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Institute of Business Management PRODUCTION & OPERATION MANAGEMENT To: Dr. Irshad Khan By: Muhammad Misbah-ul-Haq Siddiqui 2010-3-11-10979

Operational Practices at DIPL

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Page 1: Operational Practices at DIPL

Institute of Business Management

PRODUCTION & OPERATION MANAGEMENT

To:

Dr. Irshad Khan

By:

Muhammad Misbah-ul-Haq Siddiqui

2010-3-11-10979

Fall 2010

MBA (IM)

Page 2: Operational Practices at DIPL

TABLE OF CONTENTS

Description Page No.

1. Introduction / History / Background 3

2. Corporate Structure 5

3. Operations

a. Services

i. Engineering 6

ii. Procurement 10

iii. Construction 11

iv. Plant Maintenance 15

v. EPC 21

b. QHSE 22

c. Project Management System 25

4. Analysis and Recommendations 28

5. References 29

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INTRODUCTION / BACKGROUND / HISTORY

Descon Integrated Projects (Pvt.) Ltd established in the year 2000 in Lahore, it derives strength from

its parent companies to perform design engineering services for projects in the Middle East, Central

Asia and Pakistan. Equipped with the latest software and PDS with a capacity of 600,000 man-hours

annually, Descon Integrated Projects (Pvt.) Ltd has its own dedicated communication infrastructure

for data exchange.

The scope of engineering work includes process design, basic

engineering, detailed engineering, piping design, civil / structural

design, mechanical design and electrical & instrumentation design. All

work is done in adherence to an established quality system inclusive

of interdisciplinary checks and document control. Descon Integrated

Projects (Pvt.) Ltd plays a critical role at the front-end of a project for smooth downstream activities

in implementation.

Over the last three decades Descon has evolved into a multi-faceted Engineering and Manufacturing

concern and has further spawned a group of ventures with a diverse activities portfolio: Project

Management, EPC, Engineering, Manufacturing, Construction, Maintenance, Software Development,

Mining, Chemicals and Trading. While the group companies operate independently under a

corporate structure, Descon Engineering remains the flagship company and provides the associated

identity to its affiliates.

The company is unique in its resource base with in-house capabilities for Design Engineering,

Manufacturing, Construction and Maintenance Services. These are applicable to a wide variety of

projects related to Industrial plants, Energy and Infrastructure development for which services are

provided selectively or on turnkey / EPC basis.

Project management expertise vested through sophisticated IT based systems is one of the key

elements in achieving successful culmination of projects. The company’s operations span Pakistan,

The UAE, Saudi Arabia, Qatar, Oman, Egypt and Afghanistan. Joint venture partners and technology

alliances include JGC Corporation - Japan, Enerflex Presson – Canada, and Eckrohr Kessel – Germany.

The roster of clients and end-users is replete with auspicious names such as Sabic, Aramco, Adnoc,

Borouge, Gasco, Qatar Petroleum and WAPDA, NHA,OGDCL at home.

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All establishments are system oriented with ISO and OHSAS certifications and ASME stamps. HSE

achievements are reflected in the statistics with over 350 million man-hours of work executed.

Considerable investment is made in human resources focusing on development of this vital asset.

Descon is project-oriented and client-driven. Quality and HSE are taken as "value-adders" and the

company culture encourages teamwork and innovation. With all these attributes and resources, the

company is well placed to compete and succeed in the local as well as international contracting

arena while being recognized as a quality service provider and manufacturer of capital equipment.

The synergy between various business areas fuels strategic growth by providing cost effective

solutions.

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CORPORATE STRUCTURE

(Key Personnel and Functions)

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PresidentKenji Kano

Exec. Vice PresidentHassan Nazir Uddin Ansari

CoordinatorQA / QC

Kh. Junaid Nasir

HeadEngg.DivisionImran Ashraf

HeadProject Division

Irfan Abid

HeadServices DivisionMian Asim Aziz

HeadFinance

Faisal N. Khan

HeadProject Mgmt

Mehmood A Khan

HeadCivil/StructureKhalid J Iqbal

HeadAdmin/Proc.

