e 2015Pakistan Tobacco Company Akora Khattak Factory

Department of Management SciencesCOMSATS Institute of Information Technology, Attock[ ]

Pakistan Tobacco Company,Akora Khattak Factory

ACKNOWLEDGEMENT

At the very outset, I am grateful to Almighty Allah for giving me the opportunity, strength and ability to accomplish the internship program. Firstly, I would like to express my thanks to my internship line manager Mr. Kamil Shahzad (HR Manager) for his daily guidance and his outstanding support regarding my project.Secondly, I would like to show my gratitude to Mian Hameed (HR Senior manager) who willingly took responsibility and gave me a lot of time and support on each and every step.I am grateful to HR Department and Logistic Department for helping me to get the information. Last but not the least would like to thank my friends, family members and all those people who helped me for the completion and deeper understanding of the project .Working on this project was an enlightening experience for me.

Authors NoteBeing a part of Pakistan Tobacco Company (PTC) (at least for few weeks), a well reputed multinational organization is a great privilege for me. These 6 weeks internship not only gave me technical knowledge but also helped me to improve both professionally & personallyThis report gives full details of what I have learnt during my internship in HR department (AKF). is a big factory and is a right place to learn technical and practically both.In PTC an internee is assigned a project which he/she has to complete with in assigned time, so I was also assigned a project that was Managing Performance at PTC, : Performance AppraisalAs the technology is growing the man is becoming a human machine. This means he has to perform a lot of tasks within short time, similar is case for engineers they have to design, implement, run and maintain the machines which require a lot of time. To increase the efficiency they create some standards and according to those standards they manage their work and machines. They have a record of that standardized data which is always with them for any assistance. This data is about different steps of this process e.g. from feeding to delivery end all the steps are included in this.I studied, analyzed and presented the data of Yield Reconciliation and all the steps of Yield Reconciliation which is followed and not followed in GLT and highlighted the Gaps and gave Recommendations. My presentation is given in appendix 1. You can refer to it for the summary of internship. T presented this to the management.

FORWARDThe purpose of this report is to give an overview of what I have done and learned, during period of my internship in PTC (AKF). This report primarily focuses on the Managing Performance at PTC, project assigned to me. It also gives overview of PTC.

PREFACE OF THE REPORT

Internship program is a prerequisite for all universities bachelors degree. It is an opportunity for the students to know about the practical environment of the real business world. I had the opportunity to work as interns at HR Department of Pakistan Tobacco Company, Akora Khattak Factory. Managing Performance at PTC,.The findings from this project will help factory management in further decision making, to improve the productivity.

Table of ContentsACKNOWLEDGEMENT2PREFACE OF THE REPORT5Chapter # 18PAKISTAN TOBACCO COMPANY81.1 INTODUCTION TO THE ORGANIZATION81.2 PAKISTAN TOBACCO COMPANY91.3 History of Pakistan Tobacco Company91.4 Vision, Mission, and strategies10Strategic objectives of Pakistan Tobacco Company111.5 Product Line of Pakistan Tobacco Company151.5.1 Upper slap161.5.2 Middle Slap161.5.3 Lower Slap171.6 MAIN BRANDS171.7 SWOT Analysis191.7.1 Strengths191.7.2 Weaknesses191.7.3 Opportunities191.7.4 Threats20Chapter # 221HRM DEPARTMENT AT PTC212.1 HR Mission Statements at PTC:212.2 Human Resource Strategies212.3 Different HR Practices at PTC:222. 3.1 Recruitment and Selection at PTC:222.3.2 Internal Recruitment:222.3.3 External Recruitment:232.4 Hierarchy of HR Department27Chapter # 328OVERVIEW OF AKORA KHATTAK FACTORY / THE SUPPLY CHAIN FUNCTION283.1 A complete overview of PTC Supply Chain Function283.2 LEAF / LEAF Agronomy Department283.3 Green Leaf Threshing Department (GLT):293.3.1 Introduction:293.3.2 Objectives303.3.3 Functions of GLT:303.3.4 GLT Process:313.3.5 Operational Sequences of the GLT Plant:323.4 GLT PLANT333.5 Primary Manufacturing Department (PMD)343.6 SECONDARY MANUFACTURING DEPARTMENT:35Chapter # 4364.1 Purpose of Performance Management System in PTC364.2 Performance Management in PTC364.3 Managing work374.5 Recommendations:39Chapter # 641Drawbacks, Recommendations416.1DRAWBACKS416.2 Recommendations:42CHAPTER-7437.1 CONCLUSION43Refrences45

Chapter # 1PAKISTAN TOBACCO COMPANY

1.1 INTODUCTION TO THE ORGANIZATIONThe business of British American Tobacco was originally established in 1902. When to end an intense trade war. The imperial Tobacco Company of the United Kingdom and the American Tobacco Company of the United States agreed to form a joint venture, the British American Tobacco Company Limited.The BAT business began life in countries as diverse as Canada, china, japan, Denmark ,Germany, New Zarland, south Africa and Australia-but not the UK or the USA, By 1910,its operations had extended to the west Indies, India, Ceylon (now Sri lanka).East Africa ,java ,Malaya (Now Malaysia) and Nigeria. BAT listed on the London stock Exchange in 1912 and British investors acquired most of the American parents shares.BAT held strong market position around the world and had leadership in more than 50 markets. Since 1994, the group has grown global market share from 10.7 percent to over 15 percent. BAT has 86 functions in 64 countries. BAT uses more than 700 million kilos of tobacco and has 25 leaf growing projects and 23 leaf processing plants, with over 300 brands in BAT portfolio and a market share of 15 percent, make the cigarette chosen by one in seven of the worlds one billion adult smokers.BAT differentiated portfolio of brands included Ill established international brands such as Lucky Strike, Kent, Dunhill, Benson & Hedges, 555, viceroy, Pall Mall, John Player Gold Leaf (JPGL). BAT is the second largest quoted tobacco group with annual shipment of more than 800 billion cigarettes.

