Operation Management In Pakistan Cables Limited

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Judging the value of a business, whether it is a large or small, is a difficult process. The firm's management, its shareholders, and its creditors are all concerned with monitoring the firm's operations and specially those related to its financial success. It's a small attempt to understand the concept of operation management covering the major aspects of it. I would like to thank my teacher Mr Hashim Irani who helped me out in preparing this assignment.


Pakistan Cables Limited is the country's oldest cables manufacturer engaged in manufacturing of wires and cables and other engineering products.

The Company was established in 1953 in collaboration with BICC, United Kingdom.

The Company manufactures General Wiring Cables in the range of 250/750 volts. These cables manufactured in conformity with national and international standards that provides safety and saving in electricity consumption because of the use of pure copper and cable grade PVC (Plastic Compound Vanile).

The Company provides overhead conductors to the utility companies WAPDA and KESC which are manufactured from EC grade Aluminum Rod and Copper Rod.

PCL also manufactures telephone, intercom, coaxial cables and various types of special cables which include air field lighting, control cables, etc.

Alum-Ex is the brand name under which Pakistan Cables manufactures aluminum sections for the construction and architectural industry.

PCL has also set up a plant to manufacture High Conductivity Oxygen Free 8mm Copper Rod.


To be the company of first choice for customers and partners for wires, cables and other engineering products market while retaining the options to participate in other profitable business.

To operate ethically while maximizing profit and satisfying customers' needs and stakeholders' interest. To operate ethically while maximizing profit and satisfying customers' needs and stakeholders' interest.

To assist in the socio-economic development of Pakistan by good corporate citizen.


Pakistan Cables is committed to strict adherence of the best practices contained in the Board of Directors of Pakistan Cables Limited.

The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company.

As a part of the Corporate Governance structure of Pakistan Cable ltd, there is a Board Audit Committee and a Board HR and Compensation Committee.


The economy of the country continues to remain sluggish. However, an encourage volume of orders were received during the 3rd quarter of March 2010 despite the slowdown and weak investment climate. The rapidly fluctuating prices of copper in the international market continue to be a cause of concern for the Company. The management of the Company will make all efforts and continue to maintain the momentum achieved in the previous two quarters by increasing volumes, improving productivity and control its costs vigorously in order to optimize profitability from operations.

Sales for the nine months period ended March 31, 2010 at Rs 72 billion is at par with last year's nine months sales. Higher sales during the current quarter mainly to trade and Utility Segments helped in offsetting the shortfall which had occurred during the first half of the year.

Selling and administration expenses for the nine months are Rs 140.6 million and are in line with last year's figure. Financial charges for the nine months are 115.0 million and are 37% lower than the same period last year. Strict control on working capital rates helped to reduce our financial charges.

The turnaround in operation and profitability which started from 2nd quarter, continued in the 3rd quarter as well, in which the company achieved a sale of Rs 0.98 billion and made a profit after tax of Rs 12.6 million. As a result, for the nine months, the loss after tax was reduced to Rs 7.4 million. As a result, for the nine months, the loss after tax was reduced to Rs 7.4 million compared to the loss after tax for the nine months last year was Rs 226 million.


In the subsequent five decades, Pakistan Cables has earned a reputation for itself as a market leader in the industry and as a company that does not compromise on quality. As a result, the company has gained a position as being the premier cable manufacturer in the country.

PCL focuses on reducing cost and time to improve financial results. The Company focuses on maximizing and satisfying customer's needs.

The production capacity of the plant cannot be determined as this depends on the relative proportions of the various types of aluminum sections and types and sizes of cables and wires produced.


The Company was incorporated in Pakistan as a private limited company in April 1953 and in 1955 it was converted into a public limited company into a public limited company in which year it also obtained a listing on the Karachi Stock Exchange. The Company is engaged in the manufacture of copper rods, wires, cables and conductors and aluminum profiles.

For quality management, PCL focuses on:




The Company is committed to achieve and enhance customer satisfaction by manufacturing products according to the relevant national or international standards and customer requirement.

First Cable Company in Pakistan....

• to be quoted on Karachi Stock Exchange (1953)


• to have a foreign technical collaboration (BICC)


• to introduce House Wiring Cable


• to introduce Aluminium Cables


• to introduce Armored Cables


• to have Cables tested in KEMA Labs Netherlands


• to introduce tested & approved MV XLPE Cable (1983)


• to be ISO 9002 Certified for cable manufacturing and marketing (1997)


• to be ISO 9001-2000 Certified cable & aluminum manufacturer (2000)


• to introduce LV XLPE Cables, fully certified by KEMA


• 1973

Top 25 Companies by the Karachi Stock Exchange


• 1980

Top 25 Companies by the Karachi Stock Exchange


• 1982

Corporate Excellence Award from Management Association of Pakistan (Awarded to the 6 Best Managed Companies)


