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Internship Report on Al-Ghazi Tractors 
by Commerce Solutions in Al-Ghazi Tractors, Internship Report 
EXECUTIVE SUMMARY: 
Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore. The area of factory, at D.G.Khan, 
is 100 acres approximately. It uses the product design of “FIAT” of Italy. The main purpose of the 
company is assembling and distributing of Fiat Tractors. They assemble two models of tractors i.e. 480-S 
and 640. The depletion rate of 480 is 85% and 640 are 76%. 
Forecasting entirely depends upon the marketing department. Previously 98% of sales was made by 
contract with ADBP but now it is carried out on net cash payment basis. Because delivery through ADBP 
has been stopped. Highway method is used for transportation purpose. 
To reduce inventory level they adopt safety stock method. They have different lead-time for different 
suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing inventory. Al-Ghazi Tractors 
Limited has a separate quality control department. The laboratory is well equipped to under take chemical 
and mechanical testing of metals. Al-Ghazi Tractors Limited has received the ISO 9002 Certificate. 
INTRODUCTION OF THE ORGANIZATION 
Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.They started operations in 
September 1, 1983. They started their production at D.G.Khan Auxiliary Plant in February 20, 1985. 
A Joint Venture of PACO and Habib Group, NDFC and Fiat of Italy controlled management from 
September 1983 to August 1990. It was incorporated as a public limited company with an authorized 
capital of 100 million divided into 20 million shares of Rs. 05 each. 
The joint project was first of its kind in pakistan in the line with govt policy of private sector partcupation 
in nation’s building program of high priority. Both public and private sectors worked together upto 1990 
and finallyl Al Ghazi Tractors limited was nationalized in the same years. 
Al-Ghazi Tractors Ltd. is rated among the Top Companies of Pakistan & has been the market leader of 
tractors in Pakistan Al-Ghazi consecutively for the years 1994, 1995 and 1996 by the Karachi Stock 
Exchange. Al-Ghazi Tractors was conferred the Management Excellence Award by the Management 
Association of Pakistan for demonstrating the best Corporate Performance in the Engineering Sector of 
Pakistan for the years 1995 and 1996. Al-Ghazi Tractors is the first Company in the Automobile sector of 
Pakistan to have achieved the highest quality award “The ISO 9002” registration that gives Al-Ghazi 
Tractors Ltd. the international recognition as Producers of Fiat and New Holland Tractors. 
With a strong dealer-network dotting the country form Karachi to Gilgit with over 300 service workshops 
to attend to the 100,000 Fiat Tractor Models 480-S and 640 and newly introduced model New Holland 
operating in the country. Al-Ghazi Tractors today is the market leader with bookings exceeding 50% of the 
total tractors market in the country. The company is capable of producing 15,000 tractors on a single 
assembly line.
PRIVATIZATION 
Al- Ghazi Tractors Limited was privatized on December 9, 1991 according to the new policy given by 
Nawaz Sharif government and it was taken over by a forgien investor Al-Futtaim of Dubai. 
Now, the Al- Futtaim group owns 54% of Al-Ghazi tractors limited.s shares where as FIAT held 42% of 
shares and 5% of shares are held by the employees in the local market. 
TECHNICAL COLLABORATION WITH ITALY 
FIAT has joint hands with Al-Ghazi Tractors Limited to fully furnish know-how and modern technoloogy 
in the manufacturing tractors as well as their components so that the company does not rely on imports 
thus saving foreign exchange of country. 
Al-Ghazi Tractors Limited is backed by FIAT technological expertise and has full support of italian 
government who are providing grants for assistance in the shape of personal training in pakistan. 
MISSION STATEMENT 
“ OUR ENDURING COMPETITIVE EDGE IS THE QUALITY OF OUR TRACTORS” 
MAIN OBJECTIVES OF AL-GHAZI TRACTORS LIMITED: 
Keeping in view the economic and structural conditions of Pakistan & the firm’s missions the company 
has formulated the following objectives: 
To reduce the expenditures in foreign exchange. 
To increase employment. 
To fulfill the government policy of promoting industrialization in the remote areas of the country. 
Contibution towards national self-reliance in engineering industry. 
To be able to satisfy customer’s needs of buying locally assembled vehicles. 
To achieve the production capability so that the cultivator may det his tractor readily. 
To pay sepacial attention to the quality of the finished products to get customer satisfaction. 
To provide prompt and effective after sale services and tactical advice together with adequate supply of 
spare parts. 
To achieve maximum localizaton of components . 
ORGANIZATIONAL STRUCTURE 
Organizational structure of Al-Ghazi Tractors Limited is that both chairman and CEO are appointed by 
the Board. The board appoints CEO for running of day to day matter of business in line with the 
company’s policy and delegation of athority table. 
Vital functions of board are the establishment of company objectives and approval of annual budget.CEO 
is also responsible for the corporate strategy and the formulation of long and intermediate term plans and 
programs. The CEO privides an integrating function for the entire organization. He gives the organization
right direction and purpose. For better survival and growth, group decision making through committees 
and meetings is a common practice of Al-Ghazi tractors limited. 
The organozational structure of Al-Ghazi Tractors limited is split into 5 functional areas; 
Personnel and administration 
Finance 
Material management 
Plant and production 
Marketing 
MAIN OFFICES: 
Main offices of the company are located in Karachi, Dera ghazi khan, Lahore, & Multan, where as regional 
offices are located in Nawabshah, Sukhar, Islamabad, & Peshawer. 
Karachi office: 
Karachi office is registered head office of the company. 
Functions: 
Material management 
Finance 
Personnel & administration. 
LAHORE OFFICE: 
It’s major function is marketing the product of the company. 
MULTAN OFFICE: 
It’s major functions are : 
Marketing 
After sale service. 
warranty activities 
provision of spare parts to lower punjab area. 
LOCATION 
The location of facility involves the committment of resources to long range plans. Locations take on even 
greater significance because those plans represent the basic strategy for assessing markets and may have 
significant impact in revenue, cost and service level to customers and clients. Technological constraints 
eliminate most of possible locations. Location of industry is selected on the basis of: 
Availability of inputs to products or raw materials on cheap prices and 
maximization of profits. 
Proximity to potential customers to be served. 
Proximity to required labor for performing the operations.
In plant location objective is to minimize the sum of all costs, not only current 
but also long term costs. 
LOCATION OF AL-GHAZI TRACTORS LTD. 
The location of Al-Ghazi Tractors Ltd. is about 12 kilometers on main Sakhi Sarwar Road from Dera Ghazi 
khan in the South Punjab. Total land area covered by the plant is approximately 100 acres.Plant is located 
at about 30 acres whereas the colony is spreaded over 70 acres of land. AGTL select D.G.Khan because 
Govt. gave option to AGTL to select either D.G.Khan or Khushab. Both were tax free zone. The location 
had been selected in early 80’s during the period of late President Of Republic Of Pakistan Gen. Zia-ul- 
Haq when it was declared free industrial zone for five years.Plant was inaugurated by Lt.General Saeed 
Qadir on jan 11, 1984.auxilary plant started it’s production on february 20, 1984. the main plant started 
it’s production on april 01, 1985. 
FACTORS 
Due to following factors the plant was selected at the above location. 
TAX FREE ZONE 
To promote the back-word areas of Pakistan certain areas were announced as tax free zones in all 
provinces. The district of Dera Gazi Khan was one of them. Habib and group decided to establish a tractor 
factory in this region. A factory “Al-Ghazi Tractors Ltd.” was established by joint venture of PACO, HABIB 
GROUP, NDFC, and FIAT of Italy in September 1983. 
FAVORABLE LABOR CLIMATE 
The labor plays an important role in the selection of the labor-intensive company. So the selection of this 
location was also favorable labor for construction of the factory. 
TAXES AND REAL ESTATE COSTS 
One important factor was that the real estate’s cost was too much lower as compared to other areas of the 
country. That was the other main reason for the selection of the site. 
CONSTRUCTION COST 
The major cost involved in any organization is in the shape of the construction costs. That took a large 
amount. But at that time the labor was available at the cheaper rate. Due to which the site was selected at 
that place 
PROXIMITY TO MARKETS 
It is located in the district Dera Ghazi Khan of province Punjab whose boundaries attaches to all four 
Provinces of Pakistan, especially the most fertile areas of Province Punjab and Sindh. So, it has more 
proximity to the market, as Dera Ghazi Khan and Multan Divisions are famous of being Cotton Belt. 
AVAILABILITY OF UTILITIES
The basic utilities are easily available at the place. The facility of fax, electricity, Sui Gas and telephone was 
provided by Govt. at that time to encourage the partners to establish plant there. So these utilities proved 
much helpful to contact with the global market at every moment is a key to success. The transportation 
facility is easily available at factory place. 
FACILITIES PROVIDED TO ATTRACT THE EMPLOYEES 
AGTL has the following facilities for his staff. Which are considered to be important. 
1-HOUSING FACILITIES 
It is having housing facilities for 126 family homes and quarters for executives and workers. The 
population of the staff colony is approximately 500. 
2-MOSQUE HOSPITAL AND SCHOOL FACILITIES 
There is a Mosque, Hospital with ambulance and AGTL primary school for the children of staff residing in 
the colony. AGTL is having a school bus for pick and drop services to school and college for the children of 
staff studying in Dera Gazi Khan City. 
3-UTILITY FACILITY 
Clean water supply with U.V filter and private electric generator for Un-interrupted power supply for the 
staff because the weather in summer is much hotter here. 
4-RECREATION CENTERS 
Recreation centers for executives, workers, children and ladies with indoor games TV, Videos, Dish 
Antennas and other facilities are available at AGTL staff colony. 
EMPLOYEES 
There are 536 employees which, are working in the factory. 
DEMAND FORECASTING 
“A forecast is the prediction of future events used for the planning purposes” 
. 
Forecasting has an important role in scheduling all the operations of the organization. Forecasting is 
based on qualitative as well as quantitative methods. Management needs accurate forecasting of demands 
to make schedule of all operations and to cope with lead-time of different and reduce inventory levels. 
Accurate forecast allows schedulers to use machine capacity efficiently, reduce production times, and cut 
inventories. 
FORECASTING TECHNIQUES 
There the four forecasting techniques are available for the purpose of the forecasting of the demand, 
which are as under.
Qualitative techniques 
Sales Force Estimate 
Executive Opinion 
Market Research 
Delphi Method 
Quantitative techniques 
Causal Techniques 
Regression 
Correlation 
Time Series Method 
Naive Method 
Simple Moving Average 
Weighted Moving Average 
Exponential Smoothing Method With trend & Seasonal Effect 
FORECAST AT AL-GHAZI TRACTOR LTD. 
There is no forecast method at Al-Ghazi Tractors Ltd. The advance booking period is normally six months. 
So, Head Office, Karachi, sends monthly production schedule to the factory according to the number of 
bookings. Al-Ghazi Tractors Ltd. has a strong dealers network from Karachi to Gilgit at the district level 
but the sale is done through ADBP. The bank prepared the draft and send to AGTL for booking. The plant 
is capable of providing 15,000 tractors per year. Whatever the demand is fulfilled by producing that 
required amount of tractors.In year 1999-2000 , the firm produced 18000+ tractors utilizing over time to 
meet the orders out of which 16366 were 480-S & 2049 were 640. 
FACTORS AFFECTING DEMAND 
There are two main types of factors affecting the demand of the tractors. 
External factors 
Internal factors 
External Factors 
Following are the external factors that affect the demand. 
ADBP’s loaning policies and procedures 
Climatical disasters such as floods 
Changes in govt. laws, regulations, polices and tariff structure. 
Economics conditions of the country 
Supply constraints of local and CKD components. 
Internal Factors
These factors are listed are follows 
High manufacturing cost and selling expenditures 
Promotion Policy 
Lack of professionalism in dealerships. 
PRODUCTION AND CAPACITY 
CAPACITY 
Production is essential for any organization’s continued existence and society’s well being General 
Manager (plant) is responsible for managing production and all its allied activities. 
The main features of production management at plant are 
Efficient execution of required production 
Maintaining quality in accordance with FIAT specification and standards. 
Producing goods at economical cost. 
Total capacity of plant is 15,000 tractors per annum. Full scaleProduction of FIAT tractor models 480-S 
and 640 commenced from April, 1985. The plant operates on high efficiency because assembly operation 
wastes are negligible. The optimum production level is 10,000 tractors and Al-Ghazi Tractors Limited is 
now having 50% market share. Al-Ghazi Tractors limited is using effective capacity i.e., maximum out put 
under realistic conditions and it implies one-shift operation. 
