GENERAL FAN COMPANY

VISION
General Fan Company claims that they have a unique product named as pedestal fan which is favorable for hot
tropical humid climate. Their vision is to dominate the world by using this product. General Fan Company also
interested in providing after sale services, spare parts to each and every country of the world. They also want to setup
home services center throughout the world. Their vision is also to achieve the target of export of worth US Dollar 40
million. In a nut shell we can say that general fan company has the following visions
Dominate the world through pedestal fan
To provide services centers in each and every country
To achieve export target of US Dollar 40 million

HISTORY/BACKGROUND
General Fan Company is a name of quality in Pakistan fan industry. Their history is bright and full of achievements.
We take a brief overview of general fan company and now presenting their achievements which will elaborate their
history.
General Fan Company was established in 1954 by Mr. Muhammad Ilyas. At the start of business they only deals at
national level but their efforts encourage them to expand their business at international level and they take first step
in exports in 1993. Now they are exporting to many advanced countries of the world.
From previous 5 years the growth rate of general fan company is 100% and they have contributed 1/3 of the total fan
exports of Pakistan. In 2001-2002 general fan company received a large number of international orders and also
decided to export to all over the world including United States and Europe. A greatest achievement of general fan
company is the renewal of registration which is awarded by the water and power development authority in 1997.
Further more general fan company has also obtained ISO 9002 certificate which assure that this company is
following the quality standards in manufacturing their products.
On best technical performance engineer I chief branch has given the certificate of enlistment on 23-02-2002. Another
big achievement of general fan company is the contract agreement of supply of GFC fan for army housing
directorate at 30th April 2001.
Pakistan standard institution has certified according to 1961 ordinance the institution hereby grants to GFC fan. This
license is used as standard mark. At the end following is the summary of general fans companys history.

Established in 1954
Has certified according to 1961 ordinence
Start exporting in 1993
Get renewal of registration from WAPDA in 1997

 Achieve contract of agreement in 2001

Obtain certificate of enlistment in 2002 (best performance)

INTRODUCTION
Muhammad Ilyas is the owner of the general fan company who started it in1954 at a small scale. General Fan
Company is the largest manufacturer of fan in Pakistan. Initially they only deal at local level but with the passage of
time and due to the effective strategies of the owner they take initial step in export business in 1993. General Fan
Company is exports quality products of US Dollar 12 million to 30 countries of the world. They are exporting
durable and quality products to Asia, Europe, Africa and Middle East.
General Fan Company is the first Pakistani company who has wins the export trophy award in Pakistan. Now general
fan company has won 12th export trophy award. General Fan Company is also the first brand in Pakistan which got
registered in underwriter laboratories USA to export fans in USA and Canada. The machinery used in general fan
company is just like to the machinery used in advanced countries of the world like china, Vietnam, Taiwan.
Due to the power shortages in world and especially in Pakistan general fan company is focusing on energy saving
products from last twenty years. For energy saving products special kind of material is required such as copper, high
quality ball bearings, and skilled labor force and general fan company have these resources in sufficient quantity.
General Fan Company is not operating well only in Pakistan but instead of it is becoming popular in kingdom of
Saudi Arabia, Sudan, Yemen Senegal, Bangladesh, Iraq UAE also. General fan company is also taking pride that the
Chinese manufactures are copying their technology. Nabeel model is a clear example of it. There are also some
reports that some Chinese and Bangladeshi companies are making fake GFC fans. But it is the realty that general fan
company has achieved this destination due to their reliability and quality in their products.
Along with the quality the success of to company depends upon the policies and hard work of the directors of the
company. The directors of the company are highly educated and trained. Mr. Muhammad Ilyas is the CEO of the
company and he is graduated in 1968 in electrical engineering. He has 43 years of experience and also gets trained
from Germany and USA.
By summing up the story we can say that

Muhammad Ilyas establish GFC IN 1954

Largest fan manufacturer of fan in Pakistan
Take 1st step in export in 1993
1st Pakistani company who wins Export Trophy Award
Used machinery similar to Vietnam, Taiwan and china
Export fans to Yemen, Bangladesh, Sudan, Iraq, and UAE.
Registered with underwriter laboratories USA. (USA, Canada)

