Tuesday, 29 July 2014
INTERNSHIP REPORT “ALLAHDIN GROUP OF COMPANIES”
PREFACE
Assignments,
Term reports and Internship programs are the vital teaching techniques of
Bahauddin Zakariya University’s MBA (Marketing) program. The aim of such
activities is to develop a practical evaluation approach in students along with
their studies.
As an integral part of MBA (Marketing)
studies, every student has to undergo an internship program in a reputable
institution to observe daily life business practices and problems in business
life.
In
order to fulfill this purpose I have selected “ALLAHDIN GROUP OF COMPANIES”,
whose prime objective is to optimize the technical assistance in a bid to
provide the high quality product, prepared at the most modern manufacturing
facility.
I
have tried my best to make this report comprehensive to provide information
about the Allah Din Group Of Companies.
ACKNOWLEDGEMENT
I express whole
hearted thanks to almighty Allah who gave me the courage, insight and knowledge
to complete this report. During the preparation of this report I have the
benefit of useful advices and suggestions of number of people and to them I
express my thanks and appreciations.
Further, I am
very thankful to internship & program coordinator Sir Azhar Farooq for his kind and patient guidance; he gave me
precious time and provided useful information regarding the management of the
report. The whole efforts of my teachers and the knowledge they impart to us
enable me to complete this report.
I also want to
thank “ALLAHDIN GROUP OF COMPANIES”
Management for accommodating me as an internee and providing me the opportunity
to enhance my practical knowledge and giving their precious time. Especially
I’m very much thankful to Mr. Abdul Hameed (General Manager), Mr. Niazi
(Marketing Manager) Mr. Abdul Salam (Manager Human Resource). I whole heartily
thank all the officers and staff of ALLAHDIN GROUP for their kind behavior.
Dedication
This
work is dedicated to my parents, without whose caring support it would not have
been possible, and to my teachers, who passed on a love of reading and respect
for education. I also dedicated my work to my friends who helped me a lot to complete my project
TABLE
OF CONTENTS
Brief
Introduction 06
Vision,
Mission Structure 07
Nasco 07
Welcon
09
Warble
10
Weal-Ag
12
Agri
village
14
Organization
culture 16
Introduction
to department 18
Marketing
department 19
Finance
department 28
IT
Department 36
Import
Finance department 37
Packing
material department 40
Human
Resource Department 41
Purchase
department 43 Logistic department 48
Bulk
department 48
SH
& E department 50
SWOT Analysis 62
PEST Analysis 61
Activities performed in the
organization 64
Application of class room concepts 66
Recommendations 67
If I would be a manager! 68
List of
Sources 69
BREIF INNTRODUCTION
Allah Din Group is a leading pesticide
group in Pakistan. This group with its highly effective products, research,
highly qualified technical staff and keen customer focus is aiming for further
growth in Agriculture Sector to increase crop yield in future. Allah Din Group
Of Companies is not only distributing pesticides through our own distribution
network but are also supplying a complete range of pesticides to the pesticide
market.
The company’s head office is in
Lahore. The plant and corporate office in Multan. While the Ware houses in
Hyderabad, Rahim Yar Khan, Sahiwal, Multan, Lahore,
Company has 5 main manufacturing units
which are working under this group:
“Welcon
Chemicals (Pvt) Ltd”
incorporate in December 1994.
“Warble
Chemicals (Pvt) Ltd”
came into existence in 1997.
“Agri
Village International”
came into existence in 2003.
“NASCO (Pvt) Ltd” is the leading player in the Pet Bottling Production creating
value for our group requirements at all levels. It startrs working in march 2004.
“Weal-Ag
Corporation” is
mainly in business of developing, manufacturing and distributing pesticides
Management initiatives and consistency
of manufacturing excellence led to ISO-9002 certification in 1999.
Vision Statement
To be a top-tier global Corporation
providing diversified agricultural and industrial products and services in a
manner that maximizes growth in shareholder value.
Mission Statement
Allah Din Group Of Companies is a
group of national companies with highest sales in agro business, more than 1200
employees and access to many sectors, strengthening national economy
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Nasco
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ORGANIZATION STRUCTURE
BOARD
OF MANAGEMENT
It consists of the Chairman, chief
executive, general manager technical and business development manager and
general manager sales. The Board of the Company is responsible for determining
the direction and broad policies of the Group consistent with achieving the
objective of being the industry leader in creating value for customers and
shareholders.
ORGANIZATION CULTURE
Culture is comprised of
the assumptions, values, norms and tangible signs (artifacts) of organization
members and their behaviors.
While executive leaders play a large role in defining organizational culture by
their actions and leadership.
- ATTENTION TO DETAIL
It is very high in this organization.
Managers are expected to fully document all decisions and provide detailed data
to support their recommendations with the precision and analysis.
- OUTCOME ORIENTATION
Management is concerned with outcome
i.e high productivity regardless of the impact on employee morale or turnover rather
than how these outcomes are achieved.
- PEOPLE ORIENTATION
This dimension is very low in this
company. since the company has a sole owner which takes decision as its own
regardless of the impact on people in the company.
- TEAM
ORIENTATION
It is high in the company. Company
organized the work activities in teams for employees which work in the distinct
department of the company to increase the productivity of the company.
Employees are encouraged to interact with people across functions and authority
level.
- AGGRESSIVENESS
Employees are cooperative rather than
competitive in this company. Because they work in a team work in the different
departments of the organization.
- STABILITY
It is low to moderate. Managers try
not to implement ideas that deviate much from the status quo. Company is stable
in its policies.
