HMC Taxila

Internship report on HMC,Taxila
1. Introduction
Heavy Mechanical Complex (Private) Limited is a leading engineering goods
manufacturing enterprise in Pakistan located at Taxila about 30 Kilometers north
of capital Islamabad. It is a professionally managedprogressive organization with over
160,000 sq.meters covered facilities and 1,100 employees.
HMC have the resources to handle large projects with demanding delivery schedules.
Being the largest and most extensive fabrication and machining facility equipped with
state of the art technology. HMC provide manufacturing services both on our own or
customers design.HMC have gained rich experience in designing and manufacturing of
large
projects
through
collaboration
with
internationally
reputed
engineering
organizations. All its processing facilities are in-house including Designing, Fabrication,
Machining, Iron and Steel Castings, Forgings, Heat Treatment, Assembly, Sand Blasting,
Painting and Galvanizing etc.HMC is ISO 9001 certified and is authorized to use 4
ASME stamps U, U2, S & PP for equipment manufactured according to ASME code. The
manufacturing is backed by excellent quality control and testing facilities to meet the
product and customer quality requirements. 3rd party inspection facilities are also
available, where required. Heavy Mechanical Complex Ltd. (HMC), Taxila is a major
heavy engineering subsidiary of the State Engineering Corporation (SEC) under the
Ministry of Industries &Production, Government of Pakistan.HMC defines itself as A
technical institute in which all types of machines including Sugar plants, Cement Plants,
Road rollers, Over Head Cranes ranging from 0.5 to 50 tons Heat Exchanger boilers,
Special Defense parts (i.e., NDC works), Special Vibratory Rollers (which can bear
statistically 10 to 12 tons vibratory load) and Pakistan steelworks. Some other processes
that are also done by HMC are Designing and manufacturing and assembling and
installation with the certification of ISO 9001.The Heavy Mechanical Complex (HMC),
the biggest undertaking of its type in Pakistan, was established in 1979 with Chinese
assistance. The Heavy Forge Factory (HFF) at this complex hasproved crucial for
Pakistan's defense production needs. HMC has the capability for designing, engineering
and manufacturing of industrial plants and machinery.HMC has the largest fabricationand
COMSATS Institute Of Information Technology
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machining facilities in the country equipped with Computer Aided Designing(CAD) and
can undertake a variety of fabrication / machining jobs on sub-contracting basis.HMC
manufactures equipment for hydro-electric power plants, thermal power plants,
sulphuricacid plants, industrial alcohol plants, oil & gas processing plants, and chemical
& petro-chemical plants, etc. Boilers, cranes, construction machinery, material handling
equipment, steel structure, railway equipment, etc. are some of the other products which
are produced on regular basis. The companys capabilities include engineering and
manufacturing of Sugar Mills ranging between1,500 - 12,000 TCD (tons of cane crushing
capacity per day), Portland Cement Plants of 700-5,500 TPD (tons per day) module and
White Cement Plant of 50 - 1,000 TPD.I am here to cover the mostly the marketing
department that concern with my specialization but also highlight the role of the other
company operation and departments work with in limited time. Starts with the company
history view and also highlight the nature of work also company SWOT and PEST
analysis and in the end come up with the conclusion and recommendation about the
problems that I observed during my internship period.
1.2.Objective of Studying Organization
It is greatly honor for me to work as internee being part of that kind of organization that
have remarkable value in Pakistan and known as leading engineering goods
manufacturing enterprise.HMC have the resources to handle large projects with
demanding delivery schedules. Being the largest and most extensive fabrication and
machining facility equipped with state of the art technology. HMC provide manufacturing
services both on our own or customers design.HMC have gained rich experience in
designing and manufacturing of large projects through collaboration with internationally
reputed engineering organizations.The main reason to choose HMC on the behalf of
following objectives.
To know how operations are perform in that kind of big organization.

To know how marketing activities are perform by the company.
To know about interrelated departmental activities of the organization and nature
of decision making environment.
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1.3.Overview of the Organization

HMC is a well reputed organization for the manufacturing of the engineering goods in
Pakistan. ISO 9001 certified and authorized to use 4 ASME stamps U, U2, S & PP
for equipment manufactured according to ASME code.
1.3.1.Brief History
Heavy Mechanical Complex (HMC), Taxila was established under 3 rdFive Years Plan, by
WPIDC, to implement governments industrial policy to shift emphasis from consumer
goods to capital goods manufacturing industry. It started its operations in December
1971. The project was implemented with the co-operation of government of Peoples
Republic of China.
Later in February 1977, Heavy Foundry and Forge (HFF) was established to produce
heavy castings and forgings, to supplement the engineering industry for intermediary
goods / raw materials. This project was also established with the co-operation of Peoples
Republic of China.
The Prime Minister of Pakistan while inaugurating HFF elaborated the role of heavy
engineering sector in the following words. The role of engineering sector, particularly
of heavy engineering is of paramount importance in developing economy. Meaningful
industrial growth can only start after heavy engineering base is provided. Because of
nature of this industry gestation period is long and returns are slow but equally they are
essential.
In 1990, Heavy Foundry and Forge was merged with Heavy Mechanical Complex. In
early 2006 Government decided to privatize HMC and EOIs were invited but later this
decision was reversed and HMC was de-listed from privatization due to its strategic
importance as heavy engineering industry.
1.3.2.Type and Nature ofBusiness
HMC is famous for the manufacturing of capital engineering goods.HMC manufactures
equipment for hydro-electric power plants, thermal power plants, sulphuricacid plants,
industrial alcohol plants, oil & gas processing plants, and chemical & petroCOMSATS Institute Of Information Technology
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chemical plants, etc. Boilers, cranes, construction machinery, material handling

equipment, steel structure, railway equipment, etc. are some of the other products which
are produced on regular basis. It also has capability to make sugar plants as per demand
of customer which is also export to different country.
1.3.3.Business Volume /Size in Different Context
There are three factories under the HMC, Heavy mechanical complex I (HMC I) ,Heavy
forge and foundry works (HMC II), Heavy mechanical complex III (HMC III)
Of these the last one is directly under the ministry of defense while the former two are
governed by ministry of production
The production capacity of HMC isMachining capacity=500ton *12 monthsFabrication
and Machining capacity= 1000ton *12monthsTotal = 500*12 + 1000*12 = 6000 tons per
annum.This production capacity can be increased time to time with the extension of man
power and other sources subjecting to sub contractors.
1.3.4.Number of Employees
Professional Manpower
Regular
Senior executives
04
02
Executives
242
24
Supervisory staff
57
15
Skilled/semi skilled worker
571
874
*Engineer
*Associate engineer
*Figure included above
Contract
1332
2247
75
98
160
1.3.5.Product Lines, Product Portfolio
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HMC specializes in Engineering, Designing, Manufacturing, Installation and

Commissioning of plants and machinery including;
Cement Plant and Spares600-5000 TPD
Sugar Plant and Spares500-12000 TCD
Process Plant EquipmentPressure Vessels, Columns, Heat Exchangers, Drums, Storage
Tanks and Kilns
Chemical & Petro-Chemical PlantsSulphuric Acid Plant, Basic Chromium Sulphate
Plant, Industrial Alcohol distillery, Gas Dehydration, LPG/LNG, Gas Purification
&Sulphur Recovery Plants.
Industrial BoilersFire tube Package units, water tube package units, heat recovery
boilers, biogases fire boilers (capacity up to 200 T/hr
Thermal Power PlantsEquipment for utility boilers, membrane wall, turbine/generator
parts.
Hydro Power PlantsGates, penstocks, wicket gates, head covers, turbine/generator parts
CranesElectric overhead travelling crane, portal & mobile cranes.
Road Construction MachineryStatic & vibratory road rollers, asphalt mixing plant.
Steel StructuresFor thermal power plants, process plants etc.
Railways EquipmentRailway axles, surface traverse, screw coupling & screw jack.
CastingsIron & steel castings as per specifications
ForgingsShafts, rings and others as per specifications
Automotive ForgingFor tractors and other automobile
1.3.6.SWOTAnalysis
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1.3.6.1. Strengths
It has needed a heavy investment to start the operation so it is the big barrier to for
the entrance of the other companies in this industry sector.

