INTERNSHIP REPORT

Pakistan Ordinance Factories

Submitted to:

Principal POFIT

Submitted by:

Name: Waqar Ahmed

Registration No. OOPRI2365

Mailing Address: House No. B-292

Gulistan Colony POFs, Wah Cantt.

Contact No: 0322-8517712

Discipline: MBA (Marketing)

1

PREFACE

We are the students of MBA Marketing and our institutes have assigned us to do internship for the period of 6

to 8 weeks to enhance our practical skills in the running business environment of any organization. The objective

of this internship program is to expose our self into the practical atmosphere where we can observe, analyze

and even practice the application of the professional knowledge that we have acquired during the course of our

studies.

I was selected to do my internship in nation POF. I worked there for 8 weeks & it gave me a greater

practical knowledge about business. In the following pages I have narrated my experience, observation & all the

working activities which I observed.

2

ACKNOWLEDGEMENT

Actually this report is made possible with the help of many people. Some of who have done as much

work as they could do and all of whom have brought their own brand of expertise to the task, so I have many

people to than.

I would like to thank all my teacher and all others who supported me. My greatest acknowledgement is

for “Pakistan ordinance Factories” management who help me in the completion of project. Finally my most

acknowledgements goes to my instructors who gave me his precious time. Due to his continuous supervision

and cooperation I am succeeded in completing my project, which will prove a asset in broadening my attitude

and experience for my future.

I am grateful for the support and contributions of the above people who have enable me gain the

experience and determination needed to compile this project.

God Bless them All.

3

DURING MY INTERNSHIP PERIOD I HAVE DIFFERENT DEPARTMENTS OF POF THAT ARE:

Sr.No. Department Duration

1 Export Deptt. 05-01-2010 to 16-01-2010

2 MIS Deptt. 18-01-2010 to 23-01-2010

3 WIL Deptt. 25-01-2010 to 06-02-2010

4 P&S Deptt. 08-02-2010 to 13-02-2010

5 Finance Deptt. 15-02-2010 to 20-02-2010

6 Admin Deptt. 22-02-2010 to 24-02-2010

7 HR Deptt. 25-02-2010 to 27-02-2010

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TABLE OF CONTENTSIntroduction 6

Mission & vision statement 7

Objective of studying the organization 8

Overview of the organization 9

Brief history of the organization 9

Number of employees 9

Product lines. 10

POF SERVICES 10

Organizational structure 12

Main factories 12

Subsidiaries 13

Structure and functions of the marketing and sale department 14

Organization chart of marketing and sale department 14

Marketing Operations 15

Administration Department: 30

Sub departments of administration department: 30

Functions of central welfare: 30

Human Resource Department: 32

Short-fall/weakness 34

Conclusion36

Suggestions & recommendation 36

Reference & sources 36

5

Introduction

P.O.F came in to being in December 1951 and has recently completed its 53 years of existence.

Since P.O.F had to start from scratch, this half-century has been an arduous but rewarding journey

which enables Pakistan to move dependence to independence and from reliance to self reliance in

production of defense war withal. P.O.F had set high standards in industrial engineering. Its scope of

production encompasses state of the art defense engineering process, explosive propellants and

powder metallurgy. All fourteen industries of P.O.F are ISO 9001 certified while subsidiaries like Wah

Nobel Group of Companies are ISO 9002, ISO 14001 and ISO 18000 certified by internationally reputed

firms like moody International setup in UK.

Awarded ISO 9001 certificates to all the Fourteen Industries of P.O.F after inter-acting for nearly

a year.

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WEAPONS

ARTY

AMMO

EXPLOSIV

ES

FILLING

SAA & B.M

TA

GADWAL

SANJWAL

NAVELIAN

MG

CIVIL

WORKS

MIS

PURCHASE

& STORES

SERVICES

CLOTHING

SUBSIDIARIES

R&D

EXPORTS

QA

SECURITY

HOSPITAL

CMA (POF)

SAFETY

ADMIN

HRM

CORPORAT

E

MINISTERIAL

COORDINATION

Mission & vision statement

“Quality at every Level”

They want to give their customers premium sets of initiative products.

The main mission of the Company is:

Manufacturing and sale of qualitative ammunition and Commercial Explosives.

To utilize spare capacity of POFs by marketing its qualitative civil production items

Disposal of:

Obsolete/Surplus plants, Machinery & stores.

