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Submitted To.
Mr. Asmat Nawaz Khattak
Department of Human Resource
Submitted By.
Zain Nawaz
BBA-FA09-154
Submission Date
04 September 2010
Internship Report
On
Submitted To.
Submitted By.
Zain Nawaz
BBA-FA09-154
Dedication
Dedicated to my Family
and all those who helped
me in this internship.
ACKNOWLEDGEMENT
All the praise are for “Almighty Allah” whose uniqueness, oneness and wholeness are
absolute. Who gave me enough courage, knowledge and ability to accomplish this
assignment?
All respects are for His “Holy Prophet Hazrat Mohammad peace be upon him “Who
enabled me recognizes oneness of my Creator?
So I pay my gratitude to Mr. Asmat Nawaz Khattak whose cooperation on every step of
this subject is highly appreciable. Without his cooperation it was not possible to
complete this task. And Special Thanks those who help me during the internship period.
ZAIN NAWAZ
PREFACE
Ittehad Chemical work and research based on assignment are an integral are an
integral part of BBA program. This practical work known as “INTERNSHIP”, play the
vital role for a student of management to come across the practical aspects of the
theoretical concepts of books. Bookish knowledge is of no value without exposure to the
practical. The internship provides an opportunity to see and observe the working
environment of the organization.
This report will give you brief description about Ittehad Chemical Limited; first part is
about the Executive Summary. Other part of this report is about General functions. And
in the end there is SWOT analysis and conclusion about Ittehad Chemical Limited.
Executive Summary:
Ittehad Chemicals Limited (ICL) was established in 1962 under the name of United
Chemicals by a private entrepreneur. ICL was commissioned in the year 1964 with an
installed capacity of 40 MT/day of Caustic Soda. The initial plant was set up by M/S
Oronzio Denora of Italy. Under the Economic Reforms Order, United Chemicals was
nationalized in 1971 along with other industries of the country and renamed as Ittehad
Chemicals. It was initially managed by the Board of Industrial Management and
thereafter the Federal Chemicals & Ceramics Corporation Ltd under the Ministry of
Production, Govt. of Pakistan.
During the state enterprise period its production capacity was raised by another 90
tons/day during the year 1984-85. The factory was ultimately denationalized in 1995 by
the Privatization Commission Govt. of Pakistan. It was acquired by the Chemi Group of
Industries, a Karachi based dynamic entrepreneurial group. The new management
immediately undertook the task of refurbishing the factory, its infrastructure, and
updating its production line to improve efficiency and capacity.
I did my internship in the Human Resource and Internal Audit department of ICL I
learned a lot during my internship period. The personnel department is under the
Human Resource (HR) department and it’s another name is Administration department
which handle the all workers of the factory. Human Resource department’s duty is to
assign the jobs, hiring and right sizing of employees, Training and development and
compensation system. And these areas come under direct supervision of HR
department at ICL. Security and fire fighting, Gate supervision, Fair price shops,
Canteen supervision and Dispensary and health care. The Internal Audit department
whose work is to check and balance of every department. I learned mostly in this
department that how check and balance of finance department and check the vouchers
of purchasing goods after this order for the product.
Vision:
To be the first choice of preference by customers looking for premium quality chemical
products. They aspire to be a trend setter in our industry and always look to the future
with courage and a commitment to excellence in all their practices.
Mission:
They work for their customers to provide a trusted and reliable source of chemical
products. Hence, through constant innovation and research they pride their selves on
their unrealities drive to continuously add-value to their stakeholders, employees, and
customers. They strive for sustainable growth in harmony with their environment and
suppliers to foster a cordial and mutual relationship.
Core Values:
They have made a commitment to their customers to deliver the highest quality of
chemicals in their chosen segments of operation. They have purposed is to honor this
promise and continue to meet and exceed both their customer and stakeholder
expectations.
Culture (People):
The tremendous success of ICL has attracted high profile employees from near and far.
