Maintenance of quality records
 Disposition of quality records.
The purpose of the records is to demonstrate confirmance to the specified requirements of
the quality system.
TRAINING
There is a well-established training institutes in the company. Where all
employees who affect quality are given training from time to time. Training is given to
the managers and workers to increase the performance at every level. This improvement
in performance is directed towards satisfying such cross-functional goals as quality,
schedule, and others activities. Before final audit of ISO 9002 implementation in the
company all the employees who are concerned with quality were given training so that all
the employees could understand all the documented procedures, authorities and
responsibilities of each other in the company. Some managers were sent to different
seminars and workshops to learn about ISO 9002.
SERVICING
Al-Ghazi Tractors Ltd. has offered after sales service to its customers on both
Fiat models. The sales department has established and maintained documented
procedures and records as related to the services provided. When a customer has some
problem in machinery he contacts the nearby dealer of the company which prepare a
claim and send it to head-office for further actions.
STATISTICAL TECHNIQUES
Each department in Al-Ghazi Tractors Ltd. has established and maintained
documented procedures to implement and control the applications of statistical
techniques in their operations. These procedures have been established in conjunction
with the quality control department.
To confirm the processes and product performances and in an attempt to increase it,
following statistical techniques are being used
 Sampling
 Formulas for evaluating sampling

Al-Gazi Tractors Limited

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Al-Gazi Tractors Limited

Uploaded by

Copyright:

Available Formats

Al-Gazi Tractors Limited

INTRODUCTION OF THE ORGANIZATION

Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.They

TECHNICAL COLLABORATION WITH ITALY

MAIN OBJECTIVES OF AL-GHAZI TRACTORS LIMITED:

Karachi office is registered head office of the company.

LOCATION OF AL-GHAZI TRACTORS LTD.

TAX FREE ZONE

FAVORABLE LABOR CLIMATE

TAXES AND REAL ESTATE COSTS

FACILITIES PROVIDED TO ATTRACT THE EMPLOYEES

2-MOSQUE HOSPITAL AND SCHOOL FACILITIES

 Exponential Smoothing Method With trend & Seasonal Effect

FORECAST AT AL-GHAZI TRACTOR LTD.

FACTORS AFFECTING DEMAND

 Lack of professionalism in dealerships.

PRODUCTION AND CAPACITY

MODEL 480-S 640

“Inventory is a stock of anything held to meet the future demand”

Al-Ghazi Tractor is manufacturing organization, the management gives more

CENTRAL ROLE OF THE MATERIALS.

FUNCTIONS OF THE MATERIAL MANAGEMENT

OBJECTIVES OF INVENTORY MANAGEMENT

TYPES OF INVENTORY MANAGEMENT

2). LOCAL MATERIAL

METHODS FOR INVENTORY MANAGEMENT AT AGTL

2). Gear box of tractors

There is a strong integration of all the departments to make assurance of quality at

QUALITY CONTROL IN PURCHASING

AL-GHAZI TRACTORS LIMITED D.G.KHAN

2-10 % % --- % % --- 03 00 01 02 00 01

AQL FOR MACHINE PART = 1.5

LIST OF COMPONENTS ACCEPTED ON FITMENT/FUNCTIONAL TEST

QUALITY CONTROL DURINDG WORK IN PROCESS

TOTAL QUALITY MANAGEMENT

“Total Quality Management is an approach to doing business that attempts to maximize

CONTINOUS IMPROVENENT OF SYSTEM

iv) SPILTER TIGHTENING AND LOCK PLATE BENING.

3-COUPLING OF TRANSMISSION WITH GEAR-BOX

viii) DRAG LINK TO STEERING ARM AND AXLE TIGHTENING

 High pressure pipe leak checking

 All body paint checking

ISO 9000 IN AGTL

REASONS FOR OBTAINING ISO 9000

ISO 9002 IMPLEMENTATION IN AGTL

OUR QUALITY POLICY:

RESPONSIBILITY AND AUTHORITY:

responsibility of the sales organization to ensure a comprehensive documented

DOCUMENT AND DATA CONTROL

DOCUMENTATION APPROVAL AND ISSUE

Prior to the issuance of any new procedure/instructions/documents approval is

 The evaluation of the quality of the products by quality department to

VERIFICATION OF PURCHASED PRODUCT

PRODUCT IDENTIFICATION AND TRACTABILITY

INSPECTION & TESTING

INSPECTION AND TESTING OF RECEIVING ITEMS.

WORK IN- PROCESS INSPECTION AND TESTING

FINAL INSPECTION AND TESTING

INSPECTION AND TESTING RECORDS

CONTROL OF INSPECTING, MEASURING AND TEST OF EQUIPMENT

INSPECTION AND TEST STATUS:

Final inspection is done by a group of quality inspectors and it validates the

NONCONFORMING PRODUCT REVIEW AND DISPOSITION

CORRECTIVE AND PREVENTIVE ACTION: