Supply Chain Report on National Logistics Cell

Submitted to Mr. Muhammad Nauman Abbasi

Institute of Management Sciences, BZU

Supply Chain Management on National Logistics Cell

Submitted to: Mr.Muhammad Nauman Abbasi Submitted by: MB-09-41 MB-09-45 MB-09-47 MB-09-49 MB-09-51 MB-09-53 MB-09-61 MB-09-63 Mohsin Rafique Maria Yasin Maryam Latif Muhammad Jahanzab Abbasi Namra Aziz Sehrish Saeed Mustansar Hayat Mahum Bukhari

MBA morning (2009-12) Semester 6th

PREFACE This report is submitted under the practical requirement of our course fo Supply Chain Management. This report is developed with information obtained from the visit of NLC Engineering & Construction sites in Rawalpindi. In this report we have given fundamental information about the basic supply chain operations & processes going in NLC Engineering & Construction from the start to the end of a construction project and how NLC Engineering & Construction is managing its supply chain.

ACKNOWLEDGEMENTS
We are thankful to our course instructor Mr. Muhammad Nauman Abbasi, who assigned us this project on NLC Engineering & Construction and under whose guidance, encouragement and support, we have been able to complete this project with a much better understanding of the subject areas that weve studied and discussed in the class and tried to implement in this report. We are also thankful to Mr. Adnan Zafar and Mr. Shakeel who provided us valuable

information regarding the the supply chain and overall operations of the company. At the end were also thankful to our own group members who worked days and nights for the completion of this report in such a short time period and all those who helped us in bringing this report in its final shape.

Contents
PREFACE ........................................................................................................................................................ 3 ACKNOWLEDGEMENTS ................................................................................................................................. 4 Introduction to Organization ........................................................................................................................ 8 History ........................................................................................................................................................... 8 NLC Organogram ........................................................................................................................................... 8 NLC Engineering Support Team .................................................................................................................... 9 eNLC Program ............................................................................................................................................... 9 NLC Advertisement Board........................................................................................................................... 10 NLC Pearl ..................................................................................................................................................... 10 1) NLC freight services ................................................................................................................................ 11 2) NLC Engineering and Construction ......................................................................................................... 12 Capabilities: ............................................................................................................................................. 12 Overseas Wing: ....................................................................................................................................... 12 3) NLC dry ports and terminals ................................................................................................................... 13 4) NLC polymers .......................................................................................................................................... 14 Introduction to NLC Polymers:................................................................................................................ 14 What is TyreRetreading: ......................................................................................................................... 14 Tyre Product Range:................................................................................................................................ 14 5) NLC Tolling .............................................................................................................................................. 14 Tolling Culture in Country: ...................................................................................................................... 15 Revenue Generation by NLC: .................................................................................................................. 15 Training of Tolling Staff: .......................................................................................................................... 15 6) NLC Telecom Division.............................................................................................................................. 15 Turnkey Telecom Solutions: .................................................................................................................... 15 Fixed Line Network: ................................................................................................................................ 15 RF Network: ............................................................................................................................................ 16 BTS/ Tower Sites: .................................................................................................................................... 16 Power: ..................................................................................................................................................... 16 Civil Works: ............................................................................................................................................. 16 7) NLC Institutes .......................................................................................................................................... 16 NLC Institutes: ......................................................................................................................................... 17

Applied Technology Institute NLC: .......................................................................................................... 17 Philosophy:.............................................................................................................................................. 17 Objectives: .............................................................................................................................................. 17 Desired Standards: .................................................................................................................................. 18 Workshop Training .................................................................................................................................. 19 Interactive laboratory ............................................................................................................................. 19 Overseas Operations:.............................................................................................................................. 22 New and current projects: ...................................................................................................................... 22 NLC construction and engineering bridging the gap .................................................................................. 23 MATERIAL REQUISITION ......................................................................................................................... 25 INVITATIONS FOR QUOTATIONS ............................................................................................................. 25 When the material requirement is decided, invitations are sent to the suppliers either through tenders or other communication means. The interested suppliers send their quotations stating the specifications and their rates. ................................................................................................................. 25 COMPARATIVE STATEMENT.................................................................................................................... 25 When all the quotations are received then these are compared as per the quality, rates and other specifications. The suppliers which fulfill all the requirements are selected. ........................................ 25 PURCHASE ORDERS ................................................................................................................................. 25 After the selection of suitable suppliers, purchase orders are sent to these suppliers stating the quantity and other specifications of the required materials. ................................................................. 25 DELIVERY OF MATERIALS ........................................................................................................................ 25 After the receipt of purchase orders the suppliers make arrangements for the delivery of materials to be supplied. The materials are supplied at the site of the construction operations. Invoices are usually submitted with the materials or sent later on........................................................................................ 25 PAYMENTS .............................................................................................................................................. 25 BASE COURSE MATERIAL/SUB BASE COURSE MATERIAL ............................................................... 26 ASPHALT .......................................................................................................................................... 26 KHAKA, CRUSH, BRICKS, SAND, MARBLE ........................................................................................ 26 CEMENT........................................................................................................................................... 26 STEEL ............................................................................................................................................... 27 CABLES ............................................................................................................................................ 27 PVC PIPES ........................................................................................................................................ 27 ELECTRIC MATERIAL ........................................................................................................................ 27

LIST OF MAJOR RAW MATERIALS: .......................................................................................................... 30

National Logistics Cell

Modern multidimensional connoisseur

Introduction to Organization
NLC is a strategic development organization having business curiosity both at national and international arena and has achieved absolute distinction with its full blown professional designs up-to the entire satisfaction of its valuable clients. NLC's development strategies exploit the strength of the core businesses while evolving challenging activities. Through infrastructure development, provision of freight services, management of border terminals and strategic inland dry ports, manufacturing and retreading of tyres and spares, transparent revenue collection through ETTM, turnkey telecom solutions and state of the art technical institutes; they endeavor growth towards a self-reliant Pakistan. In more than 1,000 locations around the globe, they provide high-quality management of border terminals, manufacturing and engineering excellence, logistics and multi-dimensional freight services. They are there wherever we go -and with 12,000 employees and three decades of experience, they make sure things always go right.