ICL is located at Kala Shah Kaku, District Sheikhupura. This area is reputed for growing
high quality high aroma extra long grain rice. The quality of its rice produced is second
to none and is acclaimed world-wide. The skilled / semi skilled workers mostly belong to
this area and its surrounding vicinity. The establishment of ICL way back in 1962
brought about a revolutionary change in the life style of the people of the area. By
nature, the people of the area are hard-working and pride themselves on their
commitment. Over the years, Kala Shah Kaku has developed into a hub of commercial,
We believe that quality input can only produce quality output. Accordingly, we develop
training programs that help polish our human intellectual capital. Our training programs
are based on in-house and on-the-job exposure. Accordingly, we constantly monitor the
performance and value-addition of our employees through an annual appraisal and
compensation system. This assures that our employees are motivated, committed, and
constantly updating themselves for the benefit of all parties involved.
Background:
Ittehad Chemicals Limited (ICL) was established in 1962 under the name of United
Chemicals by a private entrepreneur. ICL was commissioned in the year 1964 with an
installed capacity of 40 MT/day of Caustic Soda. The initial plant was set up by M/S
Oronzio Denora of Italy.
The factory is strategically located on the 19th/20th Kilometer of GT Road and spread
over an area of 106 acres. It is approachable from the Lahore-Islamabad Motorway as
well as from the main city of Lahore, being less than an hour drive. The place is known
as Kala Shah Kaku, an industrial site which has seen the growth of industries over the
past decades stretching up and beyond Gujranwala along the G.T Road. Apparently,
Kala Shah Kaku and its neighboring vicinities have both gained tremendous importance
and become a hub of commercial, economic and educational activities. As
industrialization flourished over the years, a large number of small townships also
mushroomed in and around the vicinity due to availability of livelihood to the local
residents at their doorsteps.
During the state enterprise period its production capacity was raised by another 90
tons/day during the year 1984-85. The factory was ultimately denationalized in 1995 by
the Privatization Commission Govt. of Pakistan. It was acquired by the Chemi Group of
Industries, a Karachi based dynamic entrepreneurial group. The new management
immediately undertook the task of refurbishing the factory, its infrastructure, and
updating its production line to improve efficiency and capacity.
Shortly after the takeover, the plant capacity was soon raised to over 200 tons/day. The
environmental friendly “Ion Exchange Membrane Plant” was added to the production
line in the year 2003 with a capacity of 163 tons/day. This was shortly enhanced to 240
tons/day with the addition of more IEM Electrolyzes. The new technology is not only
environment- friendly but also power-conscious. However, due to its subtle and urbane
nature, it requires an uninterrupted power supply for trouble-free operations.
Accordingly, the company established its own state-of-the-art Power Plant of 30 MW
capacity in the year 2005.
With a rich and illustrious history, ICL is the founding company in Pakistan for the Chlor-
alkali industry. It has paved the way for other organizations competing in the local
market. With a growing interest for ICL products in the international market, the
organization has made the necessary arrangements (and will continue to do so in the
future) to cater for the growing demand.
1. Production Department
2. Mechanical Department
3. Electrical Department
4. Instrument Department
5. Planning & Development Department
6. Quality Control & Ware House Department
7. Systems & Technical Department
8. Power Plant Department
9. Finance Department
10. Admin(HO) Department
11. Internal Audit Department
12. Marketing Department
13. Purchase Department
14. Personnel Department
15. Human Resource Department
16. And others Departments.
My internship departments:
My internship departments are Human Resource & Personnel Department and Internal
Audit Departments and some other departments are briefly explained.
Human resources are a relatively modern management term, coined in the 1960s. The
origins of the function arose in organizations that introduced 'welfare management'
practices and also in those that adopted the principles of 'scientific management'. From
these terms emerged a largely administrative management activity, coordinating a
range of worker related processes and becoming known, in time as the 'personnel
function'. Human resources progressively became the more usual name for this
function, in the first instance in the United States as well as multinational corporations,
reflecting the adoption of a more quantitative as well as strategic approach to workforce
management, demanded by corporate management and the greater competitiveness
for limited and highly skilled workers.
