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Final report

Submitted to:

Mr. Bilal Javed

Submitted By:

Sufian Rasul (BBA-sp09-129)

Taimoor Raees (BBA-sp09-138)

M Imran (BBA-spo9-086)

Naveed Akbar (BBA-sp09-107)

Rao Farooq (BBa-sp09-114)

Department:

Management Sciences

Topic:

Descon Eng.Ltd

Comsats Institute of Information Technology Lahore

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TABLE OF CONTENTS

Dedication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..02
Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
Company,s Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .03
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .05
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 05
Joint Ventures
Presson Descon . . .. . . . . . . .. . . . . . . . . . . . . . . . .. . .. . .. . . .. . . .. . .. .. . .. . . .. .. . . .06
Olayan Descon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 07
Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 07
Project management system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 07
Objectives of project management system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
Corporate social responsibilty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
QHSE at Descon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
Culture and environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .09
Organization’s characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Core values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . 11
Organizational chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 11
Environment of organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . 12
Challenges they face . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 13
Span of control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

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DEDICATION

This report is dedicated to our Parents and Teachers who have inculcated an untiring faith in
us and have helped us in every aspect of life; including this report.

Acknowledgement

In the name of”ALLAH” the most beneficent and merciful who gave us strength and
knowledge to complete the report. This report is a part of our course “Management
Practices”. This has proved to be a great experience. This report is the combine effort of all
group members

We would like to gratitude to our teacher Mr.Bilal Javed who gave us this opportunity to
fulfill this report .we would like to thank our class fallow who participated in a focus group
session. They gave us many helpful comments which help us a lot in preparing our report.

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Descon Engineering Limited

Company Profile
Over the last three decades Descon has evolved into a multi-faceted Engineering and
Manufacturing concern and has further spawned a group of ventures with a diverse
activities portfolio: Project Management, EPC, Engineering, Manufacturing, Construction,
Maintenance, Software Development, Mining, Chemicals and Trading. While the group
companies operate independently under a corporate structure, Descon Engineering remains
the flagship company and provides the associated identity to its affiliates.

The company is unique in its resource base with in-house

capabilities for Design Engineering, Manufacturing, Construction
and Maintenance Services. These are applicable to a wide variety
of projects related to Industrial plants, Energy and Infrastructure
development for which services are provided selectively or on turnkey / EPC basis.

Project management expertise vested through sophisticated IT based systems is one of the
key elements in achieving successful culmination of projects. The company’s operations
span Pakistan, The UAE, Saudi Arabia, Qatar, Oman, Egypt and Afghanistan. Joint venture
partners and technology alliances include JGC Corporation - Japan, Enerflex Presson –
Canada, and Eckrohr Kessel – German.

All establishments are system oriented with ISO and OHSAS certifications and ASME
stamps. HSE achievements are reflected in the statistics with over 350 million man-hours of
work executed. Considerable investment is made in human resources focusing on
development of this vital asset.

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Descon is project-oriented and client-driven. Quality and HSE are taken as "value-adders"
and the company culture encourages teamwork and innovation. With all these attributes and
resources, the company is well placed to compete and succeed in the local as well as
international contracting arena while being recognized as a quality service provider and
manufacturer of capital equipment. The synergy between various business areas fuels
strategic growth by providing cost effective solutions

INTRODUCTION

Descon comes from combining the two words: DESign and CONstruction

Descon Engineering is a multi-dimensional engineering, construction and manufacturing

company operating in Pakistan and the Middle East. With over 450 million man-hours of
construction work executed in industrial and infrastructure projects, Descon employs over
34000 professionals and other personnel.

Descon Engineering Limited was set up in December 1977 to offer its services to industrial
plants for a large range of services including, engineering, construction & maintenance of
high value plants e.g. Oil Refineries, Gas Processing Plants, Fertilizer plants, Petrochemical
Plants, Cements Plants, Power Plants to name a few.

Over the years, the company has diversified rapidly into other areas e.g. manufacturing of
Plant and Equipment and Construction of Large Infrastructure Projects e.g. Dams,
Barrages, Motorway etc. Descon is also providing turnkey solutions to its clients in these
industrial sectors.

The company has also diversified into GCC countries and today it is recognized as the first
Pakistani Multinational Company operating under a professional management in Pakistan,
UAE, Qatar & KSA with a large multinational workforce of around 25,000 persons
comprising of around 30 nationalities.

Today, as we are heading towards industrialization and modernization, the need for skilled
work force has become pivotal and Descon Training Institute (DTI) is playing an important
role in the industry by producing trained and skilled work force.

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Statistical figures by the end of July 2008 show that DTI has passed out 5158 students fully
trained in their respective trades. Bulks of these students are employed by Descon for its
projects inside & outside Pakistan.

Locations:
Pakistan, United Arab Emirates, Qatar, Saudi Arabia, Kuwait

MANUFACTURING:
Descon’s manufacturing heritage dates back to the early 1980’s when a fabrication facility
was set up in Pakistan to cater for the growing industrial base. Today, Descon has
established itself as a leading supplier of process equipment to operating companies, global
EPC contractors and original equipment manufacturers (OEMs) worldwide.

