CHAPTER 1
INTRODUCTION
1
1
INTRODUCTION
Arabian Industries LLC, is a leading 100% Omani owned Contracting Company with active
participation in Oman’s Hydrocarbon, Petrochemical and Energy Sector industries since 1990. The Company posted a growth of approximately 330% during the period from 1990 to 2006 and is currently rated one of the leading EPC Contractors in the Region. 2
I underwent an organizational study at Arabian Industries LLC to a cquaint myself with the business environment for a period of two weeks during the period of Nov. and Dec. 2009, as a part of the MBA curriculum at the Mahatma Gandhi University, Kottayam, Kerala. This study was conducted to unders understan tand d the struct structure ure,, functi function on and proces processes ses of variou variouss depart departmen ments ts and their their interinterdependence. During the course of study I was able to successfully interact with the employees of the organization and they were happy to give me all possible information regarding the company. They also took me to the plants and worksites where I got the first hand information about the organizational processes and its functions. The method methodolo ology gy consis consists ts of data data collec collectio tion n throug through h interv interview iew,, observ observati ation on and compan company y perio periodic dicals als review review.. The data data collec collected ted from from differ different ent source sourcess are class classifi ified, ed, analyz analyzed ed and interpreted. Based on which an organizational structure, its functions and various departments are identified. The various departmental functions are clearly identified and their processes & activities carried out are recorded. An in-depth analysis is made me to understand the departmental process based on which a process chart c hart is prepared. The analysis further formed the basis for identifying the departmental interdependence. 2
OBJECTIVE OF THE STUDY
The organizational study was carried out at Arabian Industries LLC to achieve the following specific objectives:a.
To un underst rstand th the or organizat zational fr framew mework & it’s functioning.
b.
To gain knowledge about different departments of the organization and the
functions. c.
To study about the procedures of purchase and sales.
d.
To st study th the in interdependence of of di different de departments.
2
e.
To make a SWOT analysis of the organization f. To understand understand the difference between between theoretical & practical aspects of of functioning organization
3
METHODOLOGY
This study is descriptive in nature. This is also a grouping, which includes many particular research methodologies and procedures, such as observations, surveys, self-reports, and tests. 3.1
Data collection a.
Primary data
Primary data have been collected through observation, personal interview and discussion with managers and employees of the various department of the organization. b.
Secondary data.
Secondary data have been collected from company’s internal records, Publications, Annual report, Journal, statutory report etc. 4
SCOPE OF THE STUDY
The study is being conducted for Arabian Industries LLC, Sultanate of Oman. And this study tells us an overal overalll view view of organi organizat zation ion and functi functions ons carrie carried d out by diffe differen rentt depart departmen ments ts like like Manufacturing, Maintenance, Marketing, Human Resource, Sales, and Finance etc.. 5
AREA OF STUDY:
The study study was undert undertake aken n at Arabia Arabian n Indus Industri tries es LLC and the respon responden dents ts were were the Financ Financee Manager, Department heads and employees from different departments like finance, maintenance, fabrication, manufacturing, and marketing etc.
6
DATABASE
The research efforts employ both primary and secondary research techniques to ensure that the foundation of business intelligence and insight is accurate, current, and reliable. To conduct this study, both Primary and secondary data have been used. 7
LIMITATIONS OF THE STUDY
a)
Time wa was a major li limiting factor.
b) b)
Seco Second ndar ary y data data avai availa labl blee fro from m com compa pany ny manu manual alss wer weree
c)
Lack Lack of co-o co-ope pera rati tion on from from cer certa tain in depa depart rtme ment ntss due due to thei theirr wor work k loa load. d.
3
d)
The The inf infor ormat matio ion n pro provi vide ded d by by the the comp compan any y is is ass assum umed ed to to be be aut authe hent ntic ic..
e)
The The inf infor ormat matio ion n pro provi vide ded d by by the the comp compan any y is is ass assum umed ed to be auth authen enti tic. c.
8
CHAPTERISATION Chapter : 1 - Introduction
Introduction chapter gives an idea about the, organization where the study has conducted, the nature of the study, the method of the study, scope of the study and it’s objectives and the limitations of the study.
Chapter : 2 - An Overview of Oman Economy and Petroleum Scenario.
This chapter gives us a picture of Oman’s natural resources like crude oil reserves, Natural gas reserves, it’s production and consumption and exports and imports etc..
Chapter : 3 - Profile of Arabian Industries LLC
This chapter discuss discuss about about the history, history, growth, growth, activitie activities, s, it’s subsidiaries subsidiaries,, joint joint ventures, ventures, projects, products, vision and it’s quality and responsibilities towards the environment and society.
Chapter : 4 - Functional Departments.
Functional departments discuss about the various departments in the organisaion, it’s functions and responsibilities and the functional of interdependence of departments
Chapter : 5 - SWOT Analysis
SWOT SWOT analys analysis is of this this study study reveal revealss the the presen presentt positi position on of the organiza organizatio tion. n. It is the assessment of the organization’s internal Strengths and Weaknesses and Opportunities and Threats posed by its external environment
Chapter : 6 - Findings-Suggestions and Conclusions.
4
This the last chapter of this report r eport and it discuss about the findings of some major problems identified during the study and certain remedial measures to be taken to overcome the identified problems and conclusion of this report.
CHAPTER 2
AN OVERVIEW OF OMAN ECONOMY AND
PETROLEUM SCENARIO
5
OMAN ECONOMY & PETROLEUM SCENARIO
The twenty third of July 1970, the date of accession to the rule of the country by His Majesty Sultan Qaboos bin Said, Sultan of Oman, is of prime significance in Oman's history. It forms a watershed between traditional and modern Oman. Since then the Sultanate, under the leadership of His Majesty Sultan Qaboos bin Said, Sultan of Oman, started establishing the pillars for its modern The Vision for Oman's Economy: Oman 2020 aims at carrying out a substantial transformation in the
structure of the national economy by developing a multiplicity of income sources, instead of depending mainly on a depletable source like oil in order to achieve economic balance and sustainable growth. Accordingly, it is expected that there will be a gradual decrease in the contribution of the oil sector to the GDP while the contribution of the non-oil sectors to GDP will increase gradually. It is expected that by 2020 the oil sector contribution to GDP will be 9% while the contribution of the gas sector will increase to 10 %. This significant transformation of the structural composition of the production base of Oman's economy is what we mean by economic diversification Now Oman is a middle income economy that is heavily dependant on dwindling oil resources. Because of declining reserves, Muscat has actively pursued a development plan that focuses on diversification, industrialization, industrialization, and privatization, with the objective of reducing the oil sectors contribution c ontribution to GDP to 9% by 2020. The drop in oil prices in 2008 and the global financial crisis reduced Oman’s budget surplus in 2008 and slowed the pace of investment and development projects, but GDP growth still was positive, in part because Muscat implemented an expansion fiscal policy. The global financial and economic crisis of 2009 was a major test for all the Gulf countries, but Oman’s steady and careful development policy and it’s long term vision kept it immune from the worst implications of the crisis. Now the world economy is on the path of recovery and oil prices are on the rise again, the Sultanate is geared for further economic growth and development. Despite a sharp fall in average oil prices in 2009, the Omani govt. has managed to keep it’s fiscal amoun amountt close close to balanc balance. e. Oman’s Oman’s econom economy y has navig navigate ated d throug through h the the global global econom economic ic crisis crisis in
6
relatively good shape. Although country’s real non oil growth fell sharply in 2009, it remained in positive territory. Oman’s financial sector was less affected by the global economic crisi crisiss and the the count countrie riess modest modest level level of indebt indebtedn edness ess has limite limited d it’s it’s extern external al vulnerability.
Petroleum Development Oman
Petroleum Development Oman is the foremost exploration and production company in the Sultanate. It accounts for more than 90% of the country's crude-oil production and nearly all of its natural-gas supply. The Company is owned by the Government of Oman (which has a 60% interest), Royal Dutch Shell (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest). The first economic find of oil was made in 1962, a nd the first consignment of oil was exported in 1967.
