Al-Gazi Tractors - (Management)
Al-Gazi Tractors - (Management)
Al-Gazi Tractors - (Management)
EXECUTIVE SUMMARY:
Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.The area of
factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT”
of Italy. The main purpose of the company is assembling and distributing of Fiat
Tractors. They assemble two models of tractors i.e. 480-S and 640. The depletion rate of
480 is 85% and 640 are 76%.
Forecasting entirely depends upon the marketing department. Previously 98% of sales
was made by contract with ADBP but now it is carried out on net cash payment basis.
Because delivery through ADBP has been stopped. Highway method is used for
transportation purpose.
To reduce inventory level they adopt safety stock method. They have different lead-time
for different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing
inventory. Al-Ghazi Tractors Limited has a separate quality control department. The
laboratory is well equipped to under take chemical and mechanical testing of metals. Al-
Ghazi Tractors Limited has received the ISO 9002 Certificate.
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Al-Gazi Tractors Limited
PRIVATIZATION
Al- Ghazi Tractors Limited was privatized on December 9, 1991 according to the
new policy given by Nawaz Sharif government and it was taken over by a forgien
investor Al-Futtaim of Dubai.
Now, the Al- Futtaim group owns 54% of Al-Ghazi tractors limited.s shares
where as FIAT held 42% of shares and 5% of shares are held by the employees in the
local market.
MISSION STATEMENT
“ OUR ENDURING COMPETITIVE EDGE IS THE QUALITY OF OUR TRACTORS”
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Ø To pay sepacial attention to the quality of the finished products to get customer
satisfaction.
Ø To provide prompt and effective after sale services and tactical advice together with
adequate supply of spare parts.
Ø To achieve maximum localizaton of components .
ORGANIZATIONAL STRUCTURE
Organizational structure of Al-Ghazi Tractors Limited is that both chairman and
CEO are appointed by the Board. The board appoints CEO for running of day to day
matter of business in line with the company’s policy and delegation of athority table.
Vital functions of board are the establishment of company objectives and
approval of annual budget.CEO is also responsible for the corporate strategy and the
formulation of long and intermediate term plans and programs. The CEO privides an
integrating function for the entire organization. He gives the organization right direction
and purpose. For better survival and growth, group decision making through committees
and meetings is a common practice of Al-Ghazi tractors limited.
The organozational structure of Al-Ghazi Tractors limited is split into 5 functional areas;
1. Personnel and administration
2. Finance
3. Material management
4. Plant and production
5. Marketing
chart
MAIN OFFICES:
Main offices of the company are located in Karachi, Dera ghazi khan,Lahore, &
Multan, where as regional offices are located in Nawabshah, Sukhar, Islamabad, &
Peshawer.
Karachi office:
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LOCATION
The location of facility involves the committment of resources to long range plans.
Locations take on even greater significance because those plans represent the basic
strategy for assessing markets and may have significant impact in revenue, cost and
service level to customers and clients. Technological constraints eliminate most of
possible locations. Location of industry is selected on the basis of:
• Availability of inputs to products or raw materials on cheap prices and
• maximization of profits.
• Proximity to potential customers to be served.
• Proximity to required labor for performing the operations.
• In plant location objective is to minimize the sum of all costs, not only current
but also long term costs.
FACTORS
Due to following factors the plant was selected at the above location.
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decided to establish a tractor factory in this region. A factory “Al-Ghazi Tractors Ltd.”
was established by joint venture of PACO, HABIB GROUP, NDFC, and FIAT of Italy in
September 1983.
CONSTRUCTION COST
The major cost involved in any organization is in the shape of the construction costs. That
took a large amount. But at that time the labor was available at the cheaper rate. Due to
which the site was selected at that place
PROXIMITY TO MARKETS
It is located in the district Dera Ghazi Khan of province Punjab whose boundaries
attaches to all four Provinces of Pakistan, especially the most fertile areas of Province
Punjab and Sindh. So, it has more proximity to the market, as Dera Ghazi Khan and
Multan Divisions are famous of being Cotton Belt.
