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|PAKISTAN TOBACCO COMPANY OPERATIONS & PRODUCTION MANAGEMENT

PTC Operations

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A project done on Pakistan Tobacco Company Jhelum about operations and production management in plant.

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|PAKISTAN TOBACCO COMPANYOPERATIONS & PRODUCTION MANAGEMENT

|PAKISTAN TOBACCO COMPANYOPERATIONS & PRODUCTION MANAGEMENT

PHASE I & II

|PAKISTAN TOBACCO COMPANY |

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ContentsCONTENTS....................................................................................................................... 3 INTRODUCTION................................................................................................................... 4 FACTORIES..............................................................................................................4 JHELUM.................................................................................................................4 AKORA KHATTAK..................................................................................................5 CORPORATE STRATEGY..............................................................................................5 KEY OBJECTIVES................................................................................................... 5 OPERATION STRATEGY.......................................................................................................6 PROCESS MANAGEMENT.............................................................................................7 PHASE (I)................................................................................................................. 7 LEAF THRESHING DEPARTMENT.........................................................................................7 PHASE (II)................................................................................................................8 PRIMARY MANUFACTURING DEPARTMENT............................................................8 SECONDARY MANUFACTURING DEPARTMENT......................................................8 PROCESS CHOICES.................................................................................................. 9 MANAGEMENT OF TECHNOLOGY..............................................................................10 INFORMATION TECHNOLOGY..............................................................................10 MECHANICAL TECHNOLOGY..............................................................................10 TOTAL QUALITY MANAGEMENT.................................................................................11 PHASE - II.................................................................................................................. 14 CAPACITY......................................................................................................................14 CAPACITY PLANNING: ......................................................................................................15 CAPACITY STRATEGIES.....................................................................................................16 EXPANSION.................................................................................................................16 LOCATION...................................................................................................................... 17 JHELUM FACTORY...........................................................................................................17 AKORA KHATAK FACTORY.................................................................................................18 TEAM WORK................................................................................................................... 19 ................................................................................................................................ 19 LAYOUT........................................................................................................................ 20 CONCLUSION................................................................................................................... 21 RECOMMENDATIONS...........................................................................................................22 ACTION PLANS................................................................................................................ 23 BIBLIOGRAPHY.................................................................................................................24

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IntroductionPakistan Tobacco Company (PTC) is one of the leading multinational companies of Pakistan. It has the privilege being the first multinational company of Pakistan. PTC is the part of trans-national British American Tobacco (BAT) Group which has been in this business over 100 years now. BAT has its operations in about 180 countries with more than 300 different brands. Tobacco industry is one of the most important sectors of the economy of Pakistan. PTC has become the major player in the industry by keeping thousands of people employed and by contributing to annual GDP of Pakistan through large amount of taxes paid on cigarette manufacturing and sales. PTC started its operations 1947 right after the partition of sub-continent, by taking over the business of the Imperial Tobacco Company that was incorporated in subcontinent since 1926. In the beginning a channel production was setup in a warehouse in Karachi which has capacity of producing 360 millions sticks per annum. Then after a certain period PTC started its fully equipped factories in Jhelum and Akora Khattak. Currently PTC has the capacity of producing about 35 billion sticks per annum. During 2006 PTC showed 12.8% growth in sales volume by selling 34.54 billion sticks. PTC is the largest excise tax generator in the private sector in the country. In 2004 alone, PTC paid the government close to Rs.16 Billion in excise and sales taxes.|PAKISTAN TOBACCO COMPANY |

FACTORIESCurrently there are two factories that are performing there operations under PTC. These factories are named as Jhelum and Akora Factory. JHELUM PTC established Jhelum Factory in 1956 which started its operations in 1957. Jhelum is located 100 kilometers in south from Islamabad. Initially the Jhelum factory was working on single shift. Then in 1961 and 1970 it started working on second and third shifts respectively. Currently there

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are 426 employees working in Jhelum Factory. Jhelum Factory has capacity to produce 20 billion sticks per annum. AKORA KHATTAK Akora Factory started its operations in 1976. Akora Factory is situated 100 Kilometers in North from Islamabad. A special thing about Akora Factory is that tobacco leaf is also processed there. Akora Factory fulfills the requirement of local tobacco. It is also working in three shifts same as in Jhelum Factory. Akora Factory has capacity to produce about 20 billion sticks per annum.