Today Descon has six manufacturing facilities strategically located in the UAE, Saudi
Arabia and Pakistan to provide our valued customers with cost effective and swift
solutions. Our client base has grown to include the world’s leading owners/operators as
well as EPC companies from oil & gas, chemical & petrochemical, fertilizer and power
sectors.

The essence of our continuing excellence rests in our desire to achieve “Continued
Customer Satisfaction” providing our clients with comprehensive and integrated
engineering & manufacturing solutions that add value well beyond project execution.

Our manufacturing strength is complemented with global technological alliances for

specialized equipment. Integrated customized management systems ensure cross functional
monitoring of the processes and timely delivery of the goods. Use of the quality
management systems ensures quality at each step of planning, design, fabrication and
production. With our wide manufacturing base spanning from the west coast of Saudi
Arabia to the heartland of Pakistan we can play a key role as a leading supplier of process
plant equipment across the globe. The DEL promise stays valid regardless of which part of
the world a product is “Made by Descon” standard.

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Services:
EPC, Project Management, Engineering, Construction, Maintenance and Manufacturing

DESCON provides Engineering, Procurement & Construction (EPC) services. The

focused industrial sectors include but are not limited to Chemical / Petrochemical, Oil &
Gas, Fertilizer, Cement, Environmental, Infrastructure, Pharmaceutical, Food,
Agriculture, Energy and Power Plants.

Joint ventures

Presson Descon International (Pvt) Limited (PDIL) is an integrated

engineering, procurement, construction and commissioning (EPCC)
company; operating in the oil & gas industry.
PDIL is a strategic alliance of two leading companies Enerflex Systems Ltd., Canada and
Descon Engineering Ltd., Pakistan. Presson-Enerflex is the Production & Processing
Division of Enerflex Systems Ltd, a leading supplier of products and services to the global
oil & gas industry.

PDIL derives the strength of engineering and conceptual design from Presson-Enerflex;
fabrication and construction from Descon and blends it with the project management,
procurement and commissioning expertise of a qualified team of professionals to offer its
customers cutting edge technology and premium quality.

This is a joint venture with the Olayan Group and is located in Al-Jubail
Industrial City and Yanbu in the Kingdom of Saudi Arabia. This operation
comprises of both construction as well as manufacturing activities. The mechanical and
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E&I shop is well-equipped for manufacturing industrial plant equipment and also provides
refurbishment services to the petrochemical plants in the vicinity. The construction
portfolio covers general contracting and specialized operation & maintenance services.

Vision
 To become a world class engineering, manufacturing and construction company
operating internationally
 To bring the institute to world class standard in disseminating quality training and
meeting the company manpower requirements & gearing the economic growth of
the nation.

Mission
 "To provide our valued customers with cost effective and reliable solutions in
project implementation and be recognized as the leading manufacturer of high
quality equipment for plants."

OBJECTIVES

 To promote study & application of professional principles and practices in the field of
construction industry in line with the International Standards and practices.
 To disseminate training for technical advancement & technology, producing more
effective Work Force for the industry.
 To exchange and share knowledge, research, techniques, information and skills in the
field of construction and allied industries.
 To cooperate & collaborate with local and international institutions, bodies &
agencies having similar objectives, for the promotion and development of
Construction Industry in the country.
 To bring motivation, team spirit and efficiency among the trained Work Force

Purpose
 To bring prosperity and well being to our stake holders and society at large by
adding value through engineering, technology and management

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The complex nature of projects today needs effective management systems to ensure
completion of projects safely on time and within the budget. A professional approach
relying on IT based systems in which the company’s cumulative knowledge-base is vested,
ensures the well-being of the project from estimation stage up to completion on ground.
Descon has invested significantly in developing a system in the form of software modules
which are able to ‘talk’ to each other and together form an integrated project management
system. Our project managers are seasoned professionals who recognize the challenges and
dynamics associated with complex projects and have proven capabilities in executing fast-
track projects.

Concept of Project Management System

 Transformation of management processes to achieve flexibility and responsiveness by

effective deployment of IT solutions
 To have a conducive environment to fully utilize IT power
 To develop ability to anticipate and react to the changing business needs, to remain on
schedule and within the budgeted costs
 To facilitate end-point decision-making as well as effective monitoring at required
levels
 To ensure that plans are revised instantaneously and actions are taken on time.
 To assimilate the company’s business knowledge so that a generalist should be able to
perform as an expert.
 Data validation and control functions are performed within the System while
information is processed.
 Decision-making process of a human expert is emulated

Descon is committed to realization of its corporate social responsibility, through social

investment and to play a leading role within our spheres of influence. We will work
inexorably in achieving world-class standards of openness, transparency towards all our
stakeholders and serve the communities we operate in.

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Our vision is to become the most competitive and dynamic knowledge-based corporation in
the world, capable of sustainable economic growth and greater social cohesion.