It is Pakistan largest engineering manufacturing company. Its provide the
employment opportunity thousands of worker and have a capacity to full fill the
engineering capital goods demand with in and also outside the country.
It has been working consistently in this sector so it has achieved competitive skills
and also has ability to strong competition.

Continuity of operation has enabled the employees to achieve great operational
skill. Its employees are more skilled any other company in this sector.
As a leader organization in Pakistan to get the benefit of their customer
confidence on their capital products.

Its also enjoy the support of government and also get the financial assistance by
the government.
1.3.6.2.Weaknesses
HMC using the machinery that are using by the company are now out dated. It did
not install latest machinery tot hat extend as by its competitors. So it may fall
behind in its production capacity
Due to heavy losses and bad financial policies it is losing its financial position. Its
facing problem in meeting its day to day expenses.
Many of its employees are missing key skills necessary to run it efficiently. So it
may harm its productivity also.
Due to large size its management finding it hard to control its all functions. Large
size is badly affecting its operational controls. Its management is faced with the
problem ofefficient human resource management.
Due to heavy operating cost and less financial resources it is very difficult for it to
expand its plant. So it may not be able to increase its supply of products when
there demand is rises short run.

Privatization always shows weakness in a companys working. The government of
Pakistan decided many time to privatize it to three party consortiums at nearly
scrap value.
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1.3.6.3 Opportunities
Since it has been working for a very long time so it has achieved high skills to
produce a large variety of products. So it has to satisfy many wants of the
customer and increase its profits.

Its competitors in the market not have any strong position or have ability to
produce many products under same roof. So it can be able to earns more profits.
Due to large scale of production it purchase raw material in bulk quantities so it
has high bargaining power and enjoys discount from its suppliers.
As it is a pioneer to the market its customer trust on its products.peoeple prefers to
buy its products. So its help to generate more revenue.

It is also supplying its products to foreign customers its enjoys the higher profits
than its competetiors.it is equipped with all the necessary facilities conforming to
international standards.
Due to heavy labor force and large capital it has the ability to increase supply of
its products when demand for its goods is increases.
1.3.6.4 Threats
With the entrance of the new competitors the sales of HMC company can be
decrease. The emergence of advance technological capital good producers is
threading its profits.

Due to economic crises and energy issue in Pakistan have a bad impact on its
profitability and also decrease in the demand.

Labor unions always a threat to a company so their strikes or any other problems
may effect its working badly.

The rise in prices of energy and oil has increased its cost of production. It was
forced to sell the products at high prices. This can affect the demand of the
products.
Due to nepotism the management of HMC is some how in efficient. Key positions
are held by people who are not eligible for their current posts. So it is a major
threat to its profitability.

The government wanted many times to with draw its support due to decrease in
profits. Its continues to work at lower prices government may think to sell it.
It is a major threat to its profits. With the introduction of multinational companies
in Pakistan its May revenues decreases.
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Lack of resources for investment could mean HMC failing to exploit

technological advances
1.3.7.PEST Analysis
1.3.7.1.Political
As by the control of ministry of production there is a huge chance the political instability
always affect the companies operations and also we know that the Pakistan is politically
unstable and can create interruption for the company.
1.3.7.2.Economic
Economic
slowdown such as the recent recession can have negative impact on

production and sales of the engineering companies. Also other
economic factors energy crises and increase in oil prices result in
increase the prices of the products which also affect the sales and
other factor is the economic policies of European Union member
countries make it tougher for the industry participants to penetrate the
engineering market.
1.3.7.3.Socio-cultural
The social and cultural restraints and obligations directly affect the buying pattern of
people, the brand loyalty, etc. also the companies now-a-days thrive to keep up with
corporate social responsibility to maintain their Public relegation status in this way
company perform a different kind of activities provide scholarships to the employees
children and make colonies for that with a all kind of facilities availability ,free medical
checkup, transport facility ,marriage grants for the daughter of employees etc..
1.3.7.4.Technological
The technology keeps changing and varying from place to place. Technology plays a vital
part in the engineering industry. The engineering manufacturing companies have to keep
side by side with the changing technology so as not to give a competitive edge to
competitors by speeding up their change of products and designing ability. But here the
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case of HMC obsolete machinery isuse which affects the production capacity of the
company. In future they have plan to covert the machinery in to computer numerical
control machines.
1.3.8.Business Plan
The Executive Committee of the National Economic Council (Ecnec) has approved, in its
meeting held on May 26,2011 plan for the undertaking balancing, modernization,
rehabilitation and expansion of the Heavy Mechanical Complex (HMC) at Taxila. The
scheme, estimated to cost Rs 21.54 billion, is focused at the production of power
generation equipment based on state-of-the-art technology to meet growing national
demands of energy. In addition, the Design Centre of the HMC is to be upgraded at a total
cost of Rs 665 million, for which administrative and financial approval has recently been
accorded by the Central Development Working Party (CDWP). Implementation of the
restructuring program, consisting of the BMRE of production facilities, strengthening of
the Design Centre and procurement of technology, is predicted to be completed in three
years.
HMC has already firmed up its program to manufacture, in a big way, major and critical
equipment for power generation plants based on various energy resources. The
comprehensive product range will include equipment for hydroelectric, coal-based,
thermal, wind power, urban and industrial waste power, in line with the projections of the
National Security Power Plan 2005-2030.
HMC, a strategic industrial unit, is the largest engineering, designing and manufacturing
organization professionally managed, which is spread over an area of 2.31 sq km. Its two
works namely Mechanical Division and Foundry and Forge Division were established
under the Chinese technical and economic assistance. Production facilities were
established during 1960s-1970s and have become outmoded since no major investment
was made in subsequent years to modernize installed machinery. Though rehabilitation of
major machines has been done on a regular basis with the help of the Chinese, plant
capability is no more compatible.
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It is planned to upgrade the plant and general purpose machinery, and material handling
equipment will be refurbished. Steel melting facilities will be overhauled and upgraded
by installing modern instrumentation, and by adding an induction furnace and vacuum
de-gasification stations to produce refined grade steels required for manufacturing the
turbines.
A heavy-duty forging press of 15,000 tons capacity and heat treatment facilities will be
added to the Forge Shop. Heavy duty turning, boring, milling and drilling CNC machines
will be installed in the existing Machine Shop. In addition, precision welding machines,
material preparation equipment and quality assurance equipment will also be installed.
The HMC has a well-equipped product design and engineering office, with modern
computer-based hardware and software facilities. Technology acquisition and
assimilation has been successfully done, through technology transfer agreements and
under joint ventures with foreign companies. This has not only enabled HMC to become
a market leader in the supply of sugar mills and cement plants on a turnkey basis
domestically, it also placed Pakistan on the export map. To enlarge its scope of supply of
equipment and technical services for the energy and industrial sectors, the HMC will
develop further its design and engineering capabilities.
It is now planned to upgrade the Design Centre, with focus on adoption and adaptation of
latest technology in the new areas of business. The modern engineering and
manufacturing technology related to various industrial sectors has to be acquired from
foreign sources. The proposed strengthening and capacity-building of the product design
office include additional state-of-the-art facilities for computer-aided design (CAD) and
computer-aided engineering (CAE), which will be integrated with computer-aided
manufacturing (CAM).
Currently, the Complex employs more than 1,000 professionals, technicians and workers.
The company having certification of international standards and qualifications such as
ISO, American Boiler Board, ASME and TUV etc, is profitable despite technological and
financial constraints. For the fiscal year ending June 30, 2010, the company has achieved
record sales of two billion rupees, having earned gross profit of Rs 187 million. Sales
during the period July 2010-March 2011 amounted to Rs 1,507 million, while orders in
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hand
value
Rs
2,213
million,
with
additional
orders
in
the
pipeline.
The domestic market for sugar and cement having been saturated for quite sometime, the
company needed diversification of its production programme. Concerted efforts were
made in this direction in the past but plans did not materialise, primarily due to nonavailability of requisite foreign technology, lack of government support and inconsistent
policies. Thus, the HMC's competitive edge has eroded over a period of years. The
complex now plans to expand and diversify its products range to cover equipment for
energy, chemical, petrochemical, agro-based and other industries and the infrastructure
sector,
besides
acquiring
latest
technology
for
its
current
product
line.
The HMC has already contributed significantly in the development of various power
plants in the country. The list of thermal power plants for which the company
manufactured substantial equipment includes
BinQasim 2x210 mw, Wapda/Pepco's
Muzaffargarh 1x320 mw and Hubco andLalpir power stations. Likewise, the HMC has
supplied partial machinery and equipment for medium and mega-hydropower projects
like Malakand III, Ghazi Barotha, Warsak and Tarbela, besides installing a number of
small and mini hydropower projects in the Gilgit-Baltistan and the Azad Jammu and
Kashmir (AJ&K).In the past, China has helped Pakistan in establishing a strong base for
heavy engineering industry, and is again willing to support the government's roadmap for
strengthening the sector. During the visit of the Federal Minister for Industries and
Production to China in the month of April, Managing Director HMC has signed a
Memorandum of Understanding with the Chinese who are willing to help the HMC in
implementing the BMRE plan along the financing. The Economic Affairs Division has
initiated action for seeking project financing of $156.44 million, to cover its foreign
exchange component, from China and other sources.
Chapter 2
2. Organizational Structure
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An organizational structure consists of activities such as task allocation, coordination and

supervision, which are directed towards the achievement of organizational aims. It can
also be considered as the viewing glass or perspective through which individuals see their
organization and its environment. An organization can be structured in many different
ways, depending on their objectives. The structure of an organization will determine the
modes in which it operates and performs. Organizational structure allows the expressed
allocation of responsibilities for different functions and processes to different entities
such as the branch, department, workgroup and individual.
Hierarchical nature structure is usually adopted by organizations in order to manage the
labor of the organization. Supervisors usually manage Labor while supervisors are
directed by top management. The boards of directors help the company for smooth
running the operation of the company. Usually, each level is designed to report one
person in the top management appointed by the level. Usually, board of directors is
appointed on first place for the appointment of other executives for the organization.
Shareholders have right to select board of directors who serve for specific term.
2.1.Head Office
Head Office Address:Hattar Road TaxilaLandmarks:Hattar Road, TaxilaDistrict:
Rawalpindi
Phone
+92-51-9270562,
9270563,
9270564,
9314203Email:hmcengg@hmc.com.pk,
Fax
+92-51-9270560,+92-51planning@hmc.com.pk
,marketing@hmc.com.pkfinance@hmc.com.pk
2.2 Organization Hierarchy
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MANAGING DIRECTOR
DY.MANAGING DIRECTOR
Design & Sales A&B.
GENERAL MANAGER
Project Management.
Project Management.
DY.GENERAL MANAGER
Purchase & sales c.
GENERAL MANAGER
Mechanical works.
GENERAL MANAGER
Production Planning and Control
GENERAL MANAGER
Finance & Accounts
DY. GENERAL MANAGER
Administration.& HRM
GENERAL MANAGER
Quality assurance & new products
HEAD
Foundry & Forge works.
CHIEF MEDICAL OFFICER
2.3.Comments on the Organizational Structure
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As discussion about the hierarchical structure of HMC there are some advantages of this
structure and also disadvantages.
Advantages
Employees are familiar with defined levels of leadership within the organization;
authority and levels of responsibility are apparent.

Hierarchical structures promote developing employees as specialists and get good
skills in the company and also may narrow their field of focus and become experts
in specific functions.
Employees of Company are loyal to their departments and look out for the best
interest of their area.

Decision making are easy due to centralize control that can be taken by the upper
level of management and board of director.
Disadvantages
Communication across different departments tends to be less effective some of
them are not seriously work for the HMC interest in this type of structure.
Rivalry between departments may anger as each department makes decisions that
benefit its own interests rather than the organizations as a whole.

Increased bureaucracies often hold back an organizations speed to change.
Increased time may be required to respond to clients.

Salaries for multiple layers of management increase an organizations costs.
There is no promotion concept in this type of structure because in this company
only peoples are promotes those have relation with the upper management or
political leader.
2.4.Competitive Positioning of the Organization in the Industry

Both developing, as well as industrialized countries provide sustainable subsidies to such
enterprises because of their strategic significance. Heavy Mechanical Complex,
commonly known as HMC, it has the largest product design office in the country,
equipped with computer-aided designing (CAD) and computer-aided engineering (CAE)
facilities. The company, which is ISO 9001 certified, has authorization to use prestigious
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ASME stamp code for boilers, pressure vessels and piping etc.Incorporated as a private
limited company, HMC has a paid up capital of Rs1, 077 million, which is entirely owned
by the government. A board of directors nominated by the government manages its
corporate affairs.
Since its having gone into commercial production in 1971, the company has played a
crucial role in the industrial and socio-economic development. Its main contribution has
been in achieving self-reliance in the sector through import substitution, saving billions
of dollars and, at the same time, earning millions of dollars through export promotion.
For almost two decades, HMC remained flagship of national prime engineering
industries, having earned recognition as leading manufacturers of capital goods of
international standards. The company earned significant profits, provided employment to
thousands, trained hundreds of engineers and technicians, and developed new products
for defense and strategic industries. It has designed, manufactured and installed 23 sugar
mills and five cement plants, of various capacities, and 35,000 tons of equipment for
power plants.
A host of other engineering goods manufactured by the HMC include road construction
machinery, industrial boilers, various types of cranes, railway equipment, truck chassis
and axles, equipment for fertilizer plants and oil refineries, besides a variety of steel
structure, castings and forging.
The complex enjoys the singular distinction of successfully placing Pakistan on export
map of the world that no other domestic engineering company, either in public or private
sector, can boast similar achievement. It has successfully executed a large number of
contracts, in many countries, which were won against international competition. The
turnkey projects, which related to design, engineering, construction and commissioning
of three sugar mills and a cement plant, were completed in Indonesia and Bangladesh.
In addition, its various products such as construction machinery, electric overhead
travelling cranes, steel structure, boilers, railway materials and equipment for sugar and
cement industry have been exported to Bangladesh, Afghanistan, Sri Lanka, Ghana,
Uganda, Kenya and the UAE. The company is registered with international donor
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agencies
and
governments
of
the
respective
countries.
The 1990s, however, saw the decline of the company as its order book substantially
reduced as a result of poor investment climate and slow industrial development. This
resulted in gross under- utilization of its installed production capacity, estimated to be
35,000 tons of finished goods per year. The situation adversely affected implementation
of its future plans to undertake the BMRE and to diversify its production programmed
meeting market demands, for which technology transfer arrangements were also lined up.
Fortunately, the company has once again got on its feet, financially as well as
commercially. It has achieved sales target of Rs1,403 million during the year ending June
30, 2005, compared to Rs515 million in 2002-03, having earned Rs189 gross profit and
Rs66 million operating profit. At present, the company has confirmed orders in hand
valuing Rs2,927 million whereas additional orders are in the pipeline. Resultantly, the
cash flow position has also improved.
The flexibility and general purpose nature of plant machinery installed at HMC, and its
state-of-the-art design and engineering capabilities, allow diversification of activities of
the company to cover industry, power, water, energy, agriculture and infrastructure
sectors, meeting domestic and export requirements. It has signed contracts in the recent
past for supply of cement plants, one each to Iran and Uzbekistan, which have not yet
been materialized, and can be revived, for implementation.
Since 1992 and 2006 six companies of the State Engineering Corporationall prime
industrial units and most of these profitable at the time of privatizationhave been
transferred to private sector. These include Karachi Pipe Mills Karachi, Metropolitan
Steel Corporation Karachi, Quality Steel Works Karachi, Pakistan Switchgear Ltd
Lahore, Textile Machinery Corporation Karachi and Pioneer Steel Mills Lahore.
These companies were sold at a throwaway price of paltry sum of Rs140 million in total,
whereas these enterprises, mostly public limited companies, were paying cumulative
revenues of similar amount annually to the government. Sadly, all these companies,
except Pioneer Steel Mills, remain closed down since take-over. It transpired that the
buyers were simply interested in real estate of these companies and never intended to
keep these as running enterprises.
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2.5. Learning as an Internee from the Management Context

