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INTERNSHIP REPORT
SUPPLY CHAIN MANAGEMENT
ORGANIZATION NAME: KOT ADDU POWER COMPANY LIMITED
WRITTEN BY: SANA ULLAH
ID NUMBER: F2019005001
PROGRAM: BBA (H)

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Table of Contents
ACKNOWLEDGEMENT ............................................................................................................................................... 3
Introduction to Organization......................................................................................................................................... 3
OPERATIONS................................................................................................................................................................ 4
ORGANIZATIONAL STRUCTURES .........................................................................................................................6
Vision Statement ............................................................................................................................................................. 8
Mission Statement........................................................................................................................................................... 8
DECISION MAKING IN OPERATIONS.................................................................................................................... 8
SUPPLY CHAIN DEPARTMENT................................................................................................................................ 8
CONTRACTS AND PROCUREMENT .......................................................................................................................9
Tendering process ......................................................................................................................................................9
Procurement Steps:...................................................................................................................................................10
Information Gathering:............................................................................................................................................10
Supplier Contact: ......................................................................................................................................................10
Background Review:.................................................................................................................................................10
Negotiation: ...............................................................................................................................................................10
Fulfillment:................................................................................................................................................................10
Consumption, Maintenance and Disposal:...............................................................................................................11
Renewal: .....................................................................................................................................................................11
Working Process in Purchase Department in Kapco: .................................................................................................11
Requisition:................................................................................................................................................................12
Invitation for tender..................................................................................................................................................12
Tender opening and analysis of offers:.................................................................................................................... 13
Authorization from Technical Engineer and Finance manager for budget:........................................................ 13
Placement of order:................................................................................................................................................... 13
Payments: .................................................................................................................................................................. 13
Performance record:.................................................................................................................................................14
Call off orders: ..........................................................................................................................................................14
Additional Rates: ......................................................................................................................................................14
Urgent or Emergency Purchase:..............................................................................................................................14
Reorder level: ............................................................................................................................................................14
Reorder quantity:...................................................................................................................................................... 15
Import/Export Section:............................................................................................................................................. 15
Procedure for import purchase: .............................................................................................................................. 15

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Payments Terms:....................................................................................................................................................... 15
Direct payments: .................................................................................................................................................. 15
Letter of Credit Establishment: ..........................................................................................................................16
Elements of a LC:.................................................................................................................................................16
LC Characteristics:..............................................................................................................................................17
Commercial Documents: ..........................................................................................................................................17
Custom Clearance:....................................................................................................................................................17
Export cum Re-import Process:...............................................................................................................................17
Proforma Invoice: ................................................................................................................................................18
Bill of Entry (G.D GOODS DECLRATION):....................................................................................................18
Supplier’s Letter: .................................................................................................................................................18
Indemnity Bond (I.B):..........................................................................................................................................18
Packing List:.........................................................................................................................................................18
Airway Bill (AWB):..............................................................................................................................................19
Custom Clearance:....................................................................................................................................................19
PROCEDURE TO ISSUE ITEMS FROM STORE:............................................................................................. 20
PROCEDURE OF STORE ISSUE:........................................................................................................................ 20
Certification of ISO: ......................................................................................................................................................21
Supplier Registration Process:......................................................................................................................................21
Suppliers de-listing: ................................................................................................................................................. 22
Responsibilities:........................................................................................................................................................ 22
SWOT Analysis of KAPCO: ........................................................................................................................................ 22
Strengths:.................................................................................................................................................................. 22
Weaknesses:...............................................................................................................................................................23
Opportunities: ...........................................................................................................................................................23
Threats:..................................................................................................................................................................... 24
PEST ANALYSIS:........................................................................................................................................................ 24
POLITICAL:............................................................................................................................................................ 24
ENVIRONMENTAL:.............................................................................................................................................. 25
SOCIOCULTURAL:............................................................................................................................................... 25
TECHNOLOGICAL: .............................................................................................................................................. 25
EXECUTIVE SUMMARY: ......................................................................................................................................... 26