1.2 PAKISTAN TOBACCO COMPANY Pakistan Tobacco Company is the first- Multinational Company of Pakistan and recently completed 60 years of its operations in the country. The company is the member of multinational British American Tobacco group, which employs over 100,000 people, operates in 180 countries and is one of the top 5 FMCG trade marketing companies in the world.

1.3 History of Pakistan Tobacco CompanyPTC was incorporated in Pakistan and is listed on the three stock exchanges of the country.it was established in the same year when Pakistan took its birth in 1947, and took over the business of imperial Tobacco Company (India). It had three branches Karachi, Jhelum and Akora Khattak, but Karachi factory however has been closed since 1992 due to heavy losses and some other reasons. The first plant was set in warehouse in Karachi port with monthly production of 30 million cigarettes against sales of 60 million, the gaps being filled up by import. When Pakistan came into being all tobacco was imported in for production of cigerattes.But in 1952, a development project was initiated in N.W.F.P and the top quality American Tobacco found way to Pakistan. A factory was established in 1955 at Jhelum, and PTC becomes a Public Limited Company in the same year. In 1975 a new cigarette factory was set up at Akora khattak to, meet the increasing demand. Akora khattak factory is now one of the largest factories of N.W.F.P. Pakistan Tobacco Company has divided the whole country into 5 regions (Central Punjab, Southern Punjab, northern Punjab Region, and Lower Sindh).within each region, there are five to six areas, and each area is further sub-divided into direct delivery and wholesale. In total, the company has five regions, 22 areas, 355 distribute sand 12 area warehouses. After six years of serial losses (1997-2002), Pakistan Tobacco Company Limited has managed to swing back to a profit of 354 million in 2001. The accounts for the six months to end-June 2002, released recently, show 2% slip in the top line to Rs10.8 billion for the corresponding period of last year.Pre-tax profit, nonetheless, rose sharply by 175% to Rs.415 million, from Rs.152 million and after tax profit should growth of 92% to Rs.248 million, from Rs.129 million. New products introduced during the past two years accounted for 33% of PTCs sales during the six months under review, during which the company said to have unparalleled performance in new product innovation in the cigarette industry. The company has continued to claim that five out of the five top selling brands in Pakistan are those of PTC.They include Gold Flake,Capstan,John players Gold Leaf and Embassy. The company had paid the last cost dividend in 1995.The 10-rupee share in PTC hit its record high at Rs.162 in 1994. The prize slipped over the year to hit the lowest Rs.8.50 in 2000; but the stock has now recovered to Rs.60.25. The board didnt declare a dividend for shareholders for 2001 and used all of the profit to wipe out the huge accumulated deficit of Rs.337million on the balance sheet. But the important thing is that the shareholders equity is back in the black.at end June 2002, shareholders equity

Amounted to Rs.2.820 billion, with Rs.2.555 billion being the paid up capital. For PTC , it isnt still a smooth journey I reiterate that tax evading sector remains a major threat to the government revenue and to my business, directors complain in their half term report, adding that the steps taken by the governments in the past to check evasion had been encouraging. However, recent increase in activities of the tax-evading sector was stated to be alarming; the company urging government support in the matter.

1.4 Vision, Mission, and strategies Vision First choice for everyone

Mission Transform PTC to perform with speed, flexibility and enterprising spirit of an innovative, consumer focused company with a long vision of becoming the FIRST choice for everyone

Key Objectives Drive with standards in products, process and services through passion, skilled and confident people. Strive to meet stakeholder expectation. Strategic objectives of Pakistan Tobacco Company My strategy reflects vision, being the champions of growth productivity, responsibility and the wining organization.

Business PrinciplesPTC follows three fundamental business principles:1. Mutual Benefits2. Responsible Product Stewardship3. Good corporate Conduct each Principle is supported by a series of core Beliefs Which are explained below:Mutual Benefits:The principle of mutual benefits is the basis on which I build my relationship with my stakeholders. I are primarily in business to build long term shareholder value and I believed the best way to do this to understand and take account of the needs and desires of all my stakeholders.Core Beliefs Creating long term shareholder value. Engaging constructively my stakeholder. Creating inspiring my environment of my people. Adding value to the communities in which I operate.

Responsible product stewardshipThe principle of responsible stewardship is the basis on which I meet consumer demand for legal product that, put simply, is cause of serious disease, Therefore, my products and brands should be developed, manufacture and marked in a responsible manner. I aspire to develop tobacco products with critical mass appeal that will, over time, be organized by specific and regulatory authorities as posing substantially reduced risks to health.Core Beliefs Provision of accurate, clear health messages about risks of tobacco consumption. Reduction of health impact of tobacco consumption whilst respecting the right of informed adults to choose the products they prefer. Continued availability of relevant and meaningful information about my products. Underage people should not consume tobacco. Responsible marketing of my brands and products and directed at adult consumer. Appropriate taxation of tobacco products and elimination of illicit trade. Regulation that balances the interests of all sections of society, including tobacco consumers and the tobacco industry.Good Corporate ConductThe principle of good corporative Conduct Id the basis on which all my business should be managed. Business success brings with it an obligation for high standards of behavior and integrity in everything I do and whenever I operate. These standards should not be compromised for the sake results.Core Beliefs My business upholds high standards of behavior and integrity. High standards of corporate social responsibility to be promote within the tobacco industry. Universally recognized fundamental human rights to be respected. Tobacco industry to have a voice in the formation of government policies affecting it. Achieving world class standards of environmental performance.Guiding principles PTC follow fmy guiding principle that represents:1) Strength from diversity 2) Open minded3) Freedom through Responsibility4) Enterprising spiritMy guiding principles describe the organization I are and the type of organization I want to be. They represent the common value at the heart of my success.

Strength from diversityStrength from diversity reflects the culture mix within the company and the work environment that respects employees individual differences. It also reflects my vision of harnessing diversity of people, cultures, viewpoints, brands, markets and ideas.

