wali shah thesis
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1.1 An Introduction & History of Clariant Pakistan Limited.
Clariant is a leading global specialty chemicals company with morethan 32,000 employees and annual sales of about CHF 10-13824. The young company has grown out of the Sandoz Chemicalsdivision, which was floated on the stock market as a spin-off in thesummer of 1995, and the Hoechst specialty chemicals businesses,integrated in the summer of 1997. Clariant operates worldwide withmore than 100 group companies in five continents. It is domiciledand headquartered in Muttenz near Basel/Switzerland.
1.2 Corporate Governance
Value-driven and transparent management is the foundation for asuccessful business. At Clariant, this is reflected in a responsible andefficiently structured organization, in its management, and incontrol process.
1.2.1An Introduction & History of Clariant Pakistan Limited.
Clariants business policy is aimed at ongoing value enhancement.The focus is on the companys long term success and not on shortterm opportunities. Priority given to trust based relationship withshareholders, customers and suppliers, to employee satisfaction andto a sound reputation with public and private institutions and amongthe general public.
As proof of its commitment, fairness and responsibility as a businesspartner, Clariant has established an efficient and transparent
division of tasks and responsibilities, effective control instrumentsand an open information policy.
1.2.2Constant Improvement
Clariant participated in the drafting of the Swiss Code of BestPractice for Corporate Governance, initiated by economiesuisse, in
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order to benchmark its own organization against tried and provenrules and practices, and to optimize these where possible.
1.2.3Full Responsibility at Market Level
Clariant has created a decentralized and lean managementstructure in order to streamline operational decisions, bringing themclose to the market. The five operating division bear fullresponsibility as profit centers, within the budget framework set bythe Board of Management and in line with the targets of the
corporate strategy. Individuals with managerial responsibility aresupported by specific guidelines and an array of corporate analysisand control instruments.
Decentralized responsibility also plays a role in Clariants success-related remuneration program. Around 650 managers participate inthe process of the value creation and benefit from the companysadded value through a share programmed based on theachievement of specific financial targets.
1.2.4Professional Management and Control
All members of the Board of Directors have a proven track record interms of their professional and strategic competencies. To help hemassess the companys potential realistically, most of them also havemany years of executive experience gained with other companies.
Through its committees, the Board of Directors analyzes current andfuture market opportunities and risks in order to define Clariants
corporate vision as well as its business, organizational and financialstrategies. As the supreme control body, it monitors the Board ofManagements implementation of its targets.
1.3 Full Responsibility at Market Level
Clariant:
Financial basis secured andstrengthened. Clariant is back and
2005
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competing with the best in theindustry.
Disposal of Electronic Materialsbusiness. 2004
New business strategy focused onleading-edge technology andinnovations with superior.
2003
applications and customer servicesskills. Comprehensive transformationprogram started to restore
profitability and increase financialstrength. Disposal of cellulose Etherbusiness.Acquisition of BTP plc.
2005
2000
Merger Clariant HoechstSpecialty Chemicals
1997
Foundation of two jointventures in China and thestart of construction work forthe plant in Tianjin.
1996 Paper Chemicals integratedinto the Division. Printingplats sold to Agfa.Acquisition of the pigmentsbusiness from Cookson/USA.Foundation of joint venturesin China (Masterbatches:Guanzhou; Pigments:Tianjin)
Demerger of SandozChemicals Division by theEstablishment of Clariant Ltd.
Muttenz, as an autonomouscompany listed on the stockexchange.
1995
1994-
1996
Further restructuring andreorganization of theHoechst Specialty ChemicalsDivision: Textile Dyestransferred into the jointventure DyStar (with Bayer
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AG.
The master batches business
sector achieves strategicmass by acquiring spectrumcolours (USA).
1993
The chemicals divisionbecomes an independententrepreneurial unit withinthe Sandoz Group.
1990
Takeover of Emacolor(Belgium) secures leading
position in master batches forsynthetic fibres.
1989 Formation of StrategicBusiness Units.
With the acquisition of ReedPlastic Corp., USA, Masterbatches gains foothold on USmarket.
1988
Further takeovers and plantsopened in Spain (S.A.Cardoner), US (Sodeyco, Inc.;Reed Plastics (Corp).,Germany (K.J. Quinn GmbH),Italy (Sarma S.p.A), Brazil(Rioquima,), Mexico(Sulcolor), Belgium(Emacolor) and UK (MercuryPlastics).
1957 Development and productionof reactive dyes.
Production of pigments andadditives in Huningue(France)
1956
Sandoz Hoechst Specialty ChemicalStart of production at Muttenzplant near Basel(Switzerland).
1948
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1932 Development of celluloseethers.
Production of leather dyesbegins. 1931
Business expanded to includetextile chemicals.
1926
Diversification into dyes andchemicals for paper.
1919
1911-
1925
Successful R&D in varioussegments of organic colorchemistry, development ofhigh-quality dyestuffs with abetter resistance against
heat, water and sunlight.1904 Corporation of dyestuff
makers Farbwerke Hochstand Casella.
Sandoze Hoechst Specialty Chemicals_____1897 Introduction of a new
economic Indigo productionprocess.
Sandoz begins producingtextile dyes in Basel,Switzerland.
1886
1880 Sulfer dyes plant in FrankfurtHoechst
1878 Production of Azo dyes andrelated intermediates.
1863 Hoechst starts production of
Fuchsin dye.
1.4 Vision, Mission and Values
ClariantVision
We aim to be leading service-driven company and thepreferred partner in the specially chemicals industry.
ClariantMission
Our commitment to service contributes to the successof our customers. We combine leading-edgetechnology and innovations with superior applications
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and customer service skills.
Clariant
Value
Customer
Focus
We concentrate our efforts on the
individual requirements of ourcustomers and help them strengthentheir competitive position andperformance.
PersonalEngagement
We achieve results through individualcommitment, continual skillsdevelopment and entrepreneurialbehavior.
Team
orientation
We rely on the strength of teamwork to
achieve synergies and realize our fullpotential.