PRODUCTION DATA 
MODEL 
YEAR 
480-S 640 
1993-94 3686 1861 
1994-95 4400 2015 
1995-96 4415 2202 
1996-97 3841 1098 
1997-98 5375 913 
1998-99 10012 2188 
1999-2000 16366 2059 
INVENTORY MANAGEMENT 
“Inventory is a stock of anything held to meet the future demand” 
Al-Ghazi Tractor is manufacturing organization, the management gives more emphasis on raw material 
inventory and mostly inventory is held in terms of input products and raw material. Most of the inventory
is treated as dependent demand for the assembling. Here there is a separate Material Management 
department. 
MATERIALS MANAGEMENT 
“Materials management concerns short range decisions about supplies, inventories, production level, 
staffing patterns, schedules, and distribution”. 
Decisions in these areas affect the whole of the organization, either directly or indirectly. 
CENTRAL ROLE OF THE MATERIALS. 
As the AGTL is a manufacturing organization so they need the input material for the purpose of the 
production of tractors from the vendors in country as need as well as the foreign countries. This material 
takes round about the 80% while staff takes 20% of the resources of the organization. 
The other reason is the impact of inventory on the profitability of the organization. As on keeping more 
inventories the organization has to bear much more holding cost. 
FUNCTIONS OF THE MATERIAL MANAGEMENT 
The Sales, Vendor Development, Purchasing, Production Departments are tied collectively to perform the 
functions relating to the materials. The Sales Department makes the forecasts of the month, on the basis 
of orders paid by Agriculture Bank of Pakistan. Then these are send to the production department, then 
Production Manager makes the monthly production plan, then depending upon the production, they need 
the raw material which is asked by Sales Department to the Purchasing department, then this department 
makes the required purchasing plan. This plan is made for the purchase from the inside as well as from 
the foreign countries. The purchasing is made according to documented procedures of ISO 9002 
standards discussed in ISO 9002. 
OBJECTIVES OF INVENTORY MANAGEMENT 
Following are the objectives of the inventory management system. 
To minimize cost 
To maximize profits 
Reducing the possibilities of stock out 
Continuity in the production system 
To avail discounts 
TYPES OF INVENTORY MANAGEMENT 
The inventory can be divided into two broad categories. 
Raw Material Inventory. 
Finished Goods Inventory. 
RAW MATERIAL
The company needs raw material for the purpose of the production by the company can divide the items, 
which come under the raw material, into two broad categories. 
a) Imported material 
b) Local material 
1). IMPORTED MATERIAL 
The main items, which are imported by this company, are the gear cases and Engine and the critical items, 
which are necessary for the purpose of the production by the company. The company imports these items 
from Italy, Turkey. 
The raw material fall under this category for 
Model 480-S is 15% 
Model 640 is 24% 
2). LOCAL MATERIAL 
AGTL is having 359 vendors from all over the Pakistan. These vendors are responsible for providing the 
high standards products to the AGTL. This contains the main portion of raw material. These are also 
categories according to the Models 
Model 480-S 85% 
Model 640 76% 
REORDER POINT 
At any time the raw material of 200 tractors is present in the factory premises. Whenever the material 
falls below it a fax is sent to Head Office for more raw material. The reorder point in the company is the 
raw material of 200 engines of the tractors. 
LEAD TIME 
Lead-time is the time required for receiving goods from the suppliers. AGTL has two types of suppliers. 
Local suppliers 
Vendors from Lahore area have lead-time of 10 days. 
Vendors from Karachi area have lead-time of 30 days. 
Foreign suppliers 
Lead-times for foreign vendors from Italy and Turkey have usually 6 months. 
METHODS FOR INVENTORY MANAGEMENT AT AGTL 
ABC PLAN FOR INVENTORY 
AGTL uses ABC, system that is the process of dividing items into three classes according to their Rs. Value 
and usage.
Category A: 
A category includes those items that require largest money investment about 80 % of the overall 
investment while they account for only20 % only. It requires continuous review of the items included. 
It includes the following items 
1). Engine of tractor 
2). Gear box of tractors 
3). Imported items 
Category B: 
B category is the second important category includes those items that require second largest money 
investment about 15 % of the overall investment while they account for only 30 % only. It requires 
periodic review of the items included. 
It includes the following items 
1). Items used in transmission 
2). Nozzles 
3). Tires 
Category C: 
The last category is C category includes those items that require least money investment about 5% of the 
overall investment while they account for 50 % of all items. It includes items, which are prepared by local 
vendors. 
Quality Policy 
In Al-Ghazi quality is a dynamic state associated with the products, services, people, processes and 
environment that meets or exceeds the expectations of their customers and it is a strong edge on the basis 
of quality against the competitors. There is well-established Quality Control department in the company 
that assures quality by incorporating other departments. 
DEPARTMENTS 
There is well-established setup to ensure quality in the company. The following departments are directly 
concerned with quality assurance in the company. 
Quality Control department. 
Purchasing department. 
Inspection department. 
Production department. 
Vendor development department. 
There is a strong integration of all the departments to make assurance of quality at the every stage of 
whole the process starting from purchasing to final inspection of finished products.
QUALITY CONTROL IN PURCHASING 
About 85% parts of 480 model and 75% of 640 model are obtained from local vendors while the 
remaining parts are imported from Italy. For local parts the Vendor department gives drawing and 
material specification to Vendors. Samples are obtained from them and are sent to well establish Material 
& metallurgical Laboratory, which is situated in the plant for calibration of, required specification of the 
part and strength of the material. If the results are up to mark then ordered are placed to them. Otherwise 
engineers of the company assist them in solving the problems relating to strength and specification of the 
part. 
The purchased parts are inspected in the company and Karachi where company’s headquarter is situated, 
by taking sample among them on the following criteria. 
13 out of 100 items. 
32 out of 200 items. 
The specification of the items, quality and the strength of material of materials used in parts are checked 
by material and metallurgical engineers in the laboratory. If the items are 2% of the total sample are 
defective than the whole lot is not accepted. Then all the items are checked and cost of checking and 
inspection of these items is beard by the vendors and all defective items are replaced and repaired by the 
vendors. If defective items are less than 2% than all defective 
are replaced and repaired by the vendors. 
AL-GHAZI TRACTORS LIMITED D.G.KHAN 
Quality Control Department 
Sampling Plan 
0.65 
1.5 
04 
6.5 
LOT SIZE 
ACCEPTANCE QUALITY LEVEL
N K R N K R N K R N K R 
2-10 % % --- % % --- 03 00 01 02 00 01 
9-15 % % --- % 00 01 03 00 01 02 00 01 
16-25 20 00 01 08 00 01 05 00 01 08 01 02 
26-50 20 00 01 08 00 01 13 01 02 08 01 02 
51-90 20 00 01 13 00 01 13 01 02 13 03 03 
91-200 20 00 01 13 00 01 13 01 02 13 03 03 
201 & 
ABOVE 
32 01 02 32 01 02 32 03 04 32 05 08 
AQL FOR MACHINE PART = 1.5 
AQL FOR CASTED PART = 6.5 
N = # OF SAMPLES FOR INSPECTION 
K = ACCEPTABLE LIMIT 
R = REJECTED LIMITED 
AQL FOR HARDWARE 0-200 = 05% 
AQL FOR HARDWARE 201-500 = 03% 
AQL FOR HARDWARE 501& ABOVE = 02% 
AQL FOR HOOD ASSY. = 05% 
LIST OF COMPONENTS ACCEPTED ON FITMENT/FUNCTIONAL TEST 
Hudraulic lift 
Steering box 
Instrument cluster 
Hood 
Water body 
Fenders 
Self starter 
Alternatos (generators) 
LIST OF PARTS CHECKED OUTSIDE THE PLANT DUE TO LIMITED INSPECTION FACILITY AT THE 
PLANT 
Gear box 
Axle casing 
Oil sump
Piston 
Gears 
QUALITY CONTROL DURINDG WORK IN PROCESS 
As the lot is accepted on the basis of sample and it may be possible that there are some defective items in 
the lot, due to this during the process on assembly line these defective parts are identified and than 
Quality Inspector or the employees working on assembly line separate them out and latter than these are 
returned to vendors. 
The following are major activities/operations on the assembly line. 
1) Gear box checking 
2) Transmission 
3) Coupling of Transmission with Gear box 
4) Test Bench 
5) Coupling of Engine with Transmission 
6) First line 
7) Paint shop 
8) Second line 
9) Final inspection 
There is chained relationship among all above activities and operations. If one person fails to identify a 
defective item than the next one will identify it. The Quality Inspector is on the assembly line to check the 
quality of the items and to identify defective parts. 
FINAL INSPECTION 
In the last a group of Quality Inspectors examines the finished product. They check the paint and 
performance of tractors on the “Roller test” to check the gear, speed and working of the tractors. After it 
each and every tractor is checked on the road before the delivery. For this purpose meter reading is noted 
before and after the test. Each and function is checked in the Road Test. After it pre delivery test is 
completed. 
CHART ? 
TOTAL QUALITY MANAGEMENT
“Total Quality Management is an approach to doing business that attempts to maximize the 
competitiveness of organization through the continual improvement of the quality of its products, 
services, people, processes and environment”. 
In Al-Ghazi Tractors Ltd. management has been taking the following steps for Total Quality Management. 
1-EDUCATION AND TRAINING 
The management has established a training center in the premises of the company for training to the 
managers and workers to increase the performance at every level. This improvement in performance is 
directed towards satisfying such cross-functional goals as quality, schedule, and others activities. Before 
audit of ISO 9002 implementation in the company all the employees who are concerned with quality were 
given training so that all the employees could understand all the documented procedures, authorities and 
responsibilities of each other in the company. Some managers were sent to different seminars and 
workshops to learn about ISO 9002. 
Now a days the companies has introduced their new product New Holland tractor in the market. For this 
they are giving training to new hired employees about assembling of the tractor. 
2-TEAMWORK 
In Al-Ghazi there is strong existence of teamwork. These are the managed group of the employees doing 
their best competitive efforts to cope with the barriers, rivalries and distrust among different departments 
to improve the quality of the their products. In the company the employees have 
3-CUSTOMER FOCUS 
In Al-Ghazi all operations are directed satisfaction to both external or internal customers .The product 
produced, to the external customers is totally checked by the internal customers. The internal customers 
in Al-Ghazi check the quality of items, semi-finished goods during process because the work of one 
depends on the work that proceeds them. 
OBSESSION WITH QUALITY 
For obsession with quality the employees are trained from time to time to learn the philosophy “ how can 
we do better ” the suggestion given by the employees about quality are appreciated in the company. 
SCIENTIFIC APPROACH 
As the engine of the tractors are produced in Italy for Fiat and for New-Holland . From New-Holland 
Company which is a subsidiary of Fiat group. These both are operating 13 research and development 
centers located in Brazil, Belgium, Canada, England, India, and Italy, United States. Besides it both is 
directly operating 19 manufacturing centers and 26 sales offices around the world. These research centers 
are using scientific approaches to develop and modify their existing and new products. 
CONTINOUS IMPROVENENT OF SYSTEM
The management of Al-Ghazi tractors Ltd. has taken many steps to improve their system in order to 
continually improve the quality of products and services. Employees are trained from time to time and 
new technologies are adopted. Recently company has introduced hydraulic pressure engine in their 486 
and 640 models. 
A new product New-Holland has been introduced in the market that is symbol of new technology. 
EMPLOYEE INVOLVEMENT 
Employees are involved in all the matters relating to quality, purchasing and other functions of the 
company. It results in good decision making and more effective improvement by bringing more minds to 
bear the situation. 
PRODUCTION PROCESS 
The process design in the assembly line of tractors consists of the following operations an activities. 
Gear Box 
Transmission 
Coupling of transmission with Gear-Box 
Test Bench 
Coupling engine with transmission 
First line 
Paint shop 
Second line 
Final inspection 
1-GEAR-BOX 
Engines and many parts of the tractors are imported from Fiat manufacturers in Italy and Turkey. During 
the journey from Italy to the plant many parts of gearbox get loose. On arriving in the plant, during 
assembling certain operations are performed by technical individuals, are discussed as under. 
CLEANING OF CASE FROM INSIDE 
Here the case of gearbox is cleaned from inside because it is much effected due to dust. The dust is 
removed from inside the case by cleaning it with some dust-removing agents. 
COUNTER SHAFT NUT TIGHTING AND STAKING. 
Some parts of gearbox get loosed because of journey in ship and later on trucks. Here shaft is tightened 
and 
some other items are assembled to it. 
TRANSMISSION SHAFT COVERS TIGHTENING. 
After counter shaft nut tightening next the transmission shaft cover is tightened
because of above reasons. 
SPILTER TIGHTENING AND LOCK PLATE BENING. 
After transmission shaft cover tightening a splitter of weight of 9.5 kg is fixed into the 
Gearbox by tightening bolts and locking plates are bent. 
v) CHECK POSITION OF MAIN SHAFT INNER AND SEAL AFTER INSERTION OF 
P.T.O. SHAFT. 
It is a final operation in the gearbox checking. Here it is checked and assures that our 
shafts are on its right place or not, further corrective actions are taken to make it ready. 
Then gearbox is totally sealed after insertion of P.T.O. shafts. 
2-TRANSMISSION 
The following are the operations that are performed during transmission. 
i) CLEANING FROM INSIDE. 
Here nozzles that are to be fitted into gearbox are cleaned. Others parts are also cleaned and 
oiled. 
ii) BEVEL PINION NUT TIGHTENING. 
It is the second operation in transmission. Here the bevel pinion nut is tightened into the 
gear- box. 
iii) BEVEL PINION ROTATING TORQUE. 
Bevel pinion rotating torque is cleaned and made ready for assembling into the gearbox. 
iv) DRIVE HEAD TIGHTENING. 
Drive is a separate part, which is later adjusted to the gearbox, is tightened with some of 
other parts. 
v) BEVEL DRIVE ROTATING. 
Bevel drive rotating is cleaned and its specification is checked and is sealed by adjusting it 
into the gearbox. 
vi) BEVEL DRIVE BACKLASH. 
Here the bevel drive is recoiled so that it is ready for coupling to gearbox and engine. 
3-COUPLING OF TRANSMISSION WITH GEAR-BOX 
Here gearbox and all other parts, which are prepared in transmission, are coupled and the following 
operations are performed. 
i) GEARBOX WITH TRANSMISSION TIGHTENING. 
Here gearbox is coupled with transmission by tightening that integrates them. 
ii) FINAL DRIVES TIGHTENING.
Drive head, which is a separate part, is tightened into coupled gearbox and transmission. 
iii) BREAK PEDAL ADJUSTMENT . 
Here the position of break pedal is adjusted for both forward and back Tires with the engines. 
4-TEST BENCH 
Here the engine is checked to check that all its parts are at their its correct places or not, 
further actions are taken later on. 
i) OPERATION TEST. 
Here the engine is checked by engintioning it and the performance of the engines are 
checked to ensure its performance. 
ii) CLUTCH TO FLY WHEEL TIGHTENING 
Here the flywheel are checked and tightened strongly with the transmission. 
iii) ENGINE WITH TRANSMISSION 
Here the engine is combined with the transmission and bolts are strongly tightened. 
iv) MASTER CLUTCH PEDAL ADJUSTMENT 
Here the master clutch pedal is adjusted. 
v) HYDRALIC LIFT TRANSMISSION TIGHTENING 
Here hydraulic lift is fixed and tightening with transmission. 
vi) LEVER TO STEERING BOX TIGHTENING 
Here lever of tractor is tightening with the lever to transmission. 
vii) FRONT AXLE SUPPORT TIGHTENING 
The bolts of front axle are tightened to the transmission. 
viii) DRAG LINK TO STEERING ARM AND AXLE TIGHTENING 
Here small and big axles are tightened to transmission. 
ix) CORRECT APPLICATION OF PROTECTION TO VARIOUS PARTS 
Here different parts are checked and adjusted to their correct places. 
5-PAINT SHOP 
i) WASHING 
Here to remove dust the body of engine , the body of the engine is washed with hot mixture 
of hot water and chemicals. 
ii) PRIMER 
Here the body is make prepared for paint by allowing to remained in the hot air. 
iii) PAINT 
Here the steel body is painted in the “Paint Shop”. 
6-SECOND LINE
i) INJECT GREASE IN ALL LUBRICANTS 
Here grease and other lubricant oils are injected to engine and moving parts of the tractors like wheel. 
ii) ELECTRICAL SYSTEM 
Here all electrical wiring system is built ion to the tractor a d a battery is adjusted in the 
tractor. All lighting bulbs are put bonnets relevant places. 
iii) ALIGNMENT OF STEEL METAL 
Here the painted body of the tractor is aligned tom the engine and other body of the tractors. 
iv) FRONT WHEEL TIGHTENING 
Here the bolts of front line are tightened and also are injected grease to it 
v) REAR WHEAL TIGHTENING 
Here the bolts of the back wheel are tightened, and the inner parts are oiled with Mobil Oil. 
vi) WHEEL ALIGNMENT 
Here the front and back wheels are alighted and their bolts are tightened. 
vii) OIL CHECKING 
Here the oil levels are checked and fill oil to it and after it the final inspection is made. 
7-FINAL INSPECTION 
The following are the operations, which are performed during final inspection of finished tractors. 
i) CHECKING OF OIL LEVEL: 
Engine oil level checking 
Gear Box oil level checking 
Air cleaner oil checking 
Water level checking 
Weight test of Hydraulic pressure 
ii) CHECKING OF OPERATING PARTS: 
Clutch play tightening and sound test 
Tightening of break L/H & R/H 
P.T.O Clutch test 
High, low gear sound checking 
1-2-3-4 & reverse gear checking 
break seal of L/H & R/H 
Final drive tube leak 
Differential case hole and sound checking 
Gear box top cover leak checking 
P.T.O top cover leak checking
P.T.O plate leak checking 
P.T.O cover leak checking 
P.T.O seal leak checking 
Differential leak checking 
Engine sound checking 
Lift pump support checking 
Automisophry support checking 
Paint cover checking 
Fuel engine pipe leak cover checking 
Top hydraulic leak checking 
High pressure pipe leak checking 
Low pressure pipe checking 
Steering plate leak checking 
Steering loose/tight/free checking 
Wheel alignment checking 
Tie rood (rubber boot/pin) checking 
640 fender & distance checking 
Sheet metal (paint/welding/crack) checking 
Grease checking 
Tire’s air checking 
Self starter checking 
Leaving box checking 
ELECTRICAL LIGHTING SYSTEM CHECKING : 
Parking lights checking 
Parking indicators checking 
Neutral switch checking 
Head light low checking 
Head light high checking 
Beam indicators checking 
Oil pressure checking 
Alternate light checking 
Alternate junctions checking 
Fan belt (extension/loose) checking 
Fuel gauge checking
Temperature gauge checking 
Main wire clip checking 
Back lights checking 
Horn checking 
Yellow lamp checking 
Fuse box checking 
Wire fitting checking 
All body paint checking 
Sheet metal checking 
DISTRIBUTION FUNCTION 
The distribution function is the part of the marketing department and its activities are as follows. 
Booking of tractors 
Delivery of tractors 
Handling of payments 
Preparation of reports for MIS 
Close co-ordination with production and material management department. 
1-BOOKING OF TRACTORS 
There are two types of tractors bookings i.e., against ADBP loans and cash bookings are registered with 
the company either by customers over the counter or through dealership network. 90% booking’s are 
being entertained through dealers. 
2-DELIVERY OF TRACTORS 
On the delivery side prime functions is to obtain information form Material Management so as to 
ascertain the availability for tractors. After the availability of tractors delivery scheduled is circulated to 
the dealers by the way of intimation letters to customers. 
3-HANDLING OF PAYMENT 
If the tractor is ordered on cash basis then it is immediately delivered to the customers from stock that the 
company holds but if they put to loan order such documents are passed on to the payment handling 
section where the sets of documents are submitted to ADBP, bank drafts for its encashment in accordance 
with prevalent Agriculture Bank procedures. 
4-SERVICE FUNCTION 
The function of this department is to look after products and their after sales service. This department is 
not a profit oriented department. Its operations are directed towards cost savings, which are conducted in 
a business like manner. It provides prompt and satisfactory after sales service to the customers. 
5-PARTS FUNCTIONS
The aim and objective of Parts Department is to ensure availability of all necessary imported and local 
parts for the ease and convenience of the end user. 
ISO 9000 
ISO 9000 is quality system standards and are the highest criteria of quality in the world. Many companies 
in EC, Arab countries, USA and other countries are now demanding ISO 9000 registration from the 
suppliers around the world. Approximately 45000 companies around the world are ISO 9000 certified. 
ISO 9000 is effecting industry and business in every sector. Due to the importance of the ISO 9000 many 
companies in Pakistan have started their journey on the certification. 
ISO 9000 IN AGTL 
AGTL is the first company in the automobile industry of Pakistan who has achieved ISO 9000 quality 
award. The ISO 9000 registration gave AL-Ghazi Tractor Limited the international recognition as 
producer of FIAT Tractors. 
REASONS FOR OBTAINING ISO 9000 
To maintain the world class standard of Fiat. 
To produce quality confirmed tractors. 
To determine all steps in the production so that it can be identified and corrected. 
To have quality control over the purchases from the vendors to all over the Pakistan. 
To have an effective internal audit to identify mistakes and takes corrective actions. 
To be automobile leaders in Pakistan. 
To expand the market to the other nearest Asian countries. 
ISO 9002 IMPLEMENTATION IN AGTL 
The customers of every organization in response to new global competitive environment have become 
more quality conscious. Now due to it some of your customers might already asked you about the ISO 
9000 series quality standard and your attention in this regard. Now a-days, no matter what business you 
are in, you will be eventually be asked, “Are you ISO certified” by your customers. Now a days in the 
World, just about every business, from the large multinationals to the local organizations have pursued or 
pursuing certification to satisfy and win the hearts of their customers. 
In Pakistan about 90 companies have still certified ISO 9000 that is a positive indicator as it laying a 
foundation of Quality Management in the companies. Its nice to see so many companies achieving ISO 
9000 registration the growth is extraordinary. Al-Ghazi Tractors Ltd. the market leader in tractors in auto 
industry is the pioneer in getting the highest quality standard of World ISO 9000 in Pakistan. The 
management and employees have taken it a real challenge to integrate the Quality Management into their 
business operations as an essential part of their work. 
MANAGEMENT’S RESPONSIBILITY
OUR QUALITY POLICY: 
“OUR MOST ENDURING COMPETITIVE EDGE IS QUALITY OF OUR TRACTORS” 
RESPONSIBILITY AND AUTHORITY: 
The quality control program with in Al-Ghazi Tractors Ltd. has been established at the direction of the 
Senior Management due to demand of quality as a competitive edge in Auto Industry. The responsibility 
for development and integration of the quality plan resides within the quality control operation. The 
responsibility for execution of the quality program is delegated to the Production Manager. The 
Production Manager has delegated responsibilities to all those who are concerned with quality. 
Responsibilities and authorities in the company have been documented. 
Quality control has the organizational freedom and authority to initiate action to prevent the occurrence 
of non-conformities, record problems, initiate corrective actions, verify solutions, and if necessary, stop 
those processes until such time as they fully comply. 
The Quality Control Manager has the responsibility for overseeing, incoming material inspection, work in-process 
test, final inspection, and statistical techniques in conjunction with the production departments. 
Independent personnel are trained and appointed by the quality control department, perform the quality 
audits and can audit any area from which they are trained and appointed. 
RESOURCES 
The management of Al-Ghazi has designated appropriately trained individuals, to meet all the 
requirements of the quality program. Quality control department has approved personnel performing the 
quality inspections. The employees who are concerned with quality in the company have been trained to 
understand and maintained the quality policy of the company. 
There are documented job descriptions that define authority and responsibility for quality operations. 
There are trained employees have been assigned to internal audit activities and audit reports are 
transmitted to senior management. 
The trained engineers and employees of Materials and Metallurgical laboratory to verify and inspect the 
conformance of incoming raw materials and products against the design specifications that is managed 
and overseen by quality control department. 
The trained engineers and employees of Quality Control department and Production Department perform 
In-process inspection, final inspection, and functional testing that ensure conformance to product design 
specification. 
MANAGEMENT REPRESENTATIVES 
The Production and Quality Control Mangers are responsible for insuring that the ISO 9002 requirements 
are met as well as all other customer requested requirement. It is also the function of the quality control
manager to provide regular feedback on the status of the quality system and its progress. This is 
accomplished via reports on those measures reflective of the quality system. 
The Quality Control Manger also acts as the primary communicator with reference to any outside bodies 
affecting the quality system. 
MANAGEMENT REVIEW 
From time to time the Quality Control Manager reviews the quality system’s methodology and its 
application to the ISO 9002 Standard. Revisions to the manual and quality system is made as required to 
guarantee the quality of the product, services, and the needs of the company. 
