The Kot Addu Power Company ( KAPCO ) runs a 1600 MW combined rhythm Power works at Kot Addu. a little town. in the center of Pakistan. The company came into being in the June of 1996 when the Water and Power Development Authority ( WAPDA ) the province tally power coevals public-service corporation of Pakistan. privatized the works by offering 36 % interest to strategic investor “National Power” of U. K. along with direction control. Kot Addu site is situated in District Muzaffargah. 100 KM north E of Multan on the left bank of river INDUS at a distance of 16 Km from TAUNSA BARRAGE. The country is surrounded by agricultural land stretched on the North and west side of Kot Addu. There are some next countries covered with wind blown sand dunes which were formed with the transition of clip. These sand dunes excessively are being bit by bit converted into agricultural land. Apart from above. there were really small educational installations available in the country prior to puting up of this Power Station which has now about been doubled and some of the School have been upgraded. The indispensable comfortss are besides now made available to the occupants. Introduction to the Power House Complex

The complex comprises three blocks. 1. 2. and 3. Each block is independent in it and can be considered a separate power station. There are 2 combined rhythm faculties in each block no. 1 and 2 whereas block 3 has merely one faculty. This is the physical distribution. For the commercial intent the composite is divided into three blocks called Energy block 1. 2. and 3. The power purchase understanding provides different energy charges for the electricity generated and dispatched from each block. The energy block 1 ( works block 3 ) is the latest and was in commissioning phase when NP took over direction in June 1996 whereas other blocks were completed and commissioned between 1986-1995.

The works block 3. being latest. is the most efficient works and provides the cheapest electricity to client. Its entire capacity is 397 MW. In order of precedence. whenever there is coevals demand from the client. this block is run foremost. When the demand exceeds so merely other workss are run. The complex history over past 4 old ages shows that works block 3 tallies round the clock throughout the twelvemonth at maximal capacity. In instance this works can non run at full capacity due to any mistake or interrupt down of machines. the client demand is made up from other available workss that are comparatively expensive but the client pays lowest energy charges ( of block 3 ) for the shortage coevals. This consequences in important loss. Therefore this block is the most valuable plus of the company. Heat Recovery Steam Generating System

The gas turbines. despite of their low installing cost. easy and rapid hard-on and high burden rate could non win the deserving popularity over the steam turbines due to the hapless efficiency of the former. In the conventional gas turbine unit. significant sum of heat energy was lost through the turbine fumes gases which leave the turbine at about 580 Deg. Centigrade. To do usage of this uneconomical energy. an advanced construct of combined rhythm works. now has been introduced by the gas turbine makers. Under this design. the fumes of the gas turbine is made to go through through a conductivity type boiler ( normally called as HEAT RECOVERY STEAM GENERATOR ) . Hard-hitting steam so generated is so used to run the steam turbine. which therefore produces power without any fuel. This raises the works efficiency to about 49 % against the 28 % of the conventional gas turbine. Agreements between WAPDA & A ; KAPCO

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WAPDA entered into an understanding with KAPCO for the purchase of the power for following 25 old ages from this works. The duty covered two sorts of payments viz. capacity and energy payment. The capacity payment is made on the available capacity of the works and is chiefly used by the company to run into the fixed disbursals and 756 million dollar debt liability that it inherited from WAPDA. The energy payment is done on the existent despatch from the works. It covers the fuel cost and there is barely and salvaging from this portion. The understanding allows 36 complex yearss for the scheduled outages and 500 complex hours for the unscheduled / forced outages. In instance the accrued outage period over the twelvemonth exceeds the in agreement allowance. the company is apt to pay the liquidated amendss at a rate of 1. 6 times of what it gets as capacity payment.

The first twelvemonth of the concern went really good. WAPDA was prompt in doing payments. but it did non lost really long. WAPDA every bit good as Govt. of Pakistan were in fiscal crises because of corruptness and in efficiencies. Ultimately WAPDA engaged KAPCO and National Power in a complicated legal conflict over the tariff issue by registering requests in the high tribunal. The tribunal eventually passed an interim order in October 1998 that restricts KAPCO to have Rs. 1. 98 per KWh of electricity. The nonsubjective behind this legal haggle was to supercharge KAPCO / National Power to hold and out of tribunal colony for tax write-off of duty. With the entrance of present Govt. the affairs have been solved to fair extent. Organizational Structure