Human Resource Department is the most important and key department of every
organization. It not only deals with the employees of the organization but also help in
management of the affairs of the company. Ittehad chemical limited has a full fledge HR
Department known as HR or Administration department with the staff main managers
are two employees. The GM is the top executive in the HR department and there is one
manager of HR to facilitate the work of G.M. and personnel and admin officer. HR
Department’s activities are spread over the whole organization. The following areas
come under direct supervision of HR department at ICL.
Establishment Section
Time Office
Gate Office
Security system
Medical Office
Transport Office
Canteen/mess Department
Estate Office
Record Office
Personnel Department
Time Office:
The office where Appointment letters are receiving and all the record of attendance of
employees, there record the overtime which is granted to the employees. Due to time
Gate Office:
Gate Office record all gate inward and gate outward. Where goods when purchase from
any company and when these goods enter in the factory then check the goods and
entered in workplace. The gate office prepared gate inward and outward and send it to
finance department and then finance department send it to internal audit department
where they check it.
Security system:
Medical Office:
Medical department is created for the employees that whenever in factory incident
incurred they facilitate the employees. This welfare is granted by company
management.
Transport Office:
The transport facilities are given to all employees of the organization where they pit up
them from their homes to factory and then back to home at the time. The transport have
Canteen/mess Department:
The facility of mess is only given to the staff officers and internship students and
managers. This facility is given by almost every organization because without eating
something a person cannot leave.
Estate Office:
Estate office measures the estate of factory and estimate which place is good for any
work. In ICL a small estate office where they just tell the company value of the estate
and inform after every period.
Record Office:
In the record office records of every employee of the organization. In the record offices
most of companies use the computers. All employees’ daily attendance also record in
record office. in the record office they also record of leaves of employees. In ICL the
Fazal Abass is the officer of record office.
Personnel Department:
The Corporate Personnel Department is functioning under the overall control and
guidance of Director (P, A&W) with GM (Personnel) as Head of the Department. There
are five wings in Corporate Personnel Department which are under the charge of a
senior officer namely, Industrial Relations, Personnel Management, Recruitment,
Welfare and Executive Establishment. The G.M (Personnel) will oversee and coordinate
the functions in each wing.
In the personnel department give daily base jobs and all record of every employee.
EOBI is also prepared in personnel department as Under Section 22 of the Employees
Old-Age Benefits Act, 1976, age limit for men was fixed at 60 and 55 for women through
an amendment in the Act in 1986. In the case of miners, in 2002 it was reduced to 55
for those who had worked for at least 10 years in this occupation immediately preceding
their retirement. In most organizations, the retirement age for employees, especially
men, has been fixed at 60. Therefore, it appears logical that institutions like EOBI
should also start paying the pensions from this age. They make all record of EOBI.
• Analyses Operations
• Reviews Compliance
• Recommends Controls
Analyses Operations
Internal Audit reviews procedures and operations closely, confirming that they are being
followed correctly and that they support the company’s goals and objectives. After
examining processes and procedures, Internal Audit reports its findings and works
closely with auditees to provide accurate and pertinent recommendations that help the
company to adhere more closely to its objectives.
Reviews Compliance
Internal Audit supports Senior Management and the Audit Committee of the Board of
Governors by staying fully educated about the intricacies of, implementation strategies
for, and compliance with current regulations and legislation. Internal Audit is responsible
for explaining and detailing the impact that non-compliance would have on the
company, for informing Senior Management and the Audit Committee about signs of
major non-compliance, and for identifying areas that do not conform to policies and
guidelines.
Recommends Controls
Internal Audit evaluates the efficiency and effectiveness of current controls and
determines if those controls can truly mitigate the risks that can threaten the company.
