final report on PTC

Department of Management Sciences
COMSATS Institute of Information
Technology, Attock
e
2015
Pakistan Tobacco
Company
Akora Khattak
Factory
[ ]
SubmittedBy:
 Bahadar ali
15 JULY – 31 AUGUST 2015
SubmittedTo:
 Mr.MohsinUllah
(Lecturer,CIIT Attock)
INTERNSHIPPROJECT REPORT

PakistanTobaccoCompany | AKF 1
Pakistan Tobacco Company,
Akora Khattak Factory

ACKNOWLEDGEMENT
At the very outset, I am grateful to Almighty Allah for giving me the opportunity, strength and
ability to accomplish the internship program.
Firstly, I would like to express my thanks to my internship line manager Mr. Kamil Shahzad (HR
Manager) for his daily guidance and his outstanding support regarding my project.
Secondly, I would like to show my gratitude to Mian Hameed (HR Senior manager) who
willingly took responsibility and gave me a lot of time and support on each and every step.
I am grateful to HR Department and Logistic Department for helping me to get the information.
Last but not the least would like to thank my friends, family members and all those people who
helped me for the completion and deeper understanding of the project .Working on this project
was an enlightening experience for me.

Author’s Note
Being a part of Pakistan Tobacco Company (PTC) (at least for few weeks), a well reputed
multinational organization is a great privilege for me. These 6 weeks internship not only gave me
technical knowledge but also helped me to improve both professionally & personally
This report gives full details of what I have learnt during my internship in HR department (AKF).
is a big factory and is a right place to learn technical and practically both.
In PTC an internee is assigned a project which he/she has to complete with in assigned time, so I
was also assigned a project that was Managing Performance at PTC, : Performance Appraisal
As the technology is growing the man is becoming a ‘human machine’. This means he has to
perform a lot of tasks within short time, similar is case for engineers they have to design,
implement, run and maintain the machines which require a lot of time. To increase the efficiency
they create some standards and according to those standards they manage their work and
machines. They have a record of that standardized data which is always with them for any
assistance. This data is about different steps of this process e.g. from feeding to delivery end all
the steps are included in this.
I studied, analyzed and presented the data of Yield Reconciliation and all the steps of Yield
Reconciliation which is followed and not followed in GLT and highlighted the Gaps and gave
Recommendations. My presentation is given in appendix 1. You can refer to it for the summary of
internship. T presented this to the management.

FORWARD
The purpose of this report is to give an overview of what I have done and learned, during period of my
internship in PTC (AKF).
This report primarily focuses on the ‘Managing Performance at PTC, project assigned to me. It also gives
overview of PTC.

PREFACE OF THE REPORT
Internship program is a prerequisite for all universities bachelor’s degree. It is an opportunity for
the students to know about the practical environment of the real business world. I had the
opportunity to work as interns at HR Department of Pakistan Tobacco Company, Akora Khattak
Factory. Managing Performance at PTC,.The findings from this project will help factory
management in further decision making, to improve the productivity.

Table of Contents
ACKNOWLEDGEMENT..........................................................................................2
PREFACE OF THE REPORT.....................................................................................5
Chapter # 1..........................................................................................................8
PAKISTAN TOBACCO COMPANY............................................................................8
1.1 INTODUCTION TO THE ORGANIZATION........................................................................................8
1.2 PAKISTAN TOBACCO COMPANY...................................................................................................9
1.3 History of Pakistan Tobacco Company..........................................................................................9
1.4 Vision, Mission, and strategies...................................................................................................10
Strategic objectives of Pakistan Tobacco Company...........................................................................11
1.5 Product Line of Pakistan Tobacco Company................................................................................15
1.5.1 Upper slap..........................................................................................................................16
1.5.2 Middle Slap........................................................................................................................16
1.5.3 Lower Slap .........................................................................................................................17
1.6 MAIN BRANDS..........................................................................................................................17
1.7 SWOT Analysis..........................................................................................................................19
1.7.1 Strengths ...........................................................................................................................19
1.7.2 Weaknesses.......................................................................................................................19
1.7.3 Opportunities.....................................................................................................................19
1.7.4 Threats ..............................................................................................................................20
Chapter # 2........................................................................................................21
HRM DEPARTMENT AT PTC................................................................................21
2.1 HR Mission Statements at PTC:..................................................................................................21
2.2 Human Resource Strategies.......................................................................................................21
2.3 Different HR Practices at PTC:....................................................................................................22
2. 3.1 Recruitment and Selection at PTC:......................................................................................22
2.3.2 Internal Recruitment:..........................................................................................................22
2.3.3 External Recruitment:.........................................................................................................23
2.4 Hierarchy of HR Department .....................................................................................................27
Chapter # 3........................................................................................................28
OVERVIEW OF AKORA KHATTAK FACTORY / THE SUPPLY CHAIN FUNCTION.........28
3.1 A complete overview of PTC Supply Chain Function....................................................................28

3.2 LEAF / LEAF Agronomy Department...........................................................................................28
3.3 Green Leaf Threshing Department (GLT): ...................................................................................29
3.3.1 Introduction:......................................................................................................................29
3.3.2 Objectives..........................................................................................................................30
3.3.3 Functions of GLT:................................................................................................................30
3.3.4 GLT Process:.......................................................................................................................31
3.3.5 Operational Sequences of the GLT Plant: .............................................................................32
3.4 GLT PLANT................................................................................................................................33
3.5 Primary Manufacturing Department (PMD)................................................................................34
3.6 SECONDARY MANUFACTURING DEPARTMENT: ..........................................................................35
Chapter # 4........................................................................................................36
4.1 Purpose of Performance Management Systemin PTC.................................................................36
4.2 Performance Managementin PTC..............................................................................................36
4.3 Managing work.........................................................................................................................37
4.5 Recommendations:...................................................................................................................39
Chapter # 6........................................................................................................41
Drawbacks, Recommendations ..........................................................................41
6.1 DRAWBACKS.......................................................................................................................41
6.2 Recommendations:...................................................................................................................42
CHAPTER-7........................................................................................................43
7.1 CONCLUSION...............................................................................................43
Refrences..........................................................................................................45

