DESCON ENG LTD

Page 1 of 16

Final report

Submitted to:

Mr. Bilal Javed

Submitted By:

Sufian Rasul (BBA-sp09-129)

Taimoor Raees (BBA-sp09-138)

M Imran (BBA-spo9-086)

Naveed Akbar (BBA-sp09-107)

Rao Farooq (BBa-sp09-114)

Department:

Management Sciences

Topic:

Descon Eng.Ltd

Comsats Institute of Information Technology Lahore

1 Comsats Institute of Information Technology, LHR

Page 2 of 16

TABLE OF CONTENTS

Dedication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..02

Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02

Company,s Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .03

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .05

Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 05

Joint Ventures

Presson Descon . . .. . . . . . . .. . . . . . . . . . . . . . . . .. . .. . .. . . .. . . .. . .. .. . .. . . .. .. . . .06

Olayan Descon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07

Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 07

Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 07

Project management system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 07

Objectives of project management system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Corporate social responsibilty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

QHSE at Descon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Culture and environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .09

Organization’s characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Core values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . 11

Organizational chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 11

Environment of organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . 12

Challenges they face . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 13

Span of control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15


Page 3 of 16

DEDICATION

This report is dedicated to our Parents and Teachers who have inculcated an untiring faith in us and have helped us in every aspect of life; including this report.

Acknowledgement

In the name of”ALLAH” the most beneficent and merciful who gave us strength and knowledge to complete the report. This report is a part of our course “Management Practices”. This has proved to be a great experience. This report is the combine effort of all group members

We would like to gratitude to our teacher Mr.Bilal Javed who gave us this opportunity to fulfill this report .we would like to thank our class fallow who participated in a focus group session. They gave us many helpful comments which help us a lot in preparing our report.


Page 4 of 16

Descon Engineering Limited

Company Profile

Over the last three decades Descon has evolved into a multi-faceted Engineering and

Manufacturing concern and has further spawned a group of ventures with a diverse

activities portfolio: Project Management, EPC, Engineering, Manufacturing, Construction,

Maintenance, Software Development, Mining, Chemicals and Trading. While the group

companies operate independently under a corporate structure, Descon Engineering remains

the flagship company and provides the associated identity to its affiliates.

The company is unique in its resource base with in-house

capabilities for Design Engineering, Manufacturing, Construction

and Maintenance Services. These are applicable to a wide variety

of projects related to Industrial plants, Energy and Infrastructure

development for which services are provided selectively or on turnkey / EPC basis.

Project management expertise vested through sophisticated IT based systems is one of the

key elements in achieving successful culmination of projects. The company’s operations

span Pakistan, The UAE, Saudi Arabia, Qatar, Oman, Egypt and Afghanistan. Joint venture

partners and technology alliances include JGC Corporation - Japan, Enerflex Presson –

Canada, and Eckrohr Kessel – German.

All establishments are system oriented with ISO and OHSAS certifications and ASME

stamps. HSE achievements are reflected in the statistics with over 350 million man-hours of

work executed. Considerable investment is made in human resources focusing on

development of this vital asset.


Page 5 of 16

Descon is project-oriented and client-driven. Quality and HSE are taken as "value-adders"

and the company culture encourages teamwork and innovation. With all these attributes and

resources, the company is well placed to compete and succeed in the local as well as

international contracting arena while being recognized as a quality service provider and

manufacturer of capital equipment. The synergy between various business areas fuels

strategic growth by providing cost effective solutions

INTRODUCTION

Descon comes from combining the two words: DESign and CONstruction

Descon Engineering is a multi-dimensional engineering, construction and manufacturing

company operating in Pakistan and the Middle East. With over 450 million man-hours of

construction work executed in industrial and infrastructure projects, Descon employs over

34000 professionals and other personnel.