Innovation We utilize our extensive know-how andexperience throughout the company tocontinuously bring new services,applications and products to the market.
Shareholdercommitment
We strive for enduring value creation forthe benefit of our shareholders.
Integrity We are a trust worthy, loyal andrespectful partner in all our internal andexternal relationships.
Sustainability
We contribute towards sustainabledevelopment by finding the best balanceenvironmental, social and economicneeds.
1.5 Clariant at a Glance
Clariant is a global leader in the field of specialty chemicals. Strongbusiness relationships, commitment to outstanding service andwide-ranging application know-how make Clariant a preferredpartner for its customers.
Clariant, which is represented on five continents with over 100group companies, employees about 25,000 people. Headquartered
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in Muttenz near Basel, it generated sales of around CHF 8.5 billion in2004.
Clariants businesses are organized in five divisions:
1. Textiles Leather & Paper Chemicals2. Pigments & Additives,3. Functional Chemicals4. Life Science Chemicals5. Master Batches
Clariant is committed to sustainable growth spring from its owninnovative strength. Clariant innovative products play a key role inits customers, manufacturing and treatment processes or else add
value to their end products. The companys success is based on theknow-how of its people and their ability to identify new customerneeds at an early stage and to work together with customers todevelop innovative, efficient solutions.
1.5.1Textile, Leather & Paper Chemicals
Profile: The division is one of the worlds leading suppliers ofspecialty chemicals and dyes for the textile, leather andpaper industries. Textile dyes include dispersion,reactive, acid and sulfur dyes. The textile businessencompasses special chemicals for pretreatment, dying,printing and finishing of textiles. Optical brighteners andchemicals for functional treatment are also part of therange. The paper business supplies paper dyes, opticalbrighteners and process and pulping chemical. Theleather business produces chemicals for refining. Itsoffering includes all chemicals for finishing and dyeingas well as complete range of wet-end chemicals.
Business TextilePaperLeather
Markets: Clothing, home textiles, technical textiles, garmentleather, automotive leather, paper packagingconstruction.
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Productsand
Services
UV absorbers, fluorochemicals, paper dyes (Cartasol), disperse dyes (Foron ), reactive dyes (Drimarene
), Optical brighteners, and water, oil and dirt repellantequipment.
1.5.2Pigments and Additives
Profile The division develops and produces pigments for paintsand lacquers, for plastics and for special applications.The product range includes high-performance pigmentsto meet the exacting demands of the automotive andelectronics industries printing, pigments are supplied to
the printing ink industry and, increasingly, for nonimpact printing, ink jet and laser printing. The corebusiness also includes additives to improve heatresistance as well as light and weather resistance ofplastic and paints. Halogen free flame retardants areused in protective coatings, resins, thermoplastics andpolyester fibers. The divisions portfolio also includeshigh-quality waxes based on various raw materials.
Markets Paints, lacquers, coatings, plastics, automotive industryProductsandservices
Hostaperm pigments, PV Fast, Graphtol,Novoperm Pigments, Reflex Blue grades, Exolith,Ceridust, Licocence, DPP pigments, luminum paints.
1.5.3Functional Chemicals
Profile The divisions products are based on surfactants andpolymers. The Detergents Business, which offersanionic and cationic surfactants, as well as bleachactivators, is a partner to the detergent industry.Performance Chemicals supplies such different
industries as personal care products, crop protection,paints, lacquers and plastics, The Process ChemicalsBusiness markets products and services for theproduction and refining of oil and natural gas and formetalworking, mining and the aerospace andautomotive industry.
Business -Detergents
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es -Performance Chemicals-Process Chemicals
Markets Detergents, rinses and cleaners, personal care
products, aerospace, automotive and machine tools,crop protection, paints and lacquers, plastics,construction, oil and gas extraction, mining,pharmaceutical industry, chemical industy.
Productsandservices
Anionic, nonionic and cationic surfactants (Genapol ,Hostapur SAS, Emulsogen, Prapagen,Genamin), polymers and preservatives, Safewing,Safeway, Dodiflow, Peractive.
1.5.4Life Science Chemicals
Profile The division has two Businesses: pharmaceutical FineChemicals and Specialty Fine Chemicals. ThePharmaceutical Fine Chemicals Business is a servicepartner for the lunch of new drugs and suppliescustomer-specific late-stage intermediates with highdegree of synthesis, patented active ingredients andaround 30 different generic active substances.Specialty fine chemicals covers a wide range ofindustrial applications with its silane derivatives,glyoxalic acid derivatives and diketenebasedchemicals. it also supplies precursors and activeingredients for crop protection agents.
Business -Specialty Fine Chemicals-Pharmaceutical Fine Chemicals
Markets Pharmaceutical and agrochemical industry. Industriessuch as coatings, plastics, fragrances and flavorings
Productsandservices
Pharmaceutical and agrochemical active ingredients,precursors, building, blocks, Life Science MoleculeSynthesis Center
1.5.5Master Batches
Profile The division supplies color and additive concentratesand special mixtures of these components. Thecombination of worldwide presence and strong localpartnerships makes Clariant a preferrend supplier forplastics processors and the textile industry. At the locallevel, each of the divisions 54 production plantsprovides a complete technical service for all products
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and applications.
Businesses
-Europe North-Europe West-Europe South-Special Markets- Asia-North America-Latin America
Markets Consumer Goods, Automotive, Packaging, Textiles & Technical Fibers, Electrical & Electronics, Medical
Devices
Productsandservices
Cesa, Hyderocerol, Remafin, Renol,Omnicolor, Color Works, Enigma.
On May 21, 1963 Sandoz Pakistan Limited was corporate as whollyowned subsidiary of Sandoz Limited Switzerland with intention ofestablishing a pharmaceutical manufacturing of Dyestuff textilechemical and agrochemicals in august 1965 the company waysconverted in to a public limited offering 25 % shares to the Pakistanipublic this making a locals investment of 4,000,000 amongst theshareholders there are many members of medicals professionpeople connected with the pharmaceutical trade.