CORPORATE STRATEGYPTCs corporate strategy is to gain market leadership in terms of the following three aspects:1. Growth: The focus on competing in terms of their volume share that is the amount of

cigarettes being manufactured.2. Productivity: In terms of productivity they believe and focus on effective utilization of

the given resources and reducing their waste.3. Responsibility: PTC believes that it is their prime duty to carry out their business

activities ethically and morally keeping in mind the interests of all. They give high priority to community services and health and safety issues. KEY OBJECTIVES To regain volume and value leadership by positioning variable brands in all consumer related|PAKISTAN TOBACCO COMPANY |

segments of the market. The focus is on the light segment, ASU 30(adult smokers under 30 years), and premier brands. The established leading positions in markets where it is not already strong. To drive world class standards in products process and services through passionate skilled and confident people To meet stakeholders expectations. To be seen as a responsible company in a controversial industry.

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To meet these objectives, PTC is taking the following initiatives Establish a focused segments and differentiated brand portfolio Create a winning cooperate culture with focus on vision, mission and values. Restructure PTC,s cost base to become competitive locally and globally

VISION First choice for everyone Transform PTC to perform with the speed, flexibility and enterprising sprite of an innovation, consumer-focused company The vision of PTC is to become number one company in terms of quality and quantity and to become the first preference for all its stakeholders.

Operation StrategyThe operation strategy of PTC is linked with their corporate strategy which is to maintain their company with speed and flexibility to become the number one cigarette manufacturer therefore in terms of operations they believe in producing with the least possible cost and are continuously working on findings ways to further reduce it without compromising on their quality in order to gain a competitive edge over its competitors. The strategies of PTC are driven from Central Headquarters. PTC is fully integrated. Following are the departments in operations which are inter-linked with corporate strategy: Security Department, Material Management Department, Engineering Department, IT department, Green Leaf Threshing Department, Primary Manufacturing Department, Secondary Manufacturing Department, Filter Rod Department, and Quality Control Department. Order of ranking for the competitive dimension: 1. Quality(due to tax issues, smuggled item available the cost cannot be reduced therefore the compete with their competitors on the basis of quality) 2. cost (PTC believes in smart spending and aim to gain value addition from each penny spent) 3. Time|PAKISTAN TOBACCO COMPANY |

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4. Flexibility Operations Strategy which result in competitive edge: Its a global company with 180 markets and have a huge area to share ideas and experiences They have the opportunity to learn from the success and failures of other markets The company BATC is very well integrated Diversity and Global integration is the biggest advantage. Their strategies are driven from the center.

PROCESS MANAGEMENTPHASE (I)Leaf Threshing Department Process and deliver quality tobacco satisfying customer demands at minimum supply chain cost. Although tobacco is grown throughout the country, the primary source of this integral raw material is the NWFP where soil and climatic conditions suit tobacco cultivation the most. The province has been the focal point tobacco-related activities and produces around three-fourths of the tobacco leaf grown in the country. The province grows the three most widely used types of tobacco namely, Flue Cured Virginia (FCV), Burley and Nicotiana Rustica (White Patta). Pakistan Tobacco Company, as the largest cigarette manufacturer in Pakistan, has a special|PAKISTAN TOBACCO COMPANY |

relationship with the land and people of the NWFP. The fruit of these activities is that in just 30 years Pakistan became the 5th largest tobacco producer in the world and 4th in highest yield. In 1948, PTC pioneered the cultivation of Virginia tobacco in Pakistan with an average yield per hectare of 861 kg. Through continuous efforts and the hard work put in by our contracted farmers, the yields have increased significantly to 2,400 kg/hectare. Prior to that native varieties like Jati & Motihari were cultivated mainly in the eastern part of Pakistan (Bangladesh). All the Virginia tobacco was imported from the USA & India.

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Flue Cured Virginia tobacco is now the most widely grown and widely used type of cigarette tobacco in Pakistan and the total production of this high value commodity has increased from 23.8 million kgs in 1967-68 to 66 million kgs in 2007. Pakistan is now the 7th largest producer of FCV in the world. The current tobacco production in the country exceeds 100 million kilograms per year, although what is perhaps more important is the types of tobacco grown in the country. Once tobacco is planted, it undergoes a myriad of processes as it moves through the supply chain which converts it into a consumable product worthy of pride.