The Upper Management and staff conduct regular reviews of quality issues. These documented reviews 
are used for further corrective plans. 
QUALITY SYSTEM 
In Al-Ghazi Tractors Ltd. the quality control program is a formally documented system of planned 
activities established to provide evidence of compliance to the requirements of applicable regulation, 
codes, standards, contractual specifications, drawing, ISO 9002, as well as the company quality policy. 
All of these activities are governed by procedures and written instructions supported with records of 
training and satisfaction compliance of products and processes. 
QUALITY PLANNING 
The quality manuals and all the supporting departmental procedures are referred to as the quality plans. 
The preparations of these plans are responsibility of the Production Department and Personnel 
Department and they maintain them in conjunction with senior management review. 
CUSTOMERS ORDERS 
The firm maintain a documented system with appropriately maintained records to ensure the appropriate 
review of the customer’s orders. This ensures that the order is well understood by both parties and we 
have the capability to meet the requirement. These procedures require agreement prior to the acceptance 
to the order. It is the responsibility of the sales organization to ensure a comprehensive documented 
integration of this requirement exists. 
AMENDMENTS TO CONTRACTS 
The organization maintains procedures for the processes used to amend a customer requirement to 
ensure compliance with the request. 
RECORDS 
The customer orders (contracts) shall be maintained by the sales department for the duration of the 
warranty period plus one-year unless otherwise requested by the customer. Documented procedures 
exists to support the retention of these records. 
DOCUMENT AND DATA CONTROL
At Al-Ghazi Tractors Ltd. the management has established document and data control procedures for the 
collection, maintenance, and distribution, one of key requirements of ISO 9002 implementation. It is the 
responsibility of each department to follow the established procedures for the collection, maintenance, 
and distribution and control of all the documents, instruction, and data in their operations to meet the 
intent of the ISO 9000 standard. 
In Al-Ghazi following documents are maintained and controlled. 
Policy Documents 
Quality Manuals 
Operations Procedures 
Quality Procedures 
Specifications of materials 
Inspections & Test Criteria 
Process Technology 
Quality Plans 
Work Instructions 
Storage 
Handling & Maintenance Instructions 
Quality Audit 
Training Document 
DOCUMENTATION APPROVAL AND ISSUE 
All departments in Al-Ghazi have established the procedures and maintenance of the documents. 
Documents and Instructions are established to handle and avoid a lack that could adversely affect the 
quality of the process, product, or services provided by the operation. 
A master revision listing of the documents of the vendors is maintained and issued by the quality control 
department at the end of each month to Vendor Development Department for further purchasing 
decisions. It is the responsibility of the all departments to ensure that only current documents are 
available for usage. Obsolete documents must be promptly removed by the department and adequately 
identified as available for reference only. 
DOCUMENT CHANGE 
Prior to the issuance of any new procedure/instructions/documents approval is required from the Upper 
Management. To upgrade a document related to quality, the quality control department required to 
provide a new revision about whether it is possible and feasible or not. When making changes, it is 
required that the changes from the previous instructions should be highlighted to ensure the proper 
changes are readily implemented. All of the department are informed and provided with attested copies
by the concerned manager and upper management, with modified or upgraded documents for 
information and implementation. 
PURCHASING 
Providing the best quality products require best raw material that meet certain required specifications. It 
is the most important function in ISO 9000 standards implementation requirement. The purchasing 
department plays an important role in that it makes documented policies about the purchasing. In Al- 
Ghazi Tractor Ltd. the purchasing department situated in head office has established and maintained a 
documented process with appropriate records that ensure the purchased products meet defined 
specifications. 
EVALUATION OF THE SUPPLIERS 
The purchasing department has established documented procedures with the co-operation of quality 
department by which supplier are selected. Their selection incorporates at least three considerations in 
the following priority: 
Their ability to deliver material that meets the product specifications. 
The evaluation of the quality of the products by quality department to ensure that consistent and desired 
quality and delivery requirements are met. 
A cost competitive delivery of the material. 
The purchasing department in conjunction with the quality control department determines the 
methodology employed to ensure the receipts of the appropriately conforming materials. The purchasing 
department in conjunction with the inspection of incoming materials maintains records of the supplier’s 
performance. The purchasing department only purchases materials from approved suppliers/vendors. It 
is the responsibility of the purchasing department to establish and maintain procedures for the generation 
of an acceptable supplier listing. The listings of approved suppliers must have the approval of the quality 
control department. 
PURCHASING DATA 
The purchase orders provided to the suppliers contain appropriate information about standards, 
specifications, and drawing testing criteria of the company packaging, delivery schedule, mode of 
transportation. 
VERIFICATION OF PURCHASED PRODUCT 
The purchasing department has defined the documented procedure how they will ensure that all materials 
introduced into the operations have undergone a review for conformity. The purchasing department looks 
and checks the materials by commodity grouping according to defined inspection routines for each 
commodity. 
PRODUCT IDENTIFICATION AND TRACTABILITY
There are procedures for proper identification and documentation of materials it is understandable and 
can be recognize by all the individuals in the factory. The items and products are assigned numbers for 
identification that are stored in cases, by the material handling and storage department. These procedures 
incorporate intractability of the items, components and semi or finished goods along with the appropriate 
recording of status of batch. 
PROCESS CONTROL 
This includes operating instructions for all department and employees that affect quality. Specific work 
instructions and procedures have been defined and documented where there is a lack that adversely affect 
quality, it includes. 
Documented work instructions / procedures that define the manner of production, installation and 
servicing. 
Use of suitable production and installation equipment. 
Suitable working environment. 
Compliance with referenced standards / codes and quality plans. 
Monitoring and control of suitable process and product characteristics during production. 
Approval of process and equipment as appropriate. 
There is suitable maintenance of equipment to assure continued capability & capability. 
Specific training and instructions are given to employees to understand and retain specific records for 
these special processes. 
For employees it is recommended that they follow the assembly line instructions flow-charting method. 
INSPECTION & TESTING 
In Al-Ghazi Tractors Ltd. there is a well-established computerized Material and metallurgical laboratory 
in the plant where operations are performed to check the strength and the appropriate specifications of 
items. 
All procedures and activities affecting testing are overseen by quality control and their signature on the 
proposed procedure is required to the Hovel Card which is attached with gear box and it remain with it 
until the compelition of the product. 
INSPECTION AND TESTING OF RECEIVING ITEMS. 
At Al-Ghazi it is responsibility of inspection department to ensure that no material can be used until they 
can verify compliance with the specified material requirements. The inspection is carried out in Material 
and metallurgical laboratory by taking a sample from the lot and according to the documented inspection 
procedure. Quality control engineers approve the testing procedures. 
WORK IN- PROCESS INSPECTION AND TESTING
The production department is responsible for work in process inspection and testing. At Al-Ghazi Tractors 
Ltd. the production department has generated a comprehensive inspection and test plan. This testing plan 
is based on documented testing instructions. No materials may bypass these inspection plans or 
continued to be processed without successful completion of the test and inspection requirements. For this 
purpose many quality inspectors have been assigned on the assembly line. On assembly line the output of 
one is the input of other one, due to this there are less chances of bypassing a defective item. 
FINAL INSPECTION AND TESTING 
The production department has generated a comprehensive inspection and test plan that ensures that all 
defined testing requirements are met. In the last a complete testing plan is formulated to ensure the 
quality and conformance of the final product. No product may by pass until the final inspection. 
INSPECTION AND TESTING RECORDS 
A Hovel Card moves on assembly line from beginning to the end. Each observation and testing made by 
any person is checked and he signed on the card. If any person commits any mistake he is the responsible 
for it 
CONTROL OF INSPECTING, MEASURING AND TEST OF EQUIPMENT 
Being a engineering work in the factory, all of work is performed through machines and equipment’s. 
Quality and Inspection departments in Al-Ghazi Tractors Ltd. have established and maintained 
documented procedures to select, control, calibrate and maintain inspection, measuring, and test 
equipment used to demonstrate conformance of the product or items. These devices include measurement 
tools, gauges, or any other “device” used to ensure conference. 
The devices, machine is assigned to the appropriate individuals who knows how to make it run. or this the 
employees are properly given training so they are able to handle the instruments for security purposes. 
History of the equipment is maintained and whenever it become out of order, it is repaired properly to 
avoid further errors. 
CONTROL PROCEDURE 
All the devices are used on a schedule based on usage or duration of time. The schedule has been 
scheduled in such a way that the all the operations in factory are not affected. Documented inspection 
procedures exist for the calibration of equipment. That includes maintenance, duration between recalls, 
as well as the actual testing for which the device is being used. No unauthorized person can make changes 
in the devices. 
INSPECTION AND TEST STATUS: 
Production department has established documented process with procedure for ensuring that all 
materials / products carry a test status. The incoming materials or items are checked by Inspection 
department, after successful checking they paste a material transfer tag designating transfer for
acceptable materials, if the material is not up to the mark than a further tag is pasted on the lot for further 
decisions. 
The work in-process inspection stations demonstrate compliance on HOVEL CARD on which each person 
who performs a particular activity sign about the conformance and specification of or item used. On 
assembly line there are many inspection stations where quality control inspectors are assigned that checks 
the progress and quality of process as well as material used. 
Final inspection is done by a group of quality inspectors and it validates the existence of all prior 
inspection against the check sheet as well as the test data and sign of on acceptance. This check sheet acts 
as the quality records. 
NONCONFORMING PRODUCT REVIEW AND DISPOSITION 
When a material is found to be defective/nonconforming then according to established procedures are 
placed for appropriate disposition. Quality department initiates the authority for disposition of products. 
By taking a sample from the lot the inspection department checks the specification of the product. If it is 
up to mark than it is accepted. If not than further actions are taken thorough investigation of the defects, 
the result of which can fall into the following categories. 
Reject the lot. 
Check whole the lot on the expenses of suppliers. 
If less than 20 % lot is defective accept non-defective parts. 
If more than 20 % than reject the whole. 
All decisions by the Inspection department results from an investigation of the material specifications. 
Any compromise to the material will require notification of the affected parities. 
CORRECTIVE AND PREVENTIVE ACTION: 
All departments in Al-Ghazi Tractors Ltd. have established and maintained procedures for 
implementation of corrective and preventive actions. It is the slogan of the company that: 
“We always take corrective actions not just corrections” 
These non-conformities are collected, analyzed, and than with root-cause philosophy they are corrected. 
Safety issues have received top priority and immediate allocation of resources. In all cases where a 
corrective or preventative action is employed, a record of the changes made shall be recorded and the 
record is maintained for further actions. 
1-Corrective Action 
A corrective action results from a customer, employee of factory or a report of a product nonconformance. 
The sales department maintains a documented process by which the complaints are complied, analyzed, 
and corrective action are taken. A report is generated to Senior Management about complaints made by
the customers for the solution. Corrective actions are than taken by the management after reviewing the 
situations. 
2-Preventive Actions: 
A preventive action is taken on the information indicating a nonconformity within the operating process 
that affects quality. These information are gathered by way of internal audits, quality records, yields 
shortfalls, service reports, customer complaints, employee’s indication or any other areas indicating 
process failures. The quality department than takes action for the prevention of such failure/shortfalls in 
the future. The quality control department maintains documented processes by which the shortfalls are 
complied, analyzed and preventive action initiated and tracked. This prevention action is addressed not 
only the root causes but also the application of controls to ensure its effectiveness. Senior management 
reviews a report of the corrective and preventive actions. 
HANDLING, STORAGE, PACKAGING, PRESERVATION AND DELIVERY 
There is separate department for handling and storage of all the input materials has established and 
maintained documented procedures for the handling, storage and preservation all input products. 
1-Handling 
There are appropriate trained employees to ensure the proper and safe handling of materials. All forklift 
drivers are trained to operate the lift. 
2-Storage 
When an item or product come in the premises the employees put them to large case which contains their 
identification number and name of that commodity. There are appropriate trained employees in the 
handling and storage department that ensure the proper and safe handling of materials. All materials are 
stored to prevent deterioration as well as support easy retrieval for usage. It is the company’s policy to 
follow a “first in first out” inventory policy and all material storage procedure is accommodate to this 
policy. 
Those materials that are sensitive to environment like it is very important to make safe the engine from 
dust the engine is kept remained within the case in store and it is not place openly. All the material is 
properly handle, continually monitor, and removed if inappropriate. All other materials are monitored at 
regular intervals to detect deterioration. 
Receipts for storage and dispatch of materials from storage and handling department are issued and 
received by authorize persons. 
