saqib final report

T. U. PLASTIC INDUSTRY COMPANY (PVT.) LIMITED

42-KM, Multan Road Lahore – Pakistan.Ph.# 0092-42-5384210-15. Fax # 0092-42-5384209

INTERNSHIP REPORT

Internship Report on T. U Plastic Industry

SUBMITTED TO:SIR, MR. MUSSAFFA BUTT.

SUBMITTED BY:MR. SAQIB GHAFOOR

CIIT/SP09-MBA-126 (Marketing)/LHR

COMSATS Institute of Information Technology, Lahore.

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY LAHORE.

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In the name of Allah, most Gracious, most Merciful


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Acknowledgement

All praises are for Allah almighty that has bestowed upon human being the crown of creation and has

endowed him with knowledge and wisdom. After Allah, is the last prophet Mohammad (P.B.U.H) who

brought for us revelation and unlimited knowledge and civilized the barbarian human being.

I wish to state my heartfelt appreciation and deep gratitude to my respective course instructor and

ingenious teacher Sir. Mussaffa Butt providing me the opportunity to intensely learn the Business

knowledge for the application in practical fields and whose productive suggestions helped me a lot to

prepare and accomplish my Internship report.

Although this report base only my names but numerous people were very important to the

development of this report without the support of them I could never successfully completed this

report.

I am thankful to the staff members of T.U.Plastic Industry Company (pvt) Ltd. Who really cooperated

with me and provide us their complete guidance. They have provided me with valuable information

which helped me a lot in completion of this report. It was relatively a new phenomenon for me, but I

am quite sure that I have learned a lot from this internship. As private organizations are very much

sensitive about their secrecy, even then after taking an understanding, they let me visit the whole

organization as well as production units. I think this is a great achievement for me and I am very

thankful to the company which trusts me as well.


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I am very thankful to all the following personalities;

MR. SUCHAI ASWAPANYAWONGSE OWNER & CEO

Ms. NIT PASUKSATHITPORN PRODUCTION MANAGER

MR. KASHIF MAQSOOD PURCHASING OFFICER

MR. MAJOR (R) PARVEZ MALIK ADMIN MANAGER

MR. WASEEM ANJUM SENIOR ACCOUNTS OFFICER

MR. AMJAD AWAN MARKETING MANAGER

MR. SHAHZAD RASUL ADMIN OFFICER

MR. SHAHZAD KHAN MARKETING OFFICER

MR. IJAZ AHMED ACCOUNTS OFFICER

MR. ALI RAZA ACCOUNTANT

who made possible for me to accommodate in the organization and give me complete guidance and

also give me the required information. My special thanks to MR. SHAHZAD KHAN who made

possible for me to visit and collect the relevant data from the organization.

PREFACE


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The pre-requisite of internship program is to make the students of M.B.A, aware of the practical

expertise and to acquaint them with the real management process.

With an intention of grooming the best executives of the future, COMSATS Institute of Information

Technology Lahore has organized a comprehensive internship-training program. All the students

were placed in leading organizations of business arena to gain first hand knowledge and insight into

their management and working. So, when I was given the chance of selecting an organization, I opted

for T. U. PLASTIC INDUSTRY COMPANY (PVT.) LIMITED.

Getting a chance of working in T.U. Plastic industry proved to be very beneficial for me. I think that I

gained comprehensive insight into the working of a Raw Material Manufacturing firms. But nothing

could have been possible without the co-operation and guidance of the officers of T.U. Plastic

Industry.

After the completion of internship program, internship report has been prepared just in accordance

with the practical exposure. In preparing this report, I have put all of my best efforts and tried my level

best to give maximum knowledge. Despite all of my coherent efforts, I do believe that there will always

be a room for improvement in the efforts of learner like me.

SAQIB GHAFOOR

CIIT/SP09-MBA-126/LHR

09th August 2010.


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DEDICATION

This Internship Report is dedicated to my loving parents and my respected teachers whose efforts comes to me at this point and specially I dedicate this report to all the industrial workers, who are the real source of combustion to run the engine of economic activity in country like Pakistan, invest their days and nights but find nothing except few rupees.


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Table of Contents1. Executive Summary.......................................................................................................102. Introduction......................................................................................................................11

2.1 Overview of Organization..............................................................................................112.2 Vision Statement...........................................................................................................12

2.3 Mission Statement..........................................................................................................13 2.4 Core Values....................................................................................................................14 2.5 Company's Customers....................................................................................................17 2.6 Company's Suppliers......................................................................................................17

2.7 Company's Product Line................................................................................................173. Management Hierarchy.................................................................................................184. Decision Making Process.............................................................................................205. History Of T. U. Plastic Industry Company.............................................................226. Business Process And Policies....................................................................................257. T. U. Plastic Vehicle Tracking System.....................................................................318. Strategic Business Units Analysis..............................................................................34

8.1 SWOT Analysis ............................................................................................................368.2 Financial Analysis..........................................................................................................428.3 Industrial Analysis.........................................................................................................448.4 PEST Analysis...............................................................................................................488.5 Business Process Analysis.............................................................................................54

8.6 Porter Competitive Analysis..........................................................................................579. Departments And Their Working...............................................................................59

9.1 Production Department..................................................................................................629.2 Inspection Department...................................................................................................73

9.3 Accounts Department.....................................................................................................75 9.4 Quality Assurance & Quality Control Department........................................................78 9.5 Research & Development Department...........................................................................80 9.6 DMF Recovery Plant......................................................................................................81

9.7 Management Information System..................................................................................839.8 Marketing Department...................................................................................................84

10. My Learning As Internee............................................................................................98 10.1 Recommendations & Suggestions..............................................................................107


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11. Conclusion....................................................................................................................10912. Annexure......................................................................................................................11313. Bibliography................................................................................................................12014. Glossary........................................................................................................................12115. Blank Page...................................................................................................................122

Company Profile

Name T. U. Plastic Industry Co., Ltd.

Logo

Slogan Where Quality Matters

Established In 1993

Geographical Location Lahore

Industry Artificial Leather

Major Units Wet, Drying, Inspection, Packing

Currently Working PU Artificial Leather PVC Artificial Leather

Production Capacity PU Leather 6000000 Linear meter/ year PVC Leather 10000000 Linear meter/ year

Number of Employees 430 Employees

Mode Of Business Business to Business


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Business Based Manufacturer and Exporters Major Buyer Thailand, India, Sri Lanka

1. Executive Summary

According to our internship program I completed my internship at T.U Plastic Industry. T. U

Plastic Industry have a very strong positioned in the global market. The export volume of the T.U

Plastic Industry is very large. It exports P-U Artificial Leather for Soccer Ball, PVC Artificial Leather for

Upholstery, PVC Artificial Leather for Football, PVC Artificial Leather for Garments etc.

One term that describes P.U Plastic Industry best is constant growth. It is not a biggest

company in Lahore but its gradual growth over the years has been solid and impressive

Actually company don’t need of any kind of marketing and advertising because it has the

customers who purchase raw materials from T.U Plastic industry and distributes to all over the world.

It has a diversified product and market portfolio. T.U Plastic Industry holds a special position in

the Artificial Leather industry in the sense that it provides the largest variety and combination of raw

material to its customer under one roof.

This past half century has seen momentous developments in the world of Leather. For the

leather industry, more important development has been in terms of new standards and specifications,

new materials, and new techniques and technologies of producing high quality leather. P.U Plastic

Industry have consistently overcome these challenges, keeping its products at par with the best in the

world. It is the matter of proud and satisfaction that artificial leather produced in P.U Plastic industry

are top of the shelf items anywhere in the world.


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2. Introduction

2.1 Overview of Organization

T.U Plastic company (pvt) ltd deals with artificial leather related area. It is one of the best

companies in leather field. T.U Plastic Industry has started in 1977 with the name of Thai Urethane

Plastic Company Limited. And also company started commercial production in November 1977. The

company is owned by 100% Thai Company- T. U. Plastic Industry Co. ltd, engaged in the

manufacturing of Artificial Leather.

It has a diversified product and market portfolio. T. U. Plastic Industry holds a special position

in the Leather industry in the sense that it provides the largest variety and combination of products to

its customer under one roof.

Thai group have a very strong positioned in the global market. The export volume of the T. U

Plastic is very large. Therefore I preferred to work in this industry, in order to learn about the account

management, marketing & sales volume, organization behavior and as well as the production process

of the artificial leather. I learnt about all the phases of the artificial leather.

T.U Plastic Industry provide all the benefits to it’s employees against the harmful affects of the

leather. Company also tries the best to protect the environment against the affects of the leather.

It was initially engaged as a small unit, which is gradually expended to cover all stages of

artificial leather manufacturing. Now it has increased its capacity to a large scale and now it is one of

the dollars earning company in Lahore. Now it produces a very high quality leather which is very

popular in local market as well as in global market.

Again in 2003, the organization further expended its business at multan road lahore. T.U Plastic

Industry has constructed a new unit there for artificial leather. Now it has become like a full factory

manufacturing all kinds of Artificial Leather. About 430 employees are working in the company in

different departments as salary base and contract base. Organization is equipped with all new

machinery.

T.U Plastic Industry also become a member of Lahore chamber of Commerce and

Industry.


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2.2 Vision Statement

To be a dynamic, profitable, growth oriented Company

and to achieve excellence through commitment, integrity,

honesty and team work.


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2.3 Mission Statement

To increase consistently the value of the company

to its stakeholders by building up the company on

sound financial footings with better productivity,

excellence in quality and improved efficiency at

lower operating costs without compromising

on our principles of ethics, integrity

and professional standards.

“T.U PLASTIC INDUSTRY is a consumer driven, design oriented and an Innovative Company, aiming

to work with coherence of renowned global Brands, organizations and entrepreneurs, translating

marketing and business goals into design strategy, novelty and to attain a new product success.”


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2.4 Core Values

(a) Respect For All

(b) Integrity

(c) Hard Work

(d) Ethics

(a) Respect for All


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Does not discriminate on the basis of race, religion or ethnic background

Respect for Women

Strongly prohibit all forms of harassments. For example racial, sexual or any kind

Attract, retain and develop outstanding people

(b) Integrity

Honesty to self, colleagues and T. U Plastic

(c) Hard Work

Company mission can be only achieved by hard work

Honesty and hard work is appreciated and rewarded such as:

Incentives upon achievement of target

Performance based incentives and promotions

(d) Ethics

Professional behavior shall be entertained. e.g. gifts and favors will not be accepted

Personal beliefs of employee will be respected

Responsibility and accountability

Changes in Policies/Procedures shall be informed beforehand to the concerned

individuals

Work ethics:

Attendance

Teamwork

Appearance

Attitude

Productivity

Cooperation

Respect

Character

Communication


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Corporate Philosophy

T. U Plastic is a centralized and formalized organization. It believes in teamwork.

Code of Business Principle

T. U Plastic is an equal opportunity employer and safe guards the

Rights of gender

Religion

Race

Encourage Employees on the basis of

Education

Experience

Professionalism

The Company does not discriminate on the basis of

Color

Religion

Race

Ethnic Values

Gender

Cost

Nationality

2.5 Company’s customers.


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T.U PLASTIC INDUSTRY classified their customers into two categories. the company’s global

customers like INDIA, SRI LANKA & THAILAND companies and others are local customers. Company

follows this category at all.

2.6 Company’s Suppliers.

T.U PLASTIC INDUSTRY also get some kind of chemicals and other goods from some

companies which is used in producing the artificial leather;

Nimir Chemicals Pakistan DOP chemical

AHN Colloids Chemicals (pvt) ltd. DOP chemical

Chaudhery Industry (pvt) ltd. Fabric

Ashiana Cotton Industry Fabric

Gatron Industry Fabric

Nasir Chemical Chemical

First Imrooz Mudarba leather chemical

Oberoi Chemicals leather chemical

Polymer Marketing packing materials

2.7 Companies Product line.

T. U PLASTIC INDUSTRY is family owned manufacturing and exporting business concern of,

company making a wide range of Artificial Leather i.e.

1. P-U Artificial Leather for Shoe. (Trail basis)

P-U Artificial Leather for Soccer Ball.

2. PVC Artificial Leather for Upholstery.

PVC Artificial Leather for Shoe. (Trail basis)

PVC Artificial Leather for Football.

PVC Artificial Leather for Garments etc.


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3. Management Hierarchy

T. U Plastic Limited is highly autocratic organization in which authority is in some hands

that used to run the organization by utilizing their authority. Decision making is there at the

top most of the organization and employees find little space to implement their own decision.

Top Management

As it is a private limited company so, its shareholders is its family member and the ownership is

in between the Family members. The owner is actually own the house of Chief Executive Officer and

below him is the directors who are really very close to the CEO.

These directors are responsible to run their business. Below these directors, each department owns its

head of department who acts as a middle man in between the directors and the mangers. Head of

department usually have most of the knowledge regarding the concerned department however

directors usually own broaden vision and are responsible for strategic maker for the organization.

Middle Management

In this level of Management there are the managers and assistant manager or in some

cases there are some posting of officers who actually play a role of bridge between the top

level management and the low level management. Middle level management is the

personnel who are actually working for the organization in practical ground. As I have

described earlier that it is highly autocratic organization so middle management usually don’t

have authority to make the decision even of their daily routine task, they have to go for the

head of concerned department or towards the director. Top management usually takes strict


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action when ever middle management impose its authority and high plenty has to pay by that

particular individual. Middle management is that part of management which always remains

the victim of job insecurity and any change in the policies of top management can cause

them to loose their job. Might be this is the possible reason that efficiency level as well as

the motivational level at this stage of the employees remain at the edge of extinction.

Introduction to T. U Plastic Limited.

First Line Management

Usually in services department there exist no post of first line manager except in admin

department where some clerical posts are there who are supposed to be the first line

manager. In production level there exist supervisor posts including the general supervisor,

quality supervisor, inspection supervisor etc. People on these posts are responsible to answer

the middle management. Middle management acts as a role of bridge between the top as

well as low level management. Turnover rate at this level is very small and on the average

people work for the organization for 8-10 years.

4. Decision Making Process

As the organization is highly bureaucratic in its structure and organization culture is also

autocratic. Command and control of the organization is in few hands and these few hands


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are responsible for the decision making and rest of the organization is the follower who used

to follow the orders imposed by the top management. In centralization decision making,

some time when the thing is to make quick decision than it acts affectively while when in

some cases the failure of the decision very serious result.

Decision making process in T. U Plastic started from the CEO and directors which is called the

competent authority. After getting the consensus from the directors, CEO issues the order to the

concerned head of department. Head of department in some causes study the feasibility of the

decision (this happens in few cases) if the decision is feasible than HOD put forward this decision to

concerned managers or assistant managers and they implement the decisions and later on the results

are being compared that it give rise to the acquired results or not. Here the one of the major role is

also the unit manger or admin manger which on actual is responsible for the whole unit. It is more

responsible for the

administrative problems in the organization rather than the decision making.

As it is highly bureaucratic organization that’s why decision making power is in few hands,

from the head of department, the decisions got implemented to the concerned managers

and assistant manager from where it proceed further to the implementation on real grounds.

Introduction to T. U Plastic Limited

In few cases it has also some positive aspect as there is centralization of command so the

implementation of decision is not a big problem and people agitate fewer as compared to

those textile mills in which there are decentralized decision making bodies. Beside this

management can make a quick response to the external forces and this may lead to the

flexible decisions.

Decision Making Bodies


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Head of Department

Figure 1- Decision Making Process

As you can see here in this figure the decision making body at T. U Plastic limited

comprises of the competent bodies in which CEO, Dir and Admin Manager are there to

make the decisions and no other stakeholder is there.

5. History of T.U Plastic Industry.

In 1977, THAI URETHANE PLASTIC CO. LTD. THAILAND was established by Mr. Nipon

Aswapanyawongse, who had worked in the leather industry for many years. Mr. Nipon


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Aswapanyawongse had the idea of producing the artificial leather, he started his new factory. The first

years proved to be very difficult and many hurdles had to be overcome. The competition in the industry

was strong and to break into these barriers seemed to be very difficult.

So the first year THAI URETHANE PLASTIC CO. LTD. THAILAND produced small quantity of

artificial leather per month, Made out of imported materials to produces the artificial leather

manufacturing.

However, this was not what Mr. Nipon wanted. So as an entrepreneur, he started to try different

things, while not forgetting his business. He first found a local manufacturer for artificial leather.

At the same time, a continuous and still ongoing process of improvement and change in the factory

started.

Every operation step was questioned. Mr. Nipon made numerous trips to machine manufacturers all

over the world, to see what was going on in the industries and to implement this in his factory. In the

meantime, he saw a continuous growth of his business by delivering good quality products with shorter

and shorter lead times.

After that he modernized and changed the way of producing the artificial leather completely. He brings

new and more efficient ways to produce the raw material.

After that company works more and more and achieved their targets. After working a long time the

experienced is high and he know all the conditions which are in the way of business.

After him his son and the CEO of our company enter in this line and stand with his father and handle

all the business. He is a young man and get his work very seriously. He knows that the business which

his father started he brings it at the end and get all those targets which his father think.

After achieving good reputation in Thailand, he think to expand his business and in this way he started

his business in Pakistan. He know that the pakistan sports industry is very outclass and the demand of

paksitani sports is very high, so that he selected the Pakistani industry for his business.

For this purpose Mr. Suchai Aswapanyawongse started his business in Pakistan. He corporated his

company in 1993 in Lahore Pakistan. After completion of all work the company started production in

1997.


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At the early stage company setup is small and it produces a small quantity artificial leather. But the

main purpose of the company is to provide best quality products at reasonable prices.

After that Mr. Suchai saw that there is good sale of his raw material and the customer trust on his

products he expand his business and increase his setup. For this purpose he brings new technology

machines from abroad and increase his production.

All this innovations and continuous modifications made it possible for T.U Plastic to be:

♦ it is one of the big company in Lahore which produce the artificial leather at the international

standard.

♦ T. U Plastic Industry has a great setup in Pakistan and used new and modern technology based

machines which fulfill all type of requirements of the customers.

♦ Prices of artificial leather are very much controlled and very reasonable according to international

standard.

13 year of innovation - the past, the present and the future T. U Plastic industry Private Limited

is one of the few companies in Lahore industry that can trace it's history back in 13 years. T.U Plastic

is family owned manufacturing and exporting business concern of P-U Artificial Leather for Soccer

Ball, PVC Artificial Leather for Upholstery, PVC Artificial Leather for Football, PVC Artificial Leather for

Garments etc.

The third generation of the family has entered the field of international trade bringing together the

established business and family values, experience and skills coupled with pertinent business

education, knowledge and expertise. The Past - history of product innovation We would like to take

you to the corridors of rich business history of T.U Plastic industry Private Limited and its

management, which has the privilege of creating and introducing new spirit and techniques of doing

the business that became source of guidance in Lahore for small and large scale industries of leather

related goods since 1997 to this day.

Management Of T.U Plastic Industry.


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Owner & CEO.

MR. SUCHAI ASWAPANYAWONGSE

Directors.

MR. SUCHAI ASWAPANYAWONGSE

MR. BOONSONG NEDVICHIEN

Auditors.

AZHAR ZAFAR & CO.

Admin Manager.

MAJOR (R) PARVEZ MALIK

Marketing Manager.

MR. AMJAD AWAN

Financial Manager.

MR. MANIT CHENSUPHASEREE

Legal Advisor.

MR. KHAWAJA TAHIR (Corporate Law Associates)

Registered Office.

42- KM, MULTAN ROAD, LAHORE, PAKISTAN.

Major Banks In Which Company Deals.

Standard Chartered Bank

Citi Bank

Habib Bank

Bank Of Punjab


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BUSINESS OPERATIONS AND POLICIES


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6. Business Operation

6.1 Organizational Structure

The organization has following departments

Export & import

Finance and account

Human resources

Monitoring

Auditing

R/D

Lamination

Panel cutting

Inboss printing

Panel matching

Washing

Inspection

Repairing

Packing

Dispatching

6.2 Purpose and scope

The T.U PLASTIC manufactured and export all kind of artificial leather ie. P-U Artificial Leather

& PVC Artificial Leather for different purposes.

6.3 Organization Chart

The complete chart of organization is available in Annexure.


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Production Facilities

Main Premises of T.U PLASTIC having 15 acre available for manufacturing facilities and 09 acre

constructed area consist of 10 large halls for production purpose with 24/7 backup of electric

generators to fulfill the requirements of anytime delivery production order.