As per seeing the hierarchical structure I have defined before that this organization have
advantage like its promote goods skills in the worker and also disadvantage is rivalry
between the departments may create anger between the departments and they can use it
for their own interest. Management has been described as 'the process of planning,
organizing, leading and controlling the efforts of organization members and of using all
organizational resource to achieve stated organizational goals. In this type of organization
A Managing Director will be appointed who has overall responsibility for running the
company. The managing director with help from other directors will appoint senior
managers to run the company. Any how as per learning have a good experience of
management of operation and other works with the management team. To get the view
and practical involve in the daily operation how the company is link with each other
department, how goals are define, how responsibilities are assign to related departments
and how to get work from the worker for delivering the customer demand on time, by
using of recourses in efficient way. I also got the experience of the inter related
department information proceedings that are communicate with each other by sending a
company memorandum in proper form according to related any activity. In marketing
department procedure I keenly observe each activity related to team members or
customer and how the all management work together and what kind of activities are
assign to them and how they work on that each thing are loud and clear to every one.
Chapter 3
3. Structure of the Departments
HMC is a well reputed organization for the manufacturing of the engineering goods in
Pakistan. For increase its productivity, profitability and administration work effectively
and efficiently HMC Company divided itself into different departments. Departments
have assigned different tasks depending upon nature of work. Including Mechanical
works and Foundry & forge works, HMC has following departments.
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Duties and Responsibilities of each department are as below;
3.1.1. TechnologyDepartment
Technology Department checks that company complete specific project in specific date or
not.
3.1.2. ProjectPlanning Control Department
According to project, they create the demand of goods that is being consumed in the
workshop as a raw material. They check the demand of goods is valid or not. Machinery
and man power (workers) are available or not to complete the project.
3.1.3. Finance Department
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The main objective of finance department is to raise and allocate funds, and maintain the
accounts of factory. Payment of expenses and salary are the responsibility of this
department. This department also arranges the funds to meet these expenses. It deals with
cash inflow and outflow.
3.1.4. Cost Department
Objective of cost department is to calculate per unit cost in the reference of material,
labor and factory overhead. There are two types of costing.
Bach wise Costing Cost is calculated of same products.(For Repetitive Process)
Job wise Costing Cost is calculated for different material products.( Job wise).
Human resourceDepartment
It administrates the whole departments and atmosphere of the company in fruit full way
and provides main power depending on requirement of different departments. They have
following sections;
Personnel They offer and hire Officer and Supervisory staff according to the need of
HMC. This section set Job description, and specification of officer and supervisor.
Industrial Relation They offer and hire workers according to the need of HMC.
Security Set the security of factory, colony, buildings and Machinery.
Welfare Deals in the fields like school, free medical of employees, Uniform of labor,
Group insurance, made mosques in colony.
Administration and General ServicesThis section work in following area like made
colony in specific area, essential services demand (Services that need every time), Colony
maintenance, allotted houses, water and electricity, Canteen, club, Mess.
3.1.4. Quality and Assurance Department
This department check the quality of product, which are incoming and outgoing from the
organization.
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3.1.5. Purchase Department

According to purchase order or demand of the product by PPC department, purchase the
items from the industrial market on net or credit basis.
3.1.6. Project Management Department
These departments go to site and check the location after delivery. If they find any
problem then solve it according the demand of plant.
After completion of the project, team of P.M.D also fit that machinery to customer
area.
If machinery need maintenance than P.M.D also work on that
3.1.7. General Store Department

They allotted items or material code, tagging (Code paste to specific item), Staging,
Made R.R, Post the item in stock register, handle Store return on credit (S.R.C)
3.1.8. Design Department
Design the projects in new style, so that increase sales volume against competitors.
3.1.9. TrainingDepartment
They give orientation to the new employees and the train the trainee in the best way.
3.1.10. Sales and Marketing Department
I had been working with sales and marketing departments which are divided as per scope
of their work.
Sales and Marketing department divide in to two sub department, sales and marketing
department (1) and sales and marketing department (2)
Sales and Marketing department (1) work under the supervision of the Mr. Khalid khan
DGM , and Mr.shafqatHussain is assistant manager of the department and their concerned
group as per their scope is dealing with the sugar plants boilers etc.I had worked two
weeks with Mr.shafqatHussain.
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Sales and Marketing department (2) work under the supervision of the M.ZubairWarraich
AGM and Mr. IftikharQadir is DGM of the department and Mr.Shakeel Ahmed is
assistant manager of the department and their concerned group as per their scope is
dealing with the cement, Hydro power plant, steel and chemical plants etc
Sales and Marketing department market their products and find tenders to get the order.
There are two methods to get order.
Advertisement.
Customers itself send tender inquiry.
Advertisement Customer advertise their tenders in newspaper and sales and marketing
department of HMC see the tender and send their invitation, and then processing is
started.
Customers itself Send Tender Inquiry Customers know that HMC is a manufacturing
company so they themselves send their tender inquiry to HMC to participate in their
bidding.
Number of Employees with in Marketing Department
Sales and marketing department 2Sales and marketing department 1
Head of DepartmentKhalid khanHead of DepartmentM.ZubairWaraich
(DGM)
Data Processing Staff SarfarzAhmed (JO)
(AGM)
Data Processing Staff Ms.Tahira (DO)
Secretarial StaffGhulamYounis (AM)Secretarial Staff MFaridoon (JO)

Sugar Plants,Boilers,AlliedServices,Pak Railway Oil &Gas,Chemicals& Cement Plants
M.Ilyas (DM)
IfikharQadir. (DGM)
Concerned Product Group
Concerned Product Group
ShafqatHussain (AM)
ShakeelAhmed (AM)
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Abdullah Saud Khan (T.E)
M.Iqbal (Manager)
Sohail Ahmed (T.E)
M.UmerFarooq (T.E)
AsifZeeshan, (J.E)
AsifFareed (AM)
Total employees 13 Total employees 13

3.2. Products Lines
Both of marketing department deal with these products lines and able to provides full
plants or also parts of machinery.
Cement Plant and Spares 600-5000 TPD and also convening and pollution control
machinery
Sugar Plant and Spares(Casting and Forging) 500-12000 TCD
Process Plant Equipment Pressure Vessels, Columns, Heat Exchangers, Drums, Storage
Tanks and Kilns
Chemical & Petro-Chemical PlantsSulphuric Acid Plant, Basic Chromium Sulphate
Industrial Boilers Fire tube Package units, water tube package units, heat recovery
Thermal Power Plants Equipment for utility boilers, membrane wall, turbine/generator
parts.
Hydro Power Plants Gates, penstocks, wicket gates, head covers, turbine/generator parts
Cranes Electric overhead travelling crane, portal & mobile cranes.
Road Construction Machinery Static & vibratory road rollers, asphalt mixing plant.
Steel Structures For thermal power plants, process plants etc.
Railways Equipment Railway axles, surface traverse, screw coupling & screw jack.
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Castings Iron & steel castings as per specifications