Ferrous and non-Ferrous scraps

Economical utilization of Company’s funds in profitable ventures

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Objective of studying the organization

The objectives of POF board have clearly been laid down in POF board ordnance 1961. According to

which POF board is responsible to manage and administer the affaires to factories and to run them on

sound commercial line so as to adequately meet during a peace the needs of defense of the country

and to utilize the surplus capacity of factories to meet the needs of civilian population.

POF was established as expanded as a sprawling complex of fourteen mainstream industries and six

commercial subsidiaries. These are:

Weapon Factory

Machine Gun Factory

Small Arm Ammo Factory

Medium Artillery Ammo Factory

Heavy Artillery Ammo Factory

Tank & Anti Tank Ammo Factory

Explosive Factory

Filling Factory

Propellants Factory

Tungsten Alloy Factory

Tungsten Carbide Factory

Steel Foundry

Brass Mills

Garments Factory

Subsidiaries are:

Wah Nobel

Wah Industries

Hi Tech Plastics

Attock Chemicals

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Overview of the organization

Brief history of the organization

During their colonial rule, the British built sixteen ordnance factories in India, which at the time

of the partition in 1947 all fell to Indian control. Pakistan's first Prime Minister, Liaquat Ali Khan, issued

a directive within four months of the creation of Pakistan to establish an ordnance factory in

collaboration with British Royal Ordnance Factory to manufacture 0.303 calibre rifles and their

ammunition in Rawalpindi. In December 1951 Pakistan's second Prime Minister, Khawaja Nazimuddin,

took part in the opening ceremony of the first four POF workshops in the small town of Wah

Cantonment.

Number of employees

Over 40,000

Product lines.9

P.O.F is producing approximately 70 major products, which it supplies to Pakistan Army, Pakistan Navy,

and Pakistan Air Force.

The main products are

Automatic rifle

Light medium and heavy machine ammunitions.

Tank ammunition and anti-tank ammunition.

Bombs

Grenades

Anti tank mines

Pyrotechnics

Commercial Product:

POF specialize in the manufacture of wide range of copper, copper, alloys, brasses, gilding metal and

offer a large variety of brass items in the form of rods, wires, sheets, strips, Hexagonal & special

sections. Rods, bars & wire round Hexagonal, square rod, Tubes, round Square, rectangular tubes,

Strips, Foils, Sheets, GMCS strip with 10% coating on either side

POF SERVICES

Laboratory Testing

Highly qualified engineers and scientists look after this testing facility. We ensure high standard of

quality demanded in any material testing laboratories and possess state of the art technology to meet

all your material testing requirements. We have the ability to conduct following tests.

Mechanical Testing: we conduct tensile, compression, impacts, bend, and cupping and hardness tests

for metallic materials. Available tensile testing machines range from 0.5 Ton to 100 Tons capacity. All

standard loads are available in hardness for Vickers, Brinell, Rockwell and Shore.

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Non-destructive Testing: We have instrumentation to measure internal and surface flaws in castings,

forgings, welded joints and finished parts. Radiography, Ultrasonic Testing, Eddy Current method,

Magnetic Crack Tetection and Fluorescent Dye Penetration are some of the available Non-destructive

Testing Techniques.

Physical Testing: We determine the density, viscosity, ash content and distillation range for various

chemicals and substances, which include petroleum products, paints, asbestos, soap, paper and

cardboard.

Metallographic Analysis: We have facility to analyze the micro and macro structure of metallic

materials to determine structural details.

Chemical Analysis: We have the facilities to determine chemical composition of metals / alloys,

refractory and other materials through conventional Wet Analysis, as well as instrumental techniques

such as Photometry, Spectrograph, and Spectrometry.

Polymer Testing: Polymer Lab established in this group has facilities to carry out tests like hardness,

tensile strength, impact value, softening point, melt flow index, and moisture content in polymer

materials.

Refractory Materials: Refractory materials tests for sand, clays, firebricks etc. include sieve analysis,

green strength, compatibility, permeability, and water absorption and bulk density.

Other Services

These services comprise of:

Manufacturing and repair of thermo-couples.

Repair and calibration of Thermo-electric Pyrometers.

Calibration of Force Testing equipment (UTS machines)

Calibration of Hardness Testing Machines.

Production of Copper Crushers for proofing of ammunitions.

Production of Phosphate solutions.