Details Oil and Gas. Production and Consumption
Oil Production
:
806,000bb/day.- (2008)
Oil Consumption
:
81,000 bb/day.- (2008)
Oil Exports
:
593,700 bb/day- (2008)
Oil Imports
:
17,290 bb/day - (2007)
Oil Proved Reserves
:
5.5 billion bbl - (Jan-2009)
Natural Gas Production
:
24 billion cu – (2008)
Natural Gas Consumption
:
13.46 billion cu m – (2008)
Natural Gas Exports
:
10.89 billion cu m – (2008)
Natural Gas Imports
:
350 million cu m – (2008)
Natural Gas proved Reserves
:
849.5 billion cu m (Jan-209)
Chart No.-1
Oman Oil-Production and Consumption
7
CHAPTER 3
Mr.Amer Al Suleimani (Managing Director)
8
ARABIAN INDUSTRIES LLC – A PROFILE
Managing Director
HR Joint Venture (JV) WPAI
Finance Manager
Internal Auditor
Chief Operating Officer
HSEM
CMGR. QAQC
Head AIMLLC
Head AIPLLC
Procureme nt Manager
Head AITSLLC
Corporate Planning Engineer
Marketing
Logistic & Asset Control
Manager
Proposal
ORGANISATION CHART OF ARABIAN INDUSTRIES LLC
3.1 PROFILE OF ARABIAN INDUSTRIES LLC Arabian Industries LLC is a leading engineering company catering to the needs of the energy sector
for the MENA region. It has facilities and expertise to meet the varied client needs of the Oil/Gas and other energy sectors in the production, Processing and delivery phases. Started in 1991 in The Sultanate of Oman, they have grown steadily and won many accolades and appreciations. The most prestigious
9
achievement is the Year 2008 “His Majesty Cup award for best five factories”. Their commitment to the job, quality of work, earnestness to provide Total Solutions and desire to surpass client expectati expectations ons has consistent consistently ly earned earned repeat business business from their their esteemed esteemed clients. clients. These These qualities enable them to compete in international markets and succeed. 3.2
THEIR CAPABILITIES INCLUDE:
1. Engineeri Engineering ng – EPC projects projects,, Design and and Engineering Engineering of of Vessels, Vessels, Skids and and Tanks. Tanks. 2. Manufactur Manufacturing ing – Fabricatio Fabrication n of Pressure vessels vessels,, Skids, Tanks, Tanks, Heat Exchangers Exchangers,, Columns, Columns, Process piping and Structural works 3. Construct Construction ion – For the Oil Oil and Gas indust industry, ry, Refineries Refineries,, Petrochemica Petrochemicall projects, projects, 4. Power plants plants as well well as Power Power transmissio transmission n & distributi distribution on networks networks and associa associated ted works works
3.3
ACCREDITATIONS TO ARABIAN INDUSTRIES LLC. •
ASME ‘U’, 'U2' ‘S’ & ‘R’ Stamps: For the manufacture and repair of Pressure Vessels at their
state-of-art facilities at Rusayl & Sohar work centre. •
Society is their cradle so they need to preserve and enrich it; Customers are their Patrons so
they need to honor their commitments with them; •
The employees are their biggest assets, so they need to nourish and help them grow. “Arabi “Arabian an Indust Industrie riess LLC and its subsid subsidiar iaries ies are commit committed ted to become become one of the the leadin leading g
companies providing complete solutions to the energy sector by enhancing customer satisfaction, strengthening employee & supplier relations and continually improving its product & services through the Quality Continuous Improvement, Enhancing Employees Safety, Providing proper resour resources ces & suitab suitable le workin working g enviro environme nment, nt, achiev achieving ing nation national al develo developme pment nt and improv improving ing profitability and budget”. Chart No.2 Monthly Sal ales es Growth 30,000,000 12 20,000,000
9
Sales
10
11
8 10,000,000
0 Series1
3 1 2
4 5
6
7 Series1
1 2 3 4 5 6 7 8 9 1 1 1 1, 2, 4, 6, 6, 9, 11 13 17 19 21 25
M onth th
10
Monthly Sales for 2010 JAN
1,882,085
MAY
6,959,717
SEP
17,110,852
FEB
2,790,538
JUN
9,208,672
OCT
19,076,943
MAR
4,029,629
JUL
11,125,912
NOV
21,301,852
APR
6,190,402
AUG
13,951,489
DEC
25,966,417
Chart of Monthly sales for 2009 3.4
3.5
3.6
3.6.1
3.6.1.1
Presti Pre stigio gious us Prod Product uct Rang Rangee of Ara Arabia bian n Indus Industri tries es •
Production & Test Separators
•
Pressure Vessels & Scrubbers
•
Reactors & Regenerators
•
Heat Exchangers & Coolers
•
Storage Tanks (Shop built)
•
Fuel treatment packages
Arabia Ara bian n Ind Indust ustry ry sin sincer cerely ely bel believ ieves es in: •
Society is their cradle so they need to preserve and enrich it;
•
Customers are their Patrons so they need to honor their commitments with them;
•
Their employees are their biggest assets, so they need to nourish and help them to grow.
SUBSIDIARY COMPANIES & JOINT VENTURES SUBSIDIARY COMPANIES ◙ARABIAN INDUSTRIES MANUFACTURING LLC –(AI –(AIM-LL M-LLC) C)
Arabian Arabian Industries Industries Manufacturing Manufacturing Co. LLC (AIM) (a subsidiary subsidiary of Arabian Arabian Industries Industries LLC), LLC), is the manufa manufactu cturin ring g divis division ion provi providin ding g compl complete ete soluti solutions ons for engine engineeri ering, ng, pro procu cure reme ment nt and and fabr fabric icat atio ion n of equi equipm pmen ents ts to cate caterr to clie client ntss in the the Oil Oil & Gas, Gas, Petrochemic Petrochemicals, als, Power , Fertilizer Fertilizer,, Chemicals, Chemicals, and Refinery Refinery industrie industries. s. The nature of activities focuses on experience, expertise, performance, safety, reliability and quality. ◙ ARABIAN INDUSTRIES PROJECTS LLC –(AIP-LLC)
Arabian Industries Projects LLC (AIP), a subsidiary of Arabian Industries LLC, is the Projects Division providing Engineering, Procurement, Construction and commissioning
11
services, to cater to clients in the Oil & Gas, Petrochemicals, Power, Fertilizer, Chemicals and Refinery Industries. The nature of activities involves Management and Execution of Engineering, Procurement, and Construction projects including associated Health, Safety and Enviro Environme nmenta ntall system systems. s. AIP has a sound sound Manage Managemen mentt polic policy y with with emphas emphasis is on teamwork, efficiency and personal relations at all levels.
3.6.1.2
◙ ARABIAN INDUSTRIES TECHNICAL SUPPORT LLC –(A –(AITS ITS-LL -LLC) C) Arabian Industries Technical Support LLC (AITS), a subsidiary of Arabian Industries LLC, is a provider of total maintenance solutions under one roof to cater to clients in the Oil & Gas, Petrochemicals, Power, Fertilizer, Chemicals and Refinery Industries. With the strategic location of its Machine Shop facilities, AITS is well poised to deliver its services promptly on time to its valued clients. Arabian Industrial Technical Support LLC has its own Fabrication, Machining, Thermal spraying, grinding and NDT facilities.
3.7
JOINT VENTURE
Arabian Industries LLC has entered into a JV with two foreign companies. They are listed below.
3.7.1
WORLEY PARSONS –ARABIAN INDUSTRIES J.V. (WPAI J.V.)
The WPAI - J.V. was formed between Arabian Industries LLC. and Worley Parsons (Oman) during during the middle middle of 2005 2005 as a framew framework ork to cater cater to the Engineer Engineering ing,, Mainte Maintenan nance ce and Constructi Construction on contract contract for Petroleum Petroleum Development Development of South South Oman, awarded by PDO. This is a five year contract which can be extended to 7 years.
The major scope involves the following:
12
Desi Design gn,,
Deta Detail iled ed
Engi Engine neer erin ing, g,
Proc Procur urem emen ent, t,
Cons Constr truc ucti tion on,,
Pre-c Pre-com ommi miss ssio ioni ning ng
and and
commissioning of Oil and Gas facilities covering the complete Civil, Mechanical, Electrical & Instrumentation works involved in new and developmental projects
3.7.2 NORM PROJECT J.V. This is another J.V. formed between Arabian Industries LLC. and an International institution (specializing in the treatment of radioactive contamination).
NORM
STANDS FOR
: “Naturally Occurring Radioactive Materials” which are found in the
PDO sites during production of Oil from oil-wells. This project involves a patented process of decont decontami aminat nation ion of such such NORM NORM contam contamina inated ted equipm equipment entss used used in Oil Oil proces processi sing, ng, to the Environmen Environmental tal criteria required for releasing releasing them for reuse or scrap. scrap. This entails entails suitable suitable investments in setting up decontaminating facilities and developing the required infrastructure in PDO sites for the said purpose.
3.8 PRODUCTS, CAPABILITIES
AND
SERVICES LISTING
VER VIEW VIEW 3.8. 3. 8.1 1 OVER
Arabian industry is a leading EPC Contracting Company, specialized in design, engineering, project construction, fabrication, and testing activities in Oil and Gas, Refineries, Petrochemicals and Power sectors. EPC Projects •
EPC Projects: Gas Treatment Plants;
•
Gas Pressure Reducing Stations;
•
Steam and Water injection facilities; Power Plants
13
Maintenance Support
Valve Testing , Repair & Maintenance services
•
•
Repair & maintenance of choke valves
•
Maintenance of static equipments
•
Maintenance...
Process Equipment
3.8.2
•
Engineered Process skid packages
•
Pressure Vessels
•
Heat exchangers & coolers
•
Heaters (direct/ indirect) & Shop built storag. Etc..
FACILITIES
ARABIAN INDUSTRIE’S MANUFACTURING
AND FABRICATION
facilities are located at the capital city of Muscat
and the port city of Sohar, in The Sultanate of Oman. SOHAR WORKSHOP
Situated in an area of 12000 12000 m2. High roof bays can handle handle a single section weighing weighing up to 100 Ton Ton under the shed and 250 Ton in the yard, with thickness up to 150 mm in mono block construction. R USAYL USAYL WORKSHOP
The Rusayl workshop houses a fabrication facility with a well equipped covered bay and an open yard which can handle a single section weighing up to 200 Ton in the yard with thickness up to 80 mm in mono block construction. PROJECT
FACILITIES
are located at their sites and these include temporary facilities like camps with
associated utilities. Other resource mobilizations include Plant, Equipment and Manpower suited to the typica typicall requi requireme rements nts of each each projec projectt and client. client.
Suppo Support rt servic services es like like procur procureme ement, nt, contra contract ct
administration, cost control, manpower recruitment, etc. are rendered from Head Office in Muscat. All
14
the operations are backed by a logistic management system overseeing the deployment of a well maintained fleet of vehicles and equipments. ARABIAN INDUSTRIES TECHNICAL SUPPORT LLC has its own maintenance facilities at two locations – one
at Rusayl (In Muscat) and another on the coastal city at Sohar. R USAYL USAYL WORKSHOP
Rusayl Workshop, has its own Maintenance facilities in Rusayl Industrial Estate. ITS-LLC is under certification process for API Monogram License (6A & 6D). ITS Rusayl workshop has an overall area of 6550 square meters out of which 900 square meters are covered. SOHAR WORKSHOP
Sohar Workshop, at Plot No: 257-259,261 &262, P. O. Box 93, Postal Code 327, and Sohar Industrial Estate has its own Maintenance facilities in Sohar Area. ITSLLC is under certification process for API Monogram License (6A & 6D). ITS Sohar workshop has covered area of 2310 square meters and material storage facilities.
3.8.3
CAPABILITIES
ENGINEERING & CAPABILITIES •
Mechanical design of process equipments like pressure vessels, heat exchangers, separators, manifolds and pre engineered skid packages and columns as per International standards ASME Sec VIII Div1 & 2, PD 5500 Shell standards.