Sub Premises of T.U PLASTIC having 6 acre land out of which 3 acre constructed area consist of 2

large halls with 24/7 backup of electric generator.

State Of The Art Machinery

Leather making machine in wet process which has a capacity of 20000 meter per day.

Leather making machine in dry process which has a capacity of 26000 meter per day.

Embossing machine which has a capacity of 80000 meter per day.

Colorant mixing machine which has a capacity of 10 HP/ set.

DMF Recovery plant which has a capacity of 2500 kg per hour.

Quick Response Orders Production

Specially designed department which is very helpful to meet the quick response orders

production and fulfill the requirements of small and quick order needs of customers.

Production Capacity

At T.U Plastic Industry company ltd., it believes in using the most advance and state of art

technology available for processing. Its production capacity is;

P-U Artificial Leather 6,000,000 Linear Meter/ Year

PVC Artificial Leather 10,000,000 Linear Meter/ Year

PURE ARTIFICIAL LEATHER.


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T.U PLASTIC INDUSTRY produce pure artificial leather which is not only common in Pakistan but

also it has a demand in other countries. So that company believes in that “NO COMPROMISE ON

QUALITY”

Facilities

Employees Facilities

Medical care

Group insurance

Medical allowance

Transportation

Social Security

Medical Facility

Educational facility

Medical leaves

Education allowance

Marriage grant

Death grant

R & D Facilities

T. U Plastic has the broadest and most versatile product range of any kind of artificial leather.

Furthermore, it has always been our goal to maintain full ownership and control of our own product

line. Achieving this without a strong R&D is not possible. Hence the R&D has always constituted as

large part of company, especially, in theoretical and best practices competence.

T.U PLASTIC INDUSTRY has set its own standard to maintain the best quality of the product.


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System of Benefits & Facilities for Employees

Annual bonus equivalent to two month’s gross salary is given to each employee.

Each employee is given gratuity equivalent to one month’s salary (last drawn) for each

completed year at the end of employment. In case of death of an employee, gratuity is given to

his legal heirs.

Each employee enjoys the facility of 14 annual leaves with pay or they may get cash

compensation in lieu of these leaves.

All employees are entitled for 8 sick, 10 casual, and about 12 festivals leaves with pay annually.

All employees are provided insurance cover by our company through NJI insurance according

to their salary package. And in case of accidental death of any employee, the insurance

company pays double of the above- mentioned amount. Premium is paid by our company.

All employees are entitled to old age pension, which is provided by EOBI deptt. After

completion of minimum period of 5-7 years of their services. For this facility, our company pays

6 or 7 % of total salaries of the employees.

Social Security Department provides complete indoor and outdoor medical facilities to our

employees for which our company takes the burden of 7 % of total salaries of the employees.

The Labour Welfare Department on the basis of annual entitlement provides the following

facilities to our employees for which our company pays 2 % of its annual profit to the Labour

department in the shape of Worker Welfare Fund (WWF).

NJI Insurance, PESSI & EOBI Department in case of partial or total disable ness due to any

accident occurred within outside the factory premises.

All workers and supervisors are entitled to get the normal wages in case of working in overtime.

All employees get “ Ramzan Packs” containing different grocery items on Eid-ul- Fitre.

All the employees have the privilege to get 10 % to 13 % normal annually.


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Social Performance Report

Following is the social performance report of T.U PLASTIC INDUSTRY regarding social accountability

audit.

Development and communicated social policy to all our concerned personal.

Creation of social objective and targets.

Committed to elimination of child labor in our related process.

In our stitching centre monitors and being checked in entire stitching centers daily bases.

During hiring Management taking test and interview to check the mentality of job seekers.

From the last few years with our continues struggle,T.U PLASTIC social security provide the

treatment free of cost to the worker’s family.

We have displayed workers benefits boards for workers awareness.

Social security board also displayed in all production floors.

Leave policy developed communicated to all employees.

Better provision of drinking water micro biological analysis was done.

Basic need wage survey completed on simple way so that every worker easily known about

their salary.

Company is committed compliance the social, environment and health &safety standards


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7. T. U Plastic Vehicle Tracking System

One of the totally different product lines which T. U Plastic has been adopted is the high

profile technology based vehicle tracking system called V track. It is relatively new business

in which T. U Plastic is just got entered.

A vehicle tracking system is an electronic device installed in a vehicle to enable the owner or

a third party to track the vehicle's location. Most modern vehicle tracking systems use Global

Positioning System (GPS) modules for accurate location of the vehicle. Many systems also combine a

communications component such as cellular or satellite transmitters to communicate the vehicle’s

location to a remote user. Vehicle information can be viewed on electronic maps via the Internet or

specialized software.

Tracking Technologies

T. U Plastic V-track system owns several types of vehicle tracking devices . Typically they are

classified as "Passive" and "Active".

Passive

"Passive" devices store GPS location, speed, heading and sometimes a trigger event such

as key on/off, door open/closed. Once the vehicle returns to a predetermined point, the

device is removed and the data downloaded to a computer for evaluation. Passive systems

include auto download type that transfer data via wireless download.


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Active

"Active" devices also collect the same information but usually transmit the data in real-time

via cellular or satellite networks to a computer or data center for evaluation.

V-track system by T. U Plastic used both type of devices combine both active and passive

tracking abilities: when cellular network is available and a tracking device is connected it transmits

data to a server; when network is not available the device stores data in internal memory and will

transmit stored data to the server later when the network becomes available again. Beside this it also

depends on the demand of the customer what type of services he/she is being required.

Major markets

Vehicle tracking is providing following services to its customers.

Stolen Vehicle Recovery: Both consumer and commercial vehicles can be outfitted

with RF or GPS units to allow police to do tracking and recovery. In the case of LoJack, the police can

activate the tracking unit in the vehicle directly and follow tracking signals.

Asset Tracking: Companies needing to track valuable assets for insurance or other

monitoring purposes can now plot the real-time asset location on a map and closely monitor

movement and operating status.

Trailer Tracking: Haulage and Logistics companies often operate Lorries with


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detachable load carrying units. The part of the vehicle that drives the load is know as

the cab and the load carrying unit is known as the trailer. There are different types of

trailer used for different applications, e.g., flat bed, refrigerated, curtain sider, box

container.

Law enforcement or surveillance: A tracker may be hidden on a vehicle to follow the

vehicle's movements without the driver's knowledge.

Homeland Security: A tracking device can be used to monitor and control vehicles to

improve Homeland Security. This may be in the form of tracking all vehicles in a country, or tracking

specific cargoes to ensure safe transit to their destination.

Transit Tracking: This is the temporary tracking of assets or cargoes from one point

to another. Users will ensure that the assets do not stop on route or do a U-Turn in

order to ensure the security of the assets.


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Strategic Business Units Analysis

8. SBU’s Analysis


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INTERNSHIP REPORT

T. U Plastic has different strategic business units and management at T. U Plastic is well

aware that how to use these units strategically. In order to fully analyze the business units of

T. U PLastic that are wet, drying, inspection and packing, I have used different analysis which not

only give the true picture of the company’s different unit but it also gives the depiction of the

overall industry analysis in which company is currently working.