Chapter # 1
PAKISTAN TOBACCO COMPANY
1.1 INTODUCTION TO THE ORGANIZATION
The business of British American Tobacco was originally established in 1902. When to
end an intense trade war. The imperial Tobacco Company of the United Kingdom and the
American Tobacco Company of the United States agreed to form a joint venture, the ‘British
American Tobacco Company Limited’.
The BAT business began life in countries as diverse as Canada, china, japan, Denmark
,Germany, New Zarland, south Africa and Australia-but not the UK or the USA, By 1910,its
operations had extended to the west Indies, India, Ceylon (now Sri lanka).East Africa ,java
,Malaya (Now Malaysia) and Nigeria. BAT listed on the London stock Exchange in 1912 and
British investors acquired most of the American parent’s shares.
BAT held strong market position around the world and had leadership in more than 50
markets. Since 1994, the group has grown global market share from 10.7 percent to over 15
percent. BAT has 86 functions in 64 countries. BAT uses more than 700 million kilos of
tobacco and has 25 leaf growing projects and 23 leaf processing plants, with over 300 brands
in BAT portfolio and a market share of 15 percent, make the cigarette chosen by one in seven
of the world’s one billion adult smokers.BAT differentiated portfolio of brands included Ill
established international brands such as Lucky Strike, Kent, Dunhill, Benson & Hedges, 555,
viceroy, Pall Mall, John Player Gold Leaf (JPGL). BAT is the second largest quoted tobacco
group with annual shipment of more than 800 billion cigarettes.

1.2 PAKISTAN TOBACCO COMPANY
Pakistan Tobacco Company is the first- Multinational Company of Pakistan and recently
completed 60 years of its operations in the country. The company is the member of
multinational British American Tobacco group, which employs over 100,000 people, operates
in 180 countries and is one of the top 5 FMCG trade marketing companies in the world.
1.3 History of Pakistan Tobacco Company
PTC was incorporated in Pakistan and is listed on the three stock exchanges of the
country.it was established in the same year when Pakistan took its birth in 1947, and took
over the business of imperial Tobacco Company (India). It had three branches –Karachi,
Jhelum and Akora Khattak, but Karachi factory however has been closed since 1992 due
to heavy losses and some other reasons. The first plant was set in warehouse in Karachi
port with monthly production of 30 million cigarettes against sales of 60 million, the gaps
being filled up by import. When Pakistan came into being all tobacco was imported in for
production of cigerattes.But in 1952, a development project was initiated in N.W.F.P and
the top quality American Tobacco found way to Pakistan. A factory was established in
1955 at Jhelum, and PTC becomes a Public Limited Company in the same year. In 1975 a
new cigarette factory was set up at Akora khattak to, meet the increasing demand. Akora
khattak factory is now one of the largest factories of N.W.F.P.
Pakistan Tobacco Company has divided the whole country into 5 regions (Central Punjab,
Southern Punjab, northern Punjab Region, and Lower Sindh).within each region, there are
five to six areas, and each area is further sub-divided into direct delivery and wholesale. In
total, the company has five regions, 22 areas, 355 distribute sand 12 area warehouses.
After six years of serial losses (1997-2002), Pakistan Tobacco Company Limited has
managed to swing back to a profit of 354 million in 2001. The accounts for the six months
to end-June 2002, released recently, show 2% slip in the top line to Rs10.8 billion for the
corresponding period of last year.Pre-tax profit, nonetheless, rose sharply by 175% to
Rs.415 million, from Rs.152 million and after tax profit should growth of 92% to Rs.248
million, from Rs.129 million. New products introduced during the past two years
accounted for 33% of PTC’s sales during the six months under review, during which the
company said to have unparalleled performance in new product innovation in the cigarette
industry. The company has continued to claim that five out of the five top selling brands in

Pakistan are those of PTC.They include Gold Flake,Capstan,John players Gold Leaf and
Embassy. The company had paid the last cost dividend in 1995.The 10-rupee share in PTC
hit its record high at Rs.162 in 1994. The prize slipped over the year to hit the lowest
Rs.8.50 in 2000; but the stock has now recovered to Rs.60.25. The board didn’t declare a
dividend for shareholders for 2001 and used all of the profit to wipe out the huge
accumulated deficit of Rs.337million on the balance sheet. But the important thing is that
the shareholders’ equity is back in the black.at end – June 2002, shareholders’ equity
Amounted to Rs.2.820 billion, with Rs.2.555 billion being the paid up capital. For PTC , it isn’t
still a smooth journey “I reiterate that tax evading sector remains a major threat to the government
revenue and to my business,” directors complain in their half term report, adding that the steps
taken by the governments in the past to check evasion had been encouraging. However, recent
increase in activities of the tax-evading sector was stated to be alarming; the company urging
government support in the matter.
1.4 Vision, Mission, and strategies
Vision
 First choice for everyone
Mission
 Transform PTC to perform with speed, flexibility and enterprising spirit of an innovative,
consumer focused company with a long vision of becoming the FIRST choice for everyone
Key Objectives
 Drive with standards in products, process and services through passion, skilled and confident
people.
 Strive to meet stakeholder expectation.

Strategic objectives of Pakistan Tobacco Company
My strategy reflects vision, being the champions of growth productivity, responsibility
and the wining organization.
Business Principles
PTC follows three fundamental business principles:
1. Mutual Benefits
2. Responsible Product Stewardship
3. Good corporate Conduct each Principle is supported by a series of core Beliefs
Which are explained below:
Mutual Benefits:
The principle of mutual benefits is the basis on which I build my relationship with my
stakeholders. I are primarily in business to build long term shareholder value and I believed the
best way to do this to understand and take account of the needs and desires of all my stakeholders.
Core Beliefs
 Creating long term shareholder value.
 Engaging constructively my stakeholder.
 Creating inspiring my environment of my people.
 Adding value to the communities in which I operate.
Responsible product stewardship
The principle of responsible stewardship is the basis on which I meet consumer demand for legal
product that, put simply, is cause of serious disease, Therefore, my products and brands should be
developed, manufacture and marked in a responsible manner. I aspire to develop tobacco products
with critical mass appeal that will, over time, be organized by specific and regulatory authorities
as posing substantially reduced risks to health.

