Submitted to Internet

Embed Size (px)

Citation preview

  • 7/28/2019 Submitted to Internet

    1/30

    SUBMITTED TO:

    Mr. Shahid Rasool

    SUBMITTED BY:

    Salman Habib

    S. Muzammil Hussain

    Saira Aslam

    Sana Yasmeen

    Nadeem Abbas

    Amjad Hussain

    http://www.google.com.pk/imgres?imgurl=http://www.petrocon.com.pk/images/ParcoLogo.gif&imgrefurl=http://www.petrocon.com.pk/mechanical_projects.html&h=95&w=135&sz=6&tbnid=fonM3ZWsjGOqmM:&tbnh=76&tbnw=108&prev=/search?q=parco+logo&tbm=isch&tbo=u&zoom=1&q=parco+logo&usg=__1DD_zXHFgBQ--zXnkRDML6mamaQ=&docid=bVVubF3Nm0DEtM&hl=en&sa=X&ei=O9yKUOqVJZDjrAfMsIDACw&ved=0CDIQ9QEwAw&dur=909
  • 7/28/2019 Submitted to Internet

    2/30

    IN THE NAME OF

    ALLAH THE MOST

    MERCIFUL AND THE MOST BENEFICIENT

    http://www.google.com.pk/imgres?imgurl=http://www.petrocon.com.pk/images/ParcoLogo.gif&imgrefurl=http://www.petrocon.com.pk/mechanical_projects.html&h=95&w=135&sz=6&tbnid=fonM3ZWsjGOqmM:&tbnh=76&tbnw=108&prev=/search?q=parco+logo&tbm=isch&tbo=u&zoom=1&q=parco+logo&usg=__1DD_zXHFgBQ--zXnkRDML6mamaQ=&docid=bVVubF3Nm0DEtM&hl=en&sa=X&ei=O9yKUOqVJZDjrAfMsIDACw&ved=0CDIQ9QEwAw&dur=909
  • 7/28/2019 Submitted to Internet

    3/30

    Acknowledgements

    We are very thankful to Almighty Allah Who has givenus wisdom and power to learn and seek. All praises and admirations

    to

    Almighty AllahWho is the creator of everything.

    Thanks also to Hazrat Muhammad (PBUH) Who is

    source of knowledge and leadership for all mankind forever.

    We are also very thankful to our beloved teacher Mr.

    Mehboob Hussain, who is prompting us towards professionalism.

    Tons of thanks for his valuable support and consistent guidance.

  • 7/28/2019 Submitted to Internet

    4/30

    Dedication

    This

    Report

    Is

    Dedicated

    To

    Who are always a source of love, affection and

    inspiration for us.

  • 7/28/2019 Submitted to Internet

    5/30

    INTRODUCTION

    Petroleum energy plays a pivotal role in the socio economic development of a country,

    especially for a developing country like Pakistan, where demand for petroleum products is fast

    increasing.

    Incorporated in May 1974, Pak Arab Refinery Ltd. (PARCO) has now been in existence for 27

    years as a joint venture between the government of Pakistan (GOP) and Abu Dhabi. Its

    authorized capital is Rs. 5 billion and paid up capital is Rs. 2160 million of which 60% is held

    by the GOP and 40% by Abu Dhabi petroleum investments of Abu Dhabi.

    This long awaited project has been setup despite facing numerous obstacles and hurdles during

    the 1998-99 period and despite international sanctions.

    PARCO is presently engaged in the transportation of petroleum product on behalf of oil

    marketing companies OMCs from Karachi to Mahmood Kot near Multan and to Faisalabad

    and Machike near Lahore through its 1,230 kms. Pipeline. Parcos pipeline system includes a

    network of highly sophisticated telecommunication facilities and a comprehensive supervisory

    control and data acquisition system.

