Presented to:
Miss Sarwat Jabeen

Presented by:
Ammara Abbas Amna Javaid 684 Saman Arif (G.L) Maryam Shahzadi 697 Qurtaba Sadia 699 Topic: DG Khan Cement Industry Subject: Operation & production management B.com (Hons) 8th semester Afternoon “B”

678 694

Hailey College of Commerce University of the Punjab


Success in life depends upon many factors and one is “success” itself. As, first success paves way for many others. During the completion of this assignment, way to success seemed familiar but not easy, now we have to win success. So we would like to talk the occasion to express our heartiest thanks to our MISS SARWAT JABEEN who is very helpful, co-operative. She is encouraging and supportive and offered constructive suggestions to complete our assignment. We could hardly find words that are enough to thank her. Our Special thanks to also due to Mr. Naveed Rao at D.G khan cement industry from Head office, for all the help and encouragement he has given that has been very invaluable for the project. We also owe a deep of gratitude to our well-wishers who prayed for us to accomplish our work.


Table of content
 Executive Summary--------------------------------------------------- 4  Overview of DG Khan------------------------------------------------ 6-12  Location ---------------------------------------------------------------13-29 • DG Khan location-----------------------------------------------30-35  Plant Layout ----------------------------------------------------------36-48 • DG Khan plant layout------------------------------------------49-70  Purchase Policy-------------------------------------------------------71-82 • DG Khan purchase policy--------------------------------------83  Sources of labor supply ----------------------------------------------- 84-102 • DG Khan sources of labor supply -----------------------------103  Induction ---------------------------------------------------------------- 104-112 • DG Khan induction ---------------------------------------------- 113  Employee’s training --------------------------------------------------• DG Khan employees training---------------------------------114-125 126-131

 Role of foreman --------------------------------------------------------- 132-148 • DG Khan role of foreman--------------------------------------- 149-153


 Product design----------------------------------------------------------- 154-170 • DG Khan’s product design---------------------------------------170179  Simplification ------------------------------------------------------------ 180-205 • DG Khan’s simplification------------------------------------- Standardization • DG Khan’s standardization------------------------------------- Quality control & inspection------------------------------------------ 206-214 • DG Khan’s quality control & inspection-----------------------215  Planning & controlling production----------------------------------- 216-219 • DG Khan’s planning & controlling production----------------220221  Conclusion----------------------------------------------------------------- 222

Executive Summary

D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest cement-manufacturing unit in Pakistan with a production capacity of 7000 tons clinker per day. It has a countrywide distribution network and its products are preferred on projects of national repute both locally and internationally due to the unparallel and consistent quality. It is list on all the Stock Exchanges of Pakistan. Nishat Group acquired DGKCC in 1992 under the privatization initiative of the government. Starting from the privatization, the focus of the management has been on increasing capacity as well as utilization level of the plant. Its head office is located in Lahore. They are having plants in D.G khan & Khair-Pur plant is in process for construction. They are following in product layout. They are following flexible purchase policy. They hire their senior management employees through


advertisement. They provide on job training as well as special training to their employees. Every department having their own foreman with different responsibilities which varies from department to department. They product is designed according to the design of the customer. They are following simplification in the design, size, price to achieve large sales, and satisfaction of the customer. It follows the ISO standards 9001:2000 and 9001:2008. For the purpose of providing best quality to their customers, they are having separate quality control departments in each plant due to the increasing demand of cement they are planning for the new plant in Khairpur which is in process. Right now their production is 7000 ton per day which is not sufficient to full fill the demand.


D.G. Khan Cement Company Ltd.

NISHAT GROUP Nishat Group is one of the leading and most diversified business groups in South East Asia. With assets over PRs.300 billion, it ranks amongst the top five business houses of Pakistan. The group has strong presence in three most important business sectors of the region namely Textiles, Cement and Financial Services. In addition, the Group has also interest in Insurance, Power Generation, Paper products and Aviation. It also has the distinction of being one of the largest players in each sector. The Group is considered at par with multinationals operating locally in terms of its quality of products & services and management skills. Mian Mohammad Mansha:


The chairman of Nishat Group continues the spirit of entrepreneurship and has led the Group successfully to make it the premier business group of the region. The group has become a multidimensional corporation and has played an important role in the industrial development of the country. In recognition of his unparallel contribution, the Government of Pakistan has also conferred him with “Sitara-e-Imtiaz”, one of the most prestigious civil awards of the country. D.G. Khan Cement Company D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest cement-manufacturing unit in Pakistan with a production capacity of 7000 tons clinker per day. It has a countrywide distribution network and its products are preferred on projects of national repute both locally and internationally due to the unparallel and consistent quality. It is list on all the Stock Exchanges of Pakistan. DGKCC was established under the management control of State Cement Corporation of Pakistan Limited (SCCP) in 1978. DGKCC started its commercial production in April 1986 with 2000 tons per day (TPD) clinker based on dry process technology. Plant & Machinery was supplied by UBE Industries of Japan.

Acquisition of DGKCC by Nishat Group Nishat Group acquired DGKCC in 1992 under the privatization initiative of the government. Starting from the privatization, the focus of the management has been on increasing capacity as well as utilization level of the plant. The company undertook the optimization by raising the capacity immediately after the privatization by 200tpd to 2200tpd in 1993.

Capacity Addition


To meet the increasing demand and to capitalize on its geographic location, the management further expanded the capacity by adding another production line with a capacity of 3,300 tons per day in year 1998. Design of the new plant is based on latest dry process technology, energy efficient and environmental protection from particulate pollution according to the international standards. The plant and machinery was supplied by M/s F.L. Smidth of Denmark. As a result, DGKCC emerged as the largest cement production plant in Pakistan with annual production capacity of 1,650,000 M tons of clinker (1,732,000 M.Tons Cement) constituting about 10% share of the total cement production capacity of the country. The optimization plan is still underway to increase the total capacity of the two units to 6700 TPD by mid of 2005 from 5500 TPD at present.

Expansion -Khairpur Project Furthermore, the Group is also setting up a new cement production line of 6,700 TPD clinker near Kalar Kahar, Distt. Chakwal, the single largest production line in the country. First of its kind in cement industry of Pakistan, the new plant will have two strings of pre-heater towers, the advantage of twin strings lies in the operational flexibility whereby production may be adjusted according to market conditions. The project will be equipped with two vertical cement grinding mills. The cement grinding mills are first vertical Mills in Pakistan. The new plant would not only increase the capacity but would also provide proximity to the untapped market of Northern Punjab and NWFP besides making it more convenient to export to Afghanistan from northern borders. Power Generation For continuous and smooth operations of the plant uninterrupted power supply is very crucial. The company has its own power generation plant along with WAPDA supply. The installed generation capacity is 23.84 MW.


Environmental Management DG Khan Cement Co. Ltd., production processes are environment friendly and comply with the World Bank’s environmental standards. It has been certified for “Environment Management System” ISO 14001 by Quality Assurance Services, Australia. The company was also certified for ISO-9002 (Quality Management System) in 1998. By achieving this landmark, DG Khan Cement became the first and only cement factory in Pakistan certified for both ISO 9002 & ISO 14001...

• • • • • • •

Mrs. Naz Mansha Mian Raza Mansha Saqib Elahi Khalid Qadeer Qureshi Mohammad Azam Zaka ud din Inayat Ullah Niazi

Chairperson/Director Chief Executive/Director Director Director Director Director Director & Chief Financial Officer

Company Profile: Ticker: Exchanges:

D.G. Khan Cement Company Limited DGKC KAR


2008 Sales: Major Industry: Sub Industry: Country: Employees:

12,715,000,000 Construction Cement Producers PAKISTAN 665




DG Khan Cement and Lucky Cement may acquire Dewan Cement Company Tuesday, 07 April 2009 21:45 Pakistan’s two major cement manufacturers have shown their interest to acquire the controlling shares of Dewan Cement Limited which is presently running in loss. Sources said the consortium of Pakistan banks, which was financing the Dewan Cement, has now approached the Lucky Cement Company and the DG Khan Cement Company with a view to convince them to strike a deal either to acquire the controlling shares of Dewan Cement or at least make a partnership with the said company. Sources said the consortium is doing so to avoid the losses, which may increase in near future. The company registered a net loss of Rs499 million in fiscal 2008 as compared to a net profit of Rs207 million in fiscal 2007, they added. In June 2008 shareholders’ approval was sought for the possible sale of strategic assets. The management anticipated continued difficult economic conditions giving rise to liquidity shortage in the financial sector, they added. The shareholders of the company in an extraordinary general meeting of the company had passed a special resolution and authorized the Board of Directors of the Company to sell or alienate the company’s North Cement manufacturing unit. When the Dewan Cement Company was unable to obtain financial support from 11

the financial institutions for commissioning of Line II in South region, it had to divert existing working capital towards completing the project. This further aggravated the cash flow situation forcing the management to call an Extra Ordinary General Meeting to seek permission for the Sale of North Plant. In order to improve liquidity and profitability of the company, the management tried to take certain steps such as increasing sales through export of cement to neighboring countries and curtailing financial cost by means of rescheduling of loans with financial institutions. During the year 2008 the company did not get any support from the financial institutions for commissioning of the company’s Line II in South region. The company was forced to divert its existing working capital towards completion of the Line II project. This further aggravated the cash flow situation forcing the management to seek permission from the stakeholders for the sale of North Plant. It is worth mentioning that Dewan Cement Limited (DCL) was incorporated in Pakistan as a public limited company in March, 1980. Its shares are quoted on the Karachi and Lahore Stock Exchanges since June, 1989. Dewan Group has made its move to the new business arena by acquiring the management of both Dewan Cement Limited and Dewan Hattar Cement limited. Both the companies were operating under the same management.



It is a process whereby the best suitable site is selected for the establishment of business, factory, generally for manufacturing concerns.

The need for location decisions
Existing organizations may need to make location decisions for a variety of reasons. Firms such as banks, fast-food chains, supermarkets, and retails stores view locations as part of marketing strategy, and they look for location that will help them to expand their markets. Basically, the location decisions in those cases reflect the addition of new locations to an existing system. A similar situation occurs when an organization experiences growth in demand for its product or services that cannot be satisfied by expansion at an existing location. The addition of a new location to compliment an existing system is often a realistic alternative. Some firms face location decisions through depletion of basic inputs. For example, fishing and logging operations are often forced to relocate due to the temporary exhaustion of fish or forests at a given location. Mining and petroleum operations face the same sort of situation, although usually with a longer time horizon. For other firms, a shift in markets causes them to consider relocation or the costs of doing business at a particular location reach a point where other locations begin to look more attractive.


The nature of location decisions
Location decisions for many types of businesses are made infrequently, but they tend to have a significant impact on the organization. In this section we look at the importance of location decisions, the usual objectives managers have when making location choices, and some of the options that are available to them.

Strategic importance of location decisions Location decisions are closely tied to an organization’s strategies. For example, a strategy of being a low cost produces might result in locating where labor or material costs are low or locating near markets or raw material to reduce transportation cost. A strategy of increasing profits by increasing market share might result in locating in high-traffic areas, and a strategy that emphasizes convenience for the customer might result in having many location where customers can transact their business or make purchases (e.g., branch banks, ATM’s, service stations, fast-food outlets). Location decisions are also strategically important for other reasons as well. One is that they entail a long term commitment, which makes mistake difficult to overcome. Another is that location decision often has an impact on investment requirements, operating costs and revenues, and operations. A poor choice of location might result in excessive transportation costs, a shortage of qualified labor, loss of competitive advantage, inadequate supplies of raw materials, or some similar condition that is detrimental to operations. For both manufacturing and services, location decisions can have a significant impact on competitive advantage. And another reason for the importance of location decisions is their strategic importance to supply chains. Objectives of location decisions


As a general rule, profit-oriented organizations base their decisions on profit potential, whereas nonprofit organizations strive to achieve a balance between cost and the level of customer service they provide. It would seem to hollow that all organization attempt to identify the “best” location available. However, this is not necessarily the case. In many instances, no single location may be significantly better than the others. There may be numerous acceptable locations from which to choose, as shown by the wide variety of locations where successful organizations can be found. Furthermore, the number of possible location that would have to be examined to find the best location may be too large to make an exhaustive search practical. Consequently, most organizations do not set out with the intention of identifying the one best location; rather, they hope to find a number of acceptable locations from which to choose. Location criteria can depend on where a business is in the supply chain. For instance, at the retail end of chain, site selection tends to focus more on accessibility, consumer demo graphics (population density, age distribution, and average buyer income), traffic patterns, and local customs. Businesses at the beginning of a supply chain, if they are involved in supplying raw materials, are often located near the source of the raw materials. Businesses in the middle of the chain may locate near suppliers of near their markets, depending on a variety of circumstances. For example, businesses involved in storing and disturbing goods often choose a central location to minimize distribution costs. Web-based retail businesses are much less dependent on location decisions; they can exist just about anywhere. Location options Managers existing companies generally consider four options in location planning. One is to expand an existing facility. This option can be attractive if there is adequate room for expansion, especially if the location has desirable


features that are not readily available elsewhere. Expansion costs are often less than those of other alternatives. Another option is to add new locations while retaining existing ones, as is done in many retail operations. In such cases, it is essential to take into account what the impact will be on the total system. Opening a new store in a shopping mall may simply draw customers who already patronize an existing store in the same chain, rather than expand the market. On the other hand, adding location can be defensive strategy designed to maintain a market share or to prevent competitors from entering a market. A third option is to shut down at one location and move to another. An organization must weigh the costs of a move and the resulting benefits against the costs and benefits of remaining in an existing location. A shift in markets, exhaustion of raw materials, and the cost of operations often cause firms to consider this option seriously. Finally, organizations have the option of doing nothing. If a detailed analysis of potential locations falls to uncover benefits that make one of the previous three alternatives attractive a firm may decide to maintain the status quo, at least for the time being.

General procedure for making location decisions
The way an organization approaches location decisions often depends on its size and the nature or scope of its operations. New or small organizations tend to adopt a rather informal approach to location decisions. New firms typically locate in a certain area simply because the owner lives there. Similarly, managers of small firms often want to keep operations in their backyard, so they tend to focus almost exclusively on local alternatives. Large established companies, particularly those that already operate in more than one location, tend to take a more formal approach. Moreover, they usually consider a wider range of geographic locations. The discussion here pertains mainly to a formal approach to location decisions.


The general procedure for making location decisions usually consists of the following steps: • • • • • • • Decide on the criteria to use for evaluating location alternatives, such as increased revenues or community service. Identify important factors, such as location of markets or raw materials. Develop location alternatives. Identify the general region for a location. Identify a small number of community alternatives. Identify site alternatives among the community alternatives. Evaluate the alternatives and make a selection.

Factors that affect location decisions
Many factors influence location decisions. However, is often happens that one or a few factors are so important that they dominate the decision. For example, in manufacturing, the potentially dominating factors usually include availability of an abundant energy and water supply and proximity to raw materials. Thus, nuclear reactors require large amount of water for cooling, heavy industries such as steel aluminum production need large amounts of electricity, and so on. Transportation costs can be a major factor. In service organization, possible dominating factors are market related and include frame patterns, convenience and competitors’ locations, as well as proximity to the market. For example, car rental agencies locate near airports and mid city, where their customers are, Once an organization has determined the most important factors, it will try to narrow the search for suitable alternatives to one geographic region. Then a small number of community site alternatives are identified and subjected to detailed analysis. Human factors can be very important, as the following news clip reveals. These might include the “culture shock” that is often experienced when employees are transferred to an environment that differs significantly from the


current location -- for instance, a move from the current location – for instance, a move from a large city to a rural area, or from a rural area to a large city, or a move to an area that has a dramatically different climate.

Regional factors
The primary regional factors involve raw material, markets, and labor considerations. Location of Raw Materials Firms locate near of t the source of raw materials for three primary reasons: necessity, perishability and transportation costs. Mining operations, farming, foresting, and fishing fall under necessity. Obviously, such operations must locate close to the raw materials. Firms involved in canning or freezing of fresh fruit and vegetables, processing of dairy products, baking, and so on, must consider perishability. When considering location. Transportation costs are important in industries where processing eliminates much of the bulk connected with a raw material, making it much less expensive to transport the product or material after processing. Examples include aluminum reduction, cheese making, and paper production. Where inputs come from different locations, some firms choose to locate near the geographic center of the sources. For instance, steel producers use large quantities of both coal and iron ore, and many are located somewhere between the Appalachian coal fields and iron ore mines. Transportation costs are often the reason that vendors locate near their major customers. Moreover, regional warehouses are used by supermarkets and other retail operations to supply multiple outlets. Often the choice of new locations and additional warehouses reflects the location of existing warehouses or retail outlets.


Location of Markets Profit-oriented firms frequently locate near the markets they intend to serve as part of their competitive strategy, whereas nonprofit organizations choose location relative to the needs of the users of their services. Other factors include distribution costs or the perishability of a finished product. Retail sales and service are usually found near the center of the markets they serve. Examples include fast-food restaurants, service stations, dry cleaners, and supermarkets. Quite often their products and those of their competitors are so similar that they rely on convenience to attract customers. Hence, these businesses seek location with high population densities or high traffic. The completion/ convenience factor is also important in locating banks, hotels and motels, auto repair shops, drugstores, newspaper kiosks, and shopping centers. Similarly, doctors, dentists, lawyers, barbers, and beauticians typically serve clients who reside within a limited area. Competitive pressures for retail operation can be extremely vital factors. In some cases, a market served by a particular location may be too small to justify two or more competitors (e.g., one hamburger franchise per block), so that a search for potential locations tends to concentrate on locations without competitors. Large department stores often locate near each other, and small stores like to locate in shopping centers that have large department; stores as anchors. The large stores attract large numbers of shoppers who become potential customers in the smaller stores or in the other large stores. Some firms must locate close to their markets because of the perishability of their products. Examples include bakeries, flowers shops, and fresh seafood stores. For other types of firms, distribution costs are the main factor in closeness to market. For example, sand and gravel dealers usually serve a limited area


because of the high distribution costs associated with their products. Still other firms require close customer contact, so they too tend to locate within the area they expect to serve. Typical examples are tailor shops, home remodelers, home repair services, cabinetmakers, rug cleaners, and lawn and garden services. Locations of many government services are near the markets they are designed to serve. Hence, post offices are typically scattered throughout large metropolitan area. Police and emergency health care location are frequently selected on the basis of client needs. For instance, police patrols often concentrate on high crime area, and emergency health care facilities are usually found in central location to provide ready access from all directions. Many foreign manufacturing companies have located manufacturing operations in the United States, because it is a major market for their product. Chief among them are automobile manufacturers, most notably Japanese, but other nations are also represented. For example, a geographic information system (GIS) is a computer-based tool for collecting, storing, retrieving and displaying demographic data on maps. The data might involve age, incomes, type of employment, type of housing or other similar data. The maps can be global, national, regional state or province, county city, or town. Analysts have the ability to answer a number of questions that are either impossible to answer, or very time consuming to answer, using more traditional methods. Labor Factors Primary labor considerations are the cost and availability of labor, wage rates in an area, labor productivity and attitudes toward work, and whether unions are a serious potential problem. Labor costs are very important for labor-intensive organizations. The shift of the textile industry from the New England states to southern states was due partly to labor costs.


Skills of potential employees may be a factor, although some companies prefer to train new employees rather than rely solely on previous experience. Increasing specialization in many industries makes this possibility even more likely than in the past. Although most companies concentrate on the supply of blue-collar workers, some firms are more interested in scientific and technical people as potential employees, and they look for areas with high concentrations of those types of workers. Workers attitude towards turnover, absenteeism, and similar factors may differ among potential locations – workers in large urban centers may exhibit different attitudes than workers in small towns or rural areas. different. Some companies offer their current employees jobs if they move to a new location. However, in many instances, employees are reluctant to move, especially when it means leaving families and friends. Furthermore, in families with two wage earners, relocation would require that one wage earner give up a job and then attempt to find another job in the new location. Climate and Taxes Climate and taxes sometimes play a role in location decisions. For example, a string of unusually severe winters in northern states may cause some firms to seriously consider moving to a milder climate, especially if delayed deliveries and work disruptions caused by inability of employees to get to work have been frequent. Similarly, the business and personal income taxes in some states reduce their attractiveness to companies seeking new location. Many companies have been attracted to some Sun Belt states by ample supplies of low cost energy or labor, the climate and tax considerations. Also, tax and monetary incentives are major factor in attracting or keeping professional sports franchises. Furthermore, worker attitudes in different parts of the country or in different countries may be markedly


Community considerations
Many communities activity try to attract new businesses, offering financial and other incentives, because they are viewed as potential sources of future tax revenues and new job opportunities. However, communities do not, as a rule, want firms that will create pollution problems or otherwise lessen the quality of life in the community. Local groups may actively seek to exclude certain companies on such grounds, and a company may have to go to great length to convince local officials that it will be a “responsible citizen”. Furthermore, some organizations discover that even though overall community attitude is favorable, there may still be considerable oppositions to specific sites from nearby residents who object to possible increased levels of noise, traffic, or pollution. Examples of this include community resistance to airport expansion; change is zoning, constructions of nuclear facilities, and high way constructions. From a company standpoint, a number of factors determine the desirability of a community as a place for its workers and manager to live. They include facilities for education, shopping, recreation, transportation, religious worship, and entertainment; the quality of police, fire and medical services; local attitudes toward the company; and the size of the community. Community size can be particularly important if a firm will be a major employer in the community; a future decision to terminate or reduce operations in that location could have a serious impact on the economy of a small community. Other community-related factors are the cost and availability of utilities, environmental regulations, taxes (state and local, direct and indirect), and often a laundry list of enticements offered by state or local governments that can include bond issues, tax abetments, low-cost loans, grants, and worker training. Another trend is just-in-time manufacturing techniques (See Chapter 14), which encourage suppliers to locate near their customers to reduce supplier lead times. 23

For this reason, some US firms are reconsidering decisions to locate offshore. Moreover, in light manufacturing (e.g., electronics), low-cost labor is becoming less important than nearness to markets; users of electronics companies want suppliers that are close to their manufacturing facilities. One offshoot of this is the possibility that the future will see a trend toward smaller factories located close to markets. In some industries, small, automated micro factories with narrow product focuses will be located near major markets to reduce response time. It is likely that advances in information technology will enhance the ability of manufacturing firms to gather, track, and distribute information that links purchasing, marketing and distribution with design, engineering, and manufacturing. This will reduce the need for these functions to be located close together, thereby permitting a strategy of locating production facilities near major markets.