There are four types of Analysis which I have performed in order to explore the working of

the organization.

SWOT Analysis

FINANCIAL Analysis

INDUSTRIAL Analysis

PEST Analysis

BUSINESS PROCESS Analysis

PORTER COMPETITIVE Analysis

All these analysis have been performed by getting data from real time industry situation as

well as the organization. Research articles, news articles, internship reports, manuals are

being used in order to effectively analyze the working of the organization. The historical data

for the analysis has been taken or maximum 5-7 years back while current data till the august

2011 has been used. Due to lack of availability of financial reports I only perform the little bit of

financial analysis of this organization however revenue as well as cost has be mentioned by

available data on websites and other company’s documents


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INTERNSHIP REPORT

SWOT ANALYSIS


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INTERNSHIP REPORT

8.1 SWOT Analysis.

Strengths.

Advance Machinery

T.U Plastic have advance machinery use for there production and produced high standard

quality products according to customer satisfaction level.

Satisfied customers

T.U Plastic is the growing organization in the leather industry, therefore they offered premium

price on their products because customer are willing to pay that amount after receiving the desired

quality standards. So the T.U Plastic have the strong relation with the local industries as well as

international companies and all business depends upon the relationship.

Understanding of customer needs.

It’s only possible because both the parties well understand each other needs. T.U Plastic

always follow the rules and regulations and policies of international trade and meet the need of their

customers.

Experienced Staff.

T.U Plastic is in this business of manufacturing and export from last 13 years and have strong

departmental structure and competitive, qualified and experienced staff.

Competitive Rate.

T.U Plastic only manufacturer of artificial leather totally on machine so its have competitive

advantage from the quality and cost.

Relationship with customers & Employees.

T.U Plastic belief in building a long-term relationship with employees that is enriching and beneficial to

both sides.

Good financing position.

T.U Plastic also has good finance with it in the shape of general reserve. Because it has many

branches as well as three or four companies which they run so that they have no problem to finance

related.

High Tech R & D facilities.


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INTERNSHIP REPORT

T.U Plastic has high technological research and development facilities. It has effective research

department so it go for the mechanized sys tem of producing artificial leather.

Lean Manufacturing Processes.

T.U Plastic has the systematized production unit. All the process of manufacturing raw

material of leather follow the lean system. So it reduce the time and cost of manufacturing artificial

leather.

Mechanized Production.

In T.U Plastic all the production system is based on the machine. T.U Plastic invest huge

amount on research and development and acquiring the machinery. Now all the production are based

on mechanized system.

Strong Management.

It is another plus point that T.U Plastic has a strong management. Its employees are more

competent and fully skill and knowledge. They always cooperate the top management in achieving

the goals that are assigned to them. Employees are well aware about the company objectives and so

they are committed to the development of company.

Loyal Workers.

The employees of T.U Plastic are loyal with the organization specially on executive seats. They

work with their full concentration and accept responsibility of their work. Its all because of strong

management.

Quality Product.

The T.U Plastic depend upon the relationship so it provide the customer good quality leather.

The T.U Plastic has different techniques to quality check such as shape checking, cutting checking,

weight checking etc.

Weaknesses;


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INTERNSHIP REPORT

Working with limited brands.

The biggest weakness which I think is that T.U Plastic is working only the limited brands and

whenever the existing customers in any trouble or have any new opportunity then there is problem for

the T.U plastic to sustain in the market and to create new customers.

Working with limited staff on Executive Seats.

Company is working with the limited staff on executive seats which providing their services to

company from many years and they don’t have new qualified staff which fill the seats of existing staff

whenever they leave.

Centralized decision making.

There is a centralize decision making due to which there is delays in decisions taking which

required immediate response.

Employees compensation policy.

T.U Plastic also have dissatisfactory employees compensation policy that two people with

different qualification having same salary package and this is the reason of low level of motivation in

the employees of the company.

No effective HRM Department.

HRM department is not performing its duties as per the need of the organization. There is not

only the duty of HR department to hiring and firing the employes, but there should be arrange training

programs, different entertainment shows and deployment to new employees become the loyal with the

organization.


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INTERNSHIP REPORT

Opportunities

Expansion.

T.U Plastic has well infrastructure and skilled labor with it and can do expansion whenever

needed. T.U Plastic also has good finance with it and can start any new project, like T.U Plastic has

diversification in leather products like with leather product also produces leather shoes and other

related products and there is opportunity for T.U Plastic to enter into the business of leather as well.

Wide focus on global market.

T.U Plastic has great grip on local market but at the same time it tries to focus on the global

market and wants to grip on global market as well as at the local market. So in this way it tries to

produce their products according to international standard.

No much competition.

T.U Plastic is very lucky that there is no much competition in this field and the business which

this company runs is no wide and there are only 1 or 2 major competitors in the market. So that

company can easily expand it’s business and earn more and more profit from the market.


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INTERNSHIP REPORT

Threats;

Growing Global Technological Advancement.

Growing global technological advancement is the biggest threat for the company and also

company don’t has any brand name if they market there products into the market so there will be

problem that T.U Plastic products don’t have any market value because it don’t have its brand name

and also it is important for company that company advertise its products globally which is very helpful

for the company.

No Brand Name.

Company produces products with the name of customer’s brand name. so the slinging needs of

the customer can be a threat for the company. There is much competition in the leather products

manufacturer but the company still doesn’t have follow it.

Lack of Training and Development

Training and development is an important aspect of an employee’s daily working. At times,

in T. U Plastic Industry the new employees are not given the proper training. For example, the new

staff at Accounts and finance department was not given the required and proper training for the

usage of accounting software AS400, due to which they were hesitant to use that

program. As a result the efficiency of work was reduced. The major problem of ineffective

training was that the training needs were not identified properly and so it could not develop

the skills of the employees. Similarly, the training sessions are conducted very often which

was again a bad sign. T. U Plastic Industry should first of all train their trainers about the identification

of training needs and their assessment and later they should be regular in conducting the

sessions for the trainees to modify the skills of the fresh candidates to increase the

efficiency of work and the confidence of the employees.


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FINANCIAL ANALYSIS


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INTERNSHIP REPORT

8.2 Financial Analysis

The challenging trading conditions have a great impact however the performance of

T. U Plastic shows a healthy growth trend. However the increase in finance cost was greater

than the growth in income which significantly affected the bottom line. The rapid increase

in the finance cost is basically due to the devaluation of the Pak Rupee. Company had

borrowings in foreign currencies either directly or indirectly thus effecting the finance cost

very badly.

Performance

Equity of company is Rs. 419 Million.

Production reached .005 million tons, approximately.

Sales Rs. 1000 million which increased for last few years.

Profit after tax is Rs. 24 Million which increases last few years.

Having total assets of Rs. 865 Million.