- INNOVATION AND RISK TAKING
This factor is encouraged. Company
gives response to the changing needs of its customers. Management prides itself
on its experimenting with new technologies and its success in introducing
innovative products.
INTRODUCTION TO DEPARTMENTS
I have done my six weeks internship in
“ALLAHDIN GROUP OF COMPANIES”
in the corporate office which situated at 48-A Industrial Estate Multan
During my internship main activities
are performed by me in the Finance department, HR department, Account
department, Marketing Department and logistic department Bulk Department
At “CORPORATE OFFICE” I worked in the following department
- Marketing
Department
- Finance
Department
- Import
Finance Department
- Bulk
Department
- Packing
Material Department
- Account
Department
- Logistic
Department
- Human
Resource Department
MARKETING DEPARTMENT
Functions
of Marketing Department
Marketing is the most important department
of any organization, because it is to sell the product made by the
organization. The company’s marketing department provides marketing services
for the customers as well as dealers which include arranging seminars,
meetings, functions and gifts to the dealers.
Marketing department make a database
of the dealers working for the company. Company has 3500 dealers in its
database in which 2000 of Welcon and 1500 of Warble Company.
It is also the responsibility of
marketing department to send policies to company’s sale staff as well as to
send mail shorts regarding seasonal crops to the farmers.
Recently marketing department conduct
a telephonic survey with the dealers having a questionnaire. This type of
survey never conducted before this. It was first time the survey is conducted.
Marketing department select few dealers randomly out of its database list.
Questionnaire containing different
type of questions:
- Close end question
- Dichotomous
(yes/No)
- Multiple
choice questions
- Open end question
- people
replies in his own words
Marketing Management
A process of planning, organizing,
implementing and controlling marketing activities to facilitate and expedite
exchanges effectively and effectively and efficiently.
The process of planning and executing
the conception, pricing, promotion and distribution of ideas, goods, and
services (products) to create mutually beneficial exchanges.
The analysis, planning, organization,
implementation and control of the marketing activities of the firm.
Marketing strategy
Marketing strategy is the practical
application of marketing techniques. It is the analysis, planning,
implementation, and control of programs designed to create, build, and maintain
mutually beneficial exchanges with target market. The marketing manager has the
task of influencing the level, timing, and composition of demand in way that
will achieve organizational objectives.
Marketing
Strategy involves
- Profitable customer Relationship
Allah Din Group maintains the long
life customer relationship through offering the quality services, product
innovation satisfying the customer requirements, working on three C’s
convenience caring and competitive tariff exceeding the customer expectation
- Marketing Analysis
Allah Din Group compares and analyse
the market share, sales volume, product features and product prices, with its
competitor through the marketing intelligence.
- Constant market Monitoring
Allah Din Group monitors the market
activities on the daily basis, through its marketing intelligence department
and sales promotion officer.
- Market Intelligence
Allah Din Group has its own marketing
intelligence system, which provides the data and information to the marketing
department.
- Changing
the Marketing Strategy According to Demand
Allah Din Group monitors the marketing
activities through its marketing intelligence system and changes the marketing
strategy according to the marketing situation.
- Tactical Analysis & Routine
Planning Of Market Strategies
On the market side the sales people
gather information and on the bases of this information they further plan and
improve their strategies.
Checking of the designated
area, its sale, volume and growth.
Calculation of
daily sales achievements on monthly target basis
Location of
the poor performance factors and analysing their cause
Finding their
solution and getting the approval for its execution.
Planning for a
schedule for the designated area.
Visiting the
area according to the plan & reporting it to management
4P’s of Marketing
- Product
- Price
- Placement
- Promotion
1). Product
Strategy
It is headed by one senior vice
president of the Marketing .The main function of this department is to direct
the new product development and management. For this purpose the company has
appointed product managers.
All the managers findings the idea
generation and work on and prepare the feasibility report (idea screening) for
the possibility to operate.
That is the process of the new product
development and management. Allah Din Group upgrades or modernizes the product
all the time according to the customer expectation through changing and
replacing the product.
2). Pricing
strategy
The amount of money that one has to
pay to buy the product is known as price. Price is the element in the marketing
mix that generates the revenue while the other elements of marketing mix
generate cost only. The company must set its price in the relation to the value
delivered and the value perceived by the customer. Allah Din Group sets its
price in view the product itself; target the customer and competitor’s products
price.
Pricing is one of the flexible
elements of the marketing mix. Usually the companies reduce their prices to
increase sales rather than convincing buyer that their product is worth a
price. Before setting Price, Allah Din considered the following things.
- Pricing
objectives
- Importance
of Pricing for Target Customers
- Identifies
the demand
- Estimated
costs
- Competitors
Prices
Pricing is determined by decision on
market positioning. But in Allah Din Group the pricing is mainly based on
demand and supply if the demands increases the prices also increase if the
demand decreases prices are go down.
Allah Din Group using the different
types of pricing strategy at different times such as
- Value
Base pricing
- Cost
Base pricing
- Competitive
Base pricing
- Market
penetration pricing
Value Base pricing
Setting price based on buyers
perceptions of value rather than on the seller’s cost. In value base-pricing
strategy offering just the right combination of quality and good services at a
fair prices,
Cost base pricing
The simplest pricing method is
cost-plus pricing method adding a standard markup to the cost of the product.
In cost base pricing strategy
Competitive Base pricing
Allah Din Group using the competitive base
pricing strategy at the different sectors where the competition from other
companies. At that time Allah Din Group issued the competitive pricing
strategy.