3-Packaging 
The trained employees of materials handling and storage department package supporting materials which 
is given with the tractors. They also maintain packaging of the materials, which are to be use in the 
internal operations.
4- Preservation 
A big secure store area has been established in the plant in material and handling department to segregate 
the input and semi-finished products to ensure its preservation. 
5-Delivery 
There is network of dealers of Fiat and New-Holland tractors from Karachi to Gilgit in Pakistan. About 98 % 
of tractors are sold through Agriculture development Bank of Pakistan and only 2 % sales are on net cash. 
The tractors are delivered to customers through the dealers or they may buy from company premises. 
CONTROL OF QUALITY RECORDS 
All departments that are related with quality have established and maintained documented procedures on 
how they handle quality records. The procedures have been establish that through light and guide about: 
Methods for collection of quality records 
Methods for accessing of quality records 
Filing the quality records 
Storage of quality records 
Maintenance of quality records 
Disposition of quality records. 
The purpose of the records is to demonstrate confirmance to the specified requirements of the quality 
system. 
TRAINING 
There is a well-established training institutes in the company. Where all employees who affect quality are 
given training from time to time. Training is given to the managers and workers to increase the 
performance at every level. This improvement in performance is directed towards satisfying such cross-functional 
goals as quality, schedule, and others activities. Before final audit of ISO 9002 implementation 
in the company all the employees who are concerned with quality were given training so that all the 
employees could understand all the documented procedures, authorities and responsibilities of each other 
in the company. Some managers were sent to different seminars and workshops to learn about ISO 9002. 
SERVICING 
Al-Ghazi Tractors Ltd. has offered after sales service to its customers on both Fiat models. The sales 
department has established and maintained documented procedures and records as related to the services 
provided. When a customer has some problem in machinery he contacts the nearby dealer of the company 
which prepare a claim and send it to head-office for further actions. 
STATISTICAL TECHNIQUES
Each department in Al-Ghazi Tractors Ltd. has established and maintained documented procedures to 
implement and control the applications of statistical techniques in their operations. These procedures 
have been established in conjunction with the quality control department. 
To confirm the processes and product performances and in an attempt to increase it, following statistical 
techniques are being used 
Sampling 
Formulas for evaluating sampling

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Internship report on al ghazi tractors limited,al futtim group of company

  • 1. Internship Report on Al-Ghazi Tractors by Commerce Solutions in Al-Ghazi Tractors, Internship Report EXECUTIVE SUMMARY: Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore. The area of factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT” of Italy. The main purpose of the company is assembling and distributing of Fiat Tractors. They assemble two models of tractors i.e. 480-S and 640. The depletion rate of 480 is 85% and 640 are 76%. Forecasting entirely depends upon the marketing department. Previously 98% of sales was made by contract with ADBP but now it is carried out on net cash payment basis. Because delivery through ADBP has been stopped. Highway method is used for transportation purpose. To reduce inventory level they adopt safety stock method. They have different lead-time for different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing inventory. Al-Ghazi Tractors Limited has a separate quality control department. The laboratory is well equipped to under take chemical and mechanical testing of metals. Al-Ghazi Tractors Limited has received the ISO 9002 Certificate. INTRODUCTION OF THE ORGANIZATION Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.They started operations in September 1, 1983. They started their production at D.G.Khan Auxiliary Plant in February 20, 1985. A Joint Venture of PACO and Habib Group, NDFC and Fiat of Italy controlled management from September 1983 to August 1990. It was incorporated as a public limited company with an authorized capital of 100 million divided into 20 million shares of Rs. 05 each. The joint project was first of its kind in pakistan in the line with govt policy of private sector partcupation in nation’s building program of high priority. Both public and private sectors worked together upto 1990 and finallyl Al Ghazi Tractors limited was nationalized in the same years. Al-Ghazi Tractors Ltd. is rated among the Top Companies of Pakistan & has been the market leader of tractors in Pakistan Al-Ghazi consecutively for the years 1994, 1995 and 1996 by the Karachi Stock Exchange. Al-Ghazi Tractors was conferred the Management Excellence Award by the Management Association of Pakistan for demonstrating the best Corporate Performance in the Engineering Sector of Pakistan for the years 1995 and 1996. Al-Ghazi Tractors is the first Company in the Automobile sector of Pakistan to have achieved the highest quality award “The ISO 9002” registration that gives Al-Ghazi Tractors Ltd. the international recognition as Producers of Fiat and New Holland Tractors. With a strong dealer-network dotting the country form Karachi to Gilgit with over 300 service workshops to attend to the 100,000 Fiat Tractor Models 480-S and 640 and newly introduced model New Holland operating in the country. Al-Ghazi Tractors today is the market leader with bookings exceeding 50% of the total tractors market in the country. The company is capable of producing 15,000 tractors on a single assembly line.
  • 2. PRIVATIZATION Al- Ghazi Tractors Limited was privatized on December 9, 1991 according to the new policy given by Nawaz Sharif government and it was taken over by a forgien investor Al-Futtaim of Dubai. Now, the Al- Futtaim group owns 54% of Al-Ghazi tractors limited.s shares where as FIAT held 42% of shares and 5% of shares are held by the employees in the local market. TECHNICAL COLLABORATION WITH ITALY FIAT has joint hands with Al-Ghazi Tractors Limited to fully furnish know-how and modern technoloogy in the manufacturing tractors as well as their components so that the company does not rely on imports thus saving foreign exchange of country. Al-Ghazi Tractors Limited is backed by FIAT technological expertise and has full support of italian government who are providing grants for assistance in the shape of personal training in pakistan. MISSION STATEMENT “ OUR ENDURING COMPETITIVE EDGE IS THE QUALITY OF OUR TRACTORS” MAIN OBJECTIVES OF AL-GHAZI TRACTORS LIMITED: Keeping in view the economic and structural conditions of Pakistan & the firm’s missions the company has formulated the following objectives: To reduce the expenditures in foreign exchange. To increase employment. To fulfill the government policy of promoting industrialization in the remote areas of the country. Contibution towards national self-reliance in engineering industry. To be able to satisfy customer’s needs of buying locally assembled vehicles. To achieve the production capability so that the cultivator may det his tractor readily. To pay sepacial attention to the quality of the finished products to get customer satisfaction. To provide prompt and effective after sale services and tactical advice together with adequate supply of spare parts. To achieve maximum localizaton of components . ORGANIZATIONAL STRUCTURE Organizational structure of Al-Ghazi Tractors Limited is that both chairman and CEO are appointed by the Board. The board appoints CEO for running of day to day matter of business in line with the company’s policy and delegation of athority table. Vital functions of board are the establishment of company objectives and approval of annual budget.CEO is also responsible for the corporate strategy and the formulation of long and intermediate term plans and programs. The CEO privides an integrating function for the entire organization. He gives the organization
  • 3. right direction and purpose. For better survival and growth, group decision making through committees and meetings is a common practice of Al-Ghazi tractors limited. The organozational structure of Al-Ghazi Tractors limited is split into 5 functional areas; Personnel and administration Finance Material management Plant and production Marketing MAIN OFFICES: Main offices of the company are located in Karachi, Dera ghazi khan, Lahore, & Multan, where as regional offices are located in Nawabshah, Sukhar, Islamabad, & Peshawer. Karachi office: Karachi office is registered head office of the company. Functions: Material management Finance Personnel & administration. LAHORE OFFICE: It’s major function is marketing the product of the company. MULTAN OFFICE: It’s major functions are : Marketing After sale service. warranty activities provision of spare parts to lower punjab area. LOCATION The location of facility involves the committment of resources to long range plans. Locations take on even greater significance because those plans represent the basic strategy for assessing markets and may have significant impact in revenue, cost and service level to customers and clients. Technological constraints eliminate most of possible locations. Location of industry is selected on the basis of: Availability of inputs to products or raw materials on cheap prices and maximization of profits. Proximity to potential customers to be served. Proximity to required labor for performing the operations.
  • 4. In plant location objective is to minimize the sum of all costs, not only current but also long term costs. LOCATION OF AL-GHAZI TRACTORS LTD. The location of Al-Ghazi Tractors Ltd. is about 12 kilometers on main Sakhi Sarwar Road from Dera Ghazi khan in the South Punjab. Total land area covered by the plant is approximately 100 acres.Plant is located at about 30 acres whereas the colony is spreaded over 70 acres of land. AGTL select D.G.Khan because Govt. gave option to AGTL to select either D.G.Khan or Khushab. Both were tax free zone. The location had been selected in early 80’s during the period of late President Of Republic Of Pakistan Gen. Zia-ul- Haq when it was declared free industrial zone for five years.Plant was inaugurated by Lt.General Saeed Qadir on jan 11, 1984.auxilary plant started it’s production on february 20, 1984. the main plant started it’s production on april 01, 1985. FACTORS Due to following factors the plant was selected at the above location. TAX FREE ZONE To promote the back-word areas of Pakistan certain areas were announced as tax free zones in all provinces. The district of Dera Gazi Khan was one of them. Habib and group decided to establish a tractor factory in this region. A factory “Al-Ghazi Tractors Ltd.” was established by joint venture of PACO, HABIB GROUP, NDFC, and FIAT of Italy in September 1983. FAVORABLE LABOR CLIMATE The labor plays an important role in the selection of the labor-intensive company. So the selection of this location was also favorable labor for construction of the factory. TAXES AND REAL ESTATE COSTS One important factor was that the real estate’s cost was too much lower as compared to other areas of the country. That was the other main reason for the selection of the site. CONSTRUCTION COST The major cost involved in any organization is in the shape of the construction costs. That took a large amount. But at that time the labor was available at the cheaper rate. Due to which the site was selected at that place PROXIMITY TO MARKETS It is located in the district Dera Ghazi Khan of province Punjab whose boundaries attaches to all four Provinces of Pakistan, especially the most fertile areas of Province Punjab and Sindh. So, it has more proximity to the market, as Dera Ghazi Khan and Multan Divisions are famous of being Cotton Belt. AVAILABILITY OF UTILITIES
  • 5. The basic utilities are easily available at the place. The facility of fax, electricity, Sui Gas and telephone was provided by Govt. at that time to encourage the partners to establish plant there. So these utilities proved much helpful to contact with the global market at every moment is a key to success. The transportation facility is easily available at factory place. FACILITIES PROVIDED TO ATTRACT THE EMPLOYEES AGTL has the following facilities for his staff. Which are considered to be important. 1-HOUSING FACILITIES It is having housing facilities for 126 family homes and quarters for executives and workers. The population of the staff colony is approximately 500. 2-MOSQUE HOSPITAL AND SCHOOL FACILITIES There is a Mosque, Hospital with ambulance and AGTL primary school for the children of staff residing in the colony. AGTL is having a school bus for pick and drop services to school and college for the children of staff studying in Dera Gazi Khan City. 3-UTILITY FACILITY Clean water supply with U.V filter and private electric generator for Un-interrupted power supply for the staff because the weather in summer is much hotter here. 4-RECREATION CENTERS Recreation centers for executives, workers, children and ladies with indoor games TV, Videos, Dish Antennas and other facilities are available at AGTL staff colony. EMPLOYEES There are 536 employees which, are working in the factory. DEMAND FORECASTING “A forecast is the prediction of future events used for the planning purposes” . Forecasting has an important role in scheduling all the operations of the organization. Forecasting is based on qualitative as well as quantitative methods. Management needs accurate forecasting of demands to make schedule of all operations and to cope with lead-time of different and reduce inventory levels. Accurate forecast allows schedulers to use machine capacity efficiently, reduce production times, and cut inventories. FORECASTING TECHNIQUES There the four forecasting techniques are available for the purpose of the forecasting of the demand, which are as under.