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ACKNOWLEDGEMENT
In this world, it is impossible to achieve perfection in any area of life. Almighty Allah's
guidance enables man to see light in the dark and navigate in that light. Mankind is merely
a helpless creation without this light of salvation. The guidance we receive from the
teachings of the Holy Prophet Muhammad (PBUH) is unwavering. Our key motivations
are, in particular, his directives to learn and to carry out his responsibilities with diligence.
I am really appreciative to Almighty Allah for allowing me to complete this report in such
a short amount of time while receiving training from his actual organization, KAPCO. I
want to extend my gratitude to all of Kapco's staff members.
I am also grateful to Mr. Azeem Asif (A.F. Controller), Mr. Nazir Ahmad ch. (Manager
HR) Mr. Zubair Aslam (Manager Tax & Treasury), Mr. Anas Farhan (A.F.C Tax), Rizwan
Butt (A.F.C), Mr. Bilal (Manager C&P), Mr. Hamid Hassan (Supervisor HR), Mr. Ch
Saleem (Supervisor Accounts), Mr. Abdul Malik, Mr. Rana Saleem, Mr. Atta Muhammad,
Mr. Shabir Ahmad and Mr. M Aslam for encouraging me during my internship.
Introduction to Organization
((COMPANY PROFILE))
In addition to other emerging nations, Pakistan too experiences ongoing energy shortages.
In order to meet Pakistan's growing need for electricity, WAPDA has launched the KOT
ADDU THERMAL POWER STATION project in 1987. This energy project has been
finished thanks to the use of cutting-edge technologies.
In Kot Addu, a tiny town in central Pakistan, Kot Addu Power Company (KAPCO) runs a
1600 MW combined cycle power plant. When British strategic investor International
Power received his 36% stake and managerial control from Pakistan's state-owned energy
utility, the Water and Power Development Authority (WAPDA), the company was
privatized in June 1996.
The Kot Addu site is located in the District of Muzaffargarh, 100 kilometers to the northeast
of Multan, on the left bank of the INDUS River, 16 kilometers away from TAUNSA

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BARRAGE. The residential colony, which has spread across an additional 200 acres, has
over 900 homes, a hospital with ten beds, staff and officer's relaxation areas, two shopping
malls, a bachelor dormitory, three guest houses, two schools with over 1,400 students, and
three mosques.
On the north and west sides of Kot Addu, agricultural land surrounds the area. There are
several nearby locations covered in wind-blown sand dunes that have grown over time.
These sand dunes are also progressively being turned into farmland.
Apart from the aforementioned, there were very few educational institutions in the area
before to the construction of this Power Station, which has since roughly doubled and is
now operating inside of Kapco's boundaries. The residents now have access to the
necessities as well.
OPERATIONS
Owning, running, and maintaining a 1600 MW multi-fuel (gas, fuel oil, and diesel) thermal
power plant in Kot Addu, Punjab, is the primary business activity of the company. The
company only has one customer, Central Power Purchasing Agency (Guarantee) Limited,
to which it sells the electricity produced at its power plant (CPPA-G).
The power plant owned by the firm is Pakistan's biggest combined cycle power plant. Ten
multi-fuel gas turbines and five steam turbines make up the facility, which were installed
between 1985 and 1997 in five stages. He grouped these turbines into three power blocks,
each of which had a mix of steam and gas turbines. Due to the combined cycle technology
employed in the plant, waste heat from the gas turbine's exhaust may be utilized to create
steam in the heat recovery steam generator, which can then be used to run the steam turbine
and save money on fuel. Waste is kept to a minimum.
The power plant is a multi-fuel gas turbine that can produce electricity using gas, diesel,
and high speed diesel. Additionally, even during a widespread power outage, internal
power generation is still feasible.

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General Data of the Units
Gas Turbines Manufacturer Capacity (MW)
IDC
Fuel Installation
year
GT-1 Siemens Germany 95 Gas / HSD / LSFO 1987
GT-2 Siemens Germany 95 Gas / HSD / LSFO 1987
GT-3 Fiat Italy 82 Gas / HSD 1987
GT-4 Fiat Italy 82 Gas / HSD 1987
GT-5 GE-Alsthom France 79 Gas / HSD / LSFO 1988
GT-6 GE-Alsthom France 82 Gas / HSD / LSFO 1988
GT-7 GE-Alsthom France 77 Gas / HSD / LSFO 1988
GT-8 GE-Alsthom France 79 Gas / HSD / LSFO 1988
GT-13 Siemens Germany 106 Gas / HSD / LSFO 1994
GT-14 Siemens Germany 106 Gas / HSD / LSFO 1994
Steam Turbines Manufacturer Capacity (MW)
IDC
Fuel Installation
year
STG-9 ABB Germany 87 No Fuel 1991
STG-10 ABB Germany 97 No Fuel 1991
STG-11 GE-Alsthom France 76 No Fuel 1995
STG-12 GE-Alsthom France 82 No Fuel 1995
STG-15 Siemens Germany 120 No Fuel 1996
Total Load (IDC): 1345 MW
Total Load (ADC): 1360 MW