Effective internal control is a built-in component to the management process and keeps
the company on course toward its objectives and mission. Internal control promotes
effective and efficient operations, reduces the risk of asset loss, and both heightens the
reliability of financial reporting and strengthens compliance with laws and regulations.
Assures Safeguards
Internal Audit reviews the means used by the company to protect its assets, and
assesses whether the appropriate safeguards are in place. If company assets are not
well protected, then Internal Audit must recommend how to address the issue identified.
Operational Audits:
Determines whether internal controls are adequate and working as intended, and
whether operating procedures are performed efficiently and cost-effectively.
Pre-audit post-audit
Check Check
Comparative statement:
Analysts like comparative statements because they show the effect business decisions
have on a company's bottom line. Analysts can identify trends and evaluate the
performance of managers, new lines of business and new products on one statement
instead of having to flip through individual financial statements from different periods of
time. When comparing different companies, a comparative statement can show how
businesses react to market conditions affecting an entire industry. Internal audit
department check the purchase orders to different companies for product and then
select one of them company which gives them low rate of price.
Purchase order:
After comparative statement the internal audit purchase orders to the selected
company. This order prepared on the new business software SAP (system analysis &
program development.
After purchase order the selected party delivers the goods and after receiving the goods
then they give invoice.
Invoice:
After receiving the goods they prepared invoice. The commercial invoice is a key
document in international trade. In addition to playing an essential role in the
commercial transaction, it has an important function as a source of information and
supporting document for administrative procedures in the importing and the exporting
countries.
Account payable:
After preparing the invoice the sale company written as an account payable. On the due
date they give them check or money.
Check or money:
Seller generated document that authorizes sale of the specified off-the-shelf item(s),
issued after receipt of a customer's purchase order. It usually implies that there will be
no additional labor or material cost incurred for the sale, except where it is used to
initiate a production process.
After the sale order the company checks the availability of inventory. That how many
inventory they have in hand.
Then they also check the customer credit limit. This is check and balance by internal
audit department.
After checking customer credit limit preparation of delivery of goods this is also check by
the internal audit department.
Invoice:
After receiving the goods they prepared invoice. The commercial invoice is a key
document in international trade. In addition to playing an essential role in the
commercial transaction, it has an important function as a source of information and
supporting document for administrative procedures in the importing and the exporting
countries.
Account receivable:
After preparing the invoice the purchase company written as an account receivable. On
the due date they give them check or money.
Check or money:
Post-audit:
In post-audit the internal audit sometimes check the final report which is prepared by
external audit. This report presented to the board of directors. On the behalf of this
report banks give loans easily.
Production Department:
Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes. The Production Manager is responsible for
making sure that raw materials are provided and made into finished goods effectively.
He or she must make sure that work is carried out smoothly, and must supervise
procedures for making work more efficient and more enjoyable.
The function of the production department is to produce our products on time, to the
required quality levels, at the defined product cost. Of major concern to the production
manager is monthly output. In both EEL and DUL production managers have monthly
targets which they are expected to strive to meet or exceed. Note that Production can
only meet its targets if Sales secure orders. Also production costs are dependent on the
price we pay for components and materials, etc. Securing sales is outside the direct
control of Production, but the relationship between Production & Sales is intense. If
sales are down, production targets cannot be met, on the other hand if Production fails
to meet its target output monthly income is down and customers are likely to complain
about late delivery. There is scope for friction between sales and production personnel.
Component and materials procurement is another factor that strongly influences
production, production targets and delivery. If components cannot be purchased at the
target price, profits are down. If components arrive late at our factory production targets
may not be met and customers may experience late delivery. Purchasing of
components and materials is carried out by the Purchasing section of Production. We
shall say more about Purchasing later in this unit. We may consider the relationship
between Production, Sales and Purchasing as some form of eternal triangle. The
relationship between R&D and Production is also very important: if R&D are late in
developing a new product the loss in income to our company may be severe. If this
occurs it may not be possible to meet production targets for extended periods. We shall
now consider the interaction between R&D and Production in more detail. Knowledge of
these interactions should assist our newly appointed managers.
