Page 47 - CCL AR 2017 Final

Additional Information

MANAGEMENT OBJECTIVES & STRATEGIES strict controls and effective management. During the
year, there is volatility in international coal and fuel
The core objective of our management is to achieve prices which is the key component of our cost. The
excellence in business where our venture may be Company successfully managed to control its cost by
regarded as amongst the best blue-chip stocks in the efficient mix of imported and local coal. Further,
country. power cost was also controlled by using right mix of
WHR, National Grid and self generation through
Furnace oil.
Effectiveness of internal controls is ensured through
active Internal Audit Department, which
independently recommends its suggestions to the
Board’s Audit Committee. On all constructive
suggestions, the Management takes corrective actions
immediately.
Cherat Cement gives key consideration to Human
Resource Management. A full fledge HR department
is established which is supervised by HR & RC of the
Board of Directors. Approved policies are in place.
All the HR functions are integrated where the
employees’ performances are evaluated based on
SMART goals. Moreover, Training Need Assessment
(TNA) is effectively in place where in-house and
external trainings are arranged at all management
levels. Further, eligible employees receive Service
Awards based on their performance and length of
service. The Management’s objective is to recognize
and reward employee’s contribution to the business.
To achieve our objectives, the management This process helps the availability of high quality
strategically strives to enhance stakeholders' value workforce which plays a vital role in achieving
and customer satisfaction. The stakeholders’ value is day-to-day targets and tactical and strategic
maximized through returns on investments, which objectives of the Company.
management believes can be achieved through
revenue maximization and cost control measures. We take pride in being Pakistan’s first cement
company having the world’s largest ERP ‘SAP’ in
On the revenue side, we are confident that our place. The Company carried out one of the fastest
investment on production lines II and III will reap implementation of SAP in Pakistan. The use of SAP
positive results and help in maximizing returns for all helps management implement better internal controls
stakeholders. The tone of our business is set by the and employ best business practices.
marketing targets and budgets, which are aggressively
designed by the management to achieve highest Another prime objective of the management is
possible returns. The management is working for customer satisfaction for which management takes
growth of the Company. Line II started operations every step to ensure high quality customer care and
during the year as per plan while work on line III has product quality. For this purpose the Company has
started.
adopted Total Quality Management (TQM) system
Cost is effectively controlled by following energy ISO 9001: 2008 and also obtained certification of
conservation measures through use of Waste Heat Environment Management System ISO 14001: 2004.
Recovery plant, alternate fuels, like Refuse Derived
Fuel, Tyre Derived Fuel and LED lights. In addition, The result of these steps can be seen in our increased
the Company uses combination of both imported and revenue, controlled costs and satisfied customer base
local coal in order to keep the fuel costs low. with no major complaints.
In spite of volatility in cost of major inputs, the There is no material change in Company’s objectives
company managed to effectively deal with it through and strategies from the previous year.

45
Annual
Report 2017