Descon Engineering Limited was set up in December 1977 to offer its services to industrial

plants for a large range of services including, engineering, construction & maintenance of

high value plants e.g. Oil Refineries, Gas Processing Plants, Fertilizer plants, Petrochemical

Plants, Cements Plants, Power Plants to name a few.

Over the years, the company has diversified rapidly into other areas e.g. manufacturing of

Plant and Equipment and Construction of Large Infrastructure Projects e.g. Dams,

Barrages, Motorway etc. Descon is also providing turnkey solutions to its clients in these

industrial sectors.

The company has also diversified into GCC countries and today it is recognized as the first

Pakistani Multinational Company operating under a professional management in Pakistan,

UAE, Qatar & KSA with a large multinational workforce of around 25,000 persons

comprising of around 30 nationalities.

Today, as we are heading towards industrialization and modernization, the need for skilled

work force has become pivotal and Descon Training Institute (DTI) is playing an important

role in the industry by producing trained and skilled work force.


Page 6 of 16

Statistical figures by the end of July 2008 show that DTI has passed out 5158 students fully

trained in their respective trades. Bulks of these students are employed by Descon for its

projects inside & outside Pakistan.

Locations:

Pakistan, United Arab Emirates, Qatar, Saudi Arabia, Kuwait

MANUFACTURING:

Descon’s manufacturing heritage dates back to the early 1980’s when a fabrication facility

was set up in Pakistan to cater for the growing industrial base. Today, Descon has

established itself as a leading supplier of process equipment to operating companies, global

EPC contractors and original equipment manufacturers (OEMs) worldwide.

Today Descon has six manufacturing facilities strategically located in the UAE, Saudi

Arabia and Pakistan to provide our valued customers with cost effective and swift

solutions. Our client base has grown to include the world’s leading owners/operators as

well as EPC companies from oil & gas, chemical & petrochemical, fertilizer and power

sectors.

The essence of our continuing excellence rests in our desire to achieve “Continued

Customer Satisfaction” providing our clients with comprehensive and integrated

engineering & manufacturing solutions that add value well beyond project execution.

Our manufacturing strength is complemented with global technological alliances for

specialized equipment. Integrated customized management systems ensure cross functional

monitoring of the processes and timely delivery of the goods. Use of the quality

management systems ensures quality at each step of planning, design, fabrication and

production. With our wide manufacturing base spanning from the west coast of Saudi

Arabia to the heartland of Pakistan we can play a key role as a leading supplier of process

plant equipment across the globe. The DEL promise stays valid regardless of which part of

the world a product is “Made by Descon” standard.


Page 7 of 16

Services:

EPC, Project Management, Engineering, Construction, Maintenance and Manufacturing

DESCON provides Engineering, Procurement & Construction (EPC) services. The

focused industrial sectors include but are not limited to Chemical / Petrochemical, Oil &

Gas, Fertilizer, Cement, Environmental, Infrastructure, Pharmaceutical, Food,

Agriculture, Energy and Power Plants.

Joint ventures

Presson Descon International (Pvt) Limited (PDIL) is an integrated

engineering, procurement, construction and commissioning (EPCC) company; operating in

the oil & gas industry.

PDIL is a strategic alliance of two leading companies Enerflex Systems Ltd., Canada and

Descon Engineering Ltd., Pakistan. Presson-Enerflex is the Production & Processing

Division of Enerflex Systems Ltd, a leading supplier of products and services to the global

oil & gas industry.

PDIL derives the strength of engineering and conceptual design from Presson-Enerflex;

fabrication and construction from Descon and blends it with the project management,

procurement and commissioning expertise of a qualified team of professionals to offer its

customers cutting edge technology and premium quality.

This is a joint venture with the Olayan Group and is located in Al-Jubail

Industrial City and Yanbu in the Kingdom of Saudi Arabia. This operation

comprises of both construction as well as manufacturing activities. The mechanical and


Page 8 of 16

E&I shop is well-equipped for manufacturing industrial plant equipment and also provides

refurbishment services to the petrochemical plants in the vicinity. The construction

portfolio covers general contracting and specialized operation & maintenance services.

