report of inventory management on k.e.s.c

Inventory Management of K.e.s.c.

Institute of Business & Technology (IBT)

Organization: Karachi Electric Supply Company

(K.E.SC.)

Course Name: Operations Management

Instructor Name: Sir Waheed Ahmed

Course Code: MGT-302

Semester: Fall-2013 Batch B.B.A (Hons.)

Group Members:

1. Sumaira Gill BB-2407

2. Maaz-Uddin BB-25227



Acknowledgement

First of all, we are thankful to Almighty Allah (The most gracious

a d the ost po erful, the k o er of hat’s see a d u see ), for giving us the courage and power to learn and to apply our

knowledge for the benefits of mankind.

We would like to express profound gratitude to our instructor

or teacher Sir Waheed, for their support, encouragement,

supervision and useful suggestions throughout this project work.

We would not have been able to finish this wonderful project

without his support and guidance. Thank you for patiently

guiding us throughout this project and motivating us to work at

our best. Group members are Maaz Uddin and Sumaira Gill.



Introduction of the Organization

Karachi Electric Supply Company (K.E.S.C.) generates and supply

electric power to Karachi, a metropolis with a population of over 17

million, one of the highest population city of Pakistan. Karachi is also the

financial capital and the industrial hub of Pakistan. By efficiently

providing electricity; K.E.S.C. ensures that the engines of country

continue to run smoothly. K.E.S.C. a company that has the most

employees in it: counting up to roughly 11000 people working for the

o pa . It s also one of the oldest companies in Karachi, which was

established in the city even before the creation of Pakistan in 1947.

Incorporated on September 13, 1913, under the Indian Companies Act of

1882, the company was nationalized in 1952 but was re-privatized on

November 29, 2005. K.E.S.C. came under new management in

September, 2008; a significant number of professional managers with

experience in running utility that the company needs to run. K.E.S.C. is

listed o all th ee of Pakista s sto k e ha ges: the Karachi Stock

Exchange, the Lahore Stock Exchange and the Islamabad Stock Exchange.



Vision

To esto e a d ai tai p ide i KE“C, Ka a hi a d Pakista .

Mission

Brightening lives by building the capacity to deliver uninterrupted, safe

and affordable power to Karachiites.

Values

We BELIEVE

We speak as a professional, committed to helping the customer. As an

organization we have a long way to go to provide the service we all

deserve, so we cannot boast. We can do what we say we will do. Be

accountable and continue to do better.

We are TRUSTWORTHY

We speak simply, but never patronize. Long and complicated

explanations are confusing and can appear as if we have something to

hide.

We are OPEN

We speak clearly and concisely. If the customer needs our assistance, or if

e eed to gi e the I fo atio , e do t aste thei ti e. We tell the t uth a d a e o pletel ope a d t a spa e t. B e plai i g the good and the ad , e a gai the usto e s t ust a d espe t. We al a s ask for their involvement, never demand it.



We are DEPENDABLE

We can be relied upon to do the right thing by everyone we come across

and act in a responsible manner to people, places and the

environment.

We think about YOU

We take time to listen to you and understand your needs. You are at the

heart of what we do. We speak with a welcoming human smile in our

voice. A conversation that begins this way shows that we are

approachable and are here to help the customer.

K.E.S.C.’s isio is based o the follo i g four pillars:

Thought Leadership

Knowledge Based Learning

Values

Social Responsibility

Role of K.E.S.C:

K.E.“.C. is p i a il espo si le fo suppl i g ele t i it to Ka a hi. It s currently providing electricity to Karachi not only, but also in the towns of Dhabeji

and Gharo, which are located in the province of Sindh and Hub, Uthal Vindhar and

Bela in the adjacent province of Balochistan.



The power station located at Bin Qasim is one of the biggest and the main

sou e to ge e ate ele t i it of Ka a hi ele t i suppl o po atio . K.E.“.C. s fleet has 1890 megawatts of installed capacity to cater to the cit s load e ui e e ts. The main generation units are the plants located at Bin Qasim Power Station,

Korangi Thermal Power Station, Site Gas Turbines and Korangi Gas Turbines, and a

new power plant at Korangi (Combined Cycle Power Plant).

K.E.S.C Working Mechanism:

K.E.S.C. is replacing existing old Korangi and Site Gas turbines by new gas

engines to increase the operational capacity and efficiency. Currently another

Combined Cycle Power Plant of 560 megawatt is under implementation at Bin

Qasim Site. K.E.S.C. also imports power from Independent Power Producers,

Wapda and Captive Power Plants to offset the deficit of demand-supply gap.



Distribution:

The modern distribution system begins as the primary circuit leaves the sub-

station and ends at the se o da se i e, he e it e te s the usto e s ete socket. A variety of methods, materials, and equipment are used among the

various utility companies. K.E.S.C.'s Distribution department is responsible for

lighting up the 11th

largest metropolitan area of the world. This makes it one of the

largest electricity distribution networks in the world. Electricity distribution is the

fi al stage i the deli e of ele t i it to e d0use s. A dist i utio s ste s network carries electricity from the grid station and delivers it to consumers.

Augmentation and expansion of outdated and fragile distribution network has

always been among the priority areas of the management in order to facilitate

valued consumers of the company by providing uninterrupted supply of electricity.