•
Design of Shop and site Storage tanks as per international standards API 650, 653, EN 14015 and Shell standards & Design of direct and indirect heaters, fuel gas treatment plants
•
Regular association with reputed international process owners and licensors in the Oil & Gas, Refinery and Petrochemical industry for the design of equipment internals.
MATERIAL HANDLING, PREPARATION AND FORMING •
In-house mobile cranes of 25,50 & 80 MT capacities , and Over head cranes of single piece handling capacity up to 50 MT .
•
Hydraulic lifting and jacking arrangement arrangement for heavy loads up to 250 MT and CNC operated multi torch profile cutting machine.
15
•
Hydrau Hydraulic lic rolling rolling machine machiness capabl capablee of rolling rolling up to thicknes thicknesss range range of 110 mm in cold cold condition
•
Heavy thick thick plate shearing shearing and bending bending machineries machineries
and Fast cutting cutting and pipe beveling beveling
machines up to diameter 64” etc. WELDING AND JOINING TECHNOLOGY •
Core competency and expertise in welding and joining technology of all construction metals, especially in DSS,CRA and special alloy steels
•
Qualified for a wide range of welding procedures up to 200 mm thickness
Machining
Arabian Industries workshops are fully supported by in house machining facility with modern lathes, milling, grinding, drilling, boring and press machines. Testing •
Hydro/pneumatic testing testing bays and facilities facilities and RT/MT/UT/PT/PWHT/PMI RT/MT/UT/PT/PWHT/PMI and other NDT NDT facilities.
•
Tie ups with authorized testing laboratories for the mechanical and chemical testing etc.
Heat Treatment •
PWHT facilities by Internal and external firing methods
•
Local stress relieving facilities by electrical methods
•
Gas fired PWHT furnaces adjustable to equipment sizes.
Painting and Coating
Qualified Qualified and certified certified for specialize specialized d painting painting,, coating coating systems systems like GRE, Belzona, Belzona, glass flake, customized internal linings and corrosion resistant coatings. Support Services
All their operations are backed up by a well managed fleet of vehicles and logistics existing at both their facilities.
EPC and CMEI Construction works in: •
Oil & Gas, Refineries, Fertilizers, Petrochemicals, Steel Industries, Ports etc.
Major Services Offered
16
•
Maintenance of Static Equipments and Heat Exchangers including Tube Cleaning, Re-tubing and Plugging
•
Mainte Maintenan nance, ce, Overha Overhauli uling ng and Condit Condition ion Monito Monitorin ring g of Compre Compresso ssors, rs, Pumps, Pumps,
Turbines and DG Sets. •
Choke Manifolds , Mud Pumps , Blow out preventers , and Well Head Equipment & X-Mas Trees.
•
Other Equipment pertaining to API 6A & 16A , and Valve Testing, Repair & Maintenance Services etc.
Other Services •
Workshop Based, Metallic and Ceramic Spray Coating , Hard Facing , Dynamic and Balancing
•
Crossover & Spare Parts Manufacture , Stellite Coating , All types of machining jobs.
•
Heat Exchanger internal tube coating using etc.
Site Based
3.8.4
•
Bolt Tensioning , Flange Facing (on Site Machining) , Hydro Jetting , Fast Cutting of Pipes etc.
•
Turn Around and Shut Down Maintenance of Plant Facilities etc.
EQUIPMENTS
SOME OF THE MAJOR EQUIPMENT & MACHINERIES UNDER ARABIAN I NDUSTRIES LLC Description of Equipment
Machine Capability & capacity
CNC Profile Cutting Machine
CNC operated gantry type multi torch ( 6 No Oxy fuel torches and 1No plasma torch ) profile cutting( Flame and plasma)machine for plate(CS) thickness up to 180 mm equipped with programmable CNC controller
4-Roll and 3-Roll Plate Rolling Machines
CNC Operated electronic synchronized 4- roll high thick plate rolling machine(DAVI Make) for cold rolling up to 110 mm and hot rolling up to 212 mm thickness for 3.0 m width plates. 2 Nos. 3 Roll hydraulic plate rolling machines
Heavy Duty Fast Cutter
Heavy duty fast cutting and pipe beveling machines in diameter ranges 2 to 36 inches for CS/ SS/ LTCS/ DSS/ SDSS/ Inconel/ CRA (Make – DL RICCI, USA ) with pneumatic/hydraulic drives
Cranes Cranes and Lifting Lifting equipment equipment
In-house In-house mobile mobile cranes cranes of 25 & 50 MT capacities capacities.. Over head EOT cranes cranes of capaci capacitie tiess 5/10/2 5/10/25 5 & 50 MT with with single single piece piece handl handling ing capacity under the shed up to 100 MT.Hydraulic lifting and jacking arrangement for heavy loads up to 250 MT.Jib cranes of 2 Ton and 3
17
Tons el. Hydraulic Hydraulic Pipe Bender Bender
3.8.5
Hydraulic Hydraulic pipe bending bending machines machines capable capable to roll 20D and 40D bends bends upto 12" Sch 40
PLANT AND MACHINERY
SOME OF THE MAJOR PLANT AND MACHINERY ITEMS : Equipment Type
Available Qty
Model
Make
Welding Rectifier
8 Nos
XMT400, CST380,TB/10S/1000
Miller, Techsol
High Frequency/ Tig Machine
2 Nos
HF251-D1
Miller
Magnetic Drilling Machine
2 Nos
A100, 1150W
Unibore, Bosch
Power Generator
5 Nos
108KV, P12.5P2/PETP3, GEP 33-1/30 Caterpillar, FG Wilson, KVA-24KW, GEP 65-5/60KVA Olympian 48KW
Portable Generator
4 Nos
RGD 500, SDV 7000S
Robin, Potenza
Air Compressor
4 Nos
XA 136, XAHS 710 CD7FB, XATS156, XA-186
Atlas Copco
Blasting Pot
1 Nos
24650
Blastline (CE)
3.8.6
STRENGTH OF MANPOWER
Category Managers:
Engineers: General Support Staff: Supervisory workforce: General workforce: Total Manpower:
Man Power 2009 2008 30 25 120 110
55 750 1800 2755
45 700 1725 2605
2007
2006
2005
22 95 38 690 1600 2445
18 75 35 600 1475 2203
15 60 25 550 1400 2050
18
ManPower 2009 2009
2008
2008
2007
2007
Strength
2006
2006
S erie ies1 S erie ies2
2005
2005
S erie ies3
2004
S erie ies4
2003 1
S erie ies5
Year
3.8.7
SOME OF THE MAJOR PROJECTS OF ARABIAN INDUSTRIES LLC
“Over the last few years, AI-LLC, own a strong market presence and customer recognition with endless capabilities, resources and dedicated manpower. “ 1-Petroleum 1Petroleum Development of Oman
Petroleum Development Oman is the foremost exploration and production company in the Sultanate. It accounts for more than 90% of the country's crude-oil production and nearly all of its natural-gas supply. The Company is owned by the Government of Sultanate of Oman (which has a 60% interest), Royal Dutch Shell (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest).
Project-1
1Project JV Partner Type of Contract
C31/0606: Engineering and Maintenance Contract - PDO Worley Parsons Service Contract
Project-2
Nam Namee of Projec ojectt
DCME DCME & I Engi Engine neer eriing Servi ervice ce Cont Contra ract ct No. No. C-680 -68004 046, 6, -PDO -PDO
Dura Durati tion on of the the pro proje ject ct
4 Year Yearss
Type of Contract
Main sub-contractor for complete mechanical works +
19
Project-3
Name of Project Dura Durati tion on of the the pro proje ject ct Type of Contract
Fahud Steam Injection Project - PDO 12 mont months hs EPC Lump sum
Project-4
Project Dura Durati tion on of the the proj projec ectt Type of Contract Project-5 Name of Project Dura Durati tion on of the the pro proje ject ct Type of Contract
C31/1097: Hubara -Saih Rawl - 132 kv Overhead line, South Base 25 mont months hs EPC , Lump sum
Pressure Reduction Terminal -PDO 25 Mont Months hs Main EPC Contractor
Project-6
Name of of Project Dura Durati tion on of the the pro proje ject ct Type of Contract
Conve nversion of Pr Propylene ene sp sphere to to LP LPG se services -P -PDO 24 mont months hs Main Contractor lumpsum
2-Petrofac 2Petrofac Engineering & Construction Ltd Petrofac is an international provider of facilities solutions to the oil & gas production and
processing industries. 1-Na 1-Name me of the the Pro Projject ect 2-Name of of th the Pr Project 3-Name of of the Pr Project
LP Ves Vessels sels for for Kau Kautther her Gas Gas Plant lant -Kau -Kautther her Gas Gas Projec ojectt, PDO PDO Storage ta tanks ( CS CS/SS) for for Kauth uther Ga Gas pl plant (8 No No), DSS/SS He Heavy wall all pi piping fo for Ka Kauther her Gas pl plant
3-Worley 3Worley Parsons Oman Engineering LLC 3.1 Name of the Project Design code
EPC of Gas floatation & Degassing tanks DEP 34.51.01.31 & EN 14015-2004
3.2 Name of the Project Design code
EPC of two no of Settling tanks DEP 34.51.01.31 & EN 14015-2004
3.3 Name of the Project PDO – Fahud Fahud Production & test Separators
20
Steam Injection Project 3.4 Nam Name of of the Pr Proje oject
DSS/SS Heavy wall piping for for Kauth uther Gas plantnt-(8,000Inch.dia), Kauther Gas Project, PDO
4-KEMPE 4KEMPE Engineering LLC
360 T Silos Name of the Project Sohar Aluminium Aluminium Smelter Development Project
Name of the Project
10 nos. LP Vessels for PDO Saih Nahada Gas PlantQarnalam . PDO-Contract C 31/0090
SOME OF THE PRESTIGIOUS PRODUCTS FROM ARABIAN INDUSTRIES LLC. 1-BURHAN THREE PHASE PRODUCTION SEPARATOR .
2-BULK ULK SEPARATOR SEPARATOR FOR FOR MARMUL MARMUL PDO PROJECT.
21
3-LP/HP
VESSELS FOR FOR SOHAR SOHAR REFINERY PROJECT FOR FOR JGC JGC CORPORATION JAPAN.
