The document summarizes the operations strategy and management practices of Bank Islami Pakistan Limited. It discusses how the bank handles various operational processes such as project management, process design, analysis and quality control. It also covers the bank's strategies around supply chain management, location selection, forecasting and scheduling. The report finds that the bank focuses on customer satisfaction and differentiates itself through innovative services like mobile banking and cardless ATM transactions. It analyzes how the bank's operations are designed to achieve goals through efficient resource utilization while maintaining high service standards.

1. 2015
Submitted To;
Mr. Affaq Vohra
Submitted By;
AbdulBaseer
Muhammad Hammad
Saddam Hussain
Operations Management
Term Report

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ACKNOWLEDGEMENT
ALLAH is very kind, Merciful and Compassionate. His benevolence and blessings have enabled
us to accomplish this task.
We highly appreciate Mr. Muhammad Adil Ali, Operations Manager at Bank Islami Pakistan
Limited Block 14 Gulistan-e-Johar branch, for his support and collaboration.
We pay special gratitude to our honorable teacher Mr. AffaqVohra who is teaching us this
course.
The last but not least, we would feel incomplete without thanking to our parents who pray for our
success and bright future.

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CONTENT
CHAPTER NO. 1 3
1.1 Executive Summary 3
1.2 Introduction 3
1.3 Vision 4
1.4 Mission 4
1.5 Head Office 4
CHAPTER NO. 2 5
2.1 Operations Strategy 5
2.2 Project Management 5
2.3 Process Design Strategy 6
2.4 Process Analysis 6
2.5 Process Performance and Quality 7
2.6 Lean Management 7
2.7 Supply Chain Strategy 7
2.8 Location 8
2.9 Forecasting 8
2.10 Scheduling 9
CHAPTER NO. 3 10
3.1 Analysis 10
3.2 Recommendations 13
3.3 Conclusion 13
Bibliography 14

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CHAPTER NO. 1
1.1 Executive Summary
The report was commissioned to examine the operations strategy of the Bank Islami Pakistan
Limited, how the operations are managed, how they take actions on projects, how the processes
are being designed and how they process analysis, the process performance and quality
measures, the usage of lean management concept, maintaining supply chain, deciding the branch
locations, forecasting the requirements of cash at valet and last but not least the scheduling
procedure of the tasks and resources.
1.2 Introduction
The epochal idea of Bank Islami was conceptualized by Jahangir Siddiqui & Company Limited
and Rendered family in late 2003. Mr. Hasan A. Bilgrami was appointed as Adviser to the
sponsors on March 16, 2004 to formalize the idea. He presented the concept paper of Bank
Islami to sponsors on March 24, 2004. A detailed business plan was then prepared and a formal
application was submitted to the State Bank of Pakistan on May 26, 2004. On September 26,
2005, Dubai Bank joined the Sponsors and became one of the founding shareholders of Bank
Islami by investing 18.75% in the total Capital.
The State Bank of Pakistan issued a No Objection Certificate in no time on August 19, 2004 and
Bank Islami Pakistan Limited, the second full-fledge Islamic Commercial Bank in Pakistan, was
incorporated on October 18, 2004 in Pakistan.
Bank Islami Pakistan Limited was the first Bank to receive the Islamic Banking license under the
Islamic Banking policy of 2003 on March 31, 2005. The Bank envisioned to focus primarily on
Wealth Management as the core area of business in addition to Shariah compliant Retail Banking
products, Proprietary and Third party products, and Integrated financial planning services.
The State Bank of Pakistan declared Bank Islami Pakistan Limited as a Scheduled Bank with
effect from March 17, 2006. Bank Islami started its Banking operations on 7th April 2006 with
its first branch in SITE, Karachi. By the end of 2006, the Bank had 10 branches, nine in Karachi