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Production of combustion boats for carbon / sulphur determination

Explosives Laboratories

These analytical laboratories are the heart of POF explosive manufacturing technologies as these are

the most essential elements of ensuring top class quality of all of our intermediate and finished

chemical and explosive products Our laboratory human resource comprise of highly qualified

engineers, scientists and analysts. In addition to the conventional apparatuses and instruments, the

laboratory is equipped with high-pressure liquid Chromatograph, UV Spectrometer, Flame Photometer,

Sub-sieve Particle size and many other modern testing equipment. In addition to the conventional

explosive testing, we have all the essential resources to conduct following tests and analysis:-

Organizational structure

Main factories

Weapon Factory

Machine Gun Factory

Small Arms Ammunition Factory

Medium Artillery Ammunition Factory

Heavy Artillery Ammunition Factory

Tank and Anti Tank Ammunition Factory

Explosive Factory

Filling Factory

Propellants Factory

Tungsten Alloy Factory

Tungsten Carbide Factory

Steel Foundry

Brass Mills

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Garments Factory

Subsidiaries

Wah Industries Ltd

Shotgun Ammunition Factory

Packaging Factory

Hi-Tech Plastics

Wah Nobel (Pvt) Ltd

Wah Nobel Chemicals

Wah Nobel Acetates

Wah Nobel Acetates

Wah Nobel Detonators

Review of the various department of the organization

During my internship period I have different departments of POF that are:

Sr.No. Department Duration

1 Export Deptt. 05-01-2010 to 16-01-2010

2 MIS Deptt. 18-01-2010 to 23-01-2010

3 WIL Deptt. 25-01-2010 to 06-02-2010

4 P&S Deptt. 08-02-2010 to 13-02-2010

5 Finance Deptt. 15-02-2010 to 20-02-2010

6 Admin Deptt. 22-02-2010 to 24-02-2010

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7 HR Deptt. 25-02-2010 to 27-02-2010

Structure and functions of the marketing and sale department

Organization chart of marketing and sale department

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Naeer Ud Din(PA)

Abdul Latif(Drafty)

Naeer Ud Din(PA)

Abdul Latif(Drafty)

Usman Ali Bhatti

( Dir Export )

Nadeem Ahmad Manger Admin

Marketing & Pre – Contract

M. Mateen (PA)

Zulfiqar Ahmad (NQ)Muhammad Afzal

( GM Export )

Salman Haider( AM-1 Pre-Conract)

M. Zahid C’Man

Nighat Umer(A.M-II Pre-Cont)

Syed Ahmad JamalMgr Exports

(Post Contract) Naeer Ud Din(PA)

Abdul Latif(Drafty)

Tasneem Khan (E.O)Zubair Khan (U.D.C)Muntaizar Abbas (U.D.C)

Shakeel Khan (U.D.C)Jamil Shah (N/Q)

Waseem Ahmad (UDC)

Zulfiqar Ahmad (TO.Exhib)M. Naseer Khan (Asstt)Khalid Jamil (N/Q)

Mrs Sumia Nadeem (AM-II)Bashir Khan (AM-I)Zahid Pervaiz (TO)Mureed Abbass (EO)Ghulam Bari (A-I/C)Haider Riaz (Asstt)M.Asad Ali Hashmi (UDC)Noor Muhammad (Drafty)

Naeer Ud Din(PA)Abdul

Latif(Drafty)

Marketing Operations

The export function started in POF for the first time in 1972-73 when Arms and Ammunition (A&A)

factory started exporting arms to OMAN and other friendly countries.

Functions of export sections:

To arrange exports of POF Products.

To have correspondence with DPD, Ministry of Defense.

To correspond with Pakistan embassies in foreign countries for export promotion.

To arrange supply of samples free of cost to prospective client after obtaining approval of POF

board.

To submit quarterly report to Ministry through FACF in respected of foreign exchange earrings

and its utilization.

To obtain information of price quoted by other manufactures for similar stores as exported by

POFs.

To initiate proposal and obtain Govt. approval for visits of POF delegation for exports

promotion to friendly countries.

To prepare up-to-date broachers for export items.

To obtain clearance of Ministry of Defense for inviting important dignitaries in connection with

sales of POF products.

PRE – CONTRACT SECTION:

This section of export department is responsible right from enquiry of any export order by a

client to its final confirmation. The procedure related to customers process and functioning of this

sections is given below;

PROCEDURE FOR CUSTOMER RELATED PROCESSES:

Purpose & Scope:

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Te scope of this division and procedure is the execution of orders placed on POF by foreign clients to

their satisfaction. The procedure is only for export purpose.