History
National Logistics Cell, known by the acronym NLC, is a Pakistan-based company was raised on 6th August 1978 to reduce the congestion at Karachi Port, which had resulted in a waiting time of 50 days for the ships and was costing the Government $12.5 Million per annum in demurrage. In the process NLC introduced in the country the concept of containerization and became the largest multi-modal freight handler in the region.NLC also serves as the Crisis Management Arm of the Government to handle and diffuse logistics emergencies. In recognition of its services, NLC has been awarded Gold Mercury Award by the Government of Pakistan. This established reputation of the Cell has resulted in the assignation of mega engineering and construction ventures in Qatar, Afghanistan and other countries of the Middle-East. This has resulted planned expansion of its operations to Central Asian Republics, Turkey and Iran.

NLC Organogram
National Logistics Cell (NLC) runs its operations according to the following hierarchy:

NLC Engineering Support Team

The NLC Engineering Support Team is responsible to provide services to all Strategic Business Units (SBUs) of NLC and commercial market. It is engaged in the business of heavy engineering and light engineering works, manufacturing, fabrication, up-gradation of trailers, Bowsers and refurbishment of all kinds of vehicles. It also can provide the services in the field of project planning; project monitoring, vehicle assembling, feasibility studies and R&D assignments. NEST possesses strategic location adjacent to port area of Karachi which is financial hub of the country.

eNLC Program
Under the eNLC Program, the National Logistics Cell plans to create a fully networked, IT-enabled environment which will streamline business processes and will eliminate operational redundancies. Additionally, it will provide real-time accurate data for managing all our administrative and business functions. Using the latest web based technologies, NLC envisions itself transforming into a One Stop Shop for clients multimodal freight requirements. Clients will be able to make bookings on the Internet and view the progress of their goods from pickup point to final destination. In an environment where the customer continues to have increasing options, NLC plans to offer quality services that no one else can provide.

NLC Advertisement Board

NLC have established their advertisement board to inquire about their businesses and services which they offer to their valuable clients by providing contacts numbers of appropriate strategic business units (SBUs). Following are the advertisements: Tenders Admissions Announcements EOLs

NLC Pearl
(Expanding architectural possibilities)
NLC pearl concrete block manufacturing plant is located in chakshahzad, a five minute drive from zero point Islamabad. NLC pearl is a proud joint venture between the national logistic corporation (NLC) and the Redco Group. With over two decades of experience in construction, building materials and distribution, the two are the landmark in the business. NLC pearl is committed to meeting the growing needs of concrete blocks in the region. It has entered into agreements with various clients for the supply of concrete blocks. Large housing schemes and renowned construction companies are among its biggest potential clients.

NLC Products and Services

IN STEP WITH TOMORROW

Major products and services of NLC are: NLC freight services NLC engineering and construction NLC ports and terminals NLC polymers NLC tolling NLC telecom division NLC institutes

10

1) NLC freight services

In the last 29 years NLC has successfully accomplished safe transportation and speedy delivery of essential commodities throughout the country. NLC introduced the concept of containerization, which has changed the transportation culture in Pakistan forever. NLC Transport operations are conducted in a manner to ensure effective command and control through a state of the art 'Fleet Management System', real time monitoring of consignments through the most modern ' Tracking System' and a web enabled facility for customers' participation in tracking their consignments. NLC has initiated an ambitious program of establishing staging facilities on all the North South communication corridors of the country. Now NLC is one of the biggest Public Sector Transportation organizations in the world. NLC is also frequently employed by the government to handle emergencies in the national logistic cycle. Commodity shortages, natural calamities or transporters' strikes often put strain on the country's logistic system. NLC is then called into restore normalcy through professional handling of the crisis situations.

Dry Cargo Operations:

NLC specializes in transportation of containerized cargo and has the ability to deliver it within the country or trans-frontier. It also handles commodities such as fertilizers, wheat, rice, cotton and sugar from ports and production sites to consumption centers all over Pakistan.

Liquid Cargo Operations:

NLC is a major oil carrier for OGDC, BP and MOL. It lifts over 50% of the nation's crude oil production from the far flung oil fields where the private bowsers dare not venture. The crude oil is transported by NLC from oil fields to refineries at Karachi and Rawalpindi. NLC employs special carriers to transport liquid chemicals and other products.

Fleet Monitoring System

NLC is Pakistan's only road transportation organization to install fully computerized vehicle's monitoring system. The system facilitates in the identification of the location of cargo being transported, and in forecasting its arrival at destination. The system is being extended to enable customers to trace their cargo when transported by NLC.

Water Services

Provision of pure water in Karachi is one of the major problems of the metropolitan city. NLC has dedicated its bowsers for delivering pure water in Karachi and supplies over 3 million liters of water on a daily basis.