Goals

Continue with its low pricing strategy

Keeping sufficient margins

Further enhancing the product and services portfolio

Ensuring seamless business process interaction with the customers

Create a highly integrated supply chain

Enhanced customer loyalty and value creation

Future Plan

Our Future Plan is to produce Good Quality Fabric by ourselves and for this purpose we are

going to install new Circular Knitting Machines, Wrap Machines and Dyeing & Finishing Machines as

per our needs for producing Artificial Leather.


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INDUSTRIAL ANALYSIS


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INTERNSHIP REPORT

8.3 Industrial Analysis

Company Lifecycle.

T.U Plastic has well established production and export units among all of its competitors. The

company is making more and more profit from its business through skilled labor and loyal

management.

In Lahore there are large no of companies which are produced leather products but not yet produce

the raw material. So that the company not facing strong competition.

Although there is no large number of competitors but T.U Plastic is working nicely and earning

reasonable profit. The company using modern techniques of production, efficient management and

loyal employees are giving competitive edge to company on their competitors. The company has

friendly relation with its suppliers and customers. The company has retaining not only its existing

customers but also increasing new customer, in this way it increasing market share. Due to excellent

management and hardworking employees the company run on the growth stage.

According to the “ECONOMIST” intelligence report of August 2003 for Pakistan the following

observations have been made: Despite Government efforts to diversify exports and widen

the industrial base.

The strong performance stemmed from two factors:

1. Increase in import quotas especially by Sri Lanka, China, India.

2. leather industry invest a huge capital in this sector.


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INTERNSHIP REPORT

Efficiency and the innovation in leather industry is the only hope to get the country out of economic

problems. Beside this economic crisis, leather industry is that industry which grows the Pakistan’s

economy so the innovation is very important and also Govt. pay it’s attention on this industry.

Competition.

The present Leather Manufacturing Industry is up against competition from smuggled, under

invoiced and mis-declared components, parts and accessories. For example, in case of

second hand machinery, there is little or no check and the competition mainly rests on lower

price. Machines smuggled especially from China, India, Taiwan are not better in quality but

are selling cheaper. A bold initiative is needed which can boost the production as capacity

and markets are there, only change in environment is need.

However if we look at the T. U Plastic Industry, T. U Plastic owns the stat of the art machinery which is

imported from the Thailand and Japan it definitely gives the competitive advantage on its

competitors. Due to globalization, there has become a price war between the local

competitors also. The leather industries are focusing more on succession planning to get

success in future. They are investing in the Research and Development sectors to cut down

the costs and to produce a high quality product.

Besides this, T. U Plastic has to face competition from:

New entrants in international market

Competition from existing customers

Economic recession

Taxation changes

Before the current time period in the age of year 1999-2006, the whole industry was in good

position in Pakistan and the exports was tremendously improving, international buyers were

moving towards the Pakistan as due to availability of quality product on a cheaper rate but


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INTERNSHIP REPORT

after the year 2007, scenario got change and due to a lot of factors Pakistan fail to face the

competition from the globalized leather units and resultantly units like T. U Plastic faces huge

losses.

The company has no large number of competitors in the local market. There is only one major

competitor in the market and that is ATS. But in this way the company has facing tough competition

from his competitors. Due to excellent management and hardworking employees make sure company

share in the market and company is giving tough time to its competitors.


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PEST ANALYSIS

8.4 PEST ANALYSIS.

PEST analysis is the analysis which we tend to perform in order to analyze the external as


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INTERNSHIP REPORT

well as the internal environment in which organization is currently working.

PEST analysis revolves around the four things.

Political Environment

Economic Environment

Social Environment

Technological Environment

Political Factors

Due political instability and rotation of governments create hurdle to sustain a single policy.

This thing creates uncertainty in business environment. Although no government complete its tenure

but every government try to facilitate the business. The company makes flexible policy which can

absorb the shocks of Pakistan business uncertainty.

There is not only the national politics involved in the working of the T. U Plastic but

international political environment has a direct influence on the working of the organization.

The changes in political government causes to change the priorities got change and it

directly affects the policies, resultantly it has a major impact on the organizations of that

particular industry.

There are many factors, which entice the organization with Government.

Tax policy

Rebate

Quota

Industrial policy of Government in term of leather manufacturer

Subsidies from Government

Labor policy


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These are the general affects which can have an impact on any industry with the changing

in government or political parties.

Economic Factors

The economic condition of Pakistan has been very uncertain from last three and four years

and put worst impact on all kinds of business of Pakistan defiantly this uncertainty put bad impact on

this company, due to shortage of electricity the production of company decrease which decreases

their margin of profit. The central bank increases the rate of interest which increases the cost of

production.

No doubt that it is the period of recession and about the entire industrial sector got affected

from it and in this case declining period of leather sector is a natural phenomenon. Economic

scenario in Pakistan and all over the word has several affect on the leather sector some of

them are.

Economic Recession

Pakistan has a mixed economy where there is both capitalism and communism prevailing so

the Government intervention in the leather sector is not on the positive side. The government

is not providing any kind of incentives nor subsides. It is constantly levying heavy taxes and

quotas. In the crisis of power faced by the country, the leather manufacturing sector has suffered a lot.

The Government did not provide any incentive to the industrial sector in such a time. The leather

manufacturing industries privately arranged their power generators in such an inflationary period. This

has increased their expenses too much that they are now unable to run their processes.

T. U Plastic has been one of the targets of such policies also. Due to this, the company has

faced an economic recession.

Pricing of Raw Material


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Due to increased global demand of leather, the production of artificial leather and other related

goods are decreasing and this in turn is constantly increasing the price of leather. The rising price of

leather has increased the prices of related goods which are based on it too much.

Oil Prices

Increase in Oil prices and leather related goods prices have caused inflation and T. U Plastic

Company’s wet and Drying units have faced recession period.

Devaluation of Currency

The strength of the Pound sterling as well as the higher cost of imported raw materials have

really made a bad impact on the Pakistan economy in this case selling cost is not aligned

with the production cost and companies are not earning as much as much they are invested

in there businesses.

Social Factors

The social factor doesn’t effect strongly on that kind of business, because the product which

they are producing is less effect due to norms and culture. The main costumers of company products

have good relation with company become delighted customers.

Due to increase in education and technological sector, the buying power of the customers is

increasing at a speedy rate. They are becoming aware about the brands and latest fashions.

Due to this, they are demanding high fashion at a low price in international market and so

the fashion trends are changing at a very fast pace. For this purpose, T. U Plastic company’s goal is

to

provide latest fashion trends with continuous improvement in leather.


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Technological Factors

When company start the business mostly work performed in a small unit but at passage of

time the company transfer this small unit into big and modern unit, in this way company not only save

the time but also save the cost by reducing their employees. Now the mostly work has been

performed through computerized system. Now in these days company use modern machines to

decrease their cost and increase their production. Due to advancement in technology not only the

accuracy of work improved but also company becomes able to fulfil their order within time.]