Quality, Health, Safety and Environment (QHSE) at DESCON

We understand the value of human life and sustainable development for healthy growth of a
community. Descon’s QHSE program ensures these goals by exercising zero tolerance for
errors in the implementation of best Industrial QHSE practices. These are supplemented
with incentives, training, process control, and deployment of most effective time tested
quality Improvement tools.
Our strategy is built around plan, do, check and act (PDCA) and is reflected in our systems
appreciating following key elements:
 Provision of a framework for the setting of QHSE Goals and performance
objectives.
 Monitoring, evaluating and continually improving upon our QHSE performance
through operational standards, training, assessments and audits.
 Making customers, contractors, and business partners familiar with our QHSE system
and creating awareness on how their actions can influence QHSE performance.
 Making QHSE a part of all product development projects.
 Making ourselves, aware of the global industrial initiatives and collecting feedback
from our stakeholders for taking improvement initiatives.

All of our operations submit to certified integrated management systems, which include
ISO 9001, EN ISO 14001, and OHSAS 18001 and are run in accordance with national
safety Council guidelines

Culture & Environment

Our human resource has a diversity of skills, background, viewpoints and experiences from
around the world. We have over thirty five different nationalities working in our bench
strength. We hire only the best, based on merit, skills, abilities and desire to excel regardless
of race, color, religion, gender, national origin and any ethnic background. We encourage our
employees to maintain their work life balance. We give them the opportunities to spend

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quality time with their families by maintaining a stress free working schedule. We strongly
believe that giving maximum ease to our employees shapes up our corporate culture.

Following dimensions are involved in building DESCON’s culture:

DESCON possesses a strong culture, which is the result of concerted efforts of the
whole management team.

 Attention to detail is of paramount importance, for example, while designing, if

one forgets even a minute detail, this simple error could cause the design to be
unsuccessful and cause failure.
 The company is outcome oriented but the degree varies with the level of
employees. The junior employees must exhibit efforts as well as deliver outputs.
The senior employees must produce the result while it is not necessary for them to
contribute their efforts. The time to reach the results is also important. This factor
varies according to the different situations.
 Every project is performed on team basis. Teams are defined according to
departments.
 The company displays aggressiveness which shows that employees are more
competitive than cooperative. Individual desires reign over the company’s goals
attainment. Every employee wants to get promotion. The company is trying to
overcome this factor and has succeeded to some extent. The company is of the view
that to interact with employees in a good way to increase your strengths and to
decrease your weaknesses.
 Innovation, risk-taking and stability are also a part of DESCON’s culture
and are encouraged in order for them to flourish continuously.
 Innovative culture includes challenges and involvement, freedom, trust and
openness,idea time, conflict resolution, debates and risk-taking

 The customer-responsive culture includes:

a. “Customer” focused individuals
b. A structure with a low level of formalization (flexibility to deal with customers)
c. Empowerment

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d. Good listening skills

e. Role clarity

Organization’s Characteristics:
 Having permanent jobs
 Managers always make decisions
 Relatively homogeneous work force
 Work hours defined as 9-5
 Work at organizational facility during specific hours

Core Values:
DESCON has a set of core values that are maintained in the organization and serve
as an ethical basis for establishing employee ethics. Everyone must be fair and honest in
his dealings.
The core values are:
 Professionalism, ethics and integrity
 Quality and standards
 Growth
 Innovation and progress
 Loss prevention and safety
 Dignity and development of individuals
 Leadership and team work
 Candid and effective communication in an open environment
 Job satisfaction and enjoyment

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DESCON has a simple environment because there are few components.

Having not many pressure groups is an advantage for them.

The organization has five major stakeholders – employees, clients,

competitors,vendors and shareholders.

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EMPLOYEES
The employees are highly affected by organizational decisions because they have
to work in accordance with what the organization is demanding.

CLIENTS
The organization is having a customer-responsive culture; they are very much
concerned about their clients. The organization does as their clients demand.
What ever the design of a project should be; the organization has to perform
accordingly.

DESCON has two kinds of clients:

 Those who demand their projects to be completed on time.
 Those who want results and are not cost conscious

COMPETITORS
In Pakistan, DESCON doesn’t have any major competitors because it is one
of its kind and can be considered as the first Pakistani company competing
globally with other international companies.

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VENDORS
The company has improved its relationships with its vendors by fulfilling the
budgets.
As far as DESCON is concerned, it is having good relations with all its
stakeholders. They are having a good relationship with their competitors too
because they believe that the success of one company can benefit both the
companies growth. DESCON also believes that there should be more and
more competition so that quality work appears in Pakistan. All the relationships
are in the process of continual improvement.

CHALLENGES THEY FACE

They faced many challenges while going global.
 Technological
 Training
 Language

DESCON is using the geocentric attitude and facing different challenges, and as the time will
pass the company will be able to compete globally as a successful company.

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References
[1] Management Eighth Edition
Stephen P.Robbins, Mary Coulter
[2] www.jgc-descon.com.pk
[3] www.prenhall.com/robbins/
[4] JDL News, September 2006
[5] Broucher, JGC-DESCON ENGINEERING [PVT.] LTD.
September 2006

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