11

2) NLC Engineering and Construction

NLC Engineers is based on a sound human resource support program. It has been restructured to adopt cooperate culture and execute work with sound managerial control. To augment the skills and experience of its engineers, an intimate interaction with international construction firms is being maintained. NLC Construction is a well-recognized and highly reputed name in the construction industry. Raised in 1978, it today has the capacity to undertake mega Civil Engineering Projects both within and outside the country. NLC Construction is keeping itself in step with the technological developments in the construction field. Having more than 600 pieces of plant and machinery and highest number of engineers to one project, NLC Construction is executing projects in the fields of infrastructure, cis work, pipe and cable laying and water works.

Capabilities:
Based on the experience in handling multifarious projects for the last 32 years, Engineers NLC has acquired expertise and is well equipped in the following fields: Construction of sheds and silos for grain storage. Construction of highways & runway. Construction of bridges & other concrete works. Construction of petrol / oil storage tanks. Construction of building works. Laying of optical fiber cable.

Engineers NLC is fully equipped in machinery, equipment, plant and trained manpower to undertake any kind of above work. With the exception of Frontier Works Organization, no other organization, civil or government has such a large inventory. Manpower Machinery Lt Veh - 360 2857. 296

Overseas Wing:
NLC construction activities are no longer restricted within Pakistan. It is now also engaged in Qatar and Afghanistan in Pakistan mega projects of mixed high-rise construction are being implemented with foreign partners. A number of other overseas projects are in the pipeline and will be announced on maturity.

Conclusion:
An evaluation and assessment of the details given above will substantiate that within a short span of 32 years, Engineers National Logistic Cell have proved themselves as creditable, efficient and quality producing construction company. With firm commitment, display of high standard of professional acumen and expertise in planning/organizing, the Engineers NLC completed all projects of road construction/maintenance, laying of optical fiber cable and other assignments in a record time. This is an organization which can be relied upon for any sizeable construction project

12

anywhere in the country. Presently NLC is executing construction projects valuing more than Rs 66 billion.

3) NLC Dry Ports and Terminals

NLC is spearheading the drive to establish Dry Ports in Pakistan. It exclusively operates the Karachi and Hyderabad Dry Ports. In addition, NLC has established modern Container Freight Stations at Lahore and Amangarh (Nowshera). It has additional detachments at Sialkot, Multan, Faisalabad, Rawalpindi and Peshawar to meet the requirements of the business community. NLC also handles international freight transiting Pakistani ports and offers warehousing facilities to United Nations World Food Program, UNHCR, UNICEF and other donor agencies. NLC is also employed by the government to monitor and moderate Afghan Trade.

Warehousing

NLC owns both covered and open warehouses throughout the country. It offers covered accommodation of over 50,000 sq m and open warehousing facility of 0.5 million sq m for containerized cargo at Quetta and Amangarh (Nowshera). NLC is now launching a program of building additional ware housing capacity in the Rice Belt in Pakistan, especially in Gujranwala, Mured-ke and Shahdara.

Custom Clearance and Handling Facility

In order to provide one window operation to its customers, NLC is providing efficient custom clearance and handling services as per International Standards, with the assistance of Central Board of Revenue. This enables NLC to efficiently handle export cargo.

Scanners

NLC is installing container scanners all across the country on behalf of Central Board of Revenue (CBR). In the first phase 6 scanners are being installed. Subsequently the Scanners at Sialkot and Faisalabad will also be installed. This will facilitate the customers to conduct their business free of encumbrances of the post 9/11 security paradigm. These scanners are already functional at Port Qasim, Karachi and Lahore.

Modern Border Terminals

The government has decided to establish four modern border terminals on routes entering Pakistan. In order to promote trade through land routes, the border terminals will be fully automated with in-house scanners and online data management. NLC has been tasked to build these state of the art Border terminals at Wagah, Torkham/Jamrod, Chaman and Taftan. NLC has therefore acquired land in these locations to develop these terminals and provide ware housing and display centres. Thus, the Pakistani exporters will be able to display their goods closer to the zero point and will be able to strike deals with importers on the spot. The establishment of such

13

terminals would also meet one of the major requirements of trade facilitation in the region and promote land route trade among the countries of the region.

4) NLC polymers
To exercise economy in expenditure of tyres for uninterrupted movement of NLC fleet; NLC operates the NLC Polymers plant. This plant has the capacity of retreading 12,000 tyres per annum. In addition to meeting with the requirements of NLC, NLC Polymers also caters for the needs of major passenger bus companies in the country.

Introduction to NLC Polymers:

NLC polymers take pride in being one of the largest tyre re-treading plants in Pakistan. It is ISO 9001:2008 certified since 2003. It also has manufacturing facilities that specializes in automotive rubber parts and plastic products. The plant is equipped with latest machinery and employs skilled workers and staff.

What is Tyre Retreading:

Tyre Re-treading is the best way to get the full benefit of your money spent on Tyres. With the cost of less than 30% of a new tyre, NLC Polymers will put a new TREAD on your old tyre and then guarantee it for certain mileage. Re-treading is done on tyre size from 600-14 to 1200-20. Retreading is recommended in transport sector where expense of new tyres is the highest cost factor. NLC Polymers representative will visit your premises, inspect the tyres, arrange transportation of the tyres to the plant and return to customer after re-treading. NLC Polymers uses imported raw materials for Tyre Re-treading. The Quality of Re-treated tyre is strictly controlled.

Tyre Product Range:

Following products are being manufactured at NLC Polymers Gujaranwala:

Tyre retreading Bicycle tyres Floor mates Rubber parts Hose pipes

5) NLC Tolling
The credit of introducing tolling culture in Pakistan goes to NLC. Entrusted with the task of collecting toll tax way back in 1999, NLC took a number of steps aimed at increasing revenue generation and providing facilities to the commuters on national highways.Prior to 1999, toll tax on the national highways was being collected by National Highway Authority (NHA) through civilian contractors. The collection was alarmingly low and the toll plazas were in miserable conditions. Some of these toll plazas were running in loss as well.