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ORGANIZATIONAL STRUCTURES

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Over 280 hectares make up the power plant complex. There are three distinct blocks, each
independent of the other as was already mentioned. Each block has equipment made by
several manufacturers and employing various technologies. The facility is run by the
production department, while the maintenance department is in charge of doing
major/minor overhauls, diagnosing issues, and preventative maintenance as needed. A
useful structure is the face. The production and maintenance departments offer the services
required for business, and professional tasks like finance, procurement, IT, human
resources, CS, legal affairs, and general affairs are shared. The manufacturing division has
a separate core organization.
The maintenance department is separate for each block and is further broken down into
three functional areas. Mechanical, "Instrument and Control," and electrical systems. A
senior engineer is in charge of each feature. Block 1's maintenance team is under the
direction of Resident Engineer 1, and Blocks 2 and 3's maintenance team is under the
direction of Resident Engineer 2. The Assistant Resident Engineer, who reports to the
Resident Engineer, is a new post in Block 3. Both the Resident Engineer and the Assistant
Resident Engineer are subordinates to the Senior Engineer in this block.
MANAGEMENT STRUCTURE

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Vision Statement
Our goal is to become a top power production firm that satisfies the needs of its clients and
goes above and beyond for its investors.
Mission Statement
Be an ethical businessperson.
To maximize profits to shareholders.
A trustworthy and affordable power source for you.
Outperform yourself in terms of environment, quality, and safety in every way.
Establish a work atmosphere that fosters pride, job satisfaction, and equal career
progression possibilities for all employees.
DECISION MAKING IN OPERATIONS
Operations managers make many choices as they deal with various decision areas.
Although the basic steps include:
Find the issue and give it a precise definition.
Collect the data you'll need to evaluate your options.
Choose and put into practice the best option.
Sometimes all you need is to sit quietly and contemplate for a while. If not, you will need
to use more formal processes. Break-even points, prioritization matrices, decision theories,
and decision shells are some of the several techniques employed.
SUPPLY CHAIN DEPARTMENT
Supply chain management, which covers all procedures that convert raw materials into
completed commodities, is the management of the movement of goods and services. To

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optimize consumer value and establish a competitive edge in the market, this entails
aggressively optimizing a company's supply-side operations.
The goal of supply chain management is to coordinate an organization's operations with
those of its suppliers so that the flow of goods, services, and information may be adjusted
to meet customer demand. By regulating the flow of materials, supply chain management
primarily serves the objective of controlling inventory.
CONTRACTS AND PROCUREMENT
In order to directly benefit a government, corporation, or individual, procurement refers to
the provision of goods or services in the appropriate quantity and quality, at the appropriate
time and location, and at the highest feasible total cost of ownership is to obtain the
business activity of acquiring inputs for outputs and other goods and services a company
need is referred to as purchasing. This task is frequently carried out in the purchasing
departments run by purchasing managers in big businesses. Raw materials, labor
expenditures, professional services, transportation, and storage of purchases are all
considered purchases. When making purchases, especially when it comes to assets,
businesses often conduct a cost-benefit analysis. The purchase contract specifies the terms
of payment, the kind and amount of the goods, delivery dates, prices, and the duration of
the orders. To choose the best supplier for a purchase, businesses try their best to draw on
past experiences with contractors and maintain records of performance with various
providers.
TENDERING PROCESS
A bidder's process may be part of the procurement process. Bidding, H A business might
invest in certain goods or services. If the price of this good or service is greater than a
predetermined limit (for example, Company X policy: "If you desire a good or service
beyond Rs. According to the specifications, Company X must state: To begin the bidding
process, please enter the requested good or service. Ten submitters may list the prices of
the goods and services that Company X wishes to offer. Typically, Company X goes with
the lowest bidder. Company X will choose the vendor with the next best pricing and
capability to offer the desired product/service if it is determined that the lowest bidder is
unable to do so.