    Originally, Parcos pipeline network was functioning up to Mahmood Kot near Multan, a

    distance of 864 kms. And operating on the basis of two pumping stations at Karachi and

    Shikarpur with an annual pumping capacity of 2.9 million tons. Two additional intermediary

    pumping stations commissioned in 1994 at Bubak (Sindh) and at Fazilpur (Punjab) increased

    the pumping capacity to 4.5 million tons per annum. Later, with further technological upgrading

    of the system the pumping capacity was increased to 6 million tons. This additional capacity is a

    major step towards meeting the increasing requirements of petroleum products in the central

    and northern areas of the country, which account for over 60% of the coun trys demand of

    petroleum products. This increased capacity will also come in extremely handy for transporting

    4.5 million tons of crude and 1.5 million tons per year of products through the existing

    pipelines. This timely initiative by PARCO will relieve a lot of pressure on road movement.

    In June 1997, PARCO completed its 364 Kms. MFM pipeline extension project and extended

    its operations to Faisalabad and Machike. The project design allows for further expansion of the

    pipeline from Faisalabad at Kharian besides Sahiwal and from Mahmood Kot to Peshawar.

  • 7/28/2019 Submitted to Internet

    6/30

    PARCOs pipeline system consists of 7 pumping stations namely:

    PS-1 Korangi

    PS-2 Bubak

    PS-3 Shikarpur

    PS-4 Fazilpur

    PS-5 Mahmood Kot

    PS-6 Kot Bahadur Shah

    PS-7 Faisalabad (Not operational as yet)

    Also, there are four terminal stations namely:

    TS-1 Keamari

    TS-2 Mahmood Kot

    TS-3 Faisalabad

    TS-4 Machike

    PARCO delivers the products at Mahmood Kot through a further pipeline connection of 4.5

    kms. To the joint oil marketing companies facilities called JIMCO.

    All PARCO terminals and pumping stations have been designed according to the latest

    international standards and laid out in a standardized fashion for ease of operation. PARCO

    crosses country installations have been adjudged to be comparable to the best available in the

    international oil industry.

    The refinery will be on stream by September 2000, which will place PARCO in a unique

    position, with an additional capability to exploit the future trends of the oil industry in Pakistan.

    Bankers Of the Company

    Following are the Bankers of the company.

    ANB-AsMRO Bank

    Allied Bank of Pakistan Ltd.

  • 7/28/2019 Submitted to Internet

    7/30

    ANZ Grindlays Bank

    Bank Al-Falah Ltd.

    Bank of America

    Crescent Investment Bank Ltd.

    Deutsche Bank

    Emirates Bank International

    Gulf Commercial Bank Ltd.

    Habib Bank Ltd.

    Mashreq Bank

    Muslim Commercial Bank Ltd.

    National Bank of Pakistan

    National Development Finance Corporation

    Pakistan Kuwait Investment Co. (Pvt.) Ltd.

    Standard Chartered Bank

    The Bank of Khyber

    The Bank of Punjab

    United Bank Ltd.

  • 7/28/2019 Submitted to Internet

    8/30

    Auditors of the Company

    The auditors of the company are Taseer Hadi Khalid & Co. Chartered Accountants.

    NUMBER OF DEPARTMENTS

    Finance Department.

    q Human Resource Department.

    q Process.

    q Personnel & Administration.

    q Electrical / Instrument.

    q Mechanical

    q Technical Services.

    q Health & Safety Environment.

    q Engineering Services

    Company Secretary

    Mr. S.M. Mahboob

    Corporate Office

    Corporate Headquarters,

    Korangi Creek Road,

    Karachi- 75190,

    Pakistan.

    Registered Office

    Avari Plaza,

    Adjacent to Hilton Hotel,

    87,Shahrah-e-Quaid-e-Azam,

    Lahore. Pakistan.

  • 7/28/2019 Submitted to Internet

    9/30

    Refinery Office

    Qasba Gujrat, Mahmood Kot,

    Distt. Muzaffargarh,

    Pakistan.

    MISSION STATEMENT

    the area of product transportation, as it has in the past with the pipeline transportation.

    petroleum products which is currently around 18 million metric tons, increasing at rate of 5%

    per annum.

    OBJECTIVES

    The following long term corporate objective, which are inherently embodied in the name of

    the company are:

    (P) Professional and Progressive Corporate outlook.

    (A) Aggressive Pursuit of Technical Excellence Advanced Planning.