  • 6. Qualitative techniques Sales Force Estimate Executive Opinion Market Research Delphi Method Quantitative techniques Causal Techniques Regression Correlation Time Series Method Naive Method Simple Moving Average Weighted Moving Average Exponential Smoothing Method With trend & Seasonal Effect FORECAST AT AL-GHAZI TRACTOR LTD. There is no forecast method at Al-Ghazi Tractors Ltd. The advance booking period is normally six months. So, Head Office, Karachi, sends monthly production schedule to the factory according to the number of bookings. Al-Ghazi Tractors Ltd. has a strong dealers network from Karachi to Gilgit at the district level but the sale is done through ADBP. The bank prepared the draft and send to AGTL for booking. The plant is capable of providing 15,000 tractors per year. Whatever the demand is fulfilled by producing that required amount of tractors.In year 1999-2000 , the firm produced 18000+ tractors utilizing over time to meet the orders out of which 16366 were 480-S & 2049 were 640. FACTORS AFFECTING DEMAND There are two main types of factors affecting the demand of the tractors. External factors Internal factors External Factors Following are the external factors that affect the demand. ADBP’s loaning policies and procedures Climatical disasters such as floods Changes in govt. laws, regulations, polices and tariff structure. Economics conditions of the country Supply constraints of local and CKD components. Internal Factors
  • 7. These factors are listed are follows High manufacturing cost and selling expenditures Promotion Policy Lack of professionalism in dealerships. PRODUCTION AND CAPACITY CAPACITY Production is essential for any organization’s continued existence and society’s well being General Manager (plant) is responsible for managing production and all its allied activities. The main features of production management at plant are Efficient execution of required production Maintaining quality in accordance with FIAT specification and standards. Producing goods at economical cost. Total capacity of plant is 15,000 tractors per annum. Full scaleProduction of FIAT tractor models 480-S and 640 commenced from April, 1985. The plant operates on high efficiency because assembly operation wastes are negligible. The optimum production level is 10,000 tractors and Al-Ghazi Tractors Limited is now having 50% market share. Al-Ghazi Tractors limited is using effective capacity i.e., maximum out put under realistic conditions and it implies one-shift operation. PRODUCTION DATA MODEL YEAR 480-S 640 1993-94 3686 1861 1994-95 4400 2015 1995-96 4415 2202 1996-97 3841 1098 1997-98 5375 913 1998-99 10012 2188 1999-2000 16366 2059 INVENTORY MANAGEMENT “Inventory is a stock of anything held to meet the future demand” Al-Ghazi Tractor is manufacturing organization, the management gives more emphasis on raw material inventory and mostly inventory is held in terms of input products and raw material. Most of the inventory
  • 8. is treated as dependent demand for the assembling. Here there is a separate Material Management department. MATERIALS MANAGEMENT “Materials management concerns short range decisions about supplies, inventories, production level, staffing patterns, schedules, and distribution”. Decisions in these areas affect the whole of the organization, either directly or indirectly. CENTRAL ROLE OF THE MATERIALS. As the AGTL is a manufacturing organization so they need the input material for the purpose of the production of tractors from the vendors in country as need as well as the foreign countries. This material takes round about the 80% while staff takes 20% of the resources of the organization. The other reason is the impact of inventory on the profitability of the organization. As on keeping more inventories the organization has to bear much more holding cost. FUNCTIONS OF THE MATERIAL MANAGEMENT The Sales, Vendor Development, Purchasing, Production Departments are tied collectively to perform the functions relating to the materials. The Sales Department makes the forecasts of the month, on the basis of orders paid by Agriculture Bank of Pakistan. Then these are send to the production department, then Production Manager makes the monthly production plan, then depending upon the production, they need the raw material which is asked by Sales Department to the Purchasing department, then this department makes the required purchasing plan. This plan is made for the purchase from the inside as well as from the foreign countries. The purchasing is made according to documented procedures of ISO 9002 standards discussed in ISO 9002. OBJECTIVES OF INVENTORY MANAGEMENT Following are the objectives of the inventory management system. To minimize cost To maximize profits Reducing the possibilities of stock out Continuity in the production system To avail discounts TYPES OF INVENTORY MANAGEMENT The inventory can be divided into two broad categories. Raw Material Inventory. Finished Goods Inventory. RAW MATERIAL
  • 9. The company needs raw material for the purpose of the production by the company can divide the items, which come under the raw material, into two broad categories. a) Imported material b) Local material 1). IMPORTED MATERIAL The main items, which are imported by this company, are the gear cases and Engine and the critical items, which are necessary for the purpose of the production by the company. The company imports these items from Italy, Turkey. The raw material fall under this category for Model 480-S is 15% Model 640 is 24% 2). LOCAL MATERIAL AGTL is having 359 vendors from all over the Pakistan. These vendors are responsible for providing the high standards products to the AGTL. This contains the main portion of raw material. These are also categories according to the Models Model 480-S 85% Model 640 76% REORDER POINT At any time the raw material of 200 tractors is present in the factory premises. Whenever the material falls below it a fax is sent to Head Office for more raw material. The reorder point in the company is the raw material of 200 engines of the tractors. LEAD TIME Lead-time is the time required for receiving goods from the suppliers. AGTL has two types of suppliers. Local suppliers Vendors from Lahore area have lead-time of 10 days. Vendors from Karachi area have lead-time of 30 days. Foreign suppliers Lead-times for foreign vendors from Italy and Turkey have usually 6 months. METHODS FOR INVENTORY MANAGEMENT AT AGTL ABC PLAN FOR INVENTORY AGTL uses ABC, system that is the process of dividing items into three classes according to their Rs. Value and usage.
  • 10. Category A: A category includes those items that require largest money investment about 80 % of the overall investment while they account for only20 % only. It requires continuous review of the items included. It includes the following items 1). Engine of tractor 2). Gear box of tractors 3). Imported items Category B: B category is the second important category includes those items that require second largest money investment about 15 % of the overall investment while they account for only 30 % only. It requires periodic review of the items included. It includes the following items 1). Items used in transmission 2). Nozzles 3). Tires Category C: The last category is C category includes those items that require least money investment about 5% of the overall investment while they account for 50 % of all items. It includes items, which are prepared by local vendors. Quality Policy In Al-Ghazi quality is a dynamic state associated with the products, services, people, processes and environment that meets or exceeds the expectations of their customers and it is a strong edge on the basis of quality against the competitors. There is well-established Quality Control department in the company that assures quality by incorporating other departments. DEPARTMENTS There is well-established setup to ensure quality in the company. The following departments are directly concerned with quality assurance in the company. Quality Control department. Purchasing department. Inspection department. Production department. Vendor development department. There is a strong integration of all the departments to make assurance of quality at the every stage of whole the process starting from purchasing to final inspection of finished products.
  • 11. QUALITY CONTROL IN PURCHASING About 85% parts of 480 model and 75% of 640 model are obtained from local vendors while the remaining parts are imported from Italy. For local parts the Vendor department gives drawing and material specification to Vendors. Samples are obtained from them and are sent to well establish Material & metallurgical Laboratory, which is situated in the plant for calibration of, required specification of the part and strength of the material. If the results are up to mark then ordered are placed to them. Otherwise engineers of the company assist them in solving the problems relating to strength and specification of the part. The purchased parts are inspected in the company and Karachi where company’s headquarter is situated, by taking sample among them on the following criteria. 13 out of 100 items. 32 out of 200 items. The specification of the items, quality and the strength of material of materials used in parts are checked by material and metallurgical engineers in the laboratory. If the items are 2% of the total sample are defective than the whole lot is not accepted. Then all the items are checked and cost of checking and inspection of these items is beard by the vendors and all defective items are replaced and repaired by the vendors. If defective items are less than 2% than all defective are replaced and repaired by the vendors. AL-GHAZI TRACTORS LIMITED D.G.KHAN Quality Control Department Sampling Plan 0.65 1.5 04 6.5 LOT SIZE ACCEPTANCE QUALITY LEVEL
  • 12. N K R N K R N K R N K R 2-10 % % --- % % --- 03 00 01 02 00 01 9-15 % % --- % 00 01 03 00 01 02 00 01 16-25 20 00 01 08 00 01 05 00 01 08 01 02 26-50 20 00 01 08 00 01 13 01 02 08 01 02 51-90 20 00 01 13 00 01 13 01 02 13 03 03 91-200 20 00 01 13 00 01 13 01 02 13 03 03 201 & ABOVE 32 01 02 32 01 02 32 03 04 32 05 08 AQL FOR MACHINE PART = 1.5 AQL FOR CASTED PART = 6.5 N = # OF SAMPLES FOR INSPECTION K = ACCEPTABLE LIMIT R = REJECTED LIMITED AQL FOR HARDWARE 0-200 = 05% AQL FOR HARDWARE 201-500 = 03% AQL FOR HARDWARE 501& ABOVE = 02% AQL FOR HOOD ASSY. = 05% LIST OF COMPONENTS ACCEPTED ON FITMENT/FUNCTIONAL TEST Hudraulic lift Steering box Instrument cluster Hood Water body Fenders Self starter Alternatos (generators) LIST OF PARTS CHECKED OUTSIDE THE PLANT DUE TO LIMITED INSPECTION FACILITY AT THE PLANT Gear box Axle casing Oil sump
  • 13. Piston Gears QUALITY CONTROL DURINDG WORK IN PROCESS As the lot is accepted on the basis of sample and it may be possible that there are some defective items in the lot, due to this during the process on assembly line these defective parts are identified and than Quality Inspector or the employees working on assembly line separate them out and latter than these are returned to vendors. The following are major activities/operations on the assembly line. 1) Gear box checking 2) Transmission 3) Coupling of Transmission with Gear box 4) Test Bench 5) Coupling of Engine with Transmission 6) First line 7) Paint shop 8) Second line 9) Final inspection There is chained relationship among all above activities and operations. If one person fails to identify a defective item than the next one will identify it. The Quality Inspector is on the assembly line to check the quality of the items and to identify defective parts. FINAL INSPECTION In the last a group of Quality Inspectors examines the finished product. They check the paint and performance of tractors on the “Roller test” to check the gear, speed and working of the tractors. After it each and every tractor is checked on the road before the delivery. For this purpose meter reading is noted before and after the test. Each and function is checked in the Road Test. After it pre delivery test is completed. CHART ? TOTAL QUALITY MANAGEMENT
  • 14. “Total Quality Management is an approach to doing business that attempts to maximize the competitiveness of organization through the continual improvement of the quality of its products, services, people, processes and environment”. In Al-Ghazi Tractors Ltd. management has been taking the following steps for Total Quality Management. 1-EDUCATION AND TRAINING The management has established a training center in the premises of the company for training to the managers and workers to increase the performance at every level. This improvement in performance is directed towards satisfying such cross-functional goals as quality, schedule, and others activities. Before audit of ISO 9002 implementation in the company all the employees who are concerned with quality were given training so that all the employees could understand all the documented procedures, authorities and responsibilities of each other in the company. Some managers were sent to different seminars and workshops to learn about ISO 9002. Now a days the companies has introduced their new product New Holland tractor in the market. For this they are giving training to new hired employees about assembling of the tractor. 2-TEAMWORK In Al-Ghazi there is strong existence of teamwork. These are the managed group of the employees doing their best competitive efforts to cope with the barriers, rivalries and distrust among different departments to improve the quality of the their products. In the company the employees have 3-CUSTOMER FOCUS In Al-Ghazi all operations are directed satisfaction to both external or internal customers .The product produced, to the external customers is totally checked by the internal customers. The internal customers in Al-Ghazi check the quality of items, semi-finished goods during process because the work of one depends on the work that proceeds them. OBSESSION WITH QUALITY For obsession with quality the employees are trained from time to time to learn the philosophy “ how can we do better ” the suggestion given by the employees about quality are appreciated in the company. SCIENTIFIC APPROACH As the engine of the tractors are produced in Italy for Fiat and for New-Holland . From New-Holland Company which is a subsidiary of Fiat group. These both are operating 13 research and development centers located in Brazil, Belgium, Canada, England, India, and Italy, United States. Besides it both is directly operating 19 manufacturing centers and 26 sales offices around the world. These research centers are using scientific approaches to develop and modify their existing and new products. CONTINOUS IMPROVENENT OF SYSTEM
  • 15. The management of Al-Ghazi tractors Ltd. has taken many steps to improve their system in order to continually improve the quality of products and services. Employees are trained from time to time and new technologies are adopted. Recently company has introduced hydraulic pressure engine in their 486 and 640 models. A new product New-Holland has been introduced in the market that is symbol of new technology. EMPLOYEE INVOLVEMENT Employees are involved in all the matters relating to quality, purchasing and other functions of the company. It results in good decision making and more effective improvement by bringing more minds to bear the situation. PRODUCTION PROCESS The process design in the assembly line of tractors consists of the following operations an activities. Gear Box Transmission Coupling of transmission with Gear-Box Test Bench Coupling engine with transmission First line Paint shop Second line Final inspection 1-GEAR-BOX Engines and many parts of the tractors are imported from Fiat manufacturers in Italy and Turkey. During the journey from Italy to the plant many parts of gearbox get loose. On arriving in the plant, during assembling certain operations are performed by technical individuals, are discussed as under. CLEANING OF CASE FROM INSIDE Here the case of gearbox is cleaned from inside because it is much effected due to dust. The dust is removed from inside the case by cleaning it with some dust-removing agents. COUNTER SHAFT NUT TIGHTING AND STAKING. Some parts of gearbox get loosed because of journey in ship and later on trucks. Here shaft is tightened and some other items are assembled to it. TRANSMISSION SHAFT COVERS TIGHTENING. After counter shaft nut tightening next the transmission shaft cover is tightened
  • 16. because of above reasons. SPILTER TIGHTENING AND LOCK PLATE BENING. After transmission shaft cover tightening a splitter of weight of 9.5 kg is fixed into the Gearbox by tightening bolts and locking plates are bent. v) CHECK POSITION OF MAIN SHAFT INNER AND SEAL AFTER INSERTION OF P.T.O. SHAFT. It is a final operation in the gearbox checking. Here it is checked and assures that our shafts are on its right place or not, further corrective actions are taken to make it ready. Then gearbox is totally sealed after insertion of P.T.O. shafts. 2-TRANSMISSION The following are the operations that are performed during transmission. i) CLEANING FROM INSIDE. Here nozzles that are to be fitted into gearbox are cleaned. Others parts are also cleaned and oiled. ii) BEVEL PINION NUT TIGHTENING. It is the second operation in transmission. Here the bevel pinion nut is tightened into the gear- box. iii) BEVEL PINION ROTATING TORQUE. Bevel pinion rotating torque is cleaned and made ready for assembling into the gearbox. iv) DRIVE HEAD TIGHTENING. Drive is a separate part, which is later adjusted to the gearbox, is tightened with some of other parts. v) BEVEL DRIVE ROTATING. Bevel drive rotating is cleaned and its specification is checked and is sealed by adjusting it into the gearbox. vi) BEVEL DRIVE BACKLASH. Here the bevel drive is recoiled so that it is ready for coupling to gearbox and engine. 3-COUPLING OF TRANSMISSION WITH GEAR-BOX Here gearbox and all other parts, which are prepared in transmission, are coupled and the following operations are performed. i) GEARBOX WITH TRANSMISSION TIGHTENING. Here gearbox is coupled with transmission by tightening that integrates them. ii) FINAL DRIVES TIGHTENING.
