ACKNOWLEDGEMENT

Even though our names appear on the cover, we could not have written this document without the will and blessings of Allah Almighty the most merciful and the most beneficial who gave us the intellect, knowledge and strength to complete this project. We are gratefull to our respected teacher Mr.Kashif Amin Butt who has given us this opportunity for showing much confidence in us and letting us embark on the coming projects on our own. We offer our thanks to many generous people in FFC especially the HR Manager Mr. Hassan Qureshi for helping us and providing us with all the knowledge required to go though the study. From our personal lives we thank to our family members that they have been very supportive to us. We thank everyone for their help and support during this period whether or not they were directly involved with our project.

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EXEUTIVE SUMMARY:
This report is about change in the organization (fauji Fertilizer Company).in which we will see that how they are incurring change in the company and what were the flaws due to which they are creating change in organization.

We will see that how they restructured their company and what were the flaws due to which they changed the whole structure. Further we can see that how these changes in the organization can improve the functions and increase their profitability. We are focusing on how they changed from legacy systems to SAP and what were the reasons for that more they changed their administration department as well. We find out the change in the fauji fertilizer company and also know that what systems they introduced for changing their old systems.

Accordingly, we describe which source is used for gathering data and from whom we get the information. Either we use interview method or questionnaires etc. At last we provide conclusion of the report at Fauji Fertilizer Company limited. .

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INTRODUCTION
FFC started with a vision to acquire self - sufficiency in fertilizer production in the country, FFC was incorporated in 1978 as a private limited company. This was a joint venture between Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark. The initial share capital of the company was 813.9 Million Rupees. The present share capital of the company stands above Rs. 8.48 Billion. Additionally, FFC has more than Rs. 8.3 Billion as long term investments which include stakes in the subsidiaries FFBL, FFCEL and associate FCCL. FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons. 1. Through De-Bottle Necking (DBN) program, the production capacity of the existing plant increased to 695,000 metric tons per year.

2. Production capacity was enhanced by establishing a second plant in annual capacity of 635,000 metric tons of urea.

1993 with

3. FFC participated as major shareholders in a new DAP/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) commenced commercial production with effect from January 01, 2000. The facility is designed with an annual capacity of 551,000 metric tons of urea and 445,500 metric tons of DAP, revamped to 670,000 metric tons of DAP. In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation (NFC) through privatisation process of the Government of Pakistan. It has annual production capacity of 574,000 metric tons urea which has been revamped to 718,000 metric tons urea in 2009. This acquisition at Rs. 8,151 million represented the largest industrial sector transactions in Pakistan at that time. 3|Page

MISSION STATEMENT:
FFC is committed to play its leading role in industrial and agricultural advancement in Pakistan by providing quality fertilizers and allied services to its customers and given the passion to excel, take on fresh challenges, set new goals and take initiatives for development of profitable business ventures.

CORPORATE VISION:
FFCs vision for 21st century remain focused on harmonizing the company with fresh and encompasses diversification and embarking on ventures within and beyond the territorial limits of the country in collaboration with leading business partners.

IMS CERTIFICATES Q, OH&S AND E

Integrated Management Systems certification for International Standards is a sign of confidence between the FFC and its stakeholders for conducting business. Certification is a valuable approach to ensure reliable delivery of consistent product while fostering continual improvement. Fauji Fertilizer Company plants Management Systems (at Goth Machhi and Mirpur Mathelo) are certified for worlds famous International Standards of Quality, Occupational Health & Safety and Environment. The implementation of Management System Standards is an important corporate strategy of FFC.

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S.No

Certification Name

Brief Description of Certifications

1.

ISO 9001:2008

Quality Management System(QMS)

2.

ISO 14001:2004

Environmental Management System(EMS)

Occupational Health & Safety 3. OHSAS 18001:2007 Assessment Series(OH&S Management System)

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QUALITY POLICY

BUSINESS AREA:
MANUFACTURING

The largest urea manufacturing facility of Pakistan consisting of two ammonia/urea units owned by FFC, is built at Goth Machhi in district Rahim Yar Khan.Goth Machhi is situated at a distance of 2 kms from the main Lahore-Karachi highway and is adjacent to the main railway line. The two plants are based on natural gas from Mari Gas Fields and have an annual designed production capacity of 1.3 million tons of urea. Over the years, the plants have demonstrated an operational excellence which has become a reference for the engineering companies whose process technologies are used here. Delegations from China, Middle East and Far East keep visiting the plant site for gaining first hand knowledge before deciding to purchase a new plant. 6|Page

ENGINEERING

After the successful start-up of the first plant in mid 1982, a group of selected engineers was assigned to Technology Division-TD (then called CED) Head Office with the objective of providing engineering and technical backup to the plant operations.

MARKETING

Marketing Division, setup in July, 1978 is responsible for all marketing operations including planning, distribution, sales, farm advisory services, field warehousing, finance and administration. With the commencement of commercial production in June 1982, the company started marketing its urea under the brand name "Sona". The company markets not only Sona urea but also imported nitrogen, phosphate and potash based fertilizers.