Site-related factors
The primary considerations related to sites are land, transportation, and zoning or other restrictions. Evaluation of potential sites may require consulting with engineers or architects, especially in the case of heavy manufacturing or the erection of large buildings or facilities with special requirements. Soil conditions, load factors, and drainage rates can be critical and often necessitate certain kinds of expertise in evaluation. Because of the long term commitment usually required, land cost may be secondary to other site related factors, such as room of future expansions, current utility and sewer capacity-and any limitations on these that could hinder future growth-and sufficient parking space for employees and customers. In addition, for many firms access roads for trucks or rail spurs are important. Industrial parks may be worthy or alternative for firms involve in light manufacturing or assembly, warehouse operations, and customer service facility typically, the land is already developed-power, water, sewer hookups have been attended to, and zoning restrictions do not require special attention. On the negative side, industrial parks may place restrictions on the kind of activities that


accompany can conduct, which can limit options for future development of a firm’s products and services as well as the processes it may consider. Sometimes stringent regulations governing the size, shape, and architectural features of buildings limit managerial choice in these matters. Also, they may not be an adequate allowance for possible future expansion. For firms with executives who travel frequently, the size and proximity of the airport and train station as well as travel connections can be important, although schedules and connections are subject to change.

Multiple plant manufacturing strategies
When companies have multiple manufacturing facilities, they can organize operations in several ways. One is to assign different product lines to different plants. And other is to assign different marketing areas to different plants. And a third is to assign different processes to different plants. Each strategy carries certain cost and managerial implications, as well as competitive advantages. Product plant strategy With this strategy, entire products or product lines are produced in separate plants, and each plant usually supplies the entire domestic market. This is essentially a decentralized approach, with each plant focusing on a narrow set of requirements that entails specialization of labor, materials, and equipment along product lines. Specialization often results in economies of scale and, compared with multipurpose plants, lower operating costs. Plant locations may be widely scattered or clustered relatively close to one another. Market area plant strategy With this strategy, plants are designed to serve a particular geographic segment of a market. Individual plants produce most if not all of a company’s products and


supply a limited geographical area. Although operating cost tend to be higher than those of product plants, significant savings on shipping cost for comparable products can be made. This arrangement is particularly desirable when shipping cost areas are high due to volume, weight, or other factors. Such arrangements have the added benefits of rapid delivery and response to local needs. This approach requires centralized coordination of decisions to add or delete plants, or to expand or downsize current plants due to changing market conditions.

Process plant strategy With this strategy, different plants concentrate on different aspects of a process. This approach is best suited to products that have numerous components; separating the production of components results in less confusion than if all production was carried out at the same location. When an organization uses process plants, coordination of production throughout the system becomes a major issue and requires a highly informed, centralized administration to achieve effective operations. A key benefit is that individual plants are highly specialized and generate volumes that yield economies of scale.

Global Locations
Globalization has opened new markets, and it has meant increasing dispersion of manufacturing and service operation around the world. In addition, many companies are outsourcing operations to other companies in foreign locations. In the past, companies tended to operate from a "home base" that was located in a single country. Now, companies are finding strategic and tactical reasons to globalize their operation. As they do, some companies are profiting from their efforts, while others are finding the going tough, and all must contended with issues involved in managing global operations.


Facilitating Factors
There are number of factors that have made globalization attractive and feasible for business organizations. Two key factors are trade agreements and technological advances. Trade Agreements Barriers to international trade such as tariffs and quotas have been reduced or eliminated with trade agreements such as the North American Free Trade Agreement (NAFTA), the General Agreement on Tariffs and trade (GATT), and U.S.-China Trade Relation Act. Also, the European Union has dropped many trade barriers, and the World Trade Organization is helping to facilitate free trade. Technology Technological advances in communication and information sharing have been very helpful .These include faxing capability, e-mail, cell phones, teleconferencing, and the internet.

Companies are discovering a wide range of benefits in globalizing their operations. Markets Companies often seek opportunities for expanding markets for their goods and services, as well as better serving existing customers by being more attuned to local needs and having a quicker response time when problems occur. Cost saving Among areas for potential cost saving are transportation costs, labor costs, raw


material cost, and taxes. Legal and Regulatory There may be more favorable liability and labor laws, and less-restrictive environmental and other regulations Financial Companies can avoid the impact of currency changes that can occur when goods are produced in one country and sold in other countries. Also, a variety of incentives may be offered by national, regional, or local governments to attract businesses that will create jobs and boost the local economy.

There are numbers of disadvantages of global operations. These can include the following: Transportation costs High transportation costs can occur due to poor infrastructure or having to ship over great distances, and the resulting costs can offset saving in labor and materials costs. Security costs Increased security risks and thefts can increase costs .Also, security at international borders can slow shipments to other countries. Unskilled labor Low labor skills may negatively impact quality and productivity, and the work ethic may differ from that in the home country. Additional employee training may be required.


Import restrictions Some countries place restriction on the importation of manufactured goods, so having local suppliers avoids those issues. Criticisms Critics may argue that cost savings are being generated through unfair practices such as using sweatshops, and in which employees are paid low wages and made to work in poor conditions; and operating in countries that have less stringent environmental requirements.

Political Political instability and political unrest can create risks for personnel safety and the safety of arrests. Moreover, a government might decide to nationalize facilities, taking them over. Terrorism Terrorism continues to be a threat in many parts of the world, putting personnel and assets at risk and decreasing the willingness of domestic personnel to travel to or work in certain areas. Economic Economics instability might create inflation or deflation, either of which can negatively impact profitability. Legal Laws and regulation may change, reducing or eliminating what may have been keen benefits.








DG Khan Cement Company supplies cement throughout Pakistan especially in the provinces of Punjab, Sindh and Baluchistan. This extensive distribution is achieved through following regional sales offices:
• • • • •

Lahore Regional Sales Office Multan Regional Sales Office Rawalpindi Regional Sales Office DG Khan Regional Sales Office Karachi Regional Sales Office

These regional sales offices operate in assigned areas and have network of dealers in each area to achieve maximum sales in their territories. Moreover, direct sales are also making to institutional Clients for projects.


REGISTERED OFFICE LAHORE Nishat House, 53-A, Lawrence Road, Lahore, Pakistan UAN: +92-42-111 11 33 33 Phone: +92-42-5990035 Fax: +92-42-6367414 Email: info@dgcement.com

REGIONAL SALES OFFICES MULTAN OFFICE Hassan Arcade, Nusrat Road, Multan Cantt, Multan, Pakistan Phone: +92-61-4585177 / 4782199 Fax: +92-61-4540712 Email: rsmmul@mul.paknet.com.pk

DERA GHAZI KHAN OFFICE 9-A, Khayaban-e-Sarwar, Multan Road, Dera Ghazi Khan, Pakistan UAN: +92-64-111 11 33 33 Phone: +92-64-2470449 Fax: +92-64-2464708


Email: rsofficedgk@yahoo.com KARACHI OFFICE D-247, KDA Scheme # 1, Karachi, Pakistan UAN: +92-21-111 11 33 33 Phone: +92-21-4922719 Fax: +92-21-4935362 Email: zdin.khi@dgcement.com

RAWALPINDI OFFICE Office # 14-17, Third Floor, Rizwan Arcade, Adamjee Road, Saddar, Rawalpindi, Pakistan UAN: +92-51-111 11 33 33 Phone: +92-51-5518834 / 5518835 Fax: +92-51-5518836 Email: sbokhari@dgcement.com

DERA GHAZI KHAN Khofli Sattai, Distt. Dera Ghazi Khan, Pakistan UAN: +92-64-111 11 33 33


Phone: +92-64-2474201 / 2474202 Fax: +92-64-2460028 Email: info@dgcement.com

KHAIRPUR DISTT. CHAKWAL 12-KM, Choa Saiden Shah-Kallar Kahar Road , Khairpur, Tehsil Kallar Kahar, Distt. Chakwal, Pakistan UAN: +92-543-111 11 33 33 Phone: +92-543-555130 Fax: +92-543-650231 Email: info@dgcement.com


Layout refers to the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system. Layout decisions are important for three basic reasons: 1. They require substaintial investments of money and effort 2. They involve long term commitments, which makes mistakes difficult to overcome 3. They have a significant ipact on the cost and efficiency of operations. The need for layout planning arises both in the process of designing new facilities and redesigning existing facilities. The most common reasons for redesign of layouts include: • • • • • • inefficient operations (e.g. high cost, bottlenecks) accidents or safety hazards changes in the design of products or services introduction of new products or services changes in the volume of output or mix of outputs changes in methods or equipments 36

• •

changes in environmental or other legal requirements morale problems (e.g lack of face-to-face contact)

the basic objective of layout design is to facilitate a smooth flow of work, material, and information through the system.

Supporting objectives generally involve yhe following: • • • • • • • • • • • • • • • • • to facilitate attainment of product or service quality to use workers and space efficiently to avoid bottlenecks to minimize material handling costs to eliminate unnecessary movements of workers or materials to minimize production time or customer service time to design for safety product and service quality efficient use of workers and space avoid hurdles and accidents minimize material handling cost eliminate the un necessary movement of workers and material Minimize production tier and customer service time. worker's safety safety of energy maximum use of work place Reasonable investment in plant machinery and building.


Types of layout
Product layouts product layouts are used to achieve a smooth and rapid flow of large volumes of goods or customers through a system. This is made possible by highly standardized goods or services that allow highly standardized, repetitive processing. The work is deviced into a series of standardized tasks, permitting specialization of equipment and division of labor. The large volume handaled by these systems usually make it economical to invest substaintial sums of money in equipment and job design. Because only one or a very few similar items are involved, it is feasible to arrange an entire layout to correspond to the technological processing reqirements of the product or service. For insatnce if a portion of a manufacturing operation required the sequence of cutting, sanding, and painting, the appropriate pieces of equipment would be arrange in that same sequence. And because each item follows the same sequence of operations, it is often possible to utilize fixed-path material-handling equipment such as conveyors to transport items between operations. Product layouts achieve a high degree of labor and equipment utilization, which tends to offset their high equipment cost. Because items move quickly from operation to operation, the amount of work-in-process is often minimal.


Consequently, opertions are so closely tied to each other that the entire system is highly vulnerable to being shut down because of mechanical failure or high absenteeism. Maintainenace procedure are geared to this. Pre-ventive maintenace ----periodic inspection and replacement of worn parts of those with high failure rates------reduces the probabilty of breakdowns during the operations. Ofcourse, no amount of preventive activity can completely eliminate failures, so management must take measures to provide quick repair. These include maintaining an inventory of spare parts and having personnel available to quickly restore equipment to normal operation. These procedures are fairly expensive; because of the specialized nature of equipment, ptoblems become more difficult to diagnose and resolve, and spare-part inventories can be extensive. Repetative processing can be machine paced (e.g. automatic car wash, automobile assembly), worker paced(e.g. fast food resturants such as McDonald’s, Burger King), or even customer paced (e.g. cafeteria line). Advantages of product layouts • • • • • A high rate of output Low unit cost due to hig volume. The high cost of specialized equipment is spread over many units. Labor specialization, which reduces training costs and time, and results in wide span of supervision. Low material-handling cost per unit. Material handling is simplified because units folllow the same sequence of operations. Material handling is often automated. • • A high utilization of labor and equipment The establishment of routing and scheduling in the initial desighn of the system. These activites do not require much attention once the system is operating. • Fairly routine accounting, purchasing, and inventory control.


Disadvantages of product layouts • The intensive division of labor usually creates dull, repetitive jobs that provide little opportunity for advancement and may lead to morale problems and to repetative stress injuries. • • • Poorly skilled workers may exhibit little interest in maintaining equipment or in the quality of output. The system is fairly inflexible in response to changes in the volume of output or changes in product or process design. The system is highly susceptible to shutdown caused by equipmrnt breakdowns or exccesive absenteesim because workstations are highly interdependent. • • Preventive maintenance, the capacity for quick repairs, nad spare-parts inventories are necessary expenses. Incentive plans tied to individual output are impractical since they would cause variations among outputs of individual workers, which would adversely affect the smooth flow of work through the system.

Process layout Process layouts are designed to process items or provide services that involves a variety of processing requirements. The variety of jobs that are processed requires frequent adjustments to equipment. This causes a discontinuous work flow, which is reffered to as intermittent processing. The layouts feature departments or other functional grouping in which similar kind of activities are performed. A manufacturing example of a process layout is the machine shop, which has separate departments for milling, grinding, drilling, and so on.items that require those operations are frequently moved in lots or batches to the departments in a sequence that varies from job to job. Consequently, variable40

path material-handling equipment (forklift trucks, jeeps, tote boxes) is needed to handle the variety of routes and items. The use of general-purpose equipment provides the flexibility necessary to handle a wide range of processing requirements. Workers who operate the equipment are usually skilled or semiskilled. Process layout are quite common in service environments. Examples include hospitals, colleges and universities, banks, auto repair shops, airlines, and public libraries. For instance, hospitals have departments or other units that specifically handle surgery, maternity, prdiatries, psychiatric, emergency, and geriatric care. And universities have separate schools or departments that concentrate on one area of study such as business engeneering, science or math. Because equipment in a process layout is arranged by type rather than by proceesing sequence, the system is much less vulnerable to shutdown caused by mehanical failure or absenteesim. In manufacturing systems especially, idle equipment is usually available to replace machines that are temporarily out of service. Moreover, because items are often processed in lots (batches), there is considerably less interdependence between successive operations than with a product layout. Maintainenace cost tend to be lower because the equipment is less specialized than that of products layouts, and the grouping of machinery permits repair personnel to become skilled in handling that type of equipment. Machine similarity reduces the necessray investments in spare parts. On the negative side, routing and scheduling must be done on a continual basis to accommodate the variety of proceesing demands typically imposed on these systems. Material handling is inefficient, and unit handling costs are generaaly much higher than in product layouts. In-process inventories ca be substantial due to batch processing. Futhermore, it is not uncommon for such systems to have equipment utilization rates under 50% because of routing and scheduling complexities related to the variety of processing demands being handled. Advantages of process layouts


1. The systems can handle a variety of processing requirements. 2. The systems are not particularly vulnerable to equipment failures. 3. General-purpose equipment is often less costly than the specialized equipment used in product layouts and is easier and less costly to maintain. 4. It is possible to use individual incentive systems. Disadvantages of process layouts 1. In-process inventory costs can be high if batch processing is used in manufacturing systems. 2. Routing and scheduling pose continual challenges 3. Equipment utilization rates are low. 4. Material hadling is slow and inefficient, and more costly per unit than in product layout. 5. Job complexities often reduce the span of supervision and result in higher supervisor costs than with product layouts. 6. Special attention necessary for each product or customer (e.g. routing, scheduling machine setups) and low volumes result in higher unit costs than with product layout. 7. Accounting, inventory control, and purchasing are much more involved than with product layouts. Fixed-position layouts In fixed-position layouts, he item being worked on remains stationary, and workers, materials, and equipment are moved about as needed. This is in marked contrast to product and process layouts. Almost always, the nature of the product dictates this kind of arrangement. Weight, size, bulk, or some other factor makes it undesirable or extremely difficult to move the product. Fixed-position layouts are used in large construction projects (building, power, plants, and dams), shipbuilding, and production if large aircraft and space mission rockets. In those, instances attention is focused on timing of material and equipment delivers so as 42

not to clog up the work site and to avoid having to relocate materials and equipment around the work site. Lack of storage space can present significant problems, e.g. a construction sites in crowded urban locations. Because of the many diverse activities carried out on large projects and because of the wide range of skills required, special efforts are needed to coordinate the activities, and the span of control can be quite narrow. For these reasons, the administrative burden is often much higher tan it would be under either of the other layout types. Material handling may or may not be a factor; in many case, there is non tangible product involved (e.g. designing a computerized inventory system). When goods and materials are involved, material handling are often resembles process-type, variable path, general-purpose equipment. Projects might require use of earth-moving equipment and trucks to haul materials to, from, and around the work site, for example. Fixed-position layouts are widely used in farming, firefighting, road building, home building, remodeling and repair, and drilling for oil. In each case, compelling reasons bring workers, materials, and equipment to the "product's" location instead of the other way around. Combination layouts The three basic layout types are ideal models, which may be altered to satisfy the needs of a particular situation. Cellular layouts Cellular production is a type of layout in which workstations are grouped into what is referred to as a cell. Groupings are determined by the operations needed to perform work for a set of similar items, or part families that require similar processing. The cells become, in effect, miniature versions of product layouts. The cells may have no conveyorized movements of part between machines, or may have a flow line connected by a conveyor (automatic transfer). In the cellular


layout, machines are arranged to handle all of the operations necessary for a group of similar parts. Thus, all parts follow the same route although minor variations (e.g. skipping an operation) are possible.

Flexible manufacturing systems A flexible manufacturing system is a group of machines that include supervisory computer control, automatic material handling, and robots or other automated processing equipment. Reprogrammable controllers enable these systems to produce a variety of similar products. Systems may range from three or four machines to more than a dozen. They are designed to handle intermittent processing requirements with some of the benefits of automation and some of the flexibility of individual, or stand-alone, machines. Flexible manufacturing systems offer reduced labor costs and more consistent quality compared with more traditional manufacturing methods, lower capital investment and higher flexibility than "hard" automation, and relatively changeover time. Flexible manufacturing systems often appeal to mangers who hope to achieve both the flexibility of job shop processing and the productivity of repetitive processing systems. Disadvantages of flexible manufacturing systems • This system handles a relatively narrow range of part variety, so it must be used for a family of similar parts, which all require similar machining. • It requires longer planning and development times than more conventional processing equipment because of its increased complexity and cost. • It represents a sizable chunk of technology.

Computer-integrated manufacturing (CIM)


It is a system that uses an integrating computer system to link a broad range of manufacturing activities, including engineering design, flexible manufacturing systems, purchasing, order processing, and production planning and control. Not all elements are absolutely necessary. For instance, CIM might be as simple as linking two or more FMSs by host computer. More encompassing systems can link scheduling, purchasing, inventory control, shop control, and distribution. In effect, a CIM system integrates information from other areas of an organization with manufacturing. The overall goal of using CIM is to link various parts of an organization to achieve rapid response to customer orders and/or product changes, to allow rapid production, and to reduce indirect labor costs.

Service layouts
Many services organizations use process layouts because of variability in customer processing requirements. These include hospitals and other medical facilities, banks and other financial institutions, service centers, supermarkets, department stores and other retail establishments, offices, and warehouses. Unlike manufacturing layouts, services layouts must be aesthetically pleasing as well as functional. Some of the layouts are: Warehouse and storage layouts The design of storage facilities presents a different set of factors than the design of factory layouts. Frequency of order is an important consideration; items that are ordered frequently should be placed near the entrance to the facility, and those ordered infrequently should be placed toward the rear of the facility. Any correlations between items are also significant (i.e. item A is usually ordered with item B), suggesting that placing those two items close together would reduce the cost and time of picking those items. Other considerations include the number and widths of aisles, the height of storage racks, rail and/or truck loading and


unloading, and the need to periodically make a physical count of stored items.

Retail layouts The objectives that guide design of manufacturing layouts often pertain to cost minimization and product flow. However, with retail layouts such as department stores, supermarkets, and specialty stores, designers must take into account the presence of customers and the opportunity to influence sales volume and customer’s attitude through carefully designed layouts. Traffic patterns and traffic flow are important factors to consider. Some large retail chains use standard layouts for all or most of their stores. Some advantages are: • Save time and money by using one layout instead of custom designing one for each store. • Avoid confusing consumers who visit more than one store.

Office layouts Office layouts are undergoing transformations as the flow of paper work is replaced with the increasing use of electronic communications. That means there i less need to place office workers in a layout that optimizes the physical transfer of information or paperwork.

Layout study


A plant layout study is an engineering study used to analyze different physical configurations for an industrial plant. Modern industrial manufacturing plants involve a complex mix of functions and operations. Various techniques exist, but general areas of concern include the following  Space (adequate area to house each function)  Affinity (functions located in close proximity to other related functions)  Material handling  Communications (telephone, data, telemetry, and other signal items)  Utilities (electrical, gas, steam, water, sewer, and other utility services)  Buildings (structural and architectural forms; sitework)


DG Khan Production Process
DG Khan Cement Limited is now operating two cement plants one is with dry process other is with wet process. Dry process plant with one kiln with a rated capacity of 6,400 Tons of clinker per day, and wet process plant with three kilns with a rated capacity of 600 Tons of clinker per day each. Therefore, the overall capacity of the cement plant is 7,000 Tons of clinker per day.