Core Beliefs
 Provision of accurate, clear health messages about risks of tobacco consumption.
 Reduction of health impact of tobacco consumption whilst respecting the right of
informed adults to choose the products they prefer.
 Continued availability of relevant and meaningful information about my products.
 Underage people should not consume tobacco.
 Responsible marketing of my brands and products and directed at adult consumer.
 Appropriate taxation of tobacco products and elimination of illicit trade.
 Regulation that balances the interests of all sections of society, including tobacco
consumers and the tobacco industry.
GoodCorporate Conduct
The principle of good corporative Conduct Id the basis on which all my business should be
managed. Business success brings with it an obligation for high standards of behavior and
integrity in everything I do and whenever I operate. These standards should not be compromised
for the sake results.
Core Beliefs
 My business upholds high standards of behavior and integrity.
 High standards of corporate social responsibility to be promote within the tobacco
industry.
 Universally recognized fundamental human rights to be respected.
 Tobacco industry to have a voice in the formation of government policies affecting
it.
 Achieving world class standards of environmental performance.
Guiding principles
PTC follow fmy guiding principle that represents:
1) Strength from diversity
2) Open minded
3) Freedom through Responsibility
4) Enterprising spirit

My guiding principles describe the organization I are and the type of organization I want to be.
They represent the common value at the heart of my success.
 Strength from diversity
Strength from diversity reflects the culture mix within the company and the work environment
that respects employee’s individual differences. It also reflects my vision of harnessing
diversity – of people, cultures, viewpoints, brands, markets and ideas.
 Open minded
Open minded reflects my openers to change, opportunities and new ideas, including ways of
addressing regulatory issue and changing social expectations. I seek to listen without
prejudice, actively and genuinely considering other view points.
 Freedomthrough Responsibility
Freedom through responsibility desires how to make decisions: as close to the consumer to the
consumer as possible. It also affirms my belief that decision-makers should accept
responsibility for their own decisions.
 Enterprising spirit
Enterprising spirit has been a characteristic of my business for more than a century. It is to
reflected my ability to grow my business and its value within challenging environments-in the
confidence to seek my opportunities for success, to strive for innovation and to accept
considered risk-taking as a part of doing business.
Business ProcessRe-Engineering
Appreciating the importance to change the status quo for continuous improvement and deliver
strong business results in a sustainable way, PTC has always been on the lookout for

opportunities to enhance the speed, efficiency and reliability of PTC’s process, several BPR
projects Ire undertaken during 2006 and 2007 including the setting up of the enterprise program
office (EPO), projects slender at Akora Khattak Factory and the supply chain operations
References (SCOR) model implementation. EPO puts in place a new way working, which keeps
corporate strategy at the forefront and ensure all the initiatives are aligned to support the strategy
through effective program management and allocates resources to the best fit priority areas.
Project slender entails relocation and resources, changing the layout of production floor in a way
to boost process effectiveness and achieve higher productivity without employing
Additional resources SCOR model is being implemented all across the supply chain i.e. from seed
to smoke, for achieving cost optimization and improved process efficiencies.
Corporate socialresponsibility
PTC has been at the front of CSR subsequent to its initiatives of a forestation, mobile free
dispensaries, eye via Layton Rehmutullah Benevolent Trust, Leering resources Center, non-
formal education through the NGO adult basic education society, supporting citizen’s foundation
to prove educational facilities for the children and installation of water filtration units.
Rehabilitation of earth quack Affecter’s in Battagram, inaugurated in September 2006. In
November 2006 PTC under look a project to combat the spread of viral hepatitis in northern
Areas. In 2005 PTC become the first company in Pakistan to publish a duly audited social report.
Second cycle of the social reporting dialogue, based on issues identified in the stakeholders
mapping classification exercise, was competed in November 2006 and the social report is planned
for the publication in early 2008. Best practices of good corporate conduct governance being
adhered to include producing an annual report that provides quality information to all
stakeholders.
Environment, Health and Safety(EH&S)
Being fully alive its role as a responsible corporate citizen PTC has implemented a Ill-structured
EH&S program in addition to embedding internationally recognized best practices, PTC is
committed to ensure that it nurture an environment where its employees and surrounding
communities are safe from any hazards that may affect their health and minimize the impact of

its operation on biodiversity. PTC’s commitment to EH&S was further strengthened during 2006
as PTC achieved significant improvement on the EH&S road map. Both its production facilities
Ire rectified with ISO 14001 earning the “Evergreen” status. PTC has consistently sustained its
accreditation in last seven surveillance audits with zero major and Minor points. PTC’s efforts has
further been sustained with National Forum for Environment & Health awarding PTC the Annual
Environment Excellence award on “Health safety and Environment “. For the second consecutive
Year in 2006. Throughout the company’s history. It has maintained a strong stance on corporate
and social responsibility; it strongly believes effective and constructive partnership with
communities by helping address various EH&S issues.
Over the year the company has invested substantial resources in terms of finances and man poIr in
various initiatives like mobile free dispensaries, Learning Resources Center and portable water.
Environment, Health & Safety (EH&S) policy:
It is PTC’s policy to:
 Provide and maintain a safe and healthy working environment including use of cleaner
technologies and safe system of all its employees and non-company personnel on the
company premises.
 Pay due regard to all impact of its activities on the physical environment.
 Comply with all applicable national laws and regulations BAT policy pertaining to
environment Health and Safety.
 Establish procedure to regularly assess and reviewing the EH&S performance.
 Adopt a proactive role to continually identify cost – effective measure, which it can take
to reduce pollution, safeguard the health and safety of its employees, non-company
personnel on company premises, the neighboring communities and the physical
environment.
1.5 Product Line of Pakistan Tobacco Company
The PTC have a stretched product line covered every segment but comparative to its competitor
its loIr segment is very short. PTC generates most of its revenue from middle slap the following
are the product line segmented into upper slap, middle slap, and loIr slap.