The human dynamo composite is spread over 280 estates. As stated earlier there are three independent blocks and each block is independent in itself. Each block has machines of different make where different engineering is used. Production section operates the works and care sections are responsible for up support of the works through preventative care. problem hiting. and major / minor overhauling after preset period. At the face. it is a functional construction. The specialist maps like finance. IT. Personnel. Legal / Administration are common and provide service which Production and care sections need to transport out their work. The production section has it ain centralised construction. Each block has its separate care section that is farther subdivided into three subdivisions with regard to maps Viz. electrical. mechanical. and ‘instrument and control’ . A senior applied scientist caput each map. Resident Engineer 1 caputs block 1 care section whereas occupant applied scientist 2 is responsible for block 2 and 3 care squads. However there is an extra place of Assistant Resident Engineer at block 3 who is responsible to resident Engineer. The senior applied scientist of this block study to both resident applied scientist and adjunct occupant applied scientist. Performance History

The undertaking has performed good thought the period of all time since it has been privatized i. e. June 1996. The part of block 3 in overall coevals of the composite has been much beyond the satisfactory degrees.

Aim
The undertaking has been completed to accomplish the undermentioned aims: a ) To cut down mass graduated table burden casting.
B ) To tauten up Hydel Power Generation during H2O deficit period. degree Celsius ) To ease operation and care of other power Stationss. vitamin D ) To cover exigencies and power deficits with speedy coevals of power supply from this power station which is the outstanding characteristic of gas turbines.

OPERATIONAL STRATEGY
Corporate Scheme
Whatever the type of house. top management’s duty is to be after the organization’s long-run hereafter. Corporate scheme defines the concern ( Es ) that the company will prosecute. new chances and menaces in the environment. Besides addressed is concern scheme. or how a house can distinguish itself from the rivals. Choices could include bring forthing standardised merchandises versus customized merchandises or viing on the footing of cost advantage versus antiphonal bringing. Corporate scheme provides an overall way that serves as the model for transporting out all the organization’s maps. Strategic Choices

Corporate scheme defines the way of the organisation over the long term and determines the ends that must be achieved for the house to be successful. Management sets corporate scheme by doing three strategic picks: finding the firm’s mission. monitoring and seting to alterations in the environment. and placing and developing the firm’s nucleus competences. Application at KAPCO

Before the denationalization the organisation was working under WAPDA like a typical Govt. Organization and had no formal corporate scheme. However. after denationalization in June 1996. the organisation is working on the topic and a bill of exchange corporate scheme has been finalized. The scheme is being unbroken secrete at the minute and no further inside informations are available.

Mission
A firm’s mission statement replies several cardinal inquiries. An apprehension of the firm’s mission helps directors enter thoughts and plan new merchandises and services. If its mission is excessively loosely defined. the house could come in countries in which it has no experience. If the mission is to narrowly defined. the houses could lose growing chances. This should besides include the facets like environment and nucleus competences. The direction should be able to place and cover with environmental alterations when explicating mission statements. Application at KAPCO

The organisation does non hold any formal MISSION or VISION statement of all time since its denationalization. The employees in the organisation merely know that they have to work and bring forth electricity / power with minimal possible outgo. In the procedure of the organisation development an in formal Mission Statement has been devised which is unbroken Forth for accomplishing the organisational ends. The proposed Mission Statement is as under: “KAPCO is an independent power produces that provides electricity for WAPDA distribution web. It will go on to lend in the developing economic system of Pakistan by keeping its capacity and maximising handinesss. ”

CORE COMPETENCIES AND COMPETITIVE PRIORITIES
Core Competences
Core competences are organisational alone resources and strengths which direction considers explicating scheme. These nucleus competences include:
1. Work force
2. Facilities
3. Market and fiscal cognize how
4. System and engineering
Competitive Precedences
A house additions an advantage with its operating system by surpassing rivals in footings of one or more of these capablenesss. There are eight possible competitory precedences for operations. which fall into four groups. Cost







1. Low cost operations
Quality
2. High public presentation design
3. Consistent quality
Time
1. Fast bringing
2. On clip bringing
3. Development velocity
Flexibility
1. Customization
2. Volume flexibleness
A house may form itself into one or more operating systems. each designed to back up a peculiar set of competitory precedences for a peculiar set of merchandises or services. Application at KAPCO










Core competences
Work force
A work force of about 800 to 900 100 people is working in the organisation in 4 proficient displacements and 1 general displacement as undermentioned: Technical displacements 3 ten displacements work 8 hourly daily on rotational footing 1 ten displacements remains at remainder

General Shift for 8 hours on day-to-day footing ( from 0800 to 1600 hour ) Market and Financial know How There is no selling section nor are at that place any rival. The organisation do non transport out any selling map. However. a commercial and fiscal section exists. For the charge intent formal fiscal processs are adopted. System Technology

