1. introduction to the report

The major factors through which we can measure these areas are given in the actual monitor as follows:

PAKISTAN TOBACCO COMPANY INTANGIBLE ASSETS MONITOR

EXTERNAL STRUCTURE

INTERNAL STURCTURE

PEOPLE'S COMPETENCE

2004

2003

2004

2003

2004

2003

GROWTH

GROWTH

GROWTH

Revenue growth

Intangible Investment %value Added^8

No of Skilled Labour ^14

Market Share

INNOVATION

Experts with more than 5years Prof: Experience

Farmer Productivity ^1

Revenue from New Products ^9

Experts with Tertiary Degree ^15

INNOVATION

Rev. from New methods & Machinery ^10

INNOVATION

Rev From newly introduced seeds^2

EFFICIENCY

% of Work being Computerized/Mechanised

EFFICIENCY

CPMH ^11

EFFICIENCY

Tax Payments to govt ^3

Average Waste Per Worker

Value Added Per Expert ^16

Revenue Per Customer ^4

STABILITY

Value Added Margin

Rev Per Major Leaf Area ^5

Admin Staff Turn Over ^12

STABILITY

STABILITY

Time lapsed after the Last Accident

Skilled Labour Turn Over ^17

Repeat Orders ^6

Administrative Staff's Rookie Ratio ^13

Experts Seniority, Years ^18

Avg Time of Pymt to Farmer

Customer Satisfaction Index ^7

5.2.7 NOTES /REFERENCES TO THE MONITOR

1. 
   Farmer Productivity:
   

Refers to kilograms of tobacco leaf produced per hecteare by those farmers that are registered with P.T.C. or those on which P.T.C. has made investments.

2. 
   Rev From newly introduced seeds/Methods:
   

The percentage of, total revenue divided by the approximate revenue from all the newly introduced seeds i.e.

Total revenue x100

Revenue contributed by new seeds& methods

3. 
   Tax Payment to Govt:
   

It is normally measured in terms of contribution, as percentage, to the total G.D.P e.g. P.T.C. payments to Govt: Levies in 2003 were 5% of the G.D.P.

4. 
   Revenue per Customer:
   

It is the average revenue generated by an individual customer of P.T.C’s brands or its leaf customers. It is equal to

Total Revenue x100

Total No. of Customers

5. 
   Rev per Major Leaf Area:
   

Average percentage revenue is generated by P.T.C. from each of its major leaf areas e.g. Buner, Takht Bhai, Mansehra etc. It is calculated by dividing the Total Revenue by the Total No. of Leaf Areas, multiplied by 100.i.e

Total revenue x 100

Total no. of leaf areas

6. 
   Repeat Orders:
   

Share of revenues from customers buying from P.T.C also last year .i.e. Total revenue divided by No. of last year customers also ordering this year.

7. 
   Customer Satisfaction Index:
   
8. 
   Intangible Investments% value added:
   

Total profit of last year divided by all investments in research & development (leaf or seed research & new product development) and Marketing & I.T charged as cost in normal P&L A/C.

9. 
   Revenue from new products:
   

The percentage average revenue generated by new brands/ products. i.e

Total Revenue from New Products x 100

Total No of New Brands /Products

10. 
    Investment in new Methods & Machinery:
    

Means how much is invested in new methods /Machinery as a percentage of total investment

11. 
    C.P.M.H:
    

Cigarettes Produced Per Man Hour. It is obtained by dividing total number of cigarettes sticks by total Number of man hours (Labor Hours) worked. i.e.

Total No. of Cig Sticks Produced x 100

Total No. of Man Hour Worked

12. 
    Man / Labor Hours:
    

Total number of hours worked divided by total number of workers.

13. 
    Administrative Staff’s Rookie Ratio:
    

Administrative staff means employees other than experts or workers. While rookie ratio refers to the percentage number of administrative employees with less than 2 years seniority.

14. 
    Skilled Labor
    

Total number of non administrative employees (skilled, semi skilled & non skilled employees) divided by total number of skilled employees.

15. 
    Employees with a tertiary degree:
    

Tertiary degree refer to an educational level of bachelors or higher. The proportion of tertiary degree employees can be calculated by dividing total No. of administrative& non administrative staff by total number of employees with a tertiary degree.

16. 
    Value Added Per Expert:
    

It is obtained by dividing the total number of experts by total value added.

17. 
    Skilled Labor Turnover
    

It is equal to the number of skilled labor leaving divided by number of labor in the beginning of the year.

18. 
    Experts Seniority ,Years
    

It is simply the number of years for which the expert has worked at PTC.

5.2.8 RECOMMENDATIONS

• 
  Pakistan Tobacco Company is one of the most successful multinational companies operating in Pakistan. it employs the latest approaches to production and every aspect of its business. As such it is important that this new concept of measuring the intangible assets should be adopted by it as well so as to be inline with the fast changing world of business.
  
• 
  I also suggest that the monitor which I have designed is the first of its kind and therefore may possibly be subject to errors and mistakes. Thus I request the management and especially the finance department to work on it and improve it not only by themselves but it can also be assigned as a project to finance internees coming to PTC.
  
• 
  In this way, if a sound and sensible monitor develops it should be adopted as a part of the financial reports as is done world wide by number of renowned companies e.g. NOKIA & WM-data, one of Europe’s most successful computer companies.
  

REFERENCES

• 
  www.sveiby.com
  
• 
  www.sveibytoolkit.com
  
• 
  www.celemi.com
  
• 
  www.intelegin.com
  

CHAPTER#6