1.5.1 Upper slap
 Benson & Hedges 20HL
 Benson & Hedges 10HL
 Benson & Hedges light
 Gold Leaf 20HL
 Gold Leaf 10HL
 Gold Leaf flavor
1.5.2 Middle Slap
 Capstan int. KSFT 20HL
 Capstan int. KSFT 10HL
 Capstan LSFT 10 SS
 Capstan by pall mall 20HL
 Capstan by pall mall 10HL
 Wills king 20 HL
 Wills Navy Cut 10SS
 Will international 20HL
 Wills international 10HL
 Gold Flake 20SC
 Gold Flake 10HL
 Gold Flake 20 HL
 Gold Flake Supreme 10HL
 Gold Flake Supreme 20HL

1.5.3 Lower Slap
 Embassy kings 20HL
 Embassy king 10HL
 Embassy 10SS
The cigarettes are packed in two different style boxes. They are called Sheel in side (SS), Henge
led (HL), the interesting thing is that the different plants are installed for the both style packing.
Sheel in Slide is imported while Henge led is made in the factory.
1.6 MAIN BRANDS
PTC has always considered itself a consumer focused company. They aim to offer a product
that excels in all aspects and exceeds the expectations of the consumer. PTC has particular
emphasis on its five national drive brands.
Benson& Hedges
In 1873 Richard Benson and William Hedges started a partnership in London. From the
very start, the idea was to make Benson a style statement, which is why the business
started from London’s fashionable 1st End. PTC launched Benson & Hedges in Pakistan
in 2003. Made with the finest hand-picked golden Virginia tobacco from across three
continents, the brand is packed with perfection to seal its freshness. The objective of
introducing the brand his brand is to establish the locally manufactured B&H light is the
most preferred offer amongst consumers, in the premium lights segment and to add image
to the B&H family by offering avoider product range. It was launched in the three metros
of Karachi, Lahore, Islamabad and Rawalpindi.
JOHN PLAYER GOLD LEAF:
The story of john player Gold leaf has to start from the story of its founder, john player.
An enterprising businessman, john player started a small tobacco selling business in 1877
and turned it into a thriving cigarette company, John player and son’s With a distinct
lifebuoy and sailor trademark john player Gold Leaf has an identity entrenched in salling
and maritime adventure. Thus staying true to john player’s very first big brand Player’s
Gold Leaf Navy Cut Cigarettes. Gold Leaf is the key value and the volume contributor for

PTC. It remains the most aspire brand in Pakistan. From 2000, the brand is showing
continuously growth.
Capstan
Capstan has a rich heritage, organizing in Britain in the 19th century. The brand was
created under the auspices of W.D & H.O WILLS and London. Capstan has grown by
leaps and bound to become the fastest growing brand of Pakistan Tobacco Company
(PTC) in the year 2001, recording a straggling growth rate of 104% overtaking sales
volume of the major competitive brand in the Carly part of the year, And consistently
outselling it throughout.
Gold Flake
Gold Flake, like many of ur brand also boasts its origins at W.D & H.O. WILLS where it
was a premium brand took off the end of the 19th century. Launched in 1982, in a “soft
cup” packing, the brand took off when it was repositioned in the value for money segment
and later a ‘hinge lid ‘ variant was introduced in 2000. Gold Flake is PTC’s largest brand
in volume terms and is also a significant contributor towards the value share. A highly
successful pack design change In 2004, soon after the new pack was launched in the
market and Gold Flake smokers accept the new design of the pack, at this point an
aggressive promotion in the market that would ensure the maximum exposure of
competition smoker to the new pack. There are three new variants Ire added into the
family; Gold Flake 14HL, Gold Flake 10HL, and Gold flake 10SC, in order to offer the
consumers a wider choice.
Wills King
WILLS take its new name from the heritage of one of the original Imperial Tobacco
Company Families; the Wills Brothers of London, Wills is also a Ill-known brand in
Pakistan.

Embassy
The third leading volume brand in Pakistan is the most popular in the Punjab where it
enjoys a leading position due to its equity and loyalty. Embassy continued its growth in
the year 2001 fortifying its position in the market. The brand registered a growth of 3%
over in 2000. Major focus during the year remained on the introduction of more extended
relevant packaging variants. In the third quarter of 2001 the brand family was extended
with the introduction of Embassy filter 16ss pack followed by Embassy kings 14HL. With
the launch of these variants, the family now offers more choice its consumer at affordable
price.
1.7 SWOT Analysis
1.7.1 Strengths
In the analysisof the Strengthsof the companywe focusedonthe competenciesof the PTCitsentirety.
� Continuous learning and improvement.
� Sustainable growth.
� Environmental standards achievement.
� Market leadership in the world.
� being beneficial to the community (Corporate Social Responsibility)
� Diversified workforce and environment.
� technologically advanced machinery and equipment’s.
� Good salaries packages.
� Focus on health and safety on the company premises.
� Training and development of its employees.
1.7.2 Weaknesses
� Salaries difference between workers who work more and the one who put minimum efforts.
� Technological advancement would decrease the workforce and unemployment will increase.
� Very minimum marketing as compare to its competitors.
� Workers are always under threat because of downsizing.
�Improper distribution of work.
1.7.3 Opportunities
� Greater opportunity of promoting lower brands in rural region.
� PTC has the potential to further improve the cost reduction method.

� Create a better work environment in GLT department because of more hazards in this
department.
� lowering the downsizing will create a good image in the eye of regulatory authorities and
government.
� Focus on its key brands i.e. high growth like Gold Flack this year’s growth was around 27%.
� Export of premium brands.
1.7.4 Threats
�Some of its competitors are also producing high quality brands like Marlboro by
Lackson.
�internationally some countries are continuously promoting anti-smoking slogans like the ban of
smoking in Bhutan in 2002.
� Better marketing campaigns by rivals.
�Their well-established brands are highly copied by some local manufacturer.
�The political, economic situation is not stable in Pakistan.
� Limitation of their product,
� Decline in tobacco growth

Chapter # 2
HRM DEPARTMENTAT PTC
2.1 HR MissionStatements at PTC:
“To leads the organization in enhancing its human capital and creating a winning environment
where everyone enjoys contributing to the best of one’s ability”.
PTC will achieve this by:
1. Inspiring and motivation its people
2. Development its people to strive for higher standards.
3. Driving an open minded and enterprising corporate culture where people through leadership
at all levels dare to dream, dare to try , dare to fail and dare to succeed.
4. Attracting and recruiting the best talent.
2.2 Human Resource Strategies
Human resource department will continue its effort towards nurturing an winning corporate
culture and building organizational capabilities by ensuring that its people at all levels are both
able and willing to perform at consistently exceptional levels. At PTC the people have been
employed to a large degree by minimizing out dated rules/regulations and plan to further