Responsibilities:

Director export and G.M exports are responsible to control all activities of this procedure.

Procedure:

The requirement is received trough mail, telefax, e-mail or by other means are scrutinize by

Director export and G.M Export for specification required quantity on demand, country to whom the

store to be supplied and the delivery mode indicated by the client.

The delivery schedule of store is obtained by Director Export and G.M Export from

MPC/concerned head of the factories. Price approval (to be quoted) is obtained from Chairman POF

Board.

A regret message is sent by Director Export/G.M Export. If the items demanded are not within

the range of production manufacturing by POF.

In case the product specification do not exactly meet the POF specification, then a comparison

sheet is prepared by manager Export-I. with the help of concerned production manager of factory and

is sent to the customer for comment/acceptance, if so desired a sample of POF produced store supply

inspected by Q.C of that factory, is also sent for acceptance to the client.

A formal quotations is prepared Director Export and G.M Export as per format desired but the

client and then quotation register is prepared and forward it to the schedule, payment terms and other

condition of supply.

Recipient confirmed the order “Contract review form” is prepared by manager Export-I and

then forwarded to concerned production factories under the signature of Director and G.M Export

along with extract work order for under taking production.

Extract work order placed on production factory is recorded by Manager Export in extract

register the relevant information of order received is also recoded in the order register for the future

reference.

Then the production factory arranges for inspection testing & proofing as per relevant agreed .

Proofing of schedule the inspection testing & Proofing is carried out under the supervision of quality

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assurance directorate. Director quality assurance may nominate his rep. to witness proofing. Results

are compiled by quality assurance directorate and quality assurance certificate is issued by the

department.

The consignment is dispatched to client by air/ sea by manager export-2 through store

department / office Karachi.

During the course of contract, if some changes are required to be done regarding order within

POF or by client it is mutually settled down by visit to each other premises and conveyed to manager

export and director export.

Separate order file comprising all correspondence including amendment is prepared for each

order.

To increase export earnings and market of POF's product there is a need to nominate agent

abroad. The criteria is as under;

Requests received for appointment abroad, This request is then sent to

concerned DA of that country for checking credentials and recommendations,

On the Receipt of recommendation the case is prepared and sent to

Chairman' POF Board for approval.

After getting chairman POF Board approval draft agreement is forwarded

To firm for their vetting.

On receipt of draft agency agreement (fear) agency agreement is prepared and

forwarded to the firms under thy signature of Director export.

POF is only mediator so it does not outsource any part of the product. However, when it is

needed at any time appropriate procedure will be added to the system,

RELATED DOCUMENTS:

1. Contract review form

2. Comparison sheet

3. Quotation

4. Quotation register

POST-CONTRACT SECTION:

This section is responsible for performing following activities;

Contract L/C

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issuance of Export permit

PSI

Dispatching of Consignment

Dealing with freight issues and insurance matters,

ADMIN FINANCE (EXPORTS)

This department is responsible for facilitation of all sections of Exports including Pre-contract,

post-contract and marketing department.

Functions of Admin department:

Agents commission approval

Stevedoring.

General purchase

Payment of courier charges, transport expenses, insurance charges and also the payment of

trucking bills.

Receipts of payments.

MRO payment of commission.

Bank commission

Performance guarantee

Payment of Freight forward charges.

Maintenance of attendance register of export department’s staff.

Financial concurrence from FA department.

Any type of export payment is made by Admin.

Office purchase and gifts purchase for the foreign delegations is made by Admin.

Miscellaneous financial matters including payment to vendors.

MARKETING DEPARTMENT

Functions of Marketing department:

The main functions of marketing department are;

Arranging exhibitions inside and outside the country for products of POF including;

.Bridex in Brunei

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.Desi in London

Ideas in Karachi

Promotion is done through mass communication, advertising, Events and customer relations.

While briefing to international delegations presentations are given by this department about

arms and weapons of POF.

Arrangement of joint ventures are also done through this department.

MARKETING STRATEGY:

As POF is dealing in dangerous goods so the marketing strategy used is Focused approach.

Focused Approach:

Focused approach is used in target countries through personal visits and presentations. The target

countries includes, Sri lanka, Saudi Arabia, Bangladesh, Bosnia, Turkey, Ukraine, Kenya, Lebanon,

Jamaica.

E-MARKETING:

The marketing department through interactive e-mail and websites contacts with its customers.

