PRODUCTIVITY THROUGH BPR

(BUSINESS PROCESS RE-ENGINEERING)

PROJECT OVERVIEW

About project Exploring various segments of ENGRO ltd

Goal of project The productivity management improvisation through Process re-engineering and to evaluate the way through which ENGRO is implementing productivity techniques in its various segments

Scope of the projectIdentifying the problems in work flows & designs and recommendingsolutions

INTRODUCTION OF ENGRO

ENGRO stands for “energy for growth”

Company believes in continuous growth, new

challenges and fulfilled promises

(From fertilizers to dairy products, business solutions to PVC resin, power

generation to commodity trade)

ENGRO objective is to become the premier Pakistani

enterprise with a global reach

BUSINESSES OF ENGRO

ENGRO EXIMP PRIVATE LIMITED

ENGRO FERTILIZERS LIMITED

ENGRO FOODS LIMITED

ENGRO POWERGEN LIMITED

ENGRO POLYMER & CHEMICALS LIMITED

ENGRO EXIMP PRIVATE LIMITED

is a wholly owned subsidiary of ENGRO Corporation Limited. The Company trades in commodity fertilizers such as

•DAP

•MAP

•MOP

•SOP

•Micro-nutrients (Zinc Sulphate)

ENGRO FERTILIZERS LIMITED

is a premier fertilizer manufacturing and marketing company with products that focus on balanced crop nutrition and increased yield. The company markets primary and secondary fertilizers like:

•ENGRO Urea

•ENGRO DAP

•ENGRO Zorawar

ENGRO FOODS LIMITED

Using dairy as a stepping stone to enter into the food business, the

Company has established state-of-the-art processing units in Sukkur and

Sahiwal.

Top quality brands like

•Olper’s

•Tarang

•Omore

ENGRO POLYMER & CHEMICALS LIMITED

Pakistan’s leading manufacturer and marketer of PVC (polyvinyl chloride)

resin. The Company markets its products under the brand name of SABZ

ENGRO POWERGEN LIMITED

Fully owned subsidiary, to develop power projects in Pakistan so as to help

reduce the power shortage in the country and earn a competitive return for

shareholders.

BPR (BUSINESS PROCESS RE-

ENGINEERING)

•Radical change within a short period

•Complete revamp of organizational structure

business process workflow,

job description,

performance measurement

adoption of information technology.

CHARACTERISTICS OF BPR:

•View business as a set of customer (both internal and external) oriented processes rather than a set of departmental functions

•Processes must have clear cut ownership

•Non value adding activities within a process should be eliminated

•Gather information only once at the point of origin.

BPR

Focuses on the Design

Operation

Control

optimization of chemical

Physical and biological processes

Through the aid of systematic computer based methods

INCREASE PRODUCTIVITY THROUGH

EMPLOYEES

BPR role in Human Resource

Healthy lifestyle program

Health Club sessions

Training & Motivation

BPR ROLE IN ENGRO GROWTH

Cost Cut Down (Human Resource)

◦ Asad Umar (CEO, Engro Corp.) incorporated a

strategy of low cast hiring

Hiring GTEs (Graduate Trainee Engineers)

They cost less and give high output

Easily convinced to work in field areas like Daharki, Sindh

BPR ROLE IN ENGRO GROWTH

Materials◦ Plant manufactured for Descon Chemicals in 120

days

◦ Multiple Piling Machines

◦ Zero Inventory

◦ Just In-Time (JIT) Inventory [Kanban, work-cells]

◦ Backward Integration

BPR ROLE IN ENGRO GROWTH

FinanceUsing ABC (Activity – Based Costing)

Use of Computerized Accounting Systems

ENGRO (HPO)

Measures and demonstrate

•Improved operational performance (e.g., effectiveness and

efficiency)

• Cost and manpower savings (e.g., economy)

• Improved competency levels

ENGRO (HPO)

Measures and demonstrate

• Operates as a Most Sustainable Organization (achieves

goals through planned improvement and evaluation of its

business management)

IMPLEMENTATION OF PRODUCTIVITY

TECHNIQUES AT ENGRO

TRAINING

Company provide training to every employee whether he is

new or old, the basic goal of providing Training is to push the

company up.

