“PROJECT”

Presented to:
Miss Sarwat Jabeen

Presented by:
Ammara Abbas 678
Amna Javaid
684
Saman Arif 694
(G.L)
Maryam Shahzadi
697
Qurtaba Sadia
699
Topic:
DG Khan Cement Industry

Subject:
Operation & production
management

B.com (Hons) 8th

semester
Afternoon “B”

1
 Hailey College of Commerce
University of the Punjab

Acknowledgment

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.

2
 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 --------------------------------------------------- 114-125

• DG Khan employees training---------------------------------- 126-131

 Role of foreman --------------------------------------------------------- 132-148

• DG Khan role of foreman--------------------------------------- 149-153

3
  Product design----------------------------------------------------------- 154-170
• DG Khan’s product design---------------------------------------- 170-
179

 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----------------- 220-
221

 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

4
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.

5
 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:

6
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

7
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.

8
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...

BOARD OF DIRECTORS

• Mrs. Naz Mansha Chairperson/Director

• Mian Raza Mansha Chief Executive/Director
• Saqib Elahi Director
• Khalid Qadeer Qureshi Director
• Mohammad Azam Director
• Zaka ud din Director
• Inayat Ullah Niazi Director & Chief Financial Officer

Company D.G. Khan Cement

Profile: Company Limited

Ticker: DGKC

Exchanges: KAR

9
 2008 Sales: 12,715,000,000

Major Industry: Construction

Sub Industry: Cement Producers

Country: PAKISTAN

Employees: 665

D.G KHAN CEMENT COMPANY LIMITED

NISHAT HOUSE 53-A
Registered Office Address LAWRENCE ROAD
LAHORE
AUTHORISED CAPITAL 3000000000
PAID UP CAPITAL 1523913800
CEO NAME MRS NAZ MANSHA
28-A LAWRENCE ROAD
CEO ADDRESS
LAHORE
INCORPORATE DATE 9/27/1978
AUTHORISED CAPITAL
300000000
SHARES
PAID UP CAPITAL SHARES 152391380

10
Updates

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.

12
13
Location
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.

14
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

15
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

16
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.

17
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

18
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.

19
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

20
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.

21
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. Furthermore, worker
attitudes in different parts of the country or in different countries may be markedly
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.

22
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

24
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

25
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.

26
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.

Benefits

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

27
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.

Disadvantages

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.

28
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.

Risks

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.

29
30
D.G KHAN DIVISION MAP PUNJAB MAP

31
D.G KHAN DIVISION MAP NA/PP-WISE D.G KHAN DIVISION MAP TEHSIL WISE
Regional Sales Offices

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.

32
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

33
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

FACTORY SITES

DERA GHAZI KHAN

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

34
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

35
 Layout

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.

37
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.

38
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.

39
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, variable-

40
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

41
 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

43
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)

44
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

45
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

46
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)

47
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.

48
49
50
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

51
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.

52
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

53
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.

54
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:

55
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.

56
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.

57
Coal Grinding

Coal contains varying quantities of volatiles, both combustible and non-

combustible. 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.

58
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 per kg coal, corresponding
to approx 17% of the combustion air, based on coal with a calorific
value of 6500 kcal/kg (27,200 kJ/kg).

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

61
 processing and handling properties.

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.

Cooling

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

Separators

62
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.

Crushing

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

63
material to the particle size required by the downstream raw mill.

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.

64
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.

65
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

66
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

67
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.

Storing/Silos

Silo Reclaim:

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

68
energy requirements with excellent extraction and cleanout characteristics.

69
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.

70
Transport

A wide range of conveyors are used for different applications:

Screw conveyors, used for horizontal, inclined, or vertical transport of pulverulent

and granulated materials.

71
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.

72
PURCHASING:

73
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.
OVERVIEW:
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

74
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 INTERFACE

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

THE PURCHASING CYCLE

DEFINITION:
"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."

MAIN STEPS:
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:

76
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.

77
 PURCHASE POLICY
Different organizations have different purchasing policies.
Purchasing can be centralizes or decentralized. The details
are as follows:

CENTRALIZED PURCHASE POLICY

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:

78
 • 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

DECENTRALIZED PURHASE POLICY

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!

79
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.

FLEXIBLE PURCHASE POLICY:

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

80
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:

Principles

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.

81
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.

82
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

83
 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.

84
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.

85
86
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.

SOURCES OF LABOR SUPPLY

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

87
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.
INSIDE SOURCES

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.

OUTSIDE SOURCES

88
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 OF SELECTING WORKERS

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

89
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

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

91
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

92
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

93
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

94
requirements and even assist the employer in writing job descriptions. Most
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.

95
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

96
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

97
 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

98
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.

ON DEMAND RECRUITING SERVICES

99
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.

COLLEGE RECRUITING

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.

100
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.

INTERNSHIP RECRUITING

An intern is one who works in a temporary position with an emphasis on on-the-

job 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

101
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

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.

RECRUITMENT VIA INTERNET

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

102
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.

103
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.

104
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.

105
 Induction

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

106
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.

107
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.

108
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.

109
• 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

110
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

111
 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. letter at home
11. Follow up by foreman
12. Refresh course if needed
13. 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.