Market penetration strategy
In market penetration pricing a
relatively low initial stages for the new product. The price is low in relation
to the target markets range of expected prices. The primary aim of their
strategy is to penetrate the mass market immediately and in so doing generate
substantial sales volume and a large market share. Market penetration pricing
makes the most sense under the following condition.
- A
large mars market exists for the product
- Demand
is highly elastic
- Fierce
competition already exists in the market for this product
3). Placement/Distribution
The process of making the product
available to customers at the right time to the right customers at the
convenient places. Allah Din Group is using in direct second level of
distribution to make its products available to final consumer.
Distribution channel always keep in
touch with the target customer and competitors as well. They provide all the
information ton the company which contains problems and competitors actions.
Short
and reliable channel can guarantee the company a consistent flow of products to
the final consumers. When few intermediaries are involved in the distribution
channel, the ultimate advantage of short channel shifts to the consumer because
when more and more people are involved in the distribution of the product, the
manufacturing company arranges a proportion of profit for them and in this way
all the burden of extra profit is shifted to the final consumer in the form of
high prices
PROMOTIONAL STRATEGY
The techniques of sales
promotion are used both to motivate salespersons to improve their performance
and to induce consumers to and purchase goods services. Although sales
promotion works most closely with advertising, it is also related to other
elements of marketing: production services, packaging, price, &
distribution.
WEAKNESSES OF THE MARKETING DEPARTMENT
Decisions are by the management
without considering the practical and operational problems of the Marketing
Department. Marketing department is a follower
then initiatives. The performance of sales force is not remarkable due to
following reasons.
- Lack
of Consistency
- Lack
of professionalism
- Inadequate
training
- Inadequate
manpower
- Attitude
problems
FINANCE
DEPARTMENT
A Finance Manager is responsible for
different affairs of departments and reports to General Manager. There are
three sections, which are working under the Finance Manager.
- Accounts
Section
- Stores
& inventory Section
- IT
Deparment
Stores
Company
has 3 big stores in which the products of company’s are arranged properly. The
store section issues these products subject to availability of these items.
Every product in store is arranged properly, so it is easy for storekeeper to
find these products. Every product is issued after approval of related
managers.
- They are responsible for the
entire inventory and its conditions
- They
are placing the inventory in different stores and make supply easy to the
production department.
- They
are reporting the inventory information to the Logistic department &
Account department.
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Inventory Management
The
software (Oracle Base) in which all the records of inventories are store and if
any information needed they can just put the code of that product and in a
second they can get all the information about that product.
Oracle
base software is installed in the company last year, before that the manual
system was used, which take much time in finding the information and results.
Now, the computerized system makes the work very easy and efficient.
There
are following three kinds of inventories.
- Finished goods
- Raw material
- In-process
Finished Goods
The
inventory prevail in the finished goods form and ready for sale is called
finished goods inventory.
Raw Material
The
inventory which is store in the stores and not in use is the raw material
inventory but it is direct material. The example for that is lime stone placed
in the store and used n some future period.
In-process
The
inventory purchase for the use of production and already in process is called
the inventory in process.
Responsibility
of Store Department in Inventory Management
- The store department is playing a
vital role because
- They are responsible for the
entire inventory and its conditions.
- They are making the order against
indent and EOQ (economic order quantity)
- They are placing the inventory in
different stores and make supply easy to the production department.
- They are reporting the inventory
information to the planning department, production department &
purchase department.
- They are recording the entire
inventory used in production or anywhere
Responsibilities
of the Production Department
The
production department is liable for the following things:
- Reporting about the production
situation that how much they are able to produce and how much the capacity
plants have.
- How much the material they needed
for production.
- How much order can place by the
purchase department.
- Reporting information of
production to the planning department.
- How to plan the production and
that to how much to produce.
- Introduce the new strategies of
production.
- The important responsibility is
that, how to face the competition and satisfying the consumers/customers.
- Signing and approving the orders
and receipts of inventory.
Account Section
The
accounts and store section works under the finance department. The main purpose
of Accounts section is proper book keeping of all the accounts. Bookkeeping
involves the following important things.
- Sales Tax
- Income Tax
- Imports
- Pre paid Expenses
- Lease Expenses
- Petty Expenses (Medical Bills,
TADA, Patrol, Toll Tax Bills)
- Utility Bills
- Store receipts and issues
- Salary
- The company pays Sales Tax and
Income Tax. Income Tax is paid annually on the basis of Income Tax
returns.
- There are two types of Sales tax.
- Input Sales Tax
- Output Sales tax
Input Sales Tax
Input
Sales Tax is a tax, which is paid when we purchase Plant machinery, spare
packing material, raw material etc.
Output Sales Tax
Output
Sales Tax is a Sales Tax, which is paid to Government on sales product, fixed
assets and scrap (Machinery parts which are not usable) sale.
Output Sales Tax = Scrape
Sale + Sales Product + Fix Assets Sale
Sales
Tax is paid at the rate of 15% on sales product, scrape sale and fix assets
sale of registered things and 15% plus 1.5% on non-registered sales product,
scrape and fix.
The
Net Sales tax will be:
Net Sales Tax = Output Sales Tax –
Input Sales Tax
Accounting Convention
These
accounts have been prepared under the historical cost convention, except that
certain fixed assets have been included at revalued amounts and certain
exchange elements have been incorporated in the cost of relevant assets.
