DEEPTHY REPORT R1 C.docx

8/10/2019 DEEPTHY REPORT R1 C.docx

1/89

AN ORGANIZATIONAL STUDY ON

MK TRADING CO. LLC, WADI AL KABIR,

OMAN

By

DEEPTHY RAMAKRISHNAN

Reg. No. 52553

Submitted to the

MAHATMA GANDHI UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mr. SANTHOSH S.

Associate Professor

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT

ALUVA, COCHIN, KERALA683106


2/89



CERTIFICATE

This is to certify that the report entitled, An Organizational study on, MK

Trading CO LLC, Wadi Al Kabir, Oman is a bonafide record submitted by

Ms. Deepthy Ramakrishnan, Reg. No: 52553, in partial fulfillment of the

requirements for the award of the Degree of Master of Business

Administration during the academic years 2013-2015.

Date: Dr. RADHA P. THEVANNOOR

DIRECTOR


3/89



CERTIFICATE

This is to certify that the report entitledAn Organizational study on, MK

Trading CO LLC, Wadi Al Kabir , Oman has been successfully completed

by Ms. Deepthy Ramakrishnan,Reg. No: 52553, in partial fulfillment of

the requirements for the award of degree of Master of Business

Administration, under my guidance during the academic years 2013-2015.

Date: Mr. SANTHOSH S

ASSOCIATE PROFESSOR


4/89

Company Certificate


5/89

DECLARATION

I, Deepthy Ramakrishnan hereby declare that the report entitled, An

Organizational study on MK Trading CO LLC, Wadi Al Kabir, Oman is my

original work.

I further declare that this report is based on the information collected by me

and has not previously been submitted to any other University or Academic

body.

Date: DEEPTHY RAMAKRISHNAN

Reg.No:52553


6/89

vi

ACKNOWLEDGEMENT

In preparing this Internship training report I have been fortunate enough to get support

from a number of people to whom I shall remain grateful.

First and foremost I thank god almightyfor giving me the ability to do this study and

make the venture a success

I express my sincere gratitude to my college, SCMS School of Technology And

Management(SSTM)for giving me such a fantastic exposure of the real corporate

scenario. I place my sincere thanks to Dr. Radha P. Thevannoor, Director, SSTM, for

providing me an opportunity to do an organizational study in the company, as part of the

curriculum.

I am deeply grateful to my faculty in charge and guide Mr. Santhosh S, who was always

a source of inspiration and helped me in the fulfillment of this project.

I also express my deep felt gratitude to the General Manager, Mr. Anwar Shafique,

the Divisional Manager, Mr. V.S. Boban andthe Project Coordinator, Mr. Solomon

and all other staffs in MK Trading CO LLC, for rendering timely relevant information,

valuable suggestions, assistance and encouragement which I found extremely useful for

the organizational study. Without which it could have been difficult for me to complete

my organizational study.

I express my profound gratitude to the management for having kindly permitted me to

undertake an organization study in their esteemed organization MK Trading CO LLC.

Last but not least, with deep feelings of indebtedness, I express my heartfelt thanks to myparents, friends and well-wishers who have directly and indirectly contributed towards

this organizational study.


7/89

vii

EXECUTIVE SUMMARY

The organizational study was conducted at MK Trading, Wadi Al Kabir, Oman. The

reason I choose this organization is because there is a rising demand for pre engineered

steel buildings in the present scenario. And MK Trading has been one of the well

established companys of Oman in the pre engineered steel building sector. They design,

fabricate and install steel buildings such as warehouses and multi storey buildings for

Lulu, Oman Oil etc. The main strength of the company is their skilled laborers, highly

qualified engineers with a good amount of technical skills, use of advanced technology

and also is to design cost effective buildings in the shortest duration. All buildings are

designed and manufactured to comply with American and British Design codes and latest

softwares.

The study was conducted from May1st2014 to June 1st2014. For the project I had the

access to meet the employees of various departments for the considerable time duration

which helped me to gain insight about the type of work they do and study the role and

functions of each department in the organization.

The report is an endeavor to cover the overall organization structure, department,

procedures and functions of the organization and also cover the industry profile and

company profile with their objectives that the company have. The report gives an inside

managerial functions, operative functions towards the product and the employee of the

organization.


8/89

TABLE OF CONTENTS

Chapter

No:

Title Page No:

Acknowledgement vi

Executive Summary vii

List of Figures ix

One Introduction

Introduction to the study 1

Scope of the study 2

Objectives of the study 2

Methodology 3

Limitations of the study 3

Two Analysis Of Business Environment

Analysis of remote external environment 6

Industry Profile 10

Industry Analysis 16Competitor Analysis 21

Three Organizational Analysis

Overview of the Organization 23

Organization Structure 32

Functional Analysis 34

Organizational Analysis 72

Four Observation And Conclusion

Observations and Suggestions 75

Conclusions 77

BIBLIOGRAPHY 78


9/89

ix

LIST OF TABLES AND FIGURES

Tables Page No

Table 1 Competitor Analysis 21

Table 2 Business Performance for last 5 years 28

Table 3 Strength of Manpower 29

Figures

Figure 1 Iron and Steel Production in 2013 12

Figure 2 Number of Registered Companies in Gulf

Steel Sector

15

Figure 3 Porters Five Force Analysis 16

Figure 4 Corporate Structure 32

Figure 5 Business and Departmental Structure 33

Figure 6 Marketing Department Structure 34

Figure 7 Marketing Design Data Sheet 36

Figure 8 Estimation Department Structure 39

Figure 9 Estimation Quotations 41

Figure 10 Design Department Structure 42

Figure 11 Design and Detailing Drawings 46

Figure 12 Production Department Structure 47


10/89

x

Figure 13 Pre Engineered Building Structure 48

Figure 14 Main Frames 49

Figure 15 Steel Sheet Fabrication 52

Figure 16 Sandwich Panel 53

Figure 17 Finance Department Structure 54

Figure 18 Purchase and Store Department Structure 57

Figure 19 Purchase, Receipt and Order Notes 60

Figure 20 Human Resource Department Structure 61

Figure 21 Quality Department Structure 66

Figure 22 Safety Department Structure 70


11/89

CHAPTER- 1

INTRODUCTION


12/89

2

Introduction

Introduction to the Study

An organization is a social arrangement which pursues collective goals, which

controls its own performance, and which has a boundary separating from its environment.

Organization is the association formed by a group of people who see that there are

benefits available from working towards achieving a common goal.

Organizational study is the examination of how individuals construct organizational

structures, processes, and practices and how these, in turn, shape social relations and

create institutions that ultimately influences people. Organizational studies comprise

different areas that deal with the different aspects of the organizations, many of the

approaches arefunctionalistbutcritical research also provide alternative frame for

understanding in the field.

It is the study of individual as well as group dynamics within an organization. Whenever

people interact in the organization many factors come into play. Organizational study

attempts to understand and model these factors. It is very essential to an MBA graduate

as it helps to associate theory with practice.

In an organization study each and every departments in an organization is being observed

and analyzed in detail. The study gives important to every departments of an organization

and projects their need towards the organization in achieving its objectives. The study

also gives the management trainees an opportunity for interacting with the people

working in the organization and to internalize their good qualities.

Organizational structure means the systematic and orderly arrangement of personnel in an

organization and delegation of authority in order to avoid raw conflict So after an

organization study the trainee will have a very clear picture of the functioning and the

method adopted in the organization and will help the trainee in knowing a lot about the

basic functioning of the organization.

Scope of Study

The organizational study was carried out to know the functioning of the various

departments as knowing it on a practical basis will have different perspective from the
http://en.wikipedia.org/wiki/Structural_functionalismhttp://en.wikipedia.org/wiki/Critical_theoryhttp://en.wikipedia.org/wiki/Critical_theoryhttp://en.wikipedia.org/wiki/Structural_functionalism


13/89

3

theoretical view. Also to know what all steps could be taken by the management for

future development.

The study also gave me the opportunity to study the efficiency of each employee in

completing the tasks assigned in the time allotted which ultimately affects effective

functioning of each department.

Objective of Study

To get an organizational exposure.

To study about the way in which the design, fabrication and erection of the steel

structures is performed.