eliminate the bureaucratic barriers to capitalize on their ingenuity and talent. The top team
Continue to play its role in providing the guidance and support to people at all levels. The HR
(people) function ensures that it leads the transformational change by nurturing a climate, which
would help in converting the huge potential at disposal of the company into world-class
performance.
The active and effective role played by HR in people development at different levels
organizational, departmental and individual is considered in PTC to be one of the most critical
factors leading to the development of winning corporate cultures. The effort continues to be
directed towards developing the skills of the shop floor employees, improving competencies of
Business
Support Officers (BSO), and enhancing the leadership qualities of managers.
2.3 Different HR Practices at PTC:
These are few of the HR practices that I have learned at PTC from my resource person.
1. Recruitment & Selection process
2. Performance appraisal
3. Training & Development
4. Reward Management
5. Employee Discipline
2. 3.1 Recruitment and Selection at PTC:
In PTC, the activity to fill a vacancy or a new job starts with the requirement communicated by
the respective managers to the HR department. The HR department then looks for the possibilities
of internal and external recruitment.
2.3.2 Internal Recruitment:
In PTC, internal recruitment is done for the managers of the higher grade and directors. When
position is vacant, the HR department views the past performance of the people working at loIr
levels than the vacant position and chooses the right person who is promoted to that position. At
the director level, the internal recruitment process is from PTC or from any other subsidiary of
BAT. The decision of recruiting a director from a subsidiary of BAT is not in the hands of the HR

department of PTC or any of the PTC executives. The directors are allocated form the Asian
office of BAT.
2.3.3 External Recruitment:
For external recruitment in PTC, the line managers are required to make a requisition form for the
job in which they have to mention their need taking in account the budget for establishment and
salaries for the position of Management, Business Support Officers and Workers. Role profile for
the specified job is also prepared matching up the requirement and the grade of the job. Training
period is also specified on the requisition form. This process is given a total of 7 days. The
requisition form along with the role profile is sent by the line manager to the functional director
for his approval and then forwarded to HR Manager. The HR manager confirms the availability of
budgets required for establishment, salaries and cost of advertisement for the job. After all this,
the Requisition form along with the job profile and the budget forecast is sent to the JR Director
for his final approval. This process if required to be done in 2 days’ time.
After approval from the HR director the HR manager and the line manager Work hand in hand to
prepare job and person specifications for advertising or giving to the head hunters. They are given
a total of three days’ time to do that.
The sources that PTC uses to attract applicants are:
a) inviting applications through advertisement
b) Key campuses
c) Recommendations from the head hunters
d) Application obtained from the data bank of PTC where direct application are
received from time to time
This process is given a total of 5 days. PTC is also indulged in the marketing of their company as
being a good employer by the process which they call the “Campus Marketing Campaign”. The
objective of PTC by doing this is to attract the best graduates from the related areas of education
by increasing Awareness about PTC and BAT and to establish the company’s brand name as the
leading employer. For this, they have selected some key universities,which they target for the

campus Marketing Campaign. The universities targeted for attracting business students and
engineers are:
a. IBA Karachi
b. LUMS Lahore
c. QAU Islamabad
d. NUST Rawalpindi
e. UET Lahore
f. UET Peshawar
g. G. GIKI Tope
h. H.NUST Rawalpindi
i. Bahrain Islamabad
The universities targeted for attracting masters in tobacco leaf growing are:
1. Agriculture University Faisalabad
2. Agriculture University Peshawar
Graduate Recruitment teams are made which have the responsibility of recruiting new personnel
to PTC. These teams are also responsible for the Campus Marketing Campaigns. Each team has a
leader and the HR managers are responsible to provide administrative support to the recruitment
team leaders and are HR managers themselves are the members of these teams.
For business schools, the recruitment team leader is a grade 36 manager from Marketing or
Finance department. For UET Lahore and NUST, the Factory Manager of the Jhelum Factory is
made the team leader and for UET Peshawar the Factory Manager of Akora Khattak Factory is
made the team leader. In the same way for GIK Topi, the IT Manager,for Agriculture University
Faisalabad, the Crop Manager and for Agriculture University Peshawar the leaf manager are made
the recruitment team leaders respectively.
A two year marketing plan for each campus is made in which different strategies are formulated
to attract different target audiences. PTC has made different marketing plans for the
1. Faculty
2. Student Organization

3. Prospective MBAs
The marketing plan covers the following activities
1. Company and career presentation
2. Internships
3. Sponsorships Student events
4. Campus Advertising in magazines,journels and graduate directory to establish PTC and
BAT employer brand name
5. Organizing Lectures and Training Programs
6. Direct mail shots
After a substantial amount of applications have been received, the line and the HR manager again
work together for a total of 10 days to shortlist the applications. This is done carefully going
through all the application and by giving different weightage to the following criteria
a. Quality of early schooling
b. Grade obtained
c. Extra-Curricular activities
d. Overseas travel and education
e. Age
f. Target University
g. Relevant experience
The HR department then issue call letters to the short listed candidates along with blank
application forms by date, time and venue for the preliminary interview is advised and candidates
are asked to bring along completed application forms. A two-member panel of HR and line
management carries out competency-based interviews focusing on functional skills and
managerial and supervisory skills. The process is again given a total of 10 days.
After the preliminary interviews are cleared people applying for different jobs and tested different
ways. In case of management, Assessment Centers are organized for recruitment. Assessment
material is provided by BAT which is composed of case studies followed by discussions among

the applicants. The following management competencies are assessed by a panel of cross
functional assessors:
1. Communication skills
2. Resource management
3. Rational decision making
4. Influencing
5. Creative thinking
6. Business development
The HR department is responsible for overall administration of the assessment center including
training of the assessors. In case of Business Support Officers selection tests are designed to
assess functional, intelligence, writing and numerical ability. The line and HR managers prepare
the test papers. AH4 test is currently being used to assess basic intelligence, language and
numeric ability.
PTC makes sure that the candidates reporting for test from outside the city are reimbursed air,
train or bus fares. In case of workers, HR administers written aptitude and mechanical
comprehension tests in conjunction with line managers. Management focuses to finish all this in
15 days.
After all the tests, the candidates are again short-listed for the final interviews. The short-listing of
the candidates is based on their performance on the secondary stage of the recruitment and
selection procedure. Date and time for the final interviews is fixed with the selection board and
call up letters is sent to the candidates.
Candidates reporting for the final interviews from outside the city are reimbursed air, train or bus
fares where considered appropriate. The final interviews take a total of 7 days.
The candidates selected after final interviews are referred to PTC’s nominated doctor for medical
examination. The doctor sends his medical report to HR department. Candidates declared
medically fit are made an offer. The HR department provides details of remuneration package and
terms and condition of service. The HR department also prepares appointment letter, service
agreement and finalizes other documentation for service record.