Syed Tahir Jan

HeadEngg. Mgmt

Ahsan Qayoom

HeadPiping

S.M. Wasim

HeadHRD

Fareha Javed

CoordinatorITS

Jawwad Zuberi

HeadProcess

Samina Wasim

HeadMechanicalSohail Afzal

HeadI & C

Faisal Zaheer

HeadElectrical

Zafar A Zaidi

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OPERATIONS

SERVICES

Engineering

Procurement

Construction

Plant Maintenance

EPC

Engineering:

Descon’s engineering know-how is vested in various business areas across the company. All

engineering facilities are equipped with the current software packages in IT-based

environments and specialize in niches relevant to the core activity of a Business Area.

To enable value-addition in the field of equipment supply, the Manufacturing Business Area in

Pakistan has its own design group for engineering process plant equipment and coded items

mainly in accordance with ASME codes.

The EPC Business Area is also evolving into an autonomous entity which has its own

engineering expertise for undertaking projects on a turnkey basis. These range from

‘Brownfield’ solutions for existing plants to ‘Greenfield’ facilities pertaining to process, utilities

and offsite areas.

The Infrastructure projects Business Area has developed its own in-house design group for

projects related to water reservoirs and irrigation channels.

Process Design

The process design group can execute a wide range of basic and detailed engineering

activities.

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Basic Engineering:

Process Simulation

Heat and Material Balances

Process Flow Diagrams (PFDs)

Piping and instrumentation Diagrams (P&lDs)

Utility and Effluent Summary

Hydraulic Calculations

Heat Exchangers Thermal Design and Rating

Equipment Sizing

Process Data Sheets

Cause and Effect Diagrams

Detailed Engineering:

P&lDs (AFD to AFC)

Utility Distribution Diagrams

Fire Protection Systems

Pressure Relieving. Flaring, and Depressurizing Calculations

Operations Manuals (compilation)

As-Built P&IDs

Piping Design

The piping design group specializes in the following:

Plot Plans

Conceptual Piping Studies and Layouts

Piping Plans

Isometrics

Project Specifications / Procedures

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Bill of Materials / Bill of Quantities

3D Modeling with PDS

Pipeline Design

Mechanical Design

The mechanical design group provides specifications, material selection, mechanical design,

detailed engineering, and shop fabrication drawings for:

Pressure Vessels

Heat Exchangers

Process Related Mechanical Equipment

Storage Tanks and Silos

LPG Road Tankers

Electrical and Instrumentation Design

Wide range of electrical and instrumentation (E&I) design services are provided.

Electrical Design

Area Classification Drawings

Single Line Drawings

Schematic and Wiring Diagrams

Specifications and Data Sheets Cable Layouts and Routing Diagrams

Communications Systems

Fire Alarm Systems

Heat Tracing Systems

Instrumentation Design

Instrumentation Specifications and Data Sheets

Logic / Loop Diagrams and Termination Drawings

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Hook-up and Installation Drawings

Control Room layout and Arrangement Drawings

Panel Specifications and Arrangement Drawings

DCS and ESD Specifications

Control Valve and Orifice Plate Sizing

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Civil Design

The civil design group specializes in the following:

Modeling using PDS

Steel and Concrete Structures

← Highways

← Industrial Facilities and Process Buildings

← Pipe Racks, Table Top Structures, and Elevated Structures

← Warehouses

← Bridges and Culverts

Equipment Foundations

← Pile Foundations

← Tank Foundations

← Compressor and Turbines (including dynamic analysis)

High Rise Buildings

Elevated and Underground Tanks

Underground Services for Plants

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Procurement:

The Procurement function is driven by the objective of procuring materials and equipment in

time from the best possible sources according to the specifications and requirements. We strive

to buy cost-effectively and ensure deliveries to meet project schedules without compromising

on quality.

The basic elements include:

A team of trained procurement experts who are constantly seeking best sources.