• 1983

Corporate Excellence Award from Management Association of Pakistan  (Awarded to the 6 Best Managed Companies)


• 1998

Achievement Award for outstanding performance by the President of Pakistan


• 2004

Top 25 Companies by the Karachi Stock Exchange (Position number 25)


• 2005

Consumer Choice Award for Best Electrical Wires & Cables


• 2006

Top 25 Companies by the Karachi Stock Exchange (Position number 12)


• 2006

Consumer Choice Award for Best Electrical Wires & Cables


• 2007

Top 25 Companies by the Karachi Stock Exchange (Position number 6)


• 2006 & 2007

Best Corporate Report from ICAP & ICMAP


• 2007 & 2008

Brands of the Year Award in the following categories:


Pakistan Cables is committed to strive for product quality, excellent customer service, innovation and efficiencies. The Company reiterates its commitment to consistently deliver enhanced value to customers, through continual improvement of its product and processes. The quality management system of the Company continues to conform to ISO 9001:2000 across all departments of the Company as certified by BVQI, UK. . As Pakistan Cables is ISO 9002 certified company, all personnel are trained, motivated and instructed to fulfill all requirements laid down in the Quality Assurance Standard. Pakistan Cables has adequate resources essential to implement the quality system and to achieve its quality objectives as out lined in its Quality Policy. 

The maintenance of the quality management system is achieved through Internal Quality Audits. The main purpose of the Quality Audit is to take necessary corrective action to eliminate deviations and further improve the system. 

The Quality Control Programme for electrical cables at Pakistan Cables comprises of Receiving inspection and testing. In process inspection and testing and final Inspection and Testing Quality Raw Materials are procured from pre-qualified reputable sources world wide. The Company has a highly advanced Quality Assurance Laboratory which is equipped with the latest state of the art equipment and is manned by professional and skilled personnel who are engaged to check process variables in every step of the manufacturing process, to ensure that all our final products are in compliance with the relevant international specifications.  

As the objective of our Quality Process is to prevent any nonconformity, a considerable portion of inspection man hours are spent on the production floor where quality is build into the product. The responsibility of producing quality product lies with the Production Department. The finished cable is then subjected to tests as per standards. Pakistan Cables also maintain a complaint handling procedure which involves the Technical Manager, Works Manager, Marketing Director and Chief Executive. Each complaint is promptly investigated and corrective and preventive action taken. Pakistan Cables is the only cable manufacturer in Pakistan with medium and low voltage cables that have been accepted as world class following the type testing and certification of its products by KEMA high voltage laboratory in Netherlands.

Business Process Improvement and Development

Improvement in business processes is paramount for any industry to stay competitive in today's market place. Pakistan Cables is continuously engaged in business process re-engineering activities to optimize its activities and benefit from the technological advances in operational, technical and engineering functions. Current initiatives are underway that will improve efficiencies and excess wastages in the near future.

The Company has invested in a 2 MW gas fired tri-generation plant and a state of the art PVC Compounding plant.  These plants will ensure that the company has uninterrupted power supply and availability of key raw materials at lower input costs.

Information Technology

Pakistan Cables is actively pursuing its commitment towards modernization of its information technology and communication infrastructure & facilities. A project for broadband data connectivity with most of the branches has been started using WiMAX and DSL facility of a local ISP. This will give a faster network link between head office and branches.  Furthermore, Pakistan Cables has upgraded its head office and factory network backbone and has migrated to a fiber optic based technology.

A comprehensive plan has also been prepared for establishing a disaster recovery site.  Under this plan, backup of all data, IT Systems and services is stored at this site on real time basis to ensure availability of these services in case of any possible disaster that disrupts the central systems at the primary location


The performance of operating management of a firm, coupled with general economic conditions, is the primary determinant of the firm's value. The operation management is responsible for the production of the firm via the use of capital equipment such as machinery, production lines, etc.The performance of operating management is measured by the firm's profit, hence, it can be said that a firm's profitability greatly influence its value.

The company focuses on reducing cost and time to improve financial results. PCL focuses on maximizing and satisfying customer's needs. There are several departments working under PCL to produce the quality products. The Management is committed to develop quality product.

The company is engaged in the manufacture of copper rods, wires, cables and  


conductors and aluminum profiles,




 Pakistan Cables is achieved ISO 9001:2008 in December 2009 for all its products (Cables & Wires, Aluminum Sections, Copper Rod and PVC Compound). This achievement underlines Pakistan Cables' commitment to professionalism.

 Pakistan Cables uses the most sophisticated machinery, including automated weighing and dosing systems for each component of the various formulations. This plant also has a polymers laboratory to enable the development of customer specific formulations.  

Management relations with CBA are friendly and industrial peace prevails at all location.