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and one in Quetta. The Bank further concentrated in building a nationwide network and by the
end of year 2007; its branch network grew to 36 branches in 23 cities. In 2008, the Bank opened
66 new branches nationwide which expanded its network to 102 branches in 49 cites. By the end
of 2013, the Bank has achieved the target of 201 branches in 77 cities nationwide this gave Bank
Islami the distinction of having the fastest expanding network in Pakistan as well as offering the
widest network by any Islamic Bank in Pakistan.
1.3 Vision
The Vision of Bank Islami is to be recognized as the leading Authentic Islamic Bank.
1.4 Mission
The Mission of Bank Islami is to create value for our stakeholders by offering Authentic, Shariah
Compliant and technologically advanced product and services. We differentiate ourselves
through:
• Authenticity
• Innovation
• Understanding our client's needs
• Commitment to excellence, and
• Fast, efficient and seamless delivery of solution. As a growing institution, the
foundation for our performance lies on our human capital and Bank Islami remains committed to
becoming an employer of choice, attracting, nurturing and developing talent in a transparent and
performance driven culture.
The Board of Directors of Bank Islami comprises of eminent representatives. These include Mr.
Ali Hussain, Mr. Abdul Hakim Binherz, Mr. Ali Raza Siddiqui, Mr. Ali Al Shamali, Mr. Fawad
Anwar, Mr. Kamal Afsar, Mr. Hasan A. Bilgrami and Mr. Shabir Ahmed Rendered.
1.5 Head Office
11th floor, Executive Tower, Dolmen city, Marine Drive, Block-4 Clifton, Karachi.
Call at 9221-35839906 or 9221-111-BIP (247)-111

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CHAPTER NO. 2
2.1 Operations Strategy
An operations strategy for a business is the company's plan for how the business will operate to
achieve a set of goals. It transforms inputs into outputs. Compare it to a machine; the machine is
used to achieve a certain purpose or function, but all components of the machines must operate
correctly and in conjunction with each other for the machine to work successfully. An operations
strategy in a business is essentially the same thing. It defines how different components of the
business will work together to achieve success. Companies define operations strategies
differently, based on the management style and needs of the company.(Render, 2008)
Operation strategy at Bank Islami Pakistan Limited starts as a client enters the branch; they have
different departments of services for the satisfaction of their pampered clients. They have sales
representatives, counter offices and branch manager for the satisfaction of their clients.
2.2 ProjectManagement
A project is unique in that it is not a routine operation, but a specific set of operations designed to
accomplish a singular goal. So a project team often includes people who don’t usually work
together – sometimes from different organizations and across multiple geographies.
The development of software for an improved business process, the construction of a building or
bridge, the relief effort after a natural disaster, the expansion of sales into a new geographic
market, all are projects. All must be expertly managed to deliver the on-time, on-budget results,
learning and integration that organizations need. Project management, then, is the application of
knowledge, skills, tools, and techniques to project activities to meet the project
requirements.(Ritzman, 2008)
Bank Islami Pakistan Limited manages its daily operational project by breaking down the tasks
in small work groups and that is assigned to the representatives.

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2.3 ProcessDesignStrategy
Design strategy, as a field of theory and practice, refers to the integrated, holistic planning
process examining the interplay between design and business strategy. However, for most
graphic designers, design strategy simply refers to the conceptual underpinning for their creative
work.(Render, 2008)
“Design strategy is a dimensional, multifaceted plan that allows traveling down different paths,”
says Volker Durer, creative director of Durer Design Inc. in Los Angeles.
Bank Islami Pakistan Limited is encountered with a new mobile app by their close competitor
Meezan Bank Limited therefore they have to launch a mobile app for their clients for having ease
in transactions as per their requirements 24x7. They will provide different services such as
account balance checking, bill payment, funds transfer, mobile top up and feedback anytime
using their mobile phones for free.
2.4 ProcessAnalysis
Process analysis is an analysis of a process, as in a how-to or explaining how something works.
These last two types of process analysis are known as directive process analysis and informative
process analysis.
Directive process analysis shows a person how to do something, as in how to cook a turkey for
the holidays or for Thanksgiving.(Shafer, 2012)
Informative process analysis shows how something works; for example, an informative process
analysis may show how Face book works, or may show how a bicycle or car works.
The Bank Islami Pakistan Limited has identified an opportunity of new service that is card less
transaction, which is not being provided by any other bank till now. They are providing this new
service.

