July 31
REPORT
2012
Fauji Fertilizer Company Ltd
The report is on Fauji fertilizer company limited. It consists of an introduction for the company. Including all the hierarchal structure of the organization. All the details have been given in the report
Fauji Fertilizer Company Limited History
The Fauji Foundation is a trust set up for the welfare of ex-servicemen and their dependents. It is incorporated under The Charitable Endowments Act, 1890.
Although the current name dates from 1967, the origin of the Foundation lies in the Military Reconstruction Fund (later known as the Post War Services Reconstruction Fund) established in 1942 by the Government of British India for the post-war welfare and rehabilitation of ex-servicemen and their dependents, defined as beneficiaries.
These beneficiaries now number approximately 9.6 million, i.e., around 7% of Pakistans population. Fauji Foundation extends services in the fields of health, education, technical & vocational training. This is achieved through 11 hospitals, 24 medical centers, 82 mobile & static dispensaries, 98 schools, 2 colleges, and 75 technical & vocational training centers.
The raison detre of the Foundation is the welfare of its beneficiaries by law. Therefore, strong commercial operations are a must to fund the welfare for an expanding beneficiary base, on a sustainable basis. Thus it has a number of industrial & commercial concerns, (generally known as the Fauji Group); half of them are fully owned by the Foundation and in the remaining it controls the boards, through major investment & shareholding.
Spending more than Rs. 23.8 billion since inception on welfare, the Foundation provides services in the areas of healthcare, education, educational stipends, technical and vocational training.
Over 2.1 million patients treated per year through the FF Healthcare System Approximately 41,112 students enrolled in the FF Education System
Approximately 71,385 educational stipends dispersed each year Over 6,000 individuals trained annually through the Vocational & Technical Training Centers
In FY 2006-07, the commercial operations of the Fauji Group, contributed almost Rs. 36 billion to the national exchequer in the form of duties, taxes & levies.
The Group employs approximately 13,000 personnel, approximately 60% of whom are from the civil sector, the other being from amongst the beneficiaries of the Foundation.
Its growth through judicious investments and the attendant social facility it has provided to a large and expanding sector of the population, has given rise to a unique model of sustainable economic growth for the purpose of funding welfare activities. This is an example worth emulating and a story worth telling. Since the Foundation does not accept any grants, there is no option but to increase income through prudent investment. The last 50 years of its existence suggest that the Foundation successfully meets all its continuously expanding welfare obligations across the country, from resources generated itself.
Such growth has been built upon a solid value system. The Fauji Foundation, defaults on no payments, pays all its dues, invests in well regulated sectors only, does no speculative business,
Has no donation receipt system in place, meets all the requirements of its welfare operations from its own resources.
Manned by a management dedicated to further the cause for which it was set up. Other investors queue up to partner with it and most readily trust its board control.
Amongst the business houses of the country, it is a by-word in reliability and dependability.
industrial group.
Holding Entities (FF) Fully Owned - Fauji Cereals, Foundation Gas, Fauji Sugar Mills, Fauji Corn Complex, Foundation University, Fauji Security Services, Overseas Employment Services, Experimental & Seed Multiplication Farm. Associated - Mari Gas Company Ltd., Fauji Cement Company Ltd., Pakistan Maroc Phosphere, S.A, Fauji Fertilizer Company Ltd., Fauji Fertilizer Bin Qasim Ltd., Foundation Securities (Pvt.) Ltd., Fauji Kabirwala Power Company Ltd., Fauji Oil Terminal & Distribution Company Ltd.
FFC at a Glance Largest chemical fertilizer producer in the country Largest market share Established in 1978 as a joint venture between Fauji Foundation and Haldor Topsoe First Urea complex commissioned in 1982 The company has seen phenomenal growth ever since through: De-bottlenecking of Plant - 1 in 1992 Establishment of Plant - 2 in 1993 Acquisition of PFSL in 2003
FFC now has 3 plants with a combined capacity of 5771 MTPD of prilled urea FFC has controlling shares in FFBL which produces 1670 MTPD of granular urea plus 1350 MTPD of DAP
FFC along with FF, FFBL & OCP Group of Morocco entered into a Joint Venture agreement in Sept 2004 to form a Company in Morocco named "Pakistan Maroc Phosphore (PMP)" with an equity of US$ 95 Million equivalent. The project is located at
Jorf Lasfar, Morocco. This Project will produce 375,000 MT of Phosphoric Acid per year by consuming 1,300,000 MT Phosphate Rock and 370,000 MT Granular Sulfur.PMP shall meet total Phosphoric Acid requirements of FFBL. FFC is also emerging as a major player in the spheres of manpower training and turn around services provider in Pakistan and in the Middle East
Corporate Vision
FFCs vision for the 21st century remains focused on harmonizing the company with the fresh challenges and encompasses diversification and embarking on ventures within and beyond the territorial limits of the country in collaboration with leading business partners.
Mission Statement
FFC is committed to play its leading role in industrial and agricultural advancement in Pakistan by providing quality fertilizers and allied services to its customers and given the passion to excel, take on fresh challenges, set new goals, and take initiatives for development of profitable business Manufacturing 3 urea manufacturing plants located at Goth Machhi and Mirpur Mathelo.