AVAILABILITY OF UTILITIES
The basic utilities are easily available at the place. The facility of fax, electricity, Sui Gas
and telephone was provided by Govt. at that time to encourage the partners to establish
plant there. So these utilities proved much helpful to contact with the global market at
every moment is a key to success. The transportation facility is easily available at factory
place.
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AGTL has the following facilities for his staff. Which are considered to be important.
1-HOUSING FACILITIES
It is having housing facilities for 126 family homes and quarters for
executives and workers. The population of the staff colony is
approximately 500.
3-UTILITY FACILITY
Clean water supply with U.V filter and private electric generator for Un-
interrupted power supply for the staff because the weather in summer is
much hotter here.
4-RECREATION CENTERS
Recreation centers for executives, workers, children and ladies with indoor
games TV, Videos, Dish Antennas and other facilities are available at
AGTL staff colony.
EMPLOYEES
There are 536 employees which, are working in the factory.
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DEMAND FORECASTING
“A forecast is the prediction of future events used for the planning purposes”
.
Forecasting has an important role in scheduling all the operations of the organization.
Forecasting is based on qualitative as well as quantitative methods. Management needs
accurate forecasting of demands to make schedule of all operations and to cope with lead-
time of different and reduce inventory levels. Accurate forecast allows schedulers to use
machine capacity efficiently, reduce production times, and cut inventories.
FORECASTING TECHNIQUES
There the four forecasting techniques are available for the purpose of the forecasting of
the demand, which are as under.
1) Qualitative techniques
Ø Sales Force Estimate
Ø Executive Opinion
Ø Market Research
Ø Delphi Method
2) Quantitative techniques
Causal Techniques
Ø Regression
Ø Correlation
Time Series Method
Ø Naive Method
Ø Simple Moving Average
Ø Weighted Moving Average
Ø Exponential Smoothing Method With trend & Seasonal Effect
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External Factors
Following are the external factors that affect the demand.
Ø ADBP’s loaning policies and procedures
Ø Climatical disasters such as floods
Ø Changes in govt. laws, regulations, polices and tariff structure.
Ø Economics conditions of the country
Ø Supply constraints of local and CKD components.
Internal Factors
These factors are listed are follows
Ø High manufacturing cost and selling expenditures
Ø Promotion Policy
Ø Lack of professionalism in dealerships.
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Total capacity of plant is 15,000 tractors per annum. Full scaleProduction of FIAT
tractor models 480-S and 640 commenced from April, 1985. The plant operates on high
efficiency because assembly operation wastes are negligible. The optimum production
level is 10,000 tractors and Al-Ghazi Tractors Limited is now having 50% market share.
Al-Ghazi Tractors limited is using effective capacity i.e., maximum out put under
realistic conditions and it implies one-shift operation.
PRODUCTION DATA
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INVENTORY MANAGEMENT
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the inside as well as from the foreign countries. The purchasing is made according to
documented procedures of ISO 9002 standards discussed in ISO 9002.
RAW MATERIAL
The company needs raw material for the purpose of the production by the company can
divide the items, which come under the raw material, into two broad categories.
a) Imported material
b) Local material
1). IMPORTED MATERIAL
The main items, which are imported by this company, are the gear cases and
Engine and the critical items, which are necessary for the purpose of the production by
the company. The company imports these items from Italy, Turkey.
The raw material fall under this category for
a) Model 480-S is 15%
b) Model 640 is 24%
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REORDER POINT
At any time the raw material of 200 tractors is present in the factory premises.
Whenever the material falls below it a fax is sent to Head Office for more raw material.
The reorder point in the company is the raw material of 200 engines of the tractors.
LEAD TIME
Lead-time is the time required for receiving goods from the suppliers. AGTL has two
types of suppliers.
v Local suppliers
1) Vendors from Lahore area have lead-time of 10 days.