Vision

To become a world class engineering, manufacturing and construction company

operating internationally

To bring the institute to world class standard in disseminating quality training and

meeting the company manpower requirements & gearing the economic growth of

the nation.

Mission

"To provide our valued customers with cost effective and reliable solutions in

project implementation and be recognized as the leading manufacturer of high

quality equipment for plants."

OBJECTIVES

To promote study & application of professional principles and practices in the field of

construction industry in line with the International Standards and practices.

To disseminate training for technical advancement & technology, producing more

effective Work Force for the industry.

To exchange and share knowledge, research, techniques, information and skills in the

field of construction and allied industries.

To cooperate & collaborate with local and international institutions, bodies &

agencies having similar objectives, for the promotion and development of

Construction Industry in the country.

To bring motivation, team spirit and efficiency among the trained Work Force

Purpose

To bring prosperity and well being to our stake holders and society at large by

adding value through engineering, technology and management


Page 9 of 16

The complex nature of projects today needs effective management systems to ensure

completion of projects safely on time and within the budget. A professional approach

relying on IT based systems in which the company’s cumulative knowledge-base is vested,

ensures the well-being of the project from estimation stage up to completion on ground.

Descon has invested significantly in developing a system in the form of software modules

which are able to ‘talk’ to each other and together form an integrated project management

system. Our project managers are seasoned professionals who recognize the challenges and

dynamics associated with complex projects and have proven capabilities in executing fast-

track projects.

Concept of Project Management System

Transformation of management processes to achieve flexibility and responsiveness by

effective deployment of IT solutions

To have a conducive environment to fully utilize IT power

To develop ability to anticipate and react to the changing business needs, to remain on

schedule and within the budgeted costs

To facilitate end-point decision-making as well as effective monitoring at required

levels

To ensure that plans are revised instantaneously and actions are taken on time.

To assimilate the company’s business knowledge so that a generalist should be able to

perform as an expert.

Data validation and control functions are performed within the System while

information is processed.

Decision-making process of a human expert is emulated

Descon is committed to realization of its corporate social responsibility, through social

investment and to play a leading role within our spheres of influence. We will work

inexorably in achieving world-class standards of openness, transparency towards all our

stakeholders and serve the communities we operate in.


Page 10 of 16

Our vision is to become the most competitive and dynamic knowledge-based corporation in

the world, capable of sustainable economic growth and greater social cohesion.

Quality, Health, Safety and Environment (QHSE) at DESCON

We understand the value of human life and sustainable development for healthy growth of a

community. Descon’s QHSE program ensures these goals by exercising zero tolerance for

errors in the implementation of best Industrial QHSE practices. These are supplemented

with incentives, training, process control, and deployment of most effective time tested

quality Improvement tools.

Our strategy is built around plan, do, check and act (PDCA) and is reflected in our systems

appreciating following key elements:

Provision of a framework for the setting of QHSE Goals and performance

objectives.

Monitoring, evaluating and continually improving upon our QHSE performance

through operational standards, training, assessments and audits.

Making customers, contractors, and business partners familiar with our QHSE system

and creating awareness on how their actions can influence QHSE performance.

Making QHSE a part of all product development projects.

Making ourselves, aware of the global industrial initiatives and collecting feedback

from our stakeholders for taking improvement initiatives.

All of our operations submit to certified integrated management systems, which include

ISO 9001, EN ISO 14001, and OHSAS 18001 and are run in accordance with national

safety Council guidelines

Culture & Environment

Our human resource has a diversity of skills, background, viewpoints and experiences from

around the world. We have over thirty five different nationalities working in our bench

strength. We hire only the best, based on merit, skills, abilities and desire to excel regardless

of race, color, religion, gender, national origin and any ethnic background. We encourage our

employees to maintain their work life balance. We give them the opportunities to spend


Page 11 of 16

quality time with their families by maintaining a stress free working schedule. We strongly

believe that giving maximum ease to our employees shapes up our corporate culture.