According to personal & Admin Officer, the company has doneconsiderable research and development work in the chemicalmodifications Sandoz factory situated at Sandoz 0 Acres of land.
1.6 De-Merging of Pharmaceuticals, Dyes Stuffs andChemicals.
In 1995 the Chairman of Sandoz International, Mark MoreDemanded to merge the Sandoz in two portions, pharmaceuticalsDivisions and dyes stuffs and chemicals division. It was a logicalstep for the Sandoz dyes stuffs chemical manufacturers.
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To take up this separate division of dyes and chemicals because it istotal different from the pharmaceuticals the material are measuredin grams while in the dyes and chemical stuff the materials are
measured in the tons.
The Clariant has been acting as a public limited company since 3October 1996. The progress was made in this field in the field ofpigment Clariant specially prepares pigments. Which give a varietyof uses of coloration of plastic mfg. of inks emulations etc. (ZafarManager Admin)
1.6.1Clariant Merging with Hoechst:
According to Annual Report 2004, the Clariant limited Muttenz
Switzerland and Hoechst AG Frankfurt Germany have entered into ageneral agreements with intention of combing their respectivespecial chemicals business with its own activities and integrate it inexchange Hoechst Limited. Clariant will remain headquarter inMuttenz.
1.6.2 Clariant Pakistans Division
According to Director Production there is two divisions of Clariant,viz Dyestuffs and Chemicals.
1. Dyestuff
The original field of activates do Sandoz was the production ofdyestuffs for the textile industry. The first of July 1896 saw thecommon cement operations in the Basle of small factory it istrue to day color have never figured so largely in daily life as itdoes today 50 many materials beside textile are alleys orcolor. Sandoz limited Basle is spending 634 million SwissFrans annually for research.
2. Chemicals
In textile production chemicals are used to prepare the goodsfor dying and finishing intensive research over many yearshas resulted in a range of reduction which beside dyingassistants (I young, Senatobia) include production moregeneral employment in the textile leather and paperindustries years back the chemical activities performed inseparated chemical department.
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1.6.3Clariant Pakistans Production Plants.
According to Production Manager, the Clariant Pakistan Limited has
three major manufacturer plants.
1. Karachi2. Jamshoro3. Lahore
As the Clariant is, the multinational corporation the consistency isquality is very firmly examined. After merging the Hoechst, nowthese have become five industrial cities as indicated in thecomments reports in 1999.
Industrial City Production
Karachi Leather, Textile Master Batch
Kasur Leather
Faisalabad Textile
Sialkot Textile, Dyes, Chemical Leather
Lahore Leather, master Batch
1.6.4Branches of Clariant in Pakistan
As mentioned by personnel & Admin Officer, the Clariant PakistanLimited Head Office situated in Karachi with three regional plant atKarachi, Jamshoro, Lahore, after merging with Hoechst these havebecome five regional plants, plant Karachi, Jamshoro, Lahore andSheikhupura.
The Jamshoro site is the main and mother site, produce dyesand chemicals for textile and leather.
The two plants of Karachi produce the master batches plasticpigment
The Sheikhupura plants produces the polymers PVA.
The leather plants the same production of dyes and chemicalsproduces as in Jamshoro.
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1.7 Objectives of Organizations
Every organization has some basic objectives. The objective may beearning profit-rendering service to the community, employment ofcapital employment of labour etc.
Clariant limited develops manufacture and market dyes pigmentsadditive master bat chess and specially chemicals for dying andfinishing textile paper leather plastic and aluminum as well as forpaints and inks.
Clariant supreme objective are two grow and create benefit for itsshareholders and customers to achieve these goals.
To establish technological leadership
Customers focus world wide
A comprehensive services
A growing presence in the emerging Asia-Pacific Market.
The innovates focuses on the genuine improvement in significantgrowth segment containing costs and lifting profit ability are animportant focus steady growth in earning in the key of furtherexpansion and hence the creation of new jobs.
1.8 Purpose of study
The study is part of the educational activity in BBA program andconducted by Prof: Noor M. Jamali Professor of BusinessAdministration and Dean Faculty of Commerce, University of Sindh,
Jamshoro. The purpose of the study is to teach the students, how todevelop the Internship regarding to any specific topic and what arethe principles of developing the paper on such topic.
The purposes of Internship at Clariant Pakistan are as under:
It is partial requirement of MBA program.
To learn and understand practical knowledge
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To know the problems and activities of the manufacturing of a
multinational industry.
To understand the business environment as well as tolls to
handle the firm business effectively.
The internship report focused at study the role, performance and
important of the Clariant Pakistan Limited in the development
and growth of economy of Pakistan. To learn and method of gathering information needed, to put
them in organized manner.
To learn and understand practical knowledge.
To understand the objective function, and service provided by
the organization.
1.9 Method of Study
There are various methods of conducting research studies.According to Zikmund (1996:6) research study in the systematic andobjectives process of gathering recording and analyzing data for andin making decision similarly Emory (1994:17) refers research as asystematic investigation intended to add available knowledge in aform that is communicable and verifiable.
1.9.1Primary Data
According to Zikmund (1991:40), Primary Data are gathered andassembled specially for the project at hand. (Periodic Lecture)
Through observations
Through briefing by various executives of Clariant Pakistan
Also observed the working atmosphere of the office
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1.9.2Secondary Data:
Secondary data or historical data, are previously collected andassembled for some projects other than the one at hand.
In the collection of Secondary Data the sources were:
Operating Manual of Clariant Pakistan
Record maintained by the Office
Library books
Newspapers, Magazines, and Monthly News Letters of Clariant
Pakistan.
1.9.3The Steps in Research Process
Designing and conducting a project can be very complicatedbecause of the number of parties involve. Further more a researchproject must be well planned to ensure that money is well spentorganizing the project decision into a series of steps simplifies theplanning process.
The steps involved in research are formulate the problem; specifythe research design develop the data collection procedure designthe sampling procedure. Collect the data process and analyze thedata and present result below these steps are discussed in brief.