4-PRODUCTION SEPARATOR – PETROLEUM DEVELOPMENT OMAN
5-WATER INJECTION
UPGRADE FOR AXIA
PROJECT.
HAWMAR -UK -UK PROJECT.
22
6-GAS TREATMENT PLANT-BHEL PROJECT FOR PETROLEUM DEVELOPMENT OMAN. 1
2
23
ENGINEERING PROCUREMENT AND CONSTRUCTION
OF
SOHAR REFINERY
PRESSURE REDUCTION TERMINAL ..
CLIENT: OMAN GAS COMPANY.. 1
2
24
3.9 QUALITY POLICY
OF
ARABIAN INDUSTRIES LLC.
A dedicated team of Quality Assurance and Quality Control Engineers (lead by the Company’s QA/QC Manager and Quality Systems Engineer) supports the implementation and monitoring of Quality Management of the the Company. All departments in the Company Company are certified to ISO 9001 and regular internal and external audits are conducted to check the compliance and renewal of certificate.
25
ISO 9001:2 9001:2000 000 requir requires es that that an organ organiza izatio tion’s n’s qualit quality y policy policy provid providee a framew framework ork for reviewing the company’s quality objectives. The policy should give an overall direction for the organization, and its objectives should flow in that direction. But because of outside forces such as customer requirements and market environments, business business conditions conditions can change. change. If this happens, happens, the alignment alignment between between quality quality policy policy and objective objectivess can become become off-centere off-centered. d. So, the standard standard requires requires that management management periodica periodically lly review review change changess to both both the polic policy y and object objective ives. s. An organi organizat zation ion’s ’s objec objectiv tives es must must be measurable and its quality management system processes designed to meet those objectives.
3.10 MISSION AND VISION 3.10.1 MISSION AND VISION OF AI-LLC 1 Mission
To achieve market leadership through excellence in the quality of product and services by adopting state state of the art techno technolog logies ies and innov innovati ative ve manage managemen mentt approa approache chess aim toward towardss custom customer er satisfaction.
2 Vision
Arabian Industries LLC is committed to providing their clients with the best possible service and results at a competitive price, without compromising on quality, health, safety, environment, business ethics or welfare of of their staff. “As a recommended supplier, supplier, and a preferred employer, employer, AI LLC is meeting the objectives and needs of their clients & employees.”
3 Policy
Arabian Industries LLC and its subsidiaries are committed to become one of the leading company providing complete solutions to the energy sector by enhancing customer satisfaction, strengthening employee & supplier relations and continually improving its product & services. AILLC and its subsidiaries strive to achieve this through the following objectives:
26
•
Continually improving the effectiveness of quality Management System
•
Enhancing safety of employees and protecting the Environment
•
Timely delivery of products
•
Providing adequate resources and suitable work environment
•
Training & Development of work force and meeting statutory Omanaization target
•
Improving profitability
4 Strength
Integrity in diversity. Though their business expands to diverse sectors they still abide by their vision & policy and maintain integration of their Quality management system and consistency of operations through empowerment, motivated & dedicated peers and strong leadership
5 Approach
AILLC is a customer-focused organization nurturing the culture of internal-customers & externalcustomers customers through out the organizati organization. on. They achieve this through team-building team-building,, supply supply chain management and continual training & development of their employees.
6 Credentials
AI LLC’s quality management system established since 1996 has been certified to ISO 9001 – 2000. Their pressure equipments manufacturing facilities are accredited by ASME for U, U2, S and R stamps. Oil & Gas field equipments manufacturing facilities are certified by API for conformance to 6A, 6D and 16A requirements.
ISO 9001: 2000
AI LLC’s Quality Management System is certified to ISO 9001: 2000 by M/S. Velosi Quality Management International Limited. The scope of accreditation includes:
3.11
ARABIAN INDUSTRIES MANUFACTURING LLC
Design, manufacturing and installation of process equipments like columns & reactors, pressure vessels & separators, heat exchangers, gas treatment packages, manifolds, piping pre-fabrication and storage tanks in accordance with ASME/U/U2/S/R symbol requirements / BS & other international standards.
27
3.12
ARABIAN INDUSTRIES PROJECTS LLC
Engineering, procurement, construction, project management (involving project plann planning ing execut execution ion,, monito monitorin ring, g, instal installat lation ion,, commis commissio sionin ning g and post post deliv delivery ery mainte maintena nance nce activi activitie ties) s) for oil oil & gas, gas, desali desalinat nation ion & power power plant plant,, fertil fertilize izerr plant plant,, storag storagee tanks tanks,, pipeli pipeline ne construction, flow line construction, electrical over head lines.
3.13
ARABIAN INDUSTRIES TECHNICAL SUPPORT LLC
Manufa Manufactu cturin ring g of produc products ts accord according ing to API monogr monogram am mainte maintenan nance ce of pumps pumps,, compre compresso ssors, rs, turbines & wellhead equipment repair and re-manufacture of all types of valves pressure vessels, tanks, heat exchanger cleaning and re-tubing, machining of oil & gas field items, calibration, pressure gauges, on site service like bolt tensioning, flange facing, cold cutting, on-line repairs of valves.
3.14
CORPORATE OBJECTIVE
3.14.1 3.14.1 To be of service service to the nation nation and to contribu contribute te effectiv effectively ely to its economic economic well being being and growth through the production, supply and marketing of infrastructure facilities to Petroleum Production and it’s allied industries in Sultanate of Oman. 3.14.2 To sustain and improve its pioneering pioneering role in in the development development of engineering engineering and and technology in manufacturing industry through continuous research and development. 3.14.3 3.14.3 To improve improve productivit productivity y and maintain maintain high standards standards of quality quality and adopt effective effective measures measures for controlling cost in all aspects. 3.14.4. To ensure for its customers the the availability of its products products and services on reasonable terms, terms, for its shareholders shareholders a fair return on capital capital invested invested and, for itself, development development of adequate adequate internal resources for continual growth and expansion. 3.14.5 3.14.5 To develop, develop, train and maintain maintain a team of motivated motivated and disciplined disciplined personn personnel el with required required skills and abilities, and to encourage innovation and to create a condition for their functioning and career development so as to improve their overall quality of life
3.15
CORPORATE GOALS
3.15.1 3.15.1 To achieve achieve a net profit of OMR: OMR: One Million Million per year with with a turnover turnover of OMR: 100 Million Million by the year of 2010 3.15.2 To focus on cost reduction and technology up gradation in order to become competitive competitive in each line of business. 3.15 3.15.3 .3 To cons consta tant ntly ly inno innova vate te and and deve develo lop p new new tech techno nolo logy gy and and serv servic ices es to sati satisf sfy y cust custom omer er requirements.
28
3.15.4 3.15.4 To invest invest in new business business lines, lines, where profit profit can be made on sustainable sustainable basis basis over the long te rm. 3.15.5 3.15.5 To compete compete throu through gh speed, speed, agilit agility y and flexibi flexibilit lity y in recogniz recognizing ing and capturing opportunities in existing markets.
3.16 ARABIAN INDUSTRIES LLC AND IT’S CORPORATE SOCIAL R ESPONSIBILITY ESPONSIBILITY
3.16.1 CORPORATE SOCIAL R ESPONSIBILITY ESPONSIBILITY-(CSR)” Corporate Social Responsibility a concept whereby organisations consider the interests of
society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organisations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.”
•
Reduced costs, Increased business leads,
•
Increased reputation, staff morale and skills development
•
Improved relationships with the local community.
29
•
Innovation in processes, products and services •
Managing the risks a company faces.
3.16.2 ECONOMIC RESPONSIBILITIES: The first criterion of social responsibility is economic responsibility. The business institution is, above all, the basic economic unit of society. Its responsibility is to produce goods and services that a society wants and to maximise profit for its owners and shareholders. Economic responsibilities, carried to the extreme, is called profit-maximizing view; it was advocated by Nobel economist Milton Friedman. This view argued that a company should be operated on a profit-oriented basis, with its sole mission to increase its profits so long as is stays withing the rule of the game. The purely profit-maximizing view is no longe longerr consid considere ered d an adequa adequate te criter criterion ion of perfor performan mance ce in the the world world in genera general. l. Treati Treating ng economic gain in the social as the only social responsibility can lead companies into trouble.
3.16.3 LEGAL RESPONSIBILITIES All modern societies lay down ground rules, laws and regulations that businesses are expected to follow. follow. Legal Legal responsib responsibility ility defines what society society deems as important important with respect respect to appropria appropriate te corporate behavior. Businesses are expected to fulfill their economic goals within the legal framework. Legal requirements are imposed by local councils, state and federal governments and their regulating agenci agencies. es. Organi Organizat zation ionss that that knowin knowingl gly y break break the the law are poor poor perfor performer merss in this this catego category. ry. Intentionally manufacturing defective goods or billing a client for work not done is illegal. Legal sanctions may include embarrassing public apologies or corporate ‘confessions’.
3.16.4 ETHICAL RESPONSIBILITIES Ethical responsibilities include behavior that is not necessarily codified into law and may not serve the organization’s direct economic interests. To be ethical, organization’s decision makers should act with equity, fairness and impartiality, respect the rights of individuals, and provide different treatments of individual only when differences between them are relevant to the organization’s goals and tasks.
30
Unethical behavior occurs when decisions enable an individual or organization to gain expense of society.
3.16.5 SOCIAL AWARENESS AND EDUCATION The role among corporate corporate stakehold stakeholders ers to work collectively collectively to pressure pressure corporations corporations is changing. changing. Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. Non-governmental responsibly. Non-governmental organizations are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behavior. Through education and dialogue, the development of community in holding businesses responsible for their actions is growing.
3.16.6 STAKEHOLDER PRIORITIES Increasing Increasingly, ly, corporatio corporations ns are motivated motivated to become become more socially responsible responsible because their most important stakeholders expect them to understand and address the social and community issues that are relevant to them. Understanding what causes are important to employees is usually the first priority because of the many interrelated business benefits that can be derived from increased employee engage engagemen ment. t. Key extern external al stakeh stakehold olders ers includ includee custom customers ers,, consum consumers ers,, invest investors ors (parti (particul cularl arly y institutional institutional investors), regulators, academics, and the media).