Cement Plant
Two manufacturing process Two different processes, "dry" and "wet," are used in the manufacture of DG Khan cement. When rock is the principal raw material, the first step after quarrying in both processes is the primary crushing. Mountains of rock are fed through crushers capable of handling pieces as large as an oil drum. The first crushing reduces the rock to a maximum size of about 6 inches. The rock then goes to secondary crushers or hammer mills for reduction to about 3 inches or smaller

In the wet process, the raw materials, properly proportioned, are then ground with water, thoroughly mixed and fed into the kiln in the form of “slurry" (containing


enough water to make it fluid). In the dry process, raw materials are ground, mixed, and fed to the kiln in a dry state. In other respects, the two processes are essentially alike. The raw material is heated to about 2,700 degrees F in huge cylindrical steel rotary kilns lined with special firebrick. Kilns are frequently as much as 12 feet in diameter large enough to accommodate an automobile and longer in many instances than the height of a 40-story building. Kilns are mounted with the axis inclined slightly from the horizontal. The finely ground raw material or the slurry is fed into the higher end. At the lower end is a roaring blast of flame, produced by precisely controlled burning of powdered coal, oil or gas under forced draft. As the material moves through the kiln, certain elements are driven off in the form of gases. The remaining elements unite to form a new substance with new physical and chemical characteristics. The new substance, called clinker, is formed in pieces about the size of marbles. Clinker is discharged red-hot from the lower end of the kiln and generally is brought down to handling temperature in various types of coolers. The heated air from the coolers is returned to the kilns, a process that saves fuel and increases burning efficiency. Raw Material Preparation The raw materials used in the manufacture of cement are limestone, shale, sand and iron ore, typical chemical compositions of which are given in the table below. Limestone makes up approximately 80% of the raw material requirements, composes of mainly calcium carbonate with small intrusions of magnesium carbonate. Quarrying operations are geared to minimizing the intrusions. The limestone is crushed to less than 25mm in size. MgO in the cement, if present in sufficient quantities will cause expansion upon hydration thus resulting in unsoundness in the concrete.


Due to the variable nature of these components, they are pre-blended prior to their use. It is crushed and stored in a pre-blending hall, utilizing the chevron pile stacking method. In this method, stacking takes place at one end of the pile. At the other end of the pile the material is reclaimed and then stored in a feeding hopper which is ready for use.

Raw Material Proportioning & Grinding
The raw materials are extracted from the hoppers via weigh-feeders. The materials are conveyed to the grinding mill and are ground to a suitable fineness, called raw meal at this stage. This is then stored in a blending silo and blended to ensure homogeneity. The proportions of the 4 components are controlled by the continuous sampling and testing of this raw meal. The raw meal chemical composition is determined by the use of an x-ray fluorescence analyzer. This is linked to the computer which will automatically adjust the weigh-feeders, so that the resultant raw meal stored in the blending silo meets the preset parameters. After blending this material is then discharged into the storage silos ready for the next phase of production. The parameters used in the control of the raw meal are lime saturation factor, silica modulus and iron modulus. These are actually


proportions of the various chemical components which are desired in the resultant clinker.

As coal is used as a fuel the coal ash, a combustion product of the coal, has to be treated as an individual raw material component and the appropriate corrections made at the weigh-feeder stage.


Raw Grinding Systems
When dry grinding is applied, the grinding installation serves the double purpose of grinding and drying. The most economical and simple installations are obtained by using the kiln exhaust gas for the drying process, and carrying out the process in one machine. The main factors influencing the selection of the most suitable raw grinding systems are:


1. Moisture content 2. Capacity of plant 3. Abrasiveness of raw materials. 4. Energy consumption 5. Installation costs.

Vertical mills can be used for moisture contents up to 16-18% as long as the raw materials are not very abrasive. In case of moisture contents lower than 3-6% (highest for small-sized plants) roller mills may not bring about any significant saving in energy and installation costs compared with ball mills.


Ball mills are suitable for low and medium moisture contents and should always be used for very abrasive raw materials. The drying capacity can be increased by installation of a flash drier at the mill inlet or by predrying in a crusher.


Coal Grinding
Coal contains varying quantities of volatiles, both combustible and noncombustible. All types of coal also contain hygroscopic (inherent) moisture as well as varying quantities of impurities which are released in the form of ash in the combustion process. The degree of grinding required depends on the type of coal used. Coal with a low volatile content requires a high ignition temperature and must be finely ground. Coal with a high volatile content, however, must not be ground too fine, otherwise the volatiles will be expelled too quickly to be able to mix properly with the combustion air.


The table specifies the main types of coal in geological order and the approximate coal meal finenesses recommended.

Drying - Air Circulation There are three factors which are decisive in determining the amount of air to be drawn through a coal mill: 1) The amount of air at a given temperature must be sufficient to ensure effective drying of the moist coal. 2) 2) The amount of air must be adequate in relation to the evaporated moisture, so that the dew point of the air leaving the mill is maintained at a suitably low level. In practice, the dew point must be 15-20°C lower 59

than the mill exit air temperature to prevent condensation in the ducts and the deducting installation after the mill. 3) In air-swept mills, of both the ball and roller types, the air velocity must be high enough to extract the ground material from the mill.

4) When specifying the moisture of coal, a distinction is made between surface moisture, which evaporates at ambient temperature, and hygroscopic moisture which is more closely bound to the coal. The inherent moisture content depends on the geological age of the coal, the moisture ranging from 1-2% in anthracite to 10-20% in lignite. The relationship between moisture content and dew point as well as the amount and temperature of the drying air is shown in the above graphs. As will appear, if the dew point is 15°C below the mill outlet temperature of 70°C, the dew point thus being 55°C, and the moisture content 10%, the mill inlet temperature should not exceed approx. 350°C. The figure also shows that if the available drying air has a temperature in the region of 300°C, and the moisture content in the raw coal is below 10%, the drying air requirements are less than 1.2 kg air per kg coal. The amount of air to be extracted from the grinding plant, including false air and water vapor will in this case be less than 1.5 kg air value per of 6500 kg coal, kcal/kg corresponding (27,200 kJ/kg). to approx 17% of the combustion air, based on coal with a calorific

For a conventional suspension preheater kiln this 17% normally constitutes a suitable amount of primary air for kiln combustion purposes. As to the amount of air necessary to extract the coal meal from the mill, operational data has been 60

collected from a large number of ball mills grinding coal with up to 10% moisture, all with the temperature of the drying air exceeding 300°C. On the basis of this data it can be concluded that the amount of air required to extract the coal meal from the mill is around 1.5 kg air per kg coal. The corresponding figure for roller mills is approx. 2.0 kg air per kg coal.

The coal must be sufficiently dry for grinding, storing, and feeding purposes. Excessive drying should be avoided, due to the accelerating process of oxidation which occurs as the moisture content is reduced, with the consequent risk of spontaneous ignition. In practice, drying off the surface moisture of the coal and a small part of the hygroscopic moisture will ensure a high degree of safety combined with good






In order to maintain a constant moisture content in the coal meal discharged from the mill, coal grinding plants are supplied with fully automatic thermal control equipment controlling the temperature of the air at mill outlet.

Numerous innovative process and design details derived from extensive studies provide this future-oriented clinker cooler with outstanding mechanical and process technological advantages. A unique combination of static, horizontally positioned aeration floor and an above-floor transporting system usually offers an extremely efficient clinker transporting principle and strict separation of transportation and aeration functions. Following are important factors for Cooling in Cement Plants

Ideal transverse distribution of the clinker, with the effect of uniform, efficient cooling of all grain size fractions over the entire width of the cooler Extremely low construction height Very high thermal efficiency

• •



The higher the demands placed on the quality of the ground material and the lower the desired energy requirement of the grinding process, the more important is the efficiency of the separator. High availability, high selectivity, low specific energy consumption, simultaneous product separation, cooling and drying, short amortization period and relatively low capital expenditure - these requirements are all met by the high-efficiency separators.

Separators are installed in grinding plants equipped with tube mills, roller mills and high-pressure grinding rolls. Also for plant conversions and modernization projects with limited space conditions, the separator has proven an ideal solution.

The raw material that is required for the cement production process is quarried in accordance with the characteristic raw material data by blasting, extraction by hydraulic excavators or ripping. The pre-reduction plant breaks the extracted













The raw material to be broken is delivered to the feed hoppers of the crushing plant by heavy trucks or other transport machines. The discharge device underneath the feed hopper then conveys the material at a controlled flow rate to the crusher.

Depending on the material's properties and the method of extraction, very different types of crushing plant are used for breaking the raw material.

Dust Collecting
To dedust the exhaust gas streams from kilns, clinker coolers, bypass systems, raw mills, cement mills and dryers; Polysius installs both electrostatic precipitators and bag filters. They can be combined with an exhaust gas cooling system using water injection or gas-air heat exchanger.


The dedusting systems are designed to suit the particular requirements of the process and the emission limit values.

Among the plant components equipped with high-performance bag filters are silo installations, crushers, loading facilities and pneumatic and mechanical conveyors.

Kiln and Burners
The rotary kiln has a statically determined support configuration on only two roller stations and has a direct drive system. The kiln shell with its splined tyres rotates on self-aligning rollers, which automatically adjust themselves to the momentary running conditions. The kiln is directly driven via the rollers of the inlet-end roller station. This system supersedes the previously conventional girth gear and pinion mechanism. It is rounded off by pneumatic inlet and outlet seals, hydraulic axial thrust system and air-cooled inlet trough.

Thanks to the statically determined support configuration, this kiln design is characterized by high operating reliability, minimal maintenance and inspection requirements and therefore very low operating costs.


Packing Paletizing
There are different versions of the system in accordance to:
• • • •

requested capacity up to 30 bags/hour (depending on product) bag size up to 2 tons product characteristic level of automation required

Preheater Tower

In the case of the cement industry, today's requirement profile for the manufacturing process is directed at high production capacities with low operating and capital expenditure. For this reason, multistage cyclone preheater with integral calciner and tertiary air duct are indispensable components of modern kiln lines.

Most of the modern Preheater/calciner concepts are innovative and nevertheless technically mature for the production of white and grey cement; for new plants as


well as plant conversions, and tailored to the desired production capacity – no matter whether this is less than 1,000 or more than 10,000 tunes per day.

Silo Reclaim: There is a large range of fluidized extraction systems for silos, combining minimal


energy requirements with excellent extraction and cleanout characteristics.


Dome Reclaim: Domes are very suitable for high throughput terminals facilitated with fully automatic operation. The fluidized floor system combines flexibility in design with high reliability. Fluidized floors can be supplied with multiple point vacuum extraction, bottom or side discharge. Moving parts in the cement are eliminated. All dome shapes and configurations are possible.

Flat Storage Flat Storage is an effective, low cost method of storing cement. It has proven to be a storage system with a fast payback and high return on investment. The concept can be used for small and large storage volumes. Conveying systems are available for high or low loading and reclaiming capacities. Various mechanical and pneumatic reclaim systems are possible. For high throughput terminals, fluidized floor sections provide high capacity reclaim without the need for trucks loading silos.


A wide range of conveyors are used for different applications:

Screw conveyors, used for horizontal, inclined, or vertical transport of pulverulent and granulated materials.


Rubber belt conveyors are used for horizontal and inclining transport of loose, bulk materials. The rubber belt conveyors are normally supplied with EP fabric rubber belting to DIN 22102 specifications and are equipped with the special supporting idlers with sealed- for-life ball bearings and grease packed labyrinth seals. The loading and transfer points are designed for trouble-free operation of the conveyors. Dust filters are fitted where required. The supporting structure is manufactured of tubular framework. This construction facilitates the mounting and adjustment of the idlers. The belt conveyors are equipped with effective scrapers for belt and pulleys and with special self-cleaning idlers for the return side of the belt when transporting sticky materials.




The goal of purchasing is to develop and implement purchasing plans for products and services that support operations strategies. Among the duties of purchasing are identifying sources of supply, negotiating contracts, maintaining database of supplies, obtaining goods and services that meet or exceed operations requirements in a timely and cost-efficient manner, and managing suppliers. Thus purchasing selects suppliers, negotiates contracts establishes alliance, and acts as liaison between suppliers and various internal departments. Purchasing is taking an increased importance as organizations place greater emphasis on supply chain management, quality improvement, lean production, and outsourcing. Moreover, business to business buying relationships are changing. Although traditional relationships currently account for the lion's share of buying relationships, they are expected to decrease substantially by the middle of decade, while web-based auctions and managed inventory relationships are expected to grow. In addition, increasing globalization will continue to have an impact on purchasing.

Purchasing managers/directors, and procurement managers/directors guide the organization’s acquisition procedures and standards. Most organizations use a three-way check as the foundation of their purchasing programs. This involves three departments in the organization completing separate parts of the acquisition process. The three departments do not all report to the same senior manager to prevent unethical practices and lend credibility to the process. These departments can be purchasing, receiving; and accounts payable or engineering, purchasing and accounts payable; or a plant manager, purchasing and accounts payable. Combinations can vary significantly, but a purchasing department and accounts payable are usually two of the three departments involved. Historically, the purchasing department issued Purchase Orders for supplies, services, equipment, and raw materials. Then, in an effort to decrease the administrative costs associated with the repetitive ordering of basic consumable items, "Blanket" or "Master" Agreements were put into place. These types of agreements typically have a longer duration and increased scope to maximize the


Quantities of Scale concept. When additional supplies are required, a simple release would be issued to the supplier to provide the goods or services. Another method of decreasing administrative costs associated with repetitive contracts for common material is the use of company credit cards, also known as "Purchasing Cards" or simply "P-Cards". P-card programs vary, but all of them have internal checks and audits to ensure appropriate use. Purchasing managers realized once contracts for the low dollar value consumables are in place, procurement can take a smaller role in the operation and use of the contracts. There is still oversight in the forms of audits and monthly statement reviews, but most of their time is now available to negotiate major purchases and setting up of other long term contracts. These contracts are typically renewable annually.

Purchasing has interface with a number of other functional arrears, as well as with outside suppliers. Purchasing is connecting link between the organization and the suppliers. In this capacity, it exchanges information with suppliers and functional areas. The interacting between purchasing and the other areas are as follows: • Operation constitute the main source of requests for purchased materials, and close cooperation between these units and the purchasing department is vital if quality, quantity and delivery goals are to be met. Cancellation, changes in specification or changes in quality, quantity or delivery time must be communicated immediately for purchasing to be effective. • The purchasing department may require the assistance of the legal department in contract negotiations. In drawing up bid specifications for no routine purchase, and in helping interpret legislation on pricing, product liability and contracts with suppliers. • Accounting is responsible for handling payments to suppliers and must be notified promptly when goods are received in order to take advantage of 75

possible discounts. In many firms, data processing is handled by the accounting department, which keeps inventory records, checks invoices and monitors vendor performance. • Design and engineering usually prepare material specification, which must be communicated to purchasing. Because of its contacts with suppliers, purchasing if often in a position to pass information about new products and materials improvement on to design personnel. Also, design and purchasing people may work closely to determine whether changes in specifications, design or materials can reduce the cost of purchased items

"Series of steps that begin with a request for purchase material, equipment, supplies or other items from outside the organization, and ends when the purchasing department is notified that a shipment has been received in satisfactory condition."

1. Purchasing receives the requisition: the requisition includes • A description of the item or material desired. • • • The quantity and quality necessary. Desired delivery dates. Who is requesting a purchase?

2. Purchasing selects a supplier:


the purchasing department must identify suppliers who have the capability of supplying the desired goods. If no suppliers are currently listed in the files, new one must be sought. Vendor rating may b referred to in choosing among vendors, or perhaps rating information can be relayed to the vendor with the thought of upgrading future performance. 3. Purchasing places the order with the vendor: if the order involves, • large expenditure, particularly for a one time purchase of equipment, for example, vendor will usually be asked to bid on the job, and operating and design personnel may b asked to assist in negotiations with a vendor • Moderate volume items may also have blanket purchase orders or they may be handled on an individual basis. • Small purchases may b handled directly between the operating unit requesting a purchased item and the supplier,

4. Monitoring orders: routine follow up on orders, especially large orders or those with lengthy lead times, allows the purchasing department to project potential delays and relay that information to the operating units. Conversely the purchasing department must communicate changes in quantities and delivery needs of the operating units to suppliers to allow then time to change their plan. Lead time is the period of time between the initiation of any process of production and the completion of that process. 4. Receiving orders: receiving must be check incoming shipments for quality and quantity. It must notify purchasing, accounting and the operating unit that requested the goods. If the goods are not satisfactory, they may have to be returned to the supplier or subject to further inspection.


Different organizations have different purchasing policies. Purchasing can be centralizes or decentralized. The details are as follows:

DEFINITION: "Centralized purchasing means that the purchases are handled by one special department, and all the orders must be placed by than single authority for all the departments of the organization." Centralized purchasing means buying and managing purchases from one location for all locations within an organization. If your company has a number of geographically dispersed locations, you may think that it is impossible to implement a world class purchasing strategy. It is prudent for companies need to think of their overall spend as a central function. Having a centralized purchasing organization, a company can review its total purchasing and select vendors that can provide a majority of items at the best costs. This scenario will not cover all items used at all of the locations and the central purchasing organization would have to work with the locations to identify local suppliers that facilitate the needs of the remote location. Conformance with all the related rules, laws and regulations. Centralizing the purchasing function strengthens internal controls. A centralized purchasing department typically:


• • • • • • •

Receives and coordinates purchasing requisitions/purchase orders from campuses or departments Communicates with vendors regarding prices and terms of purchases Processes and approves all purchase orders Issues purchase orders to vendors Receives purchases at central warehouse locations Coordinates competitive procurement processes Distributes goods based on purchase requirements

DEFINITION: "A system in whish individual departments or separate locations handles their own purchasing requirements. A system of purchasing in which there is a varying degree of delegation of authority, responsibility, and control of purchasing activities to the several using agencies.” Today’s financial systems often have a sophisticated purchasing (purchase order) module. They are capable of electronically routing purchase orders and assuring the right level of concurrence within the organization for the purchase of goods. This can be based on the nature of the commodity or the amount of expenditure. They can track the total expended by the agency for a particular commodity and advise when certain levels are attained. Given this level of sophistication, it is possible for an efficient purchasing system to occur within a decentralized environment. However, decentralized can also often be code language for little or no oversight of the purchasing function. This is not good!


These larger departments conduct their own bid process and the financial system is used to keep track of commitments and purchase orders. The system must be efficient and meeting the various needs around the city. In decentralized purchasing, campuses and departments may issue purchase orders, communicate directly with vendors, and receive goods at other than central locations. If purchases are made inappropriately, violation of laws, regulations and school board policies may result.

In this system efforts are made to confine the features of both centralized and decentralized purchase policies in the following manner: • • • • • Deciding purchase budget for each branch at the beginning of the year. Branches are restricted to make purchase within their budget (not above and not below. Suppliers to purchase the goods must me selected by the head office for the branch. Open system of operations must be followed for selection of supplier. Branches to follow.

The purchasing function has been disregarded for a long time, but now it is being scrutinized closely because of its interaction with suppliers and external market. The chapter has highlighted the importance of the purchasing function and the impact just-in-time has on achieving product quality through long term contact and fair prices. Ethical issues in purchasing- favoritism, accepting of gifts by suppliers, disclosing confidential information were also discussed. Purchase managers often favor suppliers who are also good customers. Thus developing a mutually beneficial


relationship. In some cases, purchasing managers discriminate in favor of suppliers who are close to the top management so that they can gain the support and confidence of the top officials.

Ethics in purchasing
Ethical behavior is imp0ortant in all aspects of business. This is certainly true in purchasing where the temptation for unethical behavior can be enormous. Buyers often hold great power and sales people are often eager to make a sale. Unless both parties act in an ethical manner the potential for abuse is very real. With increase globalization the challenges are particular great. Because the behavior regarded as customary in one country might be regarded unethical in another country. The national association of purchasing management has set some ethical behavior. These are following guidelines for ethical behavior in purchasing:

1. Loyalty to employer 2. Justice to those you deal with 3. Faith in your profession

Standards of purchasing
1.avoid appearance of unethical practice 2.Follow the lawful instruction of employer.


3.Refrain from private activity that might conflict with the interests of your employer. 4.Handle confidential or proprietary employer or supplier information with due care. 5.Refrain from soliciting or accepting gifts, favor, or services from present or potential supplier. 6.Practice courtesy and impartiality in all aspects of your jobs. 7.Refrain from reciprocal agreements that constrain competition. 8.Know and obey the letter and spirit of laws governing purchasing. 9.Demonstrate support for small, disadvantaged and minority-owned businesses. 10. Discourage involvement in employer-sponsored programs of no business, personal purchases. 11. Enhance the profession by maintaining current knowledge and the highest ethical standards. 12. Conduct international purchasing in accordance with the laws, customs, and practices of foreign countries, but consistent with the laws of the United States, your organization’s polices and these guidelines.

Supplier management
Reliable and trustworthy suppliers are a vital link in an effective supply chain. Timely deliveries of goods or services and high quality are just two ways that suppliers can contribute in effective operations.