ORGANIZATIONAL STRUCTURE

The success of an organization heavily depends upon the organizational structure of the firm. The organizational
structure determines who reports to whom and the authority of the employees of the organization. In this regard
general fan company is also performing well because they have a well disciplined, educated and trained
organizational structure. Following is the comprehensive detail of the organizational structure of the general fan
company.
HAJI MUHAMMAD ILYAS

PRODUCTION SYSTEM
In production system all process involved from purchasing raw material and to convert this raw material into finish
goods. In this project we have selected GFC FANS and we explain all the production system of GFC fans such as
how they purchase raw material, all processes which are including checking quality as well as quantity, inspection of
the products which are manufactured, packaging and convert them into finish goods. Now we explain all these
processes in detail. In this company production system mostly depend upon manual work and technically. But they
really on technology because they have less educated and efficient labor.
MARKETING DEPARTMANE
Marketing is the department which provide base to the production department. Marketing department is the main
strength of general fan company. It is the department with the responsibility of creating customers demand.
Marketing department focuses on the changing trends of the customers demand and inform the production
department which quality and quantity is required. Then production department will take actions to meet the
mentioned demand.
Market identify demand from different target markets
Local market
Foreign market

RAW MATERIAL
First of all Sale and Marketing department tell the production department about their demand. Production department
made the entire plan and send it to the storeroom. In storeroom Store keeper check the stock of the raw material that
how much raw material they already have and in what quantity they need to purchase for fulfilling the demand. Store
man also checks the staff according to the demand that they have necessary staff for meeting the demand. After all
this all these details along with prepare documents send to purchase Manager Purchase manager Check all the facts
and figures and guide to Purchase Director. Purchase Director after checking all the documents pass the Purchase

order for meeting the demand. In GFC fans all these process are directed by MR.KAMRAN which is head of
purchase department.

INVENTORY MANAGMENT
Material purchased as per order using JIT concept and inventory level also managed by the management in store up
to certain limit as need base it can be used.

INCOMING DEPARTMENT
After purchasing Raw material next department in GFC fans is incoming department. In this department the quality
and quantity of the raw material is checked. A good receipt note is made when this department received all the raw
material they required and check its quality and quantity.
GFC used a computerized software which is SAAP in this software all the computerized record is kept relating to
raw material. All the bills which will clear made in SAPP.
When incoming department completing all this process they send this raw material to storeroom. Store man checks
again the quantity of the raw material. They do not check the quality of the raw material because quality is already
checked by the inspection department.

PRODUCTION PLAN AND CONTROL

This department collects information from Sale department. Actually the responsibility of this department is to issue
required material to work stations.
A material Requisition is made that is the evidence that this material has issued to the workstations. Material is
issued to work stations on daily basis, weekly basis or monthly basis. This depends on the urgency of the demand
that how quickly finish goods made.
Because all this material is stock in storeroom and it is the responsibility of store man to check the accountability of
the issued material. Store man makes the summary of all the raw material that is issued to workstations. And thats
way to verify the accountability of the material.

PROCESS LAYOUT
Basically GFC fans make related diversification and it develop its current products .GFC fans make about 80 to 85%
fans related products. Different types of Fans are made but main three types are
1) Ceiling Fan
2) Pedestal Fan

3) Glass Fan
Different types of material are used in each category such as in pedestal fans rod is used which is purchased from
specialized supplier, capacitor, iron wire and paint etc. Now we explain that how these raw materials convert into
finish goods.

MACHINING DEPARTMENT
In machining department all the components that is used to make the products is prepared. Such as winding the iron
wire, adjust capacitor etc. they have advanced machinery which helps to increase the value of their products.

ASSEMBLING DEPARTMENT
In assembling department motor is assembled when all the parts of the motor is completed. Now product which is
manufactured is in a running position almost.