    (R) Reliability of Service

    (C) Consistency in performance

    (O) Organized, Systematic Development.

    ]

    CORPORATE PROFILE

    PARCO OIL REFINERY has been in existence for more than 30 years. Its corporate voyage

    by these years has been very important milestones. In the past 17 years PARCO has fully grown

    in size and strength and it can look with confidence towards a much brighter future. Incorporated

    as a public limited company in 1974, PAK ARAB REFINERY LTD is a Joint Venture between

    the Pakistan and Abu Dhabi. The division of shares in the Company is in the proportion of

  • 7/28/2019 Submitted to Internet

    10/30

    Government of Pakistan (60%) and of ABU DHABI Petroleum Investment (ADPI) is 40% in

    which 7% shares are of the Govt. of Austria.

    PARCO's major activities are:

    1. Oil Refining and allied facilities.

    2. Oil Pipeline systems storage and allied facilities

    Future projects.

    There are following future projects of parco.

    1.Diesel hydro-Desulphurisation.

    It is a green diesel and this project has been completed.This green diesel is used within bigcities of Pakistan and it`s consumption is low.

    2.Asphalt production plant.

    In this plant they will produce Asphalt which is used on roads.

    3.Khlifa Coastal Refinery.

    It would be setup at coastal areas at which 250,000 barrels oil would be purified.

  • 7/28/2019 Submitted to Internet

    11/30

    4.Pipeline Extension projects.

    There are some pipeline projects of parco which would minimize the cost of transpoatation.The

    piplines would be from

    1.Faisalabad to Kharan.

    2.Faislabad to Sahiwal.

    3.Mahmood kot to Pishawar.

    Through these pipline the cost would be minimize upto RS.10,000 per oil tanker Which

    is used to take 100,000 barrels purified oil to different areas of country.

    Core Competencies.

    There are following Core Competencies of Parco.

    1. Flexibility.

    There is regular hiring of employees and there is full job security no one cane fire any

    employee from job.It provides professional working environment and good salary packages.

  • 7/28/2019 Submitted to Internet

    12/30

    2. System and Technology

    ISO check the standard either the oil is refining up to the standard or not.Parco has a huge

    integrated system in following catagories.

    1.Product technology

    2.Process technology.

    3.Information technology.

    The first two technologies are based on Japanies technology system.The two Japanies

    consutant service have completed them.As for information technology it concern with differentapplications of the softwares for the purpose of administration.Which was developed by the

    Pakistan company ORA-TECH system.

    3.cost

    Pipline system has minimize the cost of transportaion to long disance like

    Faisalabad to kharian 190km

    Faisalabad to Sahiwal 90km

    Mehmodkot to Pishawar 450km

    Parco sales the oil to the government Rs. 20 per liter.110% reflnery is working and 30% of

    refined oil is selling on daily baises.

    4.Facilities.

    PARCO has provided different facilities to employees.it includes

    residence,transport,Bloomfield school,market,shopping bus,Parco club,Market which contains all

    necessary products,gym,Hajj policey,IBN E SINA hospital.

  • 7/28/2019 Submitted to Internet

    13/30

    BOARD OF DIRECTORS

    -Khaily Director/Vice Chairman

    Director

    -Ramahi Director

    -Qahtani Director

    -Heinz Horrak Director

    The company manages by professional management. The relationship between workers and

    management are coordinated. The employees are quite satisfied with their management. The

    workers are drawing handsome salaries. The management is also satisfied with the performance

    of employees.

    Financial Year

    The financial year of the company begins from 1

    st

    July to 30

    th

    June.

    NUMBER OF DEPARTMENTS

    Environment.

  • 7/28/2019 Submitted to Internet

    14/30

    Company Secretary

    Mr. S.M. Mahboob

    Corporate Office

    Corporate Headquarters,

    Korangi Creek Road,

    Karachi- 75190,

    Pakistan.

    Registered Office

    Avari Plaza,

    Adjacent to Hilton Hotel,

    87,Shahrah-e-Quaid-e-Azam,

    Lahore. Pakistan.