2) Vendors from Karachi area have lead-time of 30 days.
v Foreign suppliers
Lead-times for foreign vendors from Italy and Turkey have usually 6 months.
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Quality Policy
In Al-Ghazi quality is a dynamic state associated with the products, services,
people, processes and environment that meets or exceeds the expectations of their
customers and it is a strong edge on the basis of quality against the competitors. There is
well-established Quality Control department in the company that assures quality by
incorporating other departments.
DEPARTMENTS
There is well-established setup to ensure quality in the company. The following
departments are directly concerned with quality assurance in the company.
• Quality Control department.
• Purchasing department.
• Inspection department.
• Production department.
• Vendor development department.
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LOT
SIZE
ACCEPTANCE QUALITY LEVEL
0.65 1.5 04 6.5
N K R N K R N K R N K R
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8) Second line
9) Final inspection
There is chained relationship among all above activities and operations. If one person
fails to identify a defective item than the next one will identify it. The Quality Inspector is
on the assembly line to check the quality of the items and to identify defective parts.
FINAL INSPECTION
In the last a group of Quality Inspectors examines the finished product. They
check the paint and performance of tractors on the “Roller test” to check the gear, speed
and working of the tractors. After it each and every tractor is checked on the road before
the delivery. For this purpose meter reading is noted before and after the test. Each and
function is checked in the Road Test. After it pre delivery test is completed.
CHART ?
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In Al-Ghazi Tractors Ltd. management has been taking the following steps for Total
Quality Management.
1-EDUCATION AND TRAINING
The management has established a training center in the premises of the company
for training to the managers and workers to increase the performance at every level. This
improvement in performance is directed towards satisfying such cross-functional goals as
quality, schedule, and others activities. Before audit of ISO 9002 implementation in the
company all the employees who are concerned with quality were given training so that all
the employees could understand all the documented procedures, authorities and
responsibilities of each other in the company. Some managers were sent to different
seminars and workshops to learn about ISO 9002.
Now a days the companies has introduced their new product New Holland tractor
in the market. For this they are giving training to new hired employees about assembling
of the tractor.
2-TEAMWORK
In Al-Ghazi there is strong existence of teamwork. These are the managed group
of the employees doing their best competitive efforts to cope with the barriers, rivalries
and distrust among different departments to improve the quality of the their products. In
the company the employees have
3-CUSTOMER FOCUS
In Al-Ghazi all operations are directed satisfaction to both external or internal
customers .The product produced, to the external customers is totally checked by the
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internal customers. The internal customers in Al-Ghazi check the quality of items, semi-
finished goods during process because the work of one depends on the work that proceeds
them.
OBSESSION WITH QUALITY
For obsession with quality the employees are trained from time to time to learn
the philosophy “ how can we do better ” the suggestion given by the employees about
quality are appreciated in the company.
SCIENTIFIC APPROACH
As the engine of the tractors are produced in Italy for Fiat and for New-Holland .
From New-Holland Company which is a subsidiary of Fiat group. These both are
operating 13 research and development centers located in Brazil, Belgium, Canada,
England, India, and Italy, United States. Besides it both is directly operating 19
manufacturing centers and 26 sales offices around the world. These research centers are
using scientific approaches to develop and modify their existing and new products.
EMPLOYEE INVOLVEMENT
Employees are involved in all the matters relating to quality, purchasing and other
functions of the company. It results in good decision making and more effective
improvement by bringing more minds to bear the situation.
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PRODUCTION PROCESS
The process design in the assembly line of tractors consists of the following operations an
activities.
q Gear Box
q Transmission
q Coupling of transmission with Gear-Box
q Test Bench
q Coupling engine with transmission
q First line
q Paint shop
q Second line
q Final inspection
1-GEAR-BOX
Engines and many parts of the tractors are imported from Fiat manufacturers in Italy and
Turkey. During the journey from Italy to the plant many parts of gearbox get loose. On arriving
in the plant, during assembling certain operations are performed by technical individuals, are
discussed as under.
i) CLEANING OF CASE FROM INSIDE
Here the case of gearbox is cleaned from inside because it is much effected due to dust.