Forgings Shafts, rings and others as per specifications
Automotive Forging For tractors and other automobile
Industry Alcohol plants and equipments, Agriculture machines, Steel Bridges, boilers for
sugar plants etc.
3.3. Departmental Operation
Marketing department has some of its operations which are base on the proper sequence
and as per quality standards of work. Its deals with the customer from getting customer
enquiry and end it on dispatch advice.
Its operation starts from the Public relation and business development in which for public
operation they distribute the broachers blow up documentary and participation in
exhibition within and outside country, advertising trough different medias aand for
business development market research relationship development with client such type of
activities are perform by the marketing department. The main procedure or you can say
that both of marketing department work by following this procedure that is according to
the ISO 9001 certified standards. Starting from the
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Customer
Enquiry
Dispatch
advice
Material
Estimation
Order
processing
Cost
Estimation
Off
er
Price
Estimation
Customer Enquiry
Upon receipt the enquiry is recorded in a receipt register maintain in the department
receipt section and it is allotted proper enquiry no.
In marketing and project management the receipt section send the enquiries to the
concerned department who then the mark the concerned officer or the senior most officer
of the department who then mark the concerned officer to process the enquiry. Then find
out the feasibility of the customer enquiry if possible by sending it the design department
it is not only the product also the capability to make the required product as per customer
term and condition then any decision taken by the product manager and design
department informed the customer accordingly.
Enquiry recorded as
Request for Electric overhead crane with attach specification
Enquiry no:XXX
Quantity no:XX
Delivery date: X\X\XX
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Tender enquiries are received through News paper, Telephonic contacts, by letter, Tcs,
Websites or personal visits of customer to HMC
Material Estimation\Design Department
After getting the customer enquiry as I explained earlier send it to the design department
for the material estimation or check the feasibility either company full fill the required
customer demand as per their condition and terms. In this department find out how much
material is required and which type of material need to import from the other country.
Reference no: XXX
Enquiry no: XXX
Due date: A.S.A.P
Nature of enquiry: Estimate of EOT crane

Informed by letter to the material estimation department by providing complete
specification that are provided by the customer attach as annexure 1, 2, 3 etc.
Cost Estimation
Then same letter are send to the cost estimation to the accounts department by directly
design department or by Marketing & PM department.
Reference no: XXX
Enquiry no: XXX
Date:
Customer:
Quantity: XX
Weight: XX
XYZ
Advance:
XX%
Delivery period:
Direct cost:
X\X\XX
XXXX
XXX
Material cost:
XXX
Labor cost:
XXX
Variable overhead cost: XXX

Total expense:
XXXX
Marketing Expense 1 % of the total

Fix overhead Expense
Other things cost of following are included
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Local purchase:
XXXX
Blasting & Paints

Imports:
XXX
XXXX (By converting into local currency)
These calculation are receive from design and technical department

Fixed over head
Ex work if not mention by customer (like transport and installation)
Turn over tax 1.0 of sales is applicable
Price Estimation
After calculated the cost by the Accounts department it will it to the marketing & Project
management department for the price estimation where actually profit margins are added
and also Landed Cost are calculated if imported some thing out side the country. In
which LC charges Income tax, transport Expense, insurance, warehouse charges, tax duty,
you can say all expenses are included from buying the product to deliver it concerned
place.
Description:
Weight:
XXXXXXXXXXX
XX
Material cost:
XXX
Labor cost:
XXX
Variable overhead cost: XXX

Financial Annual expense: XXX
Sub total of A
XXXX
Paints and sand blasting: XXXX

Landed cost:
XXXX
(a) Sub total of A and B:
XXXXX
(b) Profit margin 10% of A
XXX
Profit margin 3% of B
XXX
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(c) Contingencies 2% of (a)
XXX
(d) Fixed overhead
XXX
(e) Sub total of (a to d)
XXXXX
(f) Sales turnover 1% of total (e+f)
XXXXXX
After getting this total quoted price is mention to the customer as per their enquiry
response by sending offer which is high as per their original calculated answer due to the
discount request factor of negotiation on price by the customer.
Offer \ Proposal
After completing the process of the price estimation final document is ready for customer
as company term and condition this is called offer. In which company rates and total
amount in rupees as per specification of customer requirement are mention. Terms and
conditions are
1. Scope of Supply (ex work Taxila)
1.1)Machinery supply like EOT crane specific annexure amount XXXXX
1.2)Gst 16% of 1.1 above shall be
XXXX
Note: imported company name also mention like Germany

Special note:Gst can be increase as per government policy
2. Mode of Payment
2.1) 25% advance of the crane
2.2) 50% of total price submission of advance shipping document of imported
components for hoist
2.3) 20% of total price before delivery along with Government sale tax
2.4) 5% of total price commission of the crane
3. Warranty
Company also give the warrant to the customer 1 to 2 year as per depend on the product
specification. Under which any fault or problem occur in the machinery company should
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provide free repair services or any serious issue machinery can be replace with its
warranty time period free of cost.
4. Inspection
Company also gives permission to their customer to check or inspect the machinery
before delivery and these expenses of inspection are bear by the customer itself.
5. Delivery
This date start from after getting the advance by the customer after that mostly products
are deliver to their customer with in agreed time period or date.
6. Validity
Order validity time period is 30 days after that offer are revised as customer demand
according to the new rates if changes occur in the market.
7. Exclusions
Our scope of work price which excluded all kind of ex work like civil work, transport,
installation.
Special note
Error can be corrected and always welcome.
Order Processing
Upon
finalization
and
effectiveness/commencement
fulfillment
of
financial
obligation
pursuant
to
of contract from the client contract or purchase order is
processed sent for execution to concerned department section etc.

Reference no: M&PM
Dated: X\X\XX
To: GM (Production Planning Control)
Sale order no:

From: (M&PM)
Customer:
Address:
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Product:
Order no:
Quantity: XX
XXX
Order value:
Order date: X\X\XX
XXXXXX
Sale tax: XXXX
Delivery period: XXX

Mode of payment: Advance payment:
25%
Progressive payment:
50%
Final payment:
25%
Remarks:
other terms and condition of the order or copies of the contract enclosed
Encl:
C.C:
All concerned.
Dispatch Advice
Send letter to the customer by having a subject release of payment.In which mention that
you are required to submit your remaining amount 25% as per clause C mode of payment
along with GST before delivery.
Reference no: M&PM
Dated: X\X\XX
Sale order no:
To: GM (Production Planning Control)
From: (M&PM)
Customer:
Address:
Product:
Order no:
Quantity: XX
XXX
Order value:
XXXXXX
Sale tax:
XXXX
Total:
Order date: X\X\XX
XXXXX
Nature of delivery:
{ } Ex work
Delivery date :X\X\XX

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{ } Ex-site/consignee
Payment detail:
Unit price: XXX