    Refinery Office

    Qasba Gujrat, Mahmood Kot,

    Distt. Muzaffargarh,

    Pakistan

    MATERIAL MANAGEMENT

    Material Management is concerned about short range decisions about supplies , inventories,

    production level, staffing patterns, schedules and distribution.

    Purchasing

    The Purchasing is very important for the organization and continuously seeking to better

    by the material from supplies. The raw material of PARCO is imported from Saudi Arabia and

    Abu Dhabi approximately the 60% of raw material is imported from Saudi Arabia.

  • 7/28/2019 Submitted to Internet

    15/30

    For equipment and supplies purchases there is equipment and supply committee. A

    reorder level of the equipment supplies is used and maintains .There is microwave

    communication system of organization. The organization have direct contact with suppliers.

    To reach a final agreement the planning about purchase of raw oil and equipment

    contracts are being shaped.

    Distribution

    The Distribution means to manage the of flow of materials from manufacturing to consumers

    and from warehouse to retailers, that are involved storage from transportation of products.

    PARCO oil refinery is presently using pipeline system road transportation. But now a

    days it is going to adopt only pipelines transportation. The Parco organization will move for

    forward and backward placement.

    Forward Placement

    The forward placement means with retailer and wholesaler locating stock closer to

    customer .For example the Placement by Machhike terminal station and by the terminal stations

    of Sahiwal and Kharian.

    Backward Placement

    The backward placement is used to almost any location and pipeline transportation and

    through oil tanker.

  • 7/28/2019 Submitted to Internet

    16/30

    MATERIAL IMPORTANCE FOR PARCO

    Material is important for PARCO because the Refinery will optimize product supply logistics

    and ensure efficient and economic availability of petroleum products to the central and northern

    regions of the country, which about for over 60% of the countrys total requirement.

    Impact of Material Storage:

    Material has the direct impact on the profitability of the organization. Parco cannot keep much

    more material because if they do so, they will have to bear much more cost of holding.

    FUNCTIONS OF THE MATERIAL MANAGEMENT

    PURCHASING:

    Parco will import three vessels per month, approximately carrying 64,000 metric tons each from

    Saudi Arabia.

    SUPPLIER:

    The supplier of the crude oil for Parco is ARAMCO. PARCO entered a crude oil sales

    agreement with ARAMCO for the purchase of 30,000 barrels/day of light ARABIN crude. The

    agreement was signed at Dahran on Jun 18,2000.

    CONTRACTING:

    Contract for the transportation of crude oil for the MID-COUNTRY Refinery, from Saudi

    Arabia and Abu Dhabi, was signed with Pakistan National Shipping Corporation (PNSC) on

    July 18,2000.

    PERIODIC REVIEW SYSTEM

  • 7/28/2019 Submitted to Internet

    17/30

    The second method of inventory control system is periodic review system. In this system the

    inventory position is judge periodically instead of continuously. In a p system the lot size may

    change form one order to the next, but time between orders is fixed.

    INVENTORY CONTROL SYSTEM AT PARCO

    PARCO USING THE PERIOD reviews system. It means that lot size vary but the time between

    orders is fixed. As PARCO will import three vessels per month approximately carrying 64,000

    metric tons each, but the first vessel brought 66,000 metric tons of crude oil for the Mid

    Country Refinery.

    Project design And Implementation strategy.

    1.Business Design.

    In business design they relate the expenditure plan to meet up countary market

    demand.In this plan the adjust the expenditures in such a way tat they may handle the market

    demand and they make capacity cusion to avoid the uncertainity.

    2.Process design.

    The process design consists of Fit for purpose designstrategy.It creats most economic least

    costengineerig solution to meet the market requirement.Parco tries its best to maintains its

    economies of scale.

  • 7/28/2019 Submitted to Internet

    18/30

    3.Engineering Design.

    In engineering design they eradicate all the useless and waste expenses.eg rigorous review of all

    cost items.They do not do any wasteful expense on technology all expenses are according to

    requirement.

    4.Implementation strategy.

    It makes the Supply and construction contracts to create firm cost and project completion with in

    36 month.

    5.Financing arrangement.