Open minded Open minded reflects my openers to change, opportunities and new ideas, including ways of addressing regulatory issue and changing social expectations. I seek to listen without prejudice, actively and genuinely considering other view points.

Freedom through ResponsibilityFreedom through responsibility desires how to make decisions: as close to the consumer to the consumer as possible. It also affirms my belief that decision-makers should accept responsibility for their own decisions.

Enterprising spiritEnterprising spirit has been a characteristic of my business for more than a century. It is to reflected my ability to grow my business and its value within challenging environments-in the confidence to seek my opportunities for success, to strive for innovation and to accept considered risk-taking as a part of doing business.

Business Process Re-Engineering Appreciating the importance to change the status quo for continuous improvement and deliver strong business results in a sustainable way, PTC has always been on the lookout for opportunities to enhance the speed, efficiency and reliability of PTCs process, several BPR projects Ire undertaken during 2006 and 2007 including the setting up of the enterprise program office (EPO), projects slender at Akora Khattak Factory and the supply chain operations References (SCOR) model implementation. EPO puts in place a new way working, which keeps corporate strategy at the forefront and ensure all the initiatives are aligned to support the strategy through effective program management and allocates resources to the best fit priority areas. Project slender entails relocation and resources, changing the layout of production floor in a way to boost process effectiveness and achieve higher productivity without employing Additional resources SCOR model is being implemented all across the supply chain i.e. from seed to smoke, for achieving cost optimization and improved process efficiencies.

Corporate social responsibilityPTC has been at the front of CSR subsequent to its initiatives of a forestation, mobile free dispensaries, eye via Layton Rehmutullah Benevolent Trust, Leering resources Center, non-formal education through the NGO adult basic education society, supporting citizens foundation to prove educational facilities for the children and installation of water filtration units. Rehabilitation of earth quack Affecters in Battagram, inaugurated in September 2006. In November 2006 PTC under look a project to combat the spread of viral hepatitis in northern Areas. In 2005 PTC become the first company in Pakistan to publish a duly audited social report. Second cycle of the social reporting dialogue, based on issues identified in the stakeholders mapping classification exercise, was competed in November 2006 and the social report is planned for the publication in early 2008. Best practices of good corporate conduct governance being adhered to include producing an annual report that provides quality information to all stakeholders.Environment, Health and Safety (EH&S) Being fully alive its role as a responsible corporate citizen PTC has implemented a Ill-structured EH&S program in addition to embedding internationally recognized best practices, PTC is committed to ensure that it nurture an environment where its employees and surrounding communities are safe from any hazards that may affect their health and minimize the impact of its operation on biodiversity. PTCs commitment to EH&S was further strengthened during 2006 as PTC achieved significant improvement on the EH&S road map. Both its production facilities Ire rectified with ISO 14001 earning the Evergreen status. PTC has consistently sustained its accreditation in last seven surveillance audits with zero major and Minor points. PTCs efforts has further been sustained with National Forum for Environment & Health awarding PTC the Annual Environment Excellence award on Health safety and Environment . For the second consecutive

Year in 2006. Throughout the companys history. It has maintained a strong stance on corporate and social responsibility; it strongly believes effective and constructive partnership with communities by helping address various EH&S issues.Over the year the company has invested substantial resources in terms of finances and man poIr in various initiatives like mobile free dispensaries, Learning Resources Center and portable water. Environment, Health & Safety (EH&S) policy:It is PTCs policy to: Provide and maintain a safe and healthy working environment including use of cleaner technologies and safe system of all its employees and non-company personnel on the company premises. Pay due regard to all impact of its activities on the physical environment. Comply with all applicable national laws and regulations BAT policy pertaining to environment Health and Safety. Establish procedure to regularly assess and reviewing the EH&S performance. Adopt a proactive role to continually identify cost effective measure, which it can take to reduce pollution, safeguard the health and safety of its employees, non-company personnel on company premises, the neighboring communities and the physical environment.

1.5 Product Line of Pakistan Tobacco Company The PTC have a stretched product line covered every segment but comparative to its competitor its loIr segment is very short. PTC generates most of its revenue from middle slap the following are the product line segmented into upper slap, middle slap, and loIr slap.1.5.1 Upper slap Benson & Hedges 20HL Benson & Hedges 10HL Benson & Hedges light Gold Leaf 20HL Gold Leaf 10HL Gold Leaf flavor

1.5.2 Middle Slap Capstan int. KSFT 20HL Capstan int. KSFT 10HL Capstan LSFT 10 SS Capstan by pall mall 20HL Capstan by pall mall 10HL Wills king 20 HL Wills Navy Cut 10SS Will international 20HL Wills international 10HL Gold Flake 20SC Gold Flake 10HL Gold Flake 20 HL Gold Flake Supreme 10HL Gold Flake Supreme 20HL

1.5.3 Lower Slap Embassy kings 20HL Embassy king 10HL Embassy 10SSThe cigarettes are packed in two different style boxes. They are called Sheel in side (SS), Henge led (HL), the interesting thing is that the different plants are installed for the both style packing. Sheel in Slide is imported while Henge led is made in the factory.1.6 MAIN BRANDSPTC has always considered itself a consumer focused company. They aim to offer a product that excels in all aspects and exceeds the expectations of the consumer. PTC has particular emphasis on its five national drive brands.