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2.5 ProcessPerformance andQuality
Total quality management is a philosophy that stresses three principles for achieving high levels
of process performance and quality. There principles are related to customer satisfaction,
employee involvement and continuous improvement.(Ritzman, 2008)
The Bank Islami Pakistan Limited has the service quality department which makes sure that the
processes they are conducting in their branches are satisfying their clients as they anticipated
while generating them.
2.6 Lean Management
Lean management is an approach to running an organization that supports the concept of
continuous improvement, a long-term approach to work that systematically seeks to achieve
small, incremental changes in processes in order to improve efficiency and quality.
Lean management seeks to eliminate any waste of time, effort or money by identifying each step
in a business process and then revising or cutting out steps that do not create value. The
philosophy has its roots in manufacturing.(Shafer, 2012)
The Bank Islami Pakistan Limited uses lean management by which they have removed the
unnecessary activities in their processes. Such as introducing Universal Teller counter instead of
having cash receipt, cash payment, check clearing, and online transfer counters. The only one
counter can handle the activities of all the counters.
2.7 Supply Chain Strategy
Supply chains encompass the end-to-end flow of information, products, and money. For that
reason, the way they are managed strongly affects an organization's competitiveness in such
areas as product cost, working capital requirements, speed to market, and service perception,
among others. In this context, the proper alignment of the supply chain with business strategy is
essential to ensure a high level of business performance. Despite these advances in supply chain
theory, traditional approaches to formulating and validating supply chain strategy have not been
consistently successful.(Ritzman, 2008)

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The Bank Islami Pakistan Limited uses supply chain strategy for both inflow and outflow of the
funds. They give handsome profit rate on term deposits so that the inflow is not interrupted. They
also coordinate with the cash house to provide their clients with the required cash.
2.8 Location
Being in the right location is a key ingredient in a business's success. If a company selects the
wrong location, it may have adequate access to customers, workers, transportation, materials,
and so on. Consequently, location often plays a significant role in a company's profit and overall
success. A location strategy is a plan for obtaining the optimal location for a company by
identifying company needs and objectives, and searching for locations with offerings that are
compatible with these needs and objectives. Generally, this means the firm will attempt to
maximize opportunity while minimizing costs and risks.
A company's location strategy should conform with, and be part of, its overall corporate strategy.
Hence, if a company strives to become a global leader in telecommunications equipment, for
example, it must consider establishing plants and warehouses in regions that are consistent with
its strategy and that are optimally located to serve its global customers. (Ritzman, 2008)
The location strategy here in Bank Islami Pakistan Limited plays a vital role, they decide on
locations where they have more clients awaiting.
2.9 Forecasting
Forecasts are vital to every business organization and for every significant management decision.
While a forecast is never perfect due to the dynamic nature of the external business environment,
it is beneficial for all levels of functional planning, strategic planning, and budgetary planning.
Decision-makers use forecasts to make many important decisions regarding the future direction
of the organization.
Forecasting techniques and models can be both qualitative and quantitative and their level of
sophistication depends on the type of information and the impact of the decision. The forecasting
model a firm should adopt depends on several factors, including forecasting time horizon, data

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availability, accuracy required, size of the forecasting budget, and availability of qualified
personnel.(Ritzman, 2008)
The forecasting is done at Bank Islami Pakistan Limited, the forecast the requirement of cash at
their branches, and the amount of deposit to be attracted.
2.10 Scheduling
Scheduling pertains to establishing both the timing and use of resources within an organization.
Under the operations function (both manufacturing and services), scheduling relates to use of
equipment and facilities, the scheduling of human activities, and receipt of materials.
While issues relating to facility location and plant and equipment acquisition are considered long
term and aggregate planning is considered intermediate term, operations scheduling is considered
to be a short-term issue. As such, in the decision-making hierarchy, scheduling is usually the
final step in the transformation process before the actual output (e.g., finished goods) is
produced. Consequently, scheduling decisions are made within the constraints established by
these longer-term decisions. Generally, scheduling objectives deals with tradeoffs among
conflicting goals for efficient utilization of labor and equipment, lead time, inventory levels, and
processing times.(Ritzman, 2008)
Bank Islami Pakistan Limited schedules their staff, equipment and tasks so that their daily
operations are not interrupted and are conducted in such away they achieve high standards.