112
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.

113
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

114
 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.”

115
Objectives of Training

1. Setting up the basic objectives

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

116
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

117
 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

118
  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.

1. Vestibule Training

119
 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.

Procedure

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) After the preliminary instruction is completed, the members of the group are
taught to make a product.
c) At the completion of the course of the training workers are transfers to the
regular production lines, where they are taught some specific job.

Features:

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

120
Limitations

1. The vestibule school is a practical plan only for the large company. If a
complete production line is established, balance in the line is not easily maintained.
2. The labor turn over on some jobs is more rapid than others, and more
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. contract for work service.
2. Fixed period of training.
3. Trade learning rather than job. (trade include a number of jobs)

121
4. Ease to difficult job.
5. nominal remuneration (not salary)
6. Usually absorbed after successful completion.
7. 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

122
- 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

123
- 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

124
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)

125
 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

126
 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

127
 Identify the need for training

Organization level Department level

Training

On the job training Special training

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,

128
 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
manufacture.
• The measurement and control of fineness and the different
measures applied on cement factories.
• Separation theory.
• The concept of grind ability and the effects of inter-grinding
materials of different grind ability.
• Drying and evaporative cooling.
• The segmentation of grinding and milling systems.

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.

130
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.

131
 • 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.

132
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.

133
134
ROLE OF FORMAN

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.

WORK OF THE FORMAN

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

135
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”

136
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

137
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.

138
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

139
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,

140
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 in-
competency 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

141
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

142
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

143
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

144
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.”

145
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

146
should be large enough to build up his interest, and the details of the plan should
not be too complicated.

TRAINING OF FOREMAN

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.

147
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.

148
Make supervisors better leaders by increasing their knowledge and
understanding.

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.

FOREMEN’S UNIONS AND CLUBS

149
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 long-
established 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.

FOREMAN OF DG KHAN CEMENT

150
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

151
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’

152
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

153
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

154
• 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

155
 • 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

156
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
(TM)
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

159
Industrial design is an applied art whereby the aesthetics and usability of mass-
produced 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.

160
 • 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

161
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

162
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

163
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

164
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.

165
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.

166
 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.

KEY POINTS OF THE DESIGN PROCESS

 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.

FACTORS THAT INFLUENCE PRODUCT DEVELOPMENT

167
 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.

Appearance

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.

168
COST

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

ERGONOMICS

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

MATERIALS
The availability of materials and the development of new, hi-
technology materials will have an influence on the final design of a product.

CUSTOMER REQUIREMENTS:
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.

COMPANY IDENTITY
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).

AESTHETICS

169
 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.

FASHION

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'.

CULTURE

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.

FUNCTIONS

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

ENVIRONMENT

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.

170
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.

Specification

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.

171
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.

PRODUCT DESIGN OF CEMENT

Marketing

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

172
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

173
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

174
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.

175
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

176
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.

177
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

178
to ensure that the kiln feed is uniform, a prerequisite for the efficient functioning of
the kiln and for good quality clinker.

Burning

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

179
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

180
directly onto trucks or can be palletised. The pallets can be covered by a layer of
plastic to offer further protection from the elements.

181
182
Simplification

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

Standardization is the establishment of uniform sizes, dimensions, or other

properties and is technical in nature rather than commercial.

183
Explanation
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

184
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

185
using specific syntaxes. These standards are usually developed in voluntary
consensus standards bodies.

186
 Standards

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

187
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

189
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 industry-

wide)

• 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

190
 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.

191
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.

Challenges

192
 • 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

193
 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-standard-
setting body composed of representatives from various national standards
organizations. Founded on 23 February 1947, the organization promulgates

194
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 non-
governmental 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 ISO

14000

This section provides

a concise 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.

195
 ISO 9000 family

The ISO 9000 family addresses "Quality management".

This means what the organization does to fulfill:

 the customer's quality requirements, and

 applicable regulatory requirements, while aiming to
 enhance customer satisfaction, and
 Achieve continual improvement of its performance in pursuit of these
objectives.

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

to
 Achieve continual improvement of its environmental performance.

ISO 9000 essentials

196
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

197
 with service components, or a public utility, or a government
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 market-
place 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.

Benefits

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

198
 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

199
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

services, and to
 improve its environmental performance continually, and to
 Implement a systematic approach to setting environmental objectives
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.

200
 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 cost of waste management

 savings in consumption of energy and materials
 lower distribution costs
 improved corporate image among regulators, customers and the public
 Framework for continual improvement of environmental performance.

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

202
• 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.

203
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

204
They are also following the ISO standards of 4001:2004

205
206
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

207
Limitation on the simplification

It does not apply to the job order.

Objectives

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.

208
209
 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.

210
 • 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

211
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.

212
 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.

213
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.

214
 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.

215
Where to inspect

i. Floor inspection

ii. Centralized inspection

iii. 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.

Merits:

• Easiness in bulky products.

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

Demerits:

• 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.

216
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.

217
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.

218
Planning and controlling procedure

Routing

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

Scheduling

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

220
 • 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.

221
• 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.

222
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.

223
 Conclusion

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.

224