PHASE (II)There are two departments lie under process department. Primary Manufacturing Department Secondary Manufacturing Department

Following is the process performed by each department. PRIMARY MANUFACTURING DEPARTMENT This department is generally known as PMD. The main function of this department is to produce the blend of tobacco that is required for the manufacturing of a cigarette stick. Different blends are created for each brand, the tobacco is processed and at the end of this stage the dust from the tobacco is separated. Different blends (recipe of brand) for each different brand like Gold Leaf, Gold Flake, and Capstan etc. are mixed with their flavors. Blend of Tobacco is processed in shifts; in each shift 5000 kilogram of Tobacco blend is produced. PMD receives stem and Leaf (Lamina) separately from Leaf Department and process them separately. During the process steam and different flavors added for different blends of Tobacco. At the end Stem and Leaf are mixed with a specific ratio of 80:20. After this the blend of Tobacco that is Cut Tobacco, is stored in Cut Tobacco Store. SECONDARY MANUFACTURING DEPARTMENT This department is commonly known as SMD. SMD is further divided into three subdepartments are that are;|PAKISTAN TOBACCO COMPANY |

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1. Cigarette Making Department CMD receives blend of Tobacco from Cut Tobacco Store and processed it to form a cigarette stick. The process of cigarette making is done through fully automated machines. Protos is the highest capacity machine that is installed in PTC Jhelum Factory. It has capacity of producing 10000 sticks per minute. It has ability of checking the filter, leakage, tobacco, length, level of humidity etc. The machine rejects if it finds any error in length, width, etc. When a cigarette stick is produced it is transferred to Cigarette Packing Department for further processing. 2. Cigarette Packing Department CPD receives cigarette sticks from CMD and packs them in flats. This process of cigarette packing is also done through fully automated machines. GDX-3 is the highest capacity machine that is installed in Jhelum Factory which has the capacity of packing 500 packets per minute. Firstly cigarettes are packed in packets (flats) then ten flats are transformed into an outer. These outers are further packed into a CBC, each CBC contains 10000 sticks. Then these CBCs are transferred to shipping godowns from where they are transferred to Marketing warehouses on demand. 3. Filter Rod Filter rod department works as a subsidiary department to the SMD. The filter rod department prepares the filter rod. The Material Management Department supplies|PAKISTAN TOBACCO COMPANY |

the raw materials, which are mainly acetate Tow, plug warp, till box, hot melt and adhesives. The filter rod is manufactured in two sizes, one is a 54mm and other is 66mm. The filter rod hence produced, is sent to the SMD through filter rod treys. There is machine that adds the filter rod to cigarettes.

PROCESS CHOICESProcess Choices for the above three stages are: Phase 1 is done through a batch process

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Phase 2 and 3 are done through a continuous process The manufacturing is not made to order its made to stock based on volumes

MANAGEMENT OF TECHNOLOGYINFORMATION TECHNOLOGY Information Technology (IT) is to provide business consultancy with a technical infrastructure that enables PTC to perform with speed and flexibility of an integrated virtual team IT is the backbone of every business; with out it concept of successful business is becoming impossible in modern business environment. The information technology does a great work in todays modern industrial world. To be competent and successful every business needs to have a computerized system. Every moderate and large size business needs; o Accurate and timely information|PAKISTAN TOBACCO COMPANY |

o Accurate transfer of information o Processing of data o Proper record keeping For Electronic Data Interchange Minitab is used for the communication between manufacturing plant and head-office. MECHANICAL TECHNOLOGY Latest state of the art machinery is used at PTC Jhelum, which includes:

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Direct conditioning and casing Cylinder-2005 Lamina-Cutting PMD 2005 ITM Dryer PMD 2005 3CC Cylinder GLT Plant is used for segregation of lamina from the stem PROTOS machine G.D X3 is used for multi brand packaging

In1956 they were producing 1000 cigarettes per minute but due to constant innovation of machinery they are now producing10, 000 cigarettes per minute and are packing 500 packs per minute. To bring precision machines are managed for productivity and packaging of each brand) make and package balance Research and Development Their training center comprises of the following: Creating Implementing Managing effective R&D

Currently their T&D department is working on reducing the nick and tar level so that their cigarettes cause less harm to their consumers and is their first preference.|PAKISTAN TOBACCO COMPANY |

TOTAL QUALITY MANAGEMENTAs the name indicates the department checks and ensures the quality of the product at different stages to get the maximum satisfaction of the customer, which is the primary goal of the factory. It mainly deals with P.M.D and S.M.D. This has always been an area of major focus for PTC as they are extremely cautious of their product quality. There was a time when PTC was 12 points behind their major competitor but now through TQM they have now become the market leaders and are 4 points ahead of them.