AGGRESSIVE MARKETING:

Aggressive marketing is done trough international exhibitions and trade visits.

MEDIA CAMPAIGN: Aggressive media campaign is regularized through international journals through

print and electronic media coverage. The following are the journal's used for media campaign;

Military technology

Janes defense weekly & Janes defense journal

Defense Publications

Show dailies in all expos

Asian military review

Regional defense journal

National events

MARKET EXPANSION:

The market expansion is done by adding new countries into focus including; Lebanon, Malta, West

indies, Spain, Belgium, Cote d' vorie, Jordan, Haiti, Kenya, Vietnam, Nepal, Uraguay.

COMPETITORS:

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The main competitors of POF are Iran, Greece, Serbia, Romania, Yugosalavia, Turkey and China.

And POF is competing with these countries on the basis of Price, Quality, availability and delivery of

weapons.

INTERNATIONAL PRESENCE:

The International presence of POF is made by regular exhibitions in IDEX in Abu Dhabi, DSA,

Malaysia. IDEAS, Karachi. Eurosatory, France. IDEF, Turkey and DSEI, UK. And new expos and visits

includes Shot show in USA, Africa aerospace& defense in South Africa, Bridex 2009 in Brunei and trade

visits in Defense and security in Thailand.

EXIHIBITION FOCUS:

The exhibition's focus is on;

Showcasing of products and brand promotion.

Making new customers and generation of new inquiries.

Consolidating existing relationships and settlement of disputes.

Identifying new products for joint ventures.

Exposure to officers.

Due to, effect of marketing strategy the Export volume has been increased with increase market share

in international market.

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STRUCTURE AND FUNCTION OF THE MIS DEPARTMENT

MIS department in POF Wah Cantt manages and updates a huge range of information

electronically.

MIS controls and manages different areas which are:

Software development

Networking

Hardware

Website

Database Administration (DBA)

Hardware

Two types of network media is being used here:

Fiber Optic

DSL

Software being used:

Oracle is being used as database management system. It is being used on large scale. There is a

huge database which is covering all the information of employees and factories under POF.

Developer is being used for programming and making graphical user interface (GUI).

However the payroll system uses COBOL, which is then converted to oracle in MIS.

Software Development Approaches:

There are two approaches of software development:

First approach is step wise approach in which each step of software development

process is performed by a different team. Each team is responsible of performing a

particular step for each module.

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Second approach is module wise approach in which a project is divided into different

modules and each module is assigned to a different team. All the steps e.g. analysis,

implementation, testing of that module are accomplished by that team.

MIS Dept Is Using Second Approach i-e Module Wise Approach.

Areas covered by different modules are:

Personnel

Inventory

Web

Database Administration

Hardware

Networking

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WAH INDUSTRIES LIMITED

Pofs provide different commercial product according to need of different organizations of

Pakistan by name of wah industries limited (WIL).

Introduction:

Wah Industries Limited (WIL) is a public limited company incorporated under the companies’

ordinance, 1984. Established in 1958.WIL is engaged in the production of 12 Bore Shaheen

Cartridges and marketing of a wide variety of engineering products and chemicals, produced by

POF according to international standards and quality, at competitive rates. It’s PRIDE PRODUCT

of excellent quality and is popular with Pakistani hunters is the well known 12-Bore ammunition

marketed under the brand name “SHAHEEN” cartridges. The high quality of new varieties

“SHAHEEN SUPER” and “SHAHEEN EXCEL” in shot No.4, 6 & 8 have also been marketed. They are

also the sole agents for selling Civil Products manufactured by Pakistan Ordnance Factories.

They are manufacturing/supplying the following wide variety of products/services according to

buyer’s requirements:

12-Bore SHAHEEN Cartridges in Shot No. 4,5,6,7,8,9,BB,AAA,SG and LG with 31 gm game load.

12-Bore trap/skeet cartridges in Shot No. 7 & 9 with 24 gm competition load.

12-Bore Shaheen Super and Shaheen Excel (Extra Long Length) cartridges in shot No.4,6

& 8 with 16mm long head ,imported primer and 36 gm game load.

Mild Steel, medium carbon Steel & Aluminium Ingots.

Iron/Steel Castings and forgings.

Carbide Tips, Tools, Gauges, Moulds, Dies and other Tool Room facilities.

Brass/Copper Sheets, Strips, Rods, Pipes, Wires and Profile Shapes in any required size &

quantity.