Benson & HedgesIn 1873 Richard Benson and William Hedges started a partnership in London. From the very start, the idea was to make Benson a style statement, which is why the business started from Londons fashionable 1st End. PTC launched Benson & Hedges in Pakistan in 2003. Made with the finest hand-picked golden Virginia tobacco from across three continents, the brand is packed with perfection to seal its freshness. The objective of introducing the brand his brand is to establish the locally manufactured B&H light is the most preferred offer amongst consumers, in the premium lights segment and to add image to the B&H family by offering avoider product range. It was launched in the three metros of Karachi, Lahore, Islamabad and Rawalpindi.JOHN PLAYER GOLD LEAF:The story of john player Gold leaf has to start from the story of its founder, john player. An enterprising businessman, john player started a small tobacco selling business in 1877 and turned it into a thriving cigarette company, John player and sons With a distinct lifebuoy and sailor trademark john player Gold Leaf has an identity entrenched in salling and maritime adventure. Thus staying true to john players very first big brand Players Gold Leaf Navy Cut Cigarettes. Gold Leaf is the key value and the volume contributor for PTC. It remains the most aspire brand in Pakistan. From 2000, the brand is showing continuously growth.

CapstanCapstan has a rich heritage, organizing in Britain in the 19th century. The brand was created under the auspices of W.D & H.O WILLS and London. Capstan has grown by leaps and bound to become the fastest growing brand of Pakistan Tobacco Company (PTC) in the year 2001, recording a straggling growth rate of 104% overtaking sales volume of the major competitive brand in the Carly part of the year, And consistently outselling it throughout.Gold FlakeGold Flake, like many of ur brand also boasts its origins at W.D & H.O. WILLS where it was a premium brand took off the end of the 19th century. Launched in 1982, in a soft cup packing, the brand took off when it was repositioned in the value for money segment and later a hinge lid variant was introduced in 2000. Gold Flake is PTCs largest brand in volume terms and is also a significant contributor towards the value share. A highly successful pack design change In 2004, soon after the new pack was launched in the market and Gold Flake smokers accept the new design of the pack, at this point an aggressive promotion in the market that would ensure the maximum exposure of competition smoker to the new pack. There are three new variants Ire added into the family; Gold Flake 14HL, Gold Flake 10HL, and Gold flake 10SC, in order to offer the consumers a wider choice.Wills King WILLS take its new name from the heritage of one of the original Imperial Tobacco Company Families; the Wills Brothers of London, Wills is also a Ill-known brand in Pakistan. EmbassyThe third leading volume brand in Pakistan is the most popular in the Punjab where it enjoys a leading position due to its equity and loyalty. Embassy continued its growth in the year 2001 fortifying its position in the market. The brand registered a growth of 3% over in 2000. Major focus during the year remained on the introduction of more extended relevant packaging variants. In the third quarter of 2001 the brand family was extended with the introduction of Embassy filter 16ss pack followed by Embassy kings 14HL. With the launch of these variants, the family now offers more choice its consumer at affordable price.1.7 SWOT Analysis

1.7.1 StrengthsIn the analysis of the Strengths of the company we focused on the competencies of the PTC its entirety. Continuous learning and improvement. Sustainable growth. Environmental standards achievement. Market leadership in the world. being beneficial to the community (Corporate Social Responsibility) Diversified workforce and environment. technologically advanced machinery and equipments. Good salaries packages. Focus on health and safety on the company premises. Training and development of its employees.1.7.2 Weaknesses Salaries difference between workers who work more and the one who put minimum efforts. Technological advancement would decrease the workforce and unemployment will increase. Very minimum marketing as compare to its competitors. Workers are always under threat because of downsizing.Improper distribution of work.1.7.3 Opportunities Greater opportunity of promoting lower brands in rural region. PTC has the potential to further improve the cost reduction method. Create a better work environment in GLT department because of more hazards in this department. lowering the downsizing will create a good image in the eye of regulatory authorities and government. Focus on its key brands i.e. high growth like Gold Flack this years growth was around 27%. Export of premium brands.

1.7.4 Threats Some of its competitors are also producing high quality brands like Marlboro byLackson.internationally some countries are continuously promoting anti-smoking slogans like the ban of smoking in Bhutan in 2002. Better marketing campaigns by rivals.Their well-established brands are highly copied by some local manufacturer.The political, economic situation is not stable in Pakistan. Limitation of their product, Decline in tobacco growth

Chapter # 2 HRM DEPARTMENT AT PTC

2.1 HR Mission Statements at PTC:

To leads the organization in enhancing its human capital and creating a winning environment where everyone enjoys contributing to the best of ones ability.PTC will achieve this by: 1. Inspiring and motivation its people 2. Development its people to strive for higher standards.3. Driving an open minded and enterprising corporate culture where people through leadership at all levels dare to dream, dare to try , dare to fail and dare to succeed.4. Attracting and recruiting the best talent.2.2 Human Resource StrategiesHuman resource department will continue its effort towards nurturing an winning corporate culture and building organizational capabilities by ensuring that its people at all levels are both able and willing to perform at consistently exceptional levels. At PTC the people have been employed to a large degree by minimizing out dated rules/regulations and plan to further eliminate the bureaucratic barriers to capitalize on their ingenuity and talent. The top team Continue to play its role in providing the guidance and support to people at all levels. The HR (people) function ensures that it leads the transformational change by nurturing a climate, which would help in converting the huge potential at disposal of the company into world-class performance.The active and effective role played by HR in people development at different levels organizational, departmental and individual is considered in PTC to be one of the most critical factors leading to the development of winning corporate cultures. The effort continues to be directed towards developing the skills of the shop floor employees, improving competencies of Business Support Officers (BSO), and enhancing the leadership qualities of managers. 2.3 Different HR Practices at PTC:These are few of the HR practices that I have learned at PTC from my resource person. 1. Recruitment & Selection process 2. Performance appraisal3. Training & Development 4. Reward Management5. Employee Discipline2. 3.1 Recruitment and Selection at PTC:In PTC, the activity to fill a vacancy or a new job starts with the requirement communicated by the respective managers to the HR department. The HR department then looks for the possibilities of internal and external recruitment.2.3.2 Internal Recruitment:In PTC, internal recruitment is done for the managers of the higher grade and directors. When position is vacant, the HR department views the past performance of the people working at loIr levels than the vacant position and chooses the right person who is promoted to that position. At the director level, the internal recruitment process is from PTC or from any other subsidiary of BAT. The decision of recruiting a director from a subsidiary of BAT is not in the hands of the HR department of PTC or any of the PTC executives. The directors are allocated form the Asian office of BAT.2.3.3 External Recruitment:For external recruitment in PTC, the line managers are required to make a requisition form for the job in which they have to mention their need taking in account the budget for establishment and salaries for the position of Management, Business Support Officers and Workers. Role profile for the specified job is also prepared matching up the requirement and the grade of the job. Training period is also specified on the requisition form. This process is given a total of 7 days. The requisition form along with the role profile is sent by the line manager to the functional director for his approval and then forwarded to HR Manager. The HR manager confirms the availability of budgets required for establishment, salaries and cost of advertisement for the job. After all this,