WHEEL OF SUCCESS “Upholding the belief that "giving back to the society from which one is benefited",
31
Arabian Arab ian Indus Industries tries LLC is commit committed ted to contri contribut buting ing to the susta sustaina inable ble develo developme pment nt of the
communities in which its businesses are operated. They recognize that achieving corporate social responsibility while meeting their business objectives requires balance among all stakeholders, including shareholders, customers, staff, business partners, community and environment. Therefore, the organization has been participating in various initiatives, including charity, education, culture & sports, environmental protection and promoting staff's well-being and volunteerism, to enhance their positive impact on people and communities”
CHAPTER 4
32
FUNCTIONAL DEPARTMENTS
1-FINANCE DEPARTMENT 1. Objectives
8.1 To Manage & account for for the financial resource resource of the Organization, Organization, to forecast its requirement requirement in the future and plan accordingly and to check for deviation. 8.2 Report Report the financ financial ial performan performance ce of the company company to Manage Managemen ment, t, stakeh stakehold olders ers & and to comply with the Govt. rules and regulations
33
2. ORGANISATION CHART OF FINANCE DEPARTMENT.
MANAGER-FINANCE
MANAGER FINANCE (ASSISTANT
CHIEF ACCOUNTANT
ACCOUNTS-PAYABLE
ACCOUNTS-RECEIVABLE
ACCOUNTS-PAYABLE
ACCOUNTS RECEIVABLE
ACCOUNTS-PAYABLE
BANK MANAGEMENT
INVENTOR MANAGEMENT
CASH MANAGEMENT
ASSET CONTROL DEPARTMENT
SALARY AND WAGES
FUNCTIONS OF FINANCE DEPARTMENT
Some of the major functions in finance departments are, Management of Accounts Receivable, Accounts Accounts Payable, Payable, Accountin Accounting g of Materials, Materials, Banking, Managing of Financial Financial Resources and Budget preparation, Cost accounting, Auditing, Preparation of financial statements & Reports, Corporate Planning etc. According to the nature of the functions, Finance department in AI LLC is divided into four main sections for carrying out its process. They are:
34
3.1
3.1 3.1
Stew Stewa ardsh rdship ip of Fin Fina ance nce Funct unctio ions ns
3.2 3.2
Serv Servic icin ing g and and Mon Monit itor orin ing g of of Proj Projec ectt Mana Manage geme ment nt Act Activ ivit itie iess
3.3 3.3
Mana Manage geme ment nt of Comp Compan any y Acc Accou ount ntss
3.4
Implem Implement entati ation on of of Corpo Corporat ratee and and Contra Contract ct Budge Budgets. ts.
Stewardship of Finance Functions
3.1. 3.1.1 1
Deve Develo lopm pmen entt of fin finan ance ce fac facil ilit itie iess
3.1.2
Liaison with bankers and other funding agencies.
3.1.3 3.1.3
Managi Managing ng fundin funding g flow flow and cash cash balanc balances. es.
3.1.4 3.1.4
Provid Providing ing for requir requiremen ementt of Corp Corpora orate te Budg Budgets ets..
3.1.5 3.1.5
Report Reporting ing on financ financial ial statu statuss to Manage Managemen ment. t.
3.1.6 3.1.6
Liaisi Liaising ng with with Custo Customer merss & Supplie Suppliers rs regard regarding ing cash cash flow flow..
3.1.7
Publishin Publishing g monthly, monthly, quarterly quarterly,, and Annual Annual Financial Financial Statement. Statement.
3.1.8 3.1.8
Develo Developme pment nt of Mana Managem gement ent Informa Informatio tion n syst system. em.
3.2 Servicing and Monitoring of Project Management Activities.
3.2.1 3.2.1
Suppor Supportin ting g Esti Estimat mation ion and Tender Tendering ing Effort Effort
3.2.2 3.2.2
Appro Approvin ving g entries entries for for Finance Finance and and Account Accountss in Estima Estimate te summar summary. y.
3.2.3
Supportin Supporting g with with Finan Finance ce and and Accoun Accounts ts Servic Services es during during executi execution. on.
3.2.4 3.2.4
Monito Monitorin ring g and Repo Reporti rting ng Progr Progress ess duri during ng execu executio tion. n.
3.2.5 3.2.5
Report Reporting ing Projec Projectt Perfo Performa rmance nce on Compl Completi etion on..
3.2. 3.2.6 6
Insu Insura ranc ncee Mana Manage geme ment nt..
3.3 Manag Management ement of Company Company Accounts Accounts..
3.3.1 3.3.1
Bankin Banking g Manage Managemen mentt and and Contro Controls ls (Cash (Cash Book Book ledge ledger) r)
3.3.2 3.3.2
Accoun Accounts ts Receiv Receivabl ables es and and Account Accountss Payabl Payables es Manage Managemen mentt
3.3.3 3.3.3
Invent Inventory ory/Pu /Purch rchase ase Admi Adminis nistra tratio tion-( n-(AP AP Ledge Ledger) r)
3.3.4
Salary and wages, Administration, End of Service
3.3.5
Preparatio Preparation n of of Year Year end end Accoun Accounts/Ma ts/Managem nagement ent of Extern External al Audit Auditing. ing.
3.3.6 3.3.6
Prepar Preparati ation on of quar quarter terly ly and and Annua Annuall Perfor Performan mance ce Repor Reportt
35
3.4.2
3.5
3.5.3
IMPLEMENTATION OF CORPORATE AND CONTRACT BUDGET
3.4.1 .4.1
Revi Review ew of Pro Projec ject cont contro roll budge udgets ts
Management of corporate budget Exercise .
PROCESS OF FINANCE DEPARTMENT.
3.5.1
3.5.2
3.4
Accounts Payables.
3.5. 3.5.1. 1.1 1
Recei Receivi ving ng Inv Invoi oice cess from from sup suppl plie iers rs
3.5.1.2 3.5.1.2
Verifi Verificat cation ion of of invoic invoicee with with PO and supp support orting ing docu documen ments. ts.
3.5.1.3 3.5.1.3
Sorting Sorting the the invoice invoice according according to the the division divisionss and logged logged in ERP accord accordingly ingly..
3.5.1.4 3.5.1.4
Gettin Getting g the appro approval val in in the invoi invoice ce from from the respe respecti ctive ve buyer buyer
3.5.1.5
Prepare GRN and ARN and approval for the service category invoices
3.5.1.6
Booking the invoices in ERP on the basis of Purchase Order.
3.5.1.7
Print and attach Purchase Journal Voucher along with invoices.
3.5.1.8 3.5.1.8
On due due basi basiss relea releasin sing g the the paymen paymentt to the the supp supplie liers. rs.
Account Receivable.
3.5.2. 3.5.2.1 1
Rece Receiv ivee Cust Custom omer er ord order er from from Mark Market etin ing g or ope opera rati tion on dep depar artm tmen ent. t.
3.5.2. 3.5.2.2 2
Rece Receiv ivee cop copy y of of DO DO or or JCR JCR from from the the ope opera rati tion on depa depart rtmen mentt
3.5.2.3
Generate Print and compile Invoice from ERP
3.5.2.4 3.5.2.4
Scrutin Scrutinize ize the the invoi invoice ce with with releva relevant nt docu documen ments. ts.
3.5.2.5 3.5.2.5
Distri Distribut butee the the invoi invoice ce to the custom customers ers
3.5.2.6 3.5.2.6
Follow Follow up up for for the paym payment ent and and prep prepare are rece receipt ipt for for the the paymen payment. t.
Cash Payouts.
3.5.3.1 3.5.3.1
Cash Cash payme payment nt vouc voucher herss for for sundr sundry y offic officee expen expenses ses
3.5.3.2 3.5.3.2
Employ Employee ee settle settlemen mentt as per the the advic advicee from from salary salary depart departmen ment. t.
3.5.3.3 3.5.3.3
Verifi Verificat cation ion of docum document ent with with supp support orting ing
3.5. 3.5.3. 3.4 4
Take Take app appro rova vall from from Acco Accoun untt head head..
3.5. 3.5.3. 3.5 5
Clos Closin ing g cash cash boo book k ever every y day day
3.5.3.6 3.5.3.6
Physic Physical al cash cash verif verifica icatio tion n of cash cash bala balance nce on on a daily daily basis basis..
36
3.5.3.7 3.5.3.7
Surpri Surprise se chec check k of of cash cash bala balance nce weekly weekly basis basis.. 3.5.3.8Taking approval, Pay and book the voucher in ERP. 3.5.4 Salary Processing and Accounting.
3.5.4. 3.5.4.1 1
Collec Collect, t, Re-co Re-conci ncile le and and comp compile ile attend attendanc ancee data. data.
3.5.4. 3.5.4.2 2
Attend Attendan ance ce is reco recorde rded d at each each locat location ion on on daily daily basis basis..
3.5.4. 3.5.4.3 3
Inform Inform res. res. divi divisio sion n for for missin missing g atte attenda ndance nce..
3.5.4. 3.5.4.4 4
Collec Collectt overti overtime me data data and and verify verify with with OT OT rules rules of the the compa company. ny.
3.5.4. 3.5.4.5 5
Alter Alter emplo employee yee’s ’s earni earnings ngs and and dedu deducti ction on for for arrea arrears. rs.
3.5. 3.5.4. 4.6 6
Fina Finall pro proce cess ssin ing g of sala salary ry..
3.5.4.7 3.5.4.7
Print Print Bank Bank trans transfer fer lett letter er and and detai detailed led stat statemen ement. t.
3.5. 3.5.4. 4.8 8
Gett Gettin ing g auth author oriz izat atio ion. n.
3.5. 3.5.4. 4.9 9
Forw Forward ard tra trans nsfe ferr advic advicee lette letterr to bank bank..
3.5.4.1 3.5.4.10 0 Print Print and distri distribut butee salary salary slip. slip.