Choosing suppliers In many respects, choosing a vendor involves taking into account many of the same factors associated with making a major purchase. A company considers price, quality, the supplier’s reputation, past experience with supplier, and service after the sale. Supplier Audits Periodic audits of suppliers are a means of keeping current on suppliers’ production, capabilities, quality and delivery problems and resolutions, and suppliers’ performance on other criteria. Supplier Certification Supplier certification is a detailed examination of the policies and capabilities of a supplier. The certification process verifies that supplier meets or exceeds the requirements of a buyer. Rather than develop their own certification program some companies rely on standard industry certifications such as ISO 9000.

Supplier relations Purchasing has the ultimate responsibility for establishing and maintaining good supplier relationships. Short term contracts involve competitive bidding. Suppliers are kept at arm’s length and relationship is minimal. Medium term


contracts often involve ongoing relationships. Long term contract are beneficial for parties. Supplier Partnerships More and more business organizations are seeking to establish partnerships with other organizations in their supply chains. This implies fewer suppliers, long-term relationships, sharing of information and cooperation in planning.

DG Khan Purchase policy
DG Khan Cement industry follows a flexible purchase policy. Which is combination of both centralized and decentralized purchase policy.


Centralized Whereby all the requirements of departments and branches procured by the head office and then supplied to the individual units. Decentralized Whereby each branch and department is independent for procurement for its required things without interference by head office. They follow the centralize purchase policy for the items which are mentioned in the contract e.g. raw material, machinery other equipment etc and they also follow the decentralize purchase policy for office use items. By following flexible policy departments are restricted to make purchases within their budgets for the proper quality and better financial control. But still suppliers are selected by the head office of the branch.



The employment procedure was the first phase of personnel work to receive the attention of management and it has increased in importance in recent years. Under present labor laws and strong union organization a worker who is once employed soon achieves a claim upon his job which makes its difficult for management to discharge him. The importance of employment procedure is increased also by the policy of promotion from within since future executives may enter the service of the company by way of the employment office.

The employment of worker requires attention to the source of labor supply in order that the number of qualifies applicants may be adequate. The sources of supply vary with business, the industry and the community, and every business should determine for itself which sources are best. Information may be gained by asking each applicant how heard of the job and what person suggested that he may apply. Persons who are employed should be followed up to determine the number of applicants hired, the cost per applicant attracted and per applicant hired the average time employees recruited from each


source remain with the company, and the success on the job of the workers recruited from each source. The development of sources of supply of applicants should be regarded as the first step in the process of employee selection because the preference of one source instead of another results in the elimination of persons who are not available in the source that is developed. The employment department is not interested in appealing to all possible applicants but refer to group that represents partial selection. The larger the number of applicants the greater is the cost of selection in both money and time. The employment manager therefore begins his selection by cultivating some sources and neglecting others. However, additional sources may be utilized in busy seasons or in years of increasing productions.

A job that is vacated by separation on an employee is often supplied by transfer or promotion of another worker. Vacancies may also be filled by the employment of persons who formerly held jobs with the company. Such persons may have held temporary jobs during a busy season or they may have left the company for a very good reason such as illness in the family or other personal difficulty. Less risk is taken in employing these persons than would be involved In employing persons whose records are not known within the company. A closely related source is the recommendation of a person who is presently employed. This kind of recommendation may b dependable because the person now employed is familiar with the qualification and the interest of the person being recommended and also with the working conditions within the company. An employee might hesitate to recommend a person who will not succeed in his work.



Many sources of employment are available outside the company. If the company has the reputation in the community as the good place to work some qualified applicants may appear at the employment office or make applications through mails without any effort on the part of the employment department. Employment agencies may also be used to direct applicants to the company upon request of the employment manager for workers possessing certain skills. Representative of the company who search for persons with desirable qualification are used by many companies. Scouts frequently visit colleges to solicit applications from graduates in chemistry engineering business administration and other courses however the soliciting of the employees of the other companies is regarded as unethical unless it is done with the knowledge of the other employer. Labor pirating may result in retaliation to the determinant of both companies. Advertising for applicants by news papers radio or television is a reliable source for many types of workers, particularly n larger cities. Some employers use advertising only when other sources fail to supply enough applicants. The objection to advertising is that many unqualified persons apply. And that the time of the employment section is wasted. Specialist in such fields as accounting time studies cost and budgeting may often be reached through trade and professional magazines.

Methods and devices for selecting workers are not expected in every case to result in the employment of applicants who will succeed and the rejection of those who would fail if employed. Employment methods cannot be expected to rank or


to grade workers in a manner that would be predictive of the degree of success. While much progress has been made in the development of scientific methods of selecting employment no method or combination of methods can be relied upon always to result in the best selection. Employment methods can be considered to be good if they make possible the classification of applicants into three groups: • • • Those likely to succeed in the jog Those likely to fail Those whose success is doubtful

Internal source of candidates
Recruiting may bring to mind employment agencies and classification ads, but current employees are often the best source of candidates. Filling open position with inside candidates has many benefits. First there is really no substitute for knowing a candidates strengths and weaknesses. It is often therefore safer to promote employees from within since you are likely to have a more accurate view of the person's skills. Inside candidates may also be more committed to the company. Morale may arise if employees see promotions as rewards for loyalty and competence. Inside my also require less orientation and training then outside. However hiring from within can also backfire. Employees who apply for job and don’t get them may become discontented; telling unsuccessful applicants why they were rejected and what remedial actions they might take to be more successful in the future is crucial. Many employees require manager to post the job openings and interview all inside candidates. Yet manger often knows ahead of time exactly whom he or she wants to hire. Requiring a person to interview stream of unsuspecting inside candidates can be a waste of time for all concerned. Inbreeding the other potential drawbacks. When all managers come 90

up through the ranks they may have the tendency to maintain the status quo when a new direction is what's required .

Finding internal candidates
To be effective promotion from within requires using job posting, personal records and skill banks. Job posting means publicizing the open job to employees and listing the job attributes like qualifications, supervisors work schedule and pay rate. Qualifications personnel inventory tool like those describe earlier are also important. An examination of personnel records may reveal employees who are working in job below their educational or skill levels It may also reveal persons who have potential for further training or who already have the right background for the open job. Computerized record system can help ensure that you consider qualified inside candidates for the opening.

Rehiring former employees has its pros and cons. On the plus side former employees are known quantities and are already familiar with the company's culture, style, and way of doing things. On the other hand employees who were let go may return with less than positive attitude. And hiring former employees who left for greener pastures back into better positions may signal your current employees that the best way to get ahead is to leave the firm. In any event there are several ways to reduce the enhance of adverse reactions. For example after rehired employees have been back on the job for a certain period, credit them with the years of service they had accumulated before they left. In addition, inquire about what they did during the layoff and how they feel about returning to the firm.

Succession planning

Forecasting the availability of inside executive is particularly important in succession planning — the ongoing process of systematically identifying, assessing and developing organizational leadership to enhance performance. Succession planning entails three steps: Identifying and analyzing key jobs Creating and assessing candidates Selecting those who will fill key positions First based on the firm's strategic goals, top management and HR identify what the company's future key position need will be, and formulate job description and specification for them. Thus, plans to expand abroad or to diversify the company's product line may suggest bulking up the management talent in the firm's international division or hiring a key executive to run a new product division. After identifying future key positions needs management turns to the job of creating and assessing candidates for these jobs. Creating means identifying potential internal and external candidates for future key positions and then providing them with the development experience they required to be viable candidates when its time to fill the position. Organizations develop high position employees through a variety of means. Most use internal training and cross functional experience; they also use job rotation, external training, and global assignments. Finally succession planning requires assessing these candidates and selecting those who will actually fill the key positions.

Outside source of candidates
Firms can’t get all the employees they need from their current staff and sometimes they just don’t want to. Advertising


Everyone is familiar with employment ads and most of us have probably responded to one or more. While web based recruiting is replacing help wanted ads to some extent a print ads are still popular. To use help wanted ads successfully employers have to address two issues: The advertising medium The ad’s construction The media The selection of the best medium—is it the local paper, TV or the internet— depends on the positions for which you are recruiting. For example the local newspaper is usually the best source for blue-collar help, clerical employees and lower level administration employees. On the other hand if you are recruiting for workers with special skills. For specialized employees you can advertise in trade and professional journals. Help wanted ads in papers can be good source of middle or senior management personnel. Technology is enabling companies to be more creative how they advertise for job applicants. The companies therefore use their marketing programs to help solicit job applicants. Employment advertising’s effectiveness It does pay for employee to formulate marketing campaigns aimed at making themselves more attractive to potential recruit. A recent study shed some light on how to do this. The researcher surveyed 133 students who were graduating with bachelors or master degree in engineering. For these students specific job related advertising was significantly related to their perceptions of the company and of the job opportunities there. The result suggests that employer should try to


create positive impression oh their companies through their job postings, web sites and other means. Building word of mouth reputation is also important. In their job search these new graduate engineers relied mostly heavily on information about the company from other people. As the researchers conclude , from a practical standpoint, the result indicate that expanding and capitalizing on word of mouth endorsements will a highly effective and economical method for increasing applicants.

Employment agencies There are three types of employee agencies: 1. public agencies operated by federal state , or local government 2. agencies associated with non profit organizations 3. privately owned agencies

Public and non profit Agencies Every state has a public, state run employment service agency. These agencies are an important source of workers, but some employers have had mixed experience with them. For one thing applicants for unemployment insurance are required to register and to make themselves available for job interviews. Some of these people are not interested in getting back to work, so employers can end up with tem who have little or no desire for employment. And fairly or not, employers probably view some of these local agencies are rather in their efforts to fill area employers jobs. Yet these agencies usefulness is actually on the rise. Beyond just filling jobs for instance counselors will visit an employers work site review the employer’s job


requirements and even assist the employer in writing job descriptions.


states have turned their local state employment agencies into “one step” shops. Other employment agencies are tied to non profit organizations. Most professional and technical societies. Many public welfare agencies try to place people who are in special categories such as those who are physically disabled.

Private agencies Private employment agencies are important sources of clerical, white collar and managerial personnel. They charge fees for each applicant they place. Market conditions generally determine whether candidates or employer pays fee. Most are fee paid jobs, in which the employer pays the fee. Employers correctively assume that this is the best way to attract qualified currently employed applicants, who might not be so willing to pursue other jobs if they had to pay the fees. Why turn to an agency? Reasons include: 1. Your firm does not have own HR department and is not geared to doing recruiting and screening.


2. Your firm has found it difficult in the past to generate a pool of qualified applicants. 3. You must fill a particular opening quickly. 4. There is a perceived need to attract a greater number of minority or female applicants. 5. You want to reach currently employed individuals who might feel more comfortable dealing with agencies than with competing companies. Yet employment agencies also have disadvantages. For example the employment agency’s screening may let poor applicants bypass the preliminary stages of your own selection process. Unqualified applicants may go directly to the supervisors responsible for hiring, who may in turn naively hire them. Conversely improper testing and screening at the employment agency could block potentially successful applicants from entering your applicant pool. To help avoid such problems, experienced recruiters suggest the following: 1. Give the agency an accurate and complete job description. 2. Make sure tests, application blanks and interviews are part of the agency’s selection process. 3. Periodically review data on candidates accepted or rejected by your firm, and by the agency. Check on the effectiveness and fairness of the agency’s screening process. 4. Screen the agency. Check with other mangers or HR people to find out which agencies have been the most effective at filling the sorts of positions you need filled. Temp Agencies and Alternative Staffing


Employers often supplement their permanent workforce by hiring contingent or temporary workers, often through temporary help employment agencies. Also known as pat time or just in time workers, the contingent workforce is big and growing. Today’s contingent workforce is not limited to clerical or maintenance staff. Benefits & Costs Contingent staffing is on the rise for several reasons. Historically, of course employers have always used “temps” to fill in for payment employees who were out stick or on vocation. But today’s desire for ever higher productivity also contributes to temp workers growing popularity. Productivity is measured in terms of output per hour paid for and temps are paid only when they’re working. The benefits if contingent staffers don’t come without a price. They may be more productive and less expensive to recruit and train but contingent workers from temporary agencies generally cost employers 20% to 50% more than comparable permanent workers, since the agency gets a fee. Furthermore, people have a psychological reference point to their place of employment. Once you put them in the contingent category you are saying they‘re expendable. Outsourcing White-Collar and other Jobs Outsourcing jobs in this way is an increasingly important employment option. Regardless of the pros and cons there seems little doubt that out sourcing is an auction that most HR managers will have to deal with. The question at hand, therefore is what sorts of specific issue should the HR manager keep in mind when formulating plane too outsource jobs abroad? Here the experiences of the others employers suggest several things to watch out for. One is the very real potential of instability or military tension in


countries. Other issues include the likelihood of cultural misunderstandings, securities and privacy concerns and the need to deal with foreign contract, liability and legal system issues. Instituting programs such as these requires careful attention to various other potential obstacles as well. Executive Recruiters They are also called short hunters. They are special employment agencies retained by employers to seek out top management talent for their client. The percentage of yours firms position filled by these services might be small. However these jobs include crucial executives and technical positions. For executive positions head hunters may be the only source of candidates. The employers always pay the fees. There are two types of executive recruiters contingent and retained. Contingency based recruiters tend to handle junior to middle level management job searchers in the 50,000 to 150,000 range. Whether retained or contingent, fees are beginning to drop from the usual 30 percent or more of the executive first year pay. Two trends technology and specialization are changing the executive search business. Most recruiting firms are establishing internet linked computerized database the aim of which according to one senior recruiter is to create a loge list by pushing a button . Executive recruiters are also becoming more specialized and the large once are creating new businesses aimed specifically and specialized functions our industries Pros and cons


Recruiters can be useful. They have many contacts and are especially adept at contacting qualified currently employed candidates who are not actively looking to change jobs. The recruiters can save top management time by advertising for the positions and screening what could turn our hundreds of applicants. The recruiter fee might actually turned out to be insignificant compared with cost of the executive time saved. But there are pitfalls. As an employer it is essential for you to explain completely what sort of candidates is required and why? Some recruiters are also more sale people than professional. Recruiters also claimed at what theirs client say they wants is often not really what the clients want. Guide lines In choosing the recruiter guide line includes: 1. Makes sure the firm is capable of conducting a thorough search. Under this ethics core, a recruiter can not approach the executive talent of a former client for a vacancy with a new client for a period of two years after completing a search for the former client. 2. Meet the individual who will actually handle you assignment. If this person has not the ability to seek out top candidates and sell them on you r firm, it’s unlikely you will see the best candidates. 3. Ask how much the search firm charges. Search firms fees range from 25- 35 % of the position, often one third is payable as a retailer at the out set one third at the end of 30 days and one third after 60 days. The out of pocket expense are extra and could run to 10 % to 20% of the fee itself, and sometimes more. Get the agreement in writing.



Many organizations find it attractive to selectively outsource their recruiting processes as needed for shorter periods of time to fill occasional vacancies, augment internal driver recruiting efforts, or for special projects such as startups. On-Demand recruitment process outsourcing is a service in which the critical recruiting functions such as candidate sourcing and screening are outsourced to companies on a month-to-month basis until the need is fulfilled.

On-Demand recruitment process outsourcing services can be deployed rapidly and tend to substantially improve recruiting effectiveness while taking the place of fixed-overhead, internal recruiting functions. As needed companies can provide a fluid program designed to significant volumes of qualified and pre-screened candidates into your hiring process. These full service programs incorporate highly efficient processes to proactively market your open positions, screen for qualified candidates, perform extensive background screening, ensure DOT compliance, and deliver only pre-qualified candidates to your hiring managers For the Hiring Decisions Clients who engage On-Demand recruiting support gain access to a fully functioning recruiting department including the large database of candidates as well as proprietary direct sourcing methodology. On-Demand RPO gives you advanced recruiting capability where, and when needed, to generate quality candidate flow while driving down recruiting costs.

Sending an employer's representative to college campuses to prescreen applicants and create an applicant pool from the graduating class is an important source of management trainees, promo table candidates, and professional and technical employees.


The practice of graduate recruitment involves recruiting those who have recently graduated from a college or university in the profession that the recruiters are looking for. Research has shown that recent graduates benefit from this program substantially, and with ease, as most are done in the college or universities career counseling service. The problem in the recruitment field is using the phrase graduate, because it may give associates a distorted idea of the candidate who applied for the job, because the use of this word may be considered particularly redundant for those who have attended universities. Graduates stand as great a chance of being unemployed as those who are not graduates but are in the same type of field. In many careers the use of graduate recruitment is regarded as a stepping stone to moving up staff on the ladder of success. Most of the employers also have the belief that they will be able to find staff members with the right amount of skills when using graduate recruitment. Some industries such as engineering use graduate recruitment as a way to be sure that the staff personnel have all of the correct qualifications for the position. This means that graduates will be one step ahead of non graduates especially when it comes down to advancing in their career.

An intern is one who works in a temporary position with an emphasis on on-thejob training rather than merely employment, making it similar to an apprenticeship. Interns are usually college or university students, but they can also be high school students or post graduate adults seeking skills for a new career. Student internships provide opportunities for students to gain experience in their field, determine if they have an interest in a particular career, create a network of contacts, or gain school credit. Internships provide the employers with cheap or free labor for (typically) low-level tasks (stereotypically including fetching


coffee for the office), and also the prospect of interns returning to the company after completing their education and requiring little or no training.

Referral recruitment is a process whereby vacancies are promoted and filled by recommendations rather than by traditional methods such as direct classified job advertisements or employing a headhunter. Proponents of this recruitment method claim that since each candidate comes with a personal recommendation behind them, the applicants are likely to be better suited to the job and the applicant already has a referee. Many companies offer incentives to the referee, usually a monetary fee. A potential downside of referral recruitment is that these incentives can lead to candidates inventing an online alter ego for them to claim the reward or for them to contact a friend and split the reward. The key advantage of referral recruitment is that it allows recruiters to reach passive candidates, those who are not actively looking for a new job but are sometimes amongst the most prized employees. Referral recruitment can be owned and managed internally by the recruiting organization. Many companies are now finding Employee Referral Schemes can successfully complement their existing recruitment methods. Job vacancies are advertised on a company intranet site and existing employees are encouraged to find suitable candidates from their friends and acquaintances and refer them to the recruitment process. If a referral is successful, the reward or bonus is typically paid after the applicant has been working for 3 months or more.

Such sites have two main features: job boards and a résumé/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies.


Alternatively, candidates can upload a résumé to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed candidate management interfaces (also online). Key players in this sector provide e-recruitment software and services to organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business performance. The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their current companies, co-workers, customers or others might see their resumes.


The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

DG Khan Sources of Labor Supply

DG Khan Cement Industry follows advertisement method to select their employees. They hired the persons which are recommended by other present employee and accept unsolicited applications.


For hiring the lower level management they give ads in the newspaper, online, banners and etc and for higher level they consulted with their employees and by attracting the other organization’s upper level management with attractive salary packages.


Art of inducting the new employees to his job. • • Induction training is a type of training given as an initial preparation upon taking up a post. Its goal is to help new employees reach the level of performance expected from an experienced worker.

Purpose of induction


1. To create a feeling of belonging 2. To provide necessary information (job + business) 3. To boost the Morale It is process of bringing/introducing/familiarizing a new recruit into the organization. This program familiarizes the new employee about the culture, accepted practices and performance standards of the organization. It has been proved in one of the survey conducted by the Centre for Creative Leadership (headquartered in Greensboro, North Carolina, US), that a fresh hire does not met the expectation of an organization for the first few months. The issue of productivity of new hires has to be defined individually by every organization. Fresh hires are able to learn the process as quickly as possible if the induction efforts are right and they can be very productive if their induction is been done in an proper manner.

Importance of induction program
“What will happen if we do not train new recruit in the organization and they stay on”. While keeping the above statement in mind, think the importance of induction program. Induction training is very essential for any company because it helps an individual/new recruit to grow within a company and motivates him/her. It inculcates in the employee, more confidence to progress. It is during induction that a new recruit gets to know about the organization's employment philosophy, physical work environment, employee's rights, employee's responsibilities, organization, culture and values along with key business processes.


A new entrant should culturally fit in an organization. Interaction at this stage shapes an individual's disposition and outlook for work and motivation levels. The importance of induction cannot be underestimated.

Involvement in Induction programs(should be)
Induction program must/should include all the aspects of the organization and present for the awareness of the new employee. Like emergency procedures, facilities, safety issues, right’s of the employee, what to be paid, no harassment, equal opportunity, grievance procedures, employee responsibilities, times, conduct standards, job function, dress requirements, organizational structure, what it does, how they fit in, who is their Manager, the functions of different departments, how the employee will be managed, what the performance management process will involve, and his/her role in that process, are the few concern areas.

Induction program
Induction should be conducted on the first day of the new recruit from the gate of the organization itself. For induction only higher management or Head of HR or Senior should be addressing the new entrant. It should also involve the employees of the new entrant department. An effective induction helps a new employee feel assured and comfortable in the new environment, which is critical for early uptake in the new role. Induction should always be interactive. It also provides an opportunity to the new entrant to engrain the original values and ethics as well as the style of functioning. Escorting a new entrant will be one of the best and most impact induction steps. It should always be interesting and must hold the attention of the new employee.