INSPECTION DEPARTMENT
Inspection department check quality of the product and also check its all process Such as electricity its assembled
parts and their quality.
When all the process of the inspection is complete now an order is made for painting these products.

PACKAGING DEPARTMENT
When painting process is completed then packaging department work start. This department is the responsible for
accurate packaging because when finish products loaded in container they should not harmful. Factors which cause
the abnormal loss should reduce such as in rain water proof packaging etc. Your packaging should such a nature that
these factors could not affect the performance of finish goods.
That is all the process that how raw material convert into finish goods. When all the finish goods is made now these
goods are transferred to the main distributor according to the demand.
GFC fans make products on order basis as well as to maintain minimum requirement which is necessary for having
stock.

SALES OF FINISH GOODS

GFC fans divide country into regions and also have authorized dealer in all parts of the country. A special procedure
is adopted to get dealership rights and Company is liable to sell its products only to this dealer, no other party cannot
purchase after a specific limit of products.

GFC also have its own where house in big cities of the country to meet the demand of the dealers and customers. The
dealers of these cities purchase fans from these warehouses. It has its warehouses in Lahore, Multan, Rawalpindi and
Karachi. General Fan Company has its display room in front of the company and in display room all variety of the
products is kept through which customer attract as well as buy new and innovative product of the company it also
effect the overall sale of the company. Production Manager Mr. Adnan told us that they lead in exports but in spite of
lot of where house and dealership in all over the country they have less local market as compared to Pak fan.
Customer can buy directly from the company but in a certain limit because company cannot sale to local customer
directly after a certain limit because all the dealer of the country buy their dealership rights and they have the right to
sale the finish products to the end consumer.

DISPATCH DEPARTMENT
Dispatch department attach with sale department. All the dealers give their orders to the dispatch department.
Dispatch department compare the demand to the stock and then give the order for new production if demand
increases then stock. For meeting the urgent demand GFC fans has a certain limit of stock. When an order is fulfilled
by the dispatch department. A finish goods delivery challan is made for the accountability. The distributor which
purchases the finish good display this challan on the main gate as evidence that this purchased is made under legal
process.

ACCOUNTS DEPARTMENT
Accounts department have all the records relating to salaries, creditors, debtors and also which have a substation
effect on the financial situation on the company. GFC fans like all other companies give products on credit to its
valuable distributor and also purchase raw material on credit from suppliers.
Accounts department have a specific code about all suppliers. It is policy of the GFC fans to make payment to its
suppliers two times in a month.
Accounts department is responsible for each and every payment and receiving aspect in term of finance. When any
raw material or any machinery is purchased first of all the gate pass is made and a copy of receiving is sent to the
accounts department which afterwards make the payment arraignments. Similarly if any amount is receivable from
any debtor the amount is received by this department. The account department is not fully authorized because their
authority is limited to some extent. If amount of any transaction exceeds from mentioned limit it will be made with
the permission of managing director.

MARKET SHARE
GFC fans lead in exports but in local market Pak fan is leading. Pure competitor of GFC fans is Royal fans, Pak fan
and younis fans. The Plan of the company is to make new innovation in its current products. The company making a

Fan which is mist fan and no company in the market provide such type of FAN. Now Pak Fan follows and starts
making this product. In this year GFC fans introduced such type of fan in Glass fans category.
The Manager of Production and Plan told us that GFC has no plan to launch new product in the market. GFC make
related diversification in the market And make all the products which is linked with each other.
Production Manager Mr Adnan Told us that they have less educated Labor force. And Mostly their work is done by
the Labor. There is shortage of Labor who has knowledge of modern technology. So due to this reason they use new
technology off and on.
If there is more educated labor force then the system theka is not used and all the work is supervise by the educated
labor force.
PRODUCTS

Ceiling fans
Pedestal fans
Bracket fans
Exhaust fan
Circumatic fans
Louvre fan
Table and TCP
Mist fan
Washing machine
Room air cooler
Gas water heater
Cooler water pump
Cooler fan
Enameled copper wire
Skimming machine
Electric water heater

LIMITATION
CONCLUSION
RECOMMENDATIONS