A comprehensive data bank of suppliers and vendors available online for internal users.

A central IT based expert system which integrates various stores, procurement and finance.

Pre-qualification of vendors and review evaluations on regular basis.

All import/export and customs clearance activities and guidance to customers for specific

shipments.

Documentation for opening LC’s and remittances.

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Construction:

Descon can undertake the entire construction scope of a project; civil/structural, mechanical,

electrical & instrumentation and control and pre-commissioning. Descon has effective IT based

project management systems wrapped around requisite human and equipment capital to deliver

projects as per contract requirements.

Civil Construction

Mechanical Erection

Electrical, Instrumentation and Automation

Civil Construction

We are adept at handling heavy civil works for industrial and infrastructure projects. This expertise

extends from earthworks to high-quality finishes. The civil team has a proven track record in

completing ‘fast track’ projects consisting of industrial plants and infrastructure development.

A complete range of expertise covers the following areas:

Earthworks

Site Preparation

Soil Improvement

Embankments & Bunds

Water Reservoir & Channels

Foundations

For Static Equipment

For Rotary Equipment

Rafts / Independent Foundations

Piling

Structures / Buildings

Steel Frame Structures

R.C.C Frame Structure

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R.C.C Shell Roofs

Masonry Structures

Services

Underground Network for Utilities

Drains / Channels

Culverts / Bridges

Reservoirs

Warehouses & Workshops

Steel Structures

Steel Roofing and Side Cladding

Large Span Sheds

Infrastructure

Dams

Motorways

Runways

Bridges

Water Supply Channel

Descon is equipped with heavy-duty civil construction equipment like graders, excavators, road

rollers, batch plants, concrete pumps, mixers etc. We are adept at mobilizing resources quickly, in

order to meet tight schedules and have earned a reputation of producing quality works well within

stringent time and budget constraints.

Mechanical Erection

Descon provides mechanical erection services for ‘grass-root’ projects as well as for expansion /

revamping of existing facilities comprising of erection of equipment (including heavy lifts), piping /

pipe racks, steel structures, tanks, painting , insulation, NDT and pre commissioning/commissioning.

Applicable to the plant areas of process, utilities and offsite are:

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Equipment Assembly and Creation

Piping Fabrication and Erection

Steel Structures and Fabrication Execution

Rigging / Heavy Lifting

Painting, Insulation and Refractory Works

Non-Destruction Testing

We continuously invest in upgrading and expanding our existing equipment resources to enhance

our control and productivity.

Electrical, Instrumentation and Automation Services

We provide services for erection, testing and commissioning of power, electrical & instrumentation

& control systems.

Electrical

These services include testing and commissioning of:

HV Power Transformers

HV Switchgear and Switchyard Equipment

HV Power and Transmission

Turbo Generators and Diesel Generating Sets

Power and Emergency Power Generators

Telecommunication Systems

Fire Alarm and Sprinkler Systems

Power Distribution Boards and Panels

Motor Control Centers

Grounding and Lightning Systems

External and Internal Lighting System

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Transmission Towers and Systems

Package Units (Refrigeration, Gas Generation, Water Demineralization etc.)

Motors of all kinds

Cables and Support Systems

Instrumentation and Automation

This area includes erection, testing and commissioning of control systems and field mounted

pneumatic systems for:

Electronic Instruments

Cathodic Protection Systems

Distributed Control Systems (DCS) including operator interface engineering work stations,

process control cabinets and input/output modules.

Dedicated front panel instruments such as indicators, recorders and controllers of

pneumatic, electronic and microprocessor type.

Programmable Logic Controllers (PLCs)

Auxiliary panel instruments including computing relays, trip amplifiers, pneumatic switches,

hi-low selectors, transducers, solenoid valves etc.

Field instruments, e.g. primary sensors, local indicators and controllers, transmitters and

control valves for measurement and control of process parameter.

Process analyzers for gases and liquids.

Design, configuration and supply of SCADA systems.

Instrument air supply network, process and pneumatic signals tubing and connections.