Involvement in Induction programs ( not be’s ):
First of all Induction program must not/ should not include much of theoretical part. Bad induction leads to stress and de-motivation. Arriving for a new job a bad induction can leave a new starter worried, anxious and unable to perform their duties. More work for longer as the new entrant struggles to become an effective member. It increases the workload, all the wrong messages given to the new starter and can damage long-term implications. Signs of bad Induction program are Too Short – during induction a new entrant should just not give the mobile numbers or small brief as always remember either a person should have or should not have knowledge, half knowledge leads to disaster. Too Hasty – A ten minutes brisk walk and making him familiarizing about the exit or entry should not be the part of induction. Too Boring – All the theoretical and long presentation with high figures involved is a bad sign of induction. Impersonal – Avoid hours of speeches and presentations and voluminous policy manuals or information packages. Too personal – It should not be related to the complete life cycle of a new entrant. Neglectful – whosoever takes the induction should have complete knowledge of the new entrant participation the induction program, Isolated and embarrassing. Difference between effective and non effective Induction Programs.


• Effective induction decreases the chances of attrition v/s bad induction increase the attrition. • It makes employees more energetic whereas non effective induction demoralizes the new entrant. • It makes positive impact v/s it possesses negative impact. • It reduces cost v/s it increase the cost. • It increases team work ability v/s it reduces team work ability. To be more precise please follow up the example:Two employees were recruited in 2004 at ‘X’ company as a technical recruiter. Employee ‘A’ was appointed August whereas employee ‘B’ was appointed December 04. ’A’ went through bad induction program as mentioned above and employee ‘B’ went through good induction program inculcating all the necessities. ‘A’ was very confused about the organization policies; environment, culture etc whereas ‘B’ was clear about the all aspects of the organization. After two years ‘B’ was promoted at a senior level position whereas ‘A’ was still confused and was unable to give his/her fullest to the company and was not at all comfortable with the environment of the organization. In, result after the promotion of ‘B’ he resigned the company reason being senior in terms of joining from ‘B’. With the above example it becomes very clear about the kind of difference of bad and good induction can make. As bad induction does not only cost to employee but to organization as well. Impact of Bad induction program Bad induction = attrition


Bad induction program does not only lead to confusion, stress and de-motivation, but one of the most disastrous effects will be the attrition. Losing a new entrant of staff and having to replace them costs about 25% of their salary/wage. Providing too much, too soon; the inductee must not be overwhelmed by a mass of information on the first day. Bad Induction program generates unreasonable expectations by being more interesting and more exciting than the job itself.

Good induction program Good induction =retention

Induction programs help in reducing attrition rates, apparently yes. The first impression is very important when a person comes into a new organization and how you interact with these new entrants plays an important role on how they discharge their duties later. It was found that employees who received an effective induction were more engaged, compared to those who rated the quality of induction as below average. The thought of leaving the organization creeps in at early stage in cases where the induction is not done with passion. A good induction prepares an employee better to compete in fiercely competitive market place, which has a direct impact on the early success and hence motivation, he adds. It is true that only good induction does not keep the attrition away but it plays a big role. In conclusion, getting the induction process right, sets the scene for the remainder of the employment experience. This is a critical phase in the employment process. Induction programs should be implemented in a structured manner and applied uniformly across the organization. Best practice involves a very structured approach to the induction process.

Procedure of induction

1. Introduction a) lectures b) tour of company and various departments c) film 2. issue of temporary pass 3. Assignment of clock numbers 4. introduction with time keeper 5. welcome by personal manager a) appreciation to join the organization b) worker rights c) Different welfare program 6. welcome by personal officer a) main feature of personal policy b) future benefits 7. introduction with foreman, supervisor, senior colleague 8. Filing and submission of important documents. 9. Issue of permanent pass. 10. 11. 12. 13. letter at home Follow up by foreman Refresh course if needed Confirmation

Benefits of a proper Induction procedure include:
a. avoiding any doubt on the part of the new employee, especially in respect of performance and quality aspects of the role. b. Giving the new employee a sense of certainty about their job and the whole working environment c. Avoiding any possible personal grievance or complaint actions.


Induction Check List
It is important to have a check list of items to cover during the induction procedure. This may be very simple or extensive, but it will provide a permanent record in the employee’s personal file that the procedure was carried out, and the items which were discussed. The sample check list attached can be used as a guide to produce your own, to include other items relevant to your business, or exclude items not relevant.

Further comments to the Induction Check List:
a. The business owner or employer should go over the employment Agreement or Contract with particular reference to "out of the ordinary" clauses, and which are beyond the statutory minimum. b. The new employee should be advised of the business or organizational objectives to help focus the employee where the business is heading. c. All policies such as Health and Safety, Harassment, Grievance or complaint should be included. d. The Key Performance Indicators derived from the employee’s Job Description should be explained. e. Guidance on any business or organizational "Culture" should be explained, including the formality or informality of internal or external relationships. f. The existence of a Strategic Business Plan relating to the future direction of the business, or proposed changes which have already been advised to existing staff should be disclosed. g. The time that a business "Buddy" or mentor will be available for assistance.


h. What training will be provided as part of the new role?

Induction in D.G Khan cement industry
D.G Khan Cement industry followed the same procedure of induction which we describe above.

Induction Define the Organization Personal Policies and Terms Benefits and Facilities Nature and Role of Work Safety measures Value of Business


Employee’s Training

“Training mean adopting a process where by employees start and shown various skill require to perform their duties and accomplish the assign task.” Or “Training includes all the process whereby employees taught and shown the necessary skills required for a particular job.”


Objectives of Training
1. 2. 3. 4. 5. 6. 7. 8. 9. Setting up the basic objectives Appropriate planning Much importance to initial stage Selection of proper trainee’s Instruction Maintaining the record of progress Proper evaluation of trainees Issue of certificate at the end of training time to time check/valuation


Purpose of Training
Employee training may be designed to prepare the employee to advance to a new job or to transfer to a higher rated job. Training for new employees is intended to enable them to adapt themselves to new situations. Present employees may require training for new jobs because of technological changes, transfer to job where opportunities for advancement are greater, or variation in the rate of production due to seasonal or cyclical variation in demand. Training for present employees may also be desirable in order that each person may be able to perform the duties of more than one job. Training may be intended to teach employees to do old jobs better. Training may be in general and not specifically related to any task. General training may be given to enable an employee to understand he basic or scientific principles of production. General training may be intended to inform employees of developments affecting the industry, the company, or the product.

Selection of persons for training:
Test of various kinds are used in selecting persons to take training courses and in dividing them into classes. New employees are chosen through the employment procedure. Old employees may be selected for special training on the basis of recommendations of supervisors, merit rating, special tests, or scores on tests given at the time of their employment. The value of testing program for selecting person to take training courses was demonstrate during world war 11 candidates for training as pilots, navigators and bombardiers were given extensive tests, including the following type: practical reasoning ability, work knowledge, factual information, deductive reasoning ability, mechanical comprehension, common sense


judgment, reasoning in reading syllogistic reasoning, and interest in aviation. The effectiveness of the qualifying examination was demonstrated by an experimental group of approximately one their test scores. The results are shown by the training of candidates for pilot training. In the experimental group, 88.9 percent of the men who failed the qualifying examination failed to complete program, and 34.8 % graduated. The results also indicate that the higher the score on the qualifying examination, the greater was the chance of success in the training program.

The Training Process
 Training – The process of teaching new employees the basic skills they need to perform their jobs.

 The strategic context of training Performance management: the process employers use to make sure employees are working toward organizational goals. • • • Web-based training Distance learning-based training Cross-cultural diversity training

The Training and Development Process


 Needs analysis – Identify job performance skills needed, assess prospective trainee’s skills, and develop objectives.  Instructional design – Produce the training program content, including workbooks, exercises, and activities.  Validation – Presenting (trying out) the training to a small representative audience.  Implement the program – Actually training the targeted employee group.

 Evaluation – Assesses the program’s successes or failures.

Types of Training:
Much kind of training programs may be organized according to the nature of the work done, the need for new employees with special skills, and the qualification of the people who are available for employment. Some of the types of training commonly used are vestibule training, apprenticeship program, on the job training and training for upgrading with the company.


Vestibule Training


The word vestibule means a passage or hall between the outer door and the interior of the building. Vestibule training means preparation for the job which is given immediately after the employee has been hired and prior to hid induction. The name of the programme indicates the time when the training is given rather than the place where the school is conducted.

a) A small group of employees is given an intensive course in the function,

design, manufacture, and assembly of a product. They are shown the relation of the various operations to each other and the consequences of improper workmanship at each step. b) c) After the preliminary instruction is completed, the members of the group are At the completion of the course of the training workers are transfers to the taught to make a product. regular production lines, where they are taught some specific job.

1. 2. 3. 4. 5. 6. 7. Prior to induction Time schedule Training in small group More theory and less practical less emphasis on production rate More emphasis on instructions Coordination with production line


1. 2. The vestibule school is a practical plan only for the large company. If a The labor turn over on some jobs is more rapid than others, and more

complete production line is established, balance in the line is not easily maintained. replacement must be trained for such jobs.

2. Apprenticeship Training:
An apprenticeship is a person who is bound by contract to work for a stated time with a view of learning a trade. 1. 2. 3. contract for work service. Fixed period of training. Trade learning rather than job. (trade include a number of jobs) 121

4. 5. 6. 7.

Ease to difficult job. nominal remuneration (not salary) Usually absorbed after successful completion. Certificate o course completion.

On the Job Training
As the name implies, on the job training involves employees training at their place or work. The most common methods of on the job training are: - Demonstration / instruction; showing the trainee how to do the job - Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee - Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments) - Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"

Advantages of on the job training
- enlarged training - Guidance by foreman


- More emphasis on production result -Appropriate corrective measures to reduce errors and difficulties - Proper salary with full benefits.


Generally more cost effective - Less disruptive to the business - i.e. employees are not away from work - Training an employee in their own working environment, with equipment they are familiar with and people they know can help they gain direct experience to a standard approved by the employer


- Employees may find that they have more confidence if they are supervised and guided as they feel they are doing the job right - Employees may feel more at ease being taught or supervised by people they know rather than complete strangers at an external training course - Managers or supervisors can assess improvement and progress over a period of time and this makes it easier to identify a problem intervene and resolve problems quickly - On the job training is also productive, as the employee is still working as they are learning - As training progresses and the employee begins to feel more confident, this confidence would allow them to work at a higher standard and ultimately be more productive - Training "on-the-job" provides an opportunity to get to know staff they might not normally talk to

Disadvantages of on the job training
-Teaching or coaching is a specialist skill in itself; unless the trainer has the skills and knowledge to train, this would mean that the training will not be done to a sufficient standard. - The trainer may not be given the time to spend with the employee to teach them properly, which would mean substandard training has been achieved and learning has only been half done - The trainer may posses bad habits and pass these on to the trainee.

Training for safety


New employees are often given safety instructions. And other workers may be given refresher safety training. New employees in addition to being given oral instructions, are frequently given a booklet of safety regulations with a perforated sheet which they are asked to sign and hand to the foreman as evidence that they have read the instructions. The employee is taught the proper way to do a task, which is the safe way. When safety regulations are made a part of job instructions, the worker is more likely to receive positive instruction rather than negative warnings. However warning of a negative sort may be necessary in addition to positive instruction. Employees on the job are often subjected to a barrage of bulletin board posters, signs displayed at entrances or danger points, illuminated moving messages, and placards within or about the shop. Most of the training for employees is conducted by the foreman. Training for other persons in the organization is most effective if it is given by the immediate supervisors of the persons being trained. If instructions are given by someone else the wrong method might be taught or the learner may suspect that the wrong methods are being taught. The suspicion of the learner is strengthened if the principles are not followed by his supervisor, who might in fact be following methods that could be improved. However, courses in technical subjects, such as welding or machine design, are best taught by specialist who might be drawn from outside the company.

Special Training
1. For enhancing the acquired knowledge. 2. Particular fields of interest. 3. No claim for compensation. 4. On trainees request.

Computer-based Training (CBT)


 Advantages: – – – Reduced learning time Cost-effectiveness Instructional consistency

 Types of CBT
– – – Intelligent Tutoring systems Interactive multimedia training Virtual reality training

Distance and Internet-Based Training:
 Teletraining: – A trainer in a central location teaches groups of employees at remote locations via TV hookups.  Videoconferencing: – Interactively training employees who are geographically separated from each other—or from the trainer—via a combination of audio and visual equipment.  Training via the Internet: – Using the Internet or proprietary internal intranets to facilitate computer-based training.

Merits of Training:
1. Increase in the rate of output 2. Decrease in time consumption 3. increase in production quality and standard


4. decrease in breakage and wastage of tools 5. decrease in accident rate 6. decrease in absentee rate 7. decrease in labor turnover 8. decrease in grievances 9. increase employee morale 10. increase in efficiency of supervisor

Employees Training in D G Khan cement industry

D.G Khan Cement industry provides on the job and special training to the employees. On the job training means provide training to their employees on the place of work. If DG Khan Cement Company hires skilled workers they know about the work but if they hire unskilled workers so they provide only on the job training. Oracle software is developed by U.S.A. This software implemented in finance department. DG Khan Cement Company provides the special training to the employees for that software. Oracle software generates the reports very quickly and efficiently. It also records the purchase order.

The need for training


Identify the need for training

Organization level

Department level


On the job training Training

Special training

Future plans about training: DG Khan Cement Company has the future plans to provide the online training to their employees and different courses must teach them.

Cement Manufacturing Technology Course:
The course content will be suitable for a wide range of personnel within a cement manufacturing company including junior/middle management, technicians,


production and control room staff, etc and also for others who wish to gain a comprehensive understanding of the complete cement manufacturing process.

Course Content:

Module 1 - Objectives of cement manufacturing fundamental requirements of the cement product in application.

Module 2 - Raw materials for cement manufacture exploration, extraction, processing and mixing of cement raw materials.

Module 3 - Preprocessing 1 - Chemical, physical and mineralogical transformation from raw mix to cement clinker.

Module 4 - Preprocessing 2 - Process and equipment evolution for cement clinker manufacture.

Module 5 - Cement grinding and dispatch. Finishing the cement manufacturing process and satisfying the end-customer.

Module 6 - Sustainability in cement manufacture. Meeting corporate, customer, social and environmental obligations in the manufacture of cement.

Grinding and Milling Systems Course:
A six-week course designed to take students through the complete cycle of raw

material grinding and preparation, clinker grinding, milling and separation cycles. Ball mills and vertical milling technologies will all be included with operator training on improved grinding techniques, cost saving strategies, improved performance.

Course Content:

Module 1 – Introduction and concepts 129

The reasons why grinding and milling are so important in cement The measurement and control of fineness and the different Separation theory. The concept of grind ability and the effects of inter-grinding Drying and evaporative cooling. The segmentation of grinding and milling systems.


measures applied on cement factories.
• •

materials of different grind ability.
• •

Module 2 – Ball mills This module will cover the technology of ball mills used for raw and finish grinding in the cement manufacturing process.
• • • • • •

Mechanical description of the different types of mills. Ball mill grinding equations and dimensioning. Mill internals, media, liners and diaphragms. Ventilation, cooling and drying. Control concepts. Grinding aids and other tools to boost efficiency.


Module 3 – Vertical mills This module will cover the technology of vertical mills used for raw and finish grinding in the cement manufacturing process.
• • •

Mechanical description of the different types of mills. Vertical mill grinding equations and dimensioning. Ventilation, cooling and drying.


• •

Control concepts. Optimization possibilities.

Module 4 – Roll Presses This module will cover the technology of roll presses used for raw and finish grinding in the cement manufacturing process.
• • • • •

Mechanical description of the different types of presses. Roll press equations and dimensioning. Circuit possibilities. Control concepts. Optimization possibilities.

Module 5 – Conclusions In the final module we will explore some of the latest innovations in grinding and milling technology.


News & Events
Inbox provides Oracle License Renewal to D.G. Khan Cement Inbox Business Technologies provides Oracle License Renewal to D.G. Khan Cement. The services provided are mainly for Oracle E-Business Suite, Oracle Enterprise Asset Management, Oracle Enterprise Planning & Budgeting, Oracle HR Intelligence, Oracle Payroll, Oracle Time & Labor, Oracle Advanced Benefits, and Discoverer Desktop Edition. This would enable the cement manufacturing company to continue running their current systems and processes smoothly. Being an Oracle Certified Partner, Inbox is authorized to provide Oracle products and services to customers in Pakistan. D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest cement-manufacturing unit in Pakistan with a production capacity of 7000 tons clinker per day. It has a countrywide distribution network and its products are preferred on projects of national repute both locally and internationally due to the unparallel and consistent quality.



The foreman holds a significant position in the organization of any company. He has responsibility for directing an important unit of the productive activities of the company. He constitutes the lat link in the chain of command because the line between management and workers is drawn just below the level of his position. Since the foreman is a part of management, he can speak and act in the name of the company. He is, in fact, “ the front line of management.” The foreman is sometimes given the title of supervisor or department head. In a large company, his immediate superior may be the general foreman, who would in turn report to a division chief. In a small company, he might report directly to the plant manager or the works manager.

The position of the foreman depends in part upon the type of organization adopted by the company. In many small businesses which provide few staff services by specialized departments, the company may be organized on the principle of the line. In such accompany the foreman holds a position similar to that of the foreman in the Midvale Steel Company when Taylor began his studies about the year 1880. In the line and staff organization, the foreman retains the sole responsibility for the activities of his department but has the assistance and cooperation of departments performing staff functions. Staff services are commonly provided in the organization of large companies, and most of the discussion in this chapter related to the position of the foreman in the line and staff organization. The work of the foreman will be considered under the following six heads: Responsibility for directing the work. Responsibility for employee relationships Responsibility for working conditions


Cooperation with others Maintaining channels of communication Handling worker complaints

Responsibility for directing the work
The foreman usually must assign men to their jobs for although the planning department is responsible for the over all scheduling of the work, the foreman may still be required to assign the tasks to the machine and the workers. If production is centrally controlled by a planning department, the foreman must see that production schedules are followed. He must see that machines and tools are properly used and that safety regulations are observed. He may be required to requisition the purchase of materials. He is responsible for good housekeeping, which means seeing that tools are returned to the tool room when they are no longer needed and that materials and completed work are moved to the next workplace. The foreman arranges for the disposition of defective or spoiled materials. In case of emergency, such as fire, accident, or machine breakage, he must take the necessary action to protect the workers and the interests of the company. In short the foreman is responsible for the smooth and orderly conduct of his department and for deeding down the costs of materials, labor, and expense. Because of the importance of the foreman in directing the work, he has been called “the key man in production”


Responsibility for Employee Relationships
The foreman requisitions help when it is needed. Although he is no longer required to interview and select workers, the newly employed worker must meet with his approval. When a worker is sent to his department for work, the foreman sees that he is properly instructed as to the requirements and maintains discipline during work hours. He sees that workers fill out their time tickets, and he approves payment for work done by signing the payroll sheets. He makes sure that specifications are followed and informs workers of changes in specifications. As a leader, the foreman aids in the training and developments of workers. The foreman can meet his responsibility for handling employee problems only if he has the support and commensurate of persons higher up the line. He should have authority commensurate with his responsibility, and he should know just what his authority is in various situations. In certain cases, he might have authority to issue a warning or to give a reprimand. In handling minor problems, he might be given authority to act without making any report to his superior; and in other cases, he might be authorized to act but required to make a report of the


circumstances. In serious cases, he might have no authority to act but would be expected to refer the matter to his superior for instructions or recommendations. Although the act and judgment of the foreman are most essential in dealing with personnel problems, his task is made somewhat easier if he is given proper assistance and also recognition by others easier if he is given proper assistance and also recognition by others in the management. Relatively insignificant privileges granted to him may help by indicating to employees that he is a part of management. Special recognition may be given the foreman by provision of a desk or office, exemption from the requirement for punching a time clock, payment by check delivered by messenger, listing in the company telephone directory, a separate mailbox for communications, and various other privileges.

Responsibility for Working Conditions
The foreman should deep inform concerning developments relating to the workplace, the conditions of work, and the job. As for the workplace, he must know the layout and arrangement, the preparation time required for a task, and the time required making necessary adjustments. He observes lighting, ventilation, and sanitary condition. If a worker has inadequate light or is exposed to dangerous or obnoxious gases, intense heat, or moisture, the foreman should be the first to observe the fact and to improve conditions or to report the matter. The requirements of the various jobs should be analyzed and compared by the foreman. Jobs may make excessive physical demands upon the worker because of the necessity for lifting, stooping, standing, or making monotonous motions. Some jobs are dirty, hard on clothes, noisy, dangerous, irritating because of delays and uncertainties, or otherwise disagreeable. Some jobs offer little or no chance for the development of the worker. The foreman should cooperate with the personnel division in the evaluation of jobs, the rating of worker, and the placement of new employees.


The foreman should be familiar with the qualifications of the worker and their fitness for the jobs to which they are assigned. He should know the extent of their training and experience, and he should see that workers are suited to the work they are doing. He may determine the adjustment of the worker to the jobs by observing the trend of his output, which may be declining, stable, or fluctuating in an erratic manner.