Copper Pipes for Refrigeration, Air Conditioning and Sugar Industry.

Chilled Iron Shots/grit (Round/Crushed).

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Industrial Chemicals & Explosives i.e. Nitric Acid, Acetone & Nitrocellulose,

Nitroglycerine, etc.

Pakistan National Flags.

Testing/Analysis of ferrous & non-ferrous materials, refractory materials, paints,

lubricating oils and greases.

Repairs and calibration of pyrometers and hardness testing machines.

Apart from the above, absolete/surplus stores and scrap (Brass, Aluminium, Steel, and Wood

etc.) generated as by-products in Pakistan Ordnance Factories, are also disposed off by WIL

through open public tenders/auctions.

Objective

The prime objective of the Establishment of Wah Industries Ltd is to utilize the surplus

production capacity of POF to meet the civil sector requirements. This procedure is introduced

to regulate the sale of civil production items.

Authority

WIL has been appointed sole selling agent of POF’s products in accordance with agreement on

5th March, 1962 between POF and WIL. WIL is a commercial enterprise of POF and is

incorporated under companies Ordinance 1984,Registered as a public company and functions

with in the preview of the memorandum and articles of Association and Companies Ordinance

to achieve its objectives.

The marketing Environment:

The matching process of company’s capability and customer wants takes place in what we can

call the marketing environment. The most obvious ingredient of the marketing environment is

our competitors who play vital role. WIL has wide range of Products i.e industrial, commercial ,

Arms and Ammo that’s why we use different modes to monitor our competitors indicated as

below:

Marketing research24

Questionnaire survey

Public data base

Telephone research

Face to face research

External data sources

Wah Industries Limited use different Channels of distribution to address target customer’s

need.

1. WIL Customers(Direct)

2. WIL Post Office Customer(mail order)

3. WIL Agents Customers.

WIL core competencies as compared to other business sectors

Pricing

Packing

Features

After sale service

Delivery

Quality improvement

PROCUREMENT & STORE DEPARTMENT

The purpose and scope of purchase department is to arrange procurement for common use

items, for store i-e plant & machinery, material and tools etc. Which are available or can be

developed indigenously from trade by central purchase department (CPM). The Procurement

and Store Department has the following wings to proceeds the systematic working of the

department:

1. Purchase I

2. Purchase II

3. Purchase III

Other wings to supplement the working of P & S of departments are as under:

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Firms Registration Cell

Cash Purchase Cell

Budget Cell

Store Verification Cell

PURCHASE- I

Purchase-I deals with the purchase of common use items of the all factories, as for the specific

material all factories have their own purchase department at their disposal. P-I only handled

with common use item of the all factories.

Purchase-I usually deals with the purchase of goods like:

Cement, Computer, Steel tools, Batteries, Spare parts of cars Furniture, Carpet, Glass, Bells,

Firefighting equipment and Ball bearing etc.

PURCHASE -II

Purchase -II usually handled the purchase process of the chemical and necessary production

processing materials. Purchase-II covers the following objects:

Lubricants, Oil, Petrol, Desial, Coarsen oil, Furnace oil, Chemical, Gasses, Paints, Safety

equipment, Electrical items and Pipes.

PURCHASE -III

This department usually handled the purchase procedure of foreign purchase. Thing comes

under this department is technology based machinery, plant that usually not available in the

local market and if available price of that plant is too much high that is why purchase is being

made by the foreign companies .the procedure is usually very simple not involve too much

paper work.

FIRM REGISTRATION CELL

For the quality assurance the department has its separate cell dealing with the registration of

the firms apply for the taking contracts or for taking tender it is necessary as department does

not publicly advertised these tenders as firms themselves apply for the tender as per quotation

are demanded.

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MAIN FINANCE DEPARTMENT:

Finance section commonly known as main cash office is one of the section functioning under

deputy director personnel management in director administration department.

Its major role relates with cash management because it acts as pay master for public fund, It

also maintains non public fund accounts through main cash office but here also basic role is the

same like as release of payment on receipt of approval from competent financial authority

(CFA).audit teams of CMA carryout periodically audit of public fund accounts of main cash

office, however for non-public fund accounts ,maintained by the main cash office, independent

quarterly audit is arranged by engaging an Asstt.manager of cash office other than that of

director administration department of CMA. Accounting department is separate to finance

department. POF work for the welfare of employees so its working is different from private and

public sector and it is non profit organization.

Director Admin department control the budget of the following centralized groups but has no

administrative control over the expenditure incurred by the centralized groups.