Interconnection wiring and cabling as well as supporting cable trays and conduits etc.

Special systems such as for boiler and demineralized water plant automation.

Descon has a group of highly trained and experienced engineers, especially for DCS, SCADA systems

and PLC installation. Over the years, it has built up excellent references in the power, oil & gas,

chemical/petrochemical, fertilizer, cement and food industries.

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Plant Maintenance:

Descon provides plant operation and maintenance services to operating plants. We have

established a professional competence in maintenance of process, power and other industrial

plants. The following services are available.

Complete Maintenance

Specific Maintenance

Maintenance Management System

Turnarounds

Warehouse Management

Commissioning and Startup

Debottlenecking

Complete Maintenance Services

Plant maintenance covers the following areas of activities:

Site Management

Coordination and Reporting

Accounting / Material Control

Organization Structure and Roles

Staff Administration

Job Evaluation and Resource Allocation

Work Schedules

Quality Control Dossiers

HSE Plan

Cost Control Procedures / Checks

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Field Execution

Field activities are directly supervised by the project managers. They provide all the necessary

directions to their respective area engineers and supervisors. Routine as well as periodic inspection,

preventive maintenance and checks are executed by skilled technicians.

Planning and Scheduling

The following preparations are made for routine maintenance:

Equipment Documentation

Lubrication Schedules

Routine Maintenance Schedules

Safety Procedures

Coordination Procedures

The following procedures are specified for preventive / predictive maintenance

Equipment Maintenance / History Cards

Inspection Schedules

Preventive Maintenance Schedules

Predictive Maintenance Schedules

Specific Maintenance Services

For specific maintenance requirements of clients we provide specialized services such as,

overhauling of rotating equipment, refurbishing of static equipment and piping system, insulation,

painting, maintenance of furnaces, catalyst replacement, electrical equipment overhauling,

instruments overhauling etc.

Plant Operations

Descon provides hands-on expertise for operating sophisticated process plants like fertilizer

complexes, refineries and petrochemical, petrochemicals, water treatment and power plants.

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This covers

Preparation of operating budgets, production forecasts, goals and objectives.

Developing operating aids such as manuals, log sheets, check lists etc., to assist operation

personnel.

Developing plans for fire fighting and maintenance of fire fighting equipment.

Implementing production control methods such as record keeping of production, raw

material consumption and utility usage.

Monitoring equipment performance.

Carrying out energy / material balance studies to improve utilities consumption and energy

usage.

Carrying out revamping and debottlenecking studies.

Quality control by implementing specific procedures.

Incorporating HSE in all activities.

Maintenance Management System.

Maintenance Management System

An effective maintenance management system is essential to achieve quality in maintenance and

eliminate inefficiencies. Descon can develop a customized system for its clients. Depending upon

client's requirements the system can vary from an elaborate maintenance manual to a computerized

maintenance management system.

Regardless of level of complexity chosen, essential elements pertaining to the following

maintenance aspects are covered in:

Maintenance Work Request Procedures

Manpower Scheduling Procedures

Procedures for control of tools and maintenance equipment

Procedures for inventory control of spare parts

Inspection Procedures

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Quality Control Procedures

Work Status Reporting System

Cost Control and Reporting Procedures

Procedures for Recording Equipment History

Planning, Scheduling and Tracking Procedures

Loss Prevention Procedures

Training Procedures

Turnarounds

Descon has competent and experienced personnel staff for turnaround maintenance services related

to:

Steam / Gas Turbines

Centrifugal / Reciprocating Compressors

Diesel Engines

Heat Exchangers

Pressure Vessels

Piping Systems

Furnaces including Refractory and Insulation Repair

Columns and Towers

Pre-fabrication of Piping Spools & Tie-ins

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Electrical and Instrumentation

Catalyst Dumping, Sieving and Loading

Total Turnaround Responsibility

Such an arrangement requires the company personnel to be involved right at the planning stage and

the involvement continues throughout the various phases of preparatory activities. These activities

include listing of complete job scope, breakdown into steps and estimation of all requirements of

manpower, tools, equipment, spares etc to execute the job directly.