The study is helpful in understanding the various problems faced by the

organization and what necessary actions could be taken by the management to

overcome these issues.

It helps in understanding the functioning of each department and the

interdependence among each department.

It also helps in analyzing what factors are responsible for attaining job

satisfaction of the employees.

The study also helps in analyzing the superior- subordinate relationship which is

very essential in attaining the goals of the organization.

An overall analysis of the performance can be done by using the SWOT

analysis

Methodology of Study

The study was carried out for a period of 4 weeks and in the meantime, required

information was gathered from the following sources.

1. Primary Data Sources

2. Secondary Data Source

Primary data sources. Primary data are the data that is collected for the first

time. Information was collected by conducting personnel interviews and discussions with

Managers and other officials, employees of the company and also by direct observation.


14/89

4

Secondary data sources. Secondary data was collected from books, periodicals,

literature published, Internet and from other various documents. Secondary data like

information regarding the company, its history and profile are collected from company

manuals, journals, brochures, website, and from other company records.

Limitations of the Study

Difficulty in meeting with all the Top level Officials.

Time allotted for the study is insufficient.

Busy schedule of the officers and employees prevented lengthy discussions.

Most of the data is collected by personnel interview and hence the information

may be wrong or incomplete.

Some company documents are confidential so it was not possible to include

them.

Some personal interviews were affected by some personal bias.


15/89


16/89


17/89

7

Omans average tariff rate is 3.2 percent. Licensing procedures for several

products deter imports. Foreign investors may not own land. The financial sector

continues to evolve, and commercial banks perform well. Most credit is offered at

market rates, but the government uses subsidized loans to promote investment.

The Muscat Securities Market is active and open to foreign investors.

Economic Factors : The Omani Government promotes and supports foreign

direct investment (FDI) as part of its efforts to expand the private sectorsrole in the

economy. FDIs are allowed in most sectors of the economy, however, the level of

foreign ownership is often limited and foreign investors are required to employ Omani

labour. FDI flows grew 41% in 2013 to OMR570 million ($1.48 billion), up from

OMR404 million ($1.05 billion) in the previous year.

The World Bank recently projected Oman's real GDP growth at 4.9 per cent in

2014 and five per cent in 2015.

Oman's gross domestic product (GDP), calculated at market prices, grew by 2.8

per cent to OMR 30,627.7 million in 2013, up from OMR29,797.7 million posted

the previous year. Oman is an important exporter of oil.

The contribution from non-petroleum activities is expected to go up this year at a

faster pace than petroleum sector. The growth in manufacturing and tourism

sectors will be the key drivers for the increased contribution.

Significant imports include transport equipment, electrical machinery, mechanical

appliances, and mineral products. One of the countrys largest trade partners is the

neighboring UAE, accounting for 11% of exports and 27% of imports. The steel

imports has thus increased from Al Jazeera Steel and JFE Steel, UAE and hence

beneficial to the industry for steel fabrication and erection.

The NCSI (National Centre for Statistics and Information) data also showed that

total non-petroleum activities grew by 7.6 per cent in 2013, reaching OMR17,

229.6 million, from OMR16, 008.1 million the previous year.


18/89

8

Social Factors : Omans health care system, which is largely based on public

sector providers, performs well providing almost universal access to services for Omanis.

There have been heavy investments in medical facilities and human resources since 1970

and the Government spending on healthcare has averaged more than 5 per cent of total

public expenditure over the past five years.

The Omani social insurance system was established by Royal Decree No. 72/1991

and has been in place since 1992, providing old age, death and disability pensions

to public and privatesector employees.

The female population is also given equal importance and hence no gender bias.

The number of Omanis employed in the private sector is rising as a result of the

Omanization process, aimed at replacing existing expatriate workers with local

labour but creating jobs for young Omanis will remain a big challenge in the

coming years.

Technological Factors : The Oman steel industry has reduced its CO2emissions

per ton of steel shipped by 30 percent since 1990.

Because of the industrys voluntary investments in R&D and resulting new

technologies, Oman steelmaking processes are highly optimized.

New processes are developedwhich will revolutionize steelmaking and take

advantage of alternative energy sources.

Most modern large-capacity blast furnaces represent extremely efficient chemical

reactors, capable of stable operation with an impressive range of reactant feed

materials. The injection of pulverized coal, natural gas, oil, and, in some cases,

recycled plastics to replace a portion of the metallurgical coke used as the primary

reluctant and source of chemical energy represents an important development in

the process.

The current expected lifetime of newly rebuilt furnaces is 20 years or greater.

Automatic welding machines have also replaced the manual welding with more

accuracy.


19/89

9

Environmental Factors : The Omani Government is committed to

environmental protection and has introduced a set of environmental laws and regulations,

such as the law on the Conservation of the Environment and Prevention of Pollution,

regulations for water, waste, chemicals, radioactivity, environment permits and others.

Oman is also committed to a wide range of international environmental treaties and

accords including the Basel Convention on the Control of Trans boundary Movements of

Hazardous Wastes.

Legal Factors: Collective bargaining is a relatively new concept in Oman, with

the royal decree making it possible to use collective bargaining to set wages and working

conditions. In cases when there is no trade union, collective bargaining can take place

between the employer and five representatives selected by the workers of the enterprise.

Only one trade union federation is allowed: the General Federation of Oman Trade

Unions (GFOTU). There must be at least 25 employees for a union to be formed,

regardless of the size of the company and the Ministry of Employment may refuse to

register a trade union.


20/89


21/89

11

The year2014 will be an important transition year for the global steel industry, because it

will mark the first time since 2011 that all major steel-consuming countries show positive

growth. The year will also mark the first time since 2006 that the growth rate in China

(about 3 percent) will be exceeded by the rate for the rest of the world (about 3.5

percent). This pattern is likely to persist for the indefinite future as China shifts to a

services and consumer-driven economic growth model, and growth in the other emerging

economies takes stronger hold.

These developments suggest that the industry has turned the corner and is headed into

recovery, and several current trends point to continued improvements in 2014. These

include:

Gradually improving capacity utilization, (78.1% in 2013 vs 76.2% in

2012), as excess capacity is slowly absorbed or closed. Here, there is

potential for dramatic improvement if China decides to accelerate the

closing of aging plants and facilities with especially pollution-intensive

operations.

Less disruption in steel trade as Chinese exports slow, in response to the

anti-dumping rulings that have come down in many countries throughout

the world. Indeed, the OECD report 2013 saw a record number of anti-

dumping and countervailing trade cases filed since 1999. Expected further softening of raw material pricesespecially iron oreas

new supply enters the market. This should provide some relief from the

squeeze created by higher material costs and the inability to pass those

costs on to customers.

In short, the industry is getting healthier, but its condition is still somewhat tenuousand

it will be important to keep a cautious eye on events as they unfold in the coming year.

The industry will need to maintain the discipline to keep eliminating excess capacity,

even as demand creeps up. And as always, companies will need to focus on operational

excellence and efficiency. Efforts in those areas will be valuable regardless of whether

the industrys growth stalls in the near term or continues for the long termand they will

be key to taking advantage of todays opportunities while preparing for an uncertain

future.


22/89

12

Figure 1Iron and Steel production in 2013

Source: Adapted from World Steel Association,www.worldsteel.org/statistics-archive 2013

Oman and Middle East Scenario. While some projects to increase steelmaking

capacity in the Middle East and North Africa have proceeded more slowly than originally

envisagedlarge and temporarily immobile inventories of billet and rebar plunging in

value in the wake of the financial crisis several years ago forced reconsideration of their

pace of progresssignificant advances have been made. Projects at Emirates Steel in

UAE, Sulb in Bahrain and Jindal Shadeed in Oman are examples of regional expansion.

The fundamental advantages of producing steel in the region are unchanged. An

abundance of reasonably priced power for such an energy-intensive industry is one of

them. A plentiful supply of natural gas as a reducing agent for making direct reduced iron

(DRI) is another.