Cooperating with others
The foreman, as part of management, must carry out its policies, interpret them to the workers, and execute the orders received. Under democratic leadership, he is advised of impending changes and is permitted to express an opinion on a proposal affecting his department before it is adopted. He should keep his superiors informed of developments in his department, such as shortages of materials, defects in materials or equipment, imperfect work received form other departments, personnel problems, and difficulties of workers in meeting standards. He makes recommendations for changes, such as improvements in layout, lighting, or air conditioning. The foreman does not always find it easy to cooperate fully with other line officers. One difficulty is that since he is primarily concerned with getting the work done, he does not welcome changes which may interfere with the work immediately ahead. He is usually very close to the workers, for he has his desk on the floor of the shop. He spends part of his time at his desk, and much of the time he spends in supervision and in handling problems as they arise. Changes not only interfere with the work in hand but may also threaten the security of some of the workers. Consequently, the foremen may be indifferent to orders received from above even though he may put them into effect. In making his reports, the foreman usually would prefer not to inform his supervisors of difficulties which are due to his own mistakes and limitation. If he is


having difficulty in meeting a schedule, he may not report the situation unless he thinks his superiors may learn of it from some other source. He is anxious to submit favorable reports of quantity production and unit costs. However, if the reports this month are very good, an equally good report may be expected next month. Consequently, the foreman may be as interested as the worker in seeing that current performance sets a standard that can be comfortably met in the future. A standard that is too tight will not allow for delays or mistakes. Cooperation is made easier for the foreman if he is made to feel that he is really a part of management. He should be notified in advance of all changes affecting his department, and he should never be permitted to hear of them by the “grapevine”. He should receive proper credit for good performance in such matters as production, safety, and personnel relations. He should know company rules and regulations in order that he may know what position to take concerning problems which arise. All orders affecting his department should be transmitted through his office. In order that foreman may be properly informed, some companies hold weekly or monthly meetings of all members of management. At such meetings, current developments relating to the company are considered, such as changes in production plans, scheduling of work, maintenance, and expansion. The production records of various departments are graphically displayed on blackboards or bulletin boards, and the reasons for failure to meet schedules are considered. Mere mention of the cause may be sufficient to correct it. Members of management, from general manager to foreman, may be permitted to present a problem in which others may be interested. Meetings of this kind serve not only to keep all members of management informed but also to build up the self respect and morale of the foremen. The staff departments with which the foreman establishes regular contacts include maintenance, standards and methods, engineering, safety, employment,


inspection, planning, cost accounting, and stores. He may request the services of the maintenance department when he believes a machine needs repairs or adjustment. The standards and methods department sets the standards of performance for each task. The foreman may call its representative to re-examine any standard which he believes to be too tight or too loose. If a worker has difficulty in meeting the quotas set, or if he can meet the quota too easily, the foreman may ask that another study of the task be made. However, the foreman may not report that a standard is loose; because of his nearness to the worker, he may prefer that all standards be such that they are easily met. If the workers meet the standards, they will not complain. If they cannot meet them, they may cause trouble for the foreman by making a complaint. Moreover, if the standards are loose, production may be maintained on days when things do not go just right. Loose standards may provide the slack to compensate for delays in production without the necessity for detailed reports of difficulties. The engineering department investigates the possibilities of improvements in layout and rearrangement of equipment or in the design of the product. If a worker has difficulty in turning out a part according to specifications, or if he finds that a part does not function properly when the product is assembled, he notifies his foreman, who in turn may notify the engineering department. However, the calling of the engineering department may be interpreted as a confession of incompetency on the part of the foreman who would ordinarily be expected to instruct and assist worker in meeting specifications. Usually, the engineering department must find out for itself the weak spots in the layout, the arrangement of machines, and the design of the product. An objective of top management in its contacts with foremen is to make them more cognizant to the services rendered by staff departments and more willing to make use of them. Although the foreman is expected to cooperate with various line and staff people in carrying out company plans and programs, he may not actively participate in the formulation of the plans and the development he has too many other duties


and that his point of view may be too limited. Furthermore, the company organization may include many foremen, and the authority for company policies and programs is necessarily of the foreman and explains the name of “marginal man” which is sometimes given to him.

Maintaining Channels of Communication:
The foreman is an important link in the channel of communication to and from employees. Most of the communications between foremen and workers are oral, and the writing of numerous memorandums indicates a lack of personal contacts and of personal understanding. For a new employee, communication from the foreman begins with an explanation of departmental regulation, introduction to fellow employees, assignment to a job, and explanation of what is expected. Later communications concern assignments to new work and the discussion of


specific problems or developments, such as needed changes in working conditions, investigation of accidents, and assignment to new work. The worker is expected to communicate to the foreman a report of any difficulty he may have in maintaining quality standards, meeting production schedules, or understanding instructions of work to be done. He also reports to the foreman concerning any absences. The foreman keeps his own superior informed of developments within the department. If the foreman is properly to perform his function in communication, he must receive adequate communications from his own superior at the next level in the chain of command. Information transmitted to him might include a foreman’s manual on company policies, copies of the union contract, copies of the minutes of grievance committee meetings and decisions rendered, and executive orders. Information on current developments and proposed changes may be transmitted through daily contacts, interviews, and discussion meetings. Communications may consist of information, advice, or specific instructions. The foreman is interested in having all communications to employees in his department transmitted by him. He is even more concerned with the reports to higher levels in the organization pertaining to his department. However, when a representative of a staff department comes into a line department, the foreman may not control the information which is sent to his superior. In such a case the line is short-circuited as far as the foreman is concerned. Because of his peculiar situation in matters of communication, the foreman has sometimes been described as “the man who is caught in the middle.”

Handling Worker Complaints


A complaint is defined as a spoken or written dissatisfaction brought to the attention of a management or union representative. A grievance is a complaint which has not been properly handled by the management or possibly by the union officials. It may have been ignored or dismissed without due consideration. Complaints and grievances may concern wages, supervision, seniority rights, promotions, and general working conditions. The foreman should investigate the facts concerning all complaints which come to him. If he finds that the complaint is justified, he may be able to correct the difficulty. He may find it necessary to inquire what the policy of the company is concerning the question at issue. If he is not informed as to company policy, he may communicate with the general foreman, who may consult the division chief to determine the policy; or he may have to ask for a ruling in case no policy has been established. In some cases the employee may make the complaint to the union steward. The steward is an employee of the company who has a regular job but represents the union in dealing with the foreman. Cases which are referred to the steward are usually settled by a conference between the foreman and the steward. If an agreement cannot be reached, the foreman may refer the question to the general foreman. The case may be carried to the division chief and works manager. The shop steward will also refer the question to his superior officer in the union organization, who may be the business agent or the chief steward. Above the chief steward are the executive committee and the president of the union. The handling of worker complaints by dealing with the union steward may create a situation that calls for much tact on the part of the foreman because the person who holds the position of steward is also a worker. As a worker, he is a subordinate of the foreman in the ordinary man-boss relationship, and as a steward he is the equal of the foreman because he represents the union. The steward may have received much training from the union in the handling of complaints and grievances, and he may be more familiar with some aspects of


labor regulations and procedures than the foreman, although the company should seek to avoid this situation by seeing that the foreman is properly informed. In any event, the foreman is required to change his method of dealing with a subordinate so that person changes his role and becomes a spokesman for the union. If a grievance is to be carried to the higher levels in the organization the foreman should ask that the worker prepares and sign a written statement. This plan has several advantages. If a worker must sign a written statement, he is likely to tone down the charges and to state the facts correctly. In many cases tee result is that the employee looks at the matter in a somewhat different light, and he may decide to withdraw the complaint entirely. Many people hesitate to commit themselves to written statements which may later be shown to be incorrect. A second advantage is that both the foreman and his boss can see precisely the question at issue. The difference between the foreman and the worker can then be reduced to a question of fact or of principle. A third advantage is that the keeping of records by the foreman is facilitated. The next time the same issue is raised, he will know the policy of the company relating to the question. The decision many also be communicated to other foremen for their information. If possible, the foreman should not permit a complaint to become a grievance. The fact that a worker thinks he has a grievance is in itself an undesirable condition. A grievance may indicate a lack of attention to the difficulties of the worker, or it may indicate an inability of the foreman to show the worker wherein his attitude is wrong. Because of his close contact with employees, the foreman has been called “the front-line personnel man.”


Compensation of Foreman.
Foremen are usually paid a weekly or monthly salary. This method of payment has a basic appeal provided the salary is sufficiently high to provide a satisfactory differential above the pay of the people whom he supervises. A difficulty may arise if workers put in sufficient overtime to enable them to earn as much as the foreman’s salary, or more. A pay raise for workers frequently requires an increase in foremen’s salaries to provide a satisfactory margin of difference. Some companies provide for incentive pay for supervisors in addition to the basic salary. Some such plans base the extra compensation upon the performance of workers in the department. The bonus may depend upon the number of workers who meet production standards or some other measure of their efficiency, attendance, labor turnover, or safety record. According to another plan, the foreman’s bonus depends upon his ability to keep down controllable costs, which are those elements of expenses or costs that he authorizes or controls. Before such a plan can be effective, the authority of the foreman should be carefully defined, and the basic salary paid to him should be fair. The amount of the bonus


should be large enough to build up his interest, and the details of the plan should not be too complicated.

In time of business expansion when new plants are being put into operation or new shifts are being added, special attention should be given to the problems of the training of supervisors. At other times, the normal rate of turnover may require special training programs for the purpose of maintaining loyalty and enthusiasm and of keeping foremen abreast of developments in company programs, technology, and other problems.

Training in Management
A person has a difficult adjustment to make when he ceases to be a worker and becomes a part of management. He may be afraid of making mistakes and therefore may be hesitant to take action; or in his anxiety to prove himself worthy of his new position, he may act hastily. If he asks for assistance, he may be accused of in-competence. If he does not ask for assistance, he may be accused of overconfidence. At this time he is particularly in need of assistance and support from top management. The problems of the foreman are further increased by federal regulation of labor relations which make the employer liable for such gets as enforcement of arbitrary rules, discrimination, or firing workers without cause. Some training courses are designed to facilitate the entry of foreman into the ranks of management. The course for new foremen is given after promotion rather than before. If the program were given before promotion, the man would have to return to his job to wait for an opening. In the meantime, he would be subject to the jealousy and suspicion of the other workers. The man would also lack motivation because he might never be made a foreman.


Training in Company Organization
One type of training program for foremen is intended to give them an understanding of the entire organization of the company. It may begin with a series of meetings, lectures, and conferences with top management. Each of the executives may discuss his work in relation to the work of the foremen. The foremen may be conducted through the various offices and departments of the plant where they are told of the work of each one. In conferences of the president, he sales manger, the controller, and other officers and also with the heads of such departments as employment, engineering, purchases, stores, and maintenance, the foremen are made to see that the company is an assemblage not only of machines but also of persons. The relation of the foremen to each of the various executives of the company is indicated. The purpose is to show that top management and the staff departments perform necessary services. The training program may be designed to foster loyalty to the company and to the system of private enterprise. One company lists the following objectives of its foremen’s training. The objectives indicate something of the content of the course. Give a better understanding of our business system. Instill a greater appreciation of the importance of good management and a conception of the problems of management in maintaining a sound and solvent business with steady employment, good wages, and quality products at competitive prices. Show why business must earn a profit and why this is important to the worker. Show why increased wages cannot come from profits but only form increased production. Point out that our economic system has resulted in a higher level of well-being and opportunity to more people than any other system.












Training in Human Relations
Another type of foremen’s training may be oriented towards the worker and methods of gaining his co-operation. As Gantt said many years ago, the age of drive has give way to the age of leadership, and the principal leader is the foreman who is close to the workers and the workplace. A program of leadership for foremen is designed to develop an understanding of worker motivation. It concerns the basic desires of people, such as the desire to become a part of the enterprise, to gain the respect of one’s associates, to receive fair treatment, to feel secure financially, and to be protected from bodily injury. A program of training of this kind would also show the foremen what happens if the basic needs of the worker are met. It would include a discussion of proper use of rewards and penalties. It is intended to inform the foreman as to the proper methods of supervision and to induce them to want to gain worker loyalty and co-operation. Its ultimate objective is the maximum efficiency of the work force. The methods of training vary somewhat with the purposes. The program may include conferences and discussions with top management, conferences among the foremen for the discussion of their problems, and classes with a fixed program of study. A continuous program may consist of meetings for the presentation of new bulletins, policy announcements, and achievements or problems of various departments. Visual aids, such a charts, drawings, diagrams, and motion pictures or slides, have been found to be helpful. Demonstrations, such as new work methods or safety devices, are also effective.



During World War II the unionization of foremen became a pressing problem. Top management feels that a foremen’s union is consistent with principles of the organization ad management of private enterprise. A union of foremen means that management is unionized because the foremen are a part of management. While practice varies between industries and unions, the general rule in the mass-production industries has been that foremen and supervisors have not been permitted to become members of labor unions. In a few industries, unions have permitted foremen to become members. Such an arrangement exists in the building trades, parts of the metal trades, and the teamsters’ union. A few longestablished unions confine their membership to foremen. Some of the foremen’s unions are affiliated with the American Federation of Labor or the Congress of Industrial Organizations, and some are independent.



In DG KHAN CEMENT, the foreman holds a significant position. He has the responsibilities for directing an important unit of the productive activities of the company. Foreman is part of management; he can speak and act in the name of company. The DG KHAN CEMENT foreman has Effectively Communicating with Owners, With Workers, and With Office Personnel. He has a good Listening Skills, Dealing with Difficult People, Avoiding Harassment Charges, Coordinating with Other Trades, Working with Inspectors and Hiring & Firing Foreman has some major responsibilities like communicate with employees. DG KHAN CEMENT foreman communicate with their employees and tells them how to make and control the work. The foreman also manages the time of productivity and gives many benefits to their employees


In DG khan cement Roles and responsibilities of a supervisor
• Gauging expectations from your boss, peers and staff • Understanding the value you add to the ‘whole’

• Goal-setting skills
• Vision, goals, targets • Setting SMART goals • Differentiate the ‘Important’ from the ‘Urgent’


Procedure of supervising: Video Exercise
Inspiration and power of positive expectation

Psychometric Test
Identify your own ‘Supervisor Personality’ and build On your natural strengths • Delegating effectively • Overview of delegation steps • Common mistakes people make while Delegating

Directing and motivating others
• Motivation theories • What motivates your staff • Communication secrets that inspire and motivate

The Coach in you
• The three frontiers of coaching • Boss Vs. Coach • The coaching conversation


Giving honest and effective performance feedback
• Supportive vs. Corrective feedback • Employee reservations about appraisals • Appraisal interviews • Guarding against common biases

Communicating the positive message
• The ‘positive emphases’ • Principles of constructive communication

Interactive Exercise
Practicing constructive communication to ensure that message received was indeed the message sent

Building an effective team
• Elements of an effective team •Stages of team development


• Overcoming barriers to successful team development

Conflict resolution
• Why conflicts arise • Probing and questioning • Building consensus

Team Exercise
Fun activities you can use at work for teambuilding.

Case Study
Innovative ways to resolve conflicts for healthy work relationships • • • • Individual and group exercises Relevant self-discovering questionnaire Team activities


• • • •

Best practices Story-telling Job-related role-plays Video-based activities

acquiring the personal, interpersonal, technical, and administrative competencies required to be a successful supervisor and a desire to develop trust and respect of employees as well as the confidence of management



Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service. Product Designers conceptualize and evaluate ideas, making them tangible through products in a more systematic approach. The role of a product designer encompasses many characteristics of the marketing manager, product manager, industrial designer and design engineer

The term is sometimes confused with industrial design, which defines the field of a broader spectrum of design activities, such as service design, systems design, interaction design as well as product design. The role of the product designer combines art, science and technology to create tangible three-dimensional goods. This evolving role has been facilitated by digital tools that allow designers 157

to communicate, visualize and analyze ideas in a way that would have taken greater manpower in the past. Design, itself, is often difficult to define to non-designers because the meaning accepted by the design community is not one made of words. Instead, the definition is created as a result of acquiring a critical framework for the analysis and creation of artifacts. One of the many accepted (but intentionally unspecific) definitions of design originates from Carnegie Mellon's School of Design, "Design is the process of taking something from its existing state and moving it to a preferred state." This applies to new artifacts, whose existing state is undefined and previously created artifacts, whose state stands to be improved.

According to the (Chartered Society of Designers) design is a force that delivers innovation that in turn has exploited creativity. Their design framework known as the Design Genetic Matrix

determines a set of competences in 4 key genes

that are identified to define the make up of designers and communicate to a wide audience what they do. Within these genes the designer demonstrates the core competences of a designer and specific competences determine the designer as an 'industrial designer'. This is normally within the context of delivering innovation in the form of a three dimensional product that is produced in quantity. However the definition also extends to products that have been produced using an industrial process

Design is essentially an engineering function because it is closely related to manufacturing methods and cost. However, in product design the needs and desires of the consumer as determined by the market analysis are also important. The problem of design may arise in connection with the development of a new product. Annual products are usually introduced at fairs at showers. In most 158

industries continues improvement in the product is necessary if a manufacturer expects to assume or maintain leadership in the industry.

Industrial design


Industrial design is an applied art whereby the aesthetics and usability of massproduced products may be improved for marketability and production. The role of an Industrial Designer is to create and execute design solutions towards problems of form, usability, user ergonomics, engineering, marketing, brand development and sales. The term "industrial design" is often attributed to the designer Joseph Claude Sinel in 1919 (although he himself denied it in later interviews) but the discipline predates that by at least a decade. Its origins lay in the industrialization of consumer products. For instance the Deutscher Werkbund, founded in 1907 and a precursor to the Bauhaus, was a state-sponsored effort to integrate traditional crafts and industrial mass-production techniques, to put Germany on a competitive footing General Industrial Designers are a cross between an engineer and an artist. They study both function and form, and the connection between product and the user. They do not design the gears or motors that make machines move, or the circuits that control the movement, but they can affect technical aspects through usability design and form relationships. And usually, they partner with engineers and marketers, to identify and fulfill needs, wants and expectations.

Why design is important
Most authorities now agree that, in many industries, the importance of design has been grossly underestimated for many years. Good design not only makes products and services more attractive it makes them better at performing their task. Three different areas were improved by this redesign. • First, it looked better. OK, so an overhead projector is not the ultimate style icon, but nevertheless it did look better than the old version.


• •

Second, it was easier to use. The various features highlighted in the picture are all concerned with ease of use. Test out the product’s usability. Third, it was easier to make than the old product. The manufactured cost of the product was less than its predecessor.

These are the three dimensions, on which design can be judged,  Aesthetics – does it look better?  Usability – is it easier to use?  Produce ability – is it easier or cheaper to make? 

The stages of design
These stages are, • • • • • Concept generation Screening Preliminary design Evaluation and improvement Prototyping and final design. It is worth remembering however that not every product and service moves smoothly between these stages. In practice, the stages could be defined in different ways and the sequence may vary. Most importantly, there will almost certainly be recycling between the stages. So, for example, after the evaluation and improvement stage, it may be that the design must go right back to


reconsider the original concept. In fact, at any stage the design could be recycled back to a previous stage. However, do not dismiss these stages of design. Each of them, or something like them, will generally occur during the design activity. It is important to understand exactly what the product or service concept is. It is important to screen the various alternative design concepts using a broad evaluation technique such as the feasibility, acceptability, vulnerability model. Specifying the components in the package using the product structures and bill of materials shown in the chapter is also important. Improvement using techniques such as quality function deployment, value engineering and Taguchi methods must be understood. Finally, the impact of computer-aided design and virtual prototyping, etc. has transformed design in some industries.

Process design
Although the process of design may be considered 'creative', many analytical processes also take place. In fact, many industrial designers often use various design methodologies in their creative process. Some of the processes that are commonly used are user research, sketching, comparative product research, model making, prototyping and testing. These processes can be chronological, or as best defined by the designers and/or other team members. Industrial Designers often utilize 3D software, Computer-aided industrial design and CAD programs to move from concept to production. Product characteristics specified by the industrial designer may include the overall form of the object, the location of details with respect to one another, colors, texture, sounds, and aspects concerning the use of the product ergonomics. Additionally the industrial designer may specify aspects concerning the production process, choice of materials and the way the product is presented to the consumer at the point of sale. The use of industrial designers in a product development process may lead to added values by improved usability, lowered production costs and more appealing products. However, some classic industrial designs are considered as


much works of art as works of engineering: the iPod, the Jeep, the Fender Stratocaster, the Coke bottle, and the VW Beetle are frequently-cited examples. Industrial design also has a focus on technical concepts, products and processes. In addition to considering aesthetics, usability, and ergonomics, it can also encompass the engineering of objects, usefulness as well as usability, market placement, and other concerns such as seduction, psychology, desire, and the emotional attachment of the user to the object. These values and accompanying aspects on which industrial design is based can vary, both between different schools of thought and among practicing designers. Product design and industrial design can overlap into the fields of user interface design, information design and interaction design. Various schools of industrial design and/or product design may specialize in one of these aspects, ranging from pure art colleges (product styling) to mixed programs of engineering and design, to related disciplines like exhibit design and interior design, to schools where aesthetic design is almost completely subordinated to concerns of function and ergonomics of use. Also used to describe a technically competent product designer or industrial designer is the term Industrial Design Engineer. The Cyclone vacuum cleaner inventor James Dyson for example could be considered to be in this category. After identification of a priority market and generation of a set of initial ideas, the next task is to “design” the product. Consider design as the designation of the key benefits the product is to provide, the psychological positioning of these benefits versus competitive products, and the fulfillment of the product promises by physical features.