the Requisition form along with the job profile and the budget forecast is sent to the JR Director for his final approval. This process if required to be done in 2 days time.After approval from the HR director the HR manager and the line manager Work hand in hand to prepare job and person specifications for advertising or giving to the head hunters. They are given a total of three days time to do that.The sources that PTC uses to attract applicants are:a) inviting applications through advertisement b) Key campusesc) Recommendations from the head huntersd) Application obtained from the data bank of PTC where direct application are received from time to time

This process is given a total of 5 days. PTC is also indulged in the marketing of their company as being a good employer by the process which they call the Campus Marketing Campaign. The objective of PTC by doing this is to attract the best graduates from the related areas of education by increasing Awareness about PTC and BAT and to establish the companys brand name as the leading employer. For this, they have selected some key universities,which they target for the campus Marketing Campaign. The universities targeted for attracting business students and engineers are:a. IBA Karachib. LUMS Lahorec. QAU Islamabadd. NUST Rawalpindie. UET Lahoref. UET Peshawarg. G. GIKI Topeh. H.NUST Rawalpindii. Bahrain Islamabad

The universities targeted for attracting masters in tobacco leaf growing are: 1. Agriculture University Faisalabad 2. Agriculture University PeshawarGraduate Recruitment teams are made which have the responsibility of recruiting new personnel to PTC. These teams are also responsible for the Campus Marketing Campaigns. Each team has a leader and the HR managers are responsible to provide administrative support to the recruitment team leaders and are HR managers themselves are the members of these teams.For business schools, the recruitment team leader is a grade 36 manager from Marketing or Finance department. For UET Lahore and NUST, the Factory Manager of the Jhelum Factory is made the team leader and for UET Peshawar the Factory Manager of Akora Khattak Factory is made the team leader. In the same way for GIK Topi, the IT Manager,for Agriculture University Faisalabad, the Crop Manager and for Agriculture University Peshawar the leaf manager are made the recruitment team leaders respectively.A two year marketing plan for each campus is made in which different strategies are formulated to attract different target audiences. PTC has made different marketing plans for the 1. Faculty 2. Student Organization 3. Prospective MBAsThe marketing plan covers the following activities1. Company and career presentation2. Internships3. Sponsorships Student events4. Campus Advertising in magazines,journels and graduate directory to establish PTC and BAT employer brand name5. Organizing Lectures and Training Programs6. Direct mail shots

After a substantial amount of applications have been received, the line and the HR manager again work together for a total of 10 days to shortlist the applications. This is done carefully going through all the application and by giving different weightage to the following criteriaa. Quality of early schoolingb. Grade obtainedc. Extra-Curricular activitiesd. Overseas travel and educatione. Agef. Target Universityg. Relevant experienceThe HR department then issue call letters to the short listed candidates along with blank application forms by date, time and venue for the preliminary interview is advised and candidates are asked to bring along completed application forms. A two-member panel of HR and line management carries out competency-based interviews focusing on functional skills and managerial and supervisory skills. The process is again given a total of 10 days.After the preliminary interviews are cleared people applying for different jobs and tested different ways. In case of management, Assessment Centers are organized for recruitment. Assessment material is provided by BAT which is composed of case studies followed by discussions among the applicants. The following management competencies are assessed by a panel of cross functional assessors:1. Communication skills2. Resource management3. Rational decision making4. Influencing5. Creative thinking6. Business development

The HR department is responsible for overall administration of the assessment center including training of the assessors. In case of Business Support Officers selection tests are designed to assess functional, intelligence, writing and numerical ability. The line and HR managers prepare the test papers. AH4 test is currently being used to assess basic intelligence, language and numeric ability.PTC makes sure that the candidates reporting for test from outside the city are reimbursed air, train or bus fares. In case of workers, HR administers written aptitude and mechanical comprehension tests in conjunction with line managers. Management focuses to finish all this in 15 days.After all the tests, the candidates are again short-listed for the final interviews. The short-listing of the candidates is based on their performance on the secondary stage of the recruitment and selection procedure. Date and time for the final interviews is fixed with the selection board and call up letters is sent to the candidates.Candidates reporting for the final interviews from outside the city are reimbursed air, train or bus fares where considered appropriate. The final interviews take a total of 7 days.The candidates selected after final interviews are referred to PTCs nominated doctor for medical examination. The doctor sends his medical report to HR department. Candidates declared medically fit are made an offer. The HR department provides details of remuneration package and terms and condition of service. The HR department also prepares appointment letter, service agreement and finalizes other documentation for service record.