In the Middle East, the most stunning progress will be made in steelmaking itself. It

expects crude steel output to double in the Middle East to 50 million tonnes by 2018 and

to almost 18 million tonnes in North Africa.
http://www.worldsteel.org/statistics-archivehttp://www.worldsteel.org/statistics-archivehttp://www.worldsteel.org/statistics-archivehttp://www.worldsteel.org/statistics-archive


23/89

13

Jindal is building a 2 million tpy EAF for completion in 2013 that will be fed from its

existing DRI plant in Oman. It then has plans to move further downstream with an initial

investment in a medium section mill, although this has yet to be confirmed.

One of the strongest regions for growth has been in the Gulf Co-operation Council (GCC)

market. High oil and gas prices have provided a budgetary boost to governments. In turn,

they appear to have undertaken a political commitment to invest in infrastructure and to

diversify into manufacturing in what remain quite centrally-driven economies. This is

hugely steel-intensive and will underpin medium-term steel demand growth for at least

the next 2-3 years, with Saudi Arabia the key example. This is not only important for

rebar and structural sections, but also for products such as wire rod. As an example, the

Omani governments private investment group Takamul is building a 60,000 tpy

galvanized wire plant in 2013 in conjunction with Singapores Global Steel Industries.

One of the biggest planned investments in the region is the Jindal Shadeed integrated

steel mill in Oman, which will eventually comprise a 7 million tpy iron ore pelletizing

plant, a Midrex DRI/HBI plant, a 2 million tpy melt shop and a long products rolling

mill. Indias Jindal Steel & Power (JSPL) acquired the Shadeed DRI project for $464

million in 2010, and the 1.5 million tpy Midrex DRI/HBI module started up at the end of

that year. Prior to the melt shop commissioning next year, Shadeed has been exporting

the HBI producedjust over 1 million tonnes were sold last year. JSPL is now engaged

in expanding the project at Sohar Industrial Port into a complete steelmaking complex,

and a 2.0 million tpy melt shop is scheduled to commission in the final quarter of 2013.

The Danieli-built melt shop will be fed directly by hot DRI, and comprise a 150-tonne

EAF, a 150-tonne ladle furnace, a 200-tonne twin-tank vacuum degasser, and a 2 million

tpy 6-strand billet/bloom caster. The associated infrastructure also includes an air

separation plant, a 4,800 cu metre/day desalination plant and extensive port facilities. The

semis produced will be initially targeted mainly at the Saudi market, as well as domestic

re-rollers supplying Omans infrastructureprojects. In time, however, it is planned that

much of the billet produced will be taken up by a 1 million tpy rolling mill for rebar and


24/89


25/89

15

Figure 2

The number of registered companies in Gulf steel sector

Source: Adapted from World Steel Association, www.worldsteel.org/statistics/gulf

sector

Steel consumption across the GCC region has increased underpinned by significant

investment in the construction sector. Saudi Arabia is the largest market in not only GCC

but the MENA region. Saudi Arabia's Hadeed is the world's 40th largest producer of steelwith a production of around five million tons. The GCC countries will continue to remain

a major consumer of steel products, which constitute 60 % of the estimated demand as

these countries continue to invest in infrastructure and the petrochemicals sector to

sustain economic growth.

Saudi and Qatar have regulatory mechanisms in place and hence the steel prices are

controlled in these two markets. Though there are firms that import at cheaper prices and

sell below the administered prices, these two markets have guidelines and are not subject

to wild price fluctuations. Oman uses UAE steel as the benchmark and moves in tandem

with the pricing from Emirates Steel. The Bahrain steel prices are administered by Qatar

Steel and Emirates Steel and it is not a very capricious market. There have been swings in

the UAE market but with Emirates Steel playing an active role, the major swings have

been dampened a bit.


26/89

16

Industry Analysis

Porters Five Force Analysis

Figure 3

Porters Five Force analysis

Source: Michael Porter, Competitive Strategy, 1980, Adapted fromwww.notesdesk.org/encyclopedia

Thr eat of New Entrants

The threat of new entrants is high, providing you have the engineering expertise,

sufficient startup capital and necessary tooling, anyone can start an engineering

workshop specialising in steel fabrication.

Through repetition, economies of scale can be gained. Fabricating steel beams for

a high rise building is an example of this.

There is not strong brand identity for steel fabricators. They rely on reputation

with the prime contractors and previous experience. Any new entrant would be

assumed to have the level of expertise necessary to provide steel fabrication for

these large projects.

There are no switching costs for the prime contractors, as each new project is put

out to tender.


27/89

17

Steel fabrication companies focus on producing for the local market. MK Trading

do not tender for overseas jobs due to shipping costs. They concentrate on areas in

Oman itself like Sohar, Ghala, and Rusayl etc.

Contracts are obtained through tender and are most likely to be won if tendered at

the lowest price.

Barriers to entry are therefore low in the steel fabrication business.

Threat Of Substi tute Products

The substitutes at this level of the industry are concrete, composite steel

concretes and fibre composite.

Composite "I" beams could replace the steel "I" beams in building structures

in high earthquake risk areas as a substitute because it is tough and flexible

Bonding methods used to fabricate composites are as good as welding with

current technology.

Bargaini ng Power Of Suppliers

The determinants of Supplier Power are quality, reliability, price and delivery.

Suppliers have little power as the steel fabricator can switch from one to

another depending on who is offering the best price and can meet logistical

requirements.

Supplier concentration tends to be in the main centres where the construction

is taking place. MK Trading have relationships with all the steel merchants in

the industry. There are a number of steel merchants in the Rusayl area. Each

individual merchant possesses little supplier power.

A steel fabricator could purchase a steel merchant business and therefore

maximise its buyer power. This would result in a decrease of existing supplier

power.

MK Trading cannot purchase directly from steel manufacturers like Al

Jazeera. Steel manufacturers will only supply to steel merchants who on sell


28/89

18

to steel fabricators. Al Jazeera has purchasing criteria that must be met; for

example a minimum purchase quantity of 200 tonnes.

The highest cost component of the job is the purchase of the raw material,

steel. If the purchase price of steel is dropping then it decreases as a

percentage of the total cost of the job. As a consequence of this the steel

supplier power will weaken.

From above arguments our conclusion is that the supplierspower is weak in

this industry.

Bargaini ng Power of Buyers

The buyers in this industry are the Prime Contractors, large construction

companies that have won tenders to construct the high rises. They respond to

invitations to tender and are selected by price.

The Prime Contractorshave the balance of power in this process of tendering and

making the decision on which steel fabricator is selected.

This industry is price sensitive, usually the lowest price wins the tendering

process. There is again no real brand identity in the steel fabrication business. The

Prime contractor will take into account the companys reputation and quality of

work in the past.

The quality and performance of the material the steel fabricators use is important

as all construction in Muscat is subject to quality control, this includes materials

used. The Prime Contractor wants the best quality, the best performance at the

lowest price.

All sub contractors delivering their part of the project on time and at the quality

level required provides an increase in margin for the Prime Contractor. The more

effectively the co-ordination of project changes are dealt will also have a positive

or negative effect.

The bargaining power of the buyer is the greatest among the 5 forces. All tenders

come from the Prime Contractors without them there would be no work for

construction steel fabricators.


29/89

19

Competit ion/ Rivalr y

The building differences at this level of the industry tend to be driven by the

design of the building. The architects and engineers have a major input into the

design and therefore the product required from the steel fabricator. They

determine the quality, the sections and the overall shape and profile of the

building. Brand identity is not important or relevant at the steel fabrication level

but is very relevant for architects.

There are no switching costs in the industry at this level of construction. Sub

contractors for building high rise constructions are obtained through a tendering

process; therefore switching costs are not really relevant.

The diversity of competitors in the industry ranges from small locally owned

companies to large multinationals. Some companies are only steel fabricators;

others offer a range of engineering services. MK Trading has a great competitive

advantage over its competitors as it has other engineering as well as fabrication

services.

A lot of the time they dont know what price their competitors are quoting.

Therefore they need to maintain their solid reputation for quality and reliability.