14

Tolling Culture in Country:

In Feb 1999, the credit of introducing tolling culture in Pakistan goes to NLC. Entrusted with the task of collecting toll tax, NLC took a number of steps aimed at increasing revenue generation and providing facilities to the commuters on national highways. In the process of organizing the tolling operations, NLC tolling staff had to suffer extreme degree of public rebuke, civilian contractors and transporters threats, naked defiance, physical assaults and abuse. Nonetheless, the task was accomplished and NLC became the harbinger of bringing in toll culture in the country. Paying toll has now been accepted as a civic responsibility and is no more resistance in the area of operation of NLC.

Revenue Generation by NLC:

As per National Highway Authoritys Annual Reports, NLC remains the highest Toll Collector for NHA. The professional and efficient handling of tolling operations by NLC has not only introduced a healthy competition in the tolling sector but the general public also now view paying toll tax as civic responsibility.

State of the art ETTM System and CCTV Cameras:

NLC is operating ETTM system with the trained manpower and recovering the toll tax with 98% efficiency. Besides this, in order to eradicate corruption CCTV cameras are also installed to view the activity of Toll Plazas anywhere in the country.

Training of Tolling Staff:

NLC Tolling has trained staff over 1000 working on various Toll Plazas. Apart from on job training at the Toll Plazas under the supervision of Toll Plaza Manager, a school is being run for training of Tolling staff under management respective Tolling Projects for following staff: Newly inducted employees (operational and management). Technical training for operating ETTM system

6) NLC Telecom Division

NLC Telecom Division is specialized in laying optical fiber network connecting major cities of Pakistan, maintenance of fiber optical network, Microwave installation and maintenance for both defense and commercial customers .Complete turn-key solution from civil work, tower erection, generators, electrification and commissioning of Electrical, optical fiber and Microwave equipment.

Turnkey Telecom Solutions:

Keeping in view the ever growing trust of NLCs clients, its encouraging profile and vigorous experience / potential to provide State of the arts Telecom services, NLC have dedicated team of quality professionals to cater the needs of ever demanding Telecom Sector. The aim is to provide Turnkey Solutions of all Telecom requirements with emphasis in following fields:

Fixed Line Network:

OFC Network Design.

15

OFC Network Engineering. OFC Network Deployment & commissioning. Operation and Maintenance.

RF Network:
RF Network Designs. RF Equipment procurement/ Provision. RF Network Deployment & Commissioning. Operation and Maintenance.

BTS/ Tower Sites:

Provision of Towers. Installation of Towers & Steel Structures. Equipment Room Construction. Provision & Installation of Microwave & Satellite Links. Operation and Maintenance.

Power:
Power Budget/ Audit. Power Gen sets Supplies/ Installation. Batteries / Rectifiers all type. Renewable Energy Solutions. Operation and Maintenance.

Civil Works:
Construction of communication bunkers at BTS/ Tower site. Construction work during erection of tower. Construction work for renewable energy.

7) NLC Institutes
Pakistan is experiencing a very rapid economic growth, especially our construction industry is growing at a very fast pace. Our human resource capital in civil engineering field is under tremendous pressure, consequently construction managers are finding it difficult to get well trained tradesmen. To offset the adverse effects caused by non-availability of trained manpower, NLC has decided to launch its own technical training institute by the name of Applied Technologies Institute NLC. Applied Technologies Institute NLC in Mandra (Punjab), is striving to create a pool of skilled manpower that will be available for NLC in particular and other construction organizations of our country in general. Vision for creating this institute is in line with the governments endeavors to add value to abundantly available human resource. NTB is also working to promote technical education to masses; therefore, NTB and NLC have joined hands to promote this noble cause. It has been mutually decided that NLC will also run short courses in collaboration with NTB for a period of 30 months.

16

NLC Institutes:
NLC is operating two state of the art institutes to build professional and technically trained man power. The institutes are offering quality technical education enabling student to compete in national and international job market. Also impart from skills, making them capable of starting their own small businesses. Applied Technology Institute NLC NLC Driving School Dina.

Applied Technology Institute NLC:

ATIN is located on GT Road at Mandra about 40 Kms south of Rawalpindi. The institute has been established over 20 Acres land provided by NLC. The institute has got spacious class rooms as well as land for outdoor training, well equipped workshops, Bachelors hostel and adequate sports facilities.

Aim:
The aim of this institute is to excel in the field of technical education.

Mission:
To impart quality technical education enabling student to compete in national and international job market. Also from impart skills, making them capable of starting their own small businesses.

Philosophy:
Applied Technologies Institute will transform the challenges from ever growing market into opportunity to excel from our counteraction organization, by converting raw manpower into a welltrained technical trained force. Establishment of ATIN is a humble beginning; it is planned that initially ATIN shall provide quality technical education to unemployed and down trodden citizens of our country thus adding value to this precious human resource. Training shall be intensive, practical, specialized and quality orientated. Teaching staff shall be responsible for every single trainee and when a student passes out from this institute, he shall be a thorough and well groomed professional. Each day shall bring a measurable improvement in training and administration of the institute. Soon, 3 year diploma classes shall start later on. ATIN plans to bring the institute to college level and in long term plans to develop it into an Engineering University of International Standard.

Objectives:
Objectives of this institute are as following: Motivate, advocate and facilitate individuals to acquire marketable technical skills and provide them matching certification. To produce skilled manpower equipped with market and demand driven competencies thus support government effort to reduce poverty and add value to human resource.