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PROCUREMENT STEPS:
A sourcing method known as global sourcing aims to take advantage of global production
efficiencies. While the process of global procurement traditionally started as a way to use
geographic arbitrage (or, to put it another way, to find cheaper worldwide sources), it has
since evolved into a necessary stage in a company's global expansion. It is the advantages
of global sourcing can include finding alternate suppliers, using buffer capacity, and
using particular local talent pools.
Procurement life cycle in modern businesses usually consists of seven steps:
INFORMATION GATHERING: You'll need to discover a vendor that can match
your needs unless your prospect already has a relationship with the vendor's
sales/marketing skills for the desired product or service (P/S).
SUPPLIER CONTACT: Once one or more appropriate suppliers have been found,
submit a request for quotes (RFQ), request for proposals (RFP), request for information
(RFI), and invitation to tender (RFT), or get in touch with the supplier.
BACKGROUND REVIEW: All follow-up service requirements, including
installation, maintenance, and warranty inquiries, are looked into and product/service
quality standards are referred to. It is possible to study a sample of the P/S under
consideration and run tests.
NEGOTIATION: Pricing, availability, and customization options are being
negotiated. A purchase agreement is signed for the P/S when a delivery date has been
agreed upon.
FULFILLMENT: The supplier shall prepare the P/S, ship it, deliver it, and pay for it
in accordance with the conditions of the contract. It's also possible to include installation
and training.

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CONSUMPTION, MAINTENANCE AND DISPOSAL: As the P/S and
related service support are used, the company assesses their performance throughout this
phase.
RENEWAL: When P/S is used up and discarded, when a contract is about to expire, or
when a good or service is backordered, the Company evaluates its experience with P/S.
The business will choose whether to use the same supplier going forward or look for a
different one when placing a P/S on backorder. Various civil, electrical, mechanical,
security, and other colonial-related contracts and purchases are handled by the Contracts
and Procurement Division. Machinery, spare parts, and chemicals are examples of
commodities. Everything that the other departments need must be purchased by this
department as well. B. Office supplies, equipment, and cars. Services include things like
equipment upkeep and repair, technological devices such as computers, assembly, and
more.
Working Process in Purchase Department in Kapco
Different activities are performed during the purchase process in Kapco, which are like
these:
 Identification of Requisition
 Stock verification of Inventory in stores
 Selecting potential suppliers or contractors
 Invitation for tender
 Tender opening and analysis of offers.
 Authorization from Technical Engineer and Finance manager for budget purpose.
 Placement of order
 Payment (including taxes)

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Maintaining records through software. All Kapco Employees must act in a manner that
maximizes Kapco's interests. Therefore, no employee commits to purchase anything
related to the property without Procurement's involvement.
REQUISITION:
This is a crucial stage in the purchasing process. All of the information regarding the kind
and quantity of products needed is included in a purchase requisition. It also includes
information on the costs of past purchases. Each block's technical manager makes a request
using a predefined "buy request form" and sends it to the purchase manager for processing
whenever there is a request for equipment. The quantity of items is listed on the "Purchase
Request Form." Quantity necessary Description of the purchase, product code, anticipated
cost, suggested supplier or contractor, and signatory information, etc.
STOCK VERIFICATION:
Employees use software called Q4W Inventory to check the store's inventory after
receiving and confirming the request. A fresh request number is also given for future
processing.
SELECTING SUPPLIERS OR CONTRACTERS:
The choice of a supplier or contractor is a crucial duty for Kapco, and procurement
managers assess vendors based on factors like experience, problems with quality control,
etc.
INVITATION FOR TENDER:
Requests are sent out to various bidders by the procurement department. In the event of an
emergency, a courier email request can be issued along with these. Buyers shall ensure that
all bidders shall be handled equitably. General terms and conditions are also included in
the tender.