Industry Key Players. The following firms are some of the key players in the

industry

Ki rby Steel Bui lders :Kirby Building Systems is one of the largest pre-engineered steel

building (PEB) companies in the world and is a 100% subsidiary of Kuwait- based

multinational and multi-billion dollar business conglomerate - Alghanim Industries, one

of the largest privately-owned companies in the Middle East. Kirby pioneered the PEB

technology first in Middle East in 1976 and later in India in 1999. Its product list consists

of pre-engineered steel buildings (PEB) applicable for factories, warehouses, metro rails,

supermarkets, aircraft hangars, sports stadiums, auditoriums, etc. Other products include

structural steel, sandwich panels, storage solutions, Kirby Roof (KR), Kirby Wall (KW),

Kirby Deep Decking Panel and Kirby Standing Seam Panel (KSS-600).


30/89

20

Mammut Steel Bui lders:Founded in 1997 in Jebel Ali, Dubai and has grown to its

present position as a leading manufacturer of Pre-engineered Building in the Middle East.

Mammut has been on upward growth fuelled by investment in people and technology

which resulted in the construction of its factory in Hamriya Free Zone, Sharjah, and

UAE. Since 2001 Mammut has occupied a total covered area of 25000 square meter

factory in Hamriya which has the capacity to deliver a total of 7000 tons per month of

steel buildings and over 180000 square meters of polyurethane injected sandwich panels.

In April 2007 Emaar Industries and investments (EII) acquired a majority stake in

Mammut Building Systems FZC and has since been involved in assisting the company in

its expansion and growth plans.

Emaar Industries and investments (EII) is focused on maximizing its subsidiaries long

term value, exposing them to industrial best practices, providing a solid and flexible

capital base.

Zamil Steel Bui lders : Zamil Steel was founded in 1997 to design, manufacture and

supply top quality pre-engineered steel buildings for use as factory buildings,

warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, sports

halls, supermarkets, office buildings, car parking sheds, and virtually any one, two or

three storey building.


31/89

21

Competitor Analysis

Table 1Competitor Analysis

Company MK Trading North West GSS

Years OF Experience Established in 1983

and hence over 30

years experience

with a better brand

value.

Established in 1995

and has nearly 20

years experience.

Established in 2004

and hence only 10

years experience.

Certification 1SO 9001-2008

certified

ISO 9001-2000

certified

No such certification

Area of the

Manufacturing plant

The area is upto

12000 sq m

The area is upto 8000

sq m.

The area is upto 5000

sq m.

Market Share 30% of the total

market share

22% of the total

market share

13% of the total

market share

Tons produced per

month

Nearly 600 tons are

produced monthly

Nearly 500 tons are

produced monthly

Nearly 400 tons are

produced monthly

Products

manufactured

Steel frames, fascias,

crane and eave

gutters, rafters,

sandwich panels,

purlins, bracings,

roof and cladding,

profile sheets and

steel shuttering.

Steel frames, purlins,

fascias, rafters, roof

and cladding, profile

sheets, crane

structure frame.

Steel frames, purlins,

fascias, rafters, crane

and eave gutters,

profile sheets.


32/89

CHAPTER 3

ORGANIZATIONAL ANALYSIS


33/89


34/89

24

growth through diversification, acquisition and expansion and maintain a superior level of

integrity in interaction with business partners and associates. The employees serve the

customer with highest level of technical knowledge.

Values They Promote

Integrity: In MK the quality of having strong moral principles are integrated by

the core purpose of the company.

Commitment: They are dedicated to a policy and committed to achieve superior

quality and service in all our activities.

Teamwork: We strongly believe in combined effective action of a group in

pursuing common goal.

Perform:We constantly strive to achieve the highest possible standards in our day

to day work and in the quality of products and services we provide.

Products

Pre Engineered Steel Bu il ding :The PEB conceptor the Metal Building System

was first originated in the United States Of America after the World War II, as one of the

solutions to the demand of fast economic growth, and then transferred the concept to other

industrialised countries. It consists of a complete steel framed building system, wi th pre-

designed componenets to best suit the unique customer requirements. The final product is a

complete building shell with sub structural systems including mezzanine floors, crane

sysytems, canopies, fascias and interior partitions.

The Peb system offers multiple advantages to the end-user; the most notable are low initial

investment, fast construction time, low maintenance cost, large clear spans, infinite choice of

layouts, inherent resistance to earthquakes,ease of expansion and unique attractive appearance.

PEB System is since long a standard in commercial and industrial market segments such as

wearhouses, distribution centres and industrial facilities, are continuing to make greaterinroads into the low-rise sophisticated building market. Commercial office buildings are mixed

use facilities. Instituitional and governmental constructions are some of the areas where PEB

building systems are being used more and more. These buildings are increasingly recognized

as reliable, aesthetically pleasing, energy efficient and cost-effective building alternatives. The


35/89

25

sustainable green attributes of metal building systems with their recycled content and recycle-

ability makes them a natural choice for todays building owners and specifiers.

Purlins:Inarchitecture,structural engineering or building, a purlin (or

historically purline, purloyne, purling, perling) is any longitudinal, horizontal, structural member

in aroof except a type of framing with what is called a crown plate.

In steel building construction, secondary members such as purlins (roof) and girts (wall) are

frequentlycold-formed steel C, Z or U sections, (or mill rolled) C sections.

Cold formed members can be efficient on a weight basis relative to mill rolled sections for

secondary member applications. Additionally, Z sections can be nested for transportation

bundling and, on the building, lapped at the supports to develop a structurally efficient

continuous beam across multiple supports.

Rafters:A rafter is one of a series of slopedstructural members (beams) that

extend from the ridge or hip to thewall plate,down slope perimeter oreave,and that are

designed to support the roof deck and its associated loads. A pair of rafters is a couple.

Fascias:Fascia is an architectural term for a band running horizontally and

situated vertically under a roof edge, or which forms the outer surface of a cornice, visible to an

observer. Typically consisting of a sheet metal.

The horizontal "fascia board" which caps the end ofrafters outside a building may be used tohold therain gutter.The finished surface below the fascia and rafters is called thesoffit oreave.

A rain gutter is a narrow channel, or trough, forming the component of aroof system which

collects and diverts rainwater shed by the roof. It is also known as an eaves trough, eaves

channel guttering or simply as a gutter.

The eave is the bottom edge of a roof. The eaves normally project beyond the side of the

building forming an overhang to throw water clear of the walls and may be highly decorated as

part of an architectural style.

Columns:Column or pillar inarchitecture andstructural engineering is a

structural element that transmits, throughcompression,the weight of the structure above to other

structural elements below. In other words, a column is a compression member. The term column

applies especially to a large round support with a capital and base.
http://en.wikipedia.org/wiki/Architecturehttp://en.wikipedia.org/wiki/Structural_engineeringhttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Cold-formed_steelhttp://en.wikipedia.org/wiki/Structural_memberhttp://en.wikipedia.org/wiki/Wall_platehttp://en.wikipedia.org/wiki/Eavehttp://en.wikipedia.org/wiki/Rafterhttp://en.wikipedia.org/wiki/Rain_gutterhttp://en.wikipedia.org/wiki/Soffithttp://en.wikipedia.org/wiki/Eavehttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Architecturehttp://en.wikipedia.org/wiki/Structural_engineeringhttp://en.wikipedia.org/wiki/Compression_(physical)http://en.wikipedia.org/wiki/Compression_(physical)http://en.wikipedia.org/wiki/Structural_engineeringhttp://en.wikipedia.org/wiki/Architecturehttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Eavehttp://en.wikipedia.org/wiki/Soffithttp://en.wikipedia.org/wiki/Rain_gutterhttp://en.wikipedia.org/wiki/Rafterhttp://en.wikipedia.org/wiki/Eavehttp://en.wikipedia.org/wiki/Wall_platehttp://en.wikipedia.org/wiki/Structural_memberhttp://en.wikipedia.org/wiki/Cold-formed_steelhttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Structural_engineeringhttp://en.wikipedia.org/wiki/Architecture


36/89

26

Beams:A beam is astructural element that is capable of

withstandingloadprimarily by resistingbending.The bending force induced into the material of

the beam as a result of the external loads, own weight,span and external reactions to these loads

is called abending moment.

Braced F rames:A Braced Frame is a structural system which is designed

primarily to resistwind andearthquake forces. Members in a braced frame are designed to

workingtension andcompression,similar to atruss.Braced frames are almost always composed

of steel members.