2.4 Hierarchy of HR Department
HR Manager
HR Admin Officer
HR Manager
Assistant HR manager Assistant HR manager Assistant HR manager leaf &
GLT
HR Welfare Officer
HR Legal Affairs
Unionized Employee
UUnionized Employee
nionized Employee
Unionized Employee

Chapter # 3
OVERVIEW OF AKORA KHATTAK FACTORY/ THE SUPPLY CHAIN
FUNCTION
3.1 A complete overview of PTC Supply Chain Function
The following lines describes the complete period function of PTC supply chain in proceeding
order starting from the LEAF and the ending up with the finest quality cigarette sticks of the
cigarette Factory.
3.2 LEAF / LEAF Agronomy Department
The very first stage of the PTC Supply chain function is to collect the cured tobacco leaves from
the PTC Leaf depots in the field areas of NWFP and Punjab. Basically, there are two techniques
for curing the raw tobacco leaves.
a) F.C.V (Flue Cured Virginia)
b) S.C.V (Sun Cured Virginia)
The tobacco lots are cured in the PTC Leaf depots in the areas of ;
A. Plain Areas
a. Shergarh Region
b. Yar Husain Region
B. Development Areas

a. Mansehra Region
b. Buner Region
C. Punjab Region
a. Gujarat Region
b. Mianwali Region
Moreover; the following Leaf Varieties are procured for making of different cigarette brands:
 W.P
W.P also known as “White Patta” in local slang is a vastly cropped brand in the local
tobacco fields of KPK.
 D.A.C
Dark Aired Cured Virginia is another good class of tobacco cigarretized for good
brands
 BURLAY
Burlay is another local type of tobacco leaf which is grown extensively in the regions
of Swat KPK.
Before the tobacco crop is purchased by the PTC, The leaf Agronomy department at PTC AKF
checks different parameters of the samples taken from each and every lot of the particular crop.
The quality parameters including chemical and smoke analysis are verily and thus the crop is
declared variable for further processing.
Tobacco in the form of leaf lots of leaf after curing and sample testing packed and sent to both the
PTC Akora Khattak and Jhelum factories.
3.3 Green Leaf Threshing Department (GLT):
3.3.1 Introduction:
The main function of GLT is to separate the stem and lamina. Stem and lamina are
important in manufacturing of cigarette. Lamina is used for taste and stem is used to hold the
lamina in cigarette. Stem has no taste. For example if company uses 80%of lamina than 20% of
stem will be used.

The price of lamina in the market is higher than the price of the stem, for example if the price of
lamina is 120 than the price of stem will be 20.
Dust is collected during the process with the help of dust collectors and in sold in the market. This
dust is used in fertilizers; low standard or scrap is also separated and sold to those companies,
who manufacture low standard cigarettes. The workers working in GLT and the visitors use air
plugs and pollution resistance masks as a precaution. About 120 to 150 workers work in GLT.
After processing stem and lamina, these are packed separately in C-48 cases.
3.3.2 Objectives
The objectives of plant are:
I. Cleaning
II. Moisturizing
III. Threshing and Classification of Tobacco Leaf
A Tobacco Leaf Consists of two major components
I. Stem
II. Lamina
Both are processed separately. Both are passed through the same procedure and machinery. The
GLT plant machinery has been adjusted in two lines.
I. Line 1
II. Line 2
Capacity of each line is 8000kg/hr.
the tobacco bales that comes to GLT Plant have different grades, different grades means they have
different constituents of different proportions, to select a suitable grade for processing Pakistan
Tobacco Company has a blending department, the responsibility of blending department is to
select grades which means their quality standards which are ready defined, they choose suitable
grades for process in GLT Plant.
3.3.3 Functions of GLT:
 Both lamina and stem are separated from tobacco leaf in GLT.
 Following percentages get from tobacco leaf in GLT

Lamina = 70%
Stem = 20%
Dust = 3 to 4%
Moisture = 6 to 7%
 The price of lamina is high in market while the price of stem is low in the
same market. So the aim of GLT is to high the production of lamina.
 Another function of GLT is to maintain moisture because high moisture
creates the problem of fungus namely called Mould. While on the other
hand low moisture creates the problem of converting the leaf in the form
of powder.
 Another function of GLT is to remove the dust from tobacco leaf and sell
it in the market.
 Another function of GLT is to separate the scrap and it in the market.
3.3.4 GLT Process:
 Tobacco leaf is put on feeding platform according to the grades.
 Then it is shifted to the conveyer belt. On this stage dust is collected through
dust collectors.
 Searchers on picking area to remove impurities from leaf
 Then leaf is conditioned in conditioning cylinders.
 After conditioning leaf comes to process in threshers.
 After threshing the lamina and stem are classified with the help of air lift.
 After classification lamina is dried in lamina dryer and stem is dried in stem
dryer.
 After drying lamina and stem, both are shifted to press and here both are
packed separately.
 After packing these are shifted to PLS.

In GLT, the STEM and LAMINA are separated from the tobacco leaves and grading is done on
the basis of Nicotine Chemistry.
3.3.5 Operational Sequences of the GLT Plant:
GLT Plant receives tobacco leaves from leaf logistic department and first of all, cutting is
performed on it on the Tipping Tables which divide the leaves into pieces. Then, these cut
tobacco leaves go through the Conditioning Cylinders and are given moisture up to 15-16%.
The next phase comprises of shifting the tobacco to a cindery, where all the scrap is filtered
from the cut and conditioned tobacco leaves and it is once again then passed through
conditioning cylinder moisture of 17-18%.finally, the leaf is separated into STEM and
LAMINA in threshing. The next action is known as Re-Drying; which brings down the
moisture to 13-14%.
Now; the stem is packed into Gunny Bags while lamina is packed into Bales. The net weights
are 36kg and 110kg respectively.
Now; the tobacco is sent to the PLS (prized Leaf Stores) where the government taxation
liabilities are carried out before it is dispatched to Jhelum and Akora Khattak Factories
through the C-5 godown.
Following is the series of operations followed in order to separate the stem and lamina as Ill
as grade them make them ready to be stored before the tobacco is fed to the PMD for further
procurement.