The product quality plan is covered in the unit on Quality. Production provides R&D with
information about our manufacturing capability. For example what size of components
our surface mount machine can handle, what type of automated soldering capability we
have, what type of production test equipment we have.
Caustic Soda also known as Sodium Hydroxide forms a strong alkaline solution when
dissolved in water. ICL produces Caustic Soda in the form of flakes, solid, liquid (31%
and 50% concentration). In solid form, it is hygroscopic and as such readily absorbs
water from the air. Hence, it is stored in airtight containers.
The quality of the outputs is at risk if any of these three aspects is deficient in any way.
Purchase Department:
Purchasing refers to a business or organization attempting for acquiring goods or
services to accomplish the goals of the enterprise. Though there are several
organizations that attempt to set standards in the purchasing process, processes can
vary greatly between organizations. Typically the word “purchasing” is not used
interchangeably with the word “procurement”, since procurement typically includes
Expediting, Supplier Quality, and Traffic and Logistics (T&L) in addition to Purchasing.
When the receiving department is not involved, it's typically called a two-way check or
two-way purchase order. In this situation, the purchasing department issues the
purchase order receipt not required. When an invoice arrives against the order, the
accounts payable department will then go directly to the requestor of the purchase order
to verify that the goods or services were received. This is typically what is done for
goods and services that will bypass the receiving department. A few examples are
software delivered electronically, NRE work (non reoccurring engineering services),
consulting hours, etc...
Purchasing Cards:
Tactical purchasing:
This trend away from the daily procurement function (tactical purchasing) resulted in
several changes in the industry. The first was the reduction of personnel. Purchasing
departments were now smaller. There was no need for the army of clerks processing
orders for individual parts as in the past. Another change was the focus on negotiating
contracts and procurement of large capital equipment. Both of these functions permitted
purchasing departments to make the biggest financial contribution to the organization. A
new terms and job title emerged – Strategic sourcing and Sourcing Managers. These
professionals not only focused on the bidding process and negotiating with suppliers,
but the entire supply function. In these roles they were able to add value and maximize
Marketing Department:
Marketing involves a range of processes concerned with finding out what consumers
want, and then providing it for them. This involves four key elements, which are referred
to as the 4P's (the marketing mix). A useful starting point therefore is to carry out market
research to find out about customer requirements in relation to the 4Ps.
Market research:
There are two main types of market research:
Qualitative research involves working with smaller samples of consumers, often asking
them to discuss products and services while researchers take notes about what they
have to say. The marketing department will usually combine both forms of research.
The marketing department will seek to make sure that the company has a marketing
focus in everything that it does. It will work very closely with production to make sure
that new and existing product development is tied in closely with the needs and
expectations of customers.
Modern market focused organizations will seek to find out what their customers want.
For example, chemical’s organizations will want to find out about what sort of chemical’s
customers want to purchase and the standard of product they expect to get.
Finance Department:
Finance is the heart of a business. Its functioning efficiently directly affects the rise and
fall of a business. It is the source on which the entire edifice of a business rests. No
finance - no business. Source it from anywhere before conceiving any business idea, its
scale, its strategic budget, scope of expansion/ staying in the business. Finance
department must control accounting system effectively and keep proving essential
information to higher management about break even analysis, financial information over
a particular period, interpretation of the ' financial' to enable the non-finance
management team also follow it.
It is the finance department which advices the management what share of the profit
may be put in investment portfolio for acquisition, expansion, maintenance of the 'fixed
capital', repayment of interest on borrowed capital, dividend to be paid to share holders,
Bookkeeping
The finance department is responsible for keeping track of all sales and capital
spending at a business.
Update Managers
Managers need the most current information to make the best decisions for their
departments. The finance department has a duty to provide them with the most
accurate and timely information possible. This would include information such as
costs to produce a product.
