A Reporton

ORGANIZATION STUDY

at

Arabian Industries L.L.CSultanate of Oman

Submitted byR.Sasikumar

Course code : 308Register No: 32118

Enrollment No: 08008PF103

Under the Guidance ofProf. N. Aravindakshan

Submitted in partial fulfillment of the requirement

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

ofM.G.University

Kottayam – Kerala

February – 2010

Department of Management Studies

Polyglot Institute - Sultanate of Oman.

EXECUTIVE SUMMARY

The MBA course offered by the M.G. University, Kerala, has its own unique syllabus which

requires its MBA students to undertake an internship with any of the leading business houses for

a period ranging from 4 weeks to 6 weeks during the Third semester. For the purpose of acquiring

practical knowledge of the working and functioning of a company, M.G. University has

incorporated an in plant training into its Business Management schedule. This in plant training

shows us how the different departments in an organization work and wins as a single unit.

“Arabian Industries LLC” an Oman’s prestigious Engineering and Manufacturing Company; is a

well established engineering company. It is an Omani company which always maintained the

highest international standards of excellence through quality, technology and innovation. It has

the ability to provide the best in engineering and back up services for the petroleum and allied

industries. The company has ISO 9001-2000 certification and has executed projects in various

Middle East countries. It captured the various facets of the Oman economy in sectors ranging

from maintenance, manufacturing, fabrication and infrastructure, etc.

If we say some thing about technology; Technology is advancing rapidly and as with the rest of

society, this has had a major impact on people in different ways. Today’s world need, is a

corporate world and it requires a lot of management activities to achieve success, for this purpose

in this competing corporate world of multinationals and industries , industrial revolution has

brought with it group production and group consumption activities and also it has brought in a lot

of corporations competing for preferences and success in the business world, it may be a

Construction industry, manufacturing industry or any other type of industry experience and

specialization, have become a must to compete with others become very much essential for all the

companies.

Training and learning in a class room will make an individual knowledgeable in theory of the

various functions of a company. But a person comes out from class room and visits various

industries, in this situation he can learn more from them. In such a situation real experience in the

practical functioning and operations of a company can be of very much use to the students of

management studies.

AILLC/ADM/00101-2009 25th December 2009

CERTIFICATE

This is to certify that Mr.Sasikumar.R. Register No.-32118 a IIIrd semester MBA student

of M.G.University - Kerala, has visited our Organization and conducted a study in it’s

Organizational Structure and he has successfully completed his Project works, during the

period from November 2009 to December 2009.

We wish all the best in his future endeavors.

Thanks with Regards,

Yours faithfully,

MaheshNair,

Finance Manager

Arabian Industries LLC.

CERTIFICATE

This is to certify that this report on “Organization study at Arabian Industries LLC”. is a

bonafide study of R.Sasikumar, an MBA student of M.G.University, Kottayam, Kerala.

Centre Co-Ordinator:

Dr.K.Vijaya kumar Prof. N. Aravindakshan

Polyglot Institute Dept. of Management

Muscat, Sultanate of Oman Polyglot Institute

. Muscat, Sultanate of Oman

Place: Muscat, Sultanate of Oman

Date: 25th December 2009

DECLARATION

I, Sasikumar R. an MBA student of M.G.University, Kerala do hereby declare that this

report on “Organization study at Arabian Industries LLC, under the guidance of Prof.

N.Aravindakshan, Professor of Finance and Accounting, Department of Management

Studies, Polyglot Institute, in partial fulfillment of the requirements for the award of the

degree of “Master of Business Administration” is a bonafide study I have done in the

organization. I also declare that this report has not been previously formed for the award

of any Degree, Diploma, Associate ship, Fellowship or any other similar title of this or

any other university or institution.

Place: Muscat, Sultanate of Oman.

Date: 25th December 2009.

Counter signed:

Prof. N.Aravindakshan,

Dept. of Management Studies,

Polyglot Institute,

Muscat, Sultanate of Oman.

ACKNOWLEDGEMENT

I would like to acknowledge my sincere gratitude to:

Prof. N.Aravindakshan: (Former Co-Ordinator, Institute of Management in Kerala, University

of Kerala, Kollam Centre:)

Prof. N Aravindakshan, guided me with his valuable suggestion. He was a source of inspiration

for me to complete the study and make this report on time and was instrumental in shaping this

report.

Dr.K Vijaya Kumar.(Centre Co-ordinator)

I am highly indebted to the centre co-ordinator Dr.. K.Vijaya Kumar, Department of

Management Studies for inspiring me and for his valuable guidance and assistance provided.

Mrs. Sindhu Divakaran

Mrs.Sindhu Divakaran, Faculty of Management Studies, Polyglot Institute, has also guided me

with her valuable suggestions and advice for making this report a good success.