2.4 Hierarchy of HR DepartmentHR ManagerHR Admin Officer HR ManagerAssistant HR manager Assistant HR manager Assistant HR manager leaf & GLT HR Welfare Officer HR Legal Affairs Unionized Employee UUnionized Employee nionized Employee Unionized Employee

Chapter # 3 OVERVIEW OF AKORA KHATTAK FACTORY / THE SUPPLY CHAIN FUNCTION

3.1 A complete overview of PTC Supply Chain FunctionThe following lines describes the complete period function of PTC supply chain in proceeding order starting from the LEAF and the ending up with the finest quality cigarette sticks of the cigarette Factory.3.2 LEAF / LEAF Agronomy Department The very first stage of the PTC Supply chain function is to collect the cured tobacco leaves from the PTC Leaf depots in the field areas of NWFP and Punjab. Basically, there are two techniques for curing the raw tobacco leaves.a) F.C.V (Flue Cured Virginia)b) S.C.V (Sun Cured Virginia)The tobacco lots are cured in the PTC Leaf depots in the areas of ;A. Plain Areasa. Shergarh Regionb. Yar Husain Region

B. Development Areasa. Mansehra Regionb. Buner Region

C. Punjab Regiona. Gujarat Region b. Mianwali Region

Moreover; the following Leaf Varieties are procured for making of different cigarette brands: W.PW.P also known as White Patta in local slang is a vastly cropped brand in the local tobacco fields of KPK. D.A.CDark Aired Cured Virginia is another good class of tobacco cigarretized for good brands BURLAYBurlay is another local type of tobacco leaf which is grown extensively in the regions of Swat KPK.Before the tobacco crop is purchased by the PTC, The leaf Agronomy department at PTC AKF checks different parameters of the samples taken from each and every lot of the particular crop. The quality parameters including chemical and smoke analysis are verily and thus the crop is declared variable for further processing.Tobacco in the form of leaf lots of leaf after curing and sample testing packed and sent to both the PTC Akora Khattak and Jhelum factories.3.3 Green Leaf Threshing Department (GLT):3.3.1 Introduction: The main function of GLT is to separate the stem and lamina. Stem and lamina are important in manufacturing of cigarette. Lamina is used for taste and stem is used to hold the lamina in cigarette. Stem has no taste. For example if company uses 80%of lamina than 20% of stem will be used.The price of lamina in the market is higher than the price of the stem, for example if the price of lamina is 120 than the price of stem will be 20.Dust is collected during the process with the help of dust collectors and in sold in the market. This dust is used in fertilizers; low standard or scrap is also separated and sold to those companies, who manufacture low standard cigarettes. The workers working in GLT and the visitors use air plugs and pollution resistance masks as a precaution. About 120 to 150 workers work in GLT.

After processing stem and lamina, these are packed separately in C-48 cases.3.3.2 ObjectivesThe objectives of plant are:I. Cleaning II. MoisturizingIII. Threshing and Classification of Tobacco Leaf A Tobacco Leaf Consists of two major componentsI. Stem II. Lamina Both are processed separately. Both are passed through the same procedure and machinery. The GLT plant machinery has been adjusted in two lines.I. Line 1II. Line 2Capacity of each line is 8000kg/hr.the tobacco bales that comes to GLT Plant have different grades, different grades means they have different constituents of different proportions, to select a suitable grade for processing Pakistan Tobacco Company has a blending department, the responsibility of blending department is to select grades which means their quality standards which are ready defined, they choose suitable grades for process in GLT Plant.3.3.3 Functions of GLT: Both lamina and stem are separated from tobacco leaf in GLT. Following percentages get from tobacco leaf in GLTLamina = 70%Stem = 20%Dust = 3 to 4%Moisture = 6 to 7%

The price of lamina is high in market while the price of stem is low in the same market. So the aim of GLT is to high the production of lamina. Another function of GLT is to maintain moisture because high moisture creates the problem of fungus namely called Mould. While on the other hand low moisture creates the problem of converting the leaf in the form of powder. Another function of GLT is to remove the dust from tobacco leaf and sell it in the market. Another function of GLT is to separate the scrap and it in the market.

3.3.4 GLT Process: Tobacco leaf is put on feeding platform according to the grades. Then it is shifted to the conveyer belt. On this stage dust is collected through dust collectors. Searchers on picking area to remove impurities from leaf Then leaf is conditioned in conditioning cylinders. After conditioning leaf comes to process in threshers. After threshing the lamina and stem are classified with the help of air lift. After classification lamina is dried in lamina dryer and stem is dried in stem dryer. After drying lamina and stem, both are shifted to press and here both are packed separately. After packing these are shifted to PLS.In GLT, the STEM and LAMINA are separated from the tobacco leaves and grading is done on the basis of Nicotine Chemistry.

3.3.5 Operational Sequences of the GLT Plant:GLT Plant receives tobacco leaves from leaf logistic department and first of all, cutting is performed on it on the Tipping Tables which divide the leaves into pieces. Then, these cut tobacco leaves go through the Conditioning Cylinders and are given moisture up to 15-16%.The next phase comprises of shifting the tobacco to a cindery, where all the scrap is filtered from the cut and conditioned tobacco leaves and it is once again then passed through conditioning cylinder moisture of 17-18%.finally, the leaf is separated into STEM and LAMINA in threshing. The next action is known as Re-Drying; which brings down the moisture to 13-14%.Now; the stem is packed into Gunny Bags while lamina is packed into Bales. The net weights are 36kg and 110kg respectively.Now; the tobacco is sent to the PLS (prized Leaf Stores) where the government taxation liabilities are carried out before it is dispatched to Jhelum and Akora Khattak Factories through the C-5 godown.Following is the series of operations followed in order to separate the stem and lamina as Ill as grade them make them ready to be stored before the tobacco is fed to the PMD for further procurement.