The design process can be viewed as being made up of a managerial and consumer component. The managerial sub process represents a categorization of the types of managerial decisions made in new product development. The


consumer response sub process represents a categorization of the steps' analysts proceed through as they study the market to help managers design new products.

Design Brief
The design brief is typically a statement of intent. I.e. "We will design and make a Formula One racing car". Although it states the problem, it isn't enough information with which to start designing.

Product Design Specification (PDS)
This is possibly the most important stage of the design process and yet one of the least understood stage. It is important that before you produce a 'solution' there is a true understanding of the actual problem. The PDS is a document listing the problem in detail. It is important to work with the customer and analyze the marketplace to produce a list of requirements necessary to produce a successful product. The designer should constantly refer back to this document to ensure designs are appropriate. To produce the PDS it is likely that you will have to research the problem and analyze competing products and all important points and discoveries should be included in your PDS.

Concept Design
Using the PDS as the basis, the designer attempts to produce an outline of a solution. A conceptual design is a usually an outline of key components and their arrangement with the details of the design left for a later stage. For example, a


concept design for a car might consist of a sketch showing a car with four wheels and the engine mounted at the front of the car. The exact details of the components such as the diameter of the wheels or the size of the engine are determined at the detail design stage. However, the degree of detail generated at the conceptual design stage will vary depending on the product being designed. It is important when designing a product that you not only consider the product design specification but you also consider the activities downstream of the design stage. Downstream activities typically are manufacture, sales, transportation etc. By considering these stages early, you can eliminate problems that may occur at these stages. This stage of the design involves drawing up a number of different viable concept designs which satisfy the requirements of the product outlined in the PDS and then evaluating them to decide on the most suitable to develop further. Hence, concept design can be seen as a two-stage process of concept generation and concept evaluation

Concept generation
Typically, designers capture their ideas by sketching them on paper. Annotation helps identify key points so that their ideas can be communicated with other members of the company. There are a number of techniques available to the designer to aid the development of new concepts. One of the most popular is brainstorming. This technique involves generating ideas, typically in small groups, by saying any idea that comes into your head no matter how silly it may seem. This usually sparks ideas from other team members. By the end of a brainstorming session there will be a list of ideas, most useless, but some may have the potential to be developed into a concept. Brainstorming works better if the members of the team have different areas of expertise.


Concept evaluation
Once a suitable number of concepts have been generated, it is necessary to choose the design most suitable for to fulfill the requirements set out in the PDS. The product design specification should be used as the basis of any decision being made. Ideally a multifunction design team should perform this task so that each concept can be evaluated from a number of angles or perspectives. The chosen concept will be developed in detail. One useful technique for evaluating concepts to decide on which one is the best is to use a technique called 'matrix evaluation' With matrix evaluation a table is produced listing important the features required from a product - usually this list is drawn up from the important features described in the product design specification. The products are listed across the table. The first concept is the benchmark concept. The quality of the other concepts are compared against the benchmark concept for the required features, to help identify if the concept is better, worse than, or is the same as the benchmark concept. The design with the most 'better than' is likely to be the best concept to develop further. Most people who use the matrix technique will assign points, rather than simple, better, worse, same, so that it is easier to identify which concepts are the best. It is also likely that some features of the design will be more important than others so a weighting is used.

Detail design
In this stage of the design process, the chosen concept design is designed in detailed with all the dimensions and specifications necessary to make the design specified on a detailed drawing of the design.


It may be necessary to produce prototypes to test ideas at this stage. The designer should also work closely with manufacture to ensure that the product can be made.

 A new product is both a physical product and a psychological positioning.  The design process is interactive.  Both prediction and understanding are necessary.  The level of analysis should be appropriate to the strategic decision.  The design process blends managerial judgment with qualitative and quantitative techniques.

Skills needed for development of a product design:
Product designers are equipped with the skills needed to bring products from conception to market. They should have the ability to manage design projects, and subcontract areas to other sectors of the design industry. Aesthetics is considered important in Product Design but designers also deal with important aspects including technology, ergonomics, usability, stress analysis and materials engineering. As with most of the design fields the idea for the design of a product arises from a need and has a use. It follows a certain method and can sometimes be attributed to more complex factors such as association and Telesis. Also used to describe a technically competent product designer or industrial designer is the term Industrial Design Engineer.



Product Analysis is the process of identifying, looking at or disassembling a product and identifying its main features. The aim is to understand more about a product and improve it in the future. Many factors influence the development of a product, some are listed below:

Service expected
Some products will be used in places where they can be repaired easily, while other products will be used under conditions that make repairs difficult or costly. Some products are intended to “last for a lifetime.” While others last for a short time. Some products are used under circumstances that require quick visual observations and interpretation.

Weight of the product
In many industries, manufacturers have been giving increased attention to the weight of the product. For some products, the advantage of lighter weight is largely a matter of convenience to the customer.

Color is important in relation to appearance. In high-style merchandise, changes are sometimes rapid.

Consumer ideas
Consumer ideas as to quality, style, color, and cost should be considered by the designer, for consumer ideas may be very different from those of the manufacturer.


The cost of the materials and labor required to manufacture the product. The price potential customers are prepared to pay for the product.

The product may be designed for human use. As result ergonomics (sizes etc...) will pay a major role

The availability of materials and the development of new, hitechnology materials will have an influence on the final design of a product.

The customer will have great influence over the way a product is designed and develops. As a product is designed it is normal for potential customers to be questioned about the type of product or design that they prefer. For example, when designing a mobile phone a design team will show potential customers several designs and make changes according to their likes and dislikes.

The product may have to display the company image. Most companies are proud of their public image. This may determine the color scheme applied to the product, the way it looks or even the materials that are used in its manufacture (i.e. recycled materials).



The shape and form of the product may determine the layout of circuits or mechanisms etc... Inside it. Products are often designed to look stylish. The style applied to the outside of a product can quite easily influence the technology inside it. Aesthetics can also alter the production / manufacturing techniques through which it is made.

The fashion of the time influences the design of products. Usually people want to buy up to date items not ones based on 'last years look'.

Some products are aimed at different cultures and countries. A product acceptable in one culture may be looked up one as offensive or less desirable in another. The use of colors and color schemes are a good example of this.

The number of functions a product has to perform will inevitably affect its design. Exactly what is the product going to do?

Many people (potential customers) are concerned about their environment and the damage to it caused by industrial production. When designing a product it may be wise to ensure that the materials can be recycled or the product itself can be manufactured from a large proportion of recycled material.


Development of design
The principal problems in relation to the development of design pertain to the inclusiveness of the design, the person or departments that are made responsible for design, and the timing of the work. The first such problem relates to specification, tolerance and limits.

By specification is meant the standard of quality for a part or for finished goods. Standards of quality may be set for dimensions. This specification should be established as a part of the work of design. They determine the nature of the manufacturing processes, and they are enforced through inspection. If the product is made in small quantities, specifications are not important but if it is in huge quantities, however the separate fitting of each part is not feasible. Although the specifications prescribes the size, a part may actually be larger or smaller than the prescribe dimension.

Design a staff function
In a large enterprise design is a specialized and technical engineering service performed by a staff department. The appeal is based upon price, quality, color, service and other features previously mentioned. In most manufacturing enterprises, product design is a department of the manufacturing division. In such an organization the design engineer reports to the director of the manufacturer.


The fact that design is a staff function means that the design engineer is not in a position to make changes in the product or to the direct the production of a new model. Decisions of this kind are made after recommendations by the design engineer and approval by the line officers possible by the head of the major division

Importance of timing
In planning for the development of a new design, management should allow also for the time required to devise and install the tools, machines, and equipment which will be necessary for production. If the sales of the product are related to a seasonal demand, the importance of timing is increased. The slow development of designs in such cases may cause the manufacturer to miss the market. Poor timing may be caused by the necessity for consulting various persons.

Two different products are produced at DGKCC namely Ordinary Portland Cement and Sulphate Resistant Cement. These products are marketed through two different brands:
• •

DG brand & Elephant brand Ordinary Portland Cement DG brand Sulphate Resistant Cement


Business Description
D.G. Khan Cement Company Limited. The Company's principal activities are to manufacture and distribute ordinary portland and sulphate resistant cement. As of 30-June-2008, it produced 4,142,764 metric tons of clinker and 4,227,767 metric tons of cement. The Company operates in Pakistan.

Sulphate Resistant Cement

Low C3A Content

Sulphate salts present in these soils combine with moisture and tri-calcium alumnate (C3A), one of the constituents of cement to form a compound known as Sulpho. Alumnate off Hydrated Calcium. This compound is highly expansive and gradually results in the destruction of concrete. However, if a C 3A content is very low, it is rendered inert and there is thus no reaction at all. British and Pakistani standards specify that in a Sulphate Resistant Cement, the C3A content must not exceed 3.5%. D.G Sulphate Resistant Cement has a much lower C 3A content, making the cement highly effective against Sulphate attacks.

Low Heat of Hydration


Heat of hydration is the heat generated on reaction of cement and water. This is undesirable because it produces a corresponding thermal expansion which deforms the concrete. Upon cooling down, there is a thermal contraction which causes the concrete to crack. D.G Sulphate Resistant Cement has a low heat of hydration making it EXTREMELY SUITABLE for BULK POURING and MASS CONCRETING. High Strength

As with any type of cement, strength is the fundamental property of Sulphate Resistant Cement D.G. Sulphate Resistant Cement achieves high strength through finer grinding and better particle distribution. In term of strength,, it not only exceeds by far the standards specified for Sulphate Resistant Cement, but also exceeds those of Ordinary Portland cement Low Alkali Content

Certain aggregates contain alkali sensitive ingredients, which under unfavorable conditions , can result in expansion leading to cracking of concrete. The presence of alkali also causes staining and other undesirable effects on concrete. American Standards specify that a cement can be termed low-alkali if its alkali content does not exceed 0.6% D.G. Sulphate Resistant Cement has an alkali content below 0.6 and a unique distinction of being a Sulphate Resistance Cement that can also be classified as low - alkali cement.

Ordinary Portland cement


Exceptional Strength

At DGKCC the chemical composition and grinding fineness are closely monitored to ensure that both Pakistani and British standards are surpassed and our customers get cement of exceptional strength.

Ideal Setting Time

In order to allow sufficient time for application, cement must have a quick initial settings time. However once in place, the final settings should not take too long. At DGKCC ideal initial and final setting times are maintained. MATERIALS AND ENERGY The following raw material is required in the production process 1. Lime stone: This raw material is company owned and is extracted from the near by mountains Limestone has the highest composition in the cement product. 75% to 80% of the cement constitutes of limestone 2. Clay: Clay is another natural resource. This raw material is also company owned. 15% to 20% of cement composition comprises of clay 3. Iron Ore: Iron Ore is the only resource that is bought from contractors. Iron Ore is added in small quantities and it helps to strengthen the cement.


4. Gypsum: Gypsum acts as a retarding agent. It slows down the hardening process which in turn gives the constructor enough time to use it. 5. Furnace oil: It is used mainly for power generation.

With the increase of furnace oil prices the company adopted coal as a more cost efficient and environmentally friendly fuel for kiln firing. Today the management is exploring possibilities of alternative and cheaper fuel such as waste firing. The process (discussed later) is such that it ensures that excess stock isn’t left and on the other hand enough stock is present so that the production process is not hindered.

Manufacturing of cement
There are four key steps in the manufacturing of cement:

First, raw materials like limestone, sand and clay are quarried from land near a cement plant. Once the materials are blended and ground together, they are heated in a kiln, in which temperatures reach 1,870 degrees Centigrade (3,400 Fahrenheit). The process forms clinker, small round balls of material, which are cooled and ground together with a small amount of gypsum. The resulting material is portland cement Cement is manufactured from 75-80% limestone and 20-25% Clay, or from raw materials containing the same chemical constituents. The raw materials are quarried and crushed, after which they are mixed in the correct proportions. The raw mix is then ground in a raw mill and subsequently burned in a rotary kiln at a temperature around 1450 °C. The raw materials undergo a number of complex


chemical reactions in the burning phase and leave the kiln as cement clinker, consisting of agglomerate of clinker minerals. Finally the clinker ground to a fine powder cement in a Cement Mill, together with 4-6% gypsum. The gypsum serves to retard the setting time of the cement, which would otherwise harden, immediate with the Addition of Water . DG KHAN CEMENT is using dry process to manufacture cement in the dry process the raw mix is ground totally in dry condition, and it leaves the mill and enters the kiln as a powder called raw meal. In order to dry all moisture from the raw materials the raw mill is air swept with hot kiln gases or with hot air from an auxialaryfurnanace DG KHAN CEMENT produces only Portland cement.

Quarrying and crushing
The primary raw material for cement manufacture is calcium carbonate or limestone. This is obtained from the quarry where, after the removal of overburden, the rock is blasted, loaded into trucks and transported to the crusher. A multistage crushing process reduces the rock to stone less than 25 mm in diameter. Most modern cement factories are located close to a source of limestone as about 1.5 tons of limestone is needed to produce one ton of cement.


Blending and storage The crushed rock is stored in stockpiles where, by a carefully controlled process of stacking and reclaiming across the stockpile, blending takes place and a uniform quality of raw material is achieved. Systematic sampling and laboratory testing monitor this process. The other raw materials, normally shale, iron ore and sand, are also stored in stockpiles.

Raw milling and homogenization

Carefully measured quantities of the various raw materials are fed, via raw mill feed silos, to mills where steel balls grind the material to a fine powder called raw meal. Homogenizing silos are used to store the meal where it is mixed thoroughly


to ensure that the kiln feed is uniform, a prerequisite for the efficient functioning of the kiln and for good quality clinker.

The most critical step in the manufacturing process takes place in the huge rotary kilns. Raw meal is fed into one end of the kiln, either directly or via a preheater system, and pulverized coal is burnt at the other end. The raw meal slowly cascades down the inclined kiln towards the heat and reaches a temperature of about 1 450 °C in the burning zone where a process called clinkering occurs. The nodules of clinker drop into coolers and are taken away by conveyors to the clinker storage silos. The gas leaving the kiln is cleaned by electrostatic precipitators prior to discharge into the atmosphere.

Cement milling
The cement mills use steel balls of various sizes to grind the clinker, along with a small quantity of gypsum to a fine powder, which is then called cement. Without


gypsum, cement would flash set when water is added and gypsum is therefore required to control setting times. The finished cement is stored in silos where further blending ensures consistency.

Quality assurance Extensive sampling and testing during the manufacturing process ensures the consistency and quality of the end product. Testing takes place at the stages of the manufacturing process. Cement despatch Cement is despatched either in bulk or packed in 50 kg bags and distributed from the factory in rail trucks or road vehicles. The 50kg bags are either packed


directly onto trucks or can be palletised. The pallets can be covered by a layer of plastic to offer further protection from the elements.



Simplification is the process of reduction of the large number of design, sizes, colors, or other variations of the product and selects more profitable items which are greater in demand.

Standardization is the establishment of uniform sizes, dimensions, or other properties and is technical in nature rather than commercial.


Simplification may precede or follow standardization, or the two programs may be accomplished simultaneously. In other words the unprofitable lines of the product may be eliminated by a program of simplification; and standards may be established for the lines that are to be continued. Or the various sizes and styles may be standardized, and the reduction in product line may be accomplished later. However; attention to either problem usually shows the need for the other and the two programs are preferably conducted at the same time. Simplification may be the work of one company or of all the companies in an industry. Standardization is usually a co-operative activity embracing an entire industry.

The Need for Simplification & Standardization
A program of simplification and standardization is usually initiated because the product line has become overextended through the development of an excessive number of unrelated products or the production of too many colors, size, or other varieties. This situation may arise because management did not give sufficient attention to the product line when new varieties were added or because conditions have changed since the varieties were first placed upon the market.

Standardization is the process of developing and agreeing upon technical standards. A standard is a document that establishes uniform engineering or technical specifications, criteria, methods, processes, or practices. Some standards are mandatory while others are voluntary. Voluntary standards are available if one chooses to use them. Some are de facto standards, meaning a norm or requirement which has an informal but dominant status. Some standards


are de jure, meaning formal legal requirements. Formal standards organizations, such as the International Organization for Standardization (ISO) or the American National Standards Institute, are independent of the manufacturers of the goods for which they publish standards. The goals of standardization can be to help with independence of single suppliers (commoditization), compatibility, interoperability, safety, repeatability, or quality. Usage Standardization is the process of establishing a technical standard, which could be a standard specification, standard test method, standard definition, standard procedure (or practice), etc. The existence of a published standard does not necessarily imply that it is useful or correct. Just because an item is stamped with a standard number does not, by itself, indicate that the item is fit for any particular use. The people who use the item or service (engineers, trade unions, etc) or specify it (building codes, government, industry, etc) have the responsibility to consider the available standards, specify the correct one, enforce compliance, and use the item correctly. Validation of suitability is necessary. In the context of social criticism and social sciences, standardization often means the process of establishing standards of various kinds and improving efficiency to handle people, their interactions, cases, and so forth. Examples include formalization of judicial procedure in court, and establishing uniform criteria for diagnosing mental disease. Standardization in this sense is often discussed along with (or synonymously to) such large-scale social changes as modernization, bureaucratization, homogenization, and centralization of society. In the context of business information exchanges, standardization refers to the process of developing data exchange standards for specific business processes


using specific syntaxes. These standards are usually developed in voluntary consensus standards bodies.


Which means they are followed by Informal convention or dominant usage.
• •

legally binding contracts, laws or regulations. Voluntary standards which are published and available for people to

consider for use In general, each country or economy has a single recognized National Standards Body (NSB). Examples include ABNT, ANSI, AENOR, BSI, DGN, DIN, IRAM, JISC, KATS, SABS, SAC, SCC, SIS, SNZ. An NSB is likely the sole member from that economy in ISO. In a military context, standardization can be defined as: The development and implementation of concepts, doctrines, procedures and designs to achieve and maintain the required levels of compatibility, interchangeability or commonality in the operational, procedural, material, technical and administrative fields to attain interoperability.

Why Standardize?
1. 2. 3. 4. 5. 6. 7. 8. cost certainty Process certainty Schedule certainty performance certainty Deduce sign Standardization Refines & optimizes designs Minimizes change order risk Guaranteed Efficiency & Value


Benefits of Standardization

For all: • • Optimized solution to repetitive technical problems Protect safety, health and property from hazards due to fire, explosion, chemicals, radiation, • • • • electricity Ensures interchangeability and interoperability Basis for procurement and assessment of quality Improvement guidance to organizations (Quality management systems, Environmental • • • management systems) Common terminology facilitating communication Contribution to sustainability

For consumers: • • • • • • • safer, healthier, more environmentally sound products and services products with improved quality and reliability compatibility within and between products greater consistency in the delivery of services improved choice and access to goods and services lower costs better product or service information

For developing countries: 188

• • • • • • •

Source of up-to-date technical information establishment of national standards as possible basis of regulations selection of technologies and equipment adapting products for export competitiveness of producers safeguarding national interests for imports retaining access to export markets

For industry: • • Strategic significance Savings made through early application of standards in anticipation of adoption in • • • • regulations Support of economic integration of region Greater choice of markets and suppliers Opportunities for cooperation

Competitive advantage: • Early (insider) knowledge arising from participation gives a competitive edge • • Direct involvement equates to opportunity to influence content Gained through international adoption of (already known) national standards • Heterogeneous mix of committee participants provides a good forum for trends identification


Global markets: • • • • • 1/3 of businesses use national standards in support of international trade Trading costs reduced Contractual agreements simplified Technical barriers to trade reduced Global development contributes to reducing fragmentation of markets

Cost reduction: • Significantly lower transaction costs (information gathering, negotiating, market positioning, etc.) • Create global markets with the fewest differences in requirements from nation to nation • Production costs reduced (more through company standards than industrywide) • Improved interdepartmental communication very valuable.

Supplier-client relationships & strategic alliances: • • • • Effect of standards higher on supplier than client Dependence on single supplier reduced Increased competition amongst suppliers Increased confidence in quality of suppliers providing products and services associated with • • standards Coding of knowledge through standards provides an environment that


facilitates cooperation, • • particularly at the same position in the value chain Private (e.g. consortia), standards have potential for greatest support of co-operation

Research and development & innovation: • • Networking opportunities, supports dissemination of ideas Insights obtained can lead to less risk of investing in inappropriate technology • Sharing of research through standards development beneficial to costs and speed of • • • • • development Threat to innovation more perceived than actual risk More new standards are published in innovative sectors than elsewhere Indicators are that standards are keeping abreast of change New procedures and document types (PAS and IWA) have been developed to enhance responsiveness of standardization system

Product safety & liability: • • Contribute to safety, particularly when used in association with regulations Standards considered to reflect ‘state-of-the-art’, so use viewed as a means to demonstrate • • • ‘due-care’ and assist in liability management Inclusion in standards increases awareness of importance of safety Product safety priority issue with consumers.


Manufacturing Standardization
1. Reduces site construction risk (weather, remote location access) 2. Ensures consistent, skilled labor (skilled labor availability) 3. Promotes quality control (ISO 9001:2000 certification) 4. Shortens project schedule (modular designs) 5. Operation Standardization: 6. NPV is an efficiency measure 7. Guarantee operating efficiency at commissioning: (single source control)

Operation Standardization
1. NPV is an efficiency measure 2. Guarantee operating efficiency at commissioning: (single source control)

Sustainability standards
• • • • Standards are designed to address a wide variety of needs and goals Food safety criteria are increasingly combined with requirements for the promotion of environmentally-sustainable production methods. Producers and businesses’ adjustments needed for compliance have many cost implications. Compliance offer opportunities for benefits in terms of reduction in undesirable effects to the environment and improvements in health effects on workers.