Mr.P.O. Jabir - Operation Manager-Polyglot Institute, Sultanate of Oma,

I take this opportunity to express my sincere and whole hearted thanks to Mr.P.O.Jabir, Operation

Manager, and all the staff members of Polyglot Institute, Sultanate of Oman., for their

tremendous help and support during the period of my project study.

Mr. Mahesh Nair

I express my sincere gratitude to Mr.Mahesh Nair-Manager Finance-Arabian Industries LLC, for

the valuable advice and guidance extended to me for the completion and shaping of the

dissertation.

Mr.Abdulkhadar Padiyath,

I wish to extend my sincere thanks to Mr.Abdulkhader Padiyath (Manager Finance -(Assistant),

for His help and support in shaping this report.

I also extend my sincere gratitude to all employees of Arabian Industries LLC, for their kind co-

operation and support for the completion of this report.

TABLE OF CONTENTS

1. Executive Summary

2. Certificate from organization

3. Certificate from Guide

4. Declaration

5. Acknowledgement

6. List of figures, tables and chart

Chapter No: Page No.

1. Introduction 1

2. An Overview of Oman Economy and Petroleum Scenario 5

3. Arabian Industries LLC : A Profile 8

a) Subsidiary Companies and Joint Venture 11

b) Product, Capabilities and Service Listings 13

c) Equipments, Plant and Machinery 17

d) Major Projects 18

e) Major Products 21

f) Quality Policy Mission and Vision 24

g) Corporate Social Responsibility 28

4 Functional Departments. 31

a) Finance department 32

b) Purchase Department 40

c) Marketing department 43

d) Human Resources Department 45

e) Functional interdependence of departments (Swot) 49

5 SWOT Analysis 51

6 Findings-Suggestions and Conclusions. 54

BIBLIOGRAPHY

LIST OF DIAGRAMS, CHART, TABLES, AND FIGURES .

Chart No. Particulars Page

1. Chart and Table of Oil and Natural Gas Reserves.

7

2. Organizational chart of Arabian Industries LLC.

9

3. Monthly Sales for January to December 2009.

10

4. Chart and Table of Man Power Strength.

18

5. Corporate Goal

27

6. Wheel of Success

30

7. Organizational chart of Finance Department.

32

8. Organizational chart of Purchasing Department

42

9. Organizational chart of Marketing Department

43

10. Organizational chart of HR department

46

11. process of HR department

46

12. Functional Interdependence of department

50

13. SWOT Analysis matrix

52

13. BIBLIOGRAPHY

BOOKS

1 Agarwal P.K. - Marketing Management

(2008) - Pragathy Publications, Meerut.

2 Dr. Prasad L.M. - Organisational Behaviour

(2008) – Sultanchand and Sons, New Delhi.

3 Sachdeva S. - Operation Management

(2008) – Lakshmi Narain Agarwal – Agra.

4 Aquinals P.G. - Human Resource Management

(2008) - Vikas Publishers – Noida – UP.

5 Khan M.Y. Jain P.K. – Financial Management

(2008) – Tata Mc Graw Hill Publishers – New Delhi

4 Potti L.R. – Research Methodology

(2008) – Yamuna Publishers – Thiruvananthapuram.

REPORTS AND JOURNALS REFERRED

Reports on “Organisational Study at Special Technical Services”.

Statistical Year Book - 2009 – Ministry of National Economy –Sultanate of Oman.

Main Economic and Social Indicators – 2009 - Ministry of National Economy – Sultanate

of Oman.

Abbreviations

AI LLC - Arabian Industries LLC

AITS LLC - Arabian Industries Technical Support LLC

AIM LLC - Arabian Industries Manufacturing LLc

AIP LLC - Arabian Industries Project LLC

LLC - Liability Limited Company

ISO - International Standard Organization

EPC - Engineering, Procurement and Construction

SWOT - Strength, Weakness, Opportunity and Threat

PDO - Petroleum Development Oman

GDP - Gross Domestic Product

HRM - Human Resources Management

QAQC - Quality Assurance and Quality Control

ASME - American Society of Mechanical Engineers

API - American Petroleum Institute

WPAI-JV - Worley Parson Arabian Industries - Joint Venture

CNC - Computed Numerically Controlled

DSS - Decision Support System

PWHT - Post-Weld Heat Treatment

AP - Accounts Payable

AR - Accounts Receivable

GRN - Goods Receipt Note

ARN - Asset Receipt Note

ERP - Enterprise Resource Planning

JCR - Job Completion Report

HSBC - Hong Kong and Shanghai Banking Corporation

MD - Managing Director

COO - Chief Operating Officer

BUH - Business Unit Head