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TENDER OPENING AND ANALYSIS OF OFFERS:
Your offer will be deposited in your offer box after being received in a sealed envelope.
The Finance and Purchasing departments retain the keys to the two locks that secure the
bidder's box. Due to poor offers or widespread agreement, the bidding committee will open
bids twice. The bid will be endorsed and signed by the bid committee. Then, the
procurement team creates analytical comparative statements.
AUTHORIZATION FROM TECHNICAL ENGINEER AND
FINANCE MANAGER FOR BUDGET:
Our technical staff will get a comparative statement, review the technical concerns and
historical purchase rates, and confirm which corporate brand it is. The report is
subsequently forwarded to procurement for further action along with any comments. The
purchasing manager then bargains with the supplier or contractor for price reductions and
establishes agreements with them. The Purchasing Assistant will assign a budget code after
receiving the file. If the purchase is fresh, a new code is assigned; otherwise, an old stock
code is supplied to every item. The file is delivered to the finance department for budget
approval of payments after a budget code has been assigned.
PLACEMENT OF ORDER:
The purchasing department places orders with the top-chosen suppliers after the talks are
through and the finance department has given the budget its approval. Lead times, payment
conditions, package terms (ex works, C&F, FOB), and delivery locations all make up an
order.
PAYMENTS:
Once the company has received sufficient confirmation from the purchasing department,
payment is typically made within 30 days. Banks are used for all transactions. It may be
possible to pay in advance, but it depends.

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PERFORMANCE RECORD:
To evaluate the effectiveness and fair treatment of its suppliers, KAPCO designed a
questionnaire. Verifiable proof must be provided by new providers. In two years, KAPCO
will use this questionnaire.
CALL OFF ORDERS:
The order's status as an "on-demand order" and the order period must be expressly stated
in the specification. These are typically renewed yearly. Similar to any other order, the
bidding and on-call procedures are followed, however if KAPCO gives up, the need is
"cancelled" on-call.
ADDITIONAL RATES:
It is corporate policy to negotiate a new price with the supplier when changing the price of
these items for a make and hold order if necessary due to any factor (inflation, currency
change, etc.). Its suppliers, and thus the business, are accustomed to handling these
situations with ease.
URGENT OR EMERGENCY PURCHASE:
Since Kapco is a manufacturing company and we employ numerous machinery in our
facilities, there is always a chance that an emergency will arise when using these machines.
For this reason, engineers are permitted to submit urgent requests. Such measures are
justified if you lack the time to complete the official procurement process and choosing not
to buy the goods or services will subject your business to unacceptable commercial or
operational risks (safety, environmental, availability, production loss or damage).
REORDER LEVEL:
The level of various items is decided by engineers after discussion with the purchasing
division. In other words, it's the quantity the engineer wants to buy brand-new.

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REORDER QUANTITY:
At the reorder level, an engineer may ask for this quantity. A technician can request 10
products if there are 2 items left in stock, for instance, if the backorder quantity of one item
is 2 and the backorder quantity is 10. This level may be altered, but an engineer or budget
officer must complete the as-built description form.
IMPORT/EXPORT SECTION:
The Procurement Department's main component is the Import/Export Department. Because
the import department completes the delivery procedure, customs clearance, etc. whenever
an order is placed with a supplier, if the supplier is located abroad. Similar to this, export-
cum-reimport refers to the practice when Kapco sends its own machinery abroad for
repairs. And the process is completed by the import/export section.
PROCEDURE FOR IMPORT PURCHASE:
A person who imports things is known as an importer. Every time an order is placed, the
supplier will submit an invoice to the importer. His H.S. code, mode of payment, and
delivery date are listed on this invoice.
PAYMENTS TERMS:
The purchase order includes payment terms that clearly state KAPCO's obligation to make
payments. Payment for local purchases can be done in advance or after the delivery of the
products, whereas KAPCO rules allow for a variety of payment methods for imports which
are following:
 Direct payments
 Letter of credit
Direct payments:
The money will be transmitted to the exporter's bank's electronic funds transfer system if
KAPCO arranges prepayment with the exporter.