3.4 GLT PLANTBASIC PROCESS FLOW DIAGRAMGREEN LEAF THTHRESHING

BALE OPENING

Feeding / Blend

CONDITIONING

Sand Reel / Roller Deck

Sorting / Searching

Re-Conditioning

THRESHING

ClassificationSTEMLAMINA

SIEVINGSIEVING

Small particles / Stem Bits / Dust

DRYINGREDRYING

PACKINGPACKINGStoring / Distribution

3.5 Primary Manufacturing Department (PMD)As the name; Primary Manufacturing Department is the very first processing plant of tobacco after the tobacco is dispatched from the GLT warehouses.Here, the tobacco is conditioned, blended with casing, cut further with supply of moisture, dried, and finally blended. The tobacco is then stored and finally fed to the Mark-9 machines from Cut Tobacco Stores.a) CONDITIONING:The Conditioning process opens up the compressed tobacco leaves and adds up moisture to threshing and is stored in the warehouses.b) BLENDING:On the basis of leaf varieties and Bill of Materials (BoM); every brand has its own blending mixture including GF, CH, AY, JPGL, and CBPM etc.c) CUTTING:There are separate CUTTERS for stem and Lamina i.e. both Stem and Lamina are separately fed to the conveyor line leading towards their respective cutters.For LAMINA:28 Cut/ InchMoisture: 22%Leaf is open through conditioning For STEM:160 Cut /InchMoisture: 38%

d) DRYING:The 38% and 22% moisture of Stem and Lamina respectively are brought down to 15% in drying action.

e) FINAL BLENDING:Finally, the Stem and Lamina are blended together in a proportion of 1:4 respectively. i.e. 20% Stem and 80% Lamina are mixed up together before this finally blended tobacco is sent to Cut Tobacco Store.f) CUT TOBACCO STORE:The cut tobacco store or CTS is the final depots of the Primary Manufacturing Department from where the ready cut tobacco is fed to the cigarette making machine through feeders. There are a total of 14 Feeders in the CTS.The blended cut tobacco is firstly stored in a wooden box for 24hrs and is then fed to the feeders which further transfer it to Hopper Unit of the Mark-9 Machine installed in the Secondary Manufacturing Department due to the action of pneumatic section.3.6 SECONDARY MANUFACTURING DEPARTMENT: SMD is the abbreviation of Secondary Manufacturing Department.The elite manufacturing department of the PTC AKF; SMD is divided in to two functional groups i.e. MAKING and PAKING. It is the final department of the AKF factory where cigarette are manufactured from tobacco coming from CTS; they are packed, and thus finally delivered to PTC warehouses.Secondary Manufacturing Department

MakingPacking

Chapter # 4Performance management has three parts: Defining the performance, measuring or appraising performance, and finally feedback for the performance.

4.1 Purpose of Performance Management System in PTCThe Performance Management system of any company is to check the employee performance is aligned with strategic goals. PTC claims to be value leaders in the cigarette industry and future goal is to transform PTC to perform with speed flexibility and enterprising spirit of being an innovative consumer focused company.Furthermore, the employees who perform well are given opportunities to further develop themselves. Normally the weak points are pin pointed so that the employees can improve themselves.4.2 Performance Management in PTC

At PTC, the process of performance management starts by defining performance. Performance cannot be defined without a clear knowledge of the job that is to be performed by the employees. At the managerial level, it is very difficult to define performance of the employees keeping in view their quantitative aspects. Due to large variety of managerial jobs at PTC, the performance of managers is analyzed on a qualitative measure.At PTC, jobs are analyzed after two years or whenever there is a need of jobs analysis and performance is defined. After that, this definition of performance is communicated to all the employees and it is made sure that they work on these measures as they are also appraised on the same measures.After performance has been defined, all the required behaviors for the managers are studied in detail and some indicators are developed which are necessary to judge whether the employees is performing good or bad. The indicators that are in favor of the required performance are called Positive Indicators and the indicators against it are called Contra Indicators.Given below are the behaviors with their required performance for managers PTC:

4.3 Managing work

Managing own work in the most efficient and effective way:

1. Plans and prioritizes own work, breaking down the task.2. Uses available resources effectively (own time, systems, finances, people, information)3. Prepares well and has everything at hand.4. Has an organized approach to work.

At a supervisory level:

1. Delegates tasks effectively2. Coaches subordinate(s) to achieve tasks

Analyzing and understanding

Understanding own role, responsibilities, tasks and solve problems:

1. Seeks clarification by probing, questioning and challenging2. Anticipates and thinks around problems/ issues3. Recognizes own limitations and other resources-knows when help is needed4. Considers and evaluates all options-is able to weigh things up5. Makes sound judgments and decisions.6. Is able to be discreet and maintain confidentiality.

Processing work

Processes and produces work to meet all the deadlines.

1. Follows appropriate procedures in a methodical and systematic way.2. Seeks appropriate approvals and authority3. Maintains routine tasks and systems-filing, info systems, dairies, etc4. Monitors and reviews own tasks, makes appropriate checks5. Is accurate and pays attention to detail.

Adaptability

Is flexible and responds positively to changes.

1. Accepts changes enthusiastically2. Is willing to learn/change3. Is open to new/other ideas4. Is able to perform under pressure

Initiative

Uses initiative and seeks improvement

1. Is curious and inquisitive2. Generates ideas3. Develops and makes improvements4. Learns from experience5. Is able to work with minimum supervision/direction

Relationships

Has a good working relationship with others, both within and outside the organization.1. Build informal working relationships2. Co-operates with others, is a team player3. Understands and is sensitive to the needs of other people4. Persuades and negotiates-is able to gain commitment5. Confronts problems and is assertive when necessary

Communication

Communicates confidently and clearly with others 1. Is clear and concise in communication2. Effectively communicates own needs3. Liaises and consults with others4. Is able to communicate effectively in writing

CommitmentDisplays commitment and self-motivation1. Completes and finishes tasks, not giving up2. Is conscientious and takes pride in their work3. Works to high standards4. Is reliable and consistent-not letting others down 4.5 Recommendations:a. Along with report He (Feed end supervisor) should also give detailed comments about LIP and the issues occurred in BAT Leaf system. He should also take up the physical and system issue with a Logistic Green Leaf Issue Supervisor. Also the issue to be timely (communicate) to a GLT team leader.b. The LIP should be properly recorded and accounted for while doing the reconciliation. At times it has been observed that LIP is not properly recorded and traceability is lost.c. The LIP is especially the problem when the process is running 24hrs.