Accessories

Roller shutters:A roller shutter, roller door or sectional overhead door is a type

ofdoor orwindow shutter consisting of many horizontal slats (or sometimes bars or web

systems) hinged together. The door is raised to open it and lowered to close it. On large doors,

the action may be motorized. It provides protection against wind and rain.

Ridge Ventil ators: A ridge vent is a type of vent installed at the peak of a

slopedroof which allows warm, humid air to escape a building's attic.

Louvers:A louver or Louvre is awindow blind orshutter with horizontalslats that

are angled to admit light and air, but to keep out rain, direct sunshine, and noise. The angle of

the slats may be adjustable, usually in blinds and windows, or fixed.

Sandwich panels:

Aluminium composite panel (ACP) also aluminium composite material, (ACM) is a type

of flat panel that consists of two thinaluminium sheets bonded to a non-aluminium core.The

core is commonly low density polyethylene, or a mix of low density polyethylene and mineral

material to exhibit fire retardant properties.

Aluminium can be painted in any kind of colour, and ACPs are produced in a wide range of

metallic and non-metallic colours as well as patterns that imitate other materials, suchaswood ormarble.
http://en.wikipedia.org/wiki/Structural_elementhttp://en.wikipedia.org/wiki/Structural_loadhttp://en.wikipedia.org/wiki/Bendinghttp://en.wikipedia.org/wiki/Span_(architecture)http://en.wikipedia.org/wiki/Bending_momenthttp://en.wikipedia.org/wiki/Bending_momenthttp://en.wikipedia.org/wiki/Windhttp://en.wikipedia.org/wiki/Earthquakehttp://en.wikipedia.org/wiki/Tension_(physics)http://en.wikipedia.org/wiki/Compression_(physical)http://en.wikipedia.org/wiki/Trusshttp://en.wikipedia.org/wiki/Doorhttp://en.wikipedia.org/wiki/Window_shutterhttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Window_blindhttp://en.wikipedia.org/wiki/Window_shutterhttp://en.wiktionary.org/wiki/slathttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Woodhttp://en.wikipedia.org/wiki/Marblehttp://en.wikipedia.org/wiki/Marblehttp://en.wikipedia.org/wiki/Marblehttp://en.wikipedia.org/wiki/Woodhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wiktionary.org/wiki/slathttp://en.wikipedia.org/wiki/Window_shutterhttp://en.wikipedia.org/wiki/Window_blindhttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Window_shutterhttp://en.wikipedia.org/wiki/Doorhttp://en.wikipedia.org/wiki/Trusshttp://en.wikipedia.org/wiki/Compression_(physical)http://en.wikipedia.org/wiki/Tension_(physics)http://en.wikipedia.org/wiki/Earthquakehttp://en.wikipedia.org/wiki/Windhttp://en.wikipedia.org/wiki/Bending_momenthttp://en.wikipedia.org/wiki/Span_(architecture)http://en.wikipedia.org/wiki/Bendinghttp://en.wikipedia.org/wiki/Structural_loadhttp://en.wikipedia.org/wiki/Structural_element


37/89


38/89

28

Erection and I nstallation:

They have fully dedicated erection team with all required tools and tackles for PEB &

other structural steel erections and follow proper safety at site. Our erection methodology

and practices are well appreciated by the clients. Once the anchor bolt cast in place and

cured, the major components of PEB are erected as primary and secondary structural

systems. After this the roof and wall sheeting will be installed along with the appropriate

accessories. They monitor and supervise the entire project until completion ensuring

timely delivery and excellent product quality.

Business Performance

The financial performance of the company for the last 5 years is given in the table below.

Table 2Performance Business

YEAR APPROX

TURNOVER(OMANI

RIAL IN MILLION)

APPROX PROFIT(%

VALUE OF

TURNOVER)( IN

MILION)

2008-2009 15 10% of 15= 1.5

2009-2010 12 7.5% of 12= 0.9

2010-2011 10.5 6.25% of 10.5= 0.66

2011-2012 11.25 7% of 11.25=0.78


39/89


40/89

30

Client And Consultant List

Client List :

Petroleum Development Oman

Saud Bahwan Group

Ministry of Defense

Oman Oil

Dhofar Municipality

LULU Hypermarket

Khimji Ramdas

Al Shadeed Steel

Shell Oman

Diwan of Royal Court

Oman Dental College

Modern Poultry Farm

Consul tant L ist:

Al Hatmy Engineering Consultancy LLC

Jurong Engineering

Simon Engineering

Gulf Engineering Consultancy

Dawood Consultancy

Triad Oman Consultants International

Emaar Engineering Consultancy

Muscat Municipality

Scott Wilson Ltd

List Of Projects


41/89

31

Some of the proj ects completed :

Sheraton Extension

Toyota warehouse at Amrat

Oman Dental College

Omani Marble- Rusayl

Oman cable industry

Galfar headquarters at Ghala

Hydrauchloric Acid Plant at Sohar

Chips factory at Rusayl

Poultry farm at Barka

Production unit for Switz Group

Some of the ongoing projects :

Lulu Bowsher

Asain paints at Sohar

Lulu at Barka and Ibra

Youth complex at Salalah

Khimji extension

Recognition And Certification :

MK Trading is one of the first companies in Oman to receive ISO 90012008

quality certificate for our management system from TUV Nord Cert GMBH.


42/89

32

Organization Structure

Corporate Structure

DIRECTORS

GENERAL MANAGER

DIVISIONAL MANAGERADMIN AND FINANCE

MANAGER

ESTIMATION

MANAGER

MARKETING

MANAGER

MANAGERPROJECT

AND

PLANNING

FINANCE

DEPARTMENT

HR

DEPARTMENT

PURCHASE

DEPARTMENT

DETAILING

MANAGER

DIRECTORS


43/89

33

Figure 4Corporate Structure

Business And Departmental Structure

DIRECTORS

QUALITYCONTROL

DEPARTMENT

DIVISIONAL MANAGER

MARKETING MANAGER

ESTIMATION ENGINEER

MANAGER

PLANNING ENGINEER

PROJECTSENGINEER

PRODUCTION ENGINEER

DETAILINGENGINEER

DESIGN DEPT

DRAUGHTSMAN

HR DEPT

ACCOUNTS HEAD

ACCOUNTSDEPT

UALITY CONTROL

PURCHASE DEPT

STORES

GENERAL MANAGER

ADMIN AND FINANCEMANAGER

DIRECTOR

PROJECT COORDINATOR


44/89

34

Figure 5Departmental Structure

Functional Analysis

Marketing Department

FABRICATION SUPERVISOR ERECTION SUPERVISOR

Divisional Manager

Marketing Manager

Sales engineer Sales engineer

General Manager


45/89


46/89

36

Value engineering is to done to get better offers.

Under value engineering, then after submitting the offer, the job might have to be re-

submitted according to the planned changes made and in order to get the job.

Make sure that the payment terms are acceptable to the company as in if there is

enough cash flow and that there is good financial strength.


47/89

37

Figure 7Marketing design data sheet

Source: Copy of the sample design sheet obtained from the Marketing Department

Data sheet detail s:

In order to acquire the quotation, the client will have given a particular design to the


48/89

38

consultant who then will give it to many sub contractors and will select the

optimized one.

Based on the design, a data sheet that is to be submitted by the Marketing and Sales

department to the estimation department.

All the details mentioned in the data sheet should be accurate.

Procedure:

The estimation and the design team will work on it and then submit the design for

acquiring the quotation.

The sales, estimation and design officers will then go for meetings, negotiations are

done with client and consultant

The sales person has to be well informed about the project and he should be in such

a position to convince the client to quote the job.

Main competitors:

These are some of the main competitors in Oman.

North-West steel company

Bilad Oman group

GSS Steel

Some of the other main competitors are from Dubai :

Zamil Steel

Kirby Steel

Mamut Steel

Mabani Steel

Pricing:

MK Trading offers quotations at low price compared to others. Itsusually acceptedbecause of the good reputation and goodwill.

Technology:

The technology used is Computer Numerical Control. And automatic welding machines are

mostly used. With advancement in technology they are planning to generate 1000 tonnes

per month from 600 tonnes.