Following dimensions are involved in building DESCON’s culture:

DESCON possesses a strong culture, which is the result of concerted efforts of the

whole management team.

Attention to detail is of paramount importance, for example, while designing, if

one forgets even a minute detail, this simple error could cause the design to be

unsuccessful and cause failure.

The company is outcome oriented but the degree varies with the level of

employees. The junior employees must exhibit efforts as well as deliver outputs.

The senior employees must produce the result while it is not necessary for them to

contribute their efforts. The time to reach the results is also important. This factor

varies according to the different situations.

Every project is performed on team basis. Teams are defined according to

departments.

The company displays aggressiveness which shows that employees are more

competitive than cooperative. Individual desires reign over the company’s goals

attainment. Every employee wants to get promotion. The company is trying to

overcome this factor and has succeeded to some extent. The company is of the view

that to interact with employees in a good way to increase your strengths and to

decrease your weaknesses.

Innovation, risk-taking and stability are also a part of DESCON’s culture

and are encouraged in order for them to flourish continuously.

Innovative culture includes challenges and involvement, freedom, trust and

openness,idea time, conflict resolution, debates and risk-taking

The customer-responsive culture includes:

a. “Customer” focused individuals

b. A structure with a low level of formalization (flexibility to deal with customers)

c. Empowerment


Page 12 of 16

d. Good listening skills

e. Role clarity

Organization’s Characteristics: Having permanent jobs

Managers always make decisions

Relatively homogeneous work force

Work hours defined as 9-5

Work at organizational facility during specific hours

Core Values:

DESCON has a set of core values that are maintained in the organization and serve

as an ethical basis for establishing employee ethics. Everyone must be fair and honest in

his dealings.

The core values are:

Professionalism, ethics and integrity

Quality and standards

Growth

Innovation and progress

Loss prevention and safety

Dignity and development of individuals

Leadership and team work

Candid and effective communication in an open environment

Job satisfaction and enjoyment


Page 13 of 16

DESCON has a simple environment because there are few components.

Having not many pressure groups is an advantage for them.

The organization has five major stakeholders – employees, clients,

competitors,vendors and shareholders.


http://www.olayandescon.com/about_us/org_struct.php

Page 14 of 16

EMPLOYEES

The employees are highly affected by organizational decisions because they have

to work in accordance with what the organization is demanding.

CLIENTS

The organization is having a customer-responsive culture; they are very much

concerned about their clients. The organization does as their clients demand.

What ever the design of a project should be; the organization has to perform

accordingly.

DESCON has two kinds of clients:

Those who demand their projects to be completed on time.

Those who want results and are not cost conscious

COMPETITORS

In Pakistan, DESCON doesn’t have any major competitors because it is one

of its kind and can be considered as the first Pakistani company competing

globally with other international companies.


Page 15 of 16

VENDORS

The company has improved its relationships with its vendors by fulfilling the

budgets.

As far as DESCON is concerned, it is having good relations with all its

stakeholders. They are having a good relationship with their competitors too

because they believe that the success of one company can benefit both the

companies growth. DESCON also believes that there should be more and

more competition so that quality work appears in Pakistan. All the relationships

are in the process of continual improvement.

CHALLENGES THEY FACE

They faced many challenges while going global.

Technological

Training

Language

DESCON is using the geocentric attitude and facing different challenges, and as the time will

pass the company will be able to compete globally as a successful company.


Page 16 of 16

References [1] Management Eighth Edition

Stephen P.Robbins, Mary Coulter

[2] www.jgc-descon.com.pk

[3] www.prenhall.com/robbins/

[4] JDL News, September 2006

[5] Broucher, JGC-DESCON ENGINEERING [PVT.] LTD.

September 2006


Documents

DESCON ENG LTD