Provisions
A
provision is recognized in the balance sheet when the group has a legal or
constructive obligation as a result of a past event, and it is probable that an
outflow of economic benefits will be required to settle the obligation.
- Trade and other payables
- Trade and other payables are
stated at their cost.
Taxation
Current
Provision
for current taxation for the company is based on taxable income at the current
rates of taxation after taking into account available tax credits and rebates,
if any, or one-half of one percent of turnover, whichever is higher.
Deferred
Deferred
tax is provided using balance sheet liability method, providing for temporary
difference between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The amount of
deferred tax provided is based on the expected manner of realization or
settlement of the carrying amount of assets and liabilities, using the current
rates of taxation.
Investments
- Investment in associates is
accounted for under the equity method of accounting
- Investment in other companies
- Investments in non-listed equity
security classified as available for sale are stated at cost less
provision for impairment.
- Stores and spares
- Stores and spares are valued at
moving average cost. Items in-transit are valued at cost comprising
invoice values plus other changes incurred thereon.
- Trade debt and other receivables
- Trade debt and other receivables
are stated at cost less impairment losses.
- There are following things, which
have all the details in the annual report. These things are:
- Statement of compliance
- Staff retirement benefits
- Tangible fixed assets and
depreciation
- Foreign currency transaction
- Revenue recognition, etc.
Nominal Ledger System
This
is complete Accounting Information System. So being AIS it provides and
facilitates complete accounting solutions. All kind of accounting reports can
be generated through it. Four types of vouchers are generated through it like
Payable Voucher when the material is delivered a liability is created on the
basis of invoice and GRN (goods received note), and Cash Voucher the amount
payable less than Rs. 1000. Bank Voucher issued against more than Rs. 1000
payment, and Journal Voucher for the payments made in advance to the venders.
So
all kinds of accounting information is being collected from it starting from
payments to venders, contractor, salary, income tax, sales tax, cost, cash
payments etc.
Confidential Ledger System
It
is a type of TPS that keeps the records of the payments made to the managers.
This also includes their increments, entitlements and medical allowances.
Fixed Assets System
It
is a transaction processing system, which keeps all the information about the
plant, machinery and all those assets, which are fixed in nature. The
information can be about the purchase, sale disposal or depreciation of the
asset.
Statutory Accounting System
This
system keeps the records of all financial transactions made with in a certain
accounting year and in this way relates to the transaction processing system.
The financial statements include the income statement and balance sheet, which
are produced for the use of head office only.
Sales and Receivable System
It
is the system that maintains all the records regarding the sales made to the
suppliers and customers and defective material returned and since all these
come into the category of transaction, this is a transaction processing system.
Stock and Dispatches System
This
database is about the stock lying in the godown and the stock that has been
dispatched from time to time. When the stock is issued from the store, an
issuance slip is issued and when the stock is added into the store, requisition
slip is issued. This is also a transaction processing system since it keeps the
records in the form of transactions.
Information Technology Section (IT)
All the new enhancements in the field
of Information Technology were updated time by time in IT section. The major
responsibilities and areas of operation of IT section are as under.
- Maintaining
the LAN environment and Database Management Systems
- Updating
all new enhancements in network and Databases
- Analyze
the design of program and implementation of new software
- Enhancement
of existing systems
- Procurement
of hardware
- Training
of new users for operating environment
- Maintenance
agreement of hardware and software
- Work
on development projects and generation of reports
- In
order to achieve the above objective, all operating environment is
monitored by analyzing the management needs and trends of different users
over a period of time. Remedial action is planned and taken in case of
deviations or inefficiencies in process.
IMPORT FINANCE DEPARTMENT
Allah Din group of companies import
goods (pesticides) from China, Malaysia, India, United Kingdom. 70-80 %
pesticides are imported from the different countries. But maximum imports from
China.
The company Imports goods in two
forms:
- Raw
material
- Formulated
product
Letter
of Credit:
Letter of credit is of two types:
- Sight
L/C
- Usance
L/C
Different
Parties Involved In L/C’s
- The Buyer
- Issuing Bank
- Exporter/Seller
- Paying/Negotiating Bank
Allah din
group of companies do import financing through the different banks:
- Askari Bank
- City Bank
- Bank Alfalah limited
- Saudi Pak commercial Bank Limited
- Albarka Islamic Bank
Company is
exercised Murabaha Islamic mode by Albarka Islamic Bank to finance the L/C. The
bank itself imports the required goods and then sells these goods to the
importer on Murabaha Agreement.
Murabaha
financing requires the bank and the importer to sign at least two agreements
separately;
- One for the purchase of the goods
- The other for appointing the importer as the
agent of the bank (agency agreement)
Insurance
The
insurance company covers the risk of the goods while in transit. Imported goods
are insured with “ADAM GEE” insurance company under two policies:
- Open Marine policy
- Cover Notice
How
a letter of credit is opened??
- After obtaining import license from the
ministry of commerce, the importer will request his bank to issue a letter
of credit in favor of the exporter.
- The bank asks importer to take an insurance
policy of the value of goods. The importer’s bank after being fully
satisfied will issue a letter of credit in favor of the exporter. The L/C
sent to the negotiating bank in the exporter’s country.
- When a L/C is received by the exporter, he then
ships the goods and presents all required documents along with the bill to
the negotiating bank.
- On receipt of documents and the bill, the
negotiating bank will examine them and the payment is released by the bank
in case of clean documents.
It then forwards the documents to the issuing bank and reimburses it self
through the issuing banks account with itself.
- The exporter can obtain payment from the
negotiating bank by discounting the draft immediately after shipping the
goods and obtaining shipping documents.