49/89


50/89

40

Figure 8Estimation department

Estimating the cost of the project is the basic step in ensuring the successful implementation

of the proposed plans of action for any project. Estimating engineer helps in estimating the

cost of the project after studying and gathering all the relevant details about the project. The

estimation department of MK Trading consists of a senior estimation manager and two

JUNIORESTIMATION

ENGINEER

JUNIORESTIMATION

ENGINEER


51/89

41

unior engineers working under him.

Functions of Estimation Department:

Their main task is to acquire the enquiries from the sales engineers and to quote for

the same.

They identify all the requirements and make sure that all the elements are considered

and verified.

He confers with the engineers, contractors, clients, etc., on the adjustments or

changes that need to be made in the cost estimates and helps in determining the

feasibility of the project.

He determines the scope of work and contents of the project estimate by preparing a

list of bid quantities and items.

He is responsible for calculating the statistical data, prices of various materials, labor

cost, equipment, etc before submitting it to the contractor and client by discussing

with the design department.

Identify and correctly enter item numbers into the Quoting System, to include all

supporting documents.

Confer with Purchasing and Inventory to ensure needed materials are in stock or

available for purchase.

He should have direct contact with the client and consultant and should also be well

prepared for negotiations in order to acquire the quote for job.

The estimated cost and calculations will be carried out only in the estimated team

and wont be shared with any other department.

Any mistake in the estimation can lead to loss to the company.


52/89

42

Figure 9

Estimation Quotations

Source: the Copy of the Quotations send to the Main Contractor, Al Jood Trading.


53/89

43

Design Department

Figure 10

Design Department

Source: Primary Data

SENIOR DESIGNENGINEER

DESIGN ENGINEER

JUNIOR DESIGN

ENGINEER

JUNIOR DESIGNENGINEER

DRAUGHTSMANDETAILINGENGINEER

DIVISIONAL MANAGER


54/89

44

Design department is split into three divisions starting with design then onto the

draughtsman and then where the final shop drawings are made which is the detailing team.

1. Design team:

Once after getting the enquiries then the design team will make the design according

to the specifications given.

If the contract is obtained then the design has to be again modified with any

respective changes to be made and much more accurate and precise details are given.

There are certain set of standards used based on the code of practice :

American

British

The client will give concept drawings with different views & elevations giving a

overall view of his requirement.

The details of the column length, the rafter length, the wind pressure, and many such

items are given in detail.

The design if done manually will take a long time and hence are done using

softwares. The 2 softwares used here are:

MBS (Metal Building Software)

STAAD Pro ( Structural Analysis & Design)MBS Software:

It is custom made software for PEBs like warehouses and Industry

buildings.

It is time saving software as it does the design, drawings and details

in one go.

With this, the designer along with the design can generate the

drawings without the help of the draftsman.

STAAD Pro Software:

It can be designed for buildings of any complexity, not necessarily

PEBs.

The only limitation here is that the drawings have to be made for


55/89


56/89

46

Erection Drawings:

Erection drawings are used to guide the steel erector on the

construction site ("in the field") as to where and how to erect the

fabricated steel members.

These drawings usually show dimensioned plans to locate the steel

members, and they often also show details with specific information

and requirements, including all work that must be done in the field

(such asbolting,welding or installing Anchor Bolts)

Since the erection drawings are intended for use in the field, they

contain very little specific information about the fabrication of any

individual steel member;
http://en.wikipedia.org/wiki/Bolted_jointhttp://en.wikipedia.org/wiki/Weldinghttp://en.wikipedia.org/wiki/Weldinghttp://en.wikipedia.org/wiki/Bolted_joint


57/89

47

Figure 11

Design and Detailing drawing

Source : The copy of the drawings, provided to the client: Asian Paints Middle East,

the consultant: Semac & Partners and main contractor: Al Rawahi obtained from

Design Department


58/89

48

Production Department

Figure 12Production Department


GENERAL MANAGER

DIVISIONAL MANAGER

MANAGER PROJECTS

PROJECT COORDINATOR

PROJECT ENGINEER PLANNING ENGINEER

PRODUCTION ENGINEER

FABRICATION SUPERVISOR ERECTION SUPERVISO


59/89

49

Manufacturing

Figure 13

Pre Engineered Building Structure

Source: Bansal Metallics, Adapted from

www.machineryforbuildings.com/preengineered buildings

Primary members consist ofcolumns, rafters, beams etc. These are fabricated from high.

Strength Grade 50 or Grade 43 GI Plates. Plates are cut to size and shape. Built up sections

are made from these plates in Automatic Beam welding Line by submerged Arc Welding.

The most common primary framing systems are shown below. All are shown symmetrical

about the ridge line. Framing systems unsymmetrical about the ridge line and Multispan

Framing Systems with unequal width modules are possible but may require more

engineering time and possibly longer deliveries. Practically any frame geometry is possible.
http://www.machineryforbuildings.com/preengineeredhttp://www.metalandtech.com/products.htmlhttp://www.metalandtech.com/products.htmlhttp://www.machineryforbuildings.com/preengineered


60/89

50

Figure 14

Main Frames

Source: Bansal Metallics, Adapted from

www.machineryforbuildings.com/preengineered buildings

Steel Sheet fabr icati on:Sheet metal is metal formed into thin and flat pieces. It is

one of the fundamental forms used in metalworking, and can be cut and bent into a variety

of different shapes. Sheet metal is available in a variety of thickness and its thickness is

called its gauge. The gauge of sheet metal ranges from 30 gauge to about 8 gauge. The

higher the gauge, the thinner the sheet metal. The Steel material is available in the form of

cold rolled steel.

Sheet metal can be cut, punched, bent, welded and rolled to form all different structures.

They can be made into sheet metal enclosures, card cages, housings, front panels, chassis,
http://www.machineryforbuildings.com/preengineeredhttp://www.machineryforbuildings.com/preengineered


61/89


62/89

52

produced accordingly.

4. Assembling

The different units or plates generated will have to be joined according to the requirement.

5. Welding :

This is often done bymelting the work pieces and adding a filler material to form a pool of

molten material (theweld pool)that cools to become a strong joint, withpressure sometimes

used in conjunction withheat,or by itself, to produce the weld.

It is done here mostly manually and in some cases using shielded arc welding.

6. Sand blasting

Sandblasting is a general term used to describe the act of propelling very fine bits of

material at high-velocity to clean or etch a surface. Sand used to be the most commonly used

material, but since the lung disease silicosis is caused by extended inhalation of the dust

created by sand, other materials are now used in its place. Here steel is been used to spray.

7. Painting

The final step is painting where according to the details of the drawings it is painted.
http://en.wikipedia.org/wiki/Meltinghttp://en.wikipedia.org/wiki/Weld_poolhttp://en.wikipedia.org/wiki/Pressurehttp://en.wikipedia.org/wiki/Heathttp://en.wikipedia.org/wiki/Heathttp://en.wikipedia.org/wiki/Pressurehttp://en.wikipedia.org/wiki/Weld_poolhttp://en.wikipedia.org/wiki/Melting


63/89

53

Figure 15

Steel Sheet Fabrication

Source: The pictures collected during the study at Rusayl Workshop.


64/89

54

Sandwich Panel: A sandwich-structured composite is a special class ofcomposite

materials that is fabricated by attaching two thin but stiff skins to a lightweight but thick

core. The core material is normally low strength material, but its higher thickness provides

the sandwich composite with highbendingstiffness with overall lowdensity.

The chemical used for the thick core is Polyurethane with a density of 35-38 kg/m3.

The sandwich panels here can be of 4 types:

Galvanized iron (GI) on both top and bottom

Aluminum sheet on the top and bottom.

Top with profile and bottom with plane sheet

Flat panel on both top and bottom

The thickness of the sandwich panel can be 50mm or 100mm.