1.9.4Formulate the problem
A through understanding of the problem is essential when panning aresearch project otherwise; the data collected may not adequatelyaddress the problem unfortunately problem definition can bedifficult because not enough is know about the situation. If theproblem is not properly defined, the collect may be unless.
1.9.5Specify the Research Design
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The second step in the process is to specify the general design ofthe project. These steps involve two decisions the types of research
to be conducted and the source of the data.
These research objective determine which of the three generaltypes of research namely exploratory research and descriptiveresearch to be used if the objective of the research is to understanda problem and situation, exploratory research is required if theobjective is to identify cause and affect relationship. Experimentalresearch is conducted if the research objectives is to providedetailed data on who, what where how why and how oftendescriptive research is used.
Descriptive research typically takes the form of the survey suchsurvey opinions, polls that have become common place in oursociety. After establishing the basic type of research to beconducted source or sources of the data to be collected must bedetermined. Marketing search data can be obtained from secondarysyndicated and primary data source. Secondary data are the datahave already been gathered for some other purpose but that alsoprovides useful information for the current problem. Syndicateddata are the data gathered by syndicated service and provided to allsubscribes of these services. The third data source, primary datarefers to data that are gathered specifically for the project at hand.
1.9.6 Develop the Data Collection Procedure
When collecting primary data whether for an exploratoryexperimental or descriptive study the procedure to be used tocollect the data must be developed. Typical decisions at this involvethe selection of the method used the data and design of necessarydata and design of necessary data collection instruments.
A variety of the methods exit to collect data either people can be
questioned or their behavior can be observed questioning can occurin person or by phone to be self-administrated. The appropriate nessof each method varies across studies, and researcher must bedetermined which method is best for study at hand.
The design of data collection instrument can influence the accuracyof information collected in study. Simple change in the wording or inthe way the questionnaires looks can drastically. Influence theresponse received. The research must ensure that questions areproperly worded and the instrument is properly designed.
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a) Design the sampling procedure
For most studies only a sample of all possible people or project willbe questioned or examined. Designed the sampling procedure touse critical who include as a potential sample numbers, are selectedand the seize of the sample are affected what can inferred for theresults.
b) Collect the Data
Companies hire field service to collect marketing research. The datacollected are only as good as the procedures used to collect them. Therefore the research must be institute procedure must be
selecting and supervising field service to ensure the desired datacollection procedure is as follows:
c) Process and Analyze the Data
After the raw data have been collected they must be prepared foranalysis and analyzed. It is important that the research selectappropriate data analysis procedure, given the information thestudy the type of data collected.
d) Present the Result
Marketing research findings are little of value their meaning can beclearly communicated establishing formats exits for written and oralresearch presentations. The researcher must see to it that theseformat are followed (Crask, Fox and Stout 1995: 15.17).
Through observation
Through briefing by various executive of Clariant Limited
The cooperative between employees was observed.
Also observed the working atmosphere of the office
By referring the journals magazines, research journals, annual
report, booklets, broachers and website.
Referring textbooks and teachers.
The purposes of Internship at Clariant are as under:
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It is partial requirement of MBA Program.
To learn and understand practical knowledge.
To know the problems and activities of the manufacturing of a
multinational industry. To understand the business environment as well as tolls to
handle the firm business effectively.
The internship report focused at study the role, performance andimportant of the Clariant Pakistan Limited in the developmentand growth of economy of Pakistan.
1.9.7 Research methodology
While conducting the Internship study the Internship methods werefollowed for the collection of data, which are primary data andsecondary data. (source class lectures by Dr. Shah)
Primary Data
According to Zimund (1991:40)
Through observations
Through briefing by various executives of Clariant Pakistan
Also observed the working atmosphere of the office
Secondary Data
Secondary data or historical data, data are previously collectedand assembled for some projects other than the one at hand.
In the collection of secondary data the source were:
Operating Manual of Clariant Pakistan.
Record maintained by the office.
Library books
Newspapers, magazines and monthly news letter of ClariantPakistan
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1.9.8Limitations regarding study
During the internship, the internee faced the following difficulties,which are listed as under:
a) Shortage of time
1. Time was too short to seek the complete knowledge regardingfunction of every department of the institution.
b) Secrecy of Data
1. The internee in the order to compile report needed certain
data however, the organizations acuities have denied most ofthe data because the data were said to be confidential innature.
Company Information:
Chairman:
Dr U CuntzeChiefExecutive &ManagingDirectorDirector: Farhat A MirzaDirectors: P Brandenberg
Albert HugDr Herbert WohlmannDr F DennefeldFirst Ali
Secretary: S K MehdiBankers: ABN-Amro Bank
Credit Agricole Indosuez- The Global French BankCitibank N.A.Deutsche BankHabib Bank LimitedNational Bank of PakistanStandard Charted BankStandard Charted Grindlays BankSociete Generale- The French and International
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BankThe Hongkong & Shanghai Banking CorporationLimited
Auditors: A.F Freguson & Co., CharteredAccountants.RegisteredOffice:
1-A/1, Sector 20,Korangi Industrial Area,Korangi, Karachi.
ShareRegistrars:
Ferguson Associates (Pvt.) Ltd.State Life Building 1-AI.I. Chundriger RoadKarachi.
Factories: Petaro Road, JamshoroKorangi Industrial Area, KarachiKatarband Road, Thokar Niaz Baig, Lahore.
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Personnel Administration Section
According to personnel & Administration officer this department isheaded by the manager Personal and Administration. Factorymanager who is directly responsible to the technical directorpersonnel and administration manager perform an important role inthe organization. He exercises authority and leadership workers, tocreate peaceful atmosphere in the factory by maintaining aharmonious complaints for proper administration, co ordinance of allthe activities, which are being performed within the organization.
2.1 Function of Personal Department.
The function of personnel Department is presented below.