Documents to
be presented for Payment
- Performa Invoice
- Packing List
- Certificate of Origin
- Certificate of Analysis
- Bill of Lading
- Insurance certificate
PACKING MATERIAL DEPARTMENT
There is a separate packing material
department in the plant at industrial estate Multan in which formulated
products are packed using the appropriate packing like carton. Bottles, labels,
tape roll, stopper, caps, seal and shrink sleeves.
I visit the packing material
department with the assistant of Account manger. It consists of a big hall in
which labor force is busy in packing the particular products. This labor is
working throughout the day. Also there is an automatic packing machine.
HUMAN RESOURCE DEPARTMENT
There is not full fledge Human
Resource Department in the company rather it’s an Administration Department.
The HR Manager is responsible for
keeping the relevant records of the management staff.
The Administration Department is
responsible for:
- Salary
structure of employees
- Medical
facilities as prescribed by the company rules
- Availability
and Maintenance of transport
- Office
maintenance
- Availability
of Stationary, files etc
- Hotel
Booking for Managers
Travelling Expense Statement
- There are 45 permanent and 82 employees on
contract working for Warble on sales staff.
- Sales staffs S.O, R.S.M, S.M claims expense sand
sent their expenses details for the payment at head office. The expenses
which are claimed by the sale staff include petrol, vehicle and
miscellaneous expenses.
- Travelling expense statement come at head office
which are prepared by the employees manually on a monthly basis then staff
enter in software at head office for records.
- Travelling expense statements should be reach at
head office before 15 of every month otherwise 5% deduction is made by the
head office on grand total in case of late submission.
- Company provides a limit for expenses like
petrol, vehicle or medical like employees can withdraw 45% of the basic
salary for his medical monthly. If
an employee claims medical expenses above 45%, it will deduct from the
expenses which are claimed by the employees.
Payroll
HR department link with the
coordinator who acts as a bridge between staff and HR Department.
Make salary sheets in such a way that
there is a proper record of every employee’s salary, their joining date of
company, A/C Number and branch of the bank of permanent employees are
mentioned. New employees are entered into the sheet while the employees who
leave the organization are eliminated from the salary sheet.
Salary given to employees in 3 ways:
- Cash
payment
Employees who have salary
less than 5000 they will get salary in cash payment through petty cash
- Demand
draft
Demand draft given to
those employees which are on contact. These DD posted in the name of that
person who acts as a coordinator between the HR department and sale staff.
- Transfer
in A/C
Salary given to permanent
employee by transferring the amount into bank A/C of the particular employee.
There are 200 vehicles and 30 bikes
are given to the employees of the company which are insured annually by Adam
gee insurance company under
- Retain
policies of 5 years
- Lease
policies of 3 years
Vehicles are
leased by Faysal Bank limited which is situated at M.M Alam Road Lahore.
Company used trakker technology in case of some vehicles due to which vehicles
are found in case of theft.
PURCHASE DEPARTMENT
The company has a purchase department
as well which make purchase orders on time when requisition from the factory.
Purchase manager make order after performing series of steps:
- Demand
(anything) rises from factory
- Sent
to purchase department
- Market
analysis of product by purchase manager
- Makes
discussion with parties
- Makes
purchase order
Purchase manager makes discussion
about the payment mode of goods with the intended parties that whether the
payment in cash basis or credit basis. Most of the cases about 95% company
purchases the goods on credit basis because of the company’s sound reputation
in the market.
There are more than 200 suppliers of
different items in the lists of the company.
Responsibilities
of Purchase Department:
- Maintains
inventory at planned levels.
- It
proactively search for the best suppliers and doesn’t compromise quality
for price savings.
- Gather
quotations, evaluate bids and qualifies new supplier.
- To
make purchase order and issue to suppliers and keep a record and follow
up.
- To analyze the market and select the
best vendor for the required product.
Information Used In The Purchase Process
 |
Goods Receipt Note (GRN)
The GRN is made only when the vendor
dispatches the goods to the store.
There are following information are
included in the GRN.
- Supplier’s
address/ vendor’s address
- Mode
of transport
- Receipt
date
- Item
code
- Description
about item
- Unit
of measure
- Quantity
- Unit
rate
- Total
value & volume
- Received
by
- Area
manager responsible
Purchase Requisition Slip:
Purchase requisition slip is made by
manager or any person needed any thing for the use, but this use is relating
with the factory. The three copies of purchase requisition slip are made, one
copy is given to the purchase department, one is to store department and one
copy is taken by him. When the purchase department approves the purchase
requisition slip than the purchase order is made.
There are following information are
written on the purchase requisition slip.
- Work
order number
- Work
order date
- Where
the item will be used
- Unit
of measure
- Allocation
or cost code
- Required
date
- Quantity
of item
- Per
unit rate
- Total
value
- Item
number
- Responsible
section
- Date
- Serial
number &
- The
signatures of designated persons
- Purchase
Order (PO)
Purchase
Order
When purchase requisition is made by
any department and it is approved then the purchase department can make a
purchase order and submit one copy of that to account department and one is to
vendor. When the vendor made the delivery of the goods and receipt by store
than the store (main store) made a good receipt note for the vendor.
There are the following Information
are included in the purchase order:
- Name
of supplier
- Item
code
- Description
- Unit
of measur
- Rate
per unit
LOGISTIC DEPARTMENT
Logistic Department and Store are playing
a vital role in the dispatch of the inventory to the end users, these three
departments are worked coordinately.