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Letter of Credit Establishment:
In order to facilitate transactions, a letter of credit replaces bank credit with consumer
credit. A LC is a legal agreement made by banks, also referred to as issuing banks, on
behalf of one of their clients. Give another bank, referred to as the advising bank or the
confirming bank, permission to transfer funds to the beneficiary. The consumer asks the
issuing bank to obtain a letter of credit.
KAPCO also pays exporters using letters of credit. Typically issued by a financial
institution, a letter of credit gives the beneficiary an irrevocable payment obligation to the
governing document indicated in the instrument.
How it works
In response to a request from Seller, Seller's bank or a correspondent bank in Seller's city
will get a letter of credit from Kapco's bank.
In accordance with the bill of lading for sea freight or the air waybill for air freight, the
seller will deliver the items to the carrier.
In exchange for payment, the seller will give the bank his commercial invoice, packing list,
and bill of lading. These documents are exchanged between the seller's bank and her
KAPCO's bank, who then sends them to her KAPCO for payment. KAPCO will deliver
the items to the carrier and issue the bill of lading/air waybill.
Elements of a LC:
 Bank responsibilities to make payments on the buyer's behalf.
 Pay the seller a set sum of money (beneficiary).
 While presenting documentation demonstrating that the products were delivered within a
predetermined window of time.
 The requirements outlined in the LC must be met by the documents.
 Documents that have a specified location requirement.

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LC Characteristics:
Negotiability: Commercial papers are readily exchanged between parties.
Revocability: The issuing bank may modify a revocable letter of credit at any moment
without providing a reason.
Irrevocability: A letter of credit that is irrevocable cannot be amended without the
approval of the beneficiary, issuing bank, and confirming bank.
Whenever the LC is finished and a representative of company n gets in touch with the
supplier to inquire about delivery schedules. The supplier will respond with the change if
they want to alter the LC.
COMMERCIAL DOCUMENTS:
The clearinghouse will receive the authorization letter for pickup and customs clearance.
The supplier will send the arrival time, air waybill, packing list, date, and port as soon as
it is finished. Because you need these papers in order to get the airline's delivery order. The
importer gives the documentation to the customs broker.
CUSTOM CLEARANCE:
Whenever a representative creates a received invoice after receiving a delivery order. An
index number will be given to the agent by Customs. In order to confirm the HS code and
related S.R.O., the agent will send a copy of the invoice that was received. Token numbers,
machine numbers, and A/P bills are checked using a customized computer system. The
inspector inspects the products as specified on the receipt, and the supervisor marks the
inspection rating. The Chief Appraiser will finalize the invoice after completing the HS
code and the value of the goods. The distributor will ship the merchandise to Kapco
following customs clearance.
EXPORT CUM RE-IMPORT PROCESS:
Export cum re-import means, export for the purpose of re-import. Purchase order must be
raised before export purpose. To export the goods for refurbishment, we must have

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1. Proforma Invoice
2. Bill of entry
3. Supplier’s letter
4. Indemnity bond
5. Packing List
6. Airway Bill/BL
Proforma Invoice:
Inco Terms, Original Payment Terms, Shipping Terms, and HS Code are all required to be
included on this business invoice. LC or another will be established in accordance with the
chosen conditions for payment.
Bill of Entry (G.D GOODS DECLRATION):
As was mentioned earlier in the Import Procedure, the Agent creates the Bill of Entry.
Supplier’s Letter:
An arrival notice will be sent by the supplier once the goods are finished. The whole
calendar of delivery times and dates is included in these arrival notices.
Indemnity Bond (I.B):
For export and re-import purposes, the Pakistani government is legally required to require
a security deposit. This forces the business to import the identical machinery within a
particular time frame after refurbishing it. Otherwise, the corporation will be responsible
for paying all taxes on the claimed equipment's original worth.
Packing List:
All export items are listed in detail on the packing list. The listing will display each box's
gross and net weight as well as its box number, item description, and box number.