Total price: XXXXX
Sale tax:
{ } payable
{} Exempt
{} value Rs
Remarks:
C.C:
All concerned.
These all type of operation are perform or under control by the sales and marketing
departments.
3.4 Department Structure
Sales and marketing department are divided in to two section sales and marketing
department 1 and 2.thid differentiation is on the bases of their products lines and scope of
work. Sales and Marketing department (1) work under the supervision of the Mr. Khalid
khan DGM , and Mr.shafqatHussain is assistant manager of the department and their
concerned group as per their scope is dealing with the sugar plants boilers etc.I had
worked two weeks with Mr.shafqatHussain.
Sales and Marketing department (2) work under the supervision of the M.ZubairWarraich
AGM and Mr. IftikharQadir is DGM of the department and Mr.Shakeel Ahmed is
assistant manager of the department and their concerned group as per their scope is
dealing with the cement, Hydro power plant, steel and chemical plants etc.
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Chapter 4
4. Function of the Department
Sales and marketing department are responsible to different kind of operations thats
includes the promotion and business development activities and also get the customer
enquiries and nomination of project coordinator for concerned product contract
completion and actually they involve in contract management activities majorly.
4.1. Work, TasksSystem of Organization
Sales and marketing department have many responsibilities. For that they make a proper
procedure for that
To Investigate the Existing Market for the Sale of the Product and Services
In this activity departments search out the markets where there is the need of products
(cement plants, sugar plants, boilers, hydral power, Pakistan railway) and services
(machining fabricating, die forge, quality control) can be sale and increase the company
profits.
ToAcquire Contracts for the Products Listed Under their Scope of Work
Company has wide variety range of productscan form for in which includes the
Sugar Plant and Spares (casting and forging) 500-12000 TCD
Process Plant Equipment: Pressure Vessels, Columns, Heat Exchangers, Drums, Storage
Tanks and Kilns
Chemical & Petro-Chemical Plants: Sulphuric Acid Plant, Basic Chromium Sulphate
Industrial Boilers: Fire tube Package units, water tube package units, heat recovery
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Thermal Power Plants: Equipment for utility boilers, membrane wall, turbine/generator
parts.
Hydro Power Plants: Gates, penstocks, wicket gates, head covers, turbine/generator parts
Cranes: Electric overhead travelling crane, portal & mobile cranes.
Road Construction Machinery: Static & vibratory road rollers, asphalt mixing plant.
Steel Structures: For thermal power plants, process plants etc.
They always search out the tenders emails and direct order, fax for the customer enquiries
for the contracts related to these scope of work.
To Sell Products Services and Spare
Find out the customers request for the operated companies and also for the prospects
customer those are interested to starts their own companies and other projects and sell
them different products and spares of machinery.
Implementing and Monitoring of the Project
This department is responsible for implementation and monitoring the project in all
stages of execution of the project. They get the customer enquiry and after finalizing the
contract to assign it to concerned department and from onward all activities are
monitoring till completing of project and then dispatch process and getting regular
amount of money from the customer to deliver on date and time to the customer
To Ensure Receipts and Transfer of Required Information
It is also responsible to get the required information and transfer of money and any other
information like drawing specification, delivery time, are agreed with the customer.
Provision of Erection, Installation, Commissioning
They also help the customer as per their request or complaints for the erection of projects
and also help to install the plants ,mill, in their required place and all related dealing with
the customer to make it sure that everything is fine and as o from and to client per
customer demand and conditions.
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4.2. Decision Making Environment

Every organization needs to make decisions at one point or other as part of managerial
process. Decisions are made in the best interest of the organization. For that matter,
decisions made by the organization are to lighten the way forward. Be it strategic,
business activities or HR matters, processes of making decisions is complex, involves
professionals of different genre. While small organization involves all levels of managers,
complex organizations largely depend on a team of professionals specially trained to
make all sorts of decisions. But remember, such a body alone cannot come out with final
decisions For that HMC has a proper decision making team in marketing department
which monitor the all activities that are perform with help of management team. The
decisions are move from top to bottom and also decentralized.
Any customer enquiry receive by the marketing department send it by the top
management to the concerned department to make offer of that if it is any problem in the
feasibility of project between the product manager and design department then it is refer
to the HOD for the final decision. After that it will send this bill of material and quantity
document are send to the accounts department with attach documents requirement of
informationto work on that project. After completion the process of cost finding add the
price profit margin in it which decided with the help of top head of the department and
quote the final price to the customer. Ifcustomer accepts the offer and term and condition
of the companies then order is send to the order processing department after all type of
impotent commercial matter discussion with the head of the department. Order
processing department expert perform the operation as per demand of specification of the
customer that are provided by the Marketing department if any kind of defect or fault in
the specification or in the drawings as per standard they inform the concern department
head which discuss it with the customer through the marketing department and then after
fixing the problems with the customer final decision are send to the order processing
department and they complete the project within the agreed delivery time period. So all
major decisions are taken with help of top management with involving the lower
management team keeping in mind their suggestion and recommendation.
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4.3. Mobilization of Resources

When marketing department get the contracts from the customer after that recruitment of
resources are perform by involving sales and marketing, finance department, purchase
department, planning and production and HR department as requirement.
Sales and Marketing department of HMC see tender and apply after completion of the
offer they send this project detail to Technology department checks that they complete the
project or not. After acceptance of offer Customer issue sales order in the name of
HMC.Sales order send in different departments like Store, finance, PPC, Purchase,
Design, Cost section Then P.P.C department checks that machinery, main power
(workers) and demand of goods are available or not. As per demand of completion of the
project requirement HRM department provided main power like skilled employee and
worker that are helpful in order to complete the project with in agreed time frame.
Finance department calculate the budget of the project and provide the finance recourse
to the purchase department with the help ofgetting by the marketing department from the
customer as per agreed condition. Costing department calculate per unit cost of material
used in project. Purchase department purchase the material that use in project.Q&A
department check the quality of material that use in project. General Store receives the
material that purchases the purchase department.
4.4. Working of Purchase Department with Different Departments
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4.5. Production/Services Provision by the Department

As per the marketing department is not directly involve in the production they provide the
services to the customer starting from the customer enquiries deal with the customer
provide and get the information that are need or requirement by the department to
continue the process of customer order production. As per company behalf HMC provide
design and manufacturing services, Iron foundry steel foundry, die forging, Quality tests,
Fabrication, Machining as per matching the capabilities as main contractor, consortium
partner and as sub-contractor. HMC has rich experience of handling projects on turn key
basis within and outside the country. HMC can also provide supervisory services for
installation and commissioning of the projects.Marketing department get all kind of these
products contract as per customer enquiry process. After that they manage all kind of
contract management activities and monitor all operation on the behalf of the customer.
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All kinds of complaints and quires or any negotiation regarding the project related are
handling by the sales and marketing department.Toinvestigate the existing market for the
sale of the product and services, investigate existing markets and to initiate and develop
new products for new markets, acquire contracts for the products listed under their scope
of work, acquire contracts for the products listed under their scope of work, sell products
services and spare parts prospective buyers and Provision of erection, installation,
commissioning these all done by sales and marketing department.
CHAPTER 5
5. Critical analysis with Practical Experience Work
5.1 Analysis Tools Applicable/Applied in the Departmental Procedures
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There is as such no specific tool that are using by the marketing department. After
making the final offer they send to the director of the department and they final the offer
by keeping profit margin but product quality and standard are not compromise at any
cost. They have proper set of format in document form which is according the ISO 9001
certified and use in the daily work operation. There are set standard in the quality
assurance department where material is checked as per requirement.
5.2 Organizational/Departmental Analysis With Reference to the
Industries Listed on the Stock Exchange/ or Industrial Standards
All of the departments perform their work as per set standard that is approved by the ISO
9001 and Pakistan best capital engineering goods company have the authority to use the 4
ASME stamps due to its standard and quality work there is as such no direct competitors
which can compete with the HMC BUT for the comparison I am here to include the ratio
analysis of company from period 2005 to 2007.the tie period which I include for the
comparison which is five years old due unavailability of financial data. But it will give
somehow the comparison look for the company.
5.2.1 Ratio Analysis
Internal Liquidity
Coverage Ratios.
Activity Ratios.
Profitability Ratios.
Internal liquidity
Ability of the firm to meet future short term financial obligation. These obligations are
account payable or notes payable, to current assets or cash flow that will be available to
meet these obligation or liabilities.
Current Ratio
It is the relationship between current assets and current liability.
Current Ratio = Current Assets / Current Liability
2007
1,377,306,000 / 1,506,125,000
= 0.91
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2006
1,491,587,000 / 1,607,683,000
= 0.93
2005
1,331,949,000 / 1,423,515,000
= 0.94
Result Company's current liabilities are greater than Current Assets. Current Ratio should
be high in order to meet short term obligation. But we see that current ration is decreasing
yearly because its current liabilities are more increasing than its current assets.
Acid Test (quick) Ratio
Some current Assets are not very liquid to meet current liabilities. Quick ration include
those assets which immediate convert in to cash to meet current liability.
Quick Ratio = (Current Assets Inventories) / Current Liability
2007
(1,377,306,000 633,034,000) / 1,506,125,000
= 0.49
2006
(1,491,587,000 835,251,000) / 1,607,683,000
= 0.41
2005
(1,331,949,000 762,634,000) / 1,423,515,000
= 0.40
Result Quick Ratio is also low but we see that it is increasing like 0.40 to 0.49.
Coverage Ratios
Ratios that relate the financial charges and ability of firm to cover them.
Interest Coverage Ratio
Ability of firm to cover interest charges.
I.C.R = Earnings before interest & taxes / Interest Expense
2007
101,666,000 / 82,865,000
= 1.23
2006
116,572,000 / 86,877,000
= 1.34
2005
144,489,000 / 93,711,000
= 1.54
Result Greater the ratio, that the company could cover its interest payment without
difficult. But company interest coverage ratio is low.
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Activity Ratios
Activity ratios measure that how effectively the firm is using its assets.
ReceivableTurnover
It shows the quality of Account Receivable. Which means that faster the account
received, sooner the firm gets the fund that can be used to pay off its own current
liabilities.
Receivable T/O = Net Sales / Receivables
2007
Receivable T/O = 1,767,755,000 / 39,602,000
= 44.64
2006
Receivable T/O = 1,737,021,000 / 31,610,000
= 54.95
2005
Receivable T/O = 1,403,087,000 / 31,172,000
= 45.01
Result Company can get 44.64 times account receivable in a year. Receivable Turn over
should be greater and HMC's activity ratio is good.
Receivable Collection Period
This ration calculates the days that how many days the company can get its account
receivable in a year, if it is low than it is good for company.
Average R/A collection period = 365 / Receivable T/O
2007
Collection period
365 / 44.64
= 8.18
2006
Collection Period
365 / 54.95
= 6.64
2005
Collection Period
365 / 45.01
= 8.11
Result The Company gets its account receivable in 8 days in a year. That is a reasonable
ratio.
Inventory Turnover
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It show that how may times to use its inventory in a year. Inventory Ratio should be
higher.
Inventory T/O
= C.G.S / Inventory
2007
Inventory T/O
1,584,773,000 / 633,034,000
= 2.50
2006
Inventory T/O
1,500,203,000 / 835,251,000
= 1.80
2005
Inventory T/O
1,234,528,000 / 762,634,000
= 1.62
Result The Company uses its inventory 2.50 times in a year. Company is less efficient in
inventory management.
Inventory Collection Period
This ration calculates how many days, the inventory is turned into accounts receivable
through sales. Inventory collection period should be low.
Average Inv. collection period = 365 / Inventory T/O
2007
Collection Period
365 / 2.50
= 146
2006
Collection Period
365 / 1.80
= 203
2005
Collection Period
365 / 1.62
= 225
Result The Company delivers its customers 146 Days in a year.