17

Inculcate professionalism and work ethics. Promote good engineering practices. Promote systematic skill development in line with international standards. To augment the technical competent human resource Pool of NLC in particular and country in general.

Desired Standards:
The desired standards for short courses are as follows: Understanding the basic principles of the trade. After understanding the basics develop overall concepts. To apply the theoretical concepts to practical situations. Work independently on small projects. Form basis for advanced learning.

Courses:
Following courses being conducted at the school on a regular basis: AUTO MECHANIC COURSE. AUTO ELECTRICIAN COURSE. WELDER (GAS & ELECTRIC) COURSE. BUILDING ELECTRICIAN COURSE. PLUMBER COURSE. STEEL FIXER COURSE. CIVIL SURVEYOR COURSE. QUANTITY SURVEYOR COURSE. COMPUTER COURSE / AUTO CAD.

NLC Driving School Dina:

National Logistics Cell (NLC) Driving School Dina was established at 25 acres of land, equipped with modern training facilities in 2003 on GT Road at Dina near Jhelum. The school has the unique distinction of being the only and pioneer institute of its kind in Pakistan, solely dedicated to impart professional training to the driving segment of NLC in particular and the public Sector in general. Dynamic programmed encompassing state of the art equipment, modern driving track, driving simulators, dedicated and professional instructional staff and congenial atmosphere are the hallmarks of the school. The school is committed to develop its students into proficient drivers and responsible citizens with a passion to contribute towards the objective of safe driving and tolerance on the roads. So far this school has trained 983 NLC heavy vehicle drivers.

Objectives:
The primary objective of the school is to provide high quality, comprehensive training that is compatible with the changing needs of technological advancement and ever increasing density of

18

traffic on roads. Through our well deliberated training program, the school prepares its students to meet the challenge of driving in diverse road conditions, all types of terrain and weather conditions. A strong foundation of knowledge, discipline and practical skills. Safe driving through improved road sense and adherence to Highway Code. Sufficient knowledge pertaining to effective maintenance of vehicles. Skills to eradicate minor roadside faults and trouble shooting. Conversion of driving skills in specialized vehicles. Internationally recognized driving skills. Ability of crisis management and hazard perception. Adoptability to working environments. Sense of being representatives of NLC.

Faculty:
The school is run by a professionally qualified Commandant. Lectures and practical on first Aid and accident management are conducted by a Medical doctor.

Facilities:
The school offers the following training facilities: Simulator Training The school has a twenty seater Driving Simulator of Japanese origin. Simulators help a driver to achieve the following without practically going on the road: Learn driving under calm and clean environment. The console is static yet the mind, senses, hands/feet of the driver is engaged as he is physically driving a vehicle. Driver can develop his skills in road sense, Highway Code and use of accessories. NLC Driving School Dina also boasts of a miniature model of actual terrain where students practice the application of Highway Code on Pakistan roads in various depicted situations.

Workshop Training
The workshop is equipped with components of various systems and parts of the vehicles and engine. Here the students are imparted training on fault finding and troubleshooting of minor faults en-route.

Interactive laboratory
The school is equipped with state of the art computer lab. The students are trained interactive essentials of driving on latest computer software which covers the following: Theory of driving in shape of question / answers. Practical driving to practice, rehearse and refresh driving skills.

19

Hazard perception and management.

Track Driving The school has a 2.5 KM driving track of international standards depicting all possible road conditions, obstacles and hazards. Drivers are trained extensively on the track to make them proficient for day/night driving before embarking on national highway and motorway.

Courses:
Following courses being conducted at the school on a regular basis: LIGHT VEHICLE TRANSPORT (LTV) COURSE. HEAVY VEHICLE TRANSPORT (HTV) COURSE. EXCAVATOR OPERATOR COURSE. MOTOR GRADER OPERATOR COURSE. WHEEL LOADER OPERATOR COURSE.

Class Rooms
Comfortable class rooms for lectures, theory and discussions.

Boarding
Good quality facilities are available for 80 students.

Messing
Separate dining hall and recreational facilities are present on the campus.

Sports
Facilities for activities like volleyball, badminton and cricket are available.

Award of Certificate
At the end of the course, a certificate is awarded to the student along with evaluated grades in various aspects of driving.

NLC Engineering & Construction (our area of

concern)
NLC construction is a well-recognized and highly reputed in the construction industry. It rose in 1987, and today it has the capacity to undertake mega civil engineering projects both within and outside the country. NLC construction is keeping itself in step with the technological developments in the construction field. Having more than 600 pieces of plants and machinery and highest number

20

of engineers to one project, NLC construction is executing projects in the fields of infrastructure, cis work, pipe and cable laying and water works. NLC develop a compatible rail/road infrastructure and sustain a meaningful logistic system. Basedontheexperienceinhandlingmultifariousprojectsforover3 decades,EngineersNLChasacquiredexpertiseinthefollowingfields: Constructionofshedsandsilosforgrainstorage. Constructionofhighways&runways. Construction of bridges &other concrete works Construction ofpetrol/oilstoragetanks. Construction of building works. Laying ofopticalfibercable. in machinery, equipment andplanttounder-take

EngineersNLCisfullyequipped anykindofabovework.