1. To advise the board on the definition, development andinterpretation of personnel policy in management practice.
2. To formulate objective and plans.3. to provide the company with facilities i.e. special
techniques and service of action and information.4. To recommended the Management on different issues.5. To find the defectiveness of all management activity that
lie with personnel functions that are to do with thedevelopment motivation and treatment of the people in theorganization context.
There are different heads in Clariant Jamshoro, who control theirrespective department separately but the administrationdepartment provide facilities to all by controlling the office accountsecurity.
2.2 Personnel / Administration.
The head of personnel Department in the Clariant is also the headdo administration. He reports both the technical director andmanaging director. The personnel department provides advice,service and function guidance to the management by whichmanagement deals the matter effectively concerning hiring of thepeople. The personnel department also maintains public relationand keeps in contact with the law and administrations outside the
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Clariant these contest provide the helps to solve manyorganizational problems.
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2.2.1 Service.
The factory provide the following service to the employees, canteenservice transportation, medical service provident fund, contributionsocial security telephone service staff welfare.
2.2.2 Canteen Service.
There are two canteens in a factory, one for the workers and one forthe officers the canteen timings are between 6 am to 2:00 pm thecanteen rum on contract basis, where the tea is free for every
worker and lunch is provided on subsidizes rates.
2.2.3 Transportation.
The factory provide the following service to the employees, canteenservice transportation, medical service provident fund, contributionsocial security telephone service staff welfare.
2.2.4 Medical Service
Clariant also provide the medical service to each worker and his orher families of this purpose there are two male one female doctorsin the dispensary, which provide 24 Hrs service.
2.2.5 Provident Fund
Clariant contributes 10% basic salary of each worker to entrance theamount of provident fund of that worker. The company provides thefacility of loan to workers from the provident fund. This loan ispayable within two years at an interest rates of 4%.
2.2.6 Social Security
Clariant pays salary of worker to social security. It includes medicalfacilities and legal facilities. The social security is only for those,wages are 3000 less. (Manager Admin).
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2.2.7 Time Office
The over time is double for ordinary pay and the time ID entereddaily in the attendance register of the workers of the factory remainclosed for two days in the week but the works work on Saturday onovertime basis (Manager Admin).
2.2.8 Office Account
The head office of Clariant is in the city of Karachi and the operationsystem account provides the record of each workers leavesovertime etc. to the accounts department to computer the salary for
each workers. The record of loan if any worker has it is alsorecorded in the accounts department with the following accounts.
2.2.9 Salaries
Account department maintains the salaries of each worker the timeoffice provides the record of each workers leaves, overtime etc, tothe account department to compute the salary for each workers. The record of loan if any worker has it is also recorded in theaccount of workers provident fund. The installments of his loan arededicated every month.
2.2.10 Purchasing
As the major portion of accounts department is in the head office,therefore the major purchasing like raw material are directlypurchased by head office and they are sent to the factory at Jamshoro but some minor purchases like furniture electrical fromhere Hyderabad.
2.2.11 Security
The Clariant Pakistan Limited Jamshoro has a very strict security onthe contact bases as his law and order situation of the area is notsatisfactory. The Clariant employees the contractions, who providesthem private security guards but they are not allowed to interface inthe factory affairs.
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3. INTRODUCTION
According to Manager Engineering Section, Manager Engineeringheads a section under whose control there are seven engineers,who are responsible for providing the services and maintenance ordifferent sections of Clariant.
3.1 Site Maintenance
The main purpose of the engineering section in the Clariant PakistanLimited Jamshoro is to keep up the production level. The main dutiesperformed by the SITE maintenance is the securities gradingmaintenance all the places, streets and open drains in the site ofClariant Jamshoro. (Manager Engineer Section).
3.2 Energy Supply
This is the main service of the engineering department to provide allsections of the Clariant Pakistan Limited in case the national supplyof the electricity is being stopped, the generators will start theirfunctions just after 30 seconds.
3.3 Plant Maintenance
This is the main function of the Engineering Section with includesthe central workshop this section provides the maintenance in thefollowing sections.
i. Dyes plantii. Chemical plantiii. Master Batch Plantiv. Utilities
3.4 Waste Management
The engineering section also constructs a wastewater treatmentplant. This plant was constructed in the Rs.2 million and coveringthe area, about 10 Acre. The effluent treatment plant at Jamshoro
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sites based on the lagoon system containing 10 pounds, whichtreats the waste with the help of atmosphere.
3.5 Warehouse Maintenance
The warehouse of the maintenance in the warehouse of the
engineering section also required maintenance. In the warehousethree types of the commodities are kept.
i. Parts, general itemsii. Spare parts of machine i.e. dye chemical equipments.iii. Filter plants and pant.
All the consumption and the existence of the stock are determinedin the systematic way.
All the rakes have issuance cards which shown in the computers,installed in the engineering section.
3.6 Projects
The payment of Security Guards are no accommodation is providedthe project engineering department construct building, vase on thecontract technical services are those services performed for theminor projects up to Rs.50.000 (Manager Engineering Section).
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4. INTRODUCTION
The term production is defined as transformation of inputs intooutputs. The main object of each organization is to producesomething and the productivity is defined as the ratio of output toinput and is probably the best indication of efficiency. The overallproductivity and efficiency of the Clariant ultimately depends onhow ell management organizes and utilize the capital, investment,technology, materials, labor and other inputs.
4.1 Production Clariant
Clariant Pakistan has two main production divisions, which producevarious products. The functions and the process of production ofClariant are dyes division, chemical division (Hussain, DirectorProduction Chemical).
4.2 Dyes Department
Dyes plant started in the early 60th. Capacity of the plant was 200kguntil 1982. These dyes are used to clout the yarn and leather. Thedyes section consist three floors, in which the process is conductedon the first floor the standard solution is prepared I number of
vessels of different capacities. After that, a sample is taken and sentto ach in process laboratory (IPL) where it will be checked. After theapproval the solution will go through filtration process in the filtermachine filter, press has screens covered with canvass on which thesolid particles will settle and the liquid will drain out. (DirectorProduction Chemicals).