The increasing number of Standards and the demands they place on others in the supply chain are posing big challenges to actors in developing economies.

• • • • • • • •

These challenges are associated with: ; Understanding the standards that are developed with the intention of meeting new consumer demands; and The decision to comply with any of the standards. costs related directly to the implementation of ‘good practices Preservation and protection of river reserves:; forgone revenue from land areas that are left natural maintenance of a special nursery for indigenous trees irrigation water and technology/equipment that ensure efficient use of water and reduced soil erosion – for example, use of spot irrigation instead of surface irrigation;

• •

waste disposal, maintenance of stores

Set standards and perform well
You need to show that your organization: • • • • sets clear service and performance standards in consulting with customers; meets those standards; monitors and reviews performance against standards and publishes the results; and designs, puts into practice and monitors standards with as little unnecessary paperwork and administration as possible


International standards
International standards are standards developed by international standards organizations. International standards are available for consideration and use, worldwide. International standards may be used either by direct application or by a process of modifying an international standard to suit local conditions. The adoption of international standards results in the creation of equivalent, national standards that are substantially the same as international standards in technical content, but may have (i) editorial differences as to appearance, use of symbols and measurement units, substitution of a point for a comma as the decimal marker, and (ii) differences resulting from conflicts in governmental regulations or industry-specific requirements caused by fundamental climatic, geographical, technological, or infrastructural factors, or the stringency of safety requirements that a given standard authority considers appropriate. International standards is one way of overcoming technical barriers in international commerce caused by differences among technical regulations and standards developed independently and separately by each nation, national standards organization, or company. Technical barriers arise when different groups come together, each with a large user base, doing some well established thing that between them is mutually incompatible. Establishing international standards is one way of preventing or overcoming this problem.

International Organization for Standardization
The International Organization for Standardization (Organization international de normalization), widely known as ISO (pronounced), is an international-standardsetting body composed of representatives from various national standards organizations. Founded on 23 February 1947, the organization promulgates


worldwide proprietary industrial and commercial standards. It is headquartered in Geneva, Switzerland.[1] While ISO defines itself as a non-governmental organization, its ability to set standards that often become law, either through treaties or national standards, makes it more powerful than most nongovernmental organizations[. In practice, ISO acts as a consortium with strong links to governments ISO has developed over 17500 International Standards on a variety of subjects and some 1100 new ISO standards are published every year. The full range of technical fields can be seen from the listing International Standards. Users can browse that listing to find bibliographic information on each standard and, in many cases, a brief abstract. The online ISO Standards listing integrates both the ISO Catalogue of published standards and the ISO Technical program of standards under development.

ISO 9000 and 14000
This a section concise


provides overview

of ISO's best known management system standards and their impact on the world.

ISO 9000 and ISO 14000 families are among ISO's best known standards ever. ISO 9001:2000 and ISO 14001: 2004 are implemented by over a million organizations in 175 countries.


ISO 9000 family The ISO 9000 family addresses "Quality management".

This means what the organization does to fulfill:
 the

customer's quality requirements, and regulatory requirements, while aiming to customer satisfaction, and continual improvement of its performance in pursuit of these

 applicable  enhance  Achieve


ISO 14000 family The ISO 14000 family addresses "Environmental management". This means what the organization does to:
 minimize

harmful effects on the environment caused by its activities, and

 Achieve

continual improvement of its environmental performance.

ISO 9000 essentials


This section concisely describes the essential features of the ISO 9000 family. The ISO 9000 family of standards represents an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. ISO 9001:2008 is the standard that provides a set of standardized requirements for a quality management system, regardless of what the user organization does, its size, or whether it is in the private, or public sector. It is the only standard in the family against which organizations can be certified – although certification is not a compulsory requirement of the standard. The other standards in the family cover specific aspects such as fundamentals and vocabulary, performance improvements, documentation, training, and financial and economic aspects.

Why an organization should implement ISO 9001:2008
Without satisfied customers, an organization is in peril! To keep customers satisfied, the organization needs to meet their requirements. The ISO 9001:2008 standard provides a tried and tested framework for taking a systematic approach to managing the organization's processes so that they consistently turn out product that satisfies customers' expectations.

How the ISO 9001:2008 model works
The requirements for a quality system have been standardized - but many organizations like to think of themselves as unique. So how does ISO 9001:2008 allow for the diversity of say, on the one hand, a "Mr. and Mrs." enterprise, and on the other, to a multinational manufacturing company












administration? The answer is that ISO 9001:2008 lays down what requirements your quality system must meet, but does not dictate how they should be met in any particular organization. This leaves great scope and flexibility for implementation in different business sectors and business cultures, as well as in different national cultures.

The standard requires the organization itself to audit its ISO 9001:2008-based quality system to verify that it is managing its processes effectively - or, to put it another way, to check that it is fully in control of its activities. 1. In addition, the organization may invite its clients to audit the quality system in order to give them confidence that the organization is capable of delivering products or services that will meet their requirements. 2. Lastly, the organization may engage the services of an independent quality system certification body to obtain an ISO 9001:2008 certificate of conformity. This last option has proved extremely popular in the marketplace because of the perceived credibility of an independent assessment. The organization may thus avoid multiple audits by its clients, or reduce the frequency or duration of client audits. The certificate can also serve as a business reference between the organization and potential clients, especially when supplier and client are new to each other, or far removed geographically, as in an export context.

This section explains how ISO management system standards put stateof-the-art practices within the reach of all organization.


In a very small organization, there may be no "system", just "our way of doing things", and "our way" is probably not written down, but all in the head of the manager or owner. The larger the organization, and the more people involved, the more the likelihood that there are written procedures, instructions, forms or records. These help ensure that everyone is not just "doing his or her own thing", and that the organization goes about its business in an orderly and structured way. This means that time, money and other resources are utilized efficiently. To be really efficient and effective, the organization can manage its way of doing things by systemizing it. This ensures that nothing important is left out and that everyone is clear about who is responsible for doing what, when, how, why and where. Large organizations, or ones with complicated processes, could not function well without management systems. Companies in such fields as aerospace, automobiles, defense, or health care devices have been operating management systems for years. ISO's management system standards make this good management practice available to organizations of all sizes, in all sectors, everywhere in the world.

ISO 14000 essentials
This section concisely describes the essential features of the ISO 14000 family. The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO


14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines. The other standards and guidelines in the family address specific environmental aspects, including: labeling, performance evaluation, life cycle analysis, communication and auditing.

An ISO 14001:2004-based EMS
An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to:
 identify

and control the environmental impact of its activities, products or its environmental performance continually, and to a systematic approach to setting environmental objectives

services, and to
 improve  Implement

and targets, to achieving these and to demonstrating that they have been achieved.

How it works
ISO 14001:2004 does not specify levels of environmental performance. If it specified levels of environmental performance, they would have to be specific to each business activity and this would require a specific EMS standard for each business. That is not the intention. ISO has many other standards dealing with specific environmental issues. The intention of ISO 14001:2004 is to provide a framework for a holistic, strategic approach to the organization's environmental policy, plans and actions.


ISO 14001:2004 gives the generic requirements for an environmental management system. The underlying philosophy is that whatever the organization's activity, the requirements of an effective EMS are the same. This has the effect of establishing a common reference for communicating about environmental management issues between organizations and their customers, regulators, the public and other stakeholders. Because ISO 14001:2004 does not lay down levels of environmental performance, the standard can to be implemented by a wide variety of organizations, whatever their current level of environmental maturity. However, a commitment to compliance with applicable environmental legislation and regulations is required, along with a commitment to continual improvement – for which the EMS provides the framework.

The EMS standards
ISO 14004:2004 provides guidelines on the elements of an environmental management system and its implementation, and discusses principal issues involved. ISO 14001:2004 specifies the requirements for such an environmental management system. Fulfilling these requirements demands objective evidence which can be audited to demonstrate that the environmental management system is operating effectively in conformity to the standard.

Business benefits of ISO 14000

This section identifies typical benefits for organizations of implementing ISO 14000 standards. Most managers will try to avoid pollution that could cost the company a fine for infringing environmental legislation. But better managers will agree that doing only just enough to keep the company out of trouble with 201

government inspectors is a rather weak and reactive approach to business in today's environment-conscious world. The ISO 14000 standards are practical tools for the manager who is not satisfied with mere compliance with legislation – which may be perceived as a cost of doing business. They are for the proactive manager with the vision to understand that implementing a strategic approach can bring return on investment in environment-related measures. The systematic ISO 14001:2004 approach requires the organization to take a hard look at all areas where its activities have an environmental impact. And it can lead to benefits like the following:
 reduced  savings  lower

cost of waste management in consumption of energy and materials corporate image among regulators, customers and the public for continual improvement of environmental performance.

distribution costs

 improved

 Framework

The manager who is "too busy managing the business" to listen to good sense about environmental management could actually be costing the business, instead of achieving benefits like those above .

A program of Standardization
Although standardization may be the work of one company, the program is usually developed by most of the companies in an industry with the assistance of the national bureau of standards. The standards that may be developed can be classified into two major categories


• •

Industrial standards Commercial standards

Industrial Standards Which are of primary concern for consumers who will purchase and use the product? An engineering or industrial standard is a precise description or definition of a product, a part, a raw material, or a manufacturing process which has been established by one company or by a group of companies in an industry. Some standards are national in scope, and some are international. The standards are established by agreement and are made effective by voluntary compliance. Several types of industrial standards have been adopted. One type includes the nomenclature or the technical terms that are used in specifications contracts, catalogues or literature. The nomenclature extends to abbreviations, letter symbols for chemical composition, graphic symbols, and pictographs used in drawings or diagrams. The standardization of nomenclature permits a buyer and a seller to execute a concise contract of purchase and sale with a minimum of misunderstanding and confusion. Another type of standard pertains to the dimensions that are necessary to secure the interchangeability of parts and supplies and the proper functioning of the product. The agreement as to dimensions and sizes may also make provisions for the concentration of production upon an optimum number of types, sizes, colors, or grades of products .The other than those for which standards have been established. Standards may also designate the properties or qualities of bulk materials and supplies in order that the purchaser may be assured of the grade of product he desires. Other industrial standards provide for the rating of machinery and equipment on the basis of performance, durability, variances in the product turned out by machine, power consumption, horsepower or other such quality.


Safety standard provide for the safety of workers in the use of machines and equipment. These standards would include guards for grinding wheels, gears, belts and other moving parts, warning signals by means of lights o other devices, color schemes for safety purposes, protection against gases and fumes etc Commercial standards A standard of commerce, which is sometimes called a” consumer standard” is designed to protect the purchaser or ultimate consumer as well as the manufacturer. It is a measure of the quality, performance, dimensional characteristics or other properties of a product destined for personal use by consumers. It covers terminology grades, sizes and use characteristics of manufacture products.

DG khan standards of manufacturing for cement
They are following the standards of ISO 9001:2000


They are also following the ISO standards of 4001:2004



Simplification of product
Simplification may be effected be a single company acting on its own initiative by all of the companies in an industry through the offices of the trade association or through the cooperation of a government agency. Any manufacturer may simplify his product line by discontinuing the production and sale of any items that are found not to be profitable. However in many lines of production a company that undertakes to eliminate the slow selling varieties may find that it loses sales on other products as well. A retailer or a wholesaler is not likely to purchase the product in its popular sizes, grades or colors form one manufacturer and the unusual varieties from another. Consequently competition may compel a manufacturer to make and sell a wide variety of products unless the simplification movement is broad enough to include most of the industry.

Steps involves in simplification
• • • It’s a group effort of many manufacturers and producers Voluntary recommendations by Government and private agencies. Progress by individual manufacturers  Development by engineering department  Improvement of weakness  Improvement in market channels  Selection and rejection accordingly


Limitation on the simplification
It does not apply to the job order.

1. Better goods at same price. 2. Same goods on lower prices. 3. Larger sales. 4. Less investment. 5. Increase in labor efficiency. 6. Satisfying consumers needs.

DG khan product simplification
As the DG khan is producing only the cement, so they don’t need they don’t need to simplify their product line, but they are more concerned with the process of manufacturing. They are having the simplified and specialized current plant for cement from Denmark. As well as they are more concerned with the packing of cement. They provide a manageable size which is easy to handle.



Quality control and inspection

Quality professionals use the term “standards” to mean many things, such as metrics, specifications, gages, statements, categories, segments, groupings or behaviors. But usually when they talk about standards, they’re talking about quality management. Management standards address the needs of organizations in training, quality auditing and quality-management systems. The ISO 9000 Series, for example, is a set of international standards for quality management and quality assurance. The standards were developed to help companies effectively document the elements they need to maintain an efficient quality system. They are not specific to any one industry. A process that evaluates output relative to a standard and takes corrective action when output doesn’t meet standards. OR 'Quality is consistent conformance to customers’ expectations.' The important things to remember about this definition is:

Operations have to ensure that they are able to manufacturer the product or deliver the service to a specification. They have to do this time after time, i.e. consistently, and in order to do this we need to have some means of controlling quality (see later). And, that specification should meet customers expectations, (see quality characteristics later), if it does not customers will likely be dissatisfied.


Although the operation may consistently create the product or service to that specification, the customer’s perceptions of its quality may be good or bad. So we also need to try to understand how customers will perceive the products and services.

In some situations customers may not be able to evaluate the technical quality of a product or service and may judge it on the way they were treated. Quality must therefore cover both the technical and treatment aspects.

The quality control capability is used to ensure a continuous quality of the company’s products and processes. Therefore, the quality level has to be constantly updated, control charts can be used to check certain values and the suppliers’ quality needs to be evaluated. All quality data within SAP ERP can be collected, analyzed and controlled with different tools (e.g. QM Evaluation Cockpit). This is for example the basis for continuous quality improvement also used for six sigma projects. Quality Certificates Quality certificates document the following of certain quality requirements. They are mostly used during the collaboration with suppliers or subcontractors (incoming certificates) to document the quality standards of incoming goods or when acting as a supplier, to document the company’s quality standards themselves (outgoing certificates). Quality certificates can guarantee:
• •

the following of certain manufacturing / quality processes the execution of predefined inspections. These can be either defined by norms (e.g. GMP: Good Manufacturing Processes), law, customers, ... defect-free inspection results for a delivery, assigned to the quality certificate


Quality Notifications Quality notifications are used to process and document quality related problems within a standardized process. Quality notifications consist of basic header data such as material, reference documents, batch numbers, etc. and detailed information about the problem/deviation. Additionally to that, tasks and activities can be tracked to support an internal CAPA (Corrective and Preventive Actions) process. Notifications can e.g. be used for:
• • •

complaint against a vendor internal problems (material error, etc.) complaint from a customer

How can quality problems are diagnosed There are two important points here:

The gap model, figure 17.4 provides us with a way of diagnosing quality problems, i.e. why customers might perceive quality to be different to their expectations. Such a mismatch could be caused by one of or a combination of other mismatches or gaps.

The responsibility for ensuring customers perceive good quality products or service is not just the responsibility of operation managers but also marketing to provide information about customers expectations and to provide the right image about the product or service to the market. Product/service developers also have a role in ensuring that the right product or service is designed.


Purpose of quality control: • • • • • • • • Maintaining special standards. Prevention of defects as early as possible. Correction of defects. .Economical product by reducing the wastage and operational cost. Public safety General public Employees Meeting the marketing competition

OBJECTIVES The establishing of appropriate inspection stations and the programming of inspections at each stage of repair or overhaul to ensure that parts, assemblies, processes, and assembly operations are inspected, and applicable tests are conducted, in accordance with data, technical materials, and procedures maintained at the station for that particular stage of process.

Inspection Process
Inspections are a formal process used to identify and correct errors in a completed deliverable, before the deliverable is used as input to a subsequent deliverable. For example, after inspection, the Requirements Definition is released for reference by the Functional Design Specification. The focus of the inspection process is on finding defects, rather than solutions, which can divert the inspection meeting time.


Benefits of Inspections • Inspections provide a number of benefits, and are one of the least expensive and most effective methods of detecting errors. The inspection process: • improves productivity by correcting defects early and preventing costly rework, • • provides designers/programmers with immediate corrective feedback, · prevents perpetuation of errors in subsequent iterations of the development process, • ·makes participants more knowledgeable of the system at an earlier time frame, • ·provides findings that can be used to improve the software development process early in the project.


Development of inspection Program
Who to inspect
Professional inspector are needed in technical nature of work Work inspection In case of common & general nature of work Automatic inspection where different parts are combines together to perform the required work Machine inspection is used where the maximum and 100% accurate work and results are required

How much to inspect
Test inspection carried out in machine product and time base wage payment. Complete inspection is done in the manual work and piece rate system.

When to inspect
At the time of material procurement At the time of when material is in process At the time when finished goods are ready.


Where to inspect
i. ii. iii. Floor inspection Centralized inspection Checking the inspection results

Floor inspection
It is the arrangement whereby production is examined in the same place and is not taken to the laboratory or any other place for determining the quality.

• • • • Easiness in bulky products. Defects easily discovered and removed at same place. Decrease in handling cost Ease in WIP checking.

• Interference in work because production process will effect at the time of inspection. • • Personal favor to some selected persons ( specially in public sector) Difficulty in use of special equipment because more cost will be required to install equipment at different level.


Centralized inspection
Whereby a separate place is used to inspect and control the quality by establishing special lab or place.

Checking the inspection results
• • • Poor method selecting the employees Inadequate training Improper induction.


DG khan Quality Control and inspection
They are having quality and control department in each plant. They hire professional inspector for the purpose of quality control and inspection. They are more indulged in machine inspection. They are 110% current with respect to technology and they give considerable importance in maintaining their machinery inspection. They follow test inspection procedure. They take sample and inspect it. They usually perform finished goods inspection at the final stage. For the purpose of maintaining high quality they use to take samples to the lab and then inspect it. And finally check out the results of the inspection, they desperately wanted to know where the flaws came.


Planning and controlling procedure

It includes plans for the machine or workplace where the work will be done, the type of manufacturing operations to be performed and the quality that will be produced. It indicates the method by which the product will be made and prescribes the operations for meeting each part and each assembling. It includes all the preliminary planning to the points where the time schedules are made and established. 219

Planning the production order to avoid any discrepancy delay and emergency or breakdown • • • • • • • Work out total parts accessories and their specification, standards required for end product. Deciding the need to manufacture or procure from the market. Deciding the flowchart(sequence) for the manufacturing and assembling them In case of production decision made for the arrangement of material. Enlisting the operations to carried out at various stages and places Issue the instruction to concerned departments Dividing the order into various batch and lots

Controlling the production process through allocation of time required for starting, completion and transferring date from one department to another or to assembly line. It fixes the time when the work will be done, that is date of completion of delivery to the customer, starting date and the date for transfer from one department, to another may be decided upon in order that , completion date may be met. • • • • • • • Determining the possible date to start the function Determining the possible completion dates of required order Confirmation may adopted forward calculation of time required Rechecking through reverse recruiting of completion schedule Using the past track Normally following conservative approach Scheduling the individual job


Try to improve the process through experience and coordination

Inventory control (dispatching)
Making available different material required for the production order. It means execution of plans as established in the work of routing and scheduling i. it includes the preliminary work of preparation prior to the starting date as well as issuance of order to the manufacturing department. The before factory begins the work or the product material may be purchase, machines may be repaired, workers employed or trained and machines to be manufacture able. • • • • • Estimating of required quantity Determination of EOQ Monitoring the process through progress report Arranging emergency needs if any Efficient inventory control coordination among store and departments

Follow up
Process of regular review of different steps of routing, scheduling and dispatching. • • Preparation regular report of various department progress. Evaluating the delay if any at various stages.


• • • •

Taking appropriate measure to over come difficulties arises Adjustment made in routing and scheduling Review of finished goods on regular basis Comparison of order received and stock available.


Planning & controlling production at D.G khan
We are more concerned about the planning and controlling production. They always try to avoid discrepancy. Whenever an order comes to them they make a planning for that purpose in order to fulfill that. They always wanted to meet the specification and standards for the end product. D. G khan don’t need to procure the raw material, they own their own material and then they decide about the manufacturing of cement. They enlist the operations to carry out at each stage. And finally they complete their orders in batch and bulks. They plan about each orders starting as well as ending time according to the demand of cement. They also schedule about the completion time for each order. They follow the conservative approach for scheduling. Each employee tries to improver the process through the experience and by the coordination. DG Khan company always estimate of required quantity they determines about the economic order quantity. .they needs to generate the progress report for the evaluation of their performance. DG Khan follow up the process to check that the work is actually done as it was planned or not. They prepare regular report of various departments for reviewing their progress. If their any flaws came they take corrective measures to fulfill that gap. They also make adjustments in routing and scheduling. They keep reviewing their finished goods on regular basis.


On the basis of work done in different departments it is concluded that the industry is running smoothly and progressively. The account department section indicates that the industry has stable condition which indicates the increasing trend of customers towards the Dg khan cement. The industry is leading towards inducing people about the benefits of quality assurance of the cement product. . Cement industry of the country has been performing well from the last couple of years and the performance is in line with the economic fundamentals of the country. The trend is expected to continue and even get better in future.