NLC Engineering & Construction has been divided into three divisions: PROJECT DIRECTORATE NORTH PROJECT DIRECTORATE SOUTH PROJECT DIRECTORATE PUNJAB

PD North is headquartered in Rawalpindi and it covers all the projects in the AJK. Some of the prominent projects under PD North are as follows: DHA Phase-I Expansion Army Public School and College Swabi Cadet College Chika Gali Project POF Wah

Following are some of the projects that PD North has completed recently: Chandni Chowk Flyover Rawalpindi Golra Road

PD South is headquartered in Karachi and looks after the whole province of Sindh. PD Punjab has its headquarter in Lahore and it has recently completed the mega project of Lahore Ring Road.

21

Overseas Operations:
There is also a separate division of NLC Engineering & Construction for the overseas operations which is controlling various construction projects in Saudi Arabia and Qatar. Engineers National Logistic Cell has proved themselves as creditable, efficient and quality producing construction company. With firm commitment, display of high standard of professional acumen and expertise in planning/organizing, the Engineers NLC completed all projects of road construction/maintenance, laying of optical fiber cable and other assignments in a record time. This is an organization which can be relied upon for any sizeable construction project anywhere in the country. Presently NLC is executing construction projects valuing more than Rs 66 billion.

New and current projects:

Keep in touch with the latest developments of NLC are:

March 2012; NLC Completes Construction of ChandniChowk Fly- Over in Record Time 127 Days. Detail: While ensuring highest possible quality of works and standards, National Logistics Cell completed the construction of ChandniChowk in record time of 127 days. Chief Minister Punjab, Muhammad Shahbaz Sharif inaugurated the Flyover for general traffic on 10 March 2012. The Flyover will facilitate around 168,600 commuters daily on the busy Muree Road and adjacent localities of Commercial Market, Satellite Town, Rawal Road etc. The Flyover also provides easy access to ambulance services commuting to Benazir Bhutto Hospital and makes available clear way for Rescue 1122 emergency services.

o o o o o o o o

Salient Features of the Flyover Flyover Length i/c Ramps Width of Bridges No of Lane No of Piles No of Girders No of Piers No of Spans

587 Mtr 22.6 Mtr 6 116 234 24 26

November 2011; NLC Completes Construction of Multan Road Lahore Detail:

22

National Logistics Cell (NLC) has completed improvement / rehabilitation of Multan Road from ThokarNiazBaig to Scheme Mor in face of heavy odds like traffic congestion, illegal encroachments and shifting of utilities etc. The project was inaugurated by Chief Minister Punjab Muhammad Shahbaz Sharif on 30 Oct 2011. The total length of the project is 7.7 km whereas construction of 7 Pedestrian Steel Bridges, 7.7 kilometers Open Drain and 15.4 kilometers New Jersey Barriers constitute part of the project. As many as 557 Street Light Poles have been installed along the road while 480 Electric Poles were relocated. The completion of the road will facilitate around 150,000 commuters of the areas located on the intersections f ThokarNiazBaig, Multan Chungi, Grid Station Chowk, Scheme Mor, ChowkYatimKhana and Saman Abad Mor.

NLC construction and engineering bridging the gap

NLC construction activities now no longer restricted within Pakistan. It is now also engaged in Qatar, Saudi Arabia, and Afghanistan. In Pakistan mega projects of mixed high-rise construction are being implemented with foreign partners. Within a short span of 30 years, national logistic cell has proved themselves as a credible, efficient and quality producing organization.

23

SERVICE CATEGORIES
(At NLC Construction and Engineering)

NLC Engineering & Construction provides various kinds of construction services, major categories being as follows: ROAD WORK BUILDING WORK REDEVELOPMENT WORK BRIDGES MISCELLANEOUS ITEMS (WALLS, SEWERAGE SYSTEMS) ELECTRIC WORK

24

NLC Procurement Cycle

The procurement process is vital for any organization for the smooth and efficient operations. Procurement Cycle of NLC Engineering & Construction consists of the following major steps:

MATERIAL REQUISITION
Whenever a project is approved and selected, the quantity surveying section estimates the material requirements for the project. if new material is required, a material requisition is generated stating the quantity, quality and specifications of the materials required.

INVITATIONS FOR QUOTATIONS

When the material requirement is decided, invitations are sent to the suppliers either through tenders or other communication means. The interested suppliers send their quotations stating the specifications and their rates.

COMPARATIVE STATEMENT When all the quotations are received then these are compared as per the quality, rates and other specifications. The suppliers which fulfill all the requirements are selected. PURCHASE ORDERS After the selection of suitable suppliers, purchase orders are sent to these suppliers stating the quantity and other specifications of the required materials. DELIVERY OF MATERIALS After the receipt of purchase orders the suppliers make arrangements for the delivery of materials to be supplied. The materials are supplied at the site of the construction operations. Invoices are usually submitted with the materials or sent later on. PAYMENTS
The final stage in the procurement process is the payment of the invoice or bill sent by the suppliers.

25

List of Major Suppliers

(List of different raw material received from different suppliers)

There is no fixed supplier for most of the materials. The suppliers are selected as per requirements from time to time. Well have a look at different raw materials and the usual suppliers of these materials in the following.

BASE COURSE MATERIAL/SUB BASE COURSE MATERIAL

Base course material is the major and basic raw material used in the construction of Roads. It is a combination of stones and clay which is laid in the base of the road. All over Pakistan the base course material of Margalla Hills is famous for its quality and consistency. There are numerous contractors in the Margalla Hills for the base course material. The PD North division usually obtains the base course material from the following two suppliers: M/S Pothohar Stone Crushing Plant Khwaja & Co.

ASPHALT

Asphalt is the combination of concrete and the black oil used in the tar coal. This is also a basic raw material of the Roads. For NLC, it is supplied by two companies: NRL ARL These are basically two parts of the same company, NRL being subsidiary of ARL. PD North usually obtains asphalt from ARL due to proximity of its operations in the area. But sometimes the contract demands the asphalt from NRL for its better quality.