Total Assets Turnover
It show that how the company utilize its total assets. If it has 1000 computers and it use
500 computers than it cannot utilize its assets in a proper way. Ratio should be greater.
Assets T/O = Net sales / Total Assets
2007
Assets T/O
1,767,755,000 / 2,236,352,000
= 0.79
2006
Assets T/O
1,737,021,000 / 2,391,093,000
= 0.73
2005
Assets T/O
1,403,087,000 / 2,278,639,000
= 0.62
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Result HMC company ratio is 0.79, which is a reasonable ratio. Which show that
company utilizes its assets in a proper way.
Total Fixed Assets Turnover
It show that how the company utilize its fixed asset in a year. Ratio should be greater.
Total Fixed Assets T/O = Net sales / Total fixed assets
2007
Fixed Assets T/O
859,046,000 / 2,236,352,000
= 0.38
2006
Fixed Assets T/O
899,506,000 / 2,391,093,000
= 0.38
2005
Fixed Assets T/O
946,690,000 / 2,278,639,000
= 0.42
Profitability Ratios
Gross Profit Margin
Gross Profit Margin = (G.P / Net Sales) 100 %
2007
G. P Margin
(182,982,000 / 1,767,755,000) 100%
= 10.35%
2006
G. P Margin
(236,818,000 / 1,737,021,000) 100%
= 13.63%
2005
G. P Margin
(168,559,000 / 1,403,087,000) 100%
= 12.01%
Operating Profit Margin

Operating Profit Margin = (O.P / Net Sales) 100 %
2007
O. P Margin
(60,428,000 / 1,767,755,000) 100%
= 3.42%
2006
O. P Margin
(61,760,000 / 1,737,021,000) 100%
= 3.56%
2005
O. P Margin
(45,582,000 / 1,403,087,000) 100%
= 3.25%
Net Profit Margin

Net Profit Margin = (Net Income / Net Sales) 100 %
2007
N. P Margin
(9,962,000 / 1,767,755,000) 100%
= 0.56%
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2006
N. P Margin
(21,010,000 / 1,737,021,000) 100%
= 1.21%
2005
N. P Margin
(43,763,000 / 1,403,087,000) 100%
= 3.12%
Return on Total Assets

Return on Total Assets = Net profit after tax / Total Assets
2007
9,962,000 / 2,236,352,000
= 0.0045
2007
21,010,000 / 2,391,093,000
= 0.01
2007
43,763,000 / 2,278,639,000
= 0.02
5.3 Behavior of the Studied Organization in Provision/Production of

Various Services/ Products to Different Sectors of Societies
HMCHeavy Mechanical Complex (Private) Limited is a leading engineering goods
manufacturing enterprise in Pakistan ISO 9001 certified and is authorized to use 4 ASME
stamps U, U2, S & PP for equipment manufactured according to ASME code. The
manufacturing is backed by excellent quality control and testing facilities to meet the
product and customer quality requirements. Thats why they are not only selling their
products with in the country and gets the order from all around the world. They have
regular customer which can never thought to get products from anyone else company
mean they have the trust on the HMC made products.
5.4 Future Prospects of the Organization/Recommendations for Future
Learning
Production facilities were established during 1960s-1970s and have become outmoded
since no major investment was made in subsequent years to modernize installed
machinery. Though rehabilitation of major machines has been done on a regular basis
with the help of the Chinese, plant capability is no more compatible.
It is planned to upgrade the plant and general purpose machinery, and material handling
equipment will be refurbished. Steel melting facilities will be overhauled and upgraded
by installing modern instrumentation, and by adding an induction furnace and vacuum
de-gasification stations to produce refined grade steels required for manufacturing the
turbines. A heavy-duty forging press of 15,000 tons capacity and heat treatment facilities
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will be added to the Forge Shop. Heavy duty turning, boring, milling and drilling CNC
machines will be installed in the existing Machine Shop. In addition, precision welding
machines, material preparation equipment and quality assurance equipment will also be
installed.
The HMC has a well-equipped product design and engineering office, with modern
computer-based hardware and software facilities. Technology acquisition and
assimilation has been successfully done, through technology transfer agreements and
under joint ventures with foreign companies. This has not only enabled HMC to become
a market leader in the supply of sugar mills and cement plants on a turnkey basis
domestically, it also placed Pakistan on the export map. To enlarge its scope of supply of
equipment and technical services for the energy and industrial sectors, the HMC will
develop further its design and engineering capabilities.
In future if anyone want to learn the company they get the all department information
instead of being focusing on one department of the organization because all department
work are interrelated with each other so to get the experience of all department will help
to better understand the company procedure and the way its work.
CHAPTER 6
6. Short-Falls/Weaknesses of the Department
As per management context there is issue of training and development of the staff
some of the employees dont have the exposure even how proper use of internet
facility and still paper base working are using in the organization
There is no proper system of maintaining the records of their customer enquiry