4.3 Chemical Department
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The chemical section is on the main section of Clariant Pakistan Ltd.the production of chemical is based on three floors process one ofcontain. Five different vessels, a rubber line, baseline vessels and
steels vessels. On this floor, die rent types of chemicals areproduced after reaction is carried out duration a sample is taken tothe IPL for checking approval. The chemicals go directly for packingor for filtration or for spray dyeing process. The chemicals, whichare in liquid process in sop the chemicals are sent through the pipelines to a storage vessel from where in small quantities it is sent tothe spray dry feed vessels that send the chemical to the spraydryer. (Director Production Chemical).
4.4 Management Process flows for chemical process
Process so describe diagrammatically as follows:
1. Reaction IPL approval Q.A
Packing
Reaction Filtration Packing (IPL approval)
Packing(IPL Approval) (Q.A Finished goods)
4.5 Manufacturing process flow for dyes production
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Spray Dying
IPL Approval
Quality Assurance. Finished goods
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Disperse Dyes
Vita Packing Warehouse
Direct Reactive and Derma Dyes
Vita IPL Approval
Filter Action (Cake Formation)
Melting Quality Control SectionMixingPacking
Warehouse
The dyes after going through the dying process is dry out still likecaked and have to under process, so that it is in power from thismixing process are homogenous. The final dye is now sent to thequality assurance lag for approval. After that these are sent to theassurance the disperse dyes are made by carrying out the vatreaction and the following are the types of dyes products.
1. Direct Dyes The direct dyes are ordinary dyes and areused for cotton.
2. ReactiveDyes
The reactive dyes react with cloth fiber.
3. DisperseDyes
The disperse dyes is introduced one yearbefore. It is for polyester fiber.
4. Derma Dyes The derma dyes are used for leather products.(Hussain Director Production Chemicals)
4.6 Management of production operation
One of the most important functions of management is themaximum utilization of the available production resources at aminimum cost. The existence of especially the world wars createdintense international completion.
Input
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Transformation Process Output
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Input
Skill and facilities Supplies and partTools, Machine
Knowledge worker Raw material energy Landcomputer
Transformation
1. Choiring the productsTo be made serviceTo be provide
2. Production planning and control3. Inventory control4. Quality control
4.7 Analytical lab of Clariant
According to Incharge of analytical laboratory, the main purpose oflab is to check the production of raw material that weather there isany hazards in the colors. The composition of raw material thatweather is also checked here. There are a few companies which payattention to the environment and installing such type of analyticallaboratory in there factories.
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EquipmentMaterialPeople
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5.1 Introduction
Quality control is concerned with the sampling specification testingorganization documentation and release procedures, which insuresthat the necessary and relevant tests are carried out. The materialsare not released for use or products are not for sale until and unlesstheir quality has been judge satisfactory.
5.2 Objectives of Quality Assurance
Following are the objectives of quality assurance
i. To produce the qualitative and approved products.ii. The produce has been complied with the specification.iii. The finished products have been essentially processed
according to the defined procedures.iv. The finished products are enclosed in their proper
containers in such a way so that they are correctlylabeled. In addition, stored and distrusted so that theirquality is maintained through out its expected life.
5.3 Raw material analysis chemicals laboratory
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This laboratory is also called sampling section. All the raw materialfor the sampling kept in the categorized and taken from the large
container of the raw material:-
a. Importedb. Localc. Principle (Active Ingredient)d. The raw material is imported from the Europe, Iran,
China, Hong Kong, Japan & Taiwan.e. The local raw material is salt mater, caustic soda etc.f. The principle or the active ingredient comes from the
headquarter Switzerland.
5.3.1Laboratory
There are laboratories on the Clariant Pakistan Limited
i. Raw material analysis chemical labii. In process labiii. Quality control lab
5.4 Independent quality control system of Clariant
5.4.1 In process Laboratory (Chemicals)For producing highly qualitative the raw material is sent to theprocessing again take for the checking. This lab is authorizedto take the sample from any vessel. That sample will be takenfrom any stage from the start of raw material until finishedgoods.
5.4.2 Importance of in process quality controlIn process quality control as essentially a tool, which keeps in,
maintain product quality at every stage of manufacturingprocess. In process, quality control demands a high-levelquality protection. The quality must meet the customersneeds.
5.4.3Quality control laboratory (Dyes)All the products especially Dyes products are tested thequality control i.e. as the dyes for the leather must have to bechecked and analysis of the processing of the whole orrequested raw material.
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5.5 Release Decision
The decision is based on the result of the sampling inspectionof the products, and possibly supplemented by the result ofthe in process control. A release decision is also necessary,finished product the decision is based on the result of theexamination, of a sample from each package batch or fromeach delivery during the packaging process, by thepersonnels of the quality control department. (SiddiquiIncharge Quality Control).
5.6 Analytical Records
Department maintains the analytical records concerning theexamination of all samples taken. The result of every testperformed including observation and calculation complies.
a. The product nameb. Batch numberc. Size of the batch number.
5.7 Distribution Records
As adequate records have been maintained of the distributionof finished products batches in order to completer recall of thebatch if necessary.
5.8 Complaints, Reports and Adverse Reaction
The reports of adverse reaction resulting from the use ofchemical are forwarded to appropriate authorities. Complaintsregarding the quality of chemical including any change in itsphysical characteristics are toughly investigated.
5.9 Packing & Labeling Concept
The packing and labeling operation controlled to ensure thatonly Clariant products have met the standards arespecification established in the records. The packing materialis distributed in a way to relent the mis-up between theproducts during filling packing and leveling operation. Toprevent the packaging and labeling errors a know numbers oflabeling and packaging is issued such issuance is made
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against the written signed indicate the quantity and typerequired.
ENVIRONMENT, SAFETY, & HEALTH AFFAIRS
6.1 INTRODUCTION:
Before the de-merging of Clariant from Sandoz, the name of thisdepartment was SNI. After the de-merging of Clariant in 1995, thisdepartment was know as she (Safety, Environment, Health), andnow known as ESHA (Environment, Safety, & Health Affairs).