Turnaround Execution

Under this arrangement Descon only estimates manpower requirement on the basis of the scope of

work developed by the client and subsequently ensures execution by providing appropriate

maintenance team and other support facilities. Responsibility of complete turnaround planning,

procurement of spares, tools and equipment, rests on the client.

Warehouse Management

Descon provides services for effective warehouse operations and inventory control so that:

Inventory is maintained at an optimum level consistent with operating needs.

Materials received are of correct quality, quantity and specifications.

Scrap and surplus stocks are properly identified and disposed.

Existing stock is physically checked against Kardex quantities on a regular basis

The computerized systems generally follow considerations, such as:

Analysis of operating / maintenance system to determine the overall requirements of

materials, spares, tools etc.

Establishment of stock levels and economic order quantities (EOQ) keeping in view the lead

time based on geographic locations of the source of supply and plant consumption pattern.

Preparation of standard codes (numeric / alpha numeric) for the items being stocked.

Preparation of documents/formats to be used in the system.

Establishment of document flow procedures.

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Preparation of spare parts interchangeability report.

Commissioning and Startup

Successful commissioning and start-up leads to a stable plant operation. We can provide qualified

personnel capable of meeting the critical requirement of plant commissioning and start-up.

Some are listed below are some of the areas where services are:

Preparation of testing and commissioning procedures in consultation with the client/vendor.

Preparation of punch lists of exceptions, errors etc., for corrective action by construction

team. Follow-up on punch-list items to ensure completion.

Mechanical testing and inspection of piping and equipment in accordance with the drawings

and specifications.

Loop checks for process instrumentation and controls.

Carrying out supervisory and inspection responsibilities during pre-commissioning, start-up

and performance tests.

Checking initial interlocks for proper alarms response and set at their correct trip points.

Conducting plant test runs to demonstrate the ability of plant to meet guarantee

parameters.

Reviewing plant manuals, supplied by vendors and incorporation of important points into

Standard Operating Procedures (SOP).

Review of vendor recommended spares and development of inventory levels to suit local

conditions and government regulations.

Implementing safety and loss prevention program for which the line organization has full

accountability.

Debottlenecking Services

With vast experience in construction and maintenance, we can also render services for

debottlenecking of process plants. These services include locating problem areas, suggesting process

and other improvements, designing and implementing the measures suggested. Refurbishment of

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complete plant can also be carried out to meet the client's requirements and objectives. To enable

the client to estimate the amount of work required and its cost, a Front End Design Manual" (FEDM)

is prepared to precisely define the activities required and their schedules.

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EPC:

Descon’s capability to provide turnkey/ EPC services has evolved over the years by combining our

knowledge and experience in specialized fields. Our organization structure especially lends itself to

offering highly competitive EPC solutions for medium sized projects in the energy and infrastructure

sectors.

Engineering

Basic and detailed engineering is performed by JGC-Descon Engineering Limited, a state-of- art

design facility equipped with world-class engineering applications, including PDS. An extensive

communication network is in place for data transmittal, document control, and project management

to ensure smooth interaction between all stakeholders.

Procurement

An experienced group of specialists provides procurement and expediting services for plant

equipment and bulk materials. Our multiple operating bases in the Gulf region allow us to facilitate

fast-track procurement through an established network of suppliers.

Construction

Complete general contracting services integrating civil, mechanical, electrical and instrumentation

disciplines, are core strength. Over the years, we have invested in acquiring a large asset base of

construction equipment.

Manufacturing

A wide range of process equipment is manufactured at ISO and ASME certified facilities in Pakistan,

Saudi Arabia and the UAE. These facilities offer inherent strategic value due to their cost effective

production and proximity to projects in the Middle East.

Commissioning

Expertise in developing procedures and systems for providing plant commissioning services and

operator training is available for this critical phase of an EPC project.