Figure 16Sandwich Panel Production Pictures

Source: The pictures collected during the study at Mabellla Workshop
http://en.wikipedia.org/wiki/Composite_materialhttp://en.wikipedia.org/wiki/Composite_materialhttp://en.wikipedia.org/wiki/Bendinghttp://en.wikipedia.org/wiki/Stiffnesshttp://en.wikipedia.org/wiki/Densityhttp://en.wikipedia.org/wiki/Densityhttp://en.wikipedia.org/wiki/Stiffnesshttp://en.wikipedia.org/wiki/Bendinghttp://en.wikipedia.org/wiki/Composite_materialhttp://en.wikipedia.org/wiki/Composite_material


65/89

55

Finance Department

Figure 17

Finance Department


FINANCE MANAGER

CHIEF ACCOUNTANT

SENIOR ACCOUNTANT

ACCOUNT ASSISTANT ACCOUNT ASSISTANT


66/89

56

The activities expected from a finance department cover a wide range from basic bookkeeping to

providing information to assisting managers in making strategic decisions. What to expect from

the finance department will depend largely on factors such as how much involvement the

owner/manager has in the organization.

The major function of the finance department is to have an overall control of both inflow and

outflow of the financial resources.

Sources of funds:

The main sources of funds are:

I nternal sources of funds : The main sources of internal funds are the money

generated from the sales. Reserves are the sources of funds other than the income from sales.

Current losses are adjusted from these reserves.

External sour ces of funds: The sources of external funds are banks like Bank

Muscat, National Bank of Oman.

Functions of Finance Department

Prepare and present fi nal accounts:

The Finance team are responsible at the end of each financial year, to record how

well the organisation has performed financially.

In order to show how well the organisation has performed the Trading, Profit and

Loss Account and the Balance Sheet are prepared.

The above documents will then be presented to Senior Management who will be

informed of how much money the organisation has made or lost over the year.

This helps management in making decisions for the future. For example, if they

need to cut costs they may decide to make some staff redundant. Or,

alternatively, if they have made large profits, they may decide to open up a new

store so that they can grow.

Paying Bil ls on behal f of the Organisation/Departments:

The Finance team are responsible for paying for all purchases made within the

organisation. The design department will submit a requisition form to the


67/89

57

Purchases department for new resources. This information is then passed on to the

Finance team who actually pay for the goods ordered.

When the supplier sends an invoice, the Finance team will check that it is correct.

For example, check the quantity ordered; the price of each item etc.

It is essential that all invoices received are paid promptly to the supplier. This

will help establish the supplier relationship which could lead to discounts and

trade credit being offered in the future.

The most common method of payment the Finance team use is a cheque.

The Finance team will ensure that an accurate record of all cheques paid is kept to

make sure that cash is being transferred appropriately.

The person who signs the cheque will be an authorised employee of the Finance

team. There will be a limited amount of employees who are allowed to signcheques to make sure that nobody is misusing the organisations cash.

Paying Employees Wages:

It is very important that the Finance Department works closely with the Human

Resources Department in ensuring that all employees are paid the correct amount

and on time.

The Human Resources Department informs the Finance Department exactly howmuch each individual employee should receive at the end of each month/week.

Once the Finance team have processed this information in their records, the wages

are automatically paid into each individuals bank account.


68/89


69/89

59

Purchase Procedur es:

Purchase Requisition: It is a document through which the user department requests

the purchase manager to arrange for purchasing the material required. Each department

head prepares the purchase requisition and send it to the purchase manger on receipt of

purchase requisition report. The purchase manager will make necessary steps

for purchasing material that has been mentioned in the purchase requisition.

Plans are made by the purchase department by discussing with the procurement team

about what to purchase, how to purchase, when to purchase and so on.

Purchase manager invite quotations for the supply of materials from different suppliers.

Usually minimum 3 supplier enquiries are taken and the best from them is chosen.

Normally the orders are made in bulk quantity. The approval is obtained from the Financial Manager The purchase manager then discuss

with the supplier about rate, quality, requirements, quantity, delivery time and

packaging. Then both parties agree that they will enter in to purchase contract according

to supply and payment.

Making of purchasing order: Six copies of the purchase order will be prepared and it is

signed by the Finance Manager.

The company will send two copies of local purchase order to the supplier, one copy to

the purchase department, one copy to the finance department, one copy to the stores

department and the last one will keep it in their running file. The supplier will send back

one copy, an invoice as a token of confirmation. A purchase order will contain the details

such as, the name of the material, quantity to be supplied, agreed rate, quality

specification, time in which it is to be supplied (delivery date), place of delivery, rate

whether inclusive of tax, packing of material, mode of transportation, option if the

material is not supplied on due date and mode of payment.

Generally, 90 per cent of the payment will be made in the next day. In case the delivery is

not made on due date, this 10 per cent will be adjusted.

Receiving and inspection of material: When the material arrives, the drivers have to

report at the gate. The guards will inform it to the purchase department who will


70/89

60

give permission to enter into the company. It is mostly taken directly to the sites where

the construction takes place.

The Goods Received Note (GRN) will be prepared and send it to the purchase

department. All the goods are checked and in case of any damage then the purchase

department will inform the supplier after getting the approval from the Financial

Manager.

Mater ial s used for the manufacture of main f rames and sandwich panels:

The most important material used is galvanized steel and mild steel which is mostly imported

from Dubai and in some cases from India, Korea etc.

Maintenance of stock:

Specifications of the materials required are communicated to the supplier who supplies the

materials as per specifications. The load of materials entering the factory will be registered at the

factory gate. The load is then sending to the store where the store officials check the materials for

visual defects. Maximum storage capacity of the store is 2000 tons. The company maintains a

minimum stock level of 15 days a minimum of one and a half months.


71/89

61

Figure 19

Purchase Request, Receipt Note and Order

Source: The copy of the Purchase Request, Order and Goods Receipt provided to

Khimji Permoglaze (Oman) obtained from Purchase Department


72/89

62

Human Resource Department

Figure 20

Human Resource Department


ADMINISTRATION

HEAD

SENIOR HR EXECUTIVE

ASSISTANT

OFFICER

ASSISTANT

OFFICER

ASSISTANT

OFFICER

PERSONNEL MANAGER


73/89

63

Human resource is of paramount importance for the success of any organization. It is a source of

strength, aid and, it is the most important asset of an organization. Human resources are the

wealth of an organization which can help it in achieving its goals. Human resource management

is the planning, organizing, directing and controlling of procurement ,development,

compensation, integration, maintenance and reproduction of human resources to the end of the

individual, organizational and societal objectives are accomplished. They spend about 10000

Oman Rial approx. per year for the welfare activities.Human resource management is the

qualitative improvement of human beings who are considered the most valuable assets of an

organization. It is the strategic approach to the acquisition, motivation, development and

management of the organizations humanresources.

The primary objective of HRM is to ensure the satisfactory accomplishment of the objectives ofan organization and of its employees and management. It helps workers in accomplishing

individual and organizational goals. The HR manager organizes the HR department to carry out

the functions entrusted to him. In MK Trading personnel department functions are controlled by

Personnel Manager.

Job Environment:Reporting to factory executive/head of personnel functions; however

keep rapport and liaison with section in chargers in all functional areas.

Current informal ways of working; practice of working on oral instructions and getting

such actions ratified in due course.

Want of documentation by way of proper system and procedures.

Habitual cases of absenteeism and in discipline.

The slow pace of work among the staff, as a part of past work practice

.

HR Poli cy:The basic principles of MK Trading human resource policies include:

Recruitment based solely on merit by following well-defined and systematic selection

procedures without discrimination.

Sustain motivated and quality work force through appropriate and fair performance

evaluation, reward and recognition systems.


74/89

64

Identify training needs within the organization and design and implement those need

based training programmes resulting in continuous up gradation of knowledge, skill and

attitudes of the employees.

Maintain a quality human resource management system plan, design, and train, equip

and motivate the department staff to meet this standard of expectation.

Recruitment:MK Tradings greatest asset is its employees. It is committed to attracting,

retaining, and developing the highest quality and most dedicated work force possible in

today's market. While recruiting new employees MK Trading takes adequate care to identify the

right candidates guard focus on recruiting candidates who display a high degree of learn ability,

i.e. candidates who are open to learn new things and supply the same in new situations we

also place significant importance on professional competence, academic excellence,

analytical ability, term work, leadership potential, communication and innovative skills, along

with a practical and structured to problem solving.

MK Trading follows Internal Recruitment technique as well as External Recruitment system.

External Recruitment is done by giving advertisement in newspapers, thorough recruitment

agencies.