Technology is also a key sector in term of external environment for leather industry. The

technology is working as a substitute for man power with more efficiency. The industrialist

has a solid point that it can save cost in terms of

Error reduction

Less labor cost

In order to compete internationally the organization must have to depend on new and

advanced technology. Although the technology, which T. U Plastic was using currently, was

not very low but there is no end in business.

Use of IT in Management Information System

It can be observed that there is an increase in internet use and mobile technology at

international level but T. U Plastic Industry Company is still not able to communicate efficiently with its

foreign buyers through internet. The obsolete office equipment and the poor availability of the

internet connection are suffering their orders. T. U Plastic Company’s Management Information

System

(MIS) Department is not competitive enough to upgrade its website contents also. They do

not have the facility of mobile communication system. They are just dealing through online

service by either emails or through telephone calls. But in this competitive and global

environment they need to move to mobile communication to attain growth in E-Commerce.


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Customers

This factor effect company directly. Every business needs customers. If a business has loyal

customers then its profit is sure. The companies have small No of customers and have good

relationship with them.

Suppliers

The company mostly imports the raw material of packing, chemicals from different countries

and also from the local companies, so the cost of raw material is high. The company has good

relationship with their supplier. Due to large number of suppliers the company's bargaining power is

strong.

Labor Market

The labor is an important factor in production process. Cheaper labor is available from local

source which reduce its cost, but the labor is skilled and trained.


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BUSINESS PROCESS ANALYSIS


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8.5 Business Process Analysis

To give a genuine boost in the most transparent and fair manner, they have customer with

good brand name. The main emphasis, while targeting various markets remains however on quality

assurance, being highly competitive in rates, timely delivery and living up to their commitments till the

execution of the complete order. They are using best quality raw material, latest high tech machines

and expertise in human resources puts them in a position to produce the desired / required quality of

products to the entire satisfaction of their world wide buyers. With their dedicated efforts they have

been successful in their objective to introduce products to the world's giant buyers.

Management

The management team of T.U Plastic comprises of dedicated and highly motivated individuals,

laying much emphasis on teamwork and interdependency, which brings synergetic results.

They bring with them, experience in the sports industry and diverse educational backgrounds,

both local and international. T.U Plastic has tried to develop a company culture where quality is given

the top priority, innovation is encouraged, system are followed and fool proof inspection procedures at

every stage of production and carried out.

Quality Standards

Continuity in quality is an integral part of this organization. There is team of professionals who

head this department .Their work starts from cutting of raw material to packing. Strict quality control

measures were implemented from the beginning and at all subsequent levels to maintain standards.


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Quality Emphasis

T.U Plastic checks the product quality through different advance techniques at every step of

production process. Because company believe that only quality is the point in which company can get

that place in the customer’s heart which is most important for the comp[any.

Laboratory Testing

The organization has a comprehensive lab to check Lamination, Panels, weight of panels and

thickness checking and gave a true result. They are performing here different tests the tests are

Lamination Test

Panel cutting Test

Panel weight Test

Panel printing Test

Weight Test

Color matching

Quality checking

Thickness checking

inspection


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PORTER COMPETITIVE ANALYSIS


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INTERNSHIP REPORT

8.6 Porter Competitive Analysis.

Potential of New Entrance.

There is easy for everyone to invest in new production unit but marketing of there product is

complicated for manufacturer. So it is difficult entrance of new competitor in large scale because it

requires huge capital and loyal customer.

Bargaining Power of Buyer

Company fully dependent on its customers and has full confidence on their customer for the

running of there business because company don't have there own brand name in the international

market. So the bargaining power of customer high and it is negative for company.

Bargaining Power of Supplier

Company export raw material from different countries as well as from the local companies and

have large number of suppliers and have huge supplier market in world. So that the bargaining power

of supplier is low and it is favorable for company.

Threat of Substitute Product

The leather industry produced a large quantity of leather but not uses new technologies. There

are various countries use new technology for leather production but it is not become a successful

substitute. So threat of substitute is medium.

Rivalry among Competitor

There are not many competitors in local level and company produce good quality

product than its competitors. So rivalry among competitors is very high.


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DEPARTMENTS AND THEIR WORKING


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INTERNSHIP REPORT

9. Departments of T. U Plastic Industry Company.

As I have discussed earlier that T. U Plastic Industry is a corporation having different business

unit and each business unit has its individual working. Each unit has its own different

departments which are responsible for the working on behalf of the management.

The departments which are of strategic importance for T. U Plastic Industry limited are

Production Department

Inspection Department

Accounts Department

Quality Assurance and Quality Control Department

Research & Development Department

Management Information System (MIS)

Marketing Department

All these departments are of strategic importance and work cross functionally, the working of

one department affect the working of the other department and in this way the whole

corporation work. On broadly basis the T. U Plastic Industry has been divided on two grounds i.e.

Services departments

Production department.

In services department, there are four further departments that are services and compliance

department, admin department, human resource department, MIS department.

While in production department, there are further lists of department which are usually there

to support the production of the organization. In production wing the important departments


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INTERNSHIP REPORT

are merchandising department which is responsible for selling of the production, production

planning and control department which is responsible for planning of the production and the

raw material as well.

Quality assurance department is also there to ensure the quality of

leather. Purchase department is there to ensure to provide the accessories for the production

like chemicals, packing material, paper sheets, clothing sheets etc. For international client export

department is there which ensures the international boarder policies are being followed by the

organization

and the violation of these policies are not being done. In this way, the whole corporation work.

In my further discussion I will briefly explain all of these departments.

9.1 Production Department.


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Production department is the nervous system of the organization and its

basic task is to receive information from the merchandising department and link it to the

production. It involves the Pre-Production Analysis to ensure quality and reproducibility.

Monitoring is done for the whole production process and in this we check out the planning

implementation.

Production Processes

There are two different production process used in T.U Plastic Industry.

The processes are as follow

Wet process

Dry process

With the advance in the technology and the requirement of the customer are expand then there is

need of machinery to produce the large quantity and reduce the cost of the produce. This department

has known as PU leather manufacturing department. Here all processes use the latest machinery.

There are basically two plants are working which produces one million liner meter per month. In this

department all the procedures are done and leather is used to make the different goods. Now I would

like to show very briefly the leather production process in every department, which is main and basic

product of the company.

PU LEATHER MANUFACTURING PROCESS.

As I am earlier said that there are two processes which are used in leather manufacturing

process and they are as follow;

Wet process

Dry process

Wet Process.


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Vacumm mixerInspection & Winding

Washing

Drying

QC & Inspection

Coagulation

Wet ProcessSemi Product

Coating

FABRIC PU SOLUTION

64

WashingDryingQC & Inspection

Impregnation

DMF Recovery

BuffingSending

INTERNSHIP REPORT

WET PROCESS.

In the wet process the following procedure is done you can see this procedure by chart and now

you can understand it in well manner and also in complete as follow;

Very first of all the order is given to this department and the order shape is as follow;

WET PLANNING

JULY, 2010.