People working for Warble i.e R.S.M,
S.O and S.M in different territories places orders to the concerned people of
account in the company. Then he makes a sales invoice in which Warehouse name,
area, Customer’s address, product description and sales invoice number is
mentioned.
Stock
Transfer Note
It’s the receipt used for transfer of
goods from one warehouse to another warehouse with the product description.
Filing
report
It is the report in which product
after formulation from the filling unit is mentioned having product
description.
Dispatch
summary
It is prepared for those products
which are dispatched to the required destination. It is prepared on the daily
basis.
Outward
gate pass
When order is placed then gate pass
(outward finished product) is formed in which area, date, invoice No, vehicle
No, and product description is specified which is prepared by logistic
department, verified by Account department and dispatched by store in charge.
Inward
gate pass
When the products came from the
different ware houses of the company then inward gate pass is formed.
Logistic:
The main function of logistic
department is
- dispatch
the inventories
- Judgment
of the roadmap
The logistics’ responsibility is to
determine how much distance in km is from plant to required destination and the
roadmap should be design in such a way that route should be in the way of
vehicles.
Logistic has a contract with the different
transportation companies. It make expenses on monthly basis and make expenses
summary which involve transportation expenses, loading and miscellaneous
expenses and sent it to head office for the payment.
BULK DEPARTMENT
Agri Village International is one of
the main pesticide companies of Allahdin Group which works for the Bulk
Department only. It came into existence in 2003. Agri Village International is
supplying a complete range of pesticides to farmers all over Pakistan through
distributors.
Bulk department supplies not directly
to farmers rather to distributor i.e small companies in a bulk quantity who
market the products under the label of imported by particular company of
Allahdin Group e.g Warble or Welcon. Then these small companies pack these
products in liter pack or bottles to make a supply to the farmers. The
objectives behind the establishment were to feed small distribution houses.
The products which are supplied in a
bulk quantity are of WELCON and WARBLE. Bulk Department deals the product in
drums or bags; there is no concept of liter pack or bottle in a bulk
department. Raw material like lambda, triosophos or sometime product comes
through import department to the bulk department in a bulk quantity. Agri
Village has its own separate formulation and packing plant which is situated at
Industrial Estate Multan. The imported raw materials are formulated in this
plant, after packing in drums and bags the products are ready to sale to the
distributors.
Payment mode from the small companies
by the Agri Village is completely on a “Cash
and Carry basis” i.e payment is at the spot by small companies to take away
the products from the Agri Village.
SH&E Department (Safety, Health and Environment)
The most important department in Allah
din is SH&E Department. In any organization safety, health and environment
is very important. The efficiency of any plant is measured on the basis of
safety, health and environment standards. Management of Allah din gives much
importance to safety during the process of manufacturing product to market.
Allah din has its own policy to deal with all the matters in such a good manner
to secure the employees from any accident and to save the machinery and
environment from danger or loss. The company has successfully implemented the
procedures and systems. All the employees in Allah din are fully aware of
safety measures. That is why all the employees working on the plant use the
helmets, safety shoes, gloves, specific working dress, gas masks etc.
Good Safety, Health and Environmental
(SHE) performance is essential to the continued success of Allah din. The SHE
management system is integrated into the company's overall structure and
ensures that goals are established, resources allocated, performance monitored
and corrective action taken as required. It encourages continuous improvement
in performance and has the flexibility to cope with what may be quite widely
differing needs around the world, both today and in the future. In recent years
continuous improvement has been achieved with a combination of the dedication
and commitment of all Allah din employees, good management and thorough
training, worldwide. A new set of tough SHE targets for the next five years
have been established to take into the new millennium. These targets have been
developed to deliver further improvement in performance, to help meet
increasing SHE demands in the manufacture of new and better products from fewer
raw materials more efficiently, to secure a more sustainable and a more
competitive future.
Different instruments, systems and
procedures are used in Allah din .Some of them is as under.
- House
Keeping
- Air
protector
- Dust,
Gas Mask
- Breathing
Apparatus
- Work
Permit
- Vessel
entry permit
- Chain
Block
- Emergency
shower location
- Transport
safety
- Fire
extinguishers and their use
All the devices and systems which are
used for safety, health and environment have allotted a unique registration
number for their proper maintenance and SH&E Department is responsible for
their maintenance after a specified period of time. If there is any problem in
any device or system, it is changed. Different signboards are displayed at
different places to aware people about the safety of that place. Further
different safety training sessions are held in Allah din to demonstrate the
employees about the safety methods.
If any employee affected from any
injury, he has to submit a report to higher authorities. 
If
there is any unsafe place, instrument in the Allah din and there is any
possibility of danger, a person can be affected from any injury. There are
three types of injuries that can be affected.
If
there is any unsafe place, instrument in the Allah din and there is any
possibility of danger, a person can be affected from any injury. There are
three types of injuries that can be affected.- Minor
Injury
- Classified
Injury
- Reportable
Injury Accident
In a Miner Injury, if a person is even
affected with a single cut, he must have to report immediately and receive
emergency response.
Classified Injury and Reportable
Injury Accident are more serious than minor injury. These are basically major
injuries. If a person dies, gets injured or go for leave for three days due to
this reason then General Manager has to report the Head Office in U.K. It is
called Reportable Injury Accident.
Production of different products
highly risky and extreme care should be taken while carrying out this process.
To ensure this safety, Safety Management System has been installed that keeps
the track of all the safety steps being made at Plant along with their costs,
and the expenses incurred in implementing these safety measures.