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QHSE

QHSE at Descon:

Quality, Health, Safety and Environment (QHSE) at DESCON

We understand the value of human life and sustainable development for healthy growth of a

community. Descon’s QHSE program ensures these goals by exercising zero tolerance for errors in

the implementation of best Industrial QHSE practices. These are supplemented with incentives,

training, process control, and deployment of most effective time tested quality Improvement tools.

Our strategy is built around plan, do, check and act (PDCA) and is reflected in our systems

appreciating following key elements:

Provision of a framework for the setting of QHSE Goals and performance objectives.

Monitoring, evaluating and continually improving upon our QHSE performance through

operational standards, training, assessments and audits.

Making customers, contractors, and business partners familiar with our QHSE system and

creating awareness on how their actions can influence QHSE performance.

Making QHSE a part of all product development projects.

Making ourselves, aware of the global industrial initiatives and collecting feedback from our

stakeholders for taking improvement initiatives.

All of our operations submit to certified integrated management systems, which include ISO

9001, EN ISO 14001, and OHSAS 18001 and are run in accordance with national safety

Council guidelines.

Corporate Social Responsibility

Vision

Descon is committed to realization of its corporate social responsibility, through social investment

and to play a leading role within our spheres of influence. We will work inexorably in achieving

world-class standards of openness, transparency towards all our stakeholders and serve the

communities we operate in.

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Our vision is to become the most competitive and dynamic knowledge-based corporation in the

world, capable of sustainable economic growth and greater social cohesion.

CSR Strategy

We shall be an innovative, entrepreneurial and empowered team constantly creating value and

attaining global benchmarks. We shall foster a culture of caring, trust and continuous learning while

meeting expectations of employees, stakeholders and society.

We are committed to work with all our stakeholders, building and maintaining relationships of

mutual respect and trust. We aim to contribute to improving the quality of life of our workforce,

their families and the communities around our operations.

Descon Group’s business activities are based on relationships with many stakeholders, including

customers, shareholders and other investors, business partners, the community at large and

employees. Descon believes that earning the trust of these stakeholders through fulfillment of its

responsibilities as a good corporate citizen is a key element in enhancing management quality and

corporate value.

Operating globally, we touch upon many people. We would set CSR Objectives in the annual plans to

take a leadership position in this regard. We believe in transparency and giving access to the

information to people about the life cycle of our products and services.

The core issues in our CSR strategy are:

Compliance to our core and operating value

Sustainable Business

Environment

Corporate Governance

Community philanthropy

Contribution to educational programs

Promoting multicultural workforce

Gender Empowerment

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Protecting Human Rights

Honesty and integrity in our policies.

CSR Framework

Corporate strategies require commitment from the top and investment in the necessary processes.

We want to see a healthy world and safe world and we are trying to achieve this goal by using HSE

best practices at our premises, and thus place a paramount importance to the safety of our

employees.

The annual objectives for CSR focus on six key areas – business integrity, environment, people,

community, human rights and suppliers – which are integrated into Descon’s core values and are

fundamental to the way we do business.

To promote globalization and maintain a high standard of work, at present people from 20 countries

are strengthening the business of Descon. We have a commitment to contribute to the economic,

environmental and social sustainability of communities through the on-going engagement of

stakeholders, the active participation of communities impacted by company activities and the public

reporting of company policies and performance in the economic, environmental and social arenas.

We would encourage the development of stakeholders’ dialogue, by convening a shared broad-

based stakeholder platform to shape the development of a flexible CSR framework addressing,

employment and social affairs, enterprise, environment, trade and education. These steps would

add value and build on the impetus of existing efforts, including some already being pursued.

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PROJECT MANAGEMENT SYSTEM

The complex nature of projects today needs effective management systems to ensure completion of

projects safely on time and within the budget. A professional approach relying on IT based systems

in which the company’s cumulative knowledge-base is vested, ensures the well-being of the project

from estimation stage up to completion on ground. Descon has invested significantly in developing a

system in the form of software modules which are able to ‘talk’ to each other and together form an

integrated project management system. Our project managers are seasoned professionals who

recognize the challenges and dynamics associated with complex projects and have proven

capabilities in executing fast-track projects.