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Airway Bill (AWB):
The price charged for the item will appear on the air waybill. There are several models that
are utilized, including CBM, measure, and kilograms units.
Commercial Documents for re-import:
The Clearing House will receive a power of attorney for collection and customs clearance.
The supplier will send the arrival time, air waybill, packing list, date, and port as soon as
it is finished. Because you need these papers in order to get the airline's delivery order. The
importer gives the documentation to the customs broker.
CUSTOM CLEARANCE:
Whenever a representative creates a received invoice after receiving a delivery order. An
index number will be given to the agent by Customs. For some equipment, the cost of an
overhaul is tax-only at 5%. To confirm her S.R.O. associated with the HS code, the agent
will send a copy of the invoice she has received. Token numbers, machine numbers, and
A/P bills are checked using a customized computer system. The inspector inspects the
products as specified on the receipt, and the supervisor marks the inspection rating. The
Chief Appraiser will finalize the invoice after completing the HS code and the value of the
goods. The distributor will ship the merchandise to Kapco following customs clearance.
STORES PROCESS:
The buying division oversees seven branches. One store manager is in charge of these
stores, which are all managed by three store owners and their assistants. These stores have
roughly 3,145,198,445/- inventory levels that are managed by software and are referred to
as Q4w inventory. Store names are listed alphabetically from A to G.

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Store No Inventory Level
A 369,748,367/-
B 313,628,998/-
C 311,991,535/-
D 606,563,699/-
E 338,177,178/-
F 352,000,263/-
G 753,088,405/-
TOTAL 3,145,198,445/-
PROCEDURE TO ISSUE ITEMS FROM STORE:
Each department at Kapco received a "ISSUE BOOK" from the store department. The
department making the request fills out a form provided by the store and gets the manager's
approval. The branch provides the chosen department with the necessary commodities. The
relevant entries are then made in the emissions register and software by the warehouse
manager. The store issuance slip is created in three copies, one of which is maintained by
the department, two of which are given to the treasurer, and three copies of which are kept
in the company's books.
PROCEDURE OF STORE ISSUE:
The responsible warehouse manager requests that technicians inspect the goods and
materials when they are arrived at the warehouse. The quantity and caliber of the materials
will be examined and verified by engineers. The supplier will be informed immediately if
the material is refused. Each department at Kapco receives its own expense ledger from the
retail department.
The store issue slip is sent by the relocation department and needs to be signed by both the
department manager and the store manager. The store owner types the items into the issue

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computer and issues them to the designated department. Store-issued slips are available in
three copies. Three copies are preserved in the company's records, two copies are delivered
to the finance department, and one copy is kept with the relevant department.
Certification of ISO:
According to the regulations of the International Organization for Standardization,
KAPCO has been accredited for three years for a number of standards, including Quality
Management ISO 9001-2000, Occupational Health and Safety OHSAS 18001, and
Environmental ISO 14001.
Departments generate quarterly reports to examine their performance, and annual
reports to review the company's performance as a whole.
On-call agreements are also made with the Procurement Department and have a set
cost for a predetermined time.
For acquisitions below $10,000, we advise the Single Tendering Process.
Small incidental purchases should only be made with petty cash.
If formal procedures can be completed in time, immediate or emergency action will
be done. For this purpose, fill out the urgent request form.
Supplier Registration Process:
Utilizing questionnaires for vendor evaluation, procurement departments register vendors.
The supplier returns to the department after completing a questionnaire. The department
then assesses suppliers based on their relationships with other businesses, quality
certificates, etc.

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SUPPLIERS DE-LISTING:
Questions about prior experience, production facilities, quality, health and safety
procedures, and financial data are all included on the supplier evaluation form. Quality,
timing of delivery, etc.
RESPONSIBILITIES:
 CEO is responsible to Board of director for inventory management and control at
Kapco GTPS site.
 Procurement Manager via General Manager (Finance) is responsible to the CEO
for inventory.
 Store manager is responsible to procurement manager.
 General Manager, Maintenance manager, operation and sectional heads are
responsible for inspection of inventory.
SWOT Analysis of KAPCO:
STRENGTHS:
 Kapco has trained, devoted, and hardworking personnel. Additionally, the
atmosphere is really welcoming.
 Extremely low turnover since we provide the best benefits to our employees.
 IMS by SGS's ISO 9001, 14001, and 18001 certifications.
 Resources for people. Our junior staff members' computer and communication
skills are being developed.

