Organizational structure T h e s t r u c t u r e o f t h e P a k E l e k t r o n L i m i t e d i s H yb r i d . B e c a u s e t h e o r g a n i z a t i o n combines the characteristics of functional and divisional structure in its organizationalstructure.

As the organization has grown large and have several products and marketss o i t i s o r g a n i z e d i n t o s e l f c o n t a i n e d d i v i s i o n s o f s o m e t yp e . F u n c t i o n s t h a t a r e important to each product and market are decentralized to the self contained units.However, some fun ctions that are relatively stable and required economies of scaleand in depth specialization are centralized at the management level. The functions of Accounting, Finance, Human resources, Industry relations, R&D and Informationtechnology are same for the both divisions but each division has its own separatefunctions of sales, production and marketing.

PAYMENTS TO SUPPLIERSHow does Accounts Department make payments to the companys suppliers? S u p p l i e r s e n d s C o m m e r c i a l I n v o i c e t o b u yi n g d e p a r t m e n t f o r t h e p u r p o s e o f recovery. Buying department put it forward to Accounts department. Purchase sectionofficer checks Commercial Invoice against the computer report (store) to see whatmaterial have been received that either supplier has valid right of title or not.

After confirmation, cheque is drawn in favor of supplier. Bank payment voucher is used for the internal records against the drawn cheques. COMMERCIAL DEPARTMENT Commercial Department deals with sales tax custom, and excise matters. T h i s department has been divided further on the basis of these above-mentioned activities.

IMPORT SECTION/FP DEPARTMENT PEL is an engineering concerns company introducing Deep freezer, Air-conditioner,Refrigerator, Energy meters, Transformer and Switchgears. Not even any one productis entirely manufactured in PEL by locally available raw material. But practice is that,company imports a large portion of raw material from foreign suppliers.Import section plays an integral role in achieving cooperate goals, as it is responsiblefor all imports concerned matters. Usually, this department imports: Raw-material Parts Equipment

MachineryImport activities are started from marketing- plan, in general. This plan is forwardedin systematic way and finally import plan is formulated. On the bases of import plan,import section allocates their activities. IMPORT PLAN WORKFLOWMarketing Plan Marketing department estimates future demands for companys products on yearly bases and monthly bases as well. Sales planning process reflects not only previous

sales figure but environmental conditions, too. Thats why sales p l a n i s a l s o maintained on rolling bases. Production Plan Production department takes it critically against the crucial maters of plant capacity,manpower and time constrains. With mutual consent of sales department, Financedepartment and by the approval of higher authority, Production department formulatesproduction plan with month-wise breakup. Import Plan After deciding how much units have to be produced and confirm that whatmaterial would required material planning depart m e n t w o u l d c a r r y f o r w a r d t h i s process by checking inventory level and by deciding that what, when, and how muchquantity of material would be ordered to foreign supplier. That final requirement of material for import is forward in documentary form of Import plan to commercialdepartment. Import section staff performs two types of activities and these activitiesare needed to correlate with each other. It is a big task to deal with. Under the headsof Pre -shipment activities and Post shipment activities, the import activities aregrouped. PRE-SHIPMENT ACTIVITIES Pre-qualification of supplier(s)

Before submitting request for quotation import officer assess supplier(s) either theyfulfill criteria for pre-qualification or not. Supplier should be certified by ISO 9000 or should have consistent performance regarding, Competitive price. Adherence to agreed shipment schedule. Documentation without discrepancies. Backup for technical assistance (if required.) Request for quotation After list out the preq u a l i f i e d s u p p l i e r s , c o m m e r c i a l m a n a g e r a s k s f o r t h e i r quotation. Bid Analysis Each bidder is analyzed and selected lowest bidder, but quality matter is also takeninto account. After selection, Commercial manager negotiates with the acceptable bidder to finalize all terms and conditions. Import purchase order After selection of most appropriate supplier, order is placed. Incharge import receivesa Performa invoice/ sales contract from supplier. Opening letter of credit On the month of basis schedule for L.C. is prepared with reference to annual material plan. Company mostly engages with National Bank of Pakistan in respect of openingL.C. When bank opens L.C, commercial department faxes or mails it to supplier.