6.1.1 SAFETY:
Safety in the Processing
Safety in the Storage
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Safety of the Property
Fire prevention, Fire fighting
GUIDELINES:
As the Clariant is foreign base industry,, which are very muchconscious about the safety. The Guidelines, which are given to theClariant, are as under.
Directive issues from Switzerland
Corporate instruction, such instruction bound all the chemicalindustries .
Local Law, some times State also impose the law, which mustbe obeyed by the industries.
6.1.2 ENVIRONMENT:
The Clariant Pakistan takes deep care about environment accordingto the Clariant Principle.
The soil of factory site must be free of pollution.
The air of factory surroundings must be free of pollution.
The matter of factory undertakes of even waste matter mustbe free of pollution.
GUIDELINES:
The Clariant Pakistan follows guidelines for environments, to removepollution from waste water and of gas stream before discharge in toenvironment as under:
a) To avoid generating wasteb) To reduce if cant completelyc) To cycle the waste i.e an envelope use for the five times.
6.1.3 HEALTH:
The Clariant Pakistan takes deep care about environment accordingto the Clariant Principle.
The monitoring of the work place.
The occupational hygienic.
The health hazards chemical experiments.
Noise pollution.
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GUIDELINES:
The Clariant Pakistan follows guidelines for health purpose as under:d) Corporate principlee) International standardsf) Local standards.
6.2 MAIN OBJECTIVES:
The main objectives of ESHA are,
The main local safety file Technical plant documentation (SAMACO)
Air emission Management
Incident reporting
Clariant emergency Management.
Safety system of work
Risk portfolio
Try to get high yields and make little waste from production.
6.3 AUDIT OF ESHA CONCEPT:
The auditor team performs the audit of ESHA. The team comes fromthe head quarter Switzerland to check that weather all thedepartments perform their work efficiently or not. The team of theauditors comes after each three years. The auditors check the riskportfolio, which provides an overview of major risk for themanagement at site and determine that how effectively the risk ofaccident will be managed.
6.4 A GREAT EFFORT TO ECO FRIEND:
(Waste Water Treatment Plant)Clariant Pakistan fulfilling its commitment to the environment of thesurroundings Jamshoro site, initiated a pilot wastewater treatmentplant in March-1989.
After continuously monitoring the wastewater treatment for twoyears a full-scale effluent treatment plat costing RS.42 Million wasconstructed covering an area of 10 acres, which was commissionedin September-1995.
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The effluent treatment plat at Jamshoro site s based on the lagoonsystem containing 10 ponds, which treats the wastewater with thehelp of atmospheric air, solar radiation and retention time. NO.
important equipment or electromechanical energy is required forthe treatment mechanism. Instead, certain types of micro organismand algae play their role in different lagoons to carry outbiochemical reaction to breakdown the complex compound in thewaste, reduce quality of solid, remove biological oxygen demandand other pollution from the waste.
The ponds in the lagoon system are of three types; equalization,facultative and maturation ponds.
Total capacity of system bas 57,000 with a provision of 20 days
retention; a total of 3.600 cubic meters of wastewater can betreated by this system. The samples of all the influent and affluentwater streams are taken weekly, and analyzed in the laboratorylocated in close proximity to this plant. The outgoing treated water,being highly nutrient rich, helped in the growth of vegetation in thesurrounding are, where previously the barren land now become lushgreen. In reality Clariant scientific lacking has brought a greenrevolution in the surroundings of Jamshoro.
6.5 OCCURRENCE OF ACCIDENT:According to the principle of the Clariant Pakistan Limited, there aretwo mean reasons of the accidents;1. Unsafe Conditionsin includes, Narrow Space, within grip of moving machine, flyingparticle, falling things, Slippy surface, sudden Change in the workplace, electric shocks, toxic gases, Heavy items, Combustible Items,Sharp Items, Heating & Cooling Effects.1. Unsafe Activities:it includes, Operating unfamiliar machines, unsafe Speed ofMachines, Wrong improper tool, and distributing other, joking/now-seriousness at work place.
Dont be discourage
Investigate Cause
Take remedial measures fore future presentation
Inform others about the cause of accident.
Periodically review the status There is the form of Accident Report for the informationconsisting information, where, when, nature of injury, reason ofinjury, the time loss. It is important step to measure the workersperformance.
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6.6 ESHA DOCUMENTATION:1) Handling Flammable liquid & gases
2) Statue Electricity3) Isolation of making safe Products4) Head & Face Protection5) Color Coding of Gas Cylinder6) Regulation for use of Solvent7) List of Waste Substance, When Where, and how to inform8) Transportation of goods and waste9) Services ducts entry permit10) Pressurized glass apparatus and pipe ware.
The risk are and weak points are also to be look after by the N.O
open eyes e.g.AIR
6.7 CHEMICAL REACTIONS:The fireplace requires a greater presentation from the air, fuel, heatand chemical reaction.
There is also indication of causes of accident that must be avoided,
Production Site Laboratories
House waste collection
Infrastructure, ventilation, Electric Supply.
There are more than 300 fire extinguishers for fire protection.
6.8 PLANNING FOR MANUFACTURING SAFETY:Before State Work:
Keep in mind surrounding danger Expect and repair for unexpected risk
Inform others about your presence
Never do any thing that is likely to endanger yourself andother
Help to keep the site tied. Good housekeeping preventaccidents.
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HeatFire
Fuel
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During Working:
Observe Safety Regulations
The dangerous parts and tools should be used properly
Leave more in safe conditions
6.9 PLANNING FOR WAREHOUSE SAFETY:There is the categorization of warehousing. Each category has itsown safety measures. Each section Send its own Safety requiresguidelines, which must be followed by ESHA.
6.10 PLANNING FOR WASTE SOLID MATERIAL SAFETY:Each drum is not dispose off. All of the drums, after the use washedand reused;
Other waste are fixed The particles are sold out
All types of waste and wrong production recomposed orreproduce.
