EXCELLENCE – FFC’S HALLMARK SYED IQTIDAR SAEED General Manager Technology & Engineering FAUJI...
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Transcript of EXCELLENCE – FFC’S HALLMARK SYED IQTIDAR SAEED General Manager Technology & Engineering FAUJI...
EXCELLENCE – FFC’S HALLMARK
SYED IQTIDAR SAEED
General Manager Technology & Engineering
FAUJI FERTILIZER COMPANY LIMITEDNovember 12, 2008
COMPANY INTRODUCTION
• Fauji Fertilizer Company is Pakistan’s largest manufacturer and seller of fertilizers
• Incorporated in 1978 as JV of Fauji Foundation and Haldor Topsoe, Denmark.
• Produces and markets fertilizer products under the premium brand name SONA
• One of Top-25 companies
UREA MARKET PARTICIPATIONYear 2007, MeT
Engro20%
FFC60%
Daw ood10%
Others10%
Total 2007 Urea Offtake: 4.86 million MT
LOCATION MAP
Plant Site – Goth Machhi
FFBL, Bin Qasim
Plant Site - Mirpur Mathelo
Marketing H. O.
Corporate Head Office
4,030 MTPD
1,740 MTPD
INVESTMENTS
1982 Plant I, Goth Machhi 570,000 MTPY US$ 307 m
1992 DBN of Plant I 695,000 MTPY US$ 20 m
1993 635,000 MTPY US$ 317 m
1999 Fauji Fertilizer Bin Qasim
997,000 MTPY
US$ 460 m
2002 Acquisition of PSFL, Mirpur
Mathelo
574,000 MTPY
US$ 145 m
2008 PMP, Morocco 375,000 MTPY
US$ 200 m
2009 DBN of Plant III 718,000 MTPY
US$ 40 m
2008 DBN of FFBL 1,288,000 MTPY
US$ 75 m
2009 Wind Power 50 MW
Plant II, Goth Machhi
US$ 130 m
VALUE ADDITION•Value addition of Rs. 20.2 billion in 2007, Foreign exchange savings of US$ 807 million
Redistribution (million Rs., Year 2007)2,201
5,428
659
11,979
67Government astaxes
Provider of capital
Shahreholder asdividends
Employees asrenumeration
Retained with thebusiness
REVENUE GROWTH
-
5,000
10,000
15,000
20,000
25,000
30,000
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
milli
on R
s.
GROWTH IN INSTALLED UREA CAPACITY
0
500
1000
1500
2000
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
'00
0 M
etr
ic to
ns
FFC-1 DBN FFC-1 FFC-2 FFC-3
570,000695,000
1,904,000
1,330,000
FFC PRACTICES AND VALUESFollow highest business ethics and standard of conduct
Attain excellence in all areas of its operation
Ensure customer satisfaction through superior product quality and technical advice
Full compliance to occupational health & safety, and environmental standards
Continue to strive for improvement through:Coordinated effortsFeedbackTrainingEmployee motivation
SUCCESS FACTORSa. Optimal operation of plants to achieve
maximum production
b. Commitment to Safety
c. Emphasis on Human Resource Development
d. Highly motivated and dedicated teams
e. Technology & Engineering Capabilities
SUCCESS FACTORS
f. Effective Inventory Management System
g. Adequate Maintenance and Workshop Facilities
h. Inspection and plant audits
i. Plant Reliability Task Force
j. Quality Management System Implementation
k. Corporate Social Responsibility
ACQUISITION OF PSFL – A SUCCESS STORY
• Acquisition of Paksaudi Fertilizers, Mirpur Mathelo in 2002
• Due diligence by FFC professional team
• Areas in focus were
• Evaluation of maximum production potential
• Assessment of plant integrity & reliability
• Identification of potential for further improvement
PRE-ACQUISITION PERFORMANCEYearly Avg. Performance
Prod, MT
582,000
CF, % 105
SF, % 87
Sp. Energy, GCal/MT Urea
7.8
Product Quality
Moisture, % 0.46
Biuret, % 1.00
Fines, % 3.00
• Plant reliability• Capacity & Service factor• Product quality• High energy consumption • Safety and environmental
problems• Lack of standard
practices in Management, Operation and Maintenance
• Inadequate facilities• Administrative issues
MEASURES ADOPTED
• Technical skills and management practices implemented to bring plant at par with FFC standards
• Identified short-term and long-term measures to improve performance
• Investment plans
PERFORMANCE COMPARISON
Parameter Pre-Acquisition Average Post-Acquisition
Production, MeT 582,000 705,839
Capacity Factor, % 105.0 120.2
Service Factor, % 87.0 92.4
Specific Energy, Gcal/Met Urea
7.84 6.74
Moisture in urea product, %
0.46 0.35