1. Chairman POF board

2. Member production coordination

3. Production coordination

4. Director and member POF board

5. Central purchase and stores

6. Secretary POF board

7. Planning and budget

8. Public relations department

9. Director civil works

10. Quality assurance

11. Inspection department

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12. OFLS Karachi

13. TLO Lahore

14.MIS

15. 699 FIU

Functions:

Main cash office performs the following three functions:

1 Paymaster for public fund

2 Maintenance of non-public fund

3 Maintenance of financial discipline

As clarified in the beginning, the primary and major role of main cash office is as pay master for

public fund. Thus as paymaster it arranges following payment in respect of employees of

director adman department centralized groups ,salary of staff/officers, wages of workmen,

TA/DA ,overtime ,night shift refreshment ,final payment ,TPT &miscellaneous grant. On receipt

of payment instruction in the form of cheque slip the amount is released on proper

documentation.

Maintenance of non public accounts

So far Maintenance of non public accounts is concerned, main cash office acts as custodian of

following non public accounts:

1. Chairman POF board special fund

2. POF special fund

3. Central welfare fund

4. Group welfare fund

5. Central sports fund

6. Al-behbood shopping plaza fund.

Non-public funds are non auditable and are maintained on the pattern of regimental funds.

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Maintenance of financial discipline:

On the ‘financial discipline’ side, main cash office is responsible for arranging: Quarterly audit of

non-public funds (group welfare fund &group sports fund) of all the factories/groups. The

objective of reviewing the financial transactions and control of public resources is to safeguard

the interest of organization. Main finance conduct audit of non public fund and audit of public

fund conduct by CMA .the audit reports of all the factories, along with observations

/recommendations of the audit teams are submitted by main cash office, in a consolidated

form, to chairman POF board for information .thereafter, the instruction of the chairman are

communicated to the concerned heads of department for rectification etc.

Budget department:

One of the most difficult tasks facing today’s manager is planning for the future in a world

where in business conditions take place continuously. Major currencies rise and fall, prices of

raw material suddenly rise and sources of supply become unpredictable .the best way to

prepare for changing business conditions is to devise a framework that contains a specific plan.

But is sufficiently flexible to allow adaptation to unforeseen changes .this is precisely what a

well designed budgetary system does.

Budgeting performs two vital management functions:

1 It formulates a comprehensive future plan of action

2 It compares actual results with the predetermined plan

Thus planning and control, two primary functions of management, are also essential features of

budgeting process.

POFs is an industrial organization under the federal govt. its budget is prepared on the basis of

production programmed for a particular year. All the primary controlling authorities as detailed

below are associated and the budget is prepared with their participation:

1 POF gadwal

2 POF sanjwal

3 POF havellian

4 Explosives factory

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5 S.A.A factory

6 R & D

7 Brass mill

8 Filling factory

9 Machine gun factory etc

Administration Department:

Mr. Walayat khan the Establishment officer attended me in administration department.

He told us about the functions of administration department is to coordinate all departments.

The duties of administration department are as follows:

Disposal of all matter / demand of POF association

Fee concession

WEC (3 seats in each department)

Family medical card

Consumable item (soap, towel)

Declaration of assets

Audit check reply

Umrah package

Sub departments of administration department:

These are the further sub departments of administration department

Central welfare department

OF-I/A-II Section

Publication section

Admin General

Functions of central welfare:

Main functions of main welfare department can be summarized as under:-

1. Arrangement of all official functions.

2. Formulation of policies regarding welfare of POF employees.30

3. Proceeding of applications received regarding financial assistance from POF

employees and non-POF as well.

4. Arrangements in connection with transportation of School College going

sons/daughters/wives of POF employees to various educational institutions of

Rawalpindi, Islamabad, Hassanabdal etc.

5. Arrangements of honorarium and connection with blood donation (Rs. 400/-), re-

imbursement of cost of spectacles (Rs. 350/-)

6. Supervision of C-04 canteen.

7. Admission of children of POF employees in various schools at Wah and Rawalpindi.

8. Supervision of reaction center in 10 area and 19 area signalmen barracks.

9. Issue of Urdu khabarnama regarding policies of POF.

10. Arrangement regarding payment of death grant Rs. 50,000/-

11. Arrangements of sending two employees in hajj in POF expense every year.

12.Management of official masques i.e. Central Jamia Mosque, 27-area mosque and

ordnance house.