Engineering Essentially meant to provide engineering and technical back up to the plant operations Additional responsibilities include monitoring plant performance, development of new projects, advising management on technical matters and development of a technological base along with consultancy functions.
Marketing Deals with all marketing operations including planning, distribution, sales, farm advisory services, field warehousing, finance and administration.
Objectives of the company
The Broad objectives of the company To sustain its role as a market leader in urea production and marketing To deliver exclusive values and services to the shareholders and customers through its strategies To place great value on social responsibility and welfare To develop a culture based on the integrity, honesty, fairness and respect To develop the agricultural awareness in the farmers through the media and training To provide the technical services to the farmers free of cost To hire and retain satisfied workplace To be environmental friendly organization To maintain its standard by providing quality products To promote education in the farmers y providing them with the merit scholarships
Business Areas
Along with Sona urea it also markets imported nitrogen, phosphate, and potash based fertilizers.
Also markets the granular urea and DAP manufactured by FFBL. Export of fertilizers
FFC - HIEARCHY
Human Resource Division
Quality Procedure manual index (QPM)
An audit system in which every procedure and data related to the company and its employees is being maintained and regulated in the written form in this index. It includes all the functioning of the HR department. The HR department of FFC does the following tasks
1. Hiring:
To hire the competent and most suitable personnel to fill up the vacant positions in the nonmanagement staff
Description: While hiring Tests are conducted in TTC at specified location. Candidates qualified for the final interview are paid TA/DA as per policy in vogue. Selected candidates are offered with letter by HR-GM. Afterwards; the appointment letters are being issued to the selected candidates.
2. Documentation:
To obtain and maintain the detailed and updated information regarding all the employees is being documented by the HR section
Description: In documentation duly filled in by new induces are submitted to HR-GM along with the photograph, copies of the educational qualification, experience certificate, NIC, domicile, joining report, acceptance letter, candidate and personal Bio-data, FFC Medical card, Family data form. All requirements after being attached together are finally send to the Head- Office.
3. Maintenance of record
Different records are being maintained to get updated data. Requirements: Name Designation Date of Birth Marital status Academic qualification CAT record
Promotion Record
4. Leave
Three types of leaves comes under this portion Casual leave Sick leave Annual leave Description: casual and sick leaves are being issued from the very first day of the joining of the employee in the company while the annual leave is issued when the employee has served the company up to the year of at least 1 year.
5. Medical bills
To rationalize and regulate provision of medical cover and employees an different departments. Description: daily viewed by CMO (chief medical officer). Entries are done in the computer and then are sent to Finance Department of the company
6. 10-C Bonus
This bonus is given to the staff employees only. 1st January to 30th September, employees are given this bonus because it is stated in our law to give this to union staff.
7. CAT
CAT stands for company assisted travel. It is a claim of management employees. It is entitled to permanent management employees. 8 CATS are employed to all employees. Supporting document is always checked
8. DES
It stands for daily expense statement. To process daily expense in respect of employees who proceed on out station office duty. Description: daily expense statement recommended by section head received in HR-GM. It is decided, checked and corrected in accordance to policy. It is then send to Finance GM.
QUALITY POLICY
FAUJI FERTILIZER COMPANY LIMITED is committed to attaining excellence in all areas of its operations. We continue to strive for improvement through coordinated efforts, feedback, and training and employee motivation. We are determined to ensure customer satisfaction, companys productivity and profitability, occupational health, safety and care for our environment and continue playing our role in the industrial and agricultural development in Pakistan.
SAFETY AND HEALTH POLICY
At FFC we are committed to maintain a safe and healthy environment having the same significance as productivity. We inculcate safety culture by specific training, incentives, and effective control, to ensure a safe and healthy working environment. We resolve to attain the highest standards of safety and health through consistent improvements in on-the-job and off-the-job safety and in the working conditions.
ENVIRONMENTAL POLICY
FAUJI FERTILIZER COMPANY LIMITED is committed to achieve environmental protection through compliance with all the applicable laws and regulations. An active pollution prevention program is followed with efforts for continual improvement in the environmental aspects related to plant operation
POLICY STATEMENT OF ETHICS AND BUSINESS PRACTICES
WHAT IS ETHICS?
Ethics s when social interactions are premised on the unquestioned belief that the self and other deserve equal consideration.
Ethics, on other hand, is not an individual attribute as it is a quality that marks social interactions. In other words, one cannot be ethical alone as it becomes relevant only in the context of social relations. But only those interactions are ethical which are premised on a concern for other people. Ethics seek justifications in the lives of mortals and not in the eyes of GOD. This also implies that people have a definite stake in upholding these ethical norms as there is something that is experientially valuable in term for everybody.
A quick even trivial, example of ethics is traffic rules. In order to get to a destination in the shortest time for everybody it is the best that all drive in their own lane and obey street signals. Deviations from this may work for some time but is collectively counterproductive.