3.4 GLT PLANT
BASIC PROCESSFLOW DIAGRAM
GREEN LEAF THTHRESHING
BALE OPENING
Feeding / Blend
CONDITIONING
Sand Reel / Roller Deck
Sorting / Searching
Re-Conditioning
THRESHING
ClassificationLAMINA
SIEVING
STEM
SIEVING

3.5 Primary Manufacturing Department (PMD)
As the name; Primary Manufacturing Department is the very first processing plant of tobacco
after the tobacco is dispatched from the GLT warehouses.
Here, the tobacco is conditioned, blended with casing, cut further with supply of moisture, dried,
and finally blended. The tobacco is then stored and finally fed to the Mark-9 machines from Cut
Tobacco Stores.
a) CONDITIONING:
The Conditioning process opens up the compressed tobacco leaves and adds up moisture to
threshing and is stored in the warehouses.
b) BLENDING:
On the basis of leaf varieties and Bill of Materials (BoM); every brand has its own blending
mixture including GF, CH, AY, JPGL, and CBPM etc.
c) CUTTING:
There are separate CUTTERS for stem and Lamina i.e. both Stem and Lamina are separately fed
to the conveyor line leading towards their respective cutters.
For LAMINA: 28 Cut/ Inch
Moisture: 22%
Leaf is open through conditioning
REDRYING
PACKING
DRYING
PACKING
Small particles / Stem Bits /
Dust
Storing / Distribution

For STEM:
160 Cut /Inch
Moisture: 38%
d) DRYING:
The 38% and 22% moisture of Stem and Lamina respectively are brought down to 15% in drying
action.
e) FINAL BLENDING:
Finally, the Stem and Lamina are blended together in a proportion of 1:4 respectively. i.e. 20%
Stem and 80% Lamina are mixed up together before this finally blended tobacco is sent to Cut
Tobacco Store.
f) CUT TOBACCO STORE:
The cut tobacco store or CTS is the final depots of the Primary Manufacturing Department from
where the ready cut tobacco is fed to the cigarette making machine through feeders. There are a
total of 14 Feeders in the CTS.
The blended cut tobacco is firstly stored in a wooden box for 24hrs and is then fed to the feeders
which further transfer it to Hopper Unit of the Mark-9 Machine installed in the Secondary
Manufacturing Department due to the action of pneumatic section.
3.6 SECONDARY MANUFACTURING DEPARTMENT:
SMD is the abbreviation of Secondary Manufacturing Department.
The elite manufacturing department of the PTC AKF; SMD is divided in to two functional groups
i.e. MAKING and PAKING. It is the final department of the AKF factory where cigarette are

manufactured from tobacco coming from CTS; they are packed, and thus finally delivered to PTC
warehouses.
Chapter # 4
Performance management has three parts: Defining the performance, measuring or appraising
performance, and finally feedback for the performance.
4.1 Purpose of Performance Management System in PTC
The Performance Management system of any company is to check the employee performance is
aligned with strategic goals. PTC claims to be value leaders in the cigarette industry and future
goal is to transform PTC to perform with speed flexibility and enterprising spirit of being an
innovative consumer focused company.
Furthermore, the employees who perform well are given opportunities to further develop
themselves. Normally the weak points are pin pointed so that the employees can improve
themselves.
4.2 Performance Management in PTC
At PTC, the process of performance management starts by defining performance. Performance
cannot be defined without a clear knowledge of the job that is to be performed by the employees.
At the managerial level, it is very difficult to define performance of the employees keeping in
view their quantitative aspects. Due to large variety of managerial jobs at PTC, the performance
of managers is analyzed on a qualitative measure.
At PTC, jobs are analyzed after two years or whenever there is a need of jobs analysis and
performance is defined. After that, this definition of performance is communicated to all the
employees and it is made sure that they work on these measures as they are also appraised on the
same measures.
Secondary Manufacturing Department
Making Packing

After performance has been defined, all the required behaviors for the managers are studied in
detail and some indicators are developed which are necessary to judge whether the employees is
performing good or bad. The indicators that are in favor of the required performance are called
“Positive Indicators” and the indicators against it are called “Contra Indicators.”
Given below are the behaviors with their required performance for managers PTC:
4.3 Managing work
Managing own work in the most efficient and effective way:
1. Plans and prioritizes own work, breaking down the task.
2. Uses available resources effectively (own time, systems, finances, people, information)
3. Prepares well and has everything at hand.
4. Has an organized approach to work.
At a supervisory level:
1. Delegates tasks effectively
2. Coaches subordinate(s) to achieve tasks
Analyzing and understanding
Understanding own role, responsibilities, tasks and solve problems:
1. Seeks clarification by probing, questioning and challenging
2. Anticipates and thinks around problems/ issues
3. Recognizes own limitations and other resources-knows when help is needed
4. Considers and evaluates all options-is able to weigh things up
5. Makes sound judgments and decisions.
6. Is able to be discreet and maintain confidentiality.
Processing work

Processes and produces work to meet all the deadlines.
1. Follows appropriate procedures in a methodical and systematic way.
2. Seeks appropriate approvals and authority
3. Maintains routine tasks and systems-filing, info systems, dairies, etc…
4. Monitors and reviews own tasks, makes appropriate checks
5. Is accurate and pays attention to detail.
Adaptability
Is flexible and responds positively to changes.
1. Accepts changes enthusiastically
2. Is willing to learn/change
3. Is open to new/other ideas
4. Is able to perform under pressure
Initiative
Uses initiative and seeks improvement
1. Is curious and inquisitive
2. Generates ideas
3. Develops and makes improvements
4. Learns from experience
5. Is able to work with minimum supervision/direction
Relationships
Has a good working relationship with others, both within and outside the organization.
1. Build informal working relationships

2. Co-operates with others, is a team player
3. Understands and is sensitive to the needs of other people
4. Persuades and negotiates-is able to gain commitment
5. Confronts problems and is assertive when necessary
Communication
Communicates confidently and clearly with others
1. Is clear and concise in communication
2. Effectively communicates own needs
3. Liaises and consults with others
4. Is able to communicate effectively in writing
Commitment
Displays commitment and self-motivation
1. Completes and finishes tasks, not giving up
2. Is conscientious and takes pride in their work
3. Works to high standards
4. Is reliable and consistent-not letting others down
4.5 Recommendations:
a. Along with report He (Feed end supervisor) should also give detailed
comments about LIP and the issues occurred in BAT Leaf system. He should
also take up the physical and system issue with a Logistic Green Leaf Issue
Supervisor. Also the issue to be timely (communicate) to a GLT team leader.
b. The LIP should be properly recorded and accounted for while doing the
reconciliation. At times it has been observed that LIP is not properly recorded
and traceability is lost.
c. The LIP is especially the problem when the process is running 24hrs.
 Impact of LIP on yield is that if the LIP rate is high than it decreases the overall yield.
 It is a continuous process and it occurs randomly. Due to Break Down or Time,
communication, neglisous (mistakes).

