SUMMARY
Punj Lloyd is one of the largest engineering construction companies in India providing
integrated design, engineering, procurement, construction and project management
services for energy industry and infrastructure sector projects. It provides engineering
construction services for onshore and offshore pipelines, gas gathering systems, oil and gas
tanks and terminals including cryogenic Liquefied Natural Gas (LNG) and Liquefied
Petroleum Gas (LPG) storage terminals, process facilities in the oil and gas industry
including refineries and for power plant projects. Punj Lloyd has worked not only in
infrastructure sector but on several projects in the telecommunications sector also. In
addition, it provides value added engineering services for energy industry and
infrastructure projects as well as comprehensive plant and facility maintenance and
management services.
Its operations are spread across the regions of the Middle East, the Caspian, the Asia
Pacific, Africa and South Asia. It has 13 subsidiaries including subsidiaries in Kazakhstan
and Indonesia, and 12 project and marketing offices, including in the United Kingdom,
Tunisia, Libya and Saudi Arabia. Its services include detailed engineering, field services,
material procurement and overall project and construction management. Punj Lloyd own a
large fleet of sophisticated construction equipment and skilled employee resources,
together with strong engineering capabilities enable it to successful implement modern
engineering construction methodologies and strong project management practices.
Punj Lloyd is strongly committed to health, safety and environment policies and practise in
the execution of the projects and has received several awards and certifications for its
operations and projects from the British Safety Council as well as from its clients. It also
enjoys various accreditations such as the ISO 9001:2000 QMS, the ISO 14001:1996 EMS
and the OHSAS 18001:1999 OHSMS from Det Norske Veritas (“DNV”“).
In over 20 years of experience in construction projects, Punj Lloyd have constructed more
than 5,300 kilometres of pipelines and four million cubic metres of tanks and terminals
capacity and have executed 11 refinery modernization and quality improvement projects. It
has also worked or is working on 14 highway projects in the infrastructure sector.
“In the years ended March 31, 2005 and in the nine months ended December 31, 2005 Punj
Lloyd generated approximately 42.74% & 67.53% of its consolidated sales and contracts
revenue from projects executed outside India.”“ Punj Lloyd Limited, home, profile
<http://www.punjlloyd.com/main.asp?p=profile.htm>[1]
It a matter of discussion that even though the increases in competition and to stand
strongly in the global market in construction field, how Punj Lloyd adopt its strategic
operations? If there are any strategy is deficient in the company operations, what type of
strategy would be better for its operations? In any case, to understand any problems or
shortcomings if it has, we will have to understand its strategic plans to find out the better
solutions.
INTRODUCTION
ORIGIN AND EVOLUTION
Punj Lloyd Limited (PLL) was incorporated as Punj Lloyd Engineering Pvt. Ltd. on 26th
September 1988 with the specific aim of taking over all the engineering, turnkey & general
construction activities along with other specialized technical services.
Punj Lloyd Engineering Pvt. Ltd. was renamed Punj Lloyd Pvt. Ltd. on July 11, 1989. On
conversion into a public limited company on 22nd July 1992 the name was changed to
Punj Lloyd Ltd.
SERVICES PROVIDED BY PUNJ LLOYD LIMITED.
Punj Lloyd Ltd. is a total engineering construction company with activities including cross
country pipelines, tank ages, cryogenic system, oil & gas, petrochemicals, oil & gas piping
projects, piping jobs, industrial construction, effluent treatment, fertilizers, bridges,
highway engineering, civil engineering, & construction for the power and irrigation, water
supply, water treatment, distribution networks, on-shore & off-shore pipelines,
infrastructure services, broadband services.
According to Hill T. (2005 pp.4-5), every business is managed through three major
functions: finance, marketing, and operations management. Other business
functions*ƒ²*ƒ”€šsuch as accounting, purchasing, human resources, and
engineering*ƒ²*ƒ”€šsupport these three major functions. Finance is the function
responsible for managing cash flow, current assets, and capital investments. Marketing is
responsible for sales, generating customer demand, and understanding customer wants and
needs.
To understand the role of Operations Management and Strategy in Punj Lloyd, we will
have to know the organizational set up of the Company.
ORGANIZATIONAL SET UP OF THE COMPANY
PROCESS DESIGN:
“The process by which some functional requirement of people is satisfied through the
shaping or configuration of the resources and/or activities that comprise a product, or a
service, or the transformation process that produces them.”“ Slack N., Chambers S. and
Johnston R, (2001, 2004, 2007) Operations Management., Chapter 4 *ƒ²*ƒ”€š Process
Design, 5th Ed., p.88, London: Prentice Hall.[3]
Process Design in Punj Lloyd can be described as part of its integrated process which is
involved with all the other aspects of the business: namely, business planning, marketing
and sales, finance, human resource management, purchasing, research and development.
This process necessarily involves both the all-important client/customer, and the supplier
upon whom the organization will be heavily dependent, especially in a JUST-IN-TIME
operation.
Punj Lloyd maintains creative and versatile process engineers for the basic design studies,
calculation of heat and material balances, specifications of the entire item of process
equipment and purchase and inventory diagram. Review of plot plan, critical piping routes
and selection of equipments is additional functions.
The relationships between the different parts of the process are shown in the following
figure.
There are several ways to organize a construction company to manage building and
remodelling. All can work but some are more sophisticated and effective. At Punj Lloyd, a
process called Design/Build. At the core of the Design/Build process is a simple concept:
instead of scattering responsibility across several professionals, it is better to combine all
the elements of design and construction within one team from beginning to end. This