BUSINESS ETHICS
Business Ethics demands that profit be made on a sustainable basis by observing norms that respect other people. Fairness, transparency, and individual ambitions must all find a place in the practice of Business Ethics.
The success f a Company depends on its ability to create a culture which makes clear to the naked eye that individual gain is an integral part of collective profit. This demands that all functionaries in a corporate unit pull together as a term.
It is the policy of FAUJI FERTILIZER COMPANY LIMITED to follow the highest business ethics and standards of conduct. It is the obligation of every one of us to act responsibly; that is, to be honest, trustworthy, conscientious, and dedicated to the highest standards of ethical business practices.
The companys reputation and its actions as a legal entity depend on the conduct of its Directors and employees. Each one of us must endeavor to act according to the highest ethical standards and to be aware of and abide by applicable laws.
We all must ensure that our personal conduct is above reproach and complies with the highest standards of conduct and business ethics and have the obligation to ensure that the conduct of those to work around us complies with these Standards. The Companys Code of Business Ethics and Standards of Conduct will be enforced at all levels fairly and without prejudice.
This code to which the company is committed in maintaining the highest standards of conduct and ethical behavior is obligatory, both morally as well as legally and is equally applicable to all the Directors and Employees of the company who all have been provided with a personal copy.
STANDARD OF CONDUCT FOR EMPLOYEES
We shall conduct our employment activities with the highest principles of honesty, integrity, truthfulness and honor. To this end, we are to avoid not only impropriety, but also the appearance of impropriety.
We shall not make, recommend, or cause to be taken any reaction, contract, agreement, investment, expenditure or transaction known or believed to be in violation of any law, regulation or corporate policy.
We shall not use our respective positions in employment to force, induce, coerce, harass, intimidate, or in any manner influence any person, including subordinates, to provide any favor, gift or benefit, whether financial or otherwise, to ourselves or others.
In business dealings with suppliers, contractors, consultants, customers and government entities, we shall not provide or offer to provide, any gratuity, favor or other benefit and all such activities shall be conducted strictly on an arms length business basis.
While representing the company in business dealings with third parties we shall not allow ourselves to be placed in a position in which an actual or apparent conflict of interest exists. All such activities shall be conducted strictly on an arms length business basis.
All of us shall exercise great care in situations in which a preexisting personal relationship exists between an individual and any third party or Government employee or official of an agency with whom the company has an existing or potential business relationship. Where there is any doubt as to the propriety of the relationship, the individual shall report the relationship to management so as to avoid even the appearance of impropriety.
We shall not engage in outside business activities, either directly or indirectly, with a customer, vendor, supplier or agent of the company, or engage in business activities which are inconsistent with, or contrary to, the business activities of the company.
We shall not use or disclose the companys trade secret, proprietary or confidential information, or any other confidential information gained in the performance of company duties as a means of making private profit, gain or benefit.
ISO-9002
Another major landmark for Fauji Fertilizer Company is ISO-9002 certification for its manufacturing division at Goth Machhi. Quality in all areas has been a hallmark of the Company right from the beginning and our product "SONA UREA" has already established its rightful place in the market. Therefore, to bring our system in line with internationally recognized quality standards, we decided to go for ISO-9002 certification. To achieve a total quality management system, we surpassed the requirement of ISO-9002 standards by including all support services like Administration, Personnel, Finance, Hospital, Schools and Management Club etc. also in the certification scope. We selected Bureau of Verities Quality International (BVQI), England, a leading certification agency as our registrar. BVQI is honored by various accreditation authorities of the world. Quality Management System of FFC got ISO certified in its first attempt during November 1997 with the honor of being the 1st Fertilizer Plant in Pakistan. Since then we have not looked back. We have passed all surveillance audits with commendable remarks from our registrar. Since 21 February, 2001 Quality Management System of FFC now stands recertified (ISO 9002) by BVQI after successful completion of initial certification period of 3 years.
ISO CERTIFICATIONS
Sr. No 1 2 3
Certification Name Brief Description of Certifications ISO-9001:2000 ISO 14001:1996 OHSAS 18001:1999 Quality Management System Environmental Management System Occupational Health & Safety Assessment Series
Findings and Recommendations
Over staffing and unbalanced distribution of the employees in various departments, Like in some semi government institution FFC has also excessive staff than required. Moreover, there is uneven distribution a place where one man can do the job three people working there. And at some place a job of three persons is taken from one man. This uneven distribution results in de-motivation of the employee and gradually his interest in his work decreases that effects the efficiency. In the company there is an unnecessary emphasis on documentation. In transactions a lengthy procedure of paper work is involved that decrease the efficiency and result in the wastage of time. There exists too much centralization in the organization. Managers at the low level are not authorized to make decision even about the minor things which causes a huge differentiation. They have to consult the top management even for the small matters which is quiet time consuming and sometimes result in heavy losses because of untimely decision making on other major issues. So there should be a delegation of authority up to a certain level that enables the lower staff managers to make the required decisions timely through this they feel themselves more involved and responsible for the job and in turn their efficiency increases as well as it will certainly improves their decision making.