files when there is a need to review the previous record of the customer enquiry it
can be problem for that and also waste of time to search the concern customer file
record.
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There is another issue no product innovation they are just making those products
which are being developed from previous 15 to 20 years.
Lack of advertisement can be a problem decreasing their sales also because their
regular customers who make order to the company for their projects demand there
is a rare chance to get new customer.
There is a chance that in coming 5 to 6 year company faces the problem of skill
labor deficiency because their experience staff or you can say knowledge worker
are going to retired and also issue for placing the right skill employee on the right
place. Design expert engineer are working in the marketing department for
making draft for the customer enquiry
There is another problem for the employees are job security they hire the
employees when their demand for the projects increases and after completion of
their projects again fire by the company.
CHAPTER 7
7.1 Conclusion
Heavy Mechanical Complex (Private) Limited is a leading engineering goods
manufacturing enterprise in Pakistan.HMC provide manufacturing services both on our
own or customers design.HMC have gained rich experience in designing and
manufacturing of large projects through collaboration with internationally reputed
engineering organizations. All its processing facilities are in-house including Designing,
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Fabrication, Machining, Iron and Steel Castings, Forgings, Heat Treatment, Assembly,
Sand Blasting, Painting and Galvanizing etc.Since its having gone into commercial
production in 1971, the company has played a crucial role in the industrial and socioeconomic development. Its main contribution has been in achieving self-reliance in the
sector through import substitution, saving billions of dollars and, at the same time,
earning millions of dollars through export promotion. For almost two decades, HMC
remained flagship of national prime engineering industries, having earned recognition as
leading manufacturers of capital goods of international standards. The company earned
significant profits, provided employment to thousands, trained hundreds of engineers and
technicians, and developed new products for defense and strategic industries.HMC is ISO
9001 certified and is authorized to use 4 ASME stamps U, U2, S & PP for equipment
manufactured according to ASME code. The manufacturing is backed by excellent
quality control and testing facilities to meet the product and customer quality
requirements. They have the best capabilities to produce international standard products
there is only need Government Pakistan play a role for the survival and restructure their
machinery as per the computer numeric control system which give the new blood to this
world class engineering capital goods company and also can challenge the world other
best companies more competitively.
7.2 Recommendations
HMC organization seriously and continuously bases plans different training and
development programs for their staff to match their competencies with
international standards and enhance their skills as per emerging technologies
Training and development of employees is a continuous procedure which is the
only meaningful and logical approach in the condition of knowledge
obsolescence, dynamic changes and increasing need for constant product and
service innovations. Human resources represent intellectual capital which is the
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new source of organizational resources, and the organization could increase them
only through training, development and motivation of employees. The prosperity
of organizations becomes explicitly dependent on the intellectual capacity of their
employees and their ability to change and adjust to the dynamic business
environment. It could be concluded that an organization which fails to recognize
in due time the emergence of knowledge economy and does not transform into an
organization of knowledge, i.e. does not realize and accept the changes unfolding
on a global level, gradually, but inevitably is headed to self-destruction. In that
context, the introduction of employee training and development as a managerial
function and business orientation represent a huge challenge for our organizations.
There are plenty of companies providing software to the IT department for data
management facilities. Companies need to save and maintain the data in the
propersystem where at the time requirement it can be available only one
command from the computer. Oracle Database 11g capabilities that help IT
departments better optimize their storage infrastructure, enabling administrators to
deliver a cost-effective, scalable data management platform that is easy to
manage, reduces costs, and protects data while continuing to deliver the
performance and availability that todays businesses require they have thousands
of user which take the services of the oracle company for their data management
because this Oracle Automatic Storage Management greatly enhances our ability
to manage storage in a database. It allows multiple tiers, so we can adapt different
kinds of storage to different application needs and performance requirements. It
balances on demand for optimum performance. although this can be little bit
expensive investment for applying this system and then train the people but it will
give benefit for longer period of time for HMC.

The world is changing now very rigorously the companies who are more
concentrate on the product development and innovation they get the advantage for
their companiesthere is need for HMC try to develop new and innovative
machinery instead of just focusing what they are being generating from last 15 to
20 years it will help to increase their value and also more customer can be capture
from all our the world and earn more revenue.
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HMC is the known all our the world for their quality engineering goods but still
always need for the promotional and advertisement activities for reminding the
customers and also help to get new customer so there is need to arrange some
kind of workshops sponsorships and promotional activities for the introduction of
their capital good to new customers.

HMC need to get the help and consultancy for the training and development for
the new employees from their knowledge worker. Knowledge worker are getting
importance all around the for their success of the company operation and they
speciallyheir for the part time or just time availability of the experience
personalities to get help in their companies operation and learning the different
skills.
There is need to proper utilize their talented engineer and worker as per their
interest and skill related work it will help to perform better and polish their skills
for the future requirement of the company.

HMC need to advancement in their machinery or urgent bases to compete with the
international companies because they are using manual bases machinery which
have low performance and productivity they need to shift their machinery to
computer numeric control machinery which are being using now a days by
different companies to increase their productivity.
7.3 References
Raza.A.(2004,Aprail 4).Internship Report On Hmc.Scribd.com.Retrieved July
22,2013,from http://www.scribd.com/doc/28079439/Internship-Report-Hmc
Hmc ,(2000,June 18 ).Heavy mechanical complex .Hmc.com Retrieved July
22,2013,fromhttp://www.hmc.com.pk
Hmc ,(2000,June18 ).Heavy mechanical complex .services.htm Retrieved July
22,2013,fromhttp://www.hmc.com.pk/services/services.htm
Page
Hmc ,(2000,June18 ).Heavy mechanical complex .products.htm Retrieved July

22,2013,fromhttp://www.hmc.com.pk/products/products.htm
Hmc ,(2000,June18 ).Heavy mechanical complex .products.htm Retrieved July
22,2013,fromhttp://www.hmc.com.pk/products/products.htm
Hmc ,(2000,June18 ).Heavy mechanical complex .facilities.htmRetrived July
24,2013,fromhttp://www.hmc.com.pk/facilities/facilities.htm
Ali .H. (2006,January 09)Privatization imperatives of Heavy Mechanical Complex
.Dawn.comRetrived July 22,2013,from htt://www.dawn..com/news/173490/privatizationimperatives-of-heavy-mechanical-complex
Vemi.(2007) Employee Training and Developmentand The Learning Organization, The
journal Economics and Organization Vol. 4, No 2, pp. 209 - 216
Townsend.(2007) Optimizing and Protecting Storage with Oracle Database, Future It

Development Oracle. Vol. 6, No 4, pp. 40 - 60
Khan ,K. (2010, November 24). Hmc: Marketing & Project Management. Sub procedure.
Rawalpindi: Taxila.
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Internship report on HMC,Taxila

Internship report on HMC,Taxila

To know how operations are perform in that kind of big organization.

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Internship report on HMC,Taxila

1.3.Overview of the Organization

Internship report on HMC,Taxila

chemical plants, etc. Boilers, cranes, construction machinery, material handling

Skilled/semi skilled worker

1.3.5.Product Lines, Product Portfolio

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Internship report on HMC,Taxila

HMC specializes in Engineering, Designing, Manufacturing, Installation and

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Internship report on HMC,Taxila

the entrance of the other companies in this industry sector.

and also has ability to strong competition.

confidence on their capital products.

there demand is rises short run.

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Internship report on HMC,Taxila

customer and increase its profits.

buy its products. So its help to generate more revenue.

threading its profits.

profitability and also decrease in the demand.

may effect its working badly.

threat to its profitability.

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Internship report on HMC,Taxila

Lack of resources for investment could mean HMC failing to exploit

slowdown such as the recent recession can have negative impact on

Internship report on HMC,Taxila

COMSATS Institute Of Information Technology

Internship report on HMC,Taxila

COMSATS Institute Of Information Technology

Internship report on HMC,Taxila

BinQasim 2x210 mw, Wapda/Pepco's

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Internship report on HMC,Taxila

An organizational structure consists of activities such as task allocation, coordination and

2.2 Organization Hierarchy

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Internship report on HMC,Taxila

CHIEF MEDICAL OFFICER

2.3.Comments on the Organizational Structure

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Internship report on HMC,Taxila

authority and levels of responsibility are apparent.

interest of their area.

Communication across different departments tends to be less effective some of

benefit its own interests rather than the organizations as a whole.

Increased time may be required to respond to clients.

2.4.Competitive Positioning of the Organization in the Industry

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Internship report on HMC,Taxila

Internship report on HMC,Taxila

Internship report on HMC,Taxila

2.5. Learning as an Internee from the Management Context

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Internship report on HMC,Taxila

Duties and Responsibilities of each department are as below;

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Internship report on HMC,Taxila

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