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ISO 9000 certified Six sigma- they have achieved a green belt MRP (Managing, Resourcing, and Planning) are main functions that the organization is focusing for quality assurance to International standards. i.e. MR II classic certification.

RELATION WITH P.M.D: In P.M.D they find and check three types of parameters; Fill value Moisture Particle size

RELATION WITH S.M.D: In S.M.D finished product inspection (F.P.I) system is followed. It is further sub divided into two branches: M.Q.I: In M.Q.I nine parameters are measured. Parameters are Circumference Weight Filter pressure drop End fall out Cigarette pressure drop Firmness Visual tests Cigarette Packet Outer|PAKISTAN TOBACCO COMPANY |

M.Q.I (Manufacturing quality index) P.Q.I (Product quality index)

Moisture (After packing)

Pack seal P.Q.I

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In P.Q.I there are fourteen parameters. Mostly are same as that of M.Q.I but only two are different which are; NFDPM ( Nicotine free dry particulate matter) Puff Numbers Standard average puff numbers for P.G =8.5 for others brands =9

Machines used for checking Quality Q.T.M (quality test module) Infra Red Lab Rotap machine End Stability Tester Densimeter height (d.m.h) Ovens

CONTINUOUS IMPROVEMENT To focus on continuous improvement PTC is emphasizing on following: Improving quality of Tobacco through R & D department Giving the toll numbers on cigarette packs for feed back from customers Maintaining shelf life of minimum three months

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PHASE - II

CapacityCapacity is the maximum rate of output of a process or a system. Capacity often refers to an upper limit on the rate of output. Different companies have different measures of capacity. Capacity on the basis of output has been divided into two categories as effective capacity and peak or design capacity. Production capacity in Pakistan Tobacco Company is measured in terms of number of sticks produced per annum. Pakistan Tobacco Company has two plants which meets the demand requirements of the country. Total production capacity of both plants is 45 billion sticks per annum this year and is continuously on an increasing trend per year. Akora Khatak plant produces 23 billion sticks per annum whereas Jhelum plant produces 22 billion sticks per annum approximately. This production is carried under effective production capacity. The latest production machine Protos at Jhelum plant produces approximately 8,500 sticks per minute under effective capacity. But whenever the company required increased production, under the peak capacity, the machine Protos can produce 10,000 sticks per minute approximately. Effective capacity is always less than the peak capacity because of certain factors that Pakistan Tobacco Company also faces on its plants. Some of these factors which cause actual output to be usually less than effective capacity are as follows: Attendance o Absenteeism of workers and operators etc Breakdowns o Machine break downs (Machines inefficiencies) o Skill level of employees o Periodic maintenance of equipment o Quality problems|PAKISTAN TOBACCO COMPANY |

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o Lunch breaks, coffee breaks o Stoppages (Time loss) Changing product mix, shortage of materials etc.

Capacity planning:Pakistan Tobacco Company focuses on pull strategy while doing capacity planning. Pakistan Tobacco Company has designed its operations on the basis of made to stock rather than made to order. Because in the Tobacco industry the demand is always high and there is a continuous struggle for meeting the demand. Pakistan Tobacco Company executes its capacity planning on the basis of previous trends in sales. However there is a high demand before budget and demand sharply goes down after budget and in the period of Ramadan. The monthly production plan is prepared at Pakistan Tobacco Company head office based upon market research and previous history. Competitive market analysis also plays a vital role in capacity planning. For the capacity planning according to demand (which is ever increasing) and previous sales trends, Supply chain management department, Production department, Marketing department, Finance department etc. coordinate with each other to forecast the demand and devise the capacity planning and capacity cushions. Planning depends on the availability of buffer stock and things in the pipe line of the supply chain. Pakistan Tobacco Company has its 9-11 days buffer stock available in the warehouses. Different measures of capacity are useful in defining two measures of system effectiveness: efficiency and utilization. Efficiency is the ratio of actual output to effective capacity. Utilization|PAKISTAN TOBACCO COMPANY |

is the ratio of actual output to peak capacity. Pakistan Tobacco Company has Protos machines for cigarette manufacturing which have following efficiency and Utilization ratios: (Production figures are shown as per annum) Efficiency = Actual Output / Effective Capacity Efficiency = 450,000,000/450,000,000 * 100% Utilization = Actual Output / Peak Capacity Utilization = 450,000,000/480,000,000 * 100% = 93.75% = 100%