PRODUCTION EFFICIENCY: Production Efficiency

GOTH MACHHI-Urea Production (met Tons/Year) Base Unit Capacity Years Production Factor (% Design) 1982 1983 1984 1985 1986 1986 1987 1988 325,452* 566,771 589,258 598,694 594,901 594,901 632,079 637,737 93.86 99.43 103.37 105.03 104.36 104.36 110.89 111.88 Production Expansion Unit Capacity Factor (% Design) 325,452 566,771 589,258 598,694 594,901 594,901 632,079 637,737 Production Total Capacity Factor (% Design) 93.86 99.43 103.37 105.03 104.36 104.36 110.89 111.88

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1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

632,972 652,665 629,266 648,178 657,376 678,114 680,062 710,862 773,048 742,599 726,723 729,864 737,607 801,825

111.04 114.50 110.39 102.55 94.58 97.57 97.85 102.28 111.22 106.84 104.56 105.01 106.13 115.43

477,339** 659,526 700,031 695,749 734,275 682,969 734,689 695,938 756,417 713,889

95.85 103.86 110.24 109.56 115.63 107.55 115.69 109.59 119.12 112.38

632,972 652,665 629,266 648,178 1,134,715 1,337,640 1,380,093 1,406,611 1,507,323 1,425,568 1,461,412 1,42,5802 1,494,024 1,515,714

111.04 114.50 110.39 102.55 100.41 100.57 103.76 105.76 113.33 107.18 109.88 107.20 112.33 113.97

* Start-up of commercial production on 14 June 1982 ** Start-up of commercial production on 21 March 1983

MIRPUR MATHELO-Urea Production (met Tons/Year) Base Unit Capacity Years Production Factor (% Design) 2002 59,886* 102.91 Production Expansion Unit Capacity Factor (% Design) 590,886 Production Total Capacity Factor (% Design) 102.91

* FFC aacquired 100% management control of PSFL-Mirpur Mathelo effective from July 1,2002

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PLANT WAREHOUSES:
To meet the requirements of our plant, a modern and well organized materials warehouse has been established, which is one of the best in Pakistan. FFC has maintained an average inventory level of about 30,000 items since commencement of operation in 1982. A total storage facility comprises of the following warehouse and open areas: 1. Main warehouse 2. Bulk warehouse 3. Open yard 4. Packing material warehouse 5. Chemical warehouse 6. Left over material and disposal yard

TRAINING
FFC recognizes TRAINING as an essential component in maintaining excellence in productivity, efficiency, quality and safety. FFC Technical Training Centre (TTC) is situated at plant site. It is spread over an area of 5.8 acres and consists of covered area of approximately 50,000 square feet. TTC has been modernized in association with M/S Stamicarbon BV, a DMS subsidiary in Holland. TTC has facilities like process simulator, workshops, laboratories, library, audio-visual aids etc. Staff and Management apprentices go through an extensive training programme before joining the company as regular employees. TTC conducts refresher and skill improvement courses for regular employees of all trades. FFC pays special attention to develop and enhance the management and professional skills of its officers.

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COMMUNITY
The Company has built a model township for its employees at this remote location which consists of residential accommodation along with allied facilities.In caring for the community in health, education, environment & sports, Fauji Fertilizer Company Limited follows its key objective: "To use all skills, energies and technologies in building the image of the company, by strictly adhering to the Company Core Values, that makes its employees to contribute towards society in a way and enhance its image as a leading Fertilizer Business company in Pakistan." For this FFC is providing excellent health, education, recreational and sports facilities to its employees. Health facilities include a modern clinic equiped with a laboratory in the vicinity of the residential area. A panel of competent doctors is available round the clock to take care of the community's health. Two schools, FFC Grammar School & FFC Model School are operating in parallel in the FFC Township, offering up to the Higher Secondary level. Imparting computer literacy to children is one of the main elements of FFC schools, modern education. We operate two separate Management and Staff clubs, offering sports, and recreational as well as social activities. The clubs are equipped with basic facilities like swimming pools, Tennis/Squash courts, Health gym and much more. A lush green (09 holes) golf course is a panoramic element of FFC sports facilities and it has promoted many good golfers in the community. Many sports events like Annual Sports, Married Vs Bachelors and Sports Gala etc. are held from time to time, imparting healthy entertainment to the residents. Social events like Musical Evening, Mushaira, Eid-Milan, etc. are also part of the social activities of the club.

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SALE: PRODUCTION SALE AT GLANCE

FFC is a leading manufacturing company with over 60% shares of urea manufacturing and marketing in Pakistan.