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CHAPTER NO. 3
3.1 Analysis
We have analyzed that operation strategy is necessary in every type of business in the world. The
operation strategy of Bank Islami Pakistan Limited starts working when the client enters the
branch; he/she may be concern with online fund transfer, cash deposit, cash withdrawal, account
opening, remittances, receiving check books or changing money. They welcome their valuable
clients with a deep smile; ask him/ her about the purpose of the visit. According to need they ask
him to take counter token and sit in the clients waiting area and as his number is announced than
the client is guided to go on the counter. The teller listens carefully checks the details and
performs the desired operation. If there is any query from the customer side and he feels
unsatisfied with the personnel than there is a service quality officer who keeps an eye on the
services performed by their personnel.
He / she ask the clients about the bad experiences note it down and provide helpful assistance.
Any client can meet the branch manager or operations manager for the queries. Bank Islami
Pakistan Limited has a standardized time of dealing with a client not exceeding 11 minutes. They
are also providing on demand services as per client’s preferences. I like the distinguished
operational strategy of BIPL from other banks. They are providing card less ATM transactions
for their customers, they really does not let any of their client unsatisfied.
The Bank Islami Pakistan Limited breaks down their daily operations into different categories
such as Customer Services, who give direction to the clients as per their need. There are Wealth
Manager and Business Executive who deals with the account opening, loan requirement of the
client. They also have representatives for car and house finance in the branch. Core operational
activities are such as clearing, depositing cash and withdrawals, remittances and other services
are assigned to the Universal Teller.
There is also one more representative that is responsible for maintaining hygienic environment in
the branch. The bank operation starts from 9:00 am till 5:00 pm. We further analyzed the process
design strategy of Bank Islami Pakistan Limited; they use to keep an eye on their competitors in

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the marketplace. They aim to provide better services as compared to their close competitor that is
Meezan Bank. Meezan Bank Limited provided their clients a mobile app service six months ago.
Therefore in order to retain and satisfy their clients Bank Islami Pakistan Limited started
working on mobile app that will provide more value added services to the clients. It has finished
the working on mobile app and soon it will launch on Apple iTunes, Android play store and BB
App World. Further in the past era of banking in Pakistan, none of the banking institute provided
ATM services, Standard Chartered Limited identified the opportunity and provided the ATM
24x7 services to their clients.
Bank Islami Pakistan Limited introduced the valued added service card less transaction on their
ATMs. By single thumb impression identification the clients can avail all of the value added
services of the ATM. For this clients must provide required details and thumb impression to the
representative at the branch so that they are able to use this value added service.
Bank Islami Pakistan Limited the only bank using the card less transaction concept in the
Pakistan. There is no link1 option available till now because the other banks have old ATMs.
They are going to be awarded for providing this new service in the very short time period. We
also analyzed in every branch of Bank Islami Pakistan Limited there is a separate desk for the
Service Quality Officer. The duty of this representative is to main hygienic environment; provide
pleasurable experience to the clients. It also ensure that counter officer should not handle any
client more than 11 minutes, provide daily feedback of operational activities such as how many
tokens have been taken today, who was absent, any mishap with the clients and sits in the branch
till the counters are closed. Keep an eye on every activity of the staff to maintain decorum in the
branch.
We analyzed that Bank Islami Pakistan Limited uses the concept of lean management proving
this they have introduced the counter of Universal Teller instead of having different counters for
cash deposit, cash withdrawal, and remittances, online transfer. The only one counter of
Universal Teller can provide with all the needs of the other counters which we use to see in the
past. This has helped the Bank Islami Pakistan Limited to reduce cost and time by reducing the
number of staff. They also work on push and pull methods of Just in Time philosophy. They use
push method in local currency by maintain a minimum level of cash at their valet for any