d. Tobacco handling to be made with intense care while truck unloading and
unloading at feeding platform from the pallets. Change in handling practices
will decrease the degradation loss.
e. I made an observation that tobacco scrape is dropped on the GLT plat forum
during handling before the bale is put on the scale for re-weighment loss
Calculation. To further verify this observation I conduct a trial following two
approaches.
1. Carefully Handling (During unloading)
2. Normal / Routine Handling (During unloading)
I formed a different of up to 1% only in case of very shatter grades. Re-weighment loss in case of
such grades is slightly high if I don’t handled the bales carefully due to spillage of scrape.

Chapter # 6
Drawbacks, Recommendations
6.1 DRAWBACKS:
There are social, environmental, operational and material draw backs in GLT. These are
given below:
SOCIAL DRAW BACKS
Unemployment:
Before the use of technology number of labor worked in GLT, which not
only reduced the unemployment situation in the region but also improved the standard of
living of the people. With the passage of time latest technology was installed in GLT.
Which increased the production but it has also caused unemployment.
ENVIRONMENTAL ROLE
Dust:

There are two types of dust organic and inorganic. Dust is a common feature of GLT. It
is estimated that about 3 to 6% dust is present in tobacco leaf which is removed in GLT.
Level of dust increases as weather changes from hot to cold. This dust is collected from
leaf in dust collection units. Dust may also harm the respiratory system of the workers
MATERIAL DRAW BACKS:
 Sometimes dust level is too much high and it creates problems while removing it
in dust collection units.
 Sometime moisture level is too much high.
 Sometimes amount of scrap in bales is large.
OPERATIONAL DRAW BACKS:
Shortage of electricity
GLT is totally dependent on WAPDA because electricity requirement is very high (almost 3-4
megawatt) and generators are used..
Lack of skilled labor
In GLT workers are hired on seasonal basis and it is very difficult to find skilled labor every time,
even if a skilled worker leaves the company it is very difficult to find a worker of same potential.
6.2 Recommendations:
 A proper conditioning of leaf must be done and verified before it is bring to
GLT plant for further processing.
 Advance sensors should be used to remove foreign matters, to produce finest
quality tobacco.
 The conveyors should be covered properly and small dust suction fans should
be used for conveyors separately.
 The components of machines should be maintained properly to minimize the
vibrations in the components and noise.

CHAPTER-7
7.1 CONCLUSION
As we know PTC is highly aware of how to motivate its employees in the best way. This can be
judged by enthusiasm and good spirit that people show in performing their jobs. There is a well-
devised system that PTC follows for the purpose of motivation. It includes both financial and
non-financial rewards along with the major motivators and Dissatisfiers. The company recognizes
the importance of making people drive towards their goals and the basic step towards this is made
through recognizing the value of importance that the company gives to its employees. PTC has a
set of financial rewards, medical, dental, vision and life insurance, retirement plan, educational
refund assistance, paid vacation days, family and work life balance benefits and profit sharing
plan, annual bonus opportunities, company cars etc. other ways in which employees are motivated
are:
1. Employee Consultation for:

1) Everyday Residence issues (remodeling, repairs, house-sitting, etc.).
2) Legal matters.
3) Financial issues.
4) Education and schooling.
5) Parent and child care.
6) Resources for seniors and eldercare issues.
7) Disability and accessibility.
8) Emergency dependent-care reimbursement.
9) Adoption assistance
Additional employee benefits may include:
1) Paid time off for dependent care.
2) Educational refund plan.
3) Scholarship program.
4) Medical, dental and vision benefits plans.
5) Group life insurance.
6) Student and parent loan program.
7) Fitness center.
8) Group discounts on: car, home, long-term care, pet insurance, home security, auto services
and purchasing, mortgage and home equity loans, and legal services.
9) Health services.
10) Lunch n’ Learn educational seminars.
11) Employee Assistance Program(EAP)
Other factors that lead to greater employee motivation are

1) Employee are made to work in such a dynamic way that they can derive satisfaction from
knowing that they have achieved something that was previously impossible or extremely
difficult to achieve.
2) Employees are safe in knowing that they will be rewarded for any exceptional work. This
reward is not only monetary. It is accompanied by the employee being given recognition
and greater empowerment.
3) Employees are given a very beautiful and healthy work environment. Special attention is
given to make physical environment most protective. This is why PTC offices are
considered to be the most well decorated and organized.
4) As we know PTC has a desire to promote the high achievers from with in the company.
Positions are given on merit and are transparent and fair in nature. There is no special
treatment. Therefore each employee know that he can aim for the top and actually get
there. This has proved to be a great source of motivation for employees of PTC.
Refrences
Web Sites
 Pakistan tobacco company. (2015). Ptccompk. Retrieved 20 October, 2015, from
http://www.ptc.com.pk/
 History of British American Tobacco.(on-line) Available(2008). http://www.bat.com
 Pakistan tobacco company. (2015). Ptccompk. Retrieved 20 October, 2015, from
http://www.ptc.com.pk/group/sites/PAK_7SHBXN.nsf/vwPagesWebLive/DO7SHC64?op
endocument
 Slidesharenet. (2015). Slidesharenet. Retrieved 20 October, 2015, from
http://www.slideshare.net/jawadiqbalkhan86/strategic-management-analysis-of-pakistan-
tobacco-company-2008
 Koontz,Harold.(1993). Management,Tenth Edition.Singapore:Mc-Graw Hill.
 Institute of Management Sciences, (2014). Internship Report on Pakistan Tobacco Company
limited Akora Khattakfactory, PeshawarUniversity

 PakistanTobaccoCompanyLimited. (2012). Annual Report. Islamabad.
Teachers
 Mr. Kamil Shahzad (HR Manager) at PTC
 Mr. Sarfaraz Khan (Financial Leaf Analyst manager) at PTC
 Mr. Mohsin Khan (my supervisor) at Comsats

final report on PTC

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