•Training is provided by us to every new employee” said by

an official at ENGRO

IMPLEMENTATION OF PRODUCTIVITY

TECHNIQUES AT ENGRO

FLEX TIME

Company provides the opportunity for workers to choose flex working

hours

•Several worker groups at ENGRO increased their productivity

by 16% when they availed the flex time technique.

COMPRESSED WORKING HOURS

This technique is basically to make a reservoir of energy in

leaders because if decision makers cannot take care of

themselves, how can they create climates that provide care

for others.

ENGRO provide two options:

•Work 4 days a week

•Work 5 days a week

FINANCIAL INCENTIVES (individual)

Recently ENGRO chemicals awarded financial incentives to

worker of worth Rs. 60 million.

The workers are awarded by different incentives (Bonus,

commissions and other financial appraisal allowances)

Basic purpose is the enhancement of worker’s performance

JOB ENRICHMENTTo explicit the monotony of work, job enrichment technique is being used for last 7years

Continuously focusing on it because at certain level of time in production department it’ll increase productivity of workers which eventually increase the productivity of a company

FRINGE BENEFITS

Company provides workers with fringe benefits which is a non-wage compensation that is usually given to those who provide notable work contributions to our company. These benefits are:

•Retirement benefit plans

•Group health insurance

•Life insurance coverage

•Legal assistance plans

•Transportation benefits

•Child care benefits

JOB ENLARGEMENT

Job Enlargement is the horizontal expansion of a job as it involves

the addition of tasks at the same level of skill and responsibility.

ENGRO has done this to keep workers away from getting bored and

primarily this technique is different from the enrichment

“When I was on holidays, company expands the responsibility of

quality supervisor to quality inspector” said by Mr. Ali Burhan, Quality

inspector at ENGRO.

JOB ROTATIONThe company may benefit from using job rotation by having the ability

to staff key positions within a company.

ENGRO uses it to alleviate the physical and mental stresses endured

by employees when working the same position, year after year.

COMMUNICATION

ENGRO values each employee, their inputs and their views.

In ENGRO high quality programs are organized in creative and informal

way that provides an opportunity to employees to express their views for

the company’s future.

MANAGEMENT BY OBJETCIVESDefining objectives within an organization so that management

and employees agree to the objectives and understand what they

need to do in the organization

Allowing employees to participate in the setting of objectives

Encouraging everyone to work towards accomplishment of

general organizational objectives

QUALITY CIRCLESThe quality circles are designed to make participants aware of the critically important features of the company

Objectives

potential benefits

support structure

training

WORKER PARTICIPATIONENGRO always encourages close relationship and participation ofemployees

A committee named compensation organization and executivedevelopment committee (COED) which is responsible forencouragement of employee’s participation within the organization.

ZERO DEFECT

For the ongoing success of ENGRO, the persistent commitment and

zero defect strategy for the continuous improvement in quality is the

most important factor.” quality is all, we do” is the motto of ENGRO.

According to ENGRO:

All defects are same, as all defects are bad.

If we get rid of defects, we will get rid of testing and reworking.

TIME MANAGEMENTENGRO is committed to encourage positive environment in theircorporation

Workers are advised to manage time by following tips:

Splitting given task into discrete steps.

Reviewing progress towards goal constantly.

Prioritizing- focusing on urgent and important tasks first.

Organizing your work schedule.

List making to remind what needed to be done.

RECOGNITION

COED defines the criteria for the recognition of worker’s input

and efforts for the company.

The reward system in ENGRO is strictly performance driven

COED rate individuals according to their performance and

skills and then they are given benefits accordingly.