In the recent past the organisation has installed new engineering works for power production. There are combinations of intercrossed engineering workss i. e. Gas and Furnace Oil combination. Gas and High Speed Diesel combination and Steam Operated Turbines. The company is besides switching their information system on the modern lines bit by bit. Competitive Precedences

Cost
All attempts at every degree are directed to cut down the production cost. This is being achieved by the really extended usage of Gas Turbine works i. e. block 3. Quality
High public presentation quality in the organisation is referred as efficient usage of works i. e. with minimal cost maximal end product. Time
The facet is of extreme importance. Precedences like Fast Delivery and On Time Delivery are applicable as the company is bring forthing needed sum of electromotive force at prescribed clocking with complete truth. Flexibility


There is no construct of flexibleness. which is being implemented. The company is instead tied up with the rigorous agendas of utilizing assorted workss. Strategy Based On Flows
These are five cardinal fabrication and service schemes based on flows are: 1. Make-to-Stock Scheme
2. Standardized service scheme
3. Assemble-to-order scheme
4. Make-to-order scheme
5. Customized service scheme
Application at KAPCO
No construct of scheme based on flows is being followed / observed in the organisation. However. all production is being done on the orders / demand received from WAPDA. One may state that make to order scheme is being follows for production of electricity.






DECISION MAKING IN OPERATIONS
Operationss directors make many picks as they deal with assorted determination countries. Although the basic stairss includes: 1. Acknowledge and clearly defined the job.
2. Roll up the information needed to analyse possible options. 3. Choose and implement the most executable option.
Sometimes difficult thought in a quiet room is sufficient. At other times reliance on more formal processs is needed. Assorted methods used are break-even. penchant matrix. determination theory and determination tray. Application at KAPCO


None of the above method is being implemented by the company for gauging demand. The demand is received straight from WAPDA ( The merely client of the company ) and company produces power / electricity consequently.

WORKFORCE MANAGEMENT
Team
Employee engagement. besides called worker engagement or labor-management joint-ness. is a cardinal maneuver for bettering fight. One manner to accomplish employee engagement is by the usage of squads. which are little groups of people who have a common intent. put their ain public presentation ends and attacks. and hold themselves accountable for success. Teams differ from their more typical “working group” because: ? The members have a common committedness to an overarching intent that all believe in and that transcends single precedences. ? The leading functions are shared instead than held by a individual. strong leader. ? Performance is judged non merely by single parts. but besides by corporate “work products” that reflect the joint attempts of all the members. ? Open-ended treatment. instead than a managerially defined docket. is prized at meetings. ? The members of the squad make existent work together. instead than deputing to subsidiaries. Employee Empowerment

The three attacks to teamwork most frequently used are job work outing squads. particular purpose squads. and self-managing squads. All three use some sum of employee authorization. which moves duty for determination further down the organisational chart – to the degree of the employee really making the occupation. Application at KAPCO

By and large the construct of job work outing squad or particular purpose squad exist in the organisation civilization. This is more apparent when major inspection and repair of the workss are done. Persons are made responsible in different squads ( each selected from several displacement ) for specific occupations. However. the civilization needs definite betterment. Training

In a planetary market place. houses face altering market conditions brought on by new rivals and altering client penchants. Firms must trust on their employees to expect possible jobs. develop new merchandises and services. and increase productiveness to stay competitory. The accent on efficient procedure requires the employees have a broader base of accomplishments so that they can take on greater assortment of assignments and communicate with employees in other countries. Firms engage in a assortment of preparation plans. including the followers: ? Global preparation

? Administrative preparation
? Technical preparation
Application at KAPCO
Although the company does non hold any rivals yet the company face a grating a most of electricity demand from WAPDA. To this demand a extremely skilled personal. ( specially Engineer ) are required. As the undertaking kept on developing in stages i. e. from 1984 ( 1st stage ) to 1992 ( last stage ) . To better the accomplishment and update the proficient know how of the on the job staff for the new machinery. a preparation plan was launched right from the beginning of the undertaking. As a consequence of this a figure of station applied scientists received foreign preparation in different Fieldss. Entire plan of developing to different classs of staff was out in five Phases. Phase I


As per contract understanding 7 applied scientists were trained in Germany and 9 in Italy. The preparation was conducted at the preparation centre / mills of the machine makers. Besides the above one months local preparation was besides imparted to the staff at site. Phase II

Under this stage 30 applied scientists received preparation in the field of operation and care of works. The preparation was arranged in France. A local preparation was besides arranged at site for the staff where operation and care of the gas turbines unit 5-8 was taught for a month. Phase-III