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Capacity StrategiesCapacity cushion is the amount of reserve capacity a process uses to handle sudden increases in demand or temporary losses in production; it measures the amount by which the average utilization (in terms of total capacity) falls below 100 percent. As the cigarette demand is on increasing trend, so 15% of capacity cushion is enough for Pakistan Tobacco Company. Capacity Cushion = 100% - Utilization Rate (%) Capacity cushion = 100% - 93.75% = 6.25%

ExpansionIn the case of Pakistan Tobacco Company, generally it meets the forecasted demand and it happened rare that the company fell short of supply. The two plants in Jhelum and Akora Khatak are enough to meet the country demand of cigarettes. So wait-and-see strategy is being used whenever needed to meet the demand. Like Jhelum plant has new Protos machines but Akora Khatak consists of old machines whose production capacity is less. This time the short term strategy to expand to meet demand will be to install Protos in Akora Khatak plant aswell.

Capacity RequirementThe capacity requirement is being calculated with the complete coordination of production department, supply chain department, finance department, inventory management and other related departments. Generally, the capacity requirement is measured on the basis of output measures. Output measures are appropriate for high volume processes with little product variety or process divergence. Pakistan Tobacco Company uses demand forecasts for the future capacity requirements. As the demand is on increasing trend, so capacity requirements are also increased accordingly.|PAKISTAN TOBACCO COMPANY |

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LocationLocation considerations are very important for any business. Location decisions represent an integral part of strategic planning process of virtually every organization. Pakistan Tobacco Company also focused on important issues pertaining to location because location decisions often have 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. Pakistan Tobacco Company started its operations in 1947 right after the partition of subcontinent by taking over the business of Imperial Tobacco Company and its plant in Jhelum. Currently Pakistan Tobacco Company has two plants performing the operations in Jhelum and Akora Khatak. Both these plants are used for making cigarettes. The different features of both plants and dominant and secondary factors associated with the location are described as under:

Jhelum FactoryPakistan Tobacco Company acquired Imperial Tobacco Company in 1956 that was incorporated in sub-continent since 1926. Jhelum is located in 100 kilometers in south from Islamabad, the capital of Pakistan. Initially the Jhelum factory was working in single shift and then in 1971 it started working on second and third shifts due to increasing demand. Following are the dominant factors in selection of Jhelum location for Pakistan Tobacco Company:|PAKISTAN TOBACCO COMPANY |

The location is ideal in terms of covering the Punjab and NWFP. Already established infrastructure (Imperial Tobacco Company) Skilled labor with respect to wages (The major workforce at Jhelum plant is of retired Pakistan Army soldiers; as Jhelum has major population serving in Pakistan Army). Reduced supply chain costs and accessibility in central Punjab Jhelum plant is hub for packing material which is imported from Singapore, Indonesia, Philippines, and Japan etc. So easily cover the requirements of both plants in terms of providing packing material.

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Plant on Grand Trunk Road (GT Road).

The brands that are produced in Jhelum plant are: Benson & Hedges John Player Gold Leaf Capstan Gold Flake

Akora Khatak FactoryAkora Khatak factory started its operations in 1976. Akora Factory is situated 100 kilometers in North from Islamabad. A special thing about Akora Khatak factory is that it is situated with Leaf warehouses in NWFP. The cut leaf is shifted to Green leaf threshing (GLT) plant and mixed with specific ratio for different blends and converted into Prized leaf which is then shifted to both plants for manufacturing of cigarettes. So Akora Khatak factory has no such transportation costs for raw materials. The dominant factors for choosing the Akora Khatak plant are as follows:

The leaf threshing department (a whole separate production) is with the Akora Plant, thus saving the transportation costs of Prized leaf. Ideal location for supply in Sindh and Balouchistan. Availability of cheap and skilled labor The feasibility of land and environment Lowered costs i.e. purchased land, raw materials etc. Plant at main road of Noshehra (Grand Trunk Road)|PAKISTAN TOBACCO COMPANY |