KHAKA, CRUSH, BRICKS, SAND, MARBLE

These are also basic raw materials for various types of construction. The contracts for the supply of these materials is are also usually given to M/S Pothohar and Khwaja & Co.

CEMENT

Askari Cement is the authorized supplier and dealer of Cement for NLC. but usually only large contracts and orders are given to Askari because it demands payments in advance and NLC usually doesnt make advance payments. So, the smaller orders are given to the smaller cement companies for immediate or rapid delivery on the spot purchase basis.

26

STEEL

Steel is a major raw material for most constructions especially buildings and bridges. historically following are the major suppliers of steel to NLC: M/S Pothohar Steel Industries M/S Fazal Steel Industries Pakistan Steel Most of the contracts are given to the Pothohar Steel Industries for their better quality with lower rates due to past dealings.

CABLES

Recently NLC has started taking up the contracts of Electric Installations. Electric Cables are an essential material for these projects. Following are the major suppliers of cables to NLC: M/S New Age Cables M/S Pak Cables PTCL Most of the contracts are assigned to M/S New Age Cables due to favorable past dealings.

PVC PIPES

These pipes are used for the installation of electric wires and also for the water channels in different sizes and specifications. M/S Shafisons, also called Betapipe, are the major supplier of pipes to NLC.

ELECTRIC MATERIAL

Much of the other electrical materials like electric lights, distribution units, electric panels etc are supplied mostly by the following suppliers: Siemens Pakistan Philips Electric Industries Broadway

27

Supplier Selection Criteria

(Of NLC Construction and Engineering) Procurement Committee of National Logistic Cell (NLC) is responsible for all dealings with their suppliers (Colonel Saadat Shabir Dar is looking after the procurement.). They have established detail criteria for supplier selection. Because quality products and services are their promise, in order to fulfill their promise they never compromise. The supplier selection criteria is composed of following steps Terms and Conditions The firm shall be pre-qualified on the basis of information and terms and conditions mentioned below, according to evaluation criteria mentioned below:-

Clause

Mandatory

Evaluation Criteria (Maximum Marks)

a.

Full Name and Address (Telephone / Email of the firm) Complete profile of the firm Detail of Human Resources. Firms experience in last 5 years of handling business as per scope of work. Financial status of the firms with annual turn-over during last 5 years. Proof of taxes paid during last 5 years in Pakistan / Abroad.

Nil 15 15 30

b c d

30

10

28

Total marks Eligibility marks

100 70

Applications are invited for prequalification from local/foreign firms, who have the relevant experience / know how / capabilities to undertake the work. Eligibility marks There are total 100 marks; in order to qualify a firm must gain 70 marks. It is the basic criteria for selection. Eligibility Criteria The firms are also required to abide by the following terms and conditions. Incomplete / conditional and late received applications will not be considered. Procurement Committee reserves the right to accept or reject any or all applications without assigning any reason / justifications. After completion of short listing of firms the tender for procurement as per mentioned scope of work will be published later [as per PPRA (Public Procurement Regulatory Authority) rules]. Only qualified / short listed firms will be eligible to take part in the tender. The decision of Procurement Committee shall be final and will not be challenged in any of the court / forum. Firms must have not been blacklisted by any department of Government of Pakistan / Autonomous body will be honored. Soft copy of application and above mentioned related details will also be required along with hard copy duly signed, sealed and endorsed by the CEOs of the firms. Any other information can be obtained from the suppliers officer on any working day during office hours. Application must be delivered / received to office within 15 days of publication of advertisement (before 11:00 hours) and will be opened at 11:30 hours on the same day in the presence of the bidders. Applications received late will not be entertained.

29

Raw Material Received From Suppliers

(At NLC Construction and Engineering)

For construction NLC require resources or materials in order to make it a reality from different authorized suppliers. In construction, a material that going to be used varies depending on building. Construction materials can be generally categorized into two main sources, the natural resources and synthetic (artificial products).

LIST OF MAJOR RAW MATERIALS:

The major raw materials differ as per the category of construction work being carried out. Some of these are as follows:

BASE COURSE MATERIAL/SUB BASE COURSE MATERIAL KHAKA ASPHALT CRUSH BRICKS CEMENT SAND STEEL MARBLE STONES CABLES PVC PIPES

30

Logistics
(In NLC Construction and Engineering)

Logistics is the process which is of prime importance for any business involved in the handling or movement of any kind of goods. It requires not only skilled human resource but also a significant amount of monetary resources. An efficient Logistics system contributes to the firm value. NLC Engineering & Construction which requires extensive logistics operations as it has to handle a lot of building machinery and material, but it has chosen not to establish its own Logistics operations because it didnt want to have another area which requires considerable resources to manage. It has also not outsourced this operation. What it does is that while ordering any material and demanding quotations, it requires the rates of goods and materials inclusive of transportation charges. So the logistics of all materials and goods is the responsibility of the party supplying them. These are delivered at the site of construction where make shift arrangements are made to store them. On-site logistics are carried out by the labor with the help of the equipment available for this purpose.

Inventory Management Technique

(In NLC Engineering and Construction)

Inventory management is a crucial function for any business involved in material handling. Efficient inventory management system not only bears less cost but also ensures timely availability of every item of inventory necessary for the operations of business. This guarantees the smooth business operations and profitable use of inventory.

Due to the running nature of the business of NLC Construction & Engineering in terms of a single project, the materials maybe required from time to time. So the safety stock technique is used here.