The dust is removed from inside the case by cleaning it with some dust-removing
agents.
ii) COUNTER SHAFT NUT TIGHTING AND STAKING.
Some parts of gearbox get loosed because of journey in ship and later on trucks. Here
shaft is tightened and
some other items are assembled to it.
iii) TRANSMISSION SHAFT COVERS TIGHTENING.
After counter shaft nut tightening next the transmission shaft cover is tightened
because of above reasons.
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2-TRANSMISSION
The following are the operations that are performed during transmission.
i) CLEANING FROM INSIDE.
Here nozzles that are to be fitted into gearbox are cleaned. Others parts are also cleaned and
oiled.
ii) BEVEL PINION NUT TIGHTENING.
It is the second operation in transmission. Here the bevel pinion nut is tightened into the
gear- box.
iii) BEVEL PINION ROTATING TORQUE.
Bevel pinion rotating torque is cleaned and made ready for assembling into the gearbox.
iv) DRIVE HEAD TIGHTENING.
Drive is a separate part, which is later adjusted to the gearbox, is tightened with some of
other parts.
v) BEVEL DRIVE ROTATING.
Bevel drive rotating is cleaned and its specification is checked and is sealed by adjusting it
into the gearbox.
vi) BEVEL DRIVE BACKLASH.
Here the bevel drive is recoiled so that it is ready for coupling to gearbox and engine.
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4-TEST BENCH
Here the engine is checked to check that all its parts are at their its correct places or not,
further actions are taken later on.
i) OPERATION TEST.
Here the engine is checked by engintioning it and the performance of the engines are
checked to ensure its performance.
ii) CLUTCH TO FLY WHEEL TIGHTENING
Here the flywheel are checked and tightened strongly with the transmission.
iii) ENGINE WITH TRANSMISSION
Here the engine is combined with the transmission and bolts are strongly tightened.
iv) MASTER CLUTCH PEDAL ADJUSTMENT
Here the master clutch pedal is adjusted.
v) HYDRALIC LIFT TRANSMISSION TIGHTENING
Here hydraulic lift is fixed and tightening with transmission.
vi) LEVER TO STEERING BOX TIGHTENING
Here lever of tractor is tightening with the lever to transmission.
vii) FRONT AXLE SUPPORT TIGHTENING
The bolts of front axle are tightened to the transmission.
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5-PAINT SHOP
i) WASHING
Here to remove dust the body of engine , the body of the engine is washed with hot mixture
of hot water and chemicals.
ii) PRIMER
Here the body is make prepared for paint by allowing to remained in the hot air.
iii) PAINT
Here the steel body is painted in the “Paint Shop”.
6-SECOND LINE
i) INJECT GREASE IN ALL LUBRICANTS
Here grease and other lubricant oils are injected to engine and moving parts of the tractors
like wheel.
ii) ELECTRICAL SYSTEM
Here all electrical wiring system is built ion to the tractor a d a battery is adjusted in the
tractor. All lighting bulbs are put bonnets relevant places.
iii) ALIGNMENT OF STEEL METAL
Here the painted body of the tractor is aligned tom the engine and other body of the tractors.
iv) FRONT WHEEL TIGHTENING
Here the bolts of front line are tightened and also are injected grease to it
v) REAR WHEAL TIGHTENING
Here the bolts of the back wheel are tightened, and the inner parts are oiled with Mobil Oil.
vi) WHEEL ALIGNMENT
Here the front and back wheels are alighted and their bolts are tightened.
vii) OIL CHECKING
Here the oil levels are checked and fill oil to it and after it the final inspection is made.