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 He rates the combined cycle power plant that KAPCO runs as one of Pakistan's
greatest power plants.
 Computerized processes replace all manual ones.
 For a quick and effective system, use the most recent software.
 The Health and Safety Department makes sure that all of our personnel are
completely safe.
 The price of Kapco's stock will never be lower than when it was first issued.
 Our store is the biggest in Pakistan.
 Access to top management is simple.
WEAKNESSES:
 Because WAPDA is the only customer, the supplier is required to make deliveries
as requested by WAPDA.
 Pay tax starting in 2006 after the first ten years of exemption.
 Pay tax starting in 2006 after the first ten years of exemption.
 There has been no increase in electricity production over the past ten years;
 There has been no increase in electricity production over the past ten years;
 Junior staff members' poor computer and communication abilities.
OPPORTUNITIES:
 All expansion packages offered by KAPCO are tax free.
 All expansion packages offered by KAPCO are the importance of this power plant
has dramatically increased as the entire nation struggles with electricity issues,
which has an impact on the stock price.
 On his 400 MW expansion project, KAPCO is working.

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 The technology advancements that will determine the organizational structure of
Kapco in the future are the company's primary concern. Because those who
effectively use technology in the future will live.
THREATS:
 The safety conditions in Pakistan are very important as Kapco has to import
equipment, spare parts, and professional services from abroad. Several other power
projects are pending in Pakistan.
 The safety conditions in Pakistan are very important as Kapco has to import
equipment, spare parts, and professional services from abroad. Several other power
projects are pending in Pakistan.
 Due to new competitors' stronger offers, Kapco’s management will encounter
numerous technical workforce issues.
PEST ANALYSIS:
POLITICAL:
 Foreign engineers applying to KAPCO are impacted by domestic political unrest.
 There are also reports that the government will privatisation his remaining shares
in KAPCO, despite the fact that the company was privatised days before the present
federal administration.
 The corporation may be impacted by a variety of demands relating to privatisation
and power purchase agreements.

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 If the government enacts laws that have an impact on his Wapda, KAPCO will
suffer as a result.
ENVIRONMENTAL:
 The government is in charge of ensuring the supply of oil and gas; if it does not,
electricity production will cease.
 The corporation is impacted by additional power plant policies pertaining to
employee benefits packages.
 Wapda is the only customer of the business, so production is maintained in
accordance with his needs.
SOCIOCULTURAL:
 The business is particularly careful with its waste (water, smoke).
 The majority of non-engineers hired come from rural areas.
 In KAPCO City, the company opened a free firefighting facility.
 The business also pays special attention to the environment, staff health, and safety.
TECHNOLOGICAL:
 The corporation may be impacted by changes to how electricity is produced.
 After being privatized in 1996, the company completely digitalized its
infrastructure. Different kinds of software are used by the business in various
departments to reduce the likelihood of error.

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EXECUTIVE SUMMARY:
Up until 1996, Pakistan's national power production and transmission were completely
controlled by the government. The state's Water and Power Development Authority served
as the government's operating arm for the project (WAPDA). The previous administration
made the decision to gradually privatize his WAPDA in 1996. Owing to the WAPDA's
excessive inefficiency and promotion of foreign investment in Pakistan.
When the government sold his 26% investment in International Power England through a
public tender with the opportunity to buy an additional 10%, Kot Addu Power Company
was founded in June 1996. International Power England also acquired this 10%. As a result,
a new firm called "Kot Addu Power Company" was founded in June 1996.
280 hectares of land make up the energy complex. There are three distinct blocks, each
housing equipment from various manufacturers employing various technologies. The
facility is run by the production department, while the maintenance department is in charge
of doing major/minor overhauls, diagnosing issues, and preventative maintenance as
needed.
The predictions made by the corporation are wholly dependent on those made by WAPDA.
Forecasts are mostly produced for various maintenance procedures. Forecasts are often
produced regarding the availability of raw materials. H. High-speed diesel, furnace oil, and
plant machinery spare parts.
This company keeps a 21-day supply of high-speed diesel and blast furnace oil on hand.
We also keep a lot of spare components on hand. There is an adequate supply chain
management system within the organization.
The primary objective of the organization is to produce the necessary amount of energy
according to customer demand without imposing any fees. By keeping its processes at a
high level of efficiency, the corporation demonstrates its commitment to quality. The
business has an ISO certificate.

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This business is replacing an outdated manual information system with a system based on
contemporary information technology. This system already has about 120 new computers
and servers deployed.
An extensive study of the procurement process is provided in this paper. This analysis
offers the chance to learn more about the organizational duties performed by KAPCO.