Financing
The finance department plays an integral role in helping the business receive the
necessary financing it needs, how the money will be paid back and distributing
dividends to shareholders.
Functions:
1. Administration of Public Revenue.
Accounts Department:
The Accounts Department looks after the financial matters. Accounts department for
both power and appliances division have similar functions as below unction’s
This particular department has the responsibility to prepare and keep an upto date
record of following:
• Financial keep of daily, including the income statement and balance sheet.
• Book keeping of daily monetary transactions.
• Production maintenance reports
• Cost data on labor, materials and overheads.
• Remittances and loans
Financial deals with the banks, leasing companies, Moradabad companies, DFIs
and other government agencies through Finance Center. The finance department
maintains record of all its expenses through vouchers. Generally the following
types of vouchers are used for this purpose.
SWOT analysis:
SWOT analysis is a strategic planning method used to evaluate the strengths,
weakness, opportunities and threats involved in a project or business venture. It
involves the specifying the objectives of business ventures or projects and identifying
the internal and external factors that are favorable and unfavorable to achieving that
objective. This technique is credited to Albert Humphrey who led a convention at
Stanford University in the 1960s and 1670s using data from Fortune 500 companies.
STRENGTHS:
• Ittehad Chemicals has large numbers of competent workers that are working
under good conditions these are near about 4000 employees 40 of them are
permanent and others are at daily wages or contract basis.
• It has two chemical plants in Lahore one is manufacturing chemicals and second
is manufacturing products from these chemicals and it also uses the waste on
one plant in second as a raw material.
• It has a large product length as capered to its competitors in Pakistan as well as
in Asia.
• It uses modern technology to manufacture chemicals.
• It is the king of chemicals manufacturing industry.
• It also has its own carriage container to distribute the chemicals in all over the
Pakistan.
WEAKNESS:
• The company has a labor union that consists of many top level supervisors to
deal the problems of the workers in the company but this union is very harmful for
the company that many times it happens the union leader black mail the top
management with the power of workers as strike and etc...
• Company has its own energy source (power generation) but it is not enough for
the company to maintain its power in this period as there is lack of electricity in
Pakistan.
OPERTUNITIES:
• There are no big competitors of Ittehad Chemicals Limited in the market expect
Sitara Chemicals Pvt. Limited. But Sitara Chemicals does not have a large
THERATS:
• In this modern period Ittehad chemicals Limited also facing many problem from
the pressure groups.
• The most growing competitor of Ittehad Chemicals Limited is Sitra Chemicals
that is increasing its product line and length towards the ICL and SCPL
manufacturing the same product and selling them to their customers that are
diversifying from ICL to SCPL.
Conclusion:
It is a very informative and worth learning internship at the Ittehad Chemicals. What I
learnt in my institute, this industry gave me a chance to see its practical applications. I
have learnt a lot of things and this report is a slight expression of it.
Ittehad Chemical is a very vast industry having a large department assembly. I have
spent four weeks there, one week on one site. I have studied three departments of
industry Human Resource department, Personnel department and Internal Audit
department.
Glossary:
ICL: Ittehad Chemical Limited
References:
http://www.businessdictionary.com/definition/sales-order.html
http://scclmines.com/perssonel_home.asp
http://labspace.open.ac.uk/mod/resource/view.php?id=360986
en.wikipedia.org/wiki/Quality control
http://www.thetimes100.co.uk/theory/theory--aims-marketing-department--181.php
http://www.ehow.com/facts_5683333_role-finance-department-play-business_.html
http://www.fdsindh.gov.pk/site/cms.php?page=functions
en.wikipedia.org/wiki/Purchasing
http://www.scribd.com/doc/28072266/Ittehad-Chemicals-Limited-SWOT-Analysis
Depty manager of Personnel department: Mr. Malik Mohammad Ashraf and Officer
Fuzal Abass.
Trainee of Internal Audit department: Mr. Farooq anjum, Mr. Khazir and Mr. Jahangeer.