For the combined rhythm works unit Forty applied scientists were trained in Germany. Locally the operation and care staff for these units was trained at site by the foreign expertness for a period of 24 hebdomads. Phase-IV

For operation and care of steam turbine units 11 & A ; 12. Twenty applied scientists received foreign preparation in the relevant field. Training was imparted at France. In add-on to the foreign preparation. a local preparation was besides imparted by foreign experts to the operation and care staff. A batch of 20 functionaries attended the class. Phase-V

15 applied scientists were sent to Germany under this stage. The participants of this class received preparation in the field of Electrical. Mechanical and I & A ; C care of power works. A multi field preparation class. covering a span of 13 hebdomads was arranged at the works for local preparation of staff. About 50 individuals availed this preparation to acquire familiarity with the new machinery. Capacity

Capacity is the maximal rate of end product for a installation. The installation can be a workstation or an full organisation. The operations director must supply the capacity to run into current and future demand ; otherwise. the organisation will lose chances for growing and net incomes. Capacity programs are made at two degrees. Long-term capacity programs. These programs cover at least two old ages into the hereafter. Whereas. short-run capacity programs focus on work-force size. overtime budgets. stock lists. and other types of determinations. Capacity Planing

Capacity planning is cardinal to the long-run success of an organisation. Excessively much capacity can be every bit agonising as excessively small. When taking a capacity scheme. directors have to see inquiries such as the following. How much of a shock absorber is needed to manage variable. unsure demand? Should we spread out capacity before the demand is there or delay until demand is more certain? Measures of Capacity

No individual capacity step is applicable to all types of state of affairss. Output steps are the usual pick for line flow procedures. Input steps are the usual pick for flexible flow procedures. Peak Capacity

The maximal end product that a procedure or installation can accomplish under ideal conditions is called peak capacity. Peak capacity can be sustained for merely a short clip. such as a few hours in a twenty-four hours or a few yearss in a month. A house reaches it by utilizing fringy methods of production. such as inordinate overtime. excess displacements. temporarily reduced care activities. overstaffing. and farm outing. Effective Capacity

The maximal end product that a procedure or house can economically prolong under normal conditions is its effectual capacity. In some organisations. effectual capacity implies a one-shift operation ; in others it implies a three-shift operation. Stairss Determining Capacity Cushions

? Businesses find big shock absorbers appropriate when demand varies. ? Large shock absorbers besides are necessary when future demand is unsure. ? Another type of demand uncertainness.
? Supply uncertainness besides favors big capacity shock absorbers. Small shock absorbers have other advantages ; they reveal inefficiencies that may be masked by capacity excesses-problems with absenteeism. for illustration. or undependable providers. Once directors and workers have identified such jobs. they frequently can happen ways to rectify them. Application at KAPCO

Power Coevals
Peak Capacity
Peak capacity of the undertaking is 1600 MW which is achieved through combined rhythm power workss. Effective Capacity
Effective capacity of the works is 1340 MW at any case during the full twelvemonth. ? Harmonizing to the contract the company is bound to supply same sum of power i. e. 1340 MW ( equal to effectual capacity for the following 25 old ages to WAPDA ) ? Although the demand for power supply is received from WAPDA is any case during the twelvemonth. However as a procedure 95 yearss before the beginning of the following twelvemonth. mean 10 ta demand is received in giga Watts / hour from WAPDA. Establishing on this prognosis capacity planning by the company is done. Brief computations for coevals of capacity is as following: 1340 MW x 365 yearss x 24 hrs = 11738400 MW hour


11738400 / 1000 = 11738. 400 giga Wattss hour
Therefore entire coevals capacity per twelvemonth is = 11738400 Giga Watts hour Capacity shock absorber
Keeping in position the unscheduled interruption downs. prolonged scheduled shut down for care / inspection and repair WAPDA has given a shock absorber of 670 Giga Watts hour to the company. The computations are as under: Shock absorber in footings of clip = 500 complex hour

= 500 hour ten 1340 MW hrs = 670000 MW hour
By spliting with 1000 = 670000 / 1000 = 67 Giga Watts hour
Company must seek and keep the unscheduled dislocations and forced outages within this specified capacity shock absorber of 67 gigal Watts hour. Contrary the company has to pay settlement charges to WAPDA. In instance company maintain and efficient work criterion and supply required capacity of power to WAPDA those grace has ( 670 MW hour ) are kept in modesty for the company which it can use during major inspection and repairs which usually exceeds the prescribed clip bound for one or the other ground. Liquidation Damagess

In instance company is unable to supply needed capacity of power to its client WAPDA and over utilizes the grace capacity of 670 MW hour. so the company is bound to pay settlement amendss to WAPDA at a rate of 160 % or 1. 6 times.