31

at the outset of any project, the material demand is estimated with a sufficient room for wastages and contingencies. But the safety stock is not measured in any terms, either days or amount of work. Rather it is a tentative guess of the quantity surveyors who are responsible for estimating the various types of material needed for a particular project. Larger quantities are not ordered in a single order due to storage problems (addressed in the following). Quantity surveyors give a tentative plan of the required materials at different stages and the orders are placed accordingly. Inventory costing method is average cost but sometimes the FIFO method is also used and this may vary from project to project.

Warehouse Management Technique

(In NLC construction and Engineering)

Warehousing is also an important process in the supply chain of a business. Goods and materials are stored in the warehouses for meeting the regular as well as future and contingent needs. as the construction operations of NLC Construction & Engineering are not limited in a specific area and it may require to carry out the construction operations in any part of the country, it is not feasible for it to have large warehouses for all the materials used in its construction operations. Otherwise the transportation cost from the warehouses to the changing operation sites might be very high and also time consuming. as an alternative strategy, like most of the construction companies, NLC Construction & Engineering stores its building materials on or near the site at a suitable location. Sheds or temporary rooms may be built on site for the sensitive materials and equipment if the construction work is of a longer duration. Some storable items of routine use are stored at the irregular stores at the offices and sub offices of the company i.e. wherever they find a suitable place. The basic motive behind this strategy is to incur as little cost as possible for the storage.

32

Information System Used

(In NLC Construction and Engineering) Information is one of the most important resources of an organization having great value for the organization. The regular and efficient flow of information is essential for the smooth operations of an organization. While any hurdle in the flow of information at any level can have adverse effects on the performance of the organization. so an efficient and effective information management system is essential to have in every organization. Initially there was just a manual record keeping and sharing system at NLC Construction & Engineering and also over the whole NLC organization. Now a separate MIS department is working at NLC under the control of a director. For the last five years, the organization is trying to integrate all its units and operations through the SAP ERP Systems but it is not fully functional still, due to the lack of technical skills among the existing employees. Training programs are organized from time to time for familiarizing the employees with the new system but desired results have not been attained so far. At NLC Construction & Engineering, customized software is used for managing the Accounts, whereas the rest of the record keeping is still manual. So we can say that the organization is still not fully integrated internally. And on the external side also, there are no integrated linkages with the suppliers or customers. The formal communication means are used for the orders and contracts.

33

GENERAL SUPPLY CHAIN

(Of NLC Construction and Engineering)
Like any other large organization, the supply chain of NLC Engineering & Construction is also quite complex, consisting of a large number of materials and a large number of suppliers to choose from for each material. but there is one striking difference which is on the demand side i.e. there is not a huge list of customers for NLC. it performs the construction operations only for the Federal and Provincial Governments within Pakistan and doesnt go for private projects. however, the overseas operations can be though off as private projects. at the same time, the span of its supply chain is not very wide and is limited only to the first tier suppliers and customers.

SUPPLIERS (1st tier)

NLC Engg. & Const.

CUSTOMERS (1st tier)

the supply chain operations of NLC Construction & Engineering are also not integrated with either the suppliers or the customers. formal means of communication are used between the above mentioned supply chain members in the process of Contracts of Orders, so there are no concerns with the profitability of any of the supply chain members. As there is no concept of supply chain management in the organization, so there is no clearly defined supply chain strategy. But with careful observation of the operations of the company, its strategy can be regarded as the Efficient Supply Chain Strategy because no extra efforts are seen to be responsive towards the customers.

34

EXECUTIVE SUMMARY
Construction industry plays a major role in economic development in the less industrialized nations since it constitutes a significant portion of both GDP and of employment. Indeed, the creation of physical facilities constitutes more than one-half of the gross domestic investment of both developed and developing nations. The construction industry also plays a key role in satisfying a wide range of physical, economic and social needs and contributes significantly to the fulfillment of various major national goals. The industry's size, the nature of its operations and its presence in every developmental activity make it an attractive area for the transfer, adaptation, and development of technologies consistent with the developmental goals of emerging nations. In this report we discussed one member of construction industry, National Logistic Cell which is playing a vital role in Qatar, Afghanistan and other countries of the Middle-East and also in Pakistan. In Pakistan National Logistic Cell has raised on 6th August 1978 .It is a strategic development organization having business curiosity both at national and international arena and has achieved absolute distinction with its full blown professional designs up-to the entire satisfaction of its valuable clients. This report comprise the supply chain management of NLC, various methods of information collection were adopted, which include interviewing senior officers of NLC, internet and, more importantly, our own observation. Our report consists of introduction of NLC, history, organogram ,operations of various departments in detail, organization Supply Chain Structure, major suppliers, products or services (infrastructure development, provision of freight services, management of border terminals and strategic inland dry ports, manufacturing and retreading of tyres and spares, transparent revenue collection through ETTM, turnkey telecom solutions and state of the art technical institutes) ,raw material received from different suppliers, supplier selection criteria, procurement cycle ,logistics,

35

information system ,information flow chart ,inventory management technique, warehouse management technique and some general information about supply chain.

CRITICISM
There are some major weaknesses and violations in the operations of NLC Construction & Engineering. Some of prominent points of criticism are as follows: they are not managing their supply chain, in fact there is no concept of supply chain management in the organization. there is no integrated information management system. level of nepotism and favoritism is very high and contracts are usually given on the basis of references.

36

REFERENCES
Following are the major sources of our information which helped in the compilation of this report. http://www.nlc.com.pk/websitef.nsf/about.html Mr. Adnan Zafar, assistant manager finance. Mr. Shakeel Ahmed, junior officer finance.

37