Industrial Framework Full Book

Industrial Framework CPS 313 1
An Informational Guide
To
Industrial Framework
Structure, Community, Workspace
Operations, Management
Author
Eng. Moosa Naseer
Department of Chemical Engineering

University of Engineering and Technology, Lahore
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A Message from Author

(Eng. Moosa Naseer)
It is a known truth that today’s era is an era of a tough competition. Whether this
competition is related with the market placement or is related with a large production
sector. To survive, it has become necessary to gain something more what we called
the one step ahead. If a person knew hundred words, then other person who knew
one hundred and one words will win the battle of intelligence and knowledge. But
irrespective of having extra knowledge, it is better to have extra knowledge about
your own field of work. An engineer do not have to learn about the medical science
and a doctor do not have to learn about the engineering. A person who is studying
in a specific field must have maximum knowledge about his field. If, so, they he will
stand out most bright out of the competition of competitors.
Many students do not knew anything about industry, they only knew about some
short sentences and mnemonics. However, nobody knew the reality behind the
curtains of industrial walls, its background and our perception after a one month
internship. Therefore, this booklet has been written with a height of simplicity so
that even a rude and stubborn student who hate reading, takes a good interest in
diving into this industrial information sea. It is plagiarism attested and is based
purely on my analysis and observations including meetings with some experienced
and smart industrial workers. All the technical words for all discussions are
eliminated to make it extremely easy to understand. It also includes simple examples
related with daily life so reader could extend his mindset from the world of words to
the world of applications and limitations. Reality cannot be hidden if you want to
see. I hope that at the end, the reader will become almost expert junior industrialist
after reading this document. For making it less boring, only most important aspects
of all discussions are written with supreme simple language.
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Attested “No Plagiarism”

It has been certified that this document contains no
duplicate content and source contents are given credits
where they are used. This document is purely based on
observations and analysis of respective researcher. And
we are happy to sign a plagiarism challenge deed with
author which will be fulfilled if any kind of disperency or
plagiarism is detected.
Regards,
XYZ (Experienced Industrialist)
Author’s review:
I am fully assured that this document is free from any kind of plagiarism. I will be
guilty if any kind of duplication is found by reader. I hope that it will add a lot in
the knowledge of reader and will surely improve his technical sense about business
development in industrial sector.
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Table of Contents
1. Introduction to Industry
• Framework ………………………………………………... P#7
• Structure ………………………….................................... P#8
• Operations ………………………………………………... P#9
• Workspace ……………………………………………….... P#10
2. Strategic Design
• Estimations and Predictions …………………..................... P#11
• Assessments ……………………………………………….. P#15
3. Operation Framework
• Processing Department……………………………………….. P#16
• Production Department………………………………………. P#17-
• Quality and Assurance Department………………………….. P#17
• Safety Department……………………………………………. P#19
• Collaboration…………………………………………………. P#20
• Workers community………………………………………...... P#22
4. Business Administration
• Introduction to Business administration …………………….. P#22
• Business Finance…………………………………………….. P#24
• Accounting…………………………………………………… P#29
• Marketing…………………………………………………….. P#30
• Promotional activity………………………………………….. P#33
• Audit…………………………………………………………. P#36
• Stock market…………………………………………………. P#40
5. Resource Management
• HR Management………………………………………………. P#43
• Revenue management…………………………………….. …... P#45
• Raw material management…………….....……………………. P#48
6. Research and Development…………………………………………… P#49
7. Condition of Industrial sector of Pakistan……………………………. P#51
8. Industrial revolution bibliography……………………………………. P#53
9. Common questions and their answers………………………………... P#55
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PREFACE
It is always required that you have to eat those things, you fear to eat because they are not bad in
taste but they are unknown to you. This curiosity make you feel scary when you want to go out for
finding a settlement regime or workspace for you. So, it is necessary for most of us that are
involved in the field of engineering to have enough knowledge about basic industrial framework
so we can understand and withstand all the problems that can occur during a specified task in your
assisting job.
I am grateful to senior coworkers of industry to assist me in understanding these basics and making
me able to share this necessary and critical information with all fellows who desire to know such
kind of information. I am also thankful to my father who is an MBA which guided me in finance,
accounting and marketing field which were not in my knowledge before the writing time.
This booklet is purely based on observations and analysis, containing un-plagiarized opinions
written by author with the help of some assisting guideline providers. Only a few topics are taken
from a source book and notes with complete comprehension and analysis by author, because these
are very important to understand state economic parameters.
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Introduction to Industry
An industry is commonly defined as economic activity concerned with the processing of raw
materials and manufacture of goods in factories. In defining expression, it is combination of
different type of departments, processes, workers, units and consumers. Main objective of an
industry is to gain profit and fulfil the consumer demand of a subjective product. Industry is a type
of country unit that is directly related with the economy of a country and thus more industries a
country have, stronger its economy will be. Because it hire many worker and produce something
that is an ultimate necessity of life. Running of money is always better than storage in fine space
of bank lockup. Now, let’s begin with some basics of an Industrial system:
Framework:-
A Framework is combination of all work passages or units of an industry that are layered to give
industry a reason to survive in the world of product competition. For example, if you go out to buy
a shampoo, you ask the shopkeeper, how much money we have to pay, how much quality it have,
it is for hair fall, dandruff or strong hair. And maybe the shopkeeper only say it is sunsilk or clear,
you will not ask any other question and will pay any amount to purchase it. Why only a brand
name is enough? It’s all about the number of processes through which that product had undergone
and quality and price had been maintained in such a way that you can buy one time and will buy
again. All type of market distributions and consumption ratios vary with level of framework
implanted. So, I will define these important type of frameworks here:
Household framework:
In this type of framework, the all departments are only one or two persons who are associated with
production. In such frameworks, both working and production including marketing capacity is
limited. But the persons associated with production may have enough profit that can be saved
excluding expenses depending the daily time given to work.
Factory framework:
It is a slightly higher level of framework that may or may not have all departments but commonly
have one skilled person acting as a department. Such frameworks have optimum resources and can
make acceptable amount of profits for excess expenses excluding daily routine. Mainly, the
number of workers plays an important role in deciding how much benefits the factory owner
actually have because as a single department, a person can take away anything. Check, balance
and audit are nearly missing terms in this framework.
Pilot plant:
In this framework, a slightly higher level of area is covered and departments are available for better
and accurate control of production and processing workout. Most commonly a team unit is present
for a department to handle its necessary tasks. Check, balance and audit are present in this
framework. But production capacity is under 100 tons a day. So, it can only cover a city market
well.
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Immersive Plant:
In this framework, perfect level of control and departmental cooperation in production and
processing is available. Such units covers a wide area in kilometers and mostly have standard
levels of infrastructure and rules/regulations in both labor and process including standard
equipment’s. Management teams are always present which are most experienced in the respective
work field. It hires a huge amount of labor and add a lot in a country’s economy. Mostly they have
300 tons of production and have capacity to cover a country wide market.
Structure of Industry:
Maybe watching the buildings of an industry standing outside the housing is quite inspiring, it
always makes us curious, how actually a difference is maintained between such colorful eye
catching scenery, it is all the mindset of internees and mostly female gender who pay less attention
to anything else except the selfie caught with one of most beautiful doors of a building. The design
of not even a one building is like a house architecture. It is much technical and complex design
that need much experience to draw on AutoCAD for general approximations. Let us cover some
basic structural elements and rules that are needed to make a framework building:
Outlook and Instant View:

The very first thing, a guest sees when reach outside your house is the outlook and front design of
your house and then he can stimulate his brain to develop a feel of automation which reminds the
previous associations related with that overview. For example, when you will reach outside Lahore
fort, your mind will click that it is an old and rugged place. So, outlook of an industry is really
important to attract investors, visitors, standard customers and regulatory authorities. Therefore,
anyone can make his mindset ultra-cool when anyone reaches outside some big commercial marts
like Nestle dairy processing unit, Engro foods, Fauji fertilizer etc. Only a small scale factories do
not focuses on outlook view because they do not hire internees and in other words, they do not pay
heed on publicity dramas.
Security check:
Just imagine if your house door get knocked at 12:00 A.M in a dark rainy night, how you would
feel, it bit a frightening effect of a horror movie. In general, outside the world of our imaginations
that we made passing through detector machine, it is necessary to care the privacy of industry. Not
always and anytime, everyone is allowed to come. We should clear our mind that security check
is not for terrorists always, it’s for general privacy regulations of an industrial framework.
Therefore, most of times, visitors are not allowed to capture anything in their iPhone 7 like attitude
but Samsung like phones.
Roads and background:

Before starting, you do not have to imagine the roads of Paris whose nickname is Lahore. There is
no political intimacy present in general structure of an industrial framework. All type of roads are
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constructed with equal standard of quality. Not always applied for a pilot plant but an immersive
plant always try to follow maximum perfection in standards so their product could be sell in a
brand name package at higher cost. Trees and small green regions is a world standard that is always
followed. And with no exception, it adds beauty to the chromic colored buildings, the wandering
rules are always followed in multinational infrastructures. You can’t flow in any direction on road.
Follow the yellow path and signal, its good.
Buildings:
There are many types of buildings that designed in such a way so that specified process can be
carry out with no environmental disturbance and design should assist the passage of blow gases in
certain operations if hazardous chemical reactions are taking place. So, we can realize that the type
of process decides the type of building structure and trend is always followed with decoration and
cultivations to make workers feel that they are working in a spaceship of star wars movie. A hostel
is simple building always because humans live inside which are not hazardous like most chemical
processes but they are emotionally hazardous living organisms. Hostels have same environment
as most students observe in university but it is a highly mature and too simple. Most immersive
plants are always equipped with a mess that had a hunger rising foods in acceptable price, most
mess or food cafeteria maintains there budget separately with basic industrial account. Therefore,
we have to pay before or after eating. It should be kept in mind that most plants have two separate
firms, processing firm and administration firm. Processing firms are outside the city following the
general city and regional planning rules, safety section. Administration offices are present inside
city to manage the accounts, debt, revenue and sales. It’s obvious that you can’t control your
business sitting outside the market. Resumes are also processed through the administration offices.
In the analytical sense, the process building should be that much large so all the required
equipment’s can reside inside it. Processing section must be water proofed so roofs are pillared or
guarded. Mainframe control system is used to change a single input into multiple outputs. All
processing variables and flow streams are controlled through this control room. Storage room have
separate building from where transportation is carried out.
Industrial Operations:
Unit Operations:
In chemical engineering and related fields, a unit task is a fundamental advance in a procedure.
Unit operations include a physical change or concoction change, for example, partition,
crystallization, dissipation, filtration, polymerization, isomerization, and different responses. For
instance, in drain handling, homogenization, purification, and bundling are every unit tasks which
are associated with make the general procedure. A procedure may require numerous unit tasks to
get the modified item from the beginning materials, or feedstock.
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Mechanical Operations:
It is type of operation which is purely related with the machines and equipment’s including
piping’s and sensory devices. It is not possible to implant a machine in the processing section
which works continuously without undergoing aging effects. Stainless steel is used commonly in
heat treated process but its grains are delocalized after certain level of thermal stressing. So,
maintenance and repairing is required. In severe cases under corrosive reactions or components,
replacement of machine parts is necessary. It is the most critical mechanical operation but it is
commonly carried out after one year. Daily based mechanical operations include physical
component modification units like separator, evaporator etc. In a nutshell, mechanical operations
involve no chemical reaction or binding.
Management Operations:
These are type of relations that include supervisions and defragmentation which means rearranging
scattered task pieces. It is a high level responsibility. A manager of a specific section is generally
responsible for all types of happenings good or bad. And also have a responsibility to fix any error
or permit anyone to fix an error which is a specialist. For example, production management is
related with managing the amount of product produced from the process function and their quality
and safe storage. But in reality a manager do not have to supervise anything, he sits in office,
collects information from undertaken workers and signed as if he has done everything, not always
it happens, such scenario is mostly in the business management, in processing section, all managers
work together because process supervision is a critical task and million dollars depends on it.
Distribution Operations:
When it came to understanding, it tells you that you can make a product in a processing equipment
but you can’t produce its legs so that it runs into the market itself. There always need to transport
that productive material outside after making a marketing strategy based on zones, divisions,
courses etc. So, a separate operation is implanted to ensure continuous running of product in
market so more product can be added to the storage inventory without risks. This operation do not
have any mechanical or chemical work station, its pure physiological work station. Distribution
sector knew where is maximum need of that product, how to deal with the competitive
environment, and manage profit/loss debts and sales.
Workspace:
It is a bit unique piece of delicious thing to learn. Firstly, a workspace is defined as space where a
work can be carried out. For example, workspace of Photoshop panel is the interface full of tools
in front of you.
Generally, all the walls, doors, equipment’s and devices are not for routine working. If you saw a
equipment taking out steam so when you go near it, you will feel suffocating and you say, “Please!
Control that thing”. But in reality there is no variable in control application that can lessen that
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steam. Because heat released in process is carried out by condenser, no control over there. It should
be understood that even a highly decorated plant cannot always control every bit of chemical
disruptions taking place in equipment’s. Larger the capacity to handle input, more will be reduced
control over all tidbits of a process. In a small scale processing, control is also not accurate because
they do not have that much money to expend on it. However, if same standard machinery is used
for smaller capacity, control and handling becomes précised and optimized.
Generally, we see most of workers sitting in a room, staring at liquid crystal displays, they are
called process engineer. Their duty is to supervise and control and to take step in case of any
breakdown, error or suspicious observation. Production workers watches the product coming out
from machine and writes yield ratio first and secondary calculations afterwards. After product is
cleaned from unconverted or less converted raw input. It is sent to storage section. The storage
officer or manager notes down the amount of product entering in storage room and leaving from
there, sometimes daily excluding quality and control judgments and credentials that are managed
afterwards. Then it is packed into a attractive packing and sent to marketing department so they
can transport based on rules and strategy. A truck driver is not allowed to take that product
anywhere upon his own will.
Accounting administration records the transported and sales ratios including profit/loss during
distribution. In order to prevent audit errors, sometimes a company have a single base account on
which he can take a loan from a bank on a registered project. According to general rules, even the
CEO and general managers are not allowed to mess with administration’s base account.
Strategic Design:
Estimations and Predictions:
Everything needs a plan, not necessarily a master plan which means you can rule over the market.
But a general plan is needed for even smaller tasks, projects to management and administration.
For example, if you are working in the processing sector and you are given a task to provide
optimum controlling parameters for increasing the process efficiency, you have to make a strategy
that how to maintain the linkage between new variables and process counters. And how to translate
I into professional and technical language that can inspire the jury. And time and resources
management which is also a most important part of this game plan. But all such kind of plots need
some kind of possibility map to comprehend whether they are going into right direction or they
are going to a wrong direction instead. And how better it is to jump from one track to other.
A strategy always needs a soul which should lead you towards a peace of mind and assurance. So,
estimations and predictions both are necessary to judge a project’s well-being.
Estimations defines the directional interpretation of resources and their usage. In simple words,
“How to proceed”? While on the other hand, predictions defines the probability of events that can
come out as result of a specific direction taken. So, it helps us to think again and again and satisfy
the team with which we are taking part in that particular project. Therefore, we need to get
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knowledge about how the estimations and predictions are combined with the strategy to carry out
a project in a successful way.
We can divide strategic improvisation in two sects:
Implantation strategy:
Decision of type of plant:
It is the first and foremost discussion that takes place when an investor having a lot of money met
with the industrial think tanks to decide whether we have to build a sugar plant or a sugar cane
plant. In common cases, it ends up with the investor’s desire to choose the type of plant he want
to implant and the industrial men estimates whether investor’s budget is satisfying the resources
required for implantation of his desired plant or not. If yes, it is good. If no, then industrial men
need to satisfy investor about his broken desire by telling him about the predictions of this step
that the plant will have low production and quality in underspecified budget provided.
Decision of plant location:

The next meeting is based on the plant location decision for the implantation. It always comes up
with great level of experienced industrial workers including owners sitting there. It all the
investor’s desire of location same as type that has to be fulfilled under certain grants and
limitations. But again any estimated great opinion is of splendid worth. One could might say, “Oh!
We have to plant near Sheikhupura road because it has a worth of complete industrial sector and
market expenses are lower as compared to other cities because market is near and environmental
atmosphere is distant away from highly populated and social areas. But in common cases the final
decision is always made on investor’s will.
Decision of plant area:

The next important topic of discussion is how much area should be undertaken for chosen
industrial implantation. According to general rules, more the area, better is the standard and
overview of a plant. But it is common sense rule that you will need a lot of extra money to buy
more feet square land area in a commercial sector. Residence sector has comparatively low land
area price. So, again after a lot of thinking, the investor made his mind to buy land after cutting all
implantation budget he have. Land construction and remake costs are also separated because most
commonly industries are planted in rural and muddy land part which is available in low cost. All
these are deficit management strategies.
Decision about construction and architecture:

The next important meeting of investor party is with architecture and construction specialists. Now
I have used the word investor party instead of investor because after above discussed implantation
necessities, most investors realize that they can’t do it alone so they signs a deed or contract with
friend or known parties which are maybe in some kind of industrial business or are freshmen like
them. Architecture of buildings along with roads and regional construction is the most expensive
part of structural design which is essential in all aspect of framework. Internal and external
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decoration of buildings along with size and shape is not extremely important but depends on budget
provided. However, most of the investors knew about the importance of decorated and attractive
building because beauty is worth but hearth for most of heartbroken candidates.
Decision about equipment installation:

Now after the all structural phenomenon took place over the land, the next discussion is to import
the equipment, devices, machinery etc. Because Pakistan has no mechanical industry in it. In
common cases, parts of a machine like auto motives are imported and assembled under a brand
name of Pakistan with a little sentence of half-truth, “Made in Pakistan”. Most of the companies
in Pakistan which not a branch of an international authorities, passes the loan from a national bank
with an account and on the other day, change the registered project ownership and pay some black
money to bank managers to remove that loan undertaking. It was common and is other topic of
discussion, not necessary here.
In standard rulebook, the equipment mapping takes place during construction of
process/production building. Because large capacity equipment’s are huge and need different cuts
and troughs in internal building structure. So, that the equipment’s, devices and electrical system
is implanted without any complexities in the development process.
Decision about control system topology:

After the implantation of machinery in correct processing order, super/mainframe computer
system is implanted to control reactions which depends on intensity and sensitivity of flow streams
and control variables. All variables are generic functions based on the conditional and bi-
conditional statements, in ancient times, it was done password secured commands but now
application handles it more accurately and safely with low possibilities of outcome errors.
Operational Strategy:
Above, we have discussed the strategy to build a plant. Now, in this section, we will talk about
strategy needs for operation during daily plant running and some important events. There are many
types of operations that are discussed earlier in operations section, therefore, we will get insight of
estimations and predictions in operation workout.
Initiation planning:
After completing the all construction and architectural necessities, the next important step is to
initiate the process. First equipment’s are placed in definite order combining all chemical and
physical processes in series. This step strongly depends on the type of process that needs to take
place, intensity of control in intensive state control required (means temperature and pressure etc.)
and pipelines scaling.
The processing section is first surveyed by expert engineers before running, so that not even a
single error lefts in physical and logical aspect that disturbs the operation afterwards. In modern
era, all the equipment’s are controlled by automatic and software controlled system. Batch
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processes are only feasible for low level processing with lower amount of production and
marketing propulsion. To start a chemical plant, the plant administration always need someone
who can understand, judge and control a process without any hesitation. So, first of all, some HR
managers are hired that have a degree and experience in human resource management. And they
can handle all issues related human workers if they are well trained. HR managers have duty to
fulfill the requirements of human workers, so they have to set a merit or standard on which skilled
and determined workers could be hired. Grade points assessment and little experience is must to
excel anywhere in the field. So, after completing all these requirements, a plants gets ready to take
a flight.
Processing routine strategy:

This topic seems to have good worth but in reality, no strategy is required for daily routine work.
Because all the devices and machines are system controlled and are set on the best possible input
for a sharp delivery point achievement. Nothing could be changed except the sudden errors caused
by some external disturbance maybe environment related or some errors concerned with labor
negligence. So, during daily work, only supervision is required so engineers are daily present in
two shifts in the processing sector during a continuous operation. Because in case of small errors,
millions of dollar are at stake. So, administration of an industrial framework always follow that
golden rule, “Prevention is better than cure”. So they do not feel anything bad in hiring a lot of
good engineers having good technical mind level.
Product marketing strategy:

After coming to product marketing discussion from processing routine, we all will think that there
should be a discussion on production strategy. But production strategy is only the processing
strategy will addition of handling and storage responsibility. Therefore, it was skipped. So, coming
to the major topic which is product marketing and distribution strategy, one should think about
that why a commercial is displayed with female tonic to attract customers. It is sure that it is
necessary for the survival of the product in the competitive market. But if someone have never
listen about your product from anyone known in good words, your product is not going to be sell
out. So, for product marketing, it is necessary to attract the customers with publicity plans, media
and television is easiest but expensive way in this regard. But not so much expensive for a million
dollar industrial framework.
The quality is most important parameter in this regard, if a product has an excellent quality. It will
be sold out with a lightning speed. So we can imagine why most of the daily routine working is
actively taking place in quality and assurance department. Thereby, we can derive a general logical
statement from above text that more will the quality of the product, lesser will be the competition
faced by it in the market. Zones are also important, a big industry cannot sell its product in a rural
and under developed area because people cannot pay for it. And industry do not want to get any
getting in loss irrespective of a major marketing crisis.
Cost of product is an easy way to conquer market but with sacrificing a lot of profit. But it is used
in two ways, if a product has a fine quality but people don’t buy saying this unique piece of good
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is bit expensive. So, either you have to lower its relative price comparing with the product of same
kind famous in market. So, consumers will better think to give that product a try.
Colorful packing always remains in sheer focus in marketing division since the birth the industry.
Captivating packing attracts the consumers and they are forced to buy it if some beautiful lady is
sleeping outside product covering. It is against ethics to place a female photo on a product but who
cares when it comes against the extra profit. Money is living and money is life. When you have
money, the world follows you and when you have nothing, the world have no time for you. So, an
industry can throw out any worker irrespective of his devotion and skills if it do not have any
beneficial concern with him. It is called the professionalism which lacks all emotional senses. It is
not bad in all cases but it only makes a worker an expressionless machine.
Assessments:
After understanding all the strategies defined above, it is necessary to manipulate the out comings
of a destined strategic plan. However, it is simpler to understand in other cases where the input is
directly dependent on the output. And thus the outcome is same for which our mindset is prepared.
But industrial working and processing is not as simple as it looks when we go out for one day visit.
So, a backup plan should be prepared as secondary steps in case of any undesired or unknown
happening negating the processing efficiency and thus wasting a considerable amount of extra
money. It is easy to understand that even not a single device is cheap in the industrial framework.
A backup plan also is not very easy to make because of two reasons, one is it requires some extra
time which should be managed from daily routine. Second is to know the undesired causes that
can make an error. So, an extra strategy called the assessment plan is made to check the weak
points of a process or application limitations. Sometimes it becomes difficult for command control
to handle two or more variables simultaneously, however, system are the best updated if implanted
following the standard rules and regulations. So, it is best option to understand the systematic
handling of a process at all possible variables and surrounding. Such type of assessment can be
carried out in three ways:
Direct Assessment:
In direct assessment, the maximum relations between all possible inputs and outputs are made
through the processing function which depends on type and quality of product needed at the outlet
of machine. Then, the sensitive relations are noted down and the possible solutions are discussed
and researched to prevent an undesired loss.
Indirect Assessment:
In this type of assessment, the relations are not made but old breakdowns and errors that occurs in
the past are under consideration. It saves a lot of a time and prepare the mind to fight with undesired
outcomes with better and approved technique and methodology. Because the firm that have faced
that issue in past have researched and resolved the issue by making an intensive level 360 degree
research so even one point maybe looking unimportant might not be missed. So, it adds accurate
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level of advanced backup to working system and the systems can be modified to handle the issue
and solve it automatically. Again, Prevention is better than cure and always it is. Who want to
throw his million dollars in the deep sea? Answer is nobody wants to.
Manual Assessment:
It is unauthorized type of assessment that is carried out on a permitted rules by quality and
assurance department. Sometimes, research and development department also participate in such
kind of assessment activity. It is rare and used in some processing plants in which caution level of
hazardous reactions take place. So, assessment becomes extremely important and thus more deep
level of knowledge and backup is required because loss could be extreme and sometimes it can
engulf the lives of labor and engineers working there. We can google through some of most
dangerous events happened in past. After the Crosby Texas, chemical explosion, it is a necessary
policy to be added in all major firms in which some kind of chemical reactions are taking place.
Operational Framework:
We have discussed earlier that what are the basic operations and how they are carried out in an
industrial framework. But we do not have discussed the major components or sectors that makes
an operational sector. Operational sector includes the departments and communities that are
involved in making the conversion of raw material into desired product possible. We will get
insight of production sector only under this topic because administration, management and
marketing is a discussion of completely different theme and they should be presented separately.
So, major department division in production sector of an industry is defined below, but it is a
general overview. Any industry can have less or more departments based on their necessities and
process controlling parameters.
Processing department:
It is another management department that is responsible for how raw materials came and managed
and drawn into the process equipment. We will discuss about it later in resource management
section. The duty of processing department is to carry out the required process. It looks really
simple when you are sitting on a chair and watching how raw components are oscillating between
different moving parts of equipment or non-moving parts. But it is not that much simple, however
daily routine tasking in this department is tough. Because a process engineers who are the major
ingredients of this department have to stare at system displays continuously. Not so easy again it
is not a movie or a game on which these engineers have to focus. It is the controlling parameters
and conditions that are under complete and deep supervision. Sometimes, you can draw out your
focus because you are human not a machine. And focus limit of an intelligent engineer is one hour
because intelligent people cannot survive in thinking about only one thing too long. It is approved
psychological sense of a normal human being. But freshly hired engineers are not given any critical
responsibility in this department. They only learn to watch what their seniors are doing and
controlling on that display. Remember supervision is most important work and not the controlling
which is extremely critical and is automated on conditional functions or statements that system
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proceeds. For example, the system has input to enter 200kg acrylic resin and 100 kg binder at one
cycle, so you cannot change it without having enough knowledge but any researched and good
advice is always listen in a good way by senior workers. No change only supervision is basic job
and it is important.
Production department:
It sounds like something same as the processing sector. But processing sector is only responsible
for carrying out process or chemical reaction in best efficient way, not for what is coming out and
how to handle and manage that out coming material.
It is the duty of production department to handle the product. And manage it so that it can be stored
in a safe way. The responsibility is moderate and is more important if the environmental conditions
can disturb the product quality. So, in such environment, production manager have to be alerted.
It is good to know that the production department do not have engineering section, it includes
management section. Some big firms hire some production engineer but they do not have anything
to do with engineering in reality. They are always responsible for managing the product coming
out from the end point of working equipment. It is easiest job to do in processing department if
compared with other fields of work.
Technical View on Production management:

To understand the technical side, imagine you have started a business, you have one machine,
reasonable production that you can handle yourself. But as the business starts to grow, you cannot
handle the product yourself and you will start getting a lot of complaints and a downgrading
productivity curve on presentation screen. So, a reasonable amount of production managers are
hired that do the task to sustain the productivity. The major aim is to fulfil both sale and job orders.
For this purpose, they use scale cloud software, it is powerful technology have six work options to
control productivity, cost, orders, selling zones, storage, transportation necessities estimation and
that’s all. For more information, search the scale cloud software on internet for better
comprehension of it. However, interface is tabular due to data distribution and scale setting ease.
But it can be used as a blank spreadsheet on which required calculations are drawn by a unit
coordinates bars.
Quality and assurance department:

After the production department manages the product, the successive necessity is ensure and judge
whether the product that came out meets the standard or not. It is an essential responsibility and
require devices, knowledge and experts that can check the product quality in best way that can be
used. The quality tests are completely different for all industries depends on chemical and physical
nature of product and its behavior in different conditions.
In analytical view, the test conducted for judging the quality of a specific product depends on its
application. For example, if a paint industry have to assess the quality of emulsion, he have to
check its quality by pasting it onto a wall and passing it through different levels of moisture,
seasoning, temperature and pressure values. If it has a standard quality then it will behave as a
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standard in application. It is awkward then you start testing an emulsion by placing it in water,
application surface is wall, it should be kept strongly in mind.
After a test is succeeded and result is positive, the product is sent to the packing sector. And if the
result is negative, not only you have to throw out that tested material that you have to do in both
cases but important is to modify that process that is producing wrong quality product or maybe
some ignored parameters are causing that error or that sample becomes defected when it is brought
due to some undesired test additions. You have to check another sample again to ensure error
because modifying a programmed process is very tough job. But if again the test results are
negative, then modification have to take place or disturbing factors must be deleted from process
or handling operation. Sometimes, processing environment is poisonous for product quality. So
environment have to be maintained or process have to be optimized.
Technical view on quality assurance:

Let’s defines how quality and assurance department do this quality assurance service. The journey
of quality assurance begins with the idea of inspection which defines that deep inspection is enough
for excellent quality assurance. However as the development is made in this field, the statistical
process control strategy was used as an ideal technique to reduce variability in the quality control.
In the mid of 18th century, total quality management and total process management terminologies
which means to take control of all incoming sets of quality levels. After a lot of struggle due to
some analysis bugs in TPM and TQM, six sigma technique was presented by Hammer. Also,
quality circles and just in time methodology was also introduced by Ishikawa and Crosby. Zero
defects that assures maximum quality limit achieved by a process and business process re-
engineering which means to re-modify the process or major process variables.
Before 2000, six sigma and lean was separate quality assurance methodologies but afterwards both
were united to take a form called as lean sigma technology. Lean ideology boosts up the optimized
flow of product quality from the customer point of view.
Six Sigma is a systematic approach to process improvement. However, it involves the use of
statistical tools and techniques to analyze and improve process. The statistical balance oscillates
between an upper specification limit and lower specification limits. For information, in traditional
view, the focus was only on product or output but input was not taken under focus which was a
wrong perception. Because if you add good ingredient’s in a recipe, it will be definitely tasty. Six
sigma can be applied to an process, however a difference is available, for example, for design
applications we use design for six sigma, for manufacturing applications (Operational six sigma),
for administrative and service applications (Transactional six sigma) is used. Sigma in
mathematics defines the standard deviation or possibility of variation from idealized output set.
We cannot eliminate errors but can minimize it.
Six Sigma’s Technical view:

Normal distribution histogram have a target y line where all readings should coincide. If a product
in behaving as one sigma, then 68% quality is estimated. If product is behaving as two sigma, then
95% quality is estimated. If process is behaving as three sigma distribution then 99% quality is
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estimated. Three sigma scaling also means 2700 defectives per million. But it defines probability,
not reality, it is what can be come out from the process machine. More the sigma distributions,
more will be quality of product. Distribution means lowering the sigma value, so smaller the value
of sigma, smaller will be variation or deviation, higher will be product quality. This is power of
six sigma, because this scaling reduces the predicted variation and improves the quality assurance.
Remember, this test do not defines quality but it defines prediction of accuracy in quality test
results. Also, if a six sigma distribution is present over a period on a wide range of test samples,
there exists a probability of 1.5 sigma shift.
Defect Rates:
Let’s understand it using defect rate, for example if a process have 10 steps and each step has a
three sigma quality level which defines 93% yield. The probability of success at each step will be
93%. The probability of overall success will be 0.93^10 which is 0.50. So overall process yield
will be 50.08% which means 499200 defects per million.
If same process is behaving as six sigma, then overall process yield using same statistical
calculations will be 99.99% means 34 defects per million.
DMAIC Improvement Process:

First we defines a opportunity or variable say x, then we identify Key y’s (outputs) which is called
measurement, then we analyze critical input variables that produces a specified impact on output,
then we optimize x variable (input) to get a maximum possible output with particular sigma phase.
Then we control the optimized variable to sustain that optimized input variable state.
Note:
Many readers will find it difficult to understand the concept of sigma because they do not knew
the base of standard deviation. Please read standard deviation topic in a good statistics book and
watch a comprehensive video on YouTube. It needs some graphical and visual things for
explanation here, otherwise I would have done it with ease. Examples will help better to understand
this concept.
Safety Department:
It is a known fact that safety is everything, whether it is related to life or investment. And we knew
that in a chemical process industry, we have to face many toxic counters. It is not a complete
overview that safety is only necessary under the chemical exposure. It is even important when you
might ignore its importance. For instance, water is not dangerous but the water stream coming
from a 1000 horse power motor is quite dangerous. Therefore, every type of industry is equipped
with the all safety plans and backups. And maybe working in any sector, we got a small boring
sessions of safety training by some certified safety inspectors. But they are doing it for you. Also,
we can see red lines near huge noisy machines that are working on input. As, if you go too near
them, we get can any physical damage. Safety is defined in many forms, one is environmental
safety, second is labour safety, and third is the budget safety.
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All these three branches of safety focus are purely inter related. Environment safety is related with
two major type of environments, inner process environment and outer process environment. First
type is concerned with the safety measures that should be implemented regarding the health of
process equipment and field workers. So, either the process is handled in more or less a closed
path or usage of less health hazardous components should be promoted, so exposure of reacting
components to process environment is reduced and consequently, field workers health do not
undergo any negative effects because workers are pillars of industry and its responsibility of
industrial administration to take every essential step in ensuring good health and complete peace
of mind of field workers. However, it can add some little amount to resource budget but health is
wealth. In many workspaces of an industrial framework, it is known truth that some extra
expenditure on safety gives a good reward and too minor loss that accountants calculates to be
occur on monthly process budget. Because a healthy worker can produce a healthy product.
Collaboration:
Is computer control advancement is replacing any job opportunity?
The question is not very complicated as it is made by computer science degree holders and software
engineers. Not it is pretty much straight as we store in our hypothalamus memory. It might have
been a simplest question if we have Japanese robot technology which have many programmed
senses. But good news is that the answer of this question is simply “no” in Pakistan. We should be
extremely thankful to our mechatronics engineers who have only made a quadcopter by assembling
only chipsets and wires since half century and till now everyone is copy pasting this project in
different number of fan blades count. We have no robots indeed.
And it is known truth that a computer cannot operate itself and have any sense or capability of
input comprehension. It is the human who have programmed the computer logics into its own
language and compiled all the logics, inputs and outputs into an application which is able to meet
a work standard but not even a field worker. A computer needs at least one operator for its specified
operations. For accurate multitasking, more operators are required. But we are always lag behind
in one simple common sense thing, a car driver can drive a truck but a truck driver cannot drive
an aero plane. A software engineer knew how to make an application but he needs a map for it,
and so he is incomplete without the knowledge of the field for which he is designing that
application. Therefore, an industry cannot hire a software engineer for process control but a
chemical engineer who know a lot of meaning of process control variables and their adjustments
can be hired by industry if they need him with more trust. So, keep in mind that if hundreds of
people say one thing true and one say it wrong. According to mathematical induction rules, there
are equal chances that both of the groups can be wrong or both of the groups can be true. So, due
to this toxic misconceptions, many chemical engineers lose their interest in their field.
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Need of Collaboration:
It was necessary to give insight to every reader that machines are not the essence of every industrial
work field. But workers are the true essence. So, after discussing all the process frames, we have
to develop a sense of connection as experienced by a process interface command while working
in the processing department.
First of all, team building skills is the definition of collaboration. Just imagine if you are engaged
in any project, small or big that depends only on perception type, no project is small because your
team has to pay your precious learning time on it. It is the viewpoint of almost all the industrialist
that the completely failed worker is the one who do not listen anyone and think that he knew
everything. No one can get all the knowledge this planet earth have and no one as a result is perfect.
But if the scientist and great inventors had never thought about perfection. We might have been
living in the ancient tech world in true words. And the second most failed persons in industrial
work stations are those who wants maximum money in minimum time, said by almost all
industrialists. So, complete summary of all these advices are that it is better to improve team
working skills than to show off an taking selfies sitting on a worker chair, not knowing even one
word about what industry is and why they need you there. It is not my sentence like previous one,
it is the answer of one of most technical industrialist I ever met, on my question about fresher
entrance resume building methodology in summer. Not disgracing anyone but adding one
important message to your information bank, it is not the resume that inspires any hirer and not it
is the experience that do so, it is the skills you got from that experience which actually do the
magic, it was also the common answer of many human resource managers.
It is complex to understand by most readers that why these advices are included in the collaboration
discussion. Answer is that the collaboration is related with humans, I have explained first and
humans are related with their attitudes and behavior and this relation makes a collaboration linkage
and develops a team. So, our mindset is responsible for all our doings, communications and
meetings. So, collaboration is incomplete if a student have broken images about the work field of
real world. Talent, skill and good conduct behavior is not the bookish things most of teachers,
parents, entrepreneurs and motivational speakers talk about. These qualities are proven mark of
success in every field in every era.
Now, I need to throw some light on how collaboration in industry is different from the university
collaboration. The industrial collaboration is purely a professional side of all the aspects of team
tasking. It means that subtract the emotional and relationship attachments from the whole team
work plan rule book. Involving in any teamwork in an industry, we have to forget all relations like
you have two persons in the project who have as single girlfriend but during the project, they have
to behave like they are unite ignoring all emotional headaches. However, they can even fight in
hand to hand combat after the project is completed or they are not in any project meeting or tasking.
In a nutshell, your complete focus should the goal you have to achieve in the project not any other
private dealing and interpersonal contentions like I am little sad today we will work tomorrow. No
space for such things, you have to complete your work today.
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Community:
A community is defined as a system formed by interaction of surrounding non-living things and
the living things residing there. The community of an industrial framework is same as the
community of some colorful societies of different universities. But the difference of living and
interaction attitudes is like sky and earth difference. It should be important to mention here, the
society ticket on which many of university students brag is only a soulless piece of memory. Only
in very rare cases, these are teaching something you in form of some extracurricular projects.
According to an industrialist, the noise of communication skills is not that much clear as it sounds
good to hear. Even an illiterate knew how to communicate. As, he communicates daily with his
family members, his field members etc. But advance form of communication skills that an industry
needs is quite different from our totally wrong perception. The real communication skills means
that you can talk with everyone in the way, they think you are the industry. Think around a little
on it and you will get the most of the answers but how? The answer again is if you keep talking
daily with the people having same mind level, same age, same mentality, same personalities and
same problems. It is exposure, not the communication skill. The best answer from an industrialist
was if you are a manager, and you can communicate with a worker in such a way that he thinks
you are a manager and if you are a worker, and you communicate with a fellow worker in such a
way that he thinks you are a worker. Then, you have a truly inspiring set of communication skills.
Now, it can be understood from above discussion that how an industrial community and
communication is different from university community. However, a person with a higher job rank
never treats his undertaken workers as slaves. The behavior and environment of all type of meeting
is quite peaceful without any commandment errors that can mostly occur due to bad conduct issues
of senior workers with the junior staff. Even the security guard feels confident standing outside
the main gate of industry, because no one tells him or try to tell him that he is only a security guard.
Business Administration:
It is the topic which is not that much vast as thought by most of us. But choice of accurate plans
of application in different type of work domains is the discussion of business. Administration
department is not the king of all the industrial rounds. But it plays the major part in running the
plant with adequate amount of ground resources and trade resources. It is all about the management
of all resources available mainly the cost effectiveness of the product and budget optimization of
production department. It needs years to get a degree in business administration but in reality it
needs only a comprehensive experience to understand the base realities. It will be difficult to
understand quickly the business sector. Therefore, we will start with a little story written by me
that will give you a strong impression of business administration.
A boy with a blue shirt:

Once a boy whose name was jimmy lives in the town of Los Angles. The boy was belonged to a
poor family. His father was a clerk in the central bank of America. The boy was very intelligent
but he left study because his family was big and resources were limited. One day, he visited a
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garments shop, he was inspired to see the hustle and bustle in that shop and he likes a blue shirt
but it was too expensive to buy. He got a desire to plant his own garment factory and when he told
his father about his desire. His father smiled and said nothing. Jimmy was a determined boy, he
started to observe the different businesses present there. And devote himself to make an analysis
that how a business is actually get started. He came to the result that he need resources and money
to buy a place and furnish it. Because he understood that more beautiful the decoration of selling
zone, more the profit he can accommodate. He got an idea to use his old garage, so he cleaned it
and decorated it using all of his pocket money. The next thing he needed was the garment material
that he could sell. But he was short in budget. He meet a garment factory worker and told him his
problem. He gave him 5 pieces of T-shirts. And ask him to sell it. And from the money, he will
give him 2% commission. Jimmy became happy and agreed the contract. Jimmy was confused that
how he could initiate his sale because he did not have a very diverse and colorful display to attract
customers. He thought that he should follow the door selling. He sell that five pieces within 1 hour.
The factory worker was impressed and gave him 10 pieces. He sell these within 5 hours. After it,
jimmy asked him to display many clothes of his factory on his homemade garage shop and he will
sell them on commission. The worker agreed and give him 100 pieces. He then visited that shop
and bought that blue shirt. The shopkeeper asked that how he get enough money because he was
poor. He smiled and stepped back from there. It continues and after a one year, jimmy was the
owner of a beautiful brand “coloro”. His father and shopkeeper still remembered that blue shirt
which makes a boy to accept a challenge and complete it with passion and determination.
Is story missing some business strategy overview needed for main topic?
Answer is yes now. The story has been told to clear the mindset of most of the students that we
need a big amount of money for business startup. This mindset is missing one most important thing
that big amount is not necessary for startup but it is necessary for proper setup. However if you
start to earn 10 rupee daily from investing 5 rupee and increases your investment 1 rupee per day.
It will make you earning from 10 rupee to 20 and so on. But this strategy is not so quick to work.
Everything takes time but hasty are always the most failed people of the life. And those who think
everything in a negative frame of reference. If you think, you cannot do, you will never do and
will waste all the precious time of your power age (18y-30y) in thinking that your luck is bad or
others makes a business setup by using black way of earning. Black way of earning is, however,
the wish of all young people of Pakistan because it is quick. But its devastating effects are long
lasting and will always pay its debt at the end of one’s business career. So, continuous progress is
a wonderful strategy to work with.
Industrial Business administration:

Encourage yourself to encounter the world of challenges and you will never lose because everyone
is dependent on someone both in dealings and business. This dependence makes a necessity chain
that links many people of single domain into an industrial framework of multiple domains but a
single output focus that is the product.
A subject incorporated for the judgment policy is the availability of the resources. It is not very
difficult to understand that if you do not have the raw material and labor, it will be impossible to
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make a product of desire and spread it into a point market. So, first priority of an industrial project
manager after the complete construction design implementation is to manage the raw material and
labor. For raw material, industry has to contract with the famous resource providers of interest
because a large quantity of raw material is required for large production plan and large profit
stances. For labor, first industry have to hire some human resource managers, because they knew
how to manage a specific worker for a specific field. And the management of salary packages for
each specified level of worker is decided on the basis of possible profit ratios excluding
government taxes, production losses and operational cost backups. So, we can imagine that a larger
and more famous firm will have more eye catching salary packages indeed.
After the management of these all the basic elemental resources. The business administration team
of industry which is hired by industrial project manager at first of all make an estimation strategy
to understand how much time, the production unit will take to payback the capital plant cost.
Therefore, profit ratios are made higher so that all type of investments make a smooth return. It is
common sense thing that it will take tens of years to assure complete return. But administration of
industrial firm knew the truth that it is better to get one billion rupees income than to store hundred
trillion rupees. So, administration’s policy marks a checkpoint profit that must be achieved per
year so that running of plant including all the expenditures is possible without any contentions.
For this purpose, all the costs are charted down and net profit ratios are predicted.
From all above discussion, we came to the endpoint, that business administration of an industrial
firm have the responsibility to manage all type of resources, policies, profit/loss ratios, and
revenues which will be discussed later. And it is frontal command of every industrial firm. Without
business administrations, the industry can definitely produce something, but its operation will
cease gradually because no one will be present to supervise and handle what is required and how
to meet that requirement.
The major sections of work assembly of business administration are:
Business Finance:
Think of any business, ponder over the basic requirements to start it. First thing that comes to mind
is the finance and capital. Finance is what that lies in the roots if every business whether it is
multinational organization or small retail shop besides your home.
Finance is the basic determinant of most business decisions. It lies at the base of every decision
making process.
According to the C.A Deter:
“All those activities which have to do with the provision and management of funds for the
satisfactory conduct of business.”
According to George Terry:
“Finance consist of providing and utilizing the money, capital, rights, credits and funds of any kind
which are employed in the operation of an enterprise (entry level firm).”
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According to Kris and Dagger:

“Business finance is the flow of capital and credit that makes business possible”
Constituents of Finance:
The three basic constituents of finance are explained below:
1. Public Finance:
It is purely government activity. You know that the government has to incur
huge expenditure. These expenditures are incurred on defense, purchase of weapon, maintaining
law and order, judiciary, running various social advices department including health care, housing
etc. To finance all these projects government collects revenue through taxes on public. These taxes
in turn are of various types and kinds, and their basic aim is the same i.e. to raise finance for the
needs of the government income tax, property tax, Freight duties, sales tax etc. are examples of
taxes that are imposed to finance government requirements. In case of budget deficit borrowing is
made from both the internal and external sources.
2. Investment Finance:
Corporate companies, multinational projects, trade groups are always in need of
huge amount of finance as compared to partnership or sole. Majority partnership of the finance is
raised by selling securities and ordinary shares. Loans are also taken from banks or other financial
institutions to meet the occasional shortage of capital. The growth of multinational organizations
in the last decade owes a great to this investment finance. Not only the selling of shares help in
accumulating extraordinarily huge finance. It also allows a vast majority of people to share the
monetary profits of the company over its whole life. Investment finance does not restrict to national
or geographical limits. A business man in Pakistan can invest in any USA based company through
Wall Street Stock exchange. The stock exchange system will be explained afterwards. Similarly,
a US resident can invest in Pakistan as well.
3. Business Finance:
Business finance means the capital fund required for meeting the
organization’s financial requirements. Business finance is the most common element in sole
proprietorship concerns, partnerships and companies running all around the economy. It can
be raised from owner’s own funds and from borrowed funds. The requirement of the amount
of business finance may change depending on size of organization. A small concern might be
wholly based on business finance raised from their own sources or through friends and relatives
as they require small amount of business finance. A company on the other hand requires huge
amount of business finance and might collect it from their own sources and / or from
borrowing. Business finance is perhaps the most widely used component of finance. It can be
raised through both institutional and non-institutional sources. Institutional resources includes
banks, specialized credit institutions, investment companies. Non-institutional sources
includes friends, relatives etc.
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Types of Business Finance:

1. Fixed Capital:
Fixed capital, in simple terms, means a finance which is invested in a fixed
asset (infrastructure necessities). Fixed capital is a long term finance and this is one of the
essential requirements of the business. For example, when a company starts a business, the
fixed capital is needed for the purchase of building, machinery, plant, vehicles etc. These assets
once purchased remain in the use of business for a longer period of time.
2. Circulating/Working Capital:
In simple words, circulating/working capital is the finance that is invested
in current assets of the business. Such finance is needed to fulfil every day running
requirements of business. Examples include finance for raw material purchase, advertising
expense, repairs of plant etc.
Factors affecting fixed and working capital requirements:

• Greater fixed and working capital will be required for large scale business.
• For capital intensive business larger fixed and working capital is required while in case
of labor intensive business lesser fixed and working capital is needed.
• Larger fixed and working capital is compulsory in a business which requires
automation.
• The trading concerns normally require lesser capital in comparison with manufacturing
concerns as the operating cycle of manufacturing concerns is lengthy as compared to a
trading concern.
• The greater the involvement of business risk, the larger will be the working capital
required to cope up with such risks.
• If the organization is involved in multiple strategic business activities then it will
require more fixed and working capital.
• Larger fixed capital will be required to purchase fixed assets on cash while less capital
will be required if organization avails the facility of leasing (Payment divisions).
• If the organization sells on cash then less working capital will be needed while credit
sales require more capital.
Sources of business finance:

The three types will be explained below, but subparts will not be explained due to the concern that
reader might not have a deep terminal knowledge, but important terms will be explained:
1. Short term finance:

It is needed to fulfil the current needs of business. The current needs may
include payment of taxes, salaries or wages, repair expenses, payment to creditor etc. The need
for short term finance arises because sales revenues and purchase payments are not perfectly
27
same at all the time. Sometimes sales can be low as compared to purchases. Further sales may
be on credit while purchases are on cash. So, short term finance is needed to match these
disequilibrium.
Sources of short term finance are
• Bank Overdraft (Under which client can raw certain sum of money over and above his
original account balance)
• Bill discounting (It provides cash to the holder if the bill which can be used to finance
immediate needs)
• Advances from customers (These are received for the confirmation of orders and can
be used as a source of finance operations)
• Installment Purchase (Deferred payments are used as a source of financing small
expenses which are to be paid immediately)
• Bill of Lading (It is a legal document that guarantees a loan taken from banks and that
loan can be used as finance)
• Financial Institutions (Cooperation of society, firms etc.)
Trade Credit:
It is the usual practice of a businessman to buy raw material, store and spares on credit. Such
transactions result in increasing accounts payable of the business which are paid after a certain
time period. Goods are sold on cash and payment is made after 30, 60 or 90 days. This allows
freedom to businessmen in meeting financial difficulties.
2. Medium Term finance:

This finance is required to meet the medium term (1-5 years) requirements of the business. Such
finances are basically required for the balancing, modernization and replacement of machinery and
plant. These are also needed for re-engineering of the organization. They aid the management in
completing medium term capital projects within planned time.
Following are the sources of medium term finance:
• Commercial Banks (They provides reasonable amount of loans)
• Hire Purchase (It means buying on installments with some interest)
• Debentures and TFCs (Debenture is acknowledgment of loan from company. It can be of
any duration depends on agreement and the debenture holder enjoys return at fixed rate of
interest while under Islamic rules, debentures are replaced by TFCs, “Term finance
certificates”)
• Insurance companies ( Such firm have a large pool of finance due to their attractive policy
and can fund a good finance package depending on agreement)
3. Long Term Finance:

Long term finances are those that are required on permanent basis or for more than
five years tenure. They are basically desired to meet structural changes in business or fir heavy
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modernization expenses. These are also needed to initiate a new business plan or for a long term
development projects.
Following are its sources:
• Equity shares (Share investments and public generation of capital base of finance but it is
amount which can be paid back only when company is being wounded up)
• Retained Earnings (These are reserves which are generated from the excess profits. In times
of need, they can be used to finance the business project. This is also called ploughing back
of profits)
• Leasing ( With the help of leasing, new equipment can be acquired without any heavy
outflow of cash, details will be in separate topic)
• Financial institutions
• Debentures
Major essential terminologies in business finance are following:
Equity Finance:
For a science student, available definitions are bit complex to understand. So, by translating in
simpler sentences, an equity is related with the owner or main investor of firm itself. The finance
provided by owner of business project itself is called equity finance in which external sources of
finance are not present. It is hard level to achieve because high amount of taxes, income audits will
be triggered by equity finance holder. So, external sources are more favorable to use because a
finance loan taken from a bank have no income tax and audit wandering on it.
Debt Finance:
In this type, debts or loans are taken from a local or central bank. Most of banks take at least 6%
interest on it. But Islamic banking system strongly prohibit this interest known as Riba. These
debts have to be paid using installment system or corner profit agreements etc.
Liability is also a term used to define such type of financing but it defines extent of dependence of
a business firm on external sources of finance.
Leasing:
Without using complex sentences, leasing is a hire purchase agreement in its soul. Legally, a lease
contract is not a sale of the object, but rather a sale of the usufruct (the right to use the object) for
a specified period of time. Under leasing there are two parties, one is owner or lessor of the asset
and other is the lessee or the party that takes the assets on lease. The lessee takes the asset for use
for a specified period of time and makes rental payments.
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Types of Leasing:
Finance Leasing:
In this type of leasing, if a party hires an asset from a lessor or owner and if the lessee pays the
complete amount of purchase on installments at any specified time, he will become owner of that
asset. Until then he have to pay some debt amount. It is pure hire purchase agreement.
Operational Leasing:
In this type of leasing, if a party hires an asset from a lessor or owner, the lessee have to pay
commission on productivity of that machine on monthly installments. The lessee can never
become owner of that asset if his installment reaches the purchase amount. It is like buying a house
on rent whose debts never ends until you leave that house.
Types of leasing contracts:

Close end leasing contract:
In simple language, if you take a car from a company at lease in 7 lac rupees. And at the return
agreement date, the price becomes 6.8 lac. You have to pay 20,000 rupees to car owner. It depends
on the change in asset amount over period. Contract amount also have to be paid. But if car price
increases to 7.2 lac, owner have to pay you 20,000. It is little benefit bonus but rare because owner
used to know this game play very well.
Open end leasing contract:

It is independent of change in asset amount over period. You have to only pay the contract amount.
Accounting:
Accounting is a simple term which to relate in all analogies to an account. An account is a secured
space accommodated for official money storage and money can be added and drawn from it
according to banking policies and rules made by central bank or individual banking systems. So,
the accounting is defined as the account management, many other definitions are available in
books. But it is simply the management of accounts. And this management is related with
collecting the account data, arranging it in a database and summarizing the transactions of money
through for any specified need or purpose. Accounting in business is double fold responsibility.
Because an accountant have to manage all ingoing and outgoing transactions. And have to report
the feasibility of each specified transaction for a specified purpose.
A company may have many bank accounts in which money from a firm is deposited. Whether it
is the account of chief executive officer or it is the account of a general manager, the transactions
related with monthly resource budget, expenditures, losses, activities need a special attention
because the survival of an industry depends upon that budget and small fluctuations and corruption
spots can cause a considerable damage to productivity and market health of an industry. Excluding
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Pakistan where no one follows the rules, the most basic rule is that an industrial firm must have a
separate administrative account from where transactions of business dealings and resource
purchase including labor wages have to be managed. So, general managers, chief executive
officers, assistant managers, chief accountants do not play any side game with finance and industry
does not have to face any negative budget impact or bad reputation charges during the FBR or
audit department’s inspection or some kind of complaint of a firm worker. Account management
is a sensitive responsibility because a cat have to ignore the fish that is always in its hand. Greed
can prevail at any time. So, an account management strategy initiate with development of check
and balance system that is interconnected with the administration’s eye so every approved
transaction whether ingoing or outgoing proceeds through all the executive members of
administration and satisfactory purchase or investment of that money might take place.
Most of times, in case of any default, the accountant have to become guilty if even he is a victim
of any type of conspiracy, he have to pay the debt by losing his job. And in worst scenarios, it
becomes a police case. But most business firms try to prevent any police cases owing to the risk
of bad reputation threats.
Now, we start discussion about how an accountant do his job. Before starting, it has to be
remembered that predictions and estimations have nothing to do with the accountant’s job,
strategic estimations and predictions are the tasks of finance manager. For example, if production
unit have estimated loss of several thousand rupee due to process efficiency. An account have
nothing to play with it. He have duty to record what is being done with resources or how much
amount of money is to be passed for a reality purpose. Some strategies are available and some are
made due to advancement in this field but in Pakistan, no such interference is present between
what we may have and what we have? An accountant can work with a excel spreadsheet to store
values of data for all transactions and sale/purchase. He also have duty to calculate profit/loss ratio
coming from the sales market. And also he have to record the monthly finance dealings including
the capital costs, operational costs, income taxes, sales taxes and commercial taxes etc.
The work of an accountant becomes a bit more complex when finance is being managed from
some kind of external sources, institutions or banks. Then certain calculations of liability or assets
must be included in record. The major procedure of money transaction done by an accountant is
usually in the form of a voucher. A voucher must have the signature of the managing director or
finance manager. Then a check is issued having certain amount of worth which has to be devote
in some business dealing or resource management purpose.
Marketing sector:
Human Resource Marketing:
Lying down on the bed and thinking about your unemployment is one of the biggest nightmares
of human life. However, it would be simple to understand if you are unknown to an employer, you
will be unknown to best wishes or best chances to get settled. You have to present yourself into
different covers in front of different firms providing different work options to you. Again, It is
simple to understand, you have to go out and adjust yourself into the environment of struggle, but
remember if one firm do not have any human worker necessity, there are thousands of firms that
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would need you but you are away from their eyes so anyone who is near to employer at that time
of need would be hired by them. Many of us have listen this proverb, “He has low grade points
and experience but he is adjusted” But we do not want to understand the underground realities.
For example, you need a worker for your workspace immediately because workspace is feeling a
workload tension. Then anyone who have a degree in that specified work station will be hired by
you. Neither it is first come and first get policy nor it is give money and take job policy. If an
industrial firm has a processing unit vacancy, it will purely follow merit base policy. If there are
administration and other unit vacancies are available, it may be possible that someone’s nephew
is ready to avail that chance before even you enter in that gloomy interview room.
You will be confused now and many questions would be clicking in mind that Why it is or May
be it is wrong? Reason is simple that industry have no blood relations, it all follows on its own
self-benefits. If someone is referring his nephew, son, daughter etc. The decision of selection will
be based on the advantage of that step or at least minimum or no advantage but no disadvantage
policy is confirmed. And we can also imagine a carpenter could not be hired as barber due to
reference in processing unit because both can cut. The cutting technique, resources, and application
material is different. So, processing is quite of different nature and your all the investing amount
will be burnt down to ashes if even a slight mistake will happen due to unavailability of accurate
and polished knowledge and skill level. But in administration field, only managers, directors and
assistant managers play the full and final role. And other junior staff members only follow the
rules, orders and work methodology which is quite easier than working as process engineer or
safety manager or quality and assurance manager or researcher and developer.
In final words, nourish and optimize your skills, and devote yourself in searching chances and
options instead of sitting in your home and discouraging your junior students by telling them that
there are no jobs. In darker side, many will leave study like an option and will run after CSS exam
greed which is like a prize bond only.
Product Marketing:
After understanding the human resource marketing in realistic and simple language behind
complex professional language of authors, the next step is to understand the product marketing. I
have used a sentence somewhere above in strategy topic that a product has no legs so it will run
away in the market itself.
A product firstly needs a transportation support which is accompanied by a hundred of truck
drivers and trucks based on capacity of production unit. Just imagine if all the products in the
market are present in a white color packet with product name, company name, processing unit
address and trademark logo, no one will buy anything but only in crucial necessity. Because it is
the colorful and press printed packing and covers that attract customers and thus creates a
competition in a market because if Olpers is present then Milkpak is also a choice to buy. Also,
we should remember that milk product marketing do not have to compete with the mineral water
marketing because both are products of different daily routine application and of purely different
nature. There will be competition of a product in a market whenever there are large number of
same products type is present in market zones.
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A competitive market strength needs a strategy to sell the product with a required balance in overall
profit ratio. So, a weapon is used for this purpose is a bit costly but it can boost up the sale up to
many times of incident market coverage. That weapon is known as advertisement and promotion.
It needs a bit explanation so we will discuss it afterward. It attracts consumers towards a product
and thus can also provide an application quality test at true level of application.
Market zones is the most important thing that be understood when reading the marketing sector
strategies. Although, a word is used called segmentations which replaces a larger cluster, the zone.
However, a market zone is somehow different from a market segment.
A market zone is a division of feasible and non-feasible selling zones. It will be easy to understand
from an example that if an industry have a product like a synthetic milk like tarang, Olpers etc. the
feasible market zone for this product will be rustic and artificial living style of city areas. On the
other hand, the non-feasible market zone for this product will be the village areas where almost
every house have a buffalo and they only drink pure and natural milk that is why they are far more
healthy and strong than us.
It is important to understand that every nutritional fact written on the back side of food product
packet is not always true. Processing unit may have time, resources to check it but food authorities
cannot check its nutritional properties accurately. So, most of the times, industry takes a slight
advantage and consumers suffers on heath aspect of its life. And one important thing is the
difference between quality and nutritional facts, a product have excellent quality without having
excellent nutritional facts and a product can have excellent nutritional facts without having
excellent quality. Nutritional facts defines the inner ingredients of a product and quality defines
how efficient and safe it is for application, how much germ free it is if food product is under
discussion.
We are slight diverted from our main topic but it was important to mention that facts there, for
defining, behind the scenes marketing strategies based on lies. The next important thing is market
segments, market segments are different from market zones because they deal with working
sectors of life. For example, I have a detergent powder product and I am making a relation between
all the market segments and product type or quality. I will need a high caustic ratio for industrial
segment selling because they use it in large mixers and molders cleaning purpose. But I have to
make a low caustic and high sulphonic acid (black oil) ratio product for household uses. Similarly,
for selling detergent at service stations, I need to replace the sulphonic acid (black oil) with soda
ash contents because service station worker have an extremely sensitive hand due to a long lasting
water usage on daily bases. So, there are many types of product but if we do not have a lot of
resources or we cannot manage too much types of product at a time. We need to subtract the lowest
selling market segment here which is definitely service stations here. Because they are not
everywhere and usage is minimal. Like 5-10 kg per week application. As a result, market
segmentation strategy is more immersed in the processing unit. Therefore, we might imagine the
three different types of products from a paint industry like emulsions, water paints and weather
resistant paints and in reality they need same processing but a different components combination
ratios and sometimes addition of some additives and some kind of change in controlling parameters
like temperature, pressure, mixing time and mixing revolutions etc.
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The second last vast topic of discussion which is mostly studied in the form of a 3-credit hour
course or in form of books by BS marketing students is consumer behavior judgment. The
customer behavior is extremely complex to understand because a customers can derive hundreds
of attitudes towards a product based on hundreds of psychological behaviors available on all living
standards. But one thing is always common whether it is related with underdeveloped area, fully
developed, rich community and poor community area. That common thing is reaction or response
under product application. We can divide consumer behavior in many type of responses which is
more accurate to study and comprehend. The two response divisions are positive and negative
responses. After understanding whether consumer is behaving positively or negatively towards a
product, the next step is the advisory or convincing strategy to be used to turn that negative attitude
into a positive attitude. Media and promotional activities do this job like a charm. But it will be
discussed more deeply later in promotional activity discussion. There are many reasons of change
in attitudes maybe, someone who had a positive opinion changes his mind towards a negative
opinion about our product. So, we need to discuss environmental factors also.
Environment of a market subgroups i.e. housing socities, mohalla etc. is largely depends on the
literacy ratio of that area. More the rate of literacy is, more the quality and convincing factors we
have to use in product marketing. Sometimes, if we convinces a family about a product but
relatives are not convinced, then relatives will add negative impact on the consumer family and
they will leave the product consumption after a limited time. So, we have to convince a subgroup
in order to build strong productive response there. It is also done by promotional activities.
Marketing in behavioral analysis needs a one additional strategy to remember which is not given
much importance by marketing and sales managers. That is appearance based strategy, commonly
called the cuckold strategy. Instead of diving in the complex words used in definition of this
strategy. Let’s understand it by using a simple example only, if a person wants to sell his product
to a lower middle class shopkeeper, he do not need to be suited booted. However, it is better to
dress like that shopkeeper to convince him by boosting his self-respect. If a person wants to sell
his product to a doctor or an engineer, he need to be suited booted for a standard patch up and self-
respect gain for marketing assistant himself. It is also called emotional grip, however, if you are
not true, it’s a deceiving wrong way of selling. So, it is a bone of contention and many questions
arises and keep on arising without getting appropriate answer. Therefore, it is not liked by most
marketing degree holders.
Promotional Activities:
Conditional factors:
In a market, there is always a rush and hustle bustle of same kind of products, sometimes of same
quality. So, a seller is always confused that how a consumer will buy his product in that type of
market. It is very common so it has been remained as an issue since 19th century. Now, studies and
researches have completed understood the human phycology. And a complete course is made
known as “promotional activities needed in the competitive marketing”. So, a promotional activity
is only essential for the competitive marketing. If you have a product that is only made by you and
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it has some kind of application needs. Then, everyone will buy it even it is good or bad. But another
point of view is, if there are many kinds of same products available in market, but quality
difference is present. Then, the quality seller do not have any promotional expenditures. However,
one more important thing should be remembered that even if you have a high quality product but
definitely it will be expensive, it is not going to sell in under-developed and poor communities at
any costs whether you start to sell that product free at initial. They will not buy it afterwards
because even if they started to like it, they can’t buy it due to limitation of resources of such
residents and they go for low quality and low cost product even if they do not like it. Therefore,
many small factories using poor standard of process and raw components and without colorful
packing have a good monthly sale and income because everyone can buy such product without
having a high monthly expense budget. So, these are some conditions in which promotional
methodologies are useless, otherwise all of struggles will cease to desperation only.
Type of strategies:
Media War:
“Media is dangerous” This quote is commonly used by most of the politicians and unfaithful
people. But media is not itself good or bad, it is like an instrument which can be good or bad
depends on its usage. If someone spreads good information through media, then he is propagating
the positive perspective of media. On the other hand, if someone is spreading bad or violent
information through media, then he is propagating the negative perspective of media.
In competitive marketing, marketing team takes the help of media to fight against other product of
different industrial firm. There are two ways in which media marketing is done, first is
advertisement that defines the quality of product and application advantages of product but do not
use relative effectiveness clash points. Such advertisement is completely effective if either no
product of same kind and application is present or no advertisement of same kind is present on
media. Also the quality matters a lot, if quality is far better in reality, then there is no need to target
any product. Lies are common in marketing business or lie is the soul of marketing strategy in
Pakistan. The second kind of advertisement is bit kind of undesired one in most cases, but in a
strong competitive market, rivalry leads to the publication of such advertisements in which some
of wrong points or lags of opposition product is gripped and advantages over that target product is
defined in terms of others lags, however, predator may also lagging but thanks to presence of lies
that can do any magic and can create anything which is not most of time real. But we are attracted
towards such advertisements because beautiful females are present in that advertisement that
captivates a male consumer sensually and he is mentally attracted to the product due to sideways
gender propulsion trauma. Like recently on TV, Jazz and Ufone have a lot of such kind of
advertisements due to competitive rivalry. But in most cases, it is due to self-respect of your
workers and firm, you have to counter others mischief in a better way. And it should be kept in
mind that only those firms that have a strong competition in market in market are opted or
compelled to such kind of strategy to win the upper hand in the market
And also advertisement can be spread based on two regimes, domestic advertisement and
commercial advertisement. Domestic advertisement is not so much costly because they are not
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displayed on a high rated television channels and may be used for any kind of personal or private
use in product marketing. Commercial marketing advertisement are expensive and a high rated
television channel is given the task to display it at a high cost of several million rupees.
In this modern era of 21th century, websites are also used for commercial marketing. The most
powerful platform is Facebook which takes some amount in dollars and permits you to display you
product advertisement in any edited version. For this purpose, adobe Photoshop is used worldwide,
therefore this software has a high price but pirated versions are also available for use. In short, not
all famous websites use advertisement tool to get money, only middle class or poor websites use
it because it gives a good return. But most famous website do not use this tool because it can cause
a slight damage in the website’s reputation and health or sometimes SEO search engine. But google
ad sense is accurate for use if needed without any cons.
Door to Door selling:

It is old and ineffective in this modern era if compared to media advertisement. In this kind of
promotion, a temporary hired marketing team is given a task to complete a specified product
marketing in a specific area, cluster or zone. So, for a complete city coverage, a lot of marketing
teams should hired and a good time limit and resources must have given to each team depending
upon area given to it, for completion of this promotion workout. It was more costly than even it
was effective. However only some kind of products like female privacy use products was best sold
in this promotion strategy because most were shy at that time to buy such products outside. But in
today’s era, most females get enough confident to buy such products from shopkeeper without
fear. Fear is not really necessary because such products are for their health not for anything else.
Also, in northern and tribal areas, residents do not allow anyone to visit their homes. And also in
city, most people do not want to permit any stranger to come in their home. So, this strategy is
useless nowadays.
Discount offers:
Sale! Sale! Sale! Buy one and get one free. You have sawn this sentence on many posters and
advertisements mostly in fast food restaurants. It is best kind of promotional strategy which is
extremely effective nowadays. But it is based on lies in famous garment brands, where price tag
2200 rupee only is cut and 1600 rupee downward is written with 20% discount. But in reality that
product have same cost value in the entire market of same kind. But female brain becomes dim in
shopping sector if a shoe is available anywhere in 500 rupee, this creature will not buy it. But if
somewhere same kind and color of shoe is present 600 rupee with 50% discount like Bata, Service
etc. they will buy. So, discount offers can be deceiving in most cases of a running business firm.
But on the other hand, a new sparrow in the market have to use discount offer activity in a true
sense and nature. In this way, such new comers urge people to try their product and when enough
money is thrown in promotional market. And selling rate become very good, prices are returned
to their set goal value. But also in discounts, they do not allow their business to get in a loss. So, a
minimum threshold cost value is estimated which gives a reasonable profit enough to pay workers,
electricity bills, government taxes and small saving for personal usage etc.
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Public events sponsorship:

Public events are the biggest kind of entertainment in a society whether it is student life,
professional life or household life. Like many of the festivals are still celebrated in present time in
some urban areas of Pakistan. But promotion there is not that much effective, because everyone’s
mind is busy in celebrations activities there. However, in some public events arranged by an
industrial firm or university, promotion of product is effective because many have present state of
mind there as there is not that much celebration tasks in which one gets busy. For this purpose,
posters, product gifting, presentations and speeches are given to public. However, sometimes a
complete event is managed by an industrial firm to promote its product instead of participating as
guests in an event of other firms of any kind. Public events are proved to be efficient and cheap as
no money have to be invest except event arrangement. And it adds a live strong impression of a
product on the minds of spectators and they can also spread good points of your product if they
find. Or any promotional cards are played in events like a song by Falak or poetry by Anwar
Masood. The sponsorship takes a lot of advantage by investing in such kind of events where there
is chance of participation of big amount of audience.
We have also sawn a sentence on some TV shows and movies, powered by or cosponsored by an
industrial product trademark name or logo, it is also a promotional strategy and is very powerful
because if millions of people are watching that drama daily, then daily a viewer have to hear that
product trademark name or logo. But the industrial firm have to pay huge amounts on sponsorship
but it gives a nice return in terms of increase in market selling and profit ratios.
Audit:
Sounds like something terrible, but it is not that much bad as we think it is. It is dangerous for
those who are defaulters or are involved in any kind of corruption. Audit of an account is defined
as an account credits/balance inspection. Audit in its literal meaning is a cross check of all
transactions of money. The similarity or certifications present in paper proceedings are the base of
an audit. If any kind of dissimilarity is found in the records and actual credit chart. For explanation,
let’s move towards the audit procedures that describes how audit is done?
Audit procedures:
Audit procedures are the processes that auditors perform to obtain audit evidences which enable
them to make conclusion on the audit objective set and express their opinion. Sometime we call
audit procedures as audit programs. These two are the same thing. Auditors normally prepare audit
procedures at the planning stages once they identified audit objective, audit scope, audit approach,
and risks.
Auditors design audit procedures to detect all kind of risks that they identified and ensuring that
the require audit evidence are obtained sufficiently and appropriately. Normally, audit partners
need to approved on audit plan and audit procedures before audit team could perform their testing.
This is to make sure that all concern or risks are address in the procedures.
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Audit procedures might be different from client to client, and period to period. This is because
internal control over financial reporting is different from one client to another and the control
might be change from time to time. Auditor might need to update audit procedures from time to
time event thought current financial statements had been audited by its firm or team.
Typically, there are five audit procedures that normally use by auditors to obtain audit evidence.
Those five audit procedures include: Analytical review, inquiry, observation, inspection, and
recalculation.
Five types of Procedures:

Analytical Review:
Analytical review is not the procedure that use to obtain audit evidence, but it is the procedure that
used to assess the unusual transactions or event as the principle or basic to perform another
procedures. For example, when auditor found there is unusual transactions or event as the result
of using analytical review, then auditor will use others procedures that applicable to obtain
evidence.
Analytical procedure could be used for the types of transactions or event that occur regularly or
have connection with others transaction or event.
For example, we can use analytical procedure to assess the reasonableness of depreciation that
records in the financial statements. The main reason is that the depreciation expenses are calculated
systematically and occur regularly.
Inquiry:
Auditors inquire accountant and related management to gather information and obtain an
explanation on the matter that found by auditors. Sometime auditors inquire management about
the business process and the ways how financial transactions are recording as well as the major
control on business transactions. Inquiry is also one of the most importance audit procedures and
it could be used in different stage.
For example, auditor might inquire management at the planning stage and auditor could also
inquire management to confirm the consignment liabilities at the end of the audit work.
Audit inquiry is sometime use by auditor to obtain audit evident and sometime is used to obtain an
understanding for some nature of business or accounting transactions in order to gain enough
knowledge to design and perform testing.
However, information from inquiry sometime hard to be used as audit evidence. The audit
evidence that you found as the result of your testing after inquiry in strongly to be used as audit
evidence rather than information from inquiry itself.
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Observation:
Observation is one of audit procedures that auditors use to obtain an understanding and gather
audit evidence mainly to the real process or the ways how clients done some specific business
process. This kind audit procedure is mainly to confirm process that client told, physical
confirmation, or sometime use to obtain audit evidence in order to make their own projection which
will be used for comparison with client figure.
For example, auditor join client stock take at the year end and observe whether the way that they
counts are in the correct procedures or not. In this procedure, audit is not confirmed whether client
counts their inventories correct or not, but it confirm whether clients counting procedure is correct
or not is one thing. Another thing is auditor try to confirm whether the counting is really exist.
However, in practice, sometime auditor is not only observed how the client count, but they also
jointly perform counting inventories.
Sometime auditor using observation is not only for observing in counting fixed assets or
inventories, but also using to test the reasonableness of revenue. Here is how,
For example, auditor perform the reasonableness testing of revenue recording in the restaurant and
based on the accounting record fact check with their understanding, the revenue seem not
completely records. In this case, auditor might perform one week or two weeks observe in the
restaurant and then make their own estimate whether or not the revenue is reasonable.
Inspection:
Inspection is refer to verification or vouching documents. This is one of the most importance and
it can be 60% of audit work involve with the inspection of documents. For example, auditor
examine the sales invoices that records in financial reports. Auditor might examine whether the
invoice issued by client is really based on the goods that receive. And the goods that received is
actually the one the company make an order.
Auditor might also examine the payments voucher against the authority that approve on the
payments vouchers. Auditor might also inspecting the supporting documents recording the
inventories movement during the year. This is including the documents related to purchasing raw
material.
Recalculation:
Recalculation is the type of audit procedure that normally done by re-performing the works that
done by client in the purpose of assessing if there any different between audit’s work and client’s
work. For example, auditor might re-perform depreciation calculation and assess if there any
different between auditor calculation and its client’s calculation.
Auditor might also perform the recalculation on monthly salaries expenses that prepare by payroll
and finance department to ensure that the net salaries that paid to employee is correct.
Recalculation is the procedure that use to confirm the accuracy of transaction that involve
calculation.
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Financial Assertion and Audit Procedures:

Audit procedures above normally designed to confirm the financial assertion of transactions or
event in the financial statements. For example, auditor may test the occurrence of sales revenues
that records in the income statement for the period. This test is to confirm whether those
transactions are really occurred or not.
Auditor might also test whether the sales revenues that recording are completely records or not by
testing the completeness.
Understand about financial statements assertion could help auditor to not only tailor actionable
and effective audit procedures but also help to perform their testing more efficiently. This will also
help them to redesign audit procedures when the existing procedures are not practical.
The following are the list of financial assertion that auditors normally test:
Transactions and events: (in P&L)

• Occurrence
• Completeness
• Accuracy
• Cutoff
• Classification
Account balances (BS items)

• Existence
• Rights and obligations
• Completeness
• Valuation and allocation
Presentation and disclosure

• Occurrence
• Rights and obligations
• Completeness
• Classification and
• Understand-ability
• Accuracy and valuation
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How to design audit procedure?

Audit procedure normally design by auditors based on the characteristic of target transactions or
event, risks that associate, and the approach that auditor respond to those risks. Risk assessment
contribute significantly to auditors to design the right audit procedures. Right audit procedures is
not only help auditor to perform their work more effectively but also contribute to auditor in
minimizing audit risks (detection risk).
When designing audit procedure, auditor must make sure that all of those procedure contain and
address three importance things.
• Assertion that auditor want to confirm
• Procedure to test those assertion
• Reason to perform the procedure
After performing risks assessment, auditor will identified that risks that they think might happen
to financial statements. For example, auditor might things the inventories that reporting in the
financial statement might not exist. In this case, existence is the assertion that auditor want to test.
Therefore, inventories observation is the procedure that should be included in the inventories’ audit
procedure. The way how to perform, quantity of inventories to be observed need to be stated clearly
to make sure that auditor in charge for this cycle could understand.
Note: Audit procedures has data taken from a document provided by an audit manager and most
of explanation is written during interviews of audit teams and audit managers. Not responsible for
any kind of plagiarism and disperency. Please read this to improve your professional skills and
knowledge without negative focus.
Stock Market:
The stock market refers to the collection of markets and exchanges where the issuing and trading
of equities or stocks of publicly held companies, bonds, and other classes of securities take place.
This trade is either through formal exchanges or over-the-counter (OTC) marketplaces.
Also known as the equity market, the stock market is one of the most vital components of a free-
market economy. It provides companies with access to capital in exchange for giving investors a
slice of ownership.
Technical Point of view:

The stock market consists of two main sections, the primary market, and the secondary market.
The primary market is where new issues are first sold through initial public offerings (IPOs).
Institutional investors typically purchase most of these shares from investment banks.
The worth of the company going public and the number of shares issued will determine the opening
price of the IPO stock. All subsequent trading happens in the secondary market, where participants
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include both institutional and individual investors. A company uses the money raised from its IPO
to grow, but once its stock starts trading, it does not receive funds from the buying and selling of
its shares.
Stocks of larger companies are usually traded through exchanges. Such exchanges exist in major
cities all over the world, including London and Tokyo. Exchanges are entities that bring together
buyers and sellers in an organized manner. On exchanges, stocks are listed and traded. Today, the
execution of most transactions is by electronic means. Even the stocks themselves are mostly held
in an electronic format, not as physical certificates.
Regarding market capitalization, the two most prominent stock exchanges in the United States are
the New York Stock Exchange (NYSE), founded in 1792 and located on Wall Street, which
colloquially is often the synonym for the NYSE, and the NASDAQ, founded in 1971. The
NASDAQ originally featured over-the-counter (OTC) securities, but today it lists all types of
stocks. Stocks may be listed on either exchange if they meet the listing criteria of the exchange.
However, in general technology, firms tend to be listed on the NASDAQ.
The NYSE is still the largest and, arguably, most powerful stock exchange in the world. The
NASDAQ has more companies listed, but the NYSE has a market capitalization that is larger than
Tokyo, London, and the NASDAQ combined.
The Securities and Exchange Commission (SEC) is the regulatory body charged with overseeing
the U.S. stock markets. The SEC is a federal agency, which is independent of the political party in
power. Explicitly, the mission of the SEC states it is "to protect investors, maintain fair, orderly,
and efficient markets, and facilitate capital formation." Shortly after the stock market crash of
1929, the birth of the Securities and Exchange Commission (SEC) set a goal to restore investor
faith in the financial sector.
Stock Trading
Over-the-counter (OTC) and listed securities are the two primary types of securities transacted on
stock markets. Listed securities are those stocks traded on exchanges. These securities need to
meet reporting regulations of the SEC as well as the requirements of the exchanges where they
trade.
Over-the-counter securities are exchanged directly between parties, usually via a dealer network.
These securities do not list on any stock market exchange but will show on the pink sheets. Pink
sheet security often will not meet the requirements to list on an exchange and tend to have a low
float, such as closely held companies or thinly-traded stocks. Also, companies in bankruptcy are
typically listed on the pink sheets, as are penny stocks, which are loosely defined as stocks that
trade below $5 a share.
OTC securities do not need to comply with SEC reporting requirements, so finding credible
information on them can be difficult. This lack of data makes investing in pink sheet securities
similar to investing in private companies.
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Who Works in the Stock Market?

There are many different players associated with the stock market, including stockbrokers, traders,
stock analysts, portfolio managers and investment bankers. Each has a unique role, but many of
the roles are intertwined and depend on each other to make the market run effectively.
• Stockbrokers, also known as registered representatives in the U.S., are the licensed
professionals who buy and sell securities on behalf of investors. The brokers act as
intermediaries between the stock exchanges and the investors by buying and selling stocks
on the investors' behalf.
• Stock analysts perform research and rate the securities as buy, sell, or hold. This research
gets disseminated to clients and interested parties who decide whether to buy or sell the
stock.
• Portfolio managers are professionals who invest portfolios, or collections of securities, for
clients. These managers get recommendations from analysts and make the buy or sell
decisions for the portfolio. Mutual fund companies, hedge funds, and pension plans use
portfolio managers to make decisions and set the investment strategies for the money they
hold.
• Investment bankers represent companies in various capacities, such as private companies
that want to go public via an IPO or companies that are involved in pending mergers and
acquisitions.
The Stock Market Performance Indicators
If you want to know how the stock market is performing, you can consult an index of stocks for
that whole market or that segment of the market. Indexes are used to measure changes in the overall
stock market.
There are many different indexes, with each made up of a different pool of stocks. Some indexes
may overlap in the stocks they represent. In the United States, examples of indexes include the
Dow Jones Industrial Average, NASDAQ Composite Index, Russell 2000, and Standard and
Poor’s 500 (S&P 500), but there are many more.
The Dow Jones Industrial Average (DJIA) is perhaps the best-known of the indexes. The Dow is
made up of the 30 largest companies in the U.S., and the daily Dow shows how their stocks perform
on a given day. The Dow average is a price-weighted average. Price-weighted means the value has
a basis on the price of the included stocks.
The S&P 500 is comprised of the 500 largest capitalization stocks traded in the U.S.
These two indexes are the most followed measurements of the U.S. stock market. As such, they
are the most accepted representatives of the overall American economy. However, there are many
other indexes which represent mid- and small-sized U.S. companies, such as the Russell 2000.
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In the U.S., the indexes that measure the value of stocks are widely followed. As a financial
barometer, the stock market has become an integral and influential part of decision-making for
everyone from the average family to the wealthiest executive.
Why is the Stock Market Important?