Location
Facility Location is the procedure of finding a geographic site of a firm’s directors must maintain in heads assorted factors. Desirability of a peculiar site including propinquity to clients. providers and transit cost are of import. Directors can split location factors into dominant and secondary factors. Dominant factors are those derived from competitory precedences ( cost. quality. clip. and flexibleness ) and have a peculiarly strong impact on gross revenues or costs. Other factors may necessitate to be considered. including room for enlargement. building costs. handiness to multiple manners of transit. the cost of scuffling people and stuffs between workss. insurance costs. competition from other houses for the work force. local regulations ( such as pollution or noise control ordinances ) . community attitudes. and many others. Application at KAPCO

In site choice following factors were kept in position.
? Existing PARCO installation for transit of HSD from Karachi to Mehmood Kot. which is about 35 kilometers from Kot Addu. From Mehmood Kot. a 10 inches diameter grapevine has been to put this power station and HSD pumping was commissioned in June 1989. ( Subsequently on it has been switched over to furnace oil since 2nd Feb. 1991. ) . ? Sweet under land H2O

? Future burden centre of north west countries
? Possible usage of gas from nearby Dhodak Field
? Near to Kot Addu junction Railway Station
? To supply occupation chance to the Location
? General upheaval and development of country.
Layouts
Layouts’ be aftering involves determinations about the physical agreement of economic activity centres within a installation. An economic activity centre can be anything that consumes infinite. The end of layout planning is to let workers and equipment to run most efficaciously. Before a director can do determinations sing physical agreement. four inquiries must be addressed. 1. What centres should the layout include?





2. How much infinite and capacity does each centre demand?
3. How should each center’s infinite be configured?
4. Where should each centre be located?
The location of a centre has two dimensions: ( 1 ) comparative location. or the arrangement of a halfway relation to other centres. and ( 2 ) absolute location. or the peculiar infinite that the centre occupies within the installation. Application at KAPCO


Layout of the company was although ab initio planned by WAPDA but basic considerations of enlargement and maintaining the assorted block and storage locations good within the range of each other were unbroken penetration. Initial location of the works which were constructed in 1985 facilitated the gradual development of the site boulder clay undertaking completed in 1992. Forecasting

A prognosis is a anticipation of future events used for planning intents. Prognosiss are needed to help in finding what resources are needed. scheduling bing resources. and geting extra resorts. Accurate prognosiss allow schedulers to utilize machine capacity expeditiously. cut down production times. and cut stock lists. One of the biggest challenges in concern is calculating client demands. It is a hard undertaking because the demand for good. and services can really greatly. Forecasting demand requires uncovering underlying forms from available information. Application at KAPCO

Power Demand Forecasting
KAPCO does non carryout any prediction for the demand from its client WAPDA. It is instead client by itself frontward the demand. The demand from WAPDA is received five annually. annually. monthly. hebdomadal and even day-to-day i. e. A twenty-four hours in front. As regard demand from WAPDA is concerned at times it is received right when required that even the demand received it is ever unpredictable and probationary because of the typical demand and engineering engagement. Forecasting for Major / Minor Overhauls and Maintenance

Establishing on WAPDA’s demand and running records of the assorted workss and forces experience of the applied scientists calculating for the inspection and repair minor care and agenda outages is done by the company. A really comprehensive process is being adopted for scheduled outages which are the major events for the company ( as these outages has direct bearing on the overall efficiency of the company ) .

INVENTORY MANAGEMENT
Inventory Management is an of import concern for directors in all types of concerns. For companies which operate on comparatively low net income borders. hapless stock list direction can earnestly sabotage the concern. The challenge isn’t to cut down costs or to hold plentifulness around to fulfill all demands. but to hold the right sum to accomplish the competitory precedences for the concern most expeditiously. Application at KAPCO

Inventory of Outputs
There is no stock list for the power which is being produced by the company. Whatever power / electricity is generated familial at the same time to its clients. Inventory of Inputs
A immense stock list is maintain for assorted inputs i. e. Furnace Oil. High Speed Diesel and Spears. National Gas
No stock list of the natural gas is maintained. The gas is coming straight from SNGPL company and is used in the workss. There are no storage of the gas at location SNGPL daily provide 70 million three-dimensional pess of gas to the company for 8 months i. e. from 15 March to 15 November. If this sum of gas is non received KAPCO charges liquidation amendss from SNGPL Ltd. Furnace Oil and High Speed Diesel Inventory