Biuret in urea product, % 1.00 0.86
Fines, % 3.00 0.41
CONCLUSION
To be a successful manufacturing company, following areas need attention of entire organization with commitment and support from the top management:
• Commitment to safety
• Compliance to systems and procedures
• Human resources development
• Implementation of rigorous maintenance & inspection procedures
• Independent technical monitoring and audit
• Strong engineering and technical backup
Thank You
TOTAL FFC UREA PRODUCTION (MeT)ACTUAL VS DESIGN (1982-2007)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Actual Design
MTPD / (Load %)
Plant I 2,490 / (118.3%)
Plant II 2,368 / (123.0%)
Plant III 2,201 / (126.5%)
DAILY PRODUCTION RECORDS
PLANT ON-STREAM FACTORS
85
90
95
100
1997 1998 1999 2000 2001 2002 2003P lant I P lant I I Wor ldwide aver age
North America Europe
Source: Plant Surveys International, USA
PRODUCT QUALITY Top quality product
Chemical composition (46% N, Biuret, Moisture)
Physical properties (Prill size, hardness, etc.)
Regular monitoring and investment to keep our product quality ahead of the competition
COMMITMENT TO SAFETY
• Safety is exercised in all spheres of plant operation
• 15 awards of honor from National Safety Council (USA) since 1982.
• Two special safety awards on outstanding performance in 1989 and 1993 by the Council for constantly achieving outstanding performance in the field of safety.
• Other awards as well.
SAFETY AWARDS
Description Number of Awards Received
Award of Honor 15
First Place Award 5
Second Place Award 4
Award Of Merit 4
Perfect Award 2
Industry Leader Award 2
Outstanding Safety Award 2
HUMAN RESOURCE DEVELOPMENT
• Hiring at grassroots level to groom employees as per company needs
• Training • Apprenticeship Program: Graduates hired
and trained regularly. Only the best continue as company employees.
• Continuing Skill Improvement: Outside and in-house training on a variety of areas
• Cross Training: Effective employee training in different departments
TECHNICAL TRAINING CENTER
• Technical Training Centre is the only centre in Asia having a true replica of the Plant for providing training to the employees.
• Regular in-house training courses as well as for Pakistani industry.
• Fully equipped to impart training to employees and market its services to other clients from Pakistan and abroad
TECHNOLOGY & ENGINEERING DIVISIONContinuous monitoring and improvements of plant
operationsMajor role in expansion of FFC business by
implementing major modifications and new projects Debottlenecking of Plant I Plant II FFBL Plant III acquisition
Identify business diversification Wind Power
Close liaison with technology suppliers, other plants for knowledge sharing
QUALITY MANAGEMENT SYSTEM IMPLEMENTATION
• Routine audits by top-notch accreditation firms• Reaped significant dividends vis-à-vis quality
management system
1 ISO-9001:2000
Quality Management System, Certification by Bureau Veritas
Quality International
2 ISO 14001:1996 Environmental Management System
3 OHSAS
18001:1999
Occupational Health & Safety Assessment Series
CORPORATE SOCIAL RESPONSIBILITY
Hazrat Bilal Trust Hospital in Goth Machhi
Free medical camps in nearby villages
SONA Hospital at Mirpur Mathelo
• Free consultancy to local population (male and female doctors)
• Snake and dog bite cases, 24-hour emergency care
• Subsidized medicines and Lab facilities
Coronary care unit at Civil Hospital Mirpur Mathelo
CORPORATE SOCIAL RESPONSIBILITY - EDUCATION
• Scholarships for farmers’ children• higher secondary school and university
education throughout their tenures
• SONA Public School at a cost of Rs 33 million
• School adoption program (8 schools so far)
• Extend support to government high school having 1400 students
CORPORATE SOCIAL RESPONSIBILITY - ENVIRONMENT
• All emissions well within NEQS standards
• Continuous investment made by FFC
• Plant II is based on total recycle process
• Conversion of chromate based cooling water system to phosphate based
• Renewable energy