Team of K.E.S.C.:

Tabish Gauhar is the chairman of KESC. He has served as an Executive Director at

Abraaj Capital since 2006 and is the former Group Chief Financial Officer for

Europe, Middle East, Africa (EMEA) at AES Corporation, the leading global power

company. Tabish Gauhar was at AES for over six years.

Overall, he has sixteen years experience in the energy sector in Pakistan and

regionally and led the management team that oversaw the acquisition of Abraaj's

stake in KESC in 2008. He has been on the Board of Directors of the utility from

earlier this year and serves on its Executive Committee also.



Nayyer Hussain is the newly appointed CEO of KESC. He has been serving on

o pa s Boa d of Di e to s si e 2009. He as pa t of the i itial tea that took charge of operations of KESC and assumed the responsibility of Chief Distribution

Officer in early 2010.

During his tenor as Distribution Chief, Nayyer led the implementation of major

turnaround strategies within the distribution and other key areas of the business,

which has helped the company to deliver profitability and significantly reduced

Transmission and Distribution losses. The distribution function, under his

leadership, achieved major milestones including infrastructure rehabilitation,

enhancement and visible customer service improvements.

Before joining KESC team, Nayyer was associated with the Abraaj Group. He has

over 20 years of rich international experience in distribution, risk management and

retail banking working with large global institutions like Citigroup. Nayyer, a

graduate from Boston University, hails from Karachi.

Eram Hasan -Head of Supply Chain.

Mr. Eram Hasan joined KESC in 2010. He has over 16 years of international general

management experience. While at Abraaj, he has worked on several turnaround

projects in partner companies. Before joining Abraaj, he was with The Coca-Cola

Company, where he was the Chief Operating Officer, for the Pakistan bottling

business, responsible for Sales and Supply Chain. Prior to this, he worked with

Unilever as the Head of Sales and Supply Chain. Eram, has also put in ten years

with Alcoa, USA, in different corporate and line roles.

He holds a MBA and a MS in Materials Science and Engineering



S. No.

Name of Power Plant

Location Installed Capacity (MW)

1 Bin Qasim Power Station

Port Qasim Industrial

Area

1260

2 Korangi Thermal Power Station

Korangi Creek

125

3 GEJB- 1 SITE, Karachi 88

4 GEJB- 2 Korangi Industrial Area

88

5 Combined Cycle Power Station

Korangi Creek

220

6 560 MW BQPS2 Port Qasim Industrial Area

560

GRAND TOTAL 2341



Key Status Key Status

Grid Stations

60

Transformers

Transformers Pole mounted S/S

15,233

220 KV/ 132 KV

12 Feeders 1,302

132 KV/ 66 KV

2

132 KV/ 11 KV

124 Power Lines

66 KV/ 11 KV

3

Total 141 11 KV 7,096 km

Power Lines 0.4 KV 11,718 km

20 x 220 KV Lines

338 km

98 x 132 KV

760.99 km

3 x 66 KV

149 km

Total 1248.41 km

Total 18,814



Products in Inventory:

There are total 2500 items in inventory of K.e.s.c.

PVC copper wire l.t, h.t,

Armored wire h.t.

Unarmored wire l.t

Pole h.t

Latice l.t, h.t.

Insulators

PVC tapes

Aluminium wire dog h.t and rabbit l.t

Binding wire

Iron stirps

Bolds

Anit Pearching Bracket

P.M.T. 50, 100, 500, 1000 K.V.

Meters machines

Grids Machine



K.E.S.C. Vendors:

Pakistan Cables

Allied Cables

Universal Cables

Fast Cables

Syed Brothers

Seimens Pakistan Pvt. Ltd.

Pel (Pak Electron Ltd.)

Harbin Electric

Greaves Pakistan

Micro Tech Industries

Pioneer Cables

Guandong Neo Nanda (Chinese Cables manufacturer)

Integrated Systems Pvt. Ltd.

Mass Trader

Al-Abbas Cement



Inventory Management Working :

Supply Chain

Inventory Management

Recieving Inspection Procurment Disposal



Stores or Warehouses:

Central Store S.I.T.E. Area

T.S.W. P.M.T. Repair and maintenance

Baldia Scrap Yard

Landhi Cable Yard

M.T. store quamabad

Sub Stores:

Landhi

Gulshan Iqbal

Saddar

Liaquatabad

Gadap

Surjani

Gulistan e Johar

Bin Qasim

Nazimabad

There are total fourteen sub stores of K.E.S.C.

Hussaini Contractors are providing loading and transportation facilities

to K.e.s.c. for its machinery and equipment available in stores.



Regions of Karachi for K.E.S.C:

R1

R2

R3

R4

These regions are cables lines going underground and over head for high

tension cable lines and low tension

Software Use for Inventory Recording:

SAP (System Application Product) is used by K.e.s.c. and they have generates

terminologies for inventory management

G.R.N.

Gate Pass

Debit Note

Credit Note

DTN.

Stock Card( Manual)

Bin Card(Manual)

Purchase Order

Purchase Order Number

Material Request

Buffer Inventory



Inventory management department have authorization on limited scale of

fields there are 238 movement types or levels of sap in k.e.s.c and inventory

management. But Inventory department have only authority for 20

movement types or levels.