3.5.5 Annual Budgeting 5.5.1
Update the Budget Assumptions. 3.5.5.3. 3.5.5.3. Operating Operating Expenses Expenses 3.5.5. 3.5.5.4 4 Man Power Power Cost Cost
3.5.5.5 Revenue and Over Heads 3.5.5.6 3.5.5.6 Capital Capital Expendit Expenditures ures 3.5. 3.5.5. 5.7 7 Cash Cash Flow Flow..
3.5.5.8
Collect data for Next year annual budget in prescribed format.
3.5.5.9
Review the assumptions listed by Operation’s Department .
3.5.5.10 3.5.5.10 Define Define capacity capacity level level of each division divisionss and bottlene bottleneck ck operation operations. s. 3.5.5.1 3.5.5.11 1 Update Update Budget Budget Model. Model.
3.5.5.1 3.5.5.12 2
Compi Compiled led data data rece receive ived d from from Operat Operation ionss Depa Departm rtment ent..
3.5.5.1 3.5.5.13 3
Verify Verify cost cost eleme element nt wise wise data’ data’ss with with last last years years actu actual. al.
3.5.5.1 3.5.5.14 4
Compar Comparee oper operati ating ng cash cash flow flow with with capita capitall out flow. flow.
3.5. 3.5.5. 5.15 15
Pres Presen enti ting ng budg budget et to seni senior or mana manage geme ment nt
3.5. 3.5.5. 5.16 16
Rele Releas asee the the budg budget et to to oper operat atin ing g divi divisi sion ons. s.
3.5.5.1 3.5.5.17 7
Monito Monitorin ring g budget budget utili utilizat zation ion on regul regular ar basis basis
3.5. 3.5.5. 5.18 18
Cond Conduc ucti ting ng quar quarte terl rly y bud budge gett rev revie iew w
37
3.5. 3.5.5. 5.19 19
Comp Compil ilin ing g actu actual al fin finan anci cial alss for for the the peri period od
3.5. 3.5.5. 5.20 20
Prep Prepar arin ing g deta detail iled ed vari varian ance ce repo report rt
3.5.5.21
Revise budget accordingly and gets final approval from senior management.
3.5.6 3.5 .6 Int Interna ernall Aud Auditi iting ng
3.5.6.1
Identify the scope of Audit
3.5.6.1 3.5.6.1.1 .1
Checki Checking ng with with vario various us depart departmen ments ts about about their their need need of Auditi Auditing. ng.
3.5.6.1 3.5.6.1.2 .2
Review Review the the recom recommen mendat dation ionss of the the exter external nal audito auditors rs
3.5.6.1.3
Review the result of previous auditors.
3.5.6.1 3.5.6.1.4 .4
Highli Highlight ght the the area area which which have have not not audi audited ted for for a long long time. time.
3.5.6.1.5
Then summarize this information in list of possible audit.
3.5.6.1 3.5.6.1.6 .6
Review Review this this list list with with Audit Audit commi committe tteee and seek seek thei theirr advice advice..
3.5.6.1 3.5.6.1.7 .7
Finali Finalize ze the list list of audits audits,, noting noting approx approxima imatio tion n of resourc resources es and time time
requirement. 3.5. 3.5.6.1 6.1.8 .8 3.5.6.2
Shor Shortt the the repo report rt by by prio priori rity ty lev level el
Obtain Audit Committee Approval
3.5.6.2 3.5.6.2.1 .1
Presen Presentin ting g the the Audi Auditt list list to Audit Audit Comm Committ ittee ee
3.5.6.2.2. 3.5.6.2.2.
Make the final adjustment adjustment recommended recommended by audit audit committee. committee.
3.5.6.2.3
Communicate the audit program and audit methodology to department
heads. 3.5. 3.5.6.2 6.2.4 .4
Cond Conduc uctt aud audit it as per per sch sched edul ule. e.
3.5. 3.5.6.2 6.2.5 .5
Crea Create te pre preli limi mina nary ry aud audit it repor reportt
3.5.6.2.6
Assembling all the findings from the internal audit department.
3.5. 3.5.6.2 6.2.7 .7
Add Add recom recommen menda dati tion onss to the the rep repor orts ts..
3.5.6.2 3.5.6.2.8 .8
Sendin Sending g repo reports rts to the depart departmen mentt head heads. s.
3.5.6.2.9
Adjust the report based on any review comments.
3.5.7 Fixed Asset Asset control system.
3.5. 3.5.7. 7.1 1
Recei Receive ve Ass Asset et Purc Purcha hase se Requ Requis isit itio ion n
3.5.7.2 3.5.7.2
Check the availab availability ility of the the asset; asset; if available available;; follow follow asset asset transfer transfer procedu procedure. re.
38
3.5.7.3 3.5.7.3
If asset asset is not not availabl available, e, evaluate evaluate the the proposa proposall and record record the the fact in evaluati evaluation on form. form. 3.5.7. 3.5.7.4 4
Send Send the asse assett purcha purchase se evalu evaluat atio ion n for appro approva vall and get the approval.
3.5. 3.5.7. 7.5 5
Prepa Prepare re purc purcha hase se requ requis isit itio ion. n.
3.5.7.7
On receipt of asset asset ; ARN is prepared thru thru asset module.
3.5. 3.5.7. 7.8 8
Upda Update te the the ass asset et mast master er in in ERP ERP.. ..
3.5.7.9
Asset invoice and ARN to be sent to accounts for making the payment.
3.5.7.10 Up date fixed asset register. 3.5.8
Depreciation Process
3.5.8.1 3.5.8.1 Monthly Monthly process process depreci depreciation ation in in ERP 3.5.8.2 Fixed asset can be update with monthly depreciation process process
3.5.9
Fixed asset accounting
3.5.9.1 3.5.9.1 Fixed asset disposal disposal 3.5.9.2 3.5.9.2 Fixed asset asset physica physicall verificati verification on 3.5.9.3 3.5.9.3 Evaluation Evaluation of of fixed asset asset proposals proposals.. 3.5.10 3.5.1 0 Month Monthly ly Manag Management ement Infor Informatio mation n Report Report
3.5.10.1Freeze attendance for the month after confirming with pay roll executive 3.5.10.2Provision for retirement benefit-(Auto thru ERP) 3.5.10.3Provision for leave 3.5.10.4Provision for end of service benefit
3.5.10.5
Provision for Bonus
3.5.10.6Provision for Air Passage 3.5.10.7Provision for Long Term service benefit 3.5.10.8Provision for social security insurance 3.5.10.9Verify GL balance before and after posting the above positions
3.5.10.10
Process Depreciation
3.5.10.11
Process depreciation on Temp node in ERP
39
3.5.10.12
Process depreciation in update mode and pass JV. 3.5.10.13 3.5.10.13
Transfer Transfer GL GL data data for for the month month to management management thru Transfer Transfer Management account section in ERP.
3.6
SOME KEY INFORMATION 3.6.1 3.6 .1 Ins Insura urance nce scheme schemess
“In personal and business affairs; the correct Insurance is vital. Wrong or inadequate cover, cover, can lead lead to disast disastrou rouss conseq consequen uences ces for indivi individua duals, ls, as well well as busine business ss enterprise. The right advice makes all the difference and prevents costly mistakes. As far as a business a firm concerned, the most obvious things need, is to insure it’s valued human power, power, and other other propertie propertiess like; buildings, buildings, plant and machinery, machinery, stock and goods in transit (export and import)etc
To ensure all this AI LLC is having a Health Insurance Policy for it’s valued man power, for all exports imports an Open Marine Policy, and also other various policies are under various schemes with a reputed insurance company in Oman.
The various insurance schemes are:
1
Fire Ins Insurance.
2. Machine Machine break break down down insura insurance nce.. 3. Electr Electroni onicc equi equipme pment nt insur insuranc ance. e. 4. Insura Insurance nce for for vehicle vehicless and heav heavy y equipm equipment ent.. 5. Perso Persona nall healt health h insu insuran rance ce.. 6. Stor Storag agee insu insura ranc nce. e. 7. Open Open cover policy policy for all inlan inland d and foreign foreign purcha purchases ses,, and for exports exports and imports.
3.6 .6.2 .2
Corpora ratte Pl Plan
40
Corporate plan is prepared by taking estimates and future projections for the coming year. The corporate plan is revised every year by changing current year data’s and adding New Year data’s. This plan projects the company’s position for the next years. 3.6. 3. 6.3 3
Work Wo rkin ing g Ca Capi pita tall Ma Mana nage geme ment nt
The The Work Workin ing g capi capita tall is esse essent ntia iall for for any any Orga Organi niza zati tion on to meet meet its its day day to day day requiremen requirements. ts. Working Working capital may be specified specified as the firm’s current current assets assets over curren currentt liabil liabiliti ities. es. As a large large scale scale compan company, y, AI LLC is also also requir requires es suffic sufficien ientt working capital to meet its daily requirements. AI LLC uses letter of credit and bank guarantee mainly for the purpose of financing the import of raw material and for executing the project works. If the Co. needs to avail more than the approved limit, the finance department will have to take permission of Board of Directors. Arabian Industries LLC approaches different banks to raise funds to meet its working capital requirement and it maintains a consortium of banks for the same. They are:
BANKERS SUPPORTING AI LLC. 1. National Bank of Oman 2. Bank Dhofar 3. Bank Sohar. 4. HSBC
At present Arabian Industry maintains financial arrangements with all these four banks for it’s working capital requirements. In the case of Over Draft, a limit up to an amount of OMR#10,000,000/- (Riyal Omani: Ten Million), Million), Guarantee Guarantee’s ’s up to an amount amount of OMR#15,000 OMR#15,000,000 ,000//- (Riyal (Riyal Omani: Omani: Fifteen Million) and Letter of Credit up to an amount of OMR#15,000,000/- (Riyal Omani : Fifteen Thousand).
41
2
PURCHASE DEPARTMENT
The purchase procedure covers the following areas of procurement of goods and services for the company. 1.
Joint Venture related materials purchases
2
Capi Capita tall item itemss (For (For pro proje ject ct and and oth other er pur purpo pose ses) s)..
2.
Equipment and Spares.
3.
AI-LLC Project related Material purchases
4.