The stock market allows companies to raise money by offering stock shares and corporate bonds.
It lets investors participate in the financial achievements of the companies, making money
through dividends. Dividends are cuts of the company's profits as they may payouts. Investors also
make a profit by selling appreciated stocks. This is known as a capital gain. Of course, the
downside is that investors can lose money as well if the share price falls or if the investor must sell
the shares at a loss.
One of the whole points of open exchange is to provide transparency and opportunity for all
investors. Furthermore, laws and governing bodies, such as the SEC, exist to "level the playing
field" for investors. However, there are undeniable advantages that institutional investors and
professional money managers have over the individual investor.
Advantages of large institutional investors include the timely access to privileged information,
full-time research departments, vast amounts of capital to invest, discounts on
commissions, transaction fees, and even share prices based on the large dollar amount they invest,
political influence, and more significant experience.
While the Internet has been somewhat of an equalizing factor, the reality is that many institutional
clients get news and analysis before the public does and can act on information more quickly.
Resource Management:
It is obvious that we have discussed many important aspects of management in earlier discussions.
But some important aspects of management that need some explanations for better understanding
will be discussed here. These aspects are following:
HR Management:-
It can be understood simply from the title and discussion made before that human resource
management deals with managing the working staff, their needs etc. It also includes the
management of all the facilities per policy of every specified industrial firm given to each worker.
Technical overview of human resource management takes up all the sides of behavior
management. And some parts of it includes the responsibility to train a freshly hired worker so
that his mindset indulges into the environment of the industry. And he can better manage himself
in that environment. It should be remembered that a worker will be productive if he is satisfied
with the work environment. Otherwise he will consume most of his time in advising himself that
he should feel good to work good. So, training a newly hired worker is also a prior responsibility
of a human resource manager, not in technical aspects but in physiological aspects.
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HR administrators are essential to the achievement of organizations in each industry.

Representatives are an organization's most costly and important resource; HR supervisors are in
charge of expanding the esteem acquired from workers.
To do the most ideal activity, notwithstanding, HR administrators must take a look at
representatives as people and work to make an occupation both charming and helpful for
profitability. The accompanying are a couple of undertakings that HR consistently handle in an
association, however the particular errands doled out to HR directors may shift marginally from
organization to organization. Let’s understand the HR job in some HR’s opinion from sourced
content below.
What does an HR do in daily routine?

Hiring New Employees:
Hiring is essential to keep a company functioning and working for a growing future. Human
resources managers are often involved in searching for new employees, interviewing, hiring,
and on boarding. These tasks may be shared with recruiters and managers, responsibilities may
be distributed across different lins depending on the priorities of the employer.
Handling Administrative works:

Administrative works such as running payroll, processing time off requests, scheduling
employees, and organizing employee files are very important in keeping employees content and
making sure that a company is compliant with laws. Human resources software has been
instrumental in reducing the amount of time spent on these types of tasks, but HR managers must
still be proactive in handling these tasks.
Ensure a Safe and Pleasant Workplace:

A safe and pleasant work environment can prevent many complications from developing in a
workplace. By managing risks to employees, human resources managers help to protect a
workplace from lawsuits and penalties, while also protecting workers from bodily harm and
emotional strain. Human resources managers must mind all applicable laws in the industry in
which they operate to help keep the workplace safe.
Additionally, human resources managers can create and implement training programs and plans
that perpetuate a safe environment and a pleasant company culture. By focusing on employee
contentment and safety, human resources managers create a desirable atmosphere while
minimizing turnover and productivity problems.
Organize Labor Strategically

Organizing labor should never be left entirely to a human resources manager or department, but
should be a joint effort between managers, employers, and HR managers. Human resources
managers can assist with strategic labor organization by creating succession plans, developing goal
45
tracking programs for employees, and setting up empowering training programs that allow
employees to grow at their own pace.
Relate to Employees
Human resources managers act as a strong force in managing employer-employee relations. While
handling administrative tasks and developing programs are important functions, it’s also important
for human resources managers to speak with employees one-on-one periodically and take steps to
make sure that employees feel comfortable and content with the job. If conflicts develop, human
resources managers should also be proactive about managing these issues.
No matter the size of a company or the industry in which it operates, all companies can benefit
from having at least one human resources manager. While job duties may vary and change with
technology and other progress, managing a company’s people will continue to remain a vital
function.
Authored by: Dave Rietsema (Certified HR)
Revenue Management:-
Most of the readers will think that revenue is something a complex systematic analogy. But it is
simply an income related to an organization and firm. And so, revenue management is the
management of organization’s income. And it is of substantial nature. For example, state revenue
means the tax that is demanded to organize the development projects and establishing the economy
of a country. In definitions context, “Revenue is the amount of money that a company actually
receives during a specific period, including discounts and deductions for returned merchandise. It
is the top line or gross income figure from which costs are subtracted to determine the net income”.
Technical View on Revenue:-

(An Investopedia Easy to go guidance)
Revenue is the amount of money that is brought into a company by its business activities. Revenue
is also known as sales, as in the price-to-sales ratio, an alternative to the price-to-earnings ratio that
uses revenue in the denominator.
There are different ways of calculating revenue, depending on the accounting method a business
employs. Accrual accounting will include sales made on credit as revenue, as long as the goods or
services have been delivered to the customer. It is therefore necessary to check the cash flow
statement to assess how efficiently a company collects the money it is owed. Cash accounting, on
the other hand, will only count sales as revenue if the payment has been received. When cash is
paid to a company, this is known as a "receipt" to distinguish it from revenue. It is possible to have
receipts without revenue - for example, if the customer paid in advance for a service that has not
been rendered or goods that have not been delivered, this activity leads to a receipt, but not revenue.
46
Revenue is known as the top line because it is displayed first on a company's income statement.
Expenses are then deducted from revenue in order to obtain net income or profit, also referred to
as the bottom line. The profit of a company is calculated simply as revenues minus expenses. In
order to increase profit, and hence, earnings per share for its shareholders, a company can increase
its revenues and/or reduce expenses. Investors will often consider a company's revenue and net
income separately to determine the health of a business. It is possible for net income to grow while
revenue remains stagnant, as a result of cost-cutting; such a situation does not bode well for a
company's long-term growth. When public companies report their quarterly earnings, the two
figures that receive the most attention are typically revenue and earnings per share ("earnings"
being equivalent to net income). Subsequent price movement in stocks generally correlates to
whether a company beat or missed analysts' revenue and earnings per share expectations.
A company's revenue may be subdivided according to the divisions that generate it. For example,
a recreational vehicles department might have a financing division, which could be a separate
source of revenue. Revenue can also be divided into operating revenue or sales from a company's
core business, and non-operating revenue which is derived from other secondary sources. As these
non-operating revenue sources are often not predictable or recurring, they can be referred to as
one-time events or gains. For example, proceeds from the sale of an asset, a windfall from
investments, or money awarded through litigation would be considered non-operating revenue.
In the case of government, revenue is the money received from taxation, fees, fines, inter-
governmental grants or transfers, securities sales, mineral rights and resource rights, as well as any
sales that are made.
For non-profits, revenue is often referred to as gross receipts. Its components include donations
from individuals, foundations and companies; grants from government entities; investments;
fundraising activities; and membership fees.
In terms of real estate investments, revenue refers to the income generated by a property, such as
rent, parking fees, on-site laundry costs, etc. When the operating expenses incurred in running the
property is subtracted from property income, the resulting value is net operating income.
The Importance of the Human Element in Revenue Management

Written by Famous Ed Watkins, Deutto news Services
While technology is a wonderful and sometimes magical tool in the application of revenue
management, actioners need to be careful not to use it as a crutch or as a way to avoid making
decisions that require judgment, experience and sometimes gut instinct.
In short, when it comes to revenue management technology, the policy shouldn’t be “set it and
forget it.”
Hotel owners understand the importance of balancing technology with human involvements. In a
recent blog in Hotels magazine, Chad Crandell, managing director and CEO of asset management
firm CHM Warnick, questioned whether overreliance on technology is hindering the industry’s
ability to raise rates, even during the current environment of high occupancies.
47
He wrote: “Are automated brand revenue management systems taking the decision making power
out of the hand of the experts, undermining their confidence to push rates by requiring an override
of system recommendations?”
Of course, the reverse is also true: Revenue strategists shouldn’t spend too much of their precious
time performing mindless tasks better handled by an automated system. In fact, hoteliers’ distrust
of technology in general and revenue management specifically could account in part for the general
lack of rate growth throughout the industry.
GMs and revenue managers need to be prudent in how they manage their rate-setting and
distribution systems. Left to do its job, a state-of-the-art revenue management system can assist
not hinder a hotel’s ability to raise rates.
A good rule of thumb, as practiced by NH Hotels and other companies, is “managing by
exception;” that is, spending the majority of efforts on revenue managing certain and specific
dates—need periods and high-demand dates—rather than spending time yielding every day.
Revenue management technology can help managers zero in on strategy as opposed to day-to-day
execution. The right RM system performs a number of important functions to assist strategists in
creating the right rates for the right rooms on the right dates.
In addition, the concepts of Open Pricing and pricing rules are best implemented through a robust
revenue management system.
Open Pricing is a unique and flexible way to set rates that allows hoteliers to price all room types,
channels and dates independently of each other 365 days a year and never say “no” to a customer.
While Open Pricing might sound complicated, the right technology can make it easy to manage by
significantly reducing the time spent doing manual calculations and data entry.
Pricing rules identify specific actions before a rate is recommended. One example would be setting
a rule on a discounted rate to take from 0% to 10% off BAR rates, depending on occupancy. Also,
room-type rates in an RM system can help set pricing independently so it’s possible to charge more
for king rooms during a convention and more for doubles during family-heavy weekends.
The ultimate goal is instead of managing everything manually, you manage only the important
things and then spend time focusing on understanding the booking patterns for key dates.
Integration is crucial: The right revenue management system seamlessly interfaced with the CRS
and PMS can automate these tasks and push approved rates in real time.
Seasoned revenue managers have too much education, experience and day-to-day know-how to
waste those resources on what amounts to clerical work. At the same time, revenue management
is an art as much as a science so the human element must constantly work in harmony with
technology, not in conflict.
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Raw material Management:

Raw material is the most important part of an industrial processing. It is a common sense that if an
industry have no raw material, no product can be formed as no processing could be done. So,
management of raw material is extremely important and necessary for the well-being of an
industry. It is obvious that an industry always sees the availability of raw material before investing
its money on a destined business product. So following are basic strategies on which a raw material
is managed:
Resource Availability at Target Location:

The most important thing done prior to building a big structure and importing required equipment
is the inspection of resource availability in target location. For example, a person A wants to build
a steel plant near the coast area of a city near sea. Person A is satisfied by location’s environment.
But more than location’s environment, he want to do this because of ease of resource availability
of resources on that location. Because steel can be imported through seaport and can be brought to
the processing area with lowest possible cost at that sight”. Therefore, regardless of any location
that is desired, feasibility and cost should always remain in strong consideration with respect to
resource availability at desired location.
Resource quality at target location:

Besides the availability precautions, the quality precautions are also very essential in determining
the productivity of process plant in a desired area or location. If the desired location have poor
quality of raw material, a lot of operational cost will be added in the budget of an industry. For
example, Person B wants to build a food processing plant near the city because he thinks that
transportation and marketing will become easy. But he will be prohibited by experienced industrial
strategists because raw material which include fruits, vegetables, artificially processed edibles like
salts etc. will have a low quality at that location. These things will be transported from a village
field to city aside plant. So, quality of processed food will be lower as compared to original because
fresh food is more hygienic and nutrition rich. Environment and moisture contact can cause a
considerable increase in preservation cost. So, food plant near a village field or nature rich sources
of desired processed food is more feasible. Therefore, resource quality at the target location matters
lot. Many readers will be confused that these checks are not important in many contexts because
raw material is provided by some dealers. But it is necessary to define the optimum strategies to
cut extra unwanted cost clatters.
Price of resource at target location:

Price always depends upon the quality of material to be bought. Availability is also very important
in determining the price of raw material for destined processing. For example, table salt which is
refined form of sodium chloride has huge reservoirs in khwera, so price of salt in this location will
be extremely small and extremely economical. And also refined salt will have a slightly higher
cost as compared to the unrefined salt. So, deriving the relations between the availability of
resource and quality of resource, price and revenues are managed so that budget matches with the
desired profit mark value subtracting all the side by expenditures.
49
Nature of resource at target location:

Nature is also an important aspect to remember because if you are thirsty and you want to drink a
glass of water. And you are given a glass full of ice as you are sitting in an ice cap. Then, you will
become panic. But then your eyes will be opened and you will be thankful to Allah Almighty that
it was only a dream. So, when a person wants to build a plant at his desired location, he should
have consulted with respective raw material providers and residents of the location so that any
kind of problems do not stand up as soon as the processing work is started. It will make a lot of
investment on pre-processing or more cost in purchasing the raw material from a source provider
at his desired amount because that shape, form, chemical and physical behavior of desired raw
material is limited at the desired location. So, pre planning should be done whether it is
accompanied by finding a cheaper resource provider or adjusting the location. However, first
option is better in almost all cases as it is not easy to shift plant at any location. Standard rules and
policies for industrial implantation must also be followed for better health and rank of an industrial
firm.
Research and Development:

It should be called as a separate industry. Because research is the most crucial for the survival of
industry in this tough competition era. The person who will make a better product, will cover the
entire sales market. It is known truth that consumer like quality more than cost affordability A
poor person also likes to buy quality consumer products. However, he can’t afford it is other
perspective of discussion. So, if an industrial firm keep on selling a product years on years without
any improvements, the product will become dreary and rugged as compared to ever changing
world of advancements. So, productivity and revenue will decay and industry will be closed. In a
conditional paraphrase, if nobody have ever to find new improvements in the world of processing,
then no research load should be beard by industrial administration. But Allah Almighty have given
a natural thrust of knowledge seeking in every human. Whether he uses his mental abilities or not,
a human can modify anything if he develops a deep and intensive sense of using that thing. When
a human being have struggled for a thing with the sheer focus, it is common that he have got it
always.
Besides the courageous and motivational truths involved in research and development, it should
be known that it is most budget consuming department of an industry. A lot of resources, advanced
tools, and experienced researchers are required in this department which usually ruins the
profitability itself. Therefore, research and development centers are present in only elite class of
industries which have a lot off shares floating on the screens of a stock exchange. Without stock
exchange and external finance sources, it would have been impossible to establish a working
research and development center. Yes, working is a word which needs a little attention. Many
industrial firms have an artificial research and development centers where no experienced
researchers, no advanced equipment/tool is available for the purpose but they are made only for
the self-esteem and business family honor of an industrial firm. These are included mostly in type
of firms which are monopoly. Monopoly is an important term which was not described in
50
marketing topic of this booklet before. Monopoly means an industrial firm which has no
competition rival in the whole market. And only one industrial firm is making that product or that
kind of product with a unique design. So, a monopoly takes an advantage of this market occupation
in most cases and do not invest in research and development quite often because its product is
already unique and does not demands a modification for true market boost.
A research and development center have many teams which are permitted to inspect a specified
aspect of the product under observation. For example, an industrial firm has a dairy product let
say, then for a précised work if industry has reasonable amount of resources, each team have to
inspect the nutrition aspect, one team have to inspect the preservation aspect and one team have to
inspect the environmental influence on the product under several atmospheric conditions.
On the other hand, if there is a limited count of accessories required for complete inspection, only
one team uses the available tools to research on certain possible aspects and draw results,
hypothesis and conclusions for experimentation.
The last important work after drawing important conclusions from experiments. It is responsibility
of a researcher to propose some good improvement and modifications in process, which are later
confirmed by further experimentation in the presence of some elite class research committee or
other same level of researchers of same process. It is done because modifying a process needs a
full and final changes in controlling variables, and in case of any wrong change, whole operation
will have to shut down for a considerable amount of weeks and it can cause an extraordinary
damage to an industrial productivity.
Final Words from Author:

Now I will hope that the reader can negotiate on any industrial aspect with any person without any
fear and errors. That is why, this booklet is made very simple so that a layman or freshly graduated
engineer can understand with even having high technical knowledge or sense.
51
Condition of Industrial Sector of Pakistan:

A country’s industrial sector is crucial for its enhanced economic performance as it increases the
per capita income and is pivotal for the economic development of a country.
Unfortunately, the industrial sector has been either stagnating or declining in Pakistan, therefore
per capita income is not growing at the desired rate. The share of industrial sector was around 25%
in the GDP in early 2000 and has declined to around 20.50% which has become too low
considering the level of economic development of Pakistan. There are certain factors associated
with this decline.
Pakistan’s hospitality industry gains momentum

Reasons for decline
First, the level of trust plays a significant role among industrial capitalists and government to run
the wheel of industry. Both sides have to take steps to nurture, promote and flourish this
relationship. The government normally expects that industrialists should report, document and
discharge their tax liabilities in a judicious manner and formalize the industry.
Similarly, industrialists anticipate that government officials would not intimidate and encroach
upon their rights. They also expect that pending commitments and refunds would be dealt with in
a timely manner. Owing to a lack of trust, industrialists became fearful and adopted an informal
path and started to appease the government officials.
On the other hand, the government has adopted delaying tactics to meet the pending commitments
in order to meet the fiscal deficit. Hence, the level of trust among industrial capitalists and
government has declined over the years.
Second, the availability of cheap land is an important factor of production for industrial growth
and development. The industrialists prefer to set up factories in the suburban areas of a city and
they normally expect cheap land prices since they intend to do long term investment.
Industrial sector expands 6.8%, beats target
Speculation and remittances have played a significant role in jacking up land prices. The unplanned
expansion of cities without taking into account proper zoning regulation added salt to injury. The
land booms of 2002-2006 and 2011-2016 have increased their prices manifold in metropolitan
cities of Pakistan.
These skyrocketed land prices have increased the opportunity cost for setting up a factory. As a
consequence, the industrialists started to seek ‘land rents’ and diverted their attention from their
core business of establishing and expanding the industry.
Third, the banking sector acts as a spine in the growth of industrial sector since it provides fixed
capital, desired working capital and bridge and export financing as per the requirements of
industrial capitalists.
52
However, the focus has been mainly on short term financing such as credit cards, personal loans
and auto loans. Since the advent of global financial crises, banks have become more risk averse
and started to invest in government securities. The governments stopped borrowing from the State
Bank of Pakistan and aided the banking sector by borrowing from them.
Finally, the industrial growth also depends on higher agriculture productivity since higher
agriculture productivity increases the real wage of workers. The agricultural productivity is low in
Pakistan due to various factors which are also stunting the growth of industry.
All these factors have contributed to a decline in industrial sector in our country.
The writer is an Assistant Professor of Economics at LUMS
Published in The Express Tribune, August 22nd, 2016.
Author’s View:
Industrial sector of Pakistan needs some real investments. Only a few multinational industries are
contributing to the industrial sector economic growth. That is why our import ratio is much larger
than that of export ratio. A wrong perception of us is that Pakistan is a poor country. Pakistan have
everything given by nature where it is mineral resources or agricultural resources. However,
Pakistanis prefer to store money in banks, instead of investing it in some kind of industry. Most
rich people invest their money in stock exchange which is a total gambling but positive in financing
sense. But still many opportunities for work is available in industrial side because engineering
institutes are much small in number as compared to any country which is developed. So, ratio
matches and many can get settled in a work field. However, who do not even try to find a job, sit
back in homes and disheart others are garbage of society. It takes time to achieve something, start
is always difficult. But if you are determined, then you will get a good position one day. Skills
matter a lot.
53
Industrial Revolution: Bibliography

• See F. C. Dietz, The Industrial Revolution (1927, repr. 1973);
• T. S. Ashton, The Industrial Revolution (1948);
• W. O. Henderson, The Industrialization of Europe, 1780–1914 (1969);
• J. W. Osborne, The Silent Revolution: The Industrial Revolution in England as a Source
of Cultural Change (1970);
• R. M. Hartwell, The Industrial Revolution and Economic Growth (1971);
• P. N. Stearns, The Impact of the Industrial Revolution (1972);
• B. Bracegirdle et al.,The Archaeology of the Industrial Revolution (1973);
• R. C. Allen, The British Industrial Revolution in Global Perspective (2009);
• W. Rosen, The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention
(2010)
• C. R. Morris, The Dawn of Innovation: The First American Industrial Revolution (2012).
• Bellis, Mary, "Timeline of Textile Machinery," The Industrial Revolution, 10 February
2003.
• "Chartism." Canadian Encyclopedia Plus. CD-ROM. 1997 ed.
• "Chartism - too much talk, too little action," Cotton Times, 15 February 2003.
• "Classic, Classical, and Classicism." Microsoft Encarta Encyclopedia. Microsoft
Corporation, 1999.
• "Commercial Revolution," www.bartleby.com/65/co/commerc-r.html, 12 February 2003.
• "Cottage Industry," 13 November 2000, www.cssd.ab.ca/tech/social/tut9/lesson_1.htm, 31
January 2003.
• Doyle, William. The Old European Order 1660-1800. Oxford: Oxford University Press,
1992.
• "Enclosure Acts," 13 November 2000, www.cssd.ab.ca/tech/social/tut9/lesson_2.htm, 1
February 2003.
• "Factory Legislation 1802-1878," A Web of English History, 22 November 2002,
dspace.dial.pipex.com/town/terrace/adw03/peel/factmine/factleg.htm,8 February 2003
• Haberman, Arthur. The Making of the Modern Age. Toronto: Gage Publishing, 1984.
• "Inclosure." Canadian Encyclopedia Plus. CD-ROM. 1997 ed.
• "Industrial Revolution: The Industrial Revolution in Great Britain," The Columbia
Electronic Encyclopedia, www.factmonster.com/ce6/history/A0858818.html, 8 February
2003.
• Kaufman, Jacob J. and Grant N. Farr. "Factory System." Microsoft Encarta Encyclopedia.
Microsoft Corporation, 1999.
• Kreis, Steven, "Lecture 17: The Origins of the Industrial Revolution in England," The
History Guide, July 25, 2002, www.historyguide.org/intellect/lecture17a.html, 1 February
2003.
• "Light: The Industrial Age 1750-1900, Art and Science, Technology and Society,"
absolutearts.com, 7 April 2001, www.absolutearts.com/artsnews/2001/04/10/28379.html,
12 February 2003.
54
• "Luddites - the machine breakers," Cotton Times, www.cottontimes.co.uk/luddo.htm, 15

February 2003.
• "Peterloo Massacre," www.spartacus.schoolnet.co.uk/PRpeterloo.htm, 15 February 2003.
• Porter, Glenn. "Industrial Revolution." Microsoft Encarta Encyclopedia. Microsoft
Corporation, 1999.
• "Realism (art and literature)." Microsoft Encarta Encyclopedia. Microsoft Corporation,
1999.
• Reed, Lawrence, "Child Labour and the the British Industrial Revolution," December 7,
2001, www.mackinac.org/3879, 8 February 2003.
• "Romanticism (art)." Microsoft Encarta Encyclopedia. Microsoft Corporation, 1999.
• Sadler, Michael Thomas. "Committee of Factories Bill: Minutes of Evidence." Modern
Europe.
• "Seed Drill," Timelinks, timelinks.merlin.mb.ca/reference/db0104.htm, 6 February 2003.
• Stearns, Peter et al. World History: Tradition and New Direction. New York: Addison-
Wesley, 1991.
• "Technology Throughout History," www.bergen.org/technology/indust2.html, 13
February 2003.
• "The Agricultural Revolution," www.econ.ubc.ca/pereira/links/Lecture 9 _ The
Agricultural Revolution (Allen view).doc, 8 February 2003.
• The Columbia Encyclopedia. Ed. William Bridgwater and Elizabeth J. Sherwood.
Morningside Heights: Columbia University Press, 1950.
55
Common Questions and Their Answers:

(Sourced from experienced industrial workers during interviews)
1>. Is GPA matters in getting a good position at work field?
Ans: GPA matters in two aspects, it can inspire the hiring manager but you have to
perform well during interview and tests conducted. Second, it will help you in entering in the
shortlist and will increase chances of getting selected.
2>. Can a person with low GPA get a good position at work field?
Ans: Minimum 3.0 is required to get into the chance list. But luck or test performance also
sometimes do this trick if the applicant is talented in respective field.
3>. Is anyone gets a job without a good recommendation?
Ans: Every industrial firm wants to have a most skilled staff. So, it is very rare case especially in
chemical firms that anyone gets job with only recommendation without having good academic
record and experience. However, if a skilled person have recommendation, it is always welcomed.
4>. Is recommendation is necessary for internship?
Ans: Yes, in most cases, because applicants are too much. And hiring managers do not want waste
time in struggling on finding skilled ones because internships are too short and temporary and most
people do not learn anything in one or two month except very small projects which are for publicity
purpose. But unpaid internships are available for everyone having respective field knowledge and
study in most cases.
5>. Is internship is extremely important?
Ans: Yes but one is essential. Extra are always given importance. But most hiring managers always
questions what you have done in that session. If the person done nothing except passing time, then
internship is useless. Same if a person improve his side by skills instead of internship which are
related to field work then it is bonus for him also.
6>. Is field work a tough domain?
Ans: Perhaps, many students would think it is tough so they even avoid apply in field work jobs.
But work is simple because you have to do same task every day or same type of tasks every day.
But at first you have make mind to adjust and learn without thinking you have a degree.
7>. Are university societies are important to improve communication skills?
Ans: No, because they are only involved in kind of game club, doing fun and entertainment
activities and no work field knowledge is being learnt. Everyone knew how to talk but it is
important to learn how to talk in industrial domain with industrial people. So, it has been useless
and wasting student’s future if they are paying a considerable time to it.
56
8>. Are motivational speakers tell the write strategies?

Ans: No, they guide in wrong direction most of time and diverts students from their work field. If
a student is not interested in study, why he is even studying.
9>. Studying CSS during engineering study is good or bad?
Ans: It is extremely bad trend because CSS is a prize bond or lottery ticket, and even all the passing
candidates do not got job. Four to five years hard work and there is no future security, so it is better
to invest that precious time in boosting your skills in your work field.
Note:
These all answers are original given are many industrialist but I have arranged them separately
eliminating unimportant words.
57

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Industrial Framework CPS 313 1

Department of Chemical Engineering

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Outlook and Instant View:

Roads and background:

Decision of plant location:

Decision of plant area:

Decision about construction and architecture:

Decision about equipment installation:

Decision about control system topology:

Processing routine strategy:

Product marketing strategy:

Technical View on Production management:

Quality and assurance department:

Technical view on quality assurance:

Six Sigma’s Technical view:

DMAIC Improvement Process:

A boy with a blue shirt:

Industrial Business administration:

According to Kris and Dagger:

Types of Business Finance:

Factors affecting fixed and working capital requirements:

Sources of business finance:

1. Short term finance:

2. Medium Term finance:

3. Long Term Finance:

Major essential terminologies in business finance are following:

Types of leasing contracts:

Open end leasing contract:

Door to Door selling:

Public events sponsorship:

Five types of Procedures:

Financial Assertion and Audit Procedures:

Transactions and events: (in P&L)

Account balances (BS items)

Presentation and disclosure

How to design audit procedure?

Technical Point of view:

Who Works in the Stock Market?

Why is the Stock Market Important?

HR administrators are essential to the achievement of organizations in each industry.

What does an HR do in daily routine?

Handling Administrative works:

Ensure a Safe and Pleasant Workplace:

Organize Labor Strategically

Technical View on Revenue:-

The Importance of the Human Element in Revenue Management

Raw material Management:

Resource Availability at Target Location:

Resource quality at target location:

Price of resource at target location:

Nature of resource at target location:

Research and Development:

Final Words from Author:

Condition of Industrial Sector of Pakistan:

Pakistan’s hospitality industry gains momentum

Industrial Revolution: Bibliography

• "Luddites - the machine breakers," Cotton Times, www.cottontimes.co.uk/luddo.htm, 15

Common Questions and Their Answers:

8>. Are motivational speakers tell the write strategies?

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