Follow up the shipment schedule In case of delayed shipment, L.C is required to extend further. Import officer is alsoresponsible for that. POST-SHIPMENT ACTIVITIES Movement of consignment from Karachi After opening L.C supplier sends four types document to company through fax or mail such as: Commercial Invoice. Packing list. Bill of lading Certificate of origin.These documents are treated as non-negotiable documents. Company receives originalshipping documents through Bank. Custom clearance Custom clearing agent of the company submits Bill of entry to custom authority,and clears the consignment. Receipt of consignment at receipt store of the company After custom clearance the consignment is free. Now consignment is r e c e i v e d a t receipt store of the company. Receipt store officers assure quantity and quality of theconsignment. Otherwise company claims for damage. PROCUREMENT

PEL has state of the art methods of production and they also outsource the productsand raw material not only from Pakistan but also from Asia, America, Europe, andAfrica.So for this purpose PEL has two different departments for procurement, which are: Local Procurement Foreign Procurement LOCAL PROCURMENT Local Procurement department is responsible for all the raw materials that a r e required for making various products in the factory. It includes from nails to largemetal sheets. At the start of each financial year they receive a major plan from themanagement, which highlights all the raw material required for each product. Datesand maximum time limit for raw material requirement is also mention in this major plan.

FOREIGN PROCUREMENT Responsibilities and duties are same as Local procurement but t h e y v a r y i n t h e dimension that, they have to arrange the raw material from abroad. They also receivesame plan as local procurement for the whole financial year and develop milestones tocarry out the plan execution properly.The skill of this department is to purchase the raw material in the optimum cost that b e s t s a t i s f y t h e n e e d o f p r o d u c t i o n d e p a r t m e n t a n d a l s o t o f i n a n c e d e p a r t m e n t i n quality as well as in monetary terms respectively

Refrigerators

PEL Refrigerators were introduced in 1987 with features such as VCM (Vinyl CoatedM e t a l ) c o a t i n g ; s t yl i s h f i n i s h i n g a n d a u t o d r a i n s ys t e m s . P E L r e f r i g e r a t o r s c a r r y compressor made by Danfoss of Germany.The low noise compressor is extremely silent and keeps the refrigerator runningsmoothly. Furthermore, the compressor is resilient to fluctuations in voltage level, thereby proving to be a more durable product.The refrigerators market has experienced growth in previous years due to availabilityof refrigerators at lower prices, economic growth and the upward trend of consumers,financing at lower interest rates. PEL is actively involved in the manufacturing andt r a d i n g o f r e f r i g e r a t o r s , w h i c h i s a m a j o r s o u r c e o f c o n s i s t e n t g r o w t h . T h e refriger ators business contributes to 48% of the Companys sales and this trend isexpected continue in the coming years.Major Suppliers,- D a n f o s s Compressors GmbH of Germany provides CompressorsTeam Spezialgerate-vertriebs GmbH of Germany provides PolystyreneDanfoss A/S of Denmark provides Thermostat -BASF

A k t i e n g e s e l l s c h a f t o f S i n g a p o r e p r o v i d e s P l a s t i c Moulding Compound

Suggestions Increase Utilization of capacity

One thing that I observed during my internship that PEL could notm a k e t h e f r e e z e r a s t h e y t a r g e t . T h e y h a v e e n o u g h c a p a c i t y t o make but the less or lack of utilization of capacity they fail to meettheir targets. Lack of advertisement

Other competitor companies have good marketing and advertisingc a m p a i g n s a s I o b s e r v e d t h a t n e a r t h e P E L t h e r e i s a g r e a t s i g n board of Waves. System variations

PEL should have to adopt the one system. As they are changing thes ys t e m t o E R P w h i c h is very good but they have to train t h e i r e m p l o ye e a s w e l l . T r a i n i n g p r o c e d u r e m u s t b e c h a n g e . T h e r e should be the presentation to all workers. Lack of Product range

T h e y s h o u l d h a v e t o i n c r e a s e t h e i r p r o d u c t r a n g e a s t h e i r n e w competitor SAMSANG in appliances has a lot of product range sothey also have to increase their products