Impact of LIP on yield is that if the LIP rate is high than it decreases the overall yield. It is a continuous process and it occurs randomly. Due to Break Down or Time, communication, neglisous (mistakes). d. Tobacco handling to be made with intense care while truck unloading and unloading at feeding platform from the pallets. Change in handling practices will decrease the degradation loss.

e. I made an observation that tobacco scrape is dropped on the GLT plat forum during handling before the bale is put on the scale for re-weighment loss

Calculation. To further verify this observation I conduct a trial following two approaches.1. Carefully Handling (During unloading)2. Normal / Routine Handling (During unloading)

I formed a different of up to 1% only in case of very shatter grades. Re-weighment loss in case of such grades is slightly high if I dont handled the bales carefully due to spillage of scrape.

Chapter # 6Drawbacks, Recommendations6.1 DRAWBACKS:There are social, environmental, operational and material draw backs in GLT. These are given below:SOCIAL DRAW BACKSUnemployment: Before the use of technology number of labor worked in GLT, which not only reduced the unemployment situation in the region but also improved the standard of living of the people. With the passage of time latest technology was installed in GLT. Which increased the production but it has also caused unemployment.ENVIRONMENTAL ROLEDust:There are two types of dust organic and inorganic. Dust is a common feature of GLT. It is estimated that about 3 to 6% dust is present in tobacco leaf which is removed in GLT. Level of dust increases as weather changes from hot to cold. This dust is collected from leaf in dust collection units. Dust may also harm the respiratory system of the workers

MATERIAL DRAW BACKS: Sometimes dust level is too much high and it creates problems while removing it in dust collection units. Sometime moisture level is too much high. Sometimes amount of scrap in bales is large.

OPERATIONAL DRAW BACKS:Shortage of electricityGLT is totally dependent on WAPDA because electricity requirement is very high (almost 3-4 megawatt) and generators are used..Lack of skilled laborIn GLT workers are hired on seasonal basis and it is very difficult to find skilled labor every time, even if a skilled worker leaves the company it is very difficult to find a worker of same potential. 6.2 Recommendations: A proper conditioning of leaf must be done and verified before it is bring to GLT plant for further processing. Advance sensors should be used to remove foreign matters, to produce finest quality tobacco. The conveyors should be covered properly and small dust suction fans should be used for conveyors separately. The components of machines should be maintained properly to minimize the vibrations in the components and noise.

CHAPTER-7

7.1 CONCLUSION

As we know PTC is highly aware of how to motivate its employees in the best way. This can be judged by enthusiasm and good spirit that people show in performing their jobs. There is a well-devised system that PTC follows for the purpose of motivation. It includes both financial and non-financial rewards along with the major motivators and Dissatisfiers. The company recognizes the importance of making people drive towards their goals and the basic step towards this is made through recognizing the value of importance that the company gives to its employees. PTC has a set of financial rewards, medical, dental, vision and life insurance, retirement plan, educational refund assistance, paid vacation days, family and work life balance benefits and profit sharing plan, annual bonus opportunities, company cars etc. other ways in which employees are motivated are:

1. Employee Consultation for:

1) Everyday Residence issues (remodeling, repairs, house-sitting, etc.).2) Legal matters.3) Financial issues.4) Education and schooling.5) Parent and child care.6) Resources for seniors and eldercare issues.7) Disability and accessibility. 8) Emergency dependent-care reimbursement.9) Adoption assistance

Additional employee benefits may include:

1) Paid time off for dependent care.2) Educational refund plan.3) Scholarship program.4) Medical, dental and vision benefits plans.5) Group life insurance. 6) Student and parent loan program.7) Fitness center.8) Group discounts on: car, home, long-term care, pet insurance, home security, auto services and purchasing, mortgage and home equity loans, and legal services.9) Health services.10) Lunch n Learn educational seminars. 11) Employee Assistance Program(EAP)

Other factors that lead to greater employee motivation are

1) Employee are made to work in such a dynamic way that they can derive satisfaction from knowing that they have achieved something that was previously impossible or extremely difficult to achieve.2) Employees are safe in knowing that they will be rewarded for any exceptional work. This reward is not only monetary. It is accompanied by the employee being given recognition and greater empowerment.3) Employees are given a very beautiful and healthy work environment. Special attention is given to make physical environment most protective. This is why PTC offices are considered to be the most well decorated and organized.4) As we know PTC has a desire to promote the high achievers from with in the company. Positions are given on merit and are transparent and fair in nature. There is no special treatment. Therefore each employee know that he can aim for the top and actually get there. This has proved to be a great source of motivation for employees of PTC.

Refrences

Web Sites

Pakistan tobacco company.(2015).Ptccompk.Retrieved20 October, 2015,from http://www.ptc.com.pk/

History of British American Tobacco. (on-line) Available (2008). http://www.bat.com

Pakistan tobacco company.(2015).Ptccompk.Retrieved20 October, 2015,from http://www.ptc.com.pk/group/sites/PAK_7SHBXN.nsf/vwPagesWebLive/DO7SHC64?opendocument

Slidesharenet.(2015).Slidesharenet.Retrieved20 October, 2015,from http://www.slideshare.net/jawadiqbalkhan86/strategic-management-analysis-of-pakistan-tobacco-company-2008

Koontz, Harold. (1993). Management, Tenth Edition. Singapore: Mc-Graw Hill. Institute of Management Sciences, (2014). Internship Report on Pakistan Tobacco Company limited Akora Khattak factory, Peshawar University

Pakistan Tobacco Company Limited. (2012). Annual Report. Islamabad. Pakistan Tobacco Company Limited. (2013). Annual Report. Islamabad. Pakistan Tobacco Company Limited. (2014). Annual Report. Islamabad.

Teachers

Mr. Kamil Shahzad (HR Manager) at PTC

Mr. Sarfaraz Khan (Financial Leaf Analyst manager) at PTC

Mr. Mohsin Khan (my supervisor) at Comsats

Pakistan Tobacco Company | AKF 20