Executives- Assistant Managers and above:

Recruitment is usually done through reference or consultants. CV is collected from the

candidates. It is then scrutinized and the list of the candidates is prepared based on theCV. Interview is conducted under the observation of the HR and the respective

departmental HOD.

Staffsupervisors, line employees:

Recruitment is done through reference or consultants.

Machine operators:

They are usually recruited from India and Bangladesh. In need of any workers like

welders etc. then the information seeking them would be sent to the authorized agents in

these places. They would then advertise in local newspapers and would conduct

interview. Based on the experience and skill level the process of recruitment takes place.

In case of any training required then the company has a tie-up with some of the training

institutes like National Training Institute LLC where 3 months training is given in

fabrication, welding etc.


75/89


76/89


77/89


78/89

68

MK Trading Company LLC provides engineering services including design, fabrication, supply

and erection of steel structure.

The aim is to provide service to the customer comparable with the highest quality in their field

confirming to specified requirements and cost effective product in the shortest time by the

adoption of the Right First Time principle.

Functions of this department is to ensure that the quality objectives of the firm are relevant to

meet the requirements of the product quality and are periodically measured and compared

against product quality requirement. A major purpose of this department is to ensure that the

quality policy of the firm is conformity with the objectives of this department.

Key Elements of the Qual ity poli cy are:

To exceed the customer expectations by ensuring appropriate two-way communication toenable them to fully understand and fulfill their requirements.

Setting measurable targets to monitor the achievement towards pre-determined

objectives.

To identify the performance against these targets to identify progress.

To provide appropriate resources and a suitable working environment

To monitor, audit and review the systems to identify areas to continually performance.

The company recognizes that their staff is the single most important resource in the achievement

of this policy and so encourage a positive and open culture by providing development and

training.

The quality policy will ensure that the customer requirements are recognized and that consistent

control of requirements is established and maintained.

Objectives of the Qual ity Department:

To establish and maintain a Quality Management System which gives a control in the

organization.

To reduce the delay in the submission of tenders and quotations.

To reduce the delay in getting the approval drawings from the client by 10%

To reduce the delay in preparing fabrication drawings by 10%


79/89

69

To reduce the time taken in issuing LPO (Local Purchase Order) from 10 days to 7 days.

To reduce the error in manufacturing by 5%

To reduce the error at site by 10%

To reduce the delay in the delivery of material as well as reduce multi delivery by 10%

To reduce the losing jobs on tender by 20%

To increase turn over by 10%

To increase the quality assurance of the products and reduce the consumption of

electricity by 3%

To reduce the wastage in workshop by 10%

Procedures for Quali ty Assurance:

Control of Documents: This procedure outlines the system of preparation,

authorization, storage, issue, review and modification of documents or data relating to the

Quality Management System developed by the company.

Control of Records: To ensure that all required valid records are maintained

with proper identification in the right location for an easy access. It applies to all the records and

incoming/ outgoing correspondence of the company.

Procedure for Corrective and Preventive Action: The purpose is to control

corrective and preventive action activities required as a result of actual or potential non-

conformances. The non- fulfillment of requirement is called non-conformance.

The action taken to eliminate the cause of an existing non-conformance, defect or other

undesirable situation in order to avoid recurrence is the corrective action. The action taken to

eliminate the cause of potential non-conformance, defect or other undesirable situation in order

to avoid occurrence.

Emergency Response Procedure: Emergency is the abnormal occurrence which

cannot be handled or controlled by the equipment or personnel available in the immediate area.

Fire at office Fall from a height

Electric shock


80/89

70

Procedure for Internal Audit: Prior to the audit an opening meeting may be

held with the relevant Department Head during which the auditor/ team will explain the scope

of the audit, the method of reporting and confirm the closing meeting.

During the audit the auditor may observe areas within the system where there may be potential

for non- conformance or improvement. Any such information shall be recorded. All actual non-

conformance detected during the audit shall be recorded using a non-conformance report form.

Upon the completion of the audit the auditor/team shall prepare an audit report. The auditor/team

shall communicate the results of the audit, including any observations and incidents of non-

conformance, to the relevant staff, the Department Head during the closing of the meeting.

The auditor shall take the corrective or preventive action as required. Then a follow up audit

shall be prepared to verify the implementation and efficiency of the action taken.

Management Review Procedure : To review the performance Integrated

Management System(IMS) , effectiveness and suitability, continuous improvements and

ensuring its continuing capability to meet the requirements of the Product Quality,

Environmental Performance, Occupational Health and Safety Management.

Company has set up SMART (Specific. Measurable, Achievable, Realistic and Time based)

objectives at all levels within the organization based on company level objectives which are

based on:

Views, needs and expectations of the owners, customers, society and staff

Outputs of the management review meetings, planning and internal audit results

Process and product performance

Competitor analysis


81/89

71

Safety Department

Figure 22

Safety Department


GENERAL MANAGER

DIVISIONAL

MANAGER

SAFETY ENGINEER

HEAD

SAFETY SUPERVISOR SAFETY SUPERVISOR


82/89

72

MK Trading is fully committed to the Health, Safety, Environment Protection and security of the

employees and workers of the organization. It is the companys policy to provide healthy, safe

and secure working conditions and give due consideration to the preservation of the environment

in accordance with relevant standards and guidelines and complies with the applicable national

and international laws, rules and regulations.

It shall conduct its activities and operations with the following objectives:

No harm to people

Provide for safe practices and safe environment

Establish safeguards against all identified threats and risks.

Protection of the environment.

MK Trading shall ensure that these objectives are achieved by:

Maintaining the industry standards of safety and security consciousness, personal

discipline and individual accountability by adherence to an adequate and documented

system of training.

Actively promoting employee participation in measures aimed at improving health,

safety, security and protecting the environment

Keeping all personnel informed of any known or potential hazards and threats that may

affect themselves, their colleagues, their construction workplace or the environment by

pertinent documentation.

Ensuring adherence at all times to the documented operating procedures by system of

internal verification of activities and procedures.

Continuously reviewing all mandatory rules, regulations, industry code and guidelines

that are relevant for the specific projects carried out.

Take all practicable steps to ensure that the contractors work in line with the procedures.


83/89


84/89

74

Labor intensity is causing high labor costs as the employees and work force are

demanding more with the price fluctuations.

Opportunities:

Strengthen the relationship with the customers through the use of IT.

Use group purchasing with other steel fabricators to gain a discount.

Acquire steel supplier.

Use of new technology based equipments is rising.

Growing demand for steel fabricated buildings.

Threats:

Increasing availability of substitutes in the market

Existing competitor or new entrant able to produce and tender at much lower price.

Prime contractor could become a competitor.

Overseas player enter the market


85/89

CHAPTER FOUR

OBSERVATION AND CONCLUSION


86/89


87/89

76

Suggestions

It is advisable to provide a better advertising for attracting more clients and consultants.

The safety of the workers should be taken more into consideration by ensuring they are

wearing safety helmets and boots while at work.

Company can introduce a customer care service for handling complaints and suggestions.

It is recommended to consider each employee as an individual and provide support

during personal crisis.

Monthly counseling could be provided to the employees.

The canteen facility is not at a walk able distance and so each employee has to depend on

their own vehicles to go and have food. In order to avoid this, the canteen could beshifted within the company locality.

The Research and Development unit could be made as a whole separate unit instead of

having their functions done by the administration team.

Better performance appraisal systems and grievance handling could be provided.

The financial grants could be increased based on the experience and performance.

The management should respond quickly to the leave application of the employees.


88/89

77

Conclusion

MK Trading is one of the well performing companies in the Sultanate of Oman, engaged in the

process of steel fabrication. The company was established to meet the growing need of the Pre

Engineered Building. It is reaching new boundaries with its performance. In due course they

have acquired and developed fully fledged capacity in design, fabrication and erection of any

kind of steel structure in infrastructure are as well as industrial development area.

From the study conducted I was able to understand that the customer tastes and preferences are

changing, the competitors are bringing in new sales promotion strategies, and our company is

adapting well to these changes and able to keep up the trust of the customers due to its brand

image, quality ensured and timely finishing of the projects undertaken. The analysis of each

department was carried out and I came to know that the various processes are carried out and

controlled by skilled and efficient staff