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7-FINAL INSPECTION
The following are the operations, which are performed during final inspection of finished
tractors.
i) CHECKING OF OIL LEVEL:
q Engine oil level checking
q Gear Box oil level checking
q Air cleaner oil checking
q Water level checking
q Weight test of Hydraulic pressure
ii) CHECKING OF OPERATING PARTS:
q Clutch play tightening and sound test
q Tightening of break L/H & R/H
q P.T.O Clutch test
q High, low gear sound checking
q 1-2-3-4 & reverse gear checking
q break seal of L/H & R/H
q Final drive tube leak
q Differential case hole and sound checking
q Gear box top cover leak checking
q P.T.O top cover leak checking
q P.T.O plate leak checking
q P.T.O cover leak checking
q P.T.O seal leak checking
q Differential leak checking
q Engine sound checking
q Lift pump support checking
q Automisophry support checking
q Paint cover checking
q Fuel engine pipe leak cover checking
q Top hydraulic leak checking
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DISTRIBUTION FUNCTION
The distribution function is the part of the marketing department and its activities are as
follows.
q Booking of tractors
q Delivery of tractors
q Handling of payments
q Preparation of reports for MIS
q Close co-ordination with production and material management department.
1-BOOKING OF TRACTORS
There are two types of tractors bookings i.e., against ADBP loans and cash
bookings are registered with the company either by customers over the counter or
through dealership network. 90% booking’s are being entertained through dealers.
2-DELIVERY OF TRACTORS
On the delivery side prime functions is to obtain information form Material
Management so as to ascertain the availability for tractors. After the availability of
tractors delivery scheduled is circulated to the dealers by the way of intimation letters to
customers.
3-HANDLING OF PAYMENT
If the tractor is ordered on cash basis then it is immediately delivered to the
customers from stock that the company holds but if they put to loan order such
documents are passed on to the payment handling section where the sets of documents
are submitted to ADBP, bank drafts for its encashment in accordance with prevalent
Agriculture Bank procedures.
4-SERVICE FUNCTION
The function of this department is to look after products and their after sales
service. This department is not a profit oriented department. Its operations are directed
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towards cost savings, which are conducted in a business like manner. It provides prompt
and satisfactory after sales service to the customers.
5-PARTS FUNCTIONS
The aim and objective of Parts Department is to ensure availability of all
necessary imported and local parts for the ease and convenience of the end user.
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ISO 9000
ISO 9000 is quality system standards and are the highest criteria of quality in the
world. Many companies in EC, Arab countries, USA and other countries are now
demanding ISO 9000 registration from the suppliers around the world. Approximately
45000 companies around the world are ISO 9000 certified. ISO 9000 is effecting industry
and business in every sector. Due to the importance of the ISO 9000 many companies in
Pakistan have started their journey on the certification.
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“Are you ISO certified” by your customers. Now a days in the World, just about every
business, from the large multinationals to the local organizations have pursued or pursuing
certification to satisfy and win the hearts of their customers.
In Pakistan about 90 companies have still certified ISO 9000 that is a positive
indicator as it laying a foundation of Quality Management in the companies. Its nice to
see so many companies achieving ISO 9000 registration the growth is extraordinary. Al-
Ghazi Tractors Ltd. the market leader in tractors in auto industry is the pioneer in getting
the highest quality standard of World ISO 9000 in Pakistan. The management and
employees have taken it a real challenge to integrate the Quality Management into their
business operations as an essential part of their work.
MANAGEMENT’S RESPONSIBILITY
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The Quality Control Manager has the responsibility for overseeing, incoming
material inspection, work in-process test, final inspection, and statistical techniques in
conjunction with the production departments.
Independent personnel are trained and appointed by the quality control
department, perform the quality audits and can audit any area from which they are trained
and appointed.
RESOURCES
The management of Al-Ghazi has designated appropriately trained individuals, to
meet all the requirements of the quality program. Quality control department has
approved personnel performing the quality inspections. The employees who are
concerned with quality in the company have been trained to understand and maintained
the quality policy of the company.
Ø There are documented job descriptions that define authority and responsibility for
quality operations.
Ø There are trained employees have been assigned to internal audit activities and audit
reports are transmitted to senior management.