    The Parco Oil Refinery is generation of equity with the help of in house resources without the

    existing share holders to make contribution of additional funds.

    Project Facts.

    1.Location.

    There is Parco Oil Refinery situated at Mahmood Kot, that is surrounded by Muzaffargarh

    Which is District of Pakistan. Refinery is 65KM away from the city of Multan.Which is

    connected with the other areas with the help of rails,airline and by road. Nearest area of railway

    line link is Mamood Kot tht is just 5km from the Parco Oil Refinery. There are two main termal

    power plants,at the distance of 30 km from refinery ne is at Kot Addu and the otheris at

    Muzaffargarh that have capacity of 1,500 and 1,300 MW , on the other hand a 762 MW AES

    Fuel thermal power complex is 5 km away at Lalpir. The refinery is 10-15km away from the

    river and 35km away from river Chenab.

  • 7/28/2019 Submitted to Internet

    19/30

    Advantages Of Refinery Location

    The PARCO has following advantages due to location.

    1. It has sensible and strategic location according to commercial and national security

    perspects.

    2. About 35 million population is served as major consumer by Parco.

    3. The movement of crud oil petroleum products become very easy through pipeline to

    different regions of the country it minimize the expenses of the transportation through road or

    4. The parco is very near to petrochemical demand Which give benefits for the huge

    petrochmical growth in future.

    2.SUPPLIER

    The main suppliers of Qatar,Kowait,and Saudia arabia.The crude oil for Parco is

    supplied by ARAMCO. The PARCO has made an agreement with ARAMCO for the purchase

    of 30,000 barrels of oil.This agreement was signed at DAHRAN on 18 JU

    Operation strategy

    The Operation strategy Of PARCO is concerned with setting of the broad policies for

    using the resources of production of the firm to fully provide the support to the long-term and

    short -tem strategy of the firm. There are following operational strategy issues

  • 7/28/2019 Submitted to Internet

    20/30

    1.Location

    2. Capacity

    3. Process

    4. Operation

    5. Quality

    Location.

    The refinery is located in Gujrat at Mehmood Kot.The main purpose for starting the

    project here is the dvelopment of this area. The petroleum marketing companies are serving as a

    petrolum product distribution terminals.The name of this terminal is Joint Installation of Market

    Companies abbrivated as JIMCO. Which is linked with the help of pipeline systems with

    PARCO Mehmood Kot terminal.

    With the help of this terminal the refinery produced HSD which is recived from

    Karachi with Karachi through PARCO Pipeline is filled in rail wagons and road tankers for

    transportation to various locations in Punjab and NWFP.

    PARCOhas another pipeline system known as Mahmood Kot to Faisalabad and

    then to Machike (MFM) Pipeline system which is originates from PARCO termina of

    Mehmood Kot. The Pipeline of Parco carries HSD and Kerosene to Machike

  • 7/28/2019 Submitted to Internet

    21/30

    CAPACITY

    Capacity is the minimum rate of output for a facilityThe Refinery complex includes 11 onsite units process units besides numerous off site / utilities

    units and other permanent facilities with 51 tanks to store the crude oil, intermediate feeds

    stocks and finished products.

    PARCOS mid-country Refinery will have a refining capacity of 100,000 barrels per day or

    4.5 million tons per annum making it the largest in the country The facilities regarding capacity

    has been divided in two categories.

    Process unit capacity

    Storage unit Capacity

    Process Unit Capacities

    The Refinery capacity is around 4.5 million tons per annum equivalent to a processing

    throughput of 100,000-barrels/ day of a mixed Arabian Light/ Upper Zakum/ crude slate, which

    is being transported to the Refinery site by PARCO's Keamari to Mahmood Kot (KMK)

    pipeline system from Karachi.

    The Refinery is processing Crude Oil of Upper Zakhum from Abu Dhabi and Light Arabian

    Crude from Saudi Arabia.

    The Refinery Complex includes 11 Onsite Process Units besides numerous Offsite/Utilities

    Units and other permanent facilities with 46 tanks to store Crude Oil, intermediate feeds stocks

    and finished products.