  • 17. Drive head, which is a separate part, is tightened into coupled gearbox and transmission. iii) BREAK PEDAL ADJUSTMENT . Here the position of break pedal is adjusted for both forward and back Tires with the engines. 4-TEST BENCH Here the engine is checked to check that all its parts are at their its correct places or not, further actions are taken later on. i) OPERATION TEST. Here the engine is checked by engintioning it and the performance of the engines are checked to ensure its performance. ii) CLUTCH TO FLY WHEEL TIGHTENING Here the flywheel are checked and tightened strongly with the transmission. iii) ENGINE WITH TRANSMISSION Here the engine is combined with the transmission and bolts are strongly tightened. iv) MASTER CLUTCH PEDAL ADJUSTMENT Here the master clutch pedal is adjusted. v) HYDRALIC LIFT TRANSMISSION TIGHTENING Here hydraulic lift is fixed and tightening with transmission. vi) LEVER TO STEERING BOX TIGHTENING Here lever of tractor is tightening with the lever to transmission. vii) FRONT AXLE SUPPORT TIGHTENING The bolts of front axle are tightened to the transmission. viii) DRAG LINK TO STEERING ARM AND AXLE TIGHTENING Here small and big axles are tightened to transmission. ix) CORRECT APPLICATION OF PROTECTION TO VARIOUS PARTS Here different parts are checked and adjusted to their correct places. 5-PAINT SHOP i) WASHING Here to remove dust the body of engine , the body of the engine is washed with hot mixture of hot water and chemicals. ii) PRIMER Here the body is make prepared for paint by allowing to remained in the hot air. iii) PAINT Here the steel body is painted in the “Paint Shop”. 6-SECOND LINE
  • 18. i) INJECT GREASE IN ALL LUBRICANTS Here grease and other lubricant oils are injected to engine and moving parts of the tractors like wheel. ii) ELECTRICAL SYSTEM Here all electrical wiring system is built ion to the tractor a d a battery is adjusted in the tractor. All lighting bulbs are put bonnets relevant places. iii) ALIGNMENT OF STEEL METAL Here the painted body of the tractor is aligned tom the engine and other body of the tractors. iv) FRONT WHEEL TIGHTENING Here the bolts of front line are tightened and also are injected grease to it v) REAR WHEAL TIGHTENING Here the bolts of the back wheel are tightened, and the inner parts are oiled with Mobil Oil. vi) WHEEL ALIGNMENT Here the front and back wheels are alighted and their bolts are tightened. vii) OIL CHECKING Here the oil levels are checked and fill oil to it and after it the final inspection is made. 7-FINAL INSPECTION The following are the operations, which are performed during final inspection of finished tractors. i) CHECKING OF OIL LEVEL: Engine oil level checking Gear Box oil level checking Air cleaner oil checking Water level checking Weight test of Hydraulic pressure ii) CHECKING OF OPERATING PARTS: Clutch play tightening and sound test Tightening of break L/H & R/H P.T.O Clutch test High, low gear sound checking 1-2-3-4 & reverse gear checking break seal of L/H & R/H Final drive tube leak Differential case hole and sound checking Gear box top cover leak checking P.T.O top cover leak checking
  • 19. P.T.O plate leak checking P.T.O cover leak checking P.T.O seal leak checking Differential leak checking Engine sound checking Lift pump support checking Automisophry support checking Paint cover checking Fuel engine pipe leak cover checking Top hydraulic leak checking High pressure pipe leak checking Low pressure pipe checking Steering plate leak checking Steering loose/tight/free checking Wheel alignment checking Tie rood (rubber boot/pin) checking 640 fender & distance checking Sheet metal (paint/welding/crack) checking Grease checking Tire’s air checking Self starter checking Leaving box checking ELECTRICAL LIGHTING SYSTEM CHECKING : Parking lights checking Parking indicators checking Neutral switch checking Head light low checking Head light high checking Beam indicators checking Oil pressure checking Alternate light checking Alternate junctions checking Fan belt (extension/loose) checking Fuel gauge checking
  • 20. Temperature gauge checking Main wire clip checking Back lights checking Horn checking Yellow lamp checking Fuse box checking Wire fitting checking All body paint checking Sheet metal checking DISTRIBUTION FUNCTION The distribution function is the part of the marketing department and its activities are as follows. Booking of tractors Delivery of tractors Handling of payments Preparation of reports for MIS Close co-ordination with production and material management department. 1-BOOKING OF TRACTORS There are two types of tractors bookings i.e., against ADBP loans and cash bookings are registered with the company either by customers over the counter or through dealership network. 90% booking’s are being entertained through dealers. 2-DELIVERY OF TRACTORS On the delivery side prime functions is to obtain information form Material Management so as to ascertain the availability for tractors. After the availability of tractors delivery scheduled is circulated to the dealers by the way of intimation letters to customers. 3-HANDLING OF PAYMENT If the tractor is ordered on cash basis then it is immediately delivered to the customers from stock that the company holds but if they put to loan order such documents are passed on to the payment handling section where the sets of documents are submitted to ADBP, bank drafts for its encashment in accordance with prevalent Agriculture Bank procedures. 4-SERVICE FUNCTION The function of this department is to look after products and their after sales service. This department is not a profit oriented department. Its operations are directed towards cost savings, which are conducted in a business like manner. It provides prompt and satisfactory after sales service to the customers. 5-PARTS FUNCTIONS
  • 21. The aim and objective of Parts Department is to ensure availability of all necessary imported and local parts for the ease and convenience of the end user. ISO 9000 ISO 9000 is quality system standards and are the highest criteria of quality in the world. Many companies in EC, Arab countries, USA and other countries are now demanding ISO 9000 registration from the suppliers around the world. Approximately 45000 companies around the world are ISO 9000 certified. ISO 9000 is effecting industry and business in every sector. Due to the importance of the ISO 9000 many companies in Pakistan have started their journey on the certification. ISO 9000 IN AGTL AGTL is the first company in the automobile industry of Pakistan who has achieved ISO 9000 quality award. The ISO 9000 registration gave AL-Ghazi Tractor Limited the international recognition as producer of FIAT Tractors. REASONS FOR OBTAINING ISO 9000 To maintain the world class standard of Fiat. To produce quality confirmed tractors. To determine all steps in the production so that it can be identified and corrected. To have quality control over the purchases from the vendors to all over the Pakistan. To have an effective internal audit to identify mistakes and takes corrective actions. To be automobile leaders in Pakistan. To expand the market to the other nearest Asian countries. ISO 9002 IMPLEMENTATION IN AGTL The customers of every organization in response to new global competitive environment have become more quality conscious. Now due to it some of your customers might already asked you about the ISO 9000 series quality standard and your attention in this regard. Now a-days, no matter what business you are in, you will be eventually be asked, “Are you ISO certified” by your customers. Now a days in the World, just about every business, from the large multinationals to the local organizations have pursued or pursuing certification to satisfy and win the hearts of their customers. In Pakistan about 90 companies have still certified ISO 9000 that is a positive indicator as it laying a foundation of Quality Management in the companies. Its nice to see so many companies achieving ISO 9000 registration the growth is extraordinary. Al-Ghazi Tractors Ltd. the market leader in tractors in auto industry is the pioneer in getting the highest quality standard of World ISO 9000 in Pakistan. The management and employees have taken it a real challenge to integrate the Quality Management into their business operations as an essential part of their work. MANAGEMENT’S RESPONSIBILITY
  • 22. OUR QUALITY POLICY: “OUR MOST ENDURING COMPETITIVE EDGE IS QUALITY OF OUR TRACTORS” RESPONSIBILITY AND AUTHORITY: The quality control program with in Al-Ghazi Tractors Ltd. has been established at the direction of the Senior Management due to demand of quality as a competitive edge in Auto Industry. The responsibility for development and integration of the quality plan resides within the quality control operation. The responsibility for execution of the quality program is delegated to the Production Manager. The Production Manager has delegated responsibilities to all those who are concerned with quality. Responsibilities and authorities in the company have been documented. Quality control has the organizational freedom and authority to initiate action to prevent the occurrence of non-conformities, record problems, initiate corrective actions, verify solutions, and if necessary, stop those processes until such time as they fully comply. The Quality Control Manager has the responsibility for overseeing, incoming material inspection, work in-process test, final inspection, and statistical techniques in conjunction with the production departments. Independent personnel are trained and appointed by the quality control department, perform the quality audits and can audit any area from which they are trained and appointed. RESOURCES The management of Al-Ghazi has designated appropriately trained individuals, to meet all the requirements of the quality program. Quality control department has approved personnel performing the quality inspections. The employees who are concerned with quality in the company have been trained to understand and maintained the quality policy of the company. There are documented job descriptions that define authority and responsibility for quality operations. There are trained employees have been assigned to internal audit activities and audit reports are transmitted to senior management. The trained engineers and employees of Materials and Metallurgical laboratory to verify and inspect the conformance of incoming raw materials and products against the design specifications that is managed and overseen by quality control department. The trained engineers and employees of Quality Control department and Production Department perform In-process inspection, final inspection, and functional testing that ensure conformance to product design specification. MANAGEMENT REPRESENTATIVES The Production and Quality Control Mangers are responsible for insuring that the ISO 9002 requirements are met as well as all other customer requested requirement. It is also the function of the quality control
  • 23. manager to provide regular feedback on the status of the quality system and its progress. This is accomplished via reports on those measures reflective of the quality system. The Quality Control Manger also acts as the primary communicator with reference to any outside bodies affecting the quality system. MANAGEMENT REVIEW From time to time the Quality Control Manager reviews the quality system’s methodology and its application to the ISO 9002 Standard. Revisions to the manual and quality system is made as required to guarantee the quality of the product, services, and the needs of the company. The Upper Management and staff conduct regular reviews of quality issues. These documented reviews are used for further corrective plans. QUALITY SYSTEM In Al-Ghazi Tractors Ltd. the quality control program is a formally documented system of planned activities established to provide evidence of compliance to the requirements of applicable regulation, codes, standards, contractual specifications, drawing, ISO 9002, as well as the company quality policy. All of these activities are governed by procedures and written instructions supported with records of training and satisfaction compliance of products and processes. QUALITY PLANNING The quality manuals and all the supporting departmental procedures are referred to as the quality plans. The preparations of these plans are responsibility of the Production Department and Personnel Department and they maintain them in conjunction with senior management review. CUSTOMERS ORDERS The firm maintain a documented system with appropriately maintained records to ensure the appropriate review of the customer’s orders. This ensures that the order is well understood by both parties and we have the capability to meet the requirement. These procedures require agreement prior to the acceptance to the order. It is the responsibility of the sales organization to ensure a comprehensive documented integration of this requirement exists. AMENDMENTS TO CONTRACTS The organization maintains procedures for the processes used to amend a customer requirement to ensure compliance with the request. RECORDS The customer orders (contracts) shall be maintained by the sales department for the duration of the warranty period plus one-year unless otherwise requested by the customer. Documented procedures exists to support the retention of these records. DOCUMENT AND DATA CONTROL
  • 24. At Al-Ghazi Tractors Ltd. the management has established document and data control procedures for the collection, maintenance, and distribution, one of key requirements of ISO 9002 implementation. It is the responsibility of each department to follow the established procedures for the collection, maintenance, and distribution and control of all the documents, instruction, and data in their operations to meet the intent of the ISO 9000 standard. In Al-Ghazi following documents are maintained and controlled. Policy Documents Quality Manuals Operations Procedures Quality Procedures Specifications of materials Inspections & Test Criteria Process Technology Quality Plans Work Instructions Storage Handling & Maintenance Instructions Quality Audit Training Document DOCUMENTATION APPROVAL AND ISSUE All departments in Al-Ghazi have established the procedures and maintenance of the documents. Documents and Instructions are established to handle and avoid a lack that could adversely affect the quality of the process, product, or services provided by the operation. A master revision listing of the documents of the vendors is maintained and issued by the quality control department at the end of each month to Vendor Development Department for further purchasing decisions. It is the responsibility of the all departments to ensure that only current documents are available for usage. Obsolete documents must be promptly removed by the department and adequately identified as available for reference only. DOCUMENT CHANGE Prior to the issuance of any new procedure/instructions/documents approval is required from the Upper Management. To upgrade a document related to quality, the quality control department required to provide a new revision about whether it is possible and feasible or not. When making changes, it is required that the changes from the previous instructions should be highlighted to ensure the proper changes are readily implemented. All of the department are informed and provided with attested copies