13.Matters of mosque in estate area like extension etc.

14. Provision of transport to Christian/other employees on religious function.

15. Arrangements in connection with Moharram.

16. Arrangements for deposit of Sui gas bills.

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Human Resource Department:

Here by human resource department is on duty to recruit new and most eligible persons for the

perfect job. The processes by which management ensures that it has the right personnel, who

are capable of completing those tasks that help the organization, reach its objectives. Another

par of the current assessment is the job analysis.

Human resource planning can be condensed into three steps.

1. Assessing current human resources.

2. Assessing future human resource needs.

3. Developing a program to meet future.

HRP PROCESS

Major steps in the Human resource planning process are to ascertain:-

1. Goals and plans of organization

2. Current human resources situation

3. Human resource forecast

4. Implementation programs

5. Audit and adjustment

FORECASTING HR REQUIREMENTS

Forecasting of HR requirements, at POF is made on the following parameters:-

Staffing Level

Number of employees needed to meet the strategic plans of the POF.

Staffing Mix

There are following categories of working staff in POF as mentioned below:-

Executives

Officers

Clerical staff

Non-clerical staff

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Organization and Job Design

Proposed projects for launching as per the future requirements.

3. Action Plans

Staffing authorizations

The Regional office is authorized to hire employees by

outsourced company’s e.g. Security guards, Janitorial services,

Sales & Marketing staff.

Recruitment

All the new recruitments on permanent basis is made according to the laid down procedure

and policies at Head Office Level. So, all the major decisions are taken by the Senior

Executive management of the bank regarding recruitment of permanent staff.

However, recommendations / suggestions are taken by the Head Office from Regional

Offices time to time.

Promotion & Transfer

Normally after every 03 years Promotion / Move-over is given to the employees on the basis of

their ACRs (Annual Confidential Reports), performance reports, recommendations, seniority

and so on.

Organizational changes

As per the requirement of the bank, organizational changes are also taken whenever bank

management feels the changes necessary for the bank.

Training & Development

Training & Development is necessary to equip the employees with new technologies. It’s also

helpful for career growth and development. Employees learn and develop new skills, or areas

of development in new Techniques and latest information, so that, after the necessary training

on specific fields, better & accurate functions and operations may be executed in the bank.

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Recruitment Planning

Recruitment begins with a clear specification of

1. The number of people needed through HR Forecast

2. When they are needed

Compensation & Benefits

Compensation and benefits are given to employees.

Labor Relations

The information for job analysis is better for both management and unions for resolving

disputes.

Short-fall/weakness

Strengths:

1. POF always followed its customer’s needs and thus providing quality services to

its customers.

2. POF has built its strong association with many local and foreign organizations.

3. POF has well established performance evaluation process of employees to

enhance their performance level.

4. Motivational programs are held to make employee`s more productive.

5. Security system of POF is excellent, because of highly sensitive area.

Weakness:

1. Employees are not so much productive to encounter new challenge.

2. There is so much manual work (paper work) instead of computerized work.

3. POF has no Accounts department to handle accounting matters.

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Opportunities:

1. Research and Development projects have been undertaken to minimize the

dependence of foreign suppliers.

2. The Factories in POF employee some of the latest state of the are processes,

including computerized numerical controlled machines and flexible

manufacturing systems.

3. Auditing process must be strong in order to make the employees more beneficial

for POF.

Threats:

1. Chinese goods have a negative impact on POFs production due to cheapness. It

is challenge for POF to reduce the cost of production.

2. Departments are centralized but there is no centralized database, this may

reduce the productivity and time consuming as well.

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Conclusion

No doubt the POF is organization but the working substances are the human beings. It

goes with out saying that Human resources are the most important in the organization and so

does the Human Resource Department. It integrates all the activities and functions of the bank

like job analysis, recruitment, staffing, training, designing compensation package and

employees appraisal system.

Human Resource Department plays the key role in the hiring, retention, motivation and

promotion of the employees. Actually it assigns the specified duties to the specified persons in

this age of specialization.

Human Resource manager should be well versed and confident in his field. He should be

humane, well natured and have go face reading capabilities. All this ensures his success. He

should be of the notion “victory is not the everything but the way of fighting is”.

Suggestions & recommendation

As for as strategy planning is concurred POFs management is doing very good job. How ever there is a

need of a strategy to change the corporate culture which can lead POFs to make an organization of

international level.

Reference & sources

www.pof.gov.pk

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