An stock list of 21 yearss demand of Furnace Oil and High Speed Diesel is maintain ever in the company. Quarterly demand is sent to Pakistan State Oil ( PSO ) 44 yearss in progress. This demand is based on WAPDA’s demand of power which is received 46 yearss before the start of the one-fourth. These supplies are kept in storage armored combat vehicles at location. The company has 27 armored combat vehicles each holding capacity of 8. 000 metric three-dimensional oil. PSO is the lone provider and there are no jobs on supply. Spares Inventory

Minor care scheduled outages for major inspection and repairs. unscheduled outages and rinsing outages requires handiness of immense sum of spares round the clock at location. All the trim parts are imported. Therefore. to run into emergent demands trim parts are kept in stock for deserving Rs. 2 billion. In add-on a immense Numberss of trim portion are imported maintaining JIT system in trend. Inventory Review

Periodic stock list reappraisal ( monthly footing ) is conducted in the company.

QUALITY MANAGEMENT
Quality can be defined in a assorted ways. In a general sense. quality may be defined as meeting or transcending the outlooks of the client. For practical intents. it is necessary to be more specific. Quality has multiple dimensions in the head of the client. and one or more of the undermentioned definitions may use at any one clip. Quality can be defined in footings of: ? Conformance and specification

? Value
? Fitness for usage
? Support
? Psychological feelings
One of the of import component of quality ( TQM ) is employees engagement in entirety. Good quality or entire quality can pay off in footings of high net incomes. The new and latest construct of quality is uninterrupted betterment or transcending the degree of customer’s satisfaction. Application at KAPCO



In KAPCO the construct of the quality is followed but in somewhat different signifier. Alternatively accomplishing client satisfaction or transcending the degree of client satisfaction the organisation step quality in following footings: ? Display of best efficiency in running the Furnace Oil / HSD workss. Gas Turbine Station. Heat Recovery Steam Generators and Boilers. ? Least use of natural stuff i. e. Furnace Oil. HSD. Their precedence remains to utilize gas and steams. ? Excellent care mechanism.

? No line losingss
? No unscheduled outages
? No supernumerary stumbling out
? Maintenance of regular operations
Quality is besides measured in footings of:
? Preventive Care
? Break down care
? Condition based Care
? Pro-active care
ISO 9000 Certification
The company. does non hold any enfranchisement from international standard organisation. Monitoring Quality
? Quality is monitored through National Power cardinal station at Islamabad. The company has direct Hot Line ( electronically controlled ) every bit good as a particular monitoring system called SCADA. Any interrupt down. fluctuation and tripping is monitored at National Power Central Station Islamabad. This contributes to the overall quality / efficiency of the organisation. ? It is from this station that assorted demands are placed and in-turn workss are operated. ? The best step of the company’s quality is to hold the least or No liquidated amendss during the twelvemonth. ? Since there are no menaces to the company from the market. other rivals. menaces of natural stuff. gas or HSD the company maintains high criterion of efficiency. Therefore achieve required quality. ? Another of import quality step is to keep 1340 MW
hour end product throughout the twelvemonth. This criterion is expected to last for the continuance of contract of 25 old ages of all time since its denationalization. Quality Policy











An expressed quality policy does non be. In last three old ages many processs. local direction instructions have been issued and operational processs defined from clip to clip The quality policy for KAPCO is defined as:

The company concern is to bring forth and sell electricity to its lone client “WAPDA” as and when it demands. Therefore quality for KAPCO means. “Meeting agreed WAPDA’s requirements” . This is possible by keeping the dependability and public presentation of the works at minimal cost but with attention for people. works and environment.

Scheduling
Scheduling allocates resources over clip to carry through specific undertakings. Normally. programming is done after many other managerial determinations have been made. Sound programming can assist an organisation achieve its strategic ends. Operational programming focal points on how best to utilize existing capacity. taking into history proficient production restraints. Application at KAPCO

Work force Scheduling
There are two types of work forces:
1. Direct Employees.
Those who work in the energy blocks and on workss and boilers. 2. Indirect Employees
Those who work for general responsibilities other than the energy blocks. The organisation has 3 ten displacements of 8 hours working daily. whereas 1 ten displacement remains on remainder for 6 yearss. General displacement works for 8 hours daily. Operational Scheduling



This is one of the best application being applied in the company. In operational programming major outage programs for the following 5 old ages are scheduled. Establishing on this 5 twelvemonth be aftering one-year program is made and approved from WAPDA. Normally outages are scheduled from July to November which is low period for the Thermal Power Stations. This scheduling procedure includes: ? Scheduling for outage starts 18 months before when a peculiar works is indicated for major inspection and repair. ? 15 months before the beginning of the undertaking the purchase requisitions are sent to the purchase section. ? It takes 3 months to have the citations.