SH&E stands for safety, health and
environment. It is basically established to ensure that the workers are
performing their duties in a secured, safe and human friendly environment. This
decision support system ensures that all the health standards are duly met
whish will of course help in enhancing the efficiency and productivity of the
workers.
Local SSHE management systems are the
means by which local management implement the requirements of the SSHE Policy and Standards and local
legislation. They consist of:
Procedures and other systems: these
set out the detailed documented arrangements for ensuring that relevant
businesses are in compliance with the
SSHE Standards and local laws. Local management issues local written
procedures and their status is mandatory in the local area.
Training: ensuring people's
understanding of what is expected of them;
Auditing: checking that both
understanding and application is in place (see operational auditing below).
Procedures ensure that routine
activities are carried out precisely as required; they are the means of
controlling how things are done. Procedures are necessary where consistency is
important or where hazards exist that have the potential to cause harm to
people, property or the environment.
Writing local procedures requires
detailed knowledge and experience of the process or activity to be carried out
and the local situation. To be effective, they have to be developed, operated
and audited by people who know the local conditions.
Records required will be defined by
local procedures and are kept according to the needs of the business. They
provide evidence that the requirements of the system have been carried out and
complied with as well as providing a historical source of information and
knowledge.
This is how line managers assure
themselves that their systems are achieving the desired results. Measurement of
SSHE performance and self-assessment of the effectiveness of implementation of
the SSHE Standards are carried out
locally. There are three levels of audit used in allahdin. These are:
Operational
Auditing
This is the regular systematic
checking of activities to: It includes behavioral auditing and is carried out
by local personnel.
Specialist
Auditing
These provide periodic in-depth checks
on the adequacy of instructions or systems covering one particular aspect of
SSHE. Specialist audits may cover aspects such as security, distribution,
health, environment, engineering, fire and product stewardship. The objective
is to determine the extent to which the Management System and its
implementation:
Fulfills consistently the intent of
legislation, the SSHE Standards, relevant guidelines and recognised good
practice;
Adequately addresses local
circumstances;
Identifies and implements steps
necessary to achieve further improvement Specialist audits are conducted by
independent auditors in conjunction with local personnel.
Management
Audits
These provide an overall assessment of
the effectiveness of the local systems for managing the SSHE risks and issues
relevant to the audit unit. The objectives of a management audit programme are:
Measure, verify and report compliance
with applicable legislation, the Group SSHE Standards, other corporate
requirements and good practice;
Assess the source, quality and
management's use of SSHE data, including operational and specialist audits, in
priority setting and delivering improvement operational and specialist audits,
in priority setting and delivering improvement in SSHE performance;
Determine whether the commitment,
programme, organisation and resource to manage those risks are adequate and
confirm that the appropriate SSHE management systems are in place, reviewed and
maintained;
Review the way that management checks
that their plans and programmes have been implemented effectively;
Identify deficiencies and
opportunities for improvement and provide recommendations;
Monitor and report on the status of
implementation of unit corrective action plans.
Management audits are carried out by
management, usually senior management, from outside the audit unit.
Performance reporting takes two forms.
Performance against objectives and compliance against SSHE requirements.
Performance against objectives
Each
business is required to establish and maintain a SSHE improvement plan
that incorporates appropriate measures to ensure progress towards the allahdin
Group SSHE Objectives and achievement of our SHE Beliefs. Each location
maintains and reports performance details according to the requirements of the
Chief Executives Newsletter and Group SSHE reporting arrangements (SSHE-003).
Overall performance reported is:
Monthly: e.g. summary incident, injury
and illness data.
Quarterly: e.g. distribution or motor
vehicle accidents.
Annually: e.g. environmental burden,
implementation of product stewardship programmes.
For major SSHE incidents the Executive
Team and the CEO review the circumstances so that lessons can be shared across
the Group.
As part of the quarterly process the
Chief Executive Officer reviews with all businesses heads, the SSHE performance
of their business and measures to ensure progress towards the Group objectives.
An annual report of progress against
allahdin Group SSHE objectives prepared which includes information on legal
compliance, significant incidents and emissions of substances to air, water and
land with recognized potential environmental impact.
Compliance
against SSHE requirements
This is carried out through the
'letter of assurance' process. This formal process, required by the allahdin
Board, gives assurance of the state of compliance with allahdin Group SSHE
Policy and Standards in each allahdin Business.
To build on the improvements
stimulated by the Group Performance Objectives set in 1995, the allahdin Group
set a further, broader framework of objectives during 2000, to help drive
continuous improvement in safety, health and environment (SHE) performance and
product stewardship over the next five years. The objectives are collectively
called the SHE Challenge 2005.
SHE Challenge 2005 came into effect at
the beginning of 2001 to replace the previous Group Objectives that matured at
the end of 2000.
Fire fighters teams are also working
round the clock. They are also trained employees working in different
departments. If they are at any ware and fire works, a special alarm is on they
came hurry to the factory and take their position. They are paid some extra
amount like they got fire allowance and got regular training. Their training is
on weekly basis.
There is an assembly point out side
every department and in different areas in case any emergency occurs all the
employees, fire fighter teams and other people get together there.
There are different kinds of sign
boards fixed in different areas like Noise Area, Safety Helmet Area, No
smocking, Speed, etc. every where in the factory area.
There is a weekly session of safety
talk in every department is conducted by the supervisor of the department and
they talk on different topics of safety like house keeping etc.
There is a treatment plant for the
smoke discharged in the air, which treats the smoke and eliminates its harms.