MARKET PARTICIPATION:

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ORGANIZATIONAL STRUCTURE

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DESIGNATION CHANGE BROUGHT IN CASE OF MANAGERIAL EMPLOYEES

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DESIGNATION CHANGE IN CASE OF STAFF EMPLOYEES:

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NEW POSITION STRUCTURE OF FFC:

Group General Managers General Managers Senior managers Managers Deputy Managers Assistant managers Executives Deputy executives Assistant executives Junior executives

ADVANTAGES OF NEW DESIGNATIONS

Methodical, consistent and flexible. Logical combination of three discrete elements i.e. level, broader functional area, specific functional area. Additional epithets describe the assignments where needed. Its telltale clearly distinguishable. Abbreviations in a standardized format. Easy to establish equivalence. More contemporary, presentable & respectful. Compatible with SAP. Reduces clutter and eliminates ambiguity. Consistency in levels and grades.

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RESTRUCTURING OF HR DEPARTMENT:

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ADVANTAGES OF RESTRUCUTURED HR DEPARTMENT There was no HR department before and only administration was looking after the work of HR department. Specialized department for its field. Specialized sub departments. Makes it easier for the company to manage 2500 employees. Now no one blames on or the other for the mistakes in the HR field rather HR take cares of the problem it self. INDUCTION OF SAP (ERP) IN FFC The cost of inducting SAP in FFC is 44 crores. And American companies Ebacus are the consultants who are helping them implement SAP in FFC. Till now only the first phase of SAP has been implemented. Following are the modules being integrated in FFC Human Capital Management (HCM). Finance (FI). Controlling (CO). Material Management (MM). Production Planning (PP). Plant Maintenance (PM). Sales & Distribution (SD). Project Systems (PS). Quality Management (QM). Business Intelligence/Business Warehouse (BI/BW). Business Objects (BO). Process Integration (PI). Due to the shortage of time we only studied the HCM module of SAP. Following are the sub modules of HCM (Human Capital Management) Organization Management. Personnel Administration. Time Management. 18 | P a g e

 Payroll. Travel Management. Training & Event Management. Information Systems. Recruitment. Personnel Cost Planning. Compensation Management. Personnel Development. Employee Self Service/Manager Self Service.

What impact did SAP had on the organization? For starters there were 40 different software applications working side by side, every department had an in-house solution. For the last 15 years there was no change in this software and it must be mentioned they soft wares the company was operating upon had low inter-operability. Every one had to take a print out of the changes and send it to the concerned department where the person used to update the data. This caused data redundancy and made the data difficult t be managed. So the step to induct SAP was brought in. It brought following impact on the organization. Enterprise-wide environment. Centralized database. Free flow of information. Visibility & transparency. Delineation of boundaries. Clearly spelled out roles. Changed reporting channels.

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PARTNERING WITH NATIONAL TESTING SERVICE

Why Choose NTS in the first place? Flexibility Multiple schedules 5 times spread over the year. Multiple venues much greater reach across the country. No space limitations almost infinite capacity to handle any number of applicants. No limits on retaking the test as many times as one would want to do it; there is always another opportunity. Scores are valid for 2 years reduces the burden of taking the test for every recruiting event; offers a breather to the candidate. We can shortlist candidates for interviews from a much wider pool of candidates. Capturing the real talent By redefining the short-listing criteria. Properly designed and validity-ensured tests will help us identify the real talent . Low costs Optimal processing. Reduced logistics TA/DA, Hotels etc. Minimum time & effort reduced workload. Validity-ensured tests Highly consistent, standardized, transparent & credible testing process. Level playing field for all candidates. Helps us identify the real talent. Transparency & credibility Openness. Transparency. Visibility. 20 | P a g e

PURPOSE OF STUDY: The main purpose of the study is to know that how change is implemented and what were the reasons due to which fauji Fertilizer Company took steps to create that change in their company and to identify the issues on which change is implemented and how it is implemented.

PROBLEMS IN RESEARCH

In Fauji Fertilizer Company there was no sense of what is happening in the

organization.

There was no proper stream line. In the organization there was problem in compensation. Before operating cost was high, Microsoft was not working everyone had made
their own system procedures.

There was no proper human resource department.

METHOD OF DATA COLLECTION The data serve as the bases or raw materials for analysis. Without an analysis of factual data, no specific inferences can be drawn on the questions under study. We used primary source to collect the data. Because primary data are first hand information collected through various methods such as observations, interviews and mailing etc. PRIMARY SOURCES: 1. Interview 2. Observation. To collect the data we went to Fauji Fertilizer Company. We observed their HR department as well as we interviewed some officers there from top and middle management. One of the officers was very helpful. We asked different questions related to change and how they are implementing change in their company.

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CONCLUSION:
The year of 2010 and 2011 has been the year of radical change in FFC. These decisions were taken keeping in view the survival of FFC. But it is also to be noted that the change also brought the success factor after initial change. Change is good for every organization, and this has been proven by the change accepted by FFC. He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery. ~Harold Wilson If you don't like something change it; if you can't change it, change the way you think about it. ~Mary Engelbreit

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