QUALITY OF SUPERVISION

ENGRO believes in “doing the right things, right the first time”

In ENGRO, The quality standards are met in accordance with

the ISO-9000 and all the practices are governed in accordance

with its set practices.

ACCOUNTABILITY

ENGRO takes care of this issue with an iron hand; there are

proper rules and regulation regarding the misconduct in the

organization starting from positive reinforcement, negative

reinforcements to expelling from the organization with a

negative non recommendation letter.

EMPLOYEE PROMOTIONIn ENGRO there is a proper committee named as reward organization and

COED which is responsible for promoting the employees through the system of

voting that on the other hand shows the level of involvement of individual

employee in the organization’s decisions

INNOVATIONENGRO makes sure of an environment that provides path towards the creative

thinking and make possible for its people to accept challenges

SKILL ENHANCEMENTENGRO strongly believes that the skill enhancement is needed at all levels of management and operation of a company

In ENGRO skill coaching and training is given to the employees in order to motivate them and to bring a positive attitude in them towards their job. Training sessions are workshops are arranged to increase the working abilities of the employees

HARMONIZATIONENGRO is using this practical tool in order to increase the total productivity

of its company.

The workers at ENGRO consider their company as extensions of their

families; they have a tremendous sense of loyalty to the company ENGRO.

LEARNING CURVEENGRO immensely focuses on the training of new comers and invest a lot

during their period of learning curve

Mr. Tahir Javaid general manager of HRM said: “ENGRO hire employees

considering them as soft assets in the company and takes the responsibility

of transforming them into highly capable hard assets in the future, as the

employees learn more and more, their performance upsurges over the time”

MEASURES OF PERFORMANCE

During recent years Engro Fertilizers have been accredited with

the following international awards:

OSHA compliance in Health & Safety by attaining level 3 in

DuPont benchmarking scale

ISO 9001 Quality Management

ISO 140001 Environmental Management

OHSAS 18001 Safety Management

SA-8000 Certified Company

WHY WE FOCUS ON EMPLOYEE

BASED PRODUCTIVITY

TECHNIQUES

We focus on employee based productivity techniques because

it can reduce the problems arise in Labor efficiencies

Low efficiency of labor:

Migratory character

Most of the factory workers in our country are drawn from rural

areas. As soon as they earn from a company and when they’ve

enough savings, they leave the job. To minimize this effect we’ve

discussed several techniques

Secondly, we follow the Industrial Labor Policy, 1959

point (c), “suitable measure should be adopted for providing

social amenities to workers of all categories, in the field of

health, education, recreation, housing, wages and other

needs”.

ANALYSIS ON BEING UNPRODUCTIVE

(other companies)

WHY LIMITED SUPPLY and HIGH COST OF POWER:

Sources of power such as electricity, hydel and thermal, coal, gas and oil are the resources of the country which have not tapped as yet.

Whatever power capacity is available is not sufficient to cover the need of growing industrial sector.

Production costs increases

LACK OF PLANNING & CO-OPERATION:

The other industrial units in their plant layout lack in proper planning.

There does exist no co-ordination among the different wings of which the units are composed of, this causes the wastage of time, material and finance

ANALYSIS ON BEING UNPRODUCTIVE

(other companies)

WHY LACK OF TECHNICAL KNOW-HOW:

There is a dearth of technical personnel in the country

There is a scarcity of skilled personnel due to which raw hands are

employed in the industrial units

LACK OF INDUSTRIAL RESEARCH:

Lack of industrial research is responsible for high production cost,

IDR discovers new techniques of production

Due to lack of IDR, improvements in production technique has not

been made possible

SUGGESTIONS

Follow the Government technical centre's like PITAC and

PCSIR for the arrangement of technical training for industrialists

and employees employed at different industries.

Objectives of Pakistan Industrial Technical Assistance Centre

(PITAC) and Pakistan Council of Scientific & Industrial

Research (PCSIR)are as:

Promotion of productive consciousness

Training & upgrading of skill of industrial personnel

THANK

YOU!!