? 12 months before the start of the undertaking of the inspection and repair or scheduled outages the concluding demand is placed to the providers by the purchase section. ? 1 to 2 months before the start of the undertaking spares are received at location. ( Since the spares are imported from abroad therefore a shock absorber of 1 to 2 months is kept for negociating the hurdlings of the procedure ) . ? Many major points are received merely in-time ( JIT ) every bit good. ? All prose and cons of the cargo of stuff either by air or by sea are considered and attempts are made to hold the least possible cost with best possible bringing means at due clip. Shut down Scheduling

There are three types of scheduling for closing down as followers: 1. Scheduled outage or planned outages.
2. Unscheduled outages or forced outages.
3. Washing outages for gas turbines
Following parametric quantities are kept in position for programming of assorted types of outages discussed supra. 1. For scheduled outages WAPDA gives 36 complex yearss for each machine. 2. For major passing 50 to 60 yearss at norm are preempted by WAPDA for each machine. 3. For hot gas way review 30 yearss are given.


Establishing on above parametric quantities formal programming of shut down is made on one-year footing. This scheduled program is approved by WAPDA and the care are under taking consequently. Agenda For Cranes And Lifting Equipments

Agendas for Cranes and raising equipment have been developed really late for the first clip. Inspection of these points is in advancement presents through an independent bureau. Designation no is being punched on each equipment. In add-on ruddy colour market is besides being put on tried equipments.

Distribution OF POWER
Application at KAPCO
Power Transmission
For export of electric energy. this station is equipped with a two degree ( 132 KV & A ; 220 KV ) switchyard. Six machines ( Unit No. 1. 2. 3. 4. 9 to 10 ) of the works are connected with the National Grid through 132 KV swithcyard whereas the staying nine machines ( Unit No. 5. 6. 7. 8. 11. 12. 13. 14 & A ; 15 ) terminate at 220 KV Switchyard. Four car transformers further provides an interlink between the two switchyards therefore the system flexibleness for power transmittal of all the machines is enhanced. The power generated by this station is transmitted to the National Grid through web of 10 lines as elaborate below: ? Line 1: KAP 4 —- 132 KV. 100 MW. Industrial State. Multan ? Line 2: KAP 5 —- 132 KV. 100 MW. Muzaffar Garh I


? Line 3: KAP 6 —- 132 KV. 100 MW. Muzaffar Garh II
? Line 4: KAP 7 —- 132 KV. 100 MW. D. I. Khan I
? Line 5: KAP 8 —- 132 KV. 100 MW. D. I. Khan II
? Line 6: KAP 9 —- 132 KV. 100 MW. Kot Addu
? Line 7: Multan I —- 220 KV. 250 MW. New Multan I
? Line 8: Multan II —- 220 KV. 250 MW. New Multan II
? Line 9: Multan III —- 220 KV. 250 MW. New Multan III
? Line 10: Multan IV —- 220 KV. 250 MW. New Multan IV






Supply CHAIN MANAGEMENT
Supply concatenation direction seeks to synchronise a firm’s maps and those of its providers to fit the flow of stuffs. services and information with client demand. a basic intent of supply concatenation direction is to command stock list by pull offing the flows of stuffs. Application at KAPCO

? The KAPCO has an efficient supply concatenation direction system for proviso of Natural Gas. Furnace Oil. HSD and Spares. ? As respect gas it is straight coming from the SNGPL Ltd. to the works on day-to-day requirement footing. A minimal and maximal demand degrees have been finalized with SNGPL Ltd. by the Government on lasting footing. In instance SNGPL Ltd. does non run into the demand liquidated amendss are charges by KAPCO. ? For Furnace Oil and HSD the contractor is PSO. The demand is placed 44 yearss in progress of the demand on quarterly footing as the oil had to be transported from Kamari to Lal Pir and so to KAPCO location. ? A particular 59 Km long grapevine has entirely been laid from DHODAK to KAPCO for proviso of Furnace Oil. This meets the major supply for the company’s demands.

Aggregate Planning
Application at KAPCO
? As such no formal sum planning is done in the company. However the company has a public presentation subdivision. which maintain all records on twenty-four hours to twenty-four hours footing. ? Physical coordination of assorted executives is done really often. Meeting are held rather frequently. ? Commercial and public presentation director. 2 applied scientists. Computer qualified staff. charge staff and HR staff proctor aggregative operations and insure followerss: 1. Liquidated amendss ( if any ) are reduced to minimum.

2. company must bring forth power to its requires capacity and demand. with minimal possible cost.