Ø The trained engineers and employees of Materials and Metallurgical laboratory to
verify and inspect the conformance of incoming raw materials and products against
the design specifications that is managed and overseen by quality control department.
Ø The trained engineers and employees of Quality Control department and Production
Department perform In-process inspection, final inspection, and functional testing
that ensure conformance to product design specification.
MANAGEMENT REPRESENTATIVES
The Production and Quality Control Mangers are responsible for insuring that the
ISO 9002 requirements are met as well as all other customer requested requirement. It is
also the function of the quality control manager to provide regular feedback on the status
of the quality system and its progress. This is accomplished via reports on those
measures reflective of the quality system.
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The Quality Control Manger also acts as the primary communicator with
reference to any outside bodies affecting the quality system.
MANAGEMENT REVIEW
From time to time the Quality Control Manager reviews the quality system’s
methodology and its application to the ISO 9002 Standard. Revisions to the manual and
quality system is made as required to guarantee the quality of the product, services, and
the needs of the company.
The Upper Management and staff conduct regular reviews of quality issues. These
documented reviews are used for further corrective plans.
QUALITY SYSTEM
In Al-Ghazi Tractors Ltd. the quality control program is a formally documented
system of planned activities established to provide evidence of compliance to the
requirements of applicable regulation, codes, standards, contractual specifications,
drawing, ISO 9002, as well as the company quality policy.
All of these activities are governed by procedures and written instructions
supported with records of training and satisfaction compliance of products and processes.
QUALITY PLANNING
The quality manuals and all the supporting departmental procedures are referred
to as the quality plans. The preparations of these plans are responsibility of the
Production Department and Personnel Department and they maintain them in conjunction
with senior management review.
CUSTOMERS ORDERS
The firm maintain a documented system with appropriately maintained records to
ensure the appropriate review of the customer’s orders. This ensures that the order is
well understood by both parties and we have the capability to meet the requirement.
These procedures require agreement prior to the acceptance to the order. It is the
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AMENDMENTS TO CONTRACTS
The organization maintains procedures for the processes used to amend a
customer requirement to ensure compliance with the request.
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RECORDS
The customer orders (contracts) shall be maintained by the sales department for
the duration of the warranty period plus one-year unless otherwise requested by the
customer. Documented procedures exists to support the retention of these records.
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that could adversely affect the quality of the process, product, or services provided by the
operation.
A master revision listing of the documents of the vendors is maintained and
issued by the quality control department at the end of each month to Vendor
Development Department for further purchasing decisions. It is the responsibility of the
all departments to ensure that only current documents are available for usage. Obsolete
documents must be promptly removed by the department and adequately identified as
available for reference only.
DOCUMENT CHANGE
PURCHASING
Providing the best quality products require best raw material that meet certain required specifications. It is
the most important function in ISO 9000 standards implementation requirement. The purchasing
department plays an important role in that it makes documented policies about the purchasing. In Al-Ghazi
Tractor Ltd. the purchasing department situated in head office has established and maintained a
documented process with appropriate records that ensure the purchased products meet defined
specifications.
EVALUATION OF THE SUPPLIERS
The purchasing department has established documented procedures with the co-
operation of quality department by which supplier are selected. Their selection
incorporates at least three considerations in the following priority:
Ø Their ability to deliver material that meets the product specifications.
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Ø The evaluation of the quality of the products by quality department to ensure that
consistent and desired quality and delivery requirements are met.
Ø A cost competitive delivery of the material.
The purchasing department in conjunction with the quality control department
determines the methodology employed to ensure the receipts of the appropriately
conforming materials. The purchasing department in conjunction with the inspection of
incoming materials maintains records of the supplier’s performance. The purchasing
department only purchases materials from approved suppliers/vendors. It is the
responsibility of the purchasing department to establish and maintain procedures for the
generation of an acceptable supplier listing. The listings of approved suppliers must have
the approval of the quality control department.