    A summary of the available tank age of the Refinery for various Petroleum Products is detailed

    below

  • 7/28/2019 Submitted to Internet

    22/30

    PROCESS UNITS AND CAPACITIES

    Unit code Unit BPSD

    100 Crude distillation 100,000

    110 Vacuum distillation 42,800

    200 Naptha Hydrotreater 25,650

    300 CCR platformer 16,350

    284 Diesel max 22,450

    130 Visbreaker 15,560

    801 Kerosene merox 20,000

    802 LPG merox 4,500

    411 Gas concentration Liquid: 22050

    Gas: 11.242 (MMSCFD)

    810 Amine treating F.G.: 7.721 (MMSCFD)

    SWS: 9,963

    820 Sulphur recovery 115 MTPD

  • 7/28/2019 Submitted to Internet

    23/30

    Storage Unit Capacity

    The storage capacity of finished product in PARCO are normally maintained in differentContainer having different capacity which are as follow.

    PRODUCT STORAGE AT MCR

    MS (87 RON) 11,000

    **MS (90 RON) 5,000

    HSD 56,000

    KEROSENE 12,000

    JP-1 16,000

    OF 34,000

    LDO 5,000

    JP-4 4,000

    LPG 2,000

    CRUDE 350,000

  • 7/28/2019 Submitted to Internet

    24/30

    Capacity Planning In Parco

    In PARCO the plans regarding the capacity are made at two levels. Longterm capacity plansdeals with the investment in the new facility and equipment. Shortterm capacity plans focus on

    the work forces, over time budget, inventory and type of decision.

    PARCO is the capital intensive project. Its long term planning regarding capacity highly

    depended on installed process unit capacity and demand pattern.

    In mega and complex project like PARCO there is very less flexibility that installed capacity

    would increase. Secondly the plant capacity easily serves the customers demand with in the

    installed capacity (100,000 BPD).

    PARCO is currently operating at 70 % capacity because demand for the product obtained from

    naphthalene is low in the country. For the surplus oil production Government of PAKISTAN is

    now going to export these oil products.

    Measure Of Capacity

    No single unit capacity measure is applicable to all type of measuring situations in PARCO.

    Major capacity measures in PARCO are.

    Barrel Per Day

    Cubic Meter

    Cubic Feet

    Tone

    But capacity in terms of output measures only in BPD. Because in line flow process output

    measure is the usual choice for measurement.

  • 7/28/2019 Submitted to Internet

    25/30

    The PARCO reach its peak capacity by using marginal method of production such as excessive

    over time extra shifting and over staffing. The effective capacity rate is to 60 to 65% of plant

    utilization rate.

    Capacity Strategies

    PARCO goes for expansionist strategies for capacity decision. The expansionist strategy, which

    stays a head of demand minimize the chance of sale loss to in sufficient capacity.

    The other reason of using expansionist strategy and minimize sale loss is the product recycling.

    This also minimize the wastage therefore, it is also known as an environment friendly project.

    Process.

    The process mean that involves the use of resources of organization that provides

    something value. It is the choose of the inputs, operations, workflows and ways that converts

    inputs into outputs.

    4. Operation decisions.

    The Operation management of PARCO oil refinery designs the new processes which

    have strategic implication and they are deeply involved in development and organization of

    supply chain that link external suppliers and external customers of refinery`s internal

    processes.The operation managers may also measures the performance of refinery either the oil

    is purifying at best level or not and all the depertments are performing well or not.These

    decisions provide the firm a competitive edge.Thedecisions of managers also effect on the

    different corporate strategies of the organization.

  • 7/28/2019 Submitted to Internet

    26/30

    Process Management

    The process means involves the use of the resources of the organizatiomto provide

    something value and the process management means the choosing the inputs, operations,

    workflows and methods that converts the inputs into outputs.

    Process Decision

    There are following baises on which the process decisions made by parco.

    1. A modern and the substantially modified, product a with good quality which is improved.

    2. The demand of the service and product is changing

    3.The present performance is not sufficient

    First decision that a manger makes in deigning operation is to select a process which support

    its flow strategy

    Managers have following fiveprocess.