  • 25. by the concerned manager and upper management, with modified or upgraded documents for information and implementation. PURCHASING Providing the best quality products require best raw material that meet certain required specifications. It is the most important function in ISO 9000 standards implementation requirement. The purchasing department plays an important role in that it makes documented policies about the purchasing. In Al- Ghazi Tractor Ltd. the purchasing department situated in head office has established and maintained a documented process with appropriate records that ensure the purchased products meet defined specifications. EVALUATION OF THE SUPPLIERS The purchasing department has established documented procedures with the co-operation of quality department by which supplier are selected. Their selection incorporates at least three considerations in the following priority: Their ability to deliver material that meets the product specifications. The evaluation of the quality of the products by quality department to ensure that consistent and desired quality and delivery requirements are met. A cost competitive delivery of the material. The purchasing department in conjunction with the quality control department determines the methodology employed to ensure the receipts of the appropriately conforming materials. The purchasing department in conjunction with the inspection of incoming materials maintains records of the supplier’s performance. The purchasing department only purchases materials from approved suppliers/vendors. It is the responsibility of the purchasing department to establish and maintain procedures for the generation of an acceptable supplier listing. The listings of approved suppliers must have the approval of the quality control department. PURCHASING DATA The purchase orders provided to the suppliers contain appropriate information about standards, specifications, and drawing testing criteria of the company packaging, delivery schedule, mode of transportation. VERIFICATION OF PURCHASED PRODUCT The purchasing department has defined the documented procedure how they will ensure that all materials introduced into the operations have undergone a review for conformity. The purchasing department looks and checks the materials by commodity grouping according to defined inspection routines for each commodity. PRODUCT IDENTIFICATION AND TRACTABILITY
  • 26. There are procedures for proper identification and documentation of materials it is understandable and can be recognize by all the individuals in the factory. The items and products are assigned numbers for identification that are stored in cases, by the material handling and storage department. These procedures incorporate intractability of the items, components and semi or finished goods along with the appropriate recording of status of batch. PROCESS CONTROL This includes operating instructions for all department and employees that affect quality. Specific work instructions and procedures have been defined and documented where there is a lack that adversely affect quality, it includes. Documented work instructions / procedures that define the manner of production, installation and servicing. Use of suitable production and installation equipment. Suitable working environment. Compliance with referenced standards / codes and quality plans. Monitoring and control of suitable process and product characteristics during production. Approval of process and equipment as appropriate. There is suitable maintenance of equipment to assure continued capability & capability. Specific training and instructions are given to employees to understand and retain specific records for these special processes. For employees it is recommended that they follow the assembly line instructions flow-charting method. INSPECTION & TESTING In Al-Ghazi Tractors Ltd. there is a well-established computerized Material and metallurgical laboratory in the plant where operations are performed to check the strength and the appropriate specifications of items. All procedures and activities affecting testing are overseen by quality control and their signature on the proposed procedure is required to the Hovel Card which is attached with gear box and it remain with it until the compelition of the product. INSPECTION AND TESTING OF RECEIVING ITEMS. At Al-Ghazi it is responsibility of inspection department to ensure that no material can be used until they can verify compliance with the specified material requirements. The inspection is carried out in Material and metallurgical laboratory by taking a sample from the lot and according to the documented inspection procedure. Quality control engineers approve the testing procedures. WORK IN- PROCESS INSPECTION AND TESTING
  • 27. The production department is responsible for work in process inspection and testing. At Al-Ghazi Tractors Ltd. the production department has generated a comprehensive inspection and test plan. This testing plan is based on documented testing instructions. No materials may bypass these inspection plans or continued to be processed without successful completion of the test and inspection requirements. For this purpose many quality inspectors have been assigned on the assembly line. On assembly line the output of one is the input of other one, due to this there are less chances of bypassing a defective item. FINAL INSPECTION AND TESTING The production department has generated a comprehensive inspection and test plan that ensures that all defined testing requirements are met. In the last a complete testing plan is formulated to ensure the quality and conformance of the final product. No product may by pass until the final inspection. INSPECTION AND TESTING RECORDS A Hovel Card moves on assembly line from beginning to the end. Each observation and testing made by any person is checked and he signed on the card. If any person commits any mistake he is the responsible for it CONTROL OF INSPECTING, MEASURING AND TEST OF EQUIPMENT Being a engineering work in the factory, all of work is performed through machines and equipment’s. Quality and Inspection departments in Al-Ghazi Tractors Ltd. have established and maintained documented procedures to select, control, calibrate and maintain inspection, measuring, and test equipment used to demonstrate conformance of the product or items. These devices include measurement tools, gauges, or any other “device” used to ensure conference. The devices, machine is assigned to the appropriate individuals who knows how to make it run. or this the employees are properly given training so they are able to handle the instruments for security purposes. History of the equipment is maintained and whenever it become out of order, it is repaired properly to avoid further errors. CONTROL PROCEDURE All the devices are used on a schedule based on usage or duration of time. The schedule has been scheduled in such a way that the all the operations in factory are not affected. Documented inspection procedures exist for the calibration of equipment. That includes maintenance, duration between recalls, as well as the actual testing for which the device is being used. No unauthorized person can make changes in the devices. INSPECTION AND TEST STATUS: Production department has established documented process with procedure for ensuring that all materials / products carry a test status. The incoming materials or items are checked by Inspection department, after successful checking they paste a material transfer tag designating transfer for
  • 28. acceptable materials, if the material is not up to the mark than a further tag is pasted on the lot for further decisions. The work in-process inspection stations demonstrate compliance on HOVEL CARD on which each person who performs a particular activity sign about the conformance and specification of or item used. On assembly line there are many inspection stations where quality control inspectors are assigned that checks the progress and quality of process as well as material used. Final inspection is done by a group of quality inspectors and it validates the existence of all prior inspection against the check sheet as well as the test data and sign of on acceptance. This check sheet acts as the quality records. NONCONFORMING PRODUCT REVIEW AND DISPOSITION When a material is found to be defective/nonconforming then according to established procedures are placed for appropriate disposition. Quality department initiates the authority for disposition of products. By taking a sample from the lot the inspection department checks the specification of the product. If it is up to mark than it is accepted. If not than further actions are taken thorough investigation of the defects, the result of which can fall into the following categories. Reject the lot. Check whole the lot on the expenses of suppliers. If less than 20 % lot is defective accept non-defective parts. If more than 20 % than reject the whole. All decisions by the Inspection department results from an investigation of the material specifications. Any compromise to the material will require notification of the affected parities. CORRECTIVE AND PREVENTIVE ACTION: All departments in Al-Ghazi Tractors Ltd. have established and maintained procedures for implementation of corrective and preventive actions. It is the slogan of the company that: “We always take corrective actions not just corrections” These non-conformities are collected, analyzed, and than with root-cause philosophy they are corrected. Safety issues have received top priority and immediate allocation of resources. In all cases where a corrective or preventative action is employed, a record of the changes made shall be recorded and the record is maintained for further actions. 1-Corrective Action A corrective action results from a customer, employee of factory or a report of a product nonconformance. The sales department maintains a documented process by which the complaints are complied, analyzed, and corrective action are taken. A report is generated to Senior Management about complaints made by
  • 29. the customers for the solution. Corrective actions are than taken by the management after reviewing the situations. 2-Preventive Actions: A preventive action is taken on the information indicating a nonconformity within the operating process that affects quality. These information are gathered by way of internal audits, quality records, yields shortfalls, service reports, customer complaints, employee’s indication or any other areas indicating process failures. The quality department than takes action for the prevention of such failure/shortfalls in the future. The quality control department maintains documented processes by which the shortfalls are complied, analyzed and preventive action initiated and tracked. This prevention action is addressed not only the root causes but also the application of controls to ensure its effectiveness. Senior management reviews a report of the corrective and preventive actions. HANDLING, STORAGE, PACKAGING, PRESERVATION AND DELIVERY There is separate department for handling and storage of all the input materials has established and maintained documented procedures for the handling, storage and preservation all input products. 1-Handling There are appropriate trained employees to ensure the proper and safe handling of materials. All forklift drivers are trained to operate the lift. 2-Storage When an item or product come in the premises the employees put them to large case which contains their identification number and name of that commodity. There are appropriate trained employees in the handling and storage department that ensure the proper and safe handling of materials. All materials are stored to prevent deterioration as well as support easy retrieval for usage. It is the company’s policy to follow a “first in first out” inventory policy and all material storage procedure is accommodate to this policy. Those materials that are sensitive to environment like it is very important to make safe the engine from dust the engine is kept remained within the case in store and it is not place openly. All the material is properly handle, continually monitor, and removed if inappropriate. All other materials are monitored at regular intervals to detect deterioration. Receipts for storage and dispatch of materials from storage and handling department are issued and received by authorize persons. 3-Packaging The trained employees of materials handling and storage department package supporting materials which is given with the tractors. They also maintain packaging of the materials, which are to be use in the internal operations.
  • 30. 4- Preservation A big secure store area has been established in the plant in material and handling department to segregate the input and semi-finished products to ensure its preservation. 5-Delivery There is network of dealers of Fiat and New-Holland tractors from Karachi to Gilgit in Pakistan. About 98 % of tractors are sold through Agriculture development Bank of Pakistan and only 2 % sales are on net cash. The tractors are delivered to customers through the dealers or they may buy from company premises. CONTROL OF QUALITY RECORDS All departments that are related with quality have established and maintained documented procedures on how they handle quality records. The procedures have been establish that through light and guide about: Methods for collection of quality records Methods for accessing of quality records Filing the quality records Storage of quality records Maintenance of quality records Disposition of quality records. The purpose of the records is to demonstrate confirmance to the specified requirements of the quality system. TRAINING There is a well-established training institutes in the company. Where all employees who affect quality are given training from time to time. Training is given to the managers and workers to increase the performance at every level. This improvement in performance is directed towards satisfying such cross-functional goals as quality, schedule, and others activities. Before final audit of ISO 9002 implementation in the company all the employees who are concerned with quality were given training so that all the employees could understand all the documented procedures, authorities and responsibilities of each other in the company. Some managers were sent to different seminars and workshops to learn about ISO 9002. SERVICING Al-Ghazi Tractors Ltd. has offered after sales service to its customers on both Fiat models. The sales department has established and maintained documented procedures and records as related to the services provided. When a customer has some problem in machinery he contacts the nearby dealer of the company which prepare a claim and send it to head-office for further actions. STATISTICAL TECHNIQUES
  • 31. Each department in Al-Ghazi Tractors Ltd. has established and maintained documented procedures to implement and control the applications of statistical techniques in their operations. These procedures have been established in conjunction with the quality control department. To confirm the processes and product performances and in an attempt to increase it, following statistical techniques are being used Sampling Formulas for evaluating sampling