The low premium brands produced at Akora Khatak plant are: Capstan Gold Flake Embassy

As there is availability of high-tech machines so setting up a new plant is not feasible in case of high demand. By replacing the machines could overcome the issue of high demand only if

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required. But the following dominant and secondary factors are considered by Pakistan Tobacco Company, if at any point in time, in future, they have to establish a new plant: Dominant Factors

Proximity to raw material: Prized Leaf (Because prized leaf is blend mixed and costs more than normal leaf, so it is most important of its safe supply) Skilled Labor (Labor is the major resource for effectively and efficiently carrying out the business operations) Investment and costs

Secondary Factors Location as peaceful, secure and legally protected (Current condition) Proximity to markets Real estate costs

Team workEfficient and effective team work plays a vital role in the continuous growth and success of the company. Pakistan Tobacco Company, thats why, emphasize on team work and coordination. The departments in Head office Islamabad coordinate with each other in terms of planning, production, and forecasting, financing, marketing and all other strategic issues.

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LayoutLayout decisions are important for the three reasons: (1) they require substantial investments of money and effort, (2) they involve long term commitments, which makes mistakes difficult to overcome and (3) they have significant impact on the cost and efficiency of short term operations. Pakistan Tobacco Company has built the lay out in such a way to avoid inefficient operations or accidents. As for the project of course Operations & Productions Management we have selected Jhelum plant of Pakistan Tobacco Company and visited the plant location and studied the layout. Layouts are generally of four types: Product layout, Process Layout, Fixed position Layout and Hybrid Layout. The Jhelum plant of Pakistan Tobacco Company has operations under process layout rather than product layout for continuous flow of material. Process layout is that which can handle varied processing requirements. The processing of raw material until its finished form occurs in a forward straight path as shown in figure in Annex - A. The raw material is brought in Primary Manufacturing Department, from after blending and mixing of leaf and stem, it is kept in cold room. Then these wooden boxes of mixtures for cigarettes are moved to Secondary Manufacturing Department where cigarette making section, filter rod and cigarette packing sections helps in making finished products.

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ConclusionAll the activities carried out at Pakistan Tobacco Company are well planned and are adjusting to Political Legal environment, Cultural Environment, Technological environment and other related strategic issues. British American Tobacco Company is giant of the World in cigarette manufacturing industry and is following the best operating procedures to enhance the business. The management team at Pakistan Tobacco Company and workforce in both plants are well competent to carry out the industry operations effectively. We visited the Jhelum plant of Pakistan Tobacco Company and understood how effectively each operation within plant has been carrying out by the employees. The practical view and understanding has been related with theory of operations and production management and the concepts have been cleared.

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Recommendations Reduction in tobacco wastages must be addressed. Growth of brands and volumes. Productivity enhancement and reduction in stoppages Low brand margins. Low skill level of master technicians Low education and skill level of employees for advanced machinery Unstable inventory level because of before time and pending deliveries Service level of local suppliers for PTC must be improved in order to reduce the problems related to quality

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Action Plans Raw material must be handled with care by the employees. Workers must be specifically trained to carry out the activities effectively and minimize the wastage of raw material. The machinery in Primary Manufacturing Department in which leaf and stem are separated are locally manufactured and needed to be replaced with efficient and latest machines.

As the current situation of inflation in the Pakistan, PTC should introduce new brands of lower costs and accessible to lower income level people. This will cause to keep the volume growing and enhance the shares and profits.

Production schedules, availability of raw material, activities with in plant, employees training and machines maintenance schedules must be carried out effectively to avoid stoppages and breakdowns during production.

As the new machinery is being imported from other countries with the passage of time, similarly employees must be given training according to that. Technical engineers must get training of latest machines to avoid problems during production.

All the departments in Head Office of Pakistan Tobacco Company which is in Islamabad must be coordinated with production managers and technical personnel at both plants in Jhelum and Akora Khatak to accurately forecast the demand fluctuations and handle the

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increasing demand. This will help to avoid excessive inventory stocks and decrease inventory costs.

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BibliographyPrimary Data: Visit to plant: Pakistan Tobacco Company, Jhelum Plant

Secondary Data: www.ptc.com.pk www.bat.com www.google.com/PTC www.wikipedia.com

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Annex A (deleted)

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