Concept of Project Management System Transformation of management processes to achieve flexibility and responsiveness by

effective deployment of IT solutions

To have a conducive environment to fully utilize IT power

To develop ability to anticipate and react to the changing business needs, to remain on

schedule and within the budgeted costs

To facilitate end-point decision-making as well as effective monitoring at required levels

To ensure that plans are revised instantaneously and actions are taken on time.

To assimilate the company’s business knowledge so that a generalist should be able to

perform as an expert.

Data validation and control functions are performed within the System while information is

processed.

Decision-making process of a human expert is emulated.

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HUMAN RESOURCE

Descon is renowned for a diverse offer of trainings and development measures. We provide state of

the art facilities to conduct internal & external trainings. These trainings cover development of fresh

graduates, project managers, department heads, technical staff and potential leaders. Some of the

offered trainings are:

1. Graduate Engineer Training Program (GETP)

2. Project Engineer Leadership Program (PELP)

3. Project Management Training

4. Supply Chain Management for Commercial Managers

5. Proposal & Estimation

6. Contracts Management

7. HSE for Line Managers

8. Finance for Non-finance Managers

9. HR for Line Managers

10. Project Planning & Scheduling

Our Culture & Environment

Our human resource has a diversity of skills, background, viewpoints and experiences from around

the world. We have over thirty five different nationalities working in our bench strength. We hire

only the best, based on merit, skills, abilities and desire to excel regardless of race, color, religion,

gender, national origin and any ethnic background. We encourage our employees to maintain their

work life balance. We give them the opportunities to spend quality time with their families by

maintaining a stress free working schedule. We strongly believe that giving maximum ease to our

employees shapes up our corporate culture.

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Compensation

Descon makes comprehensive and competitive remuneration plans. The pay package is reviewed

annually by the management to ensure it is aligned with market standards and escalating economic

factors across the globe. Descon fosters a performance oriented appraisal system that allows

employees to earn higher levels of compensation and rewards to value employee contributions.

Career Advancement

Descon values its high potential employees through Management Evaluation Scheme (MES) that is

executed on regular basis. With the help of this comprehensive process, career ladders of employees

are developed and succession planning is done to identify future leaders. In addition to this, fresh

graduates are developed as a potential resource by planned rotations and mentorship. This includes

exposure to project sites based upon guidance from project gurus and working on integrated

systems and procedures.

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ANALYSIS AND RECOMMENDATIONS

Human Resource department is not managing the human resources as per requirement. Trainings are not planning well means some trainings which is of no use are being held. Rather trainings must be the part of succession planning which will be useful in future projects.

During the operation of EPC projects there is a communication gap experienced most of the time. Engineering, Procurement and Construction are very close link operation in any project and communication is critical in such type of projects that’s why it needs to be improved by upgrading technology or by any other means.

Performance appraisal system is quite disputed and developing de-motivation elements among employees. Performance appraisal system should be clear and fair.

There is always a dispute between engineering and construction department on technical matters. Management should make an environment to synchronize these two departments.

In any EPC project in which multi disciplines are involved, problems are occurred in understanding between civil and project department. All of the members of project department are other than civil engineers and don’t know the problems of civil like Civil Structure drawings always develop after Architecture drawings but Project Management Team insist to develop Structure drawing first to show progress and quality suffers. So Project Management Team should comprise of all discipline engineers.

Procurement department is not functioning accurately as per engineering department. Experience people should be hire to fill the gap.

Many license of software have been expired or having license of old software. MIS department can’t take decision to buy license with consent of management. Management should take decision to buy license of new software and renew license of existing software.

Other operations are seems to be fine. Decision should be divided to department level. Empowerment of employees is required in this company.

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REFERENCES

Miss Tabina Siddiqui (HR Department)

Mr. Farjad Arshad (MIS Department)

http://www.descon.com.pk

Institute of Business Management 32