PURCHASING DATA
The purchase orders provided to the suppliers contain appropriate information
about standards, specifications, and drawing testing criteria of the company packaging,
delivery schedule, mode of transportation.
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All procedures and activities affecting testing are overseen by quality control and
their signature on the proposed procedure is required to the Hovel Card which is attached
with gear box and it remain with it until the compelition of the product.
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CONTROL PROCEDURE
All the devices are used on a schedule based on usage or duration of time. The
schedule has been scheduled in such a way that the all the operations in factory are not
affected. Documented inspection procedures exist for the calibration of equipment. That
includes maintenance, duration between recalls, as well as the actual testing for which the
device is being used. No unauthorized person can make changes in the devices.
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1-Corrective Action
A corrective action results from a customer, employee of factory or a report of a
product nonconformance. The sales department maintains a documented process by
which the complaints are complied, analyzed, and corrective action are taken. A report is
generated to Senior Management about complaints made by the customers for the
solution. Corrective actions are than taken by the management after reviewing the
situations.
2-Preventive Actions:
A preventive action is taken on the information indicating a nonconformity within
the operating process that affects quality. These information are gathered by way of
internal audits, quality records, yields shortfalls, service reports, customer complaints,
employee’s indication or any other areas indicating process failures. The quality
department than takes action for the prevention of such failure/shortfalls in the future.
The quality control department maintains documented processes by which the shortfalls
are complied, analyzed and preventive action initiated and tracked. This prevention
action is addressed not only the root causes but also the application of controls to ensure
its effectiveness. Senior management reviews a report of the corrective and preventive
actions.
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appropriate trained employees in the handling and storage department that ensure the
proper and safe handling of materials. All materials are stored to prevent deterioration as
well as support easy retrieval for usage. It is the company’s policy to follow a “first in
first out” inventory policy and all material storage procedure is accommodate to this
policy.
Those materials that are sensitive to environment like it is very important to make
safe the engine from dust the engine is kept remained within the case in store and it is not
place openly. All the material is properly handle, continually monitor, and removed if
inappropriate. All other materials are monitored at regular intervals to detect
deterioration.
Receipts for storage and dispatch of materials from storage and handling
department are issued and received by authorize persons.
3-Packaging
The trained employees of materials handling and storage department package
supporting materials which is given with the tractors. They also maintain packaging of
the materials, which are to be use in the internal operations.
4- Preservation
A big secure store area has been established in the plant in material and handling
department to segregate the input and semi-finished products to ensure its preservation.
5-Delivery
There is network of dealers of Fiat and New-Holland tractors from Karachi to
Gilgit in Pakistan. About 98 % of tractors are sold through Agriculture development
Bank of Pakistan and only 2 % sales are on net cash. The tractors are delivered to
customers through the dealers or they may buy from company premises.
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TRAINING
There is a well-established training institutes in the company. Where all
employees who affect quality are given training from time to time. Training is given to
the managers and workers to increase the performance at every level. This improvement
in performance is directed towards satisfying such cross-functional goals as quality,
schedule, and others activities. Before final audit of ISO 9002 implementation in the
company all the employees who are concerned with quality were given training so that all
the employees could understand all the documented procedures, authorities and
responsibilities of each other in the company. Some managers were sent to different
seminars and workshops to learn about ISO 9002.
SERVICING
Al-Ghazi Tractors Ltd. has offered after sales service to its customers on both
Fiat models. The sales department has established and maintained documented
procedures and records as related to the services provided. When a customer has some
problem in machinery he contacts the nearby dealer of the company which prepare a
claim and send it to head-office for further actions.
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STATISTICAL TECHNIQUES
Each department in Al-Ghazi Tractors Ltd. has established and maintained
documented procedures to implement and control the applications of statistical
techniques in their operations. These procedures have been established in conjunction
with the quality control department.
To confirm the processes and product performances and in an attempt to increase it,
following statistical techniques are being used
v Sampling
v Formulas for evaluating sampling
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