FINANCIAL IMPLICATIONS
Application at KAPCO
A formal finance / charge subdivision exists in the company. It ensures the charge is done to the client ( WAPDS ) on monthly footing harmonizing to the contract and power provided. At the same clip it maintain all measures received from providers and do necessary agreements and accommodations of payments. In this connexion following parametric quantities are kept in position by the section: ? Monetary values of the Furnace Oil. Gas and HSD were kept as the base and energy charges were decided. The measures are made consequently. ? With the addition or lessening in monetary values the rates are automatically adjusted with the same ratio. ? This work is expeditiously being performed by finance section. ? Bills for the natural stuff are besides prepared and paid harmonizing to the contracts workss.

Information SYSTEM
Information is one of the most of import corporate assets but. to unlock existent value you need to guarantee that it can be easy retrieved. managed and shared. The IT system late installed at KAPCO fulfils the demands. More than 120 officers / applied scientists have been provided with the web computing machines and are connected with each other through a waiter installed at a cardinal topographic point. The most modern computing machine aided care direction and stock control system has besides been installed and made accessible for all the users. The paperss and other signifiers of information can be scanned and converted to electronic signifier. From any workstation. user can recover paperss quickly. reappraisal or footnote them. communicate to other people for remarks or blessing and integrate the information into other popular concern applications.

Executive Summary
Until 1996. Government of Pakistan had monopoly over power coevals and transmittal all over the state. Government ran this concern through State owned “Water and Power Development Authority” ( WAPDA ) . In 1996. the so Government decided to privatise WAPDA in different phases. because of inordinate in-efficiencies in the operation of WAPDA’s and to promote in-ward investing into Pakistan. Kot Addu Power Company came into being in June 1996 when the Government privatise its 26 % portions to National Power England through unfastened command with an option to buy another 10 % . This 10 % was purchased by National Power England. Therefore. in June 1996 a new company named “Kot Addu Power Company” came into being. The power composite is spread over 280 estates of land. It has three independent blocks and each block has machines of different make where different engineering is used. Production section operates the works and care section is responsible for up support of the works through preventative care. problem hiting and major / minor overhauling after preset period.

Prediction of the company is wholly dependent upon the prediction received from WAPDA. Chiefly prediction is done for assorted care operations. Prediction is besides done for the proviso of natural stuff supplies i. e. Furnace Oil. High Speed Diesel and Spare Parts for the works machinery. The company maintains an stock list of 21 yearss for Furnace Oil and High Speed Diesel. It besides maintain a immense stock list of trim parts. A reasonably good Supply Chain Management System exists within the organisation. The company’s basic concern is to bring forth needed sum of power harmonizing to the client demand with No liquidated amendss. The company believes in quality by keeping high efficiency degree of its operations. There are no ISO 9000 enfranchisement obtained by the company. The company is switching its bing manual information system to modernized information engineering based system in which about 120 new computing machines along with a waiter had already been installed. In this study a elaborate analysis of assorted operations direction processs has been carried out. This analysis provides an chance to look into the organisational operation of KAPCO deeply.

Recognition
To get down with. I with my all humbleness convey. my sincere thanks to GOD the ALMIGHTY for holding allowing me the Wisdom and energies to finish this assignments with in the stipulated clip. In the procedure of the readying of study I required batch of counsel and waies. I could have these from extremely learned. experienced and most elegant personality Dr. Hayat M. Awan. Let me acknowledge openly that without his dedicated counsel. most utile advises and wholehearted aid the undertaking was acclivitous. I have learnt a batch and added to my experience during this procedure. I extend my deep gratitude and most sincere thanks to him. I besides extend really sincere thanks to the following executives of KAPCO who have truly provided me with the most utile information about the undertaking. Mr. Nisar Asim Ex. General Manager

Mr. Amjad Ali Sheikh Resident Engineer ( Opeartions )
Mr. Muhammad Yasin Manager Human Resources
I am besides grateful to all others who assisted me in completion of this study. Writer

Foreword
To go an expert in any field. merely theoretical cognition does non supply a concrete base. This is a alone attack of concern instruction that provides an chance to the pupils to detect day-to-day life concern patterns and jobs. Operations Management is one of the nucleus topic of MBA Program that gives us an thought as to how the assorted facet of operations are dealt in the different organisations. Therefore. the survey of this topic is uncomplete without detecting the applications in the existent on the job environment. During the procedure of survey. I made a twosome of visits to run into with the executives of KAPCO. A formal questionnaire was prepared before the treatments were made with the General Manager of the Organization and Resident Engineer ( Operations ) . A really enlightening. thorough and valuable stuff has been collected during the treatment with experts. All this prove to be an effectual beginning of acquisition.

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