And green project is also a part of creating smoke free environment.
There also different noise treatment
plant installed in different plants for controlling the noise.
The factory also provides different
safety equipments like:
- Safety
Heats
- Safety
Shoes
This is show, which is conducted by
the SHE department. In this different safety events are conducted by different
employees and different artists like safety drama, fire show, and quiz show
etc. in that event every body are invited like children’s society persons etc.
MAJOR COMPETITORS OF THE ORGANIZATION
Nowadays in Pesticides is growing
readily. New companies are introduced, and the existing are strengthening their
position in the market and expanding their network. The major competitor of the
Allah Din Group is Ali Akbar Group of Companies.
CRITICAL ANALYSIS
SWOT ANALYSIS
SRENGTHS
- Sound
Reputation
- Infrastructure
- Quality
of the product
- Strong
distribution network
WEAKNESSES
- Lack
of professionalism
- Inadequate
training
- Lack of
motivation
- Low
salaries
- Attitude
problem
OPPORTUNITIES
- Innovation
in the products
- Expansion
in the distribution network
THREATS
- Rapid
changes
- Customer
behavior
- Competition
- Governmental policies
PEST Analysis
POLITICAL
There is not political influence on
the organization as the chairman of the company Mr. Ch Iftikhar Nazir is the
MNA. So there is not political indulgence involve in the company. The union and
association of labors are not very much involved in the company to affect the
performance of the company.
ECONOMICAL
Now a day some economical factors like
inflation and high operating cost prevail in any organization. Being increase
in inflation rate Government has exempted sale tax on import of products due to
its high rate.
SOCIAL
Socially the company is playing a
vital role in the production of products that it completely focuses on the
safety and environment of the surrounding.
TECHNICAL
The technological factor is also
impact on the company that new information technology is prevailed in this era and
company is trying to focus on it through the software basis. Computer
facilities are given to almost all employees to accomplish work efficiently.
ACTIVITIES PERFORMED IN THE ORGANIZATION
IMPORT FINANCE DEPARTMENT
I learned how to open Letter of
Credit. I thoroughly go through all the
documents that are used in opening L/C that how it is made and what’s the
nature of these documents.
HR
DEPARTMENT
I used to make different lists of the
employees regarding the vehicles, salaries, demand draft etc on the Ms Word
& Excel. I also used to check the traveling expense statements which are
claimed by the employees of the organization by keeping in mind the three
factors which are:
- Supporting slips
Supporting slips should be attached with the expense
statement by the employees for the authentication of the expense.
- Medical fund
Medical fund as prescribed by the company rules to the
employees which are 45 % of the basic salary.
- Insurance of vehicle parts
Maintenance of only those parts of vehicles to the employees
which are allowed by the company which include service. While the other
maintenance of the vehicles is done by the company itself.
I also observe that how these expense
statements are recorded in the software which is used by the company.
PURCHASE
DEPARTMENT
I learned how a purchase order is made
and I go through all documents which are used in the purchase process such as
Goods Receipt Note & purchase requisition slip. That how a purchase
requisition slip is made by the manger in case of any need in the factory area
or head office.
ACCOUNT DEPARTMENT
I worked on the nominal ledger system
of the company that how the entries are made. Whenever any expense slips came
then Mr sarfraz (account manager) first give me to tell the nature of the entry
then after confirming me he record in the software.
Here I also worked on the “Bank Reconciliation Statement” of the
previous years that how bank statement s are matched with the company’s
statement.
I learned how to calculate the taxes
and how to make a sale tax return which is the taxes paid to the Government.
WARE
HOUSES
I used to visit the stores at the
plant located at industrial estate Multan with the logistic Manager Mr. Tanveer
to know the availability of the products, the products are set accordingly and
the products are loaded efficiently.
Learning Aspects
Internship program
has a purpose to provide the chance to fresh graduates, so that they can
implement their knowledge and skills in practical manner. It’s very beneficial
for the students of professional studies to judge the working environment
before entering in practical life.
During
my internship, I learned many managerial skills and techniques but it also
provide me the chance to implement my skills and knowledge in a practical way.
Some learning aspects are:
·
To
manage time
·
To
work as a unity
·
To
work with diversified workforce
·
To
create friendly working environment
Application of class room concepts in the organization
The concept of class room has helped
me over there in the organization in the following particular areas like
Accounting, Management which involve:
- Banking
reconciliation statement
- Making
journal entries and ledger
- Letter
of credit
- Organization
culture
- SWOT
analysis
- PEST
analysis
RECOMMENDATIONS
I will recommend some highlighted
points to having a competitive edge over the competitors to remain successful
in the market.
For this purpose, the company should
- Show
unrivalled understanding of customers and their markets seize
opportunities rapidly, taking intelligent risks to bring measurably better
products to market.
- Focus
on meet demanding year-on-year growth targets above industry norms, and
constantly improve operational performance.
- Hire,
inspire and develop outstanding people by encouraging initiatives,
supporting new ideas and rewarding delivery.
If I would be a manager!
if I would be a manager in this
company, I will try to develop the promotional activities among the employees
of this company because I noticed that
employees are leaving the organization
after spending some time over there in the organization.
Also there is a load of work on the
employees, so work is divided accordingly among the employees.
CONTACTS
LIST
- Abdul
Salam
Manager Human Resource
0302-8484334
- Asim
Rashid
Manager accounts
0300-6371664
- Faisal
Nadeem
Asst. Manger import
0300-8494938
- Sarfraz
Ahmad
Manager Accounts
042-5838850
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