    1. Project

    2. Job process

    3. Batch process

    4. Line process

    5. Continuous process

    The Parco oil refinery is using Continuous Process from above five. The

    continuous process is high end of high volume, standardized, production .

  • 7/28/2019 Submitted to Internet

    27/30

    Production Process

    The PARCO Oil Refinery intent to purify the crude oil of upper Zakhum which

    brought from Abu Dhabi and light Arabian crude brought from Saudi Arabia. There are 11

    units in refinery complex beside numerous utilities unit and permanent facilities that have

    approximately 46 tanks for the storage of the crude oil.

    Supply chain management

    The supply chain management of Parco synchronizes the functions of firm and its supplies

    to flow of product material and information with customer demand.

    Transportation Mode

    Parco pipelines network km, and was functioning up to Mahmood Kot near Multan, a distance

    of 864 on the basis of two pumping stations at Karachi and Shikarpur with an annual pumping

    capacity of 209 million tons. Two additional pumping stations commissioned in 1994 at Bubak

    (sindh) and at Fazilpur (Punjab) increased pumping capacity to 4.5 million tons per annum. In

    June 1997, Parco completed its 364km pipeline extension project and extended its operation to

    Faisalabad and Machike. The project design is allow for future expansion of the pipeline from

    Faisalabad to Kharain besides Sahiwal and from Mahmood Kot to Peshawar.

    It is fast moving to establish a synergy of all these operations in the petroleum downstream

    sector. AAA and AT ratings by Parco for third successive year are a proof of the sound financial

    standings of Parco.

    \

  • 7/28/2019 Submitted to Internet

    28/30

    Usage of direct expenses

    As shown in the Hierarchal Chart (previously) Material Section is controlled by Section Head

    Materials. Purchase of the new parts is controlled by the In charge of Local Purchase who

    works under Section Head Materials. In charge of Local Purchase have one supervisor and two

    clerks under him. They handle the purchase of the inventory. The entire inventory is kept in a

    Warehouse which is controlled by In charge Warehouse. In charge Warehouse also works under

    Section Head Materials. Under In charge Warehouse there are two sub-ordinates. One

    supervisor and two clerks. One is responsible for the book keeping of stored inventory data, and

    one is responsible for the stored parts. Then the last is In charge Material Control. There are

    three people working under him, one supervisor and two clerks. They are responsible for coding

    of the inventory and also to make purchase requisition in case of low level of the inventory.

    The Material Section of the Mechanical Maintenance Department is responsible for providing all

    the necessary spare parts needed for the work of maintenance. This system is currently running

    manually and all the other systems in the refinery are fully computerized. This thing according to

    our analysis reduces the efficiency of the Mechanical Maintenance Department and in turn

    reduces the efficiency of the Refinery as a whole. Lets study it thoroughly.

    Order To Finish

    It provides information about the work order, how much quantity is ordered, type etc. Complete

    information is recorded in this table

  • 7/28/2019 Submitted to Internet

    29/30

    Field Pk / Fk Data Type Description

    Order# Pk Number(5) Identification of serial no. of the order

    which has a unique numeric value so that

    duplication is not possible and neither is it

    possible that an item does not have a

    unique no.

    Order _type Varchar2(15) Gives information about the type of order

    that is sent.

    Order unit Varchar2(25) The units assigned to every order

    Unit _cost Number(5) Tells us about the cost of the unit.

    Work _order Vachar2(50) It tells about part no, shelf life code,

    additional MSDS etc.

    Vendor # Fk Number(5) Tells us who supplies the equipment. This

    field is used for the relationship with the

    Vendor table.

    Quantity Number(5) How much quantity is stored, present or

    used

    Conclusion

    The PARCO is an huge project which is producing the different kind of products.It provides

    professional environment and job security,its salary packages are competentAll parco employees

    are satisfied with the achievement and feel proud of being members of itParco has achieved the

    AAA rating which means that Parco always payback credit on time.

  • 7/28/2019 Submitted to Internet

    30/30

    References.

    Ms.Asma Qurashi Human Resource Manager Parco.

    Mr. Rashid Mahmood Technologist.

    Mr.Shahzad Khalid Administration Manager.