Service items
5
Offic fficee stati tation oner ery y and and oth other items tems
2.1 OBJECTIVES
2.1.1
To maintain maintain uninterrup uninterrupted ted flow flow of materia materials ls to suppo support rt the develo development pment schedules schedules..
2.1.2 2.1.2
To procur procuree material materialss economi economical cally ly at a cost cost consist consistent ent with with the qualit quality y and service service required.
2.1.3
To provide the necessary expertise, advice, information to the Curators and Education Officers with regard to the best quality of material available in the market, supplier’s capability and performance etc.
2.1.4.
To develop and maintain good buyer-seller relationship.
2.1.5.
To promote source development.
2.1.6.
To maintain PDO standard, reputation, and credibility credibility in the market by fair fair dealings and prompt payments.
2.2.MAIN FUNCTIONS The main functions of the Purchase Department are defined as follows:
2.2.1. To maintain uninterrupted flow of materials to support the sources.. 2.2.2. 2.2.2.
Checki Checking ng of requisi requisitio tions/ ns/pur purcha chase se indent indents. s.
2.2.3. 2.2.3.
Select Selection ion of of suppl supplier ierss for issue issue of of enquiri enquiries. es.
2.2.4. 2.2.4.
Issuing Issuing enqui enquiries/ ries/tende tenders rs and and obtaining obtaining quotation quotations. s.
2.2.5. 2.2.5.
Analyzing Analyzing quotati quotations ons and and bids etc., etc., and preparatio preparation n of comparati comparative ve statement statement
42
2.2. 2.2.6. 6.
Nego Negoti tiat atin ing g cont contrac racts ts.. 2.2.7. Checking legal conditions of contracts. contracts. 2.2.8. 2.2.8. Issue of Purchase Purchase Orders.
2.2.9. 2.2.9.
Verifi Verificat cation ion and and passin passing g of suppli suppliers ers’’ bills bills
2.2.10. 2.2.10. Maintenanc Maintenancee of purchas purchasee records. records. 2.2.11. 2.2.11. Maintenanc Maintenancee of vendor performance performance records/d records/data. ata. 2.2.12. 2.2.12. Clearance Clearance of foreign foreign consi consignmen gnments. ts. 2.2.13. 2.2.13. Developmen Developmentt of reliable and alternate alternate sources sources of supply. supply.
2.3. CENTRALIZED PURCHASES 2.3. 2.3.1. 1.
As ever every y divi divisi sion onss has has a Purc Purcha hase se Depa Depart rtme ment nt,, all all purc purcha hase sess of stor stores es shal shalll be centralized in the interest of economy, uniformity and as a matter of policy since custodian and consumer should not be the same. Accordingly the purchase of office stationery, forms, liveries, furniture etc., shall be made by the Purchase Department and not by the administration sections. Transfer/adjustment of staff shall be made where necessary.
2.3.2. Local/cash purchase of stores shall continue to be made in exceptional cases by the Heads of Divisions/projects under their power but as far as possible Purchase Officer should be associated even while making such purchases.
2.4. VENDOR DEVELOPMENT AND VENDOR PRE-QUALIFICATION Pre qualified vendor list shall be maintained by purchase department. The vendor list comprise of all pre-qualified vendors under each category stating clearly the respective capability in terms of volume of work, specification, level of technology, etc with rating of the vendors. Addition/deletion to vendor's lists is made on a continuous basis on the above criteria. There are three types of Purchase Requisition (PR) as follows:
1. For proj project ectss and majo majorr capita capitall equipm equipment ent 2. For stores, stores, including including stationary stationary and and office supplies, spares
3 For Services.
43
PURCHASING DEPARTMENT ORGANIZATION RGANIZATIONAL AL CHART
MD
COO
BUH
BUH
BUH
PURCHASE MANAGER
PURCHASE MANAGER
PURCHASE CLERK
MD COO FM BUH
FM
PURCHASE MANAGER
PURCHASE CLERK
PURCHASE CLERK
– Managing Director – Chief Operating Officer – Finance Manager – Business Unit Head
44
3.
MARKETING DEPARTMENT
3.1.
Marketing Structure
MD
BUH
BUH
Marketing Executive
3.2.
Marketing Executive
MARKETING STRATEGY
Strate Strategic gic think thinking ing is key to the evolu evolutio tion n of succe successf ssful ul market marketing ing strate strategie giess of Arabia Arabian n Industries LLC. This involves the following analyses:
3.2.1.
STRATEGIC PLANNING
Evaluate current operations Examine competitor capabilities Forecast market trends Identify related markets and growth opportunities
3.2.1.1. UNDERSTANDING MARKETS : Strategic perspective of the market requires skilful analysis of the trend and how they affect the market size and demand for the firm’s product.
3.2.1.2.
FINDING MARKET NICHES :
Price, service, convenience and technology are some of the niches in Oman market.
45
3.2.1.3. Product and service planning Analysis of the customer’s demand and the supply, both of the firm and competitors, besides an analysis of the situation in which the customer prefer the product and services.
3.2.1.4.
Distribution :
Structural changes in inventory management, distribution patterns are some of the key factors which are affecting the distribution process process in the Oman market.
3.2.1.5.
Managing for result :
With pressure on costs, prices, and margins, marketers will have to make effective utilization of every baizas spent in marketing.
3.3.
AI LLC’S TRATEGIC PLANNING WITH THE PORTER 'S FIVE FORCES FRAMEWORK
Port Porter erss mode modell is base based d on the the insi insigh ghtt that that a corp corpor orat atee stra strate tegy gy shou should ld meet meet the the opport opportun uniti ities es and threa threats ts in the the organi organizat zation ion’s ’s extern external al enviro environme nment. nt. Especi Especiall ally, y, competitive strategy should base on and understanding of industry structures and the way they change.
Porter's Porter's Five Forces is a technique technique that enables better strategic planning in business . The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organization’s behavior in a competitive market.
A Porter's Porter's Five Five Forces is a techniqu techniquee that that enables enables better better strategic strategic planning in business . B
The Five Five Forces have have become become the defect defector or standard standard in in analyzing analyzing a company company's 's strategi strategicc position and its ability to generate-profits.
1. The rivalry between existing sellers in the market. 2. The power exerted by the customers in the market. sellers . 3. The impact of the suppliers on the sellers.
4. The potential threat of new competitors entering the market . 5.
The threat of substitute available in the market .
6.
46
Application
Mark Market et
oppo opport rtun unit ity y
asse assess ssme ment nt,,
comp compet etit itiv ivee
anal analys ysis is,,
and and
indu indust stry ry
blue bluepr prin intt
Benefits:
A comprehensive framework that leads to deep understanding of an industry and qualitative trends.
COMPETITIVE STRATEGY + SMART PLANNING + FLAWLESS EXECUTION = SUCCESS
ESOURCES DEPARTMENT 4. HUMAN R ESOURCES
4.1.
GENERAL INFORMATION
Human Human resour resource ce manage managemen mentt is one of the most most comple complex x and challe challengi nging ng fields fields of endeavor. It is considered to be the most expensive and important resource of every organization. In AI LLC the scope of Human Resource Department is very vast.
4.2.
OBJECTIVE OF HR DEPARTMENT
4.2.1.
To maintain the optimum manpower required to sustain the growth of Organization.
4.2.2.
To motivate & manage human resource and train them to ensure their personal and organizational development.
47
ORGANIZATION CHART OF HR DEPARTMENT
48
Administration Manager HR Manager HR Executive
Payroll Executive
HR Assistant
Payroll Assistant
HR Assistant
Payroll Assistant
49
4.3.
Functions of HR department.
4.3.1. Organizational human resource planning & development 4.3.2. Retirement & selection 4.3.3. Wage & Salary administration 4.3.4. Employee records maintaining 4.3.5. Performance appraisal 4.3.6. Welfare programmer 4.3.7. Job evaluation 4.3.8. Handling employee grievances 4.3.9. Handling the legal issues within & outside the Organization
4.4.
PROCESS OF HR DEPARTMENT
The human resource department has 3 blocks which are: 1. Establishment 2. Industrial relation 3. Welfare
4.4.1.
Establishment Section The main functions are:
4.4.1.1.
Recruitment & selection
50
4.4.1.2. 4.4. 4.4.1. 1.3. 3. 4.4.1.4. 4.4.1.5. 4.5.
Transfer, rotation and placement of employees.
Wage Wa ge and and sala salary ry admi admini nist stra rati tion on Performance Appraisal
Retrenchment
Well-being of the employee
The main objective of welfare measures is to maintain healthy working environment and raise the standards of living of employees which create loyalty to the organization among the employees.. Arabian Industry has always maintained very healthy welfare measures. Statutory scheme Agreement scheme
4.6.
Following are the various facilities provided by Arabian Industries LLC to their Employees. 4.6. 4. 6.1 1
Stat St atut utor ory y and and Ag Agre reem emen entt sch schem emee
1. Paym Paymen entt of of grat gratui uity ty 2. Heal Health th,, safe safety ty,, wel welfa fare re 3. Tran Transp spor ortt faci facili liti ties es 4. Unifor Uniform m & foot footwea wearr to the worker workerss 5. Leav eave & ho holida liday ys 6. Reti Retire remen mentt ben benef efit it fund fund 7. Loca Locall trav travel el exp expen endi ditu ture re 8. Conv Convey eyan ance ce Allo Allowa wanc nces es
9
4.6. 4. 6.2 2
Special vehicle loan & Leave travel concession
Volu Vo lunt ntar ary y Schem Schemee and Inc Incen enti tive vess schem schemee
4.7.
1.
Free Free foo food d and and acc accom ommo moda dati tion on for for the the wor worke ker r
2.
Production incentives & Business incentives
3.
Grou Group p pers person onne nell acci accide dent nt insu insuran rance ce sche scheme me
4.
Vehicle loan & Sports & Recreation
5.
Incentives for employees & Suggestion scheme Industrial Engineering
51
The main objective of this section is to make effective utilization of the manpow manpower er resour resources ces and and restru restructu cture re it for the benefi benefitt of the organization. The main functions are:
1.
Manpo Manpowe werr plan planni ning ng tha thatt comp compos oses es of of Manp Manpow ower er aud audit it
2.