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uncertainty or delay in cash delivery from cash house. They also work on pull method in dealing
the foreign currencies withdrawal, if any client demands they provide the foreign cash in two
hours to the client.
The Bank Islami Pakistan Limited uses the concept of supply chain strategy so that they are able
to receive deposits from the clients by providing them handsome profit rate so they deposit their
cash with them. They also keeps close tie with the cash house so that they have enough cash at
their branches to satisfy their clients. The clients may be interested in withdrawal of their deposit
therefore they must have sound cash balance at their valet so the clients are not frustrated and is
provided with cash when they demand. We have analyzed the location of Bank Islami Pakistan
Limited’s branches. They are some in the residential area or some in the commercial area.
The branch we visited is located in the residential area, the location decision are made by the
head office. We asked the concerned person he told us that branch should be in the commercial
area where they are able to do more business and earn more profit, he also told us we also give
full concentration to residential are because they have to satisfy the both business executives and
households. In commercial branch the staff is happy because they don’t have to do too much
work daily. The deposit amounts are huge in the commercial are compared to residential area.
When we asked the operational manager about the forecasting, he gave us today’s scenario
where profit rates are lower regulated by the State Bank of Pakistan.
As a natural psychology people want more profit in every condition but the profit rate is lower
than 8% per annum on term deposits. So the clients are more interested in withdrawing their
funds and investing in securities that provide more profit rates. Even then they have to fulfill the
demand drawn on them therefore they have to forecast and maintain the requirement of cash at
their valet so that they are to make the demand withdrawal of their pampered clients. On the
other hand it becomes very difficult situation because it has to lend loans to corporate and other
businesses on which they are surviving.
We further asked the operational manager about scheduling; he explained it is done by the head
office. They have predefined task for every personnel and have predefined operational activities
such as the bank will start operation at sharp 9:00 am they will not receive any remittance
request after 4:00 pm. Timings are also being scheduled it must send the clearing check

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deposited with them of other banks before 4:30 pm for same day clearing. They also have a to-do
list for every personnel that tasks must be done by every personnel in the branch.
3.2 Recommendations
 The branch of Bank Islami Pakistan Limited, which we have visited for our report
purpose, is performing well in their operations; they can perform better by motivating
their staff because when you become customer oriented you act according to customer
need and preferences, in this case sometimes the staff get irritated by continuously
dealing customers.
 One thing that we found in branch, was shortage of seats in customer waiting area, the
manager operations should provide proper sitting area to their valuable customers, for
better business performance of branch.
 Bank Islami should provide more functions or features in their mobile app as compare to
their competitor which is Meezan Bank; this will provide them edge over Meezan Bank.
 Another thing, by which their customers get annoyed with them is, their early branch
operations closing that is 5 pm. They should increase their duration of branch operations
in accordance with their competitors at least 5:30 pm.
 Their competitor (Meezan Bank) is growing customers by providing free check books,
pay order facility, online transactions etc. Bank Islami should also provide these main
facilities not free but at lowest cost to their customers because cost of everything matters
in every type of business, customer always wants facilities at lower cost.
3.3 Conclusion
In the end we would conclude that the Bank Islami Pakistan Limited should sort ways in which
they may have edge on their competitors of which the closet one is the Meezan Bank Limited, it
should continue to work on the policy so that they may have high standards than their close
competitor. It should introduce new kind of services before the Meezan Bank not after them.

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Bibliography
Render,B.(2008). Principles od OperationsManagement7ed. New York:Prentice Hall.
Ritzman,L. R. (2008). OperationsManagement:Processesand ValueChains8ed. Chicago:Addison-
WesleyLongman,Incorporated.
Shafer,S.M. (2012). OperationsManagementForMBAs5 ed. Sydney:JohnWiley &Sons,Inc.