6.11 PLANNING FOR CONSUMPTION OF WASTE WATERSAFETY:
In Europe there is the problem of space. In Jamshoro site treatmentexpense of wastewater is six paisa per liter. While in other placesdue to shortage of space Rs.10.00 per liter will be consumed on
wastewater treatment plant.
6.12 PLANNING FOR PERSONNEL SAFETY:In order to prevent any impairment of health caused by the handlingof hazardous of potent materials, manufacturing personnel wearhead gear, full face mask mufflers, ear pin, respirators, apron dustmask, etc and such protective clothing remains in the area in whichit is used. In some instances, it has been necessary to haverestriction of the movement of personnel from special workingareas.
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WAREHOUSE DEPARTMENT
7.1 Introduction:
It is defined as management for Receiving, storing, Accounting,issuing, and Supplying Materials.
The purchase of D3 orders for raw material reaches the warehouse,the checking has been carried out against the purchase order. Rawmaterials are then transferred to quarantine area. From where thesamples of raw material are sent to the quality assurance section foranalysis, if the material is not approved then the material returnback to the consignee, and destroyed if the period of return isexpired. After the approval of raw material, the material is stored
according to storage requirement. The particular material issuanceis made according to formula, in the right proportion and is issuedby the qualified person. The FIFO (first in first out) principle isfollowed..
7.2 WAREHOUSE:The warehouse is categorized in four sub-warehouses,
1) Dyed Raw Material2) Chemical Raw Material3) Dyed Finished goods4) Chemical Finished goods
7.2.1 Raw Materials:
the 90% of the raw material for the both dyes and chemical areimported. Only 10% of raw material for the manufacturing of Dyedand Chemical purpose are local (Caustic Soda, Salt, and Potassium).As such batch of incoming raw material is receive, has given areceiving number by which it will be identified in subsequenceoperation. This number has distinguish characteristic which will
prevent possible confusion with any number previously placed onthe container by supplier.
7.3 ISSUANCE OF RAW MATERIAL FROM BOUNDEDWAREHOUSE:
This warehouse involves the procedure to issue raw materials. Allraw materials are issued through the warehouse on the documents.Materials are issued against manufacturing. The purchase order areliable to pay duty and charges on the imported raw materials,
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comes out from the bounded warehouse. Now the warehouseIncharge issues the material to production section. Before issuingthe material, re-check the container and liable to reassure the
correct transfer to material.
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7.4 CAPACITIES AND CATEGORIZATION :There are four buildings consist the warehouse, seven shades andten container of ten feet. There are 300 Ton capacity of ther
warehous4e of the Jamshoro site.
The material of the warehouse finally categorized each materialform 1-10 categories.
1. High Flammable2. Explosive Material3. Self-Reactive Substance4. Substance which reacts violently and produce Gas when it
contacts with matter5. Oxidation Substance
6. Flammable Liquids7. Flammable Solids8. Combustible Toxic Solids9. Combustible Solids (Liquids, Non, Liquids)10. Combustible Packing Material
7.5 BUSINESS PLANNING & CONTROL SYSTEM (BP & CS): The warehouse has seven multipurpose computer systems calledBusiness Planning & Control System (BP & CS). In the IBM 400 latestsystem. VHF speed of that computer programmer is 9300bites persec.
The mian menu of BP & CS displays the following on the screen,
Dyes Chemical & Master Batch
BP & Cs non-inventory
BP & CS Journal Ledger
BP & CS Projects
Project Monitoring System
BP & CS Testing
There are four-sub sections in BP & CS program.
1. Financial2. Distribution3. Manufacturing4. System Application.
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7.6 PURCHASING RAW MATERIAL:
The planning Department sends the forecast report for an othereight-month 7 indicates that which type of raw material is required,They send Such requirements to the purchase department when thepurchase department approves it, then they send the purchaseorder to warehouse. Then warehouse manager imports all thedescribed raw materials.
7.7 RULES TO KEEP WAREHOUSE: The Switzerland sends the guidelines, strategies andimplementation for the warehouse. The rules are,
Risk reduction Strategy Categorization of Stored goods
Alarm & Emergency instructions
Water & Soil Protection
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8.1 CONCLUSIONS:At the completion of internship the internee has drawn the
conclusion that are presented in the following order.
1. There papers a shortage of skilled personal related toproduction.
2. Product promotional policies seem to be ineffective locally.3. Out dated equipment seems to be used.4. The pace of research is little slower than required.5. The production management seem not following the JIT
concepts religiously.
8.2 Suggestions:
On the basis of conclusion drawn, the internee recommendsthe following suggestion.
1. The production management requires recruiting andtraining the personnel as to increase the efficiency &performance of the organization as whole.
2. it is desirable to improve the product promotional policesfor the betterment of the product locally.
3. It may be more productive to introduce new equipment &advanced technology to save the time memory.
4. it seems that there is dire need for more research.
5. it appears that there is need to adopt the JIT concept inorder to get the return immediately.
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BIBLIOGRAPHY
1. William G.Zikmund, Business Reseacrch Methods
(third edition), 1991 page-06
2. C. William Emory, Business Research Methods(revised edition), 1994 page-17
3. Norman A. Polansky. Social Work Research, TheUniversity Chicago Press, Chicago, 1974 Page-02
4. Melvin Crask, Rechord J. Fox, Roy G. Gtout: MarketingResearch Principle & Applications (copy rights 1995) ,Prentice Hall, page-15 to 17
5. Recce/o Grady, Business Fourth Edition 1994
REFERENCES:
Clariant Web Site
Clariant Annual Report 2003-2004
Clariant Annual Report 2004-2005
Quarterly Report Clariant April-2003 to June-2003
Business Analysis Report Clariant March-2002
Manager Personal & Admin, Clariant, Jamshoro
Manager Engineering Clariant, Jamshoro
Manager Quality Control Clariant, Jamshoro
Director Production Chemicals Clariant, Jamshoro
Manager Warehouse Clariant, Jamshoro