Cust Custod odia ian n of manp manpow ower er inve invent ntor ory y
3.
Remo Removi vin ng sys syste tem m bot bottl tlen enec eck ks
4.
Mai Maintenance sc scheduling
5.
Work environment study and Employee problem analysis
4.8.
Administration wing
The wing is headed by Ad. Manager and maintains orderliness in internal affairs of the department. The main functions are:
4.9.
1.
Chec Checki king ng the the perf perfor orma manc ncee of of each each empl employ oyee ee..
2.
Cons Consol olid idat atin ing g the the repo report rtss of diff differ eren entt HR sec secti tion onss
3.
Act Act as a link linkin ing g chai chain n bet betwe ween en dif diffe fere rent nt sect sectio ions ns
4.
Offi Office ce and and adm admin in work work of HR depa depart rtme ment nt Recruitment Policy
The Recruitment policy is done as per prescribed recruitment specification with proper authority appointed by Board of Directors.. The following are the sources of recruitment.
1. Confirmed Confirmed employees employees within within the the division division or compan company y 2. Recrui Recruitt qualif qualifies ies cand candida idates tes from from out out side side
4 FUNCTIONAL INTERDEPENDENCE OF DEPARTMENTS
52
5.1 Finance & Materials
Finance department procures fund for production and accounts for it. With these funds materials are brought. During purchase the company has to enter into contract, give letter of credit and other necessary documents, which is done by the finance department for procuring materials Manufacturing, Marketing, Materials and finance
Manufacturing department will product the items to be produced and Marketing department helps to canvas business and such way finance dept. can raise the fund required by the Company as a whole. Materials department supply the materials to the manufacturing unit. Finance and Production
Produc Productio tion n target targetss are made made on the basis basis of financ financee budget budget which which checks checks the econom economica icall feasibility of the plan and finance budget cannot prepared without knowing the production plan. Quality & Marketing
Quality preserves the customers delight by ensuring the quality of the product produced and services rendered to the customers. QA and QC department will counter checks all the quality. They further goes to the workshop and check the products whether it reaches the market safely with quality. H.R Department
H.R department ensures the development of human resource and its productive utilization by directing it in the right channel.
IT Department
53
The department enhances inter-departmental and intra-departmental flow of information and speedy speedy data processing. processing. Data access is controlle controlled d within within and between departments. Constant updating is done to catch up with the modern developments. “All departments are interdependent and interrelated to each other for their functioning. One department cannot operate without the absence of the other. The performance of the company depends on the interdepartmental functioning functioning rather than the department wise functioning”
SALES AND MARKETIN G
Maintenan ce
FINANCE DEPARTME NT
PURCHA SE
IT Departmen t PROJECTS Manufactur ing
CHART OF FUNCTIONAL INTERDEPENDENCE OF DEPARTMENTS
54
Chapter 5
SWOT ANALYSIS
4.1 SWO SWOT T ANALY ANALYSIS SIS
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,
55
opportuniti opportunities, es, and threats threats. Strengths Strengths and weaknesse weaknessess are internal internal factors. factors. Opportuni Opportunities ties and
threats are external factors.
AIM OF A SWOT ANALYSIS
A.
•
Reveal the competitive advantages of the firm.
•
Analyze the prospects for sales, profitability profitability and product development development
•
Prepare the company to overcome problems
•
Allow for the development of contingency plans
STRENGTH •
A leading EPC Contracting, Manufacturing and Maintenance Company specialized in design, engine engineeri ering ng,, projec projectt constr construct uction ion,, fabric fabricati ation, on, and mainte maintenan nance ce activi activitie tiess in Oil Oil & Gas, Gas, Refineries, Petrochemicals and Power sectors.
•
20 Years prolonged execution and experience with Petroleum Development Oman, Oman Gas Company, Oman Refinery, Petrochemical and Power sectors in Sultanate of Oman.
B.
•
Well facilitated Workshops at Rusayl & Sohar Industrial Estates.
•
Advanced and modified Equipments to meet the progressive requirements in the field.
•
Experienced and long term serviced management and employees
•
Stable and Concrete Fund Flow. & High profiled and empowered shareholders.
•
Heavy investment on Manpower and machinery
WEAKNESS •
Lack of self motivated technical-know-how that leads to depend on other establishment for consultancy.
56
•
Un-availability of local manufacturers for specific materials and equipment requirements. •
Unstable Unstable technical technical staff movements movements due to the exorbitant exorbitant manpower manpower requirements in the market.
•
Insufficient deployment on marketing.
•
Lack Lack of acco accoun unta tabi bili lity ty of mana manage gers rs and and emplo employe yees es to achi achiev evee clea clearr and and meas measur urab able le performance levels.
C.
D.
OPPORTUNITY •
Stable growing and requirements in Oil and Gas field
•
Progressive development of Petroleum Development Oman
•
Enhancement of Refinery activities all over the Sultanate of Oman.
•
Government funding on future developments
•
Availability of information about best practices in human resources.
THREATS •
Booming investment by the foreign establishments creating stringent competitive market.
•
Unanticipated intervene on investment by the Government
•
Deficit utilization of huge invested fixed assets due the variation of awarding and duration of contracts
•
Insufficient room for allotment of establishment costs in case of idle periods.
•
Financial recession on world economy.
•
Other Organizations may attract employees and business away from this industry.
57
CHAPTER 6
FINDINGS, SUGGESTIONS & CONCLUSION
12.2 ABOUT THE STUDY
This study was conducted for the Operational, Operational, Financial, Marketing and Sales at it’s Head office at AlKhuwair , Maintanance and Fabrication at it’s Rusayl Rusayl and Sohar work shop. Arabian Industry Industry has 12
58
main main depa depart rtmen ments ts and and are are inte interd rdep epen ende dent nt and and inte interr depe depend nden ence ce on each each othe otherr as show shown n in Organizational chart and inter dependence of departments chart..
To conduct the study, Arabian Industries LLC has divided into 6 major divisions:-
1- Operational division 2- Finance divisions 3- Maintenance division 4- Fabrication Division 5- Sales and Marketing division. 6- Administration and HR Division.
12.3
FINDINGS
After spending two weeks at Arabian Industries LLC, my major finding in that organization is as follows:
12.3.1 Being a large business unit, all the departments are well organized and managed by different managers, and all the departments are functioning very well and active.
12.3.2 The organisation structure is divided in to several units like Finance, Marketing, Operation & Quality, Human and Resources etc… These all departments are headed by different head units but at the same time they work for same objective with full co-ordination which shows the unity level about the organisation.
12.3.3 During the study, it was found that it is indeed a healthy organization with a lot of well unique functions. This organization basically being an engineering industry, it has a large investment and a large number of people working in it and there is a well established
59
organizational structure with the top level management, the middle level management and the bottom level management.
12.3.4 All departments in the Company are certified to ISO 9001 and regular internal and external audits are conducted to check the compliance and renewal of certificate. There is a full swing total quality management system and it works efficiently and ensuring the total quality of the organization and it’s product and services.
12.3.5 In the company’s system of materials management, there are very less chances of damaged goods and scrap items being raised. The company takes necessary steps to see that no items become scrap in the store and damaged goods doesn’t come in and go out of the company.
12.3.6 The The fabri fabrica cati tion on and and mfg. mfg. depa depart rtme ment ntss are are well well equi equipp pped ed with with all all the the nece necess ssar ary y requ requir irem emen ents ts and and ther theree is well well func functi tion onin ing g tool tool room roomss whic which h care care to the the need needss manufacturing and fabrication. There is also effective scrap management functions carried out to the utmost profit of the company.
12.3.7 12.3.7 All the employe employees es and labour labourers ers work very hard towards towards achievi achieving ng the goal. goal. Even the higher authorities work very hard without wasting time towards the organization goal
12.3.8 An organisation study also makes me learn that any objective cannot achieve with a short span of time it has to be done through systematic ways. Finally, in any organisation time management play important role because each activity should be done at a right time at right place.
12.4 SUGGESTIONS 12.4.1 One important suggestion is that more care and concern should be given to the clients to retain the trust of existing valued customers.
60
Advertisement ment like exhibitio exhibitions ns do not helps Arabian Arabian Industry Industry to 12.4.2 Advertise generate so much of business, but they also should be participated in all exhibitions to generate customer awareness regarding their entire operations.
Company y shoul should d try to improv improvee techni technical cal servic servicee after after the instal installat lation ion of all it’s it’s 12.4.3 Compan manufa manufactu ctured red items. items. No doubt doubt the compan company y produc products ts have have techni technical cally ly edge edge over over compe competit titors ors but in long long run they they have have to build build strong stronger er strate strategie giess in markin marking g their their products..
12.4.4 Company is hiring lot of heavy equipments for the completion of the jobs in time. It is advisable that, If they would purchase more heavy equipments like heavy duty cranes and excavators, they would be in a position to make more profit..
12.4.5 12.4.5 During During the study, study, it is noticed noticed that, open open purchase purchase orders orders are issuing issuing for the purchasing purchasing of of materials. Open purchase orders are the order with no value. This may leads to malpractice and it should be discontinued immediately.
12.4.6 Another important matter which was noticed, in rare cases purchase orders are issuing after the supply of materials. This practice also should be discontinued So that the chances of mis- appropriation can be controlled to a grate extent.
12.4.7 An important area which is to be taken more care is the awarding of sub contract works. It is advisable that, the company is in a position to execute the same job which is sub contracting, profit earning can be increased to a grate extent.
12.5
CONCLUSION.
61
The study in Arabian Industries has enabled me to understand the various needs of an organization, how an organi organizat zation ion of a corpor corporate ate nature nature functi functions ons and how importa important nt it is to have have a right right relationship between the employee and employer or the management.
Training in Arabian Industries LLC, will help the trainee to understand the various needs of an organization, how an organization of a corporate nature functions and how important it is to have a right relationship between the employee and employer or the m anagement.
The study was conducted with with a view to understand the functions functions of an organization, and its various various department. During the course of study I was successful in achieving these objectives and could familiarize with an organization and its environment. “This study has improved my confidence by its successful completion to undertake such studies in the future.”
62