W200GGHB

10

LOT

1007P013-PV26/6452/

BLACK/58"

Thickness

is .58 to .60

mm

if on Saturday 24/7 no finish 10

lot please change to W509 then

came back for W200 again.

start 24/7 W509GGHB 6 LOT PC 10/4040/White/2R/59"

Thickness

is .88 to .90

mm

W200GGHB 4 Batch PV26/6452/white/58"/PV, Qm

Thickness

is .58 to .60

mm

W200GGH1 3 LOT PV26/6452/white/58"/PV, Qm

Thickness

is .58 to .60

mm

W511GGHWSC 3 LOT PC10/4040/2side/PV,TE

Thickness

is .96 to .98


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In this order there is also one thing is very important and that is the thickness of the leather and the

thickness level is set according to the customer’s requirement. The most commonly level of thickness

is .58 to .60 that is used in leather. In this

1 LOT ============ 6 Batches.

1 Batch ============ 1800 to 2000 meter.

In this first step all PU Solution is used in it. PU Solution means that the way in which the

solution and color is mixing for the use of next stage. In this there is follow the capacity of color in it.

They cannot use the above capacity of color in it. There is must be 1700 to 1800 kg color is used in

one batch.

After this, this PU Solution is reached in next stage that is called Vacumm Mixer. It is basically

used to abstract the air from that liquid because if the air is not abstract from that liquid then the quality

of production is effected and the production is not good. In this the vacumm rotate the liquid in which

there are used some chemicals. After that it is also checked in this stage the viscosity of the liquid. In

this there is also the limit of viscosity. The range of viscosity is 6000 to 7000. if the viscosity of this

liquid is nearby it then it is used otherwise it’s rejected and again produce the liquid. If the range is

little bit of low then there is powder which used in it to cover the viscosity and if the range is little bit of

high then DMF liquid chemical is used to cover and low the range of it.

On the other hand there is used of fabric to complete the process because fabric is a very

important part of it without it there is no productivity of leather. First of all the fabric is inspected and if

the quality of fabric is good and according to the leather then it is used in it otherwise it’s rejected.

After completing the vacumm procedure and also the fabric inspection then the next step is ready to

use because both of them are used parallel in the next stage. In the stage of coating the color which

is produced in first stage with the help of solution and some chemicals is used to coating on the fabric.

After the second stage when the coating procedure is done then this fabric is going through the

simple water tanks. In this stage there are many tanks of water through which the fabric is going on so


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that the solution is fixed on the fabric and there is no error. In this stage the main and very basic point

is that in this when the fabric is going through the water then the DMF which is used in vacumm mixer

is recovered and all this chemical is mixed in the water and the leather is in it’s original shape.

After that all the fabric is washed with simple water and then again all of this fabric is going

through the simple water so that the color solution is fixed on the fabric very tightly and there is no

error of any kind.

After completing the above procedures this fabric is enter into the drying oven which has 30 meter

length and the temperature of that oven is 150◦ to 180◦. This temperature is very high and from this

oven the fabric is going through for a long time and at the end of the oven all the procedure is done

and the leather is in it’s original shape to use in the other department.

From the drying process there is also one stage which is used according to customer needs and that

is Buffing stage. In this stage the leather is going through another machine and in this machine there

are some extra functions which are used to soft the leather according to the customer requirements

but it is not very common. So that this stage is not used very commonly.

After that the quality control and inspection stage is started. In this stage the supervisor checked the

quality and thickness of the leather and divide the leather in different categories. The categories are

based on A, B, C. In this they categorized it and then send to next department. After quality control

checking and inspection of the this leather the whole leather is ready as a semi product of wet process

and send this product to the next department for furthering used.

Dry Process.


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68PU Sollution Mixing

&Colour Mixing

Release Paper

Drying

2nd CoatingAdhesive CoatingSeprationPU LeatherInspection Lemination

1st Coating

INTERNSHIP REPORT

DRY PROCESS

In the wet process the following procedure is done you can see this procedure by chart and

now you can understand it in well manner and also in complete as follow;


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Drying

Lemination

Drying

Drying

Release Paper

F/G PU Leather

Finishing

Inspection

F/G PU Leather

R/P Inspection

BachesSubstrate

INTERNSHIP REPORT

DRY ORDERING

JULY, 2010.

ORDER DETAIL COLOR USED QUANTITY

PAPER

QUALITY

Thickness

is .58 to .60

mm

W200GGHB

(DE) 10 LOT ESR 180 SK

if on Saturday ESR 180 SK no

finish 10 lot please change to

W511GHWSC then came back

for W200 again.

Thickness

is .88 to .90

mm

start 24/7 W511GGHB 6 LOT AR60 HG

Thickness

is .58 to .60

mm

W200GG

HDEW 3 LOT EPSOM PINK

Thickness

is .58 to .60

mm

W200 GGHB

(DE) 3 LOT ORCHID

Thickness

is .96 to .98

In this order there is one thing that is very important and that is the color and solution of the

leather. These things are very important because these things are count at the end of the procedure.

In the first step of dry process there is color mixing step that is very important in dry process

because all the dry steps are based on it. In this first step the color mixing is ready according to the

customer’s requirement because the color is that made which the customer wants. After making the

color the first step is completed and the next step is started.


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In this step very first of all paper is released and in this step the paper is that used which is written

in the order according to the customer’s requirement. In this step the paper quality is very important

and paper is that used which is in the high quality.

After that the second step is started and in this step there is 1st coating of color which is ready in

the very first step of the dry process. In this stage the color is throw on the paper which is the

combination of different chemicals and also the mixer of PU solution. It is a very important stage

because if the color is not used in good way then all the next steps are not accurate.

After that the third step is started and that is the drying step and in this step the color making paper

is going through the drying machine. In this step the dry machine through which the paper is passing

is based on a highly temperature because before this process the paper is in the shape of wet

because there is coating of color so that it is very important that it going through the highly

temperature machine so that it is dry very quickly.

After this process there is need of another coating of color so that there is not a single error in it

because all the procedure based on color if there is an single error in it then all the procedure is down.

So it is very important that there is another coating of color.

After the 2nd coating of color the paper is going through the drying machine again such like as passed

in the first time. Here the same procedure is repeated and in this way there is no error of mistake and

all the procedure of coloring and drying is completed.

After that the step is started is a very important step and that is called the adhesive coating step.

In this step the paper is going through the machine from the bottom side of the machine and at the

upper side there is a piece of cloth, that is pressed on the paper by machine and both are attached

with one another. In this process it is also very important that the clothing sheet is based on high

quality. After pressed the both sheets this step is completed.

After that this single sheet that is based on two sheets is going through the drying machine which

compressed the both again and there is no error that they are not compressed.

After that the lamination process is started and in this process there is lamination on the sheet

which is add the shining in the sheet. After that this sheet is completed but before sending it to the


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next department it is very important that this sheet is checked by the supervisor and he also check the

quality of the sheet. After checking the sheet this sheet again going through the big drying machine 2

or 3 times so that all the materials attached with one another and not a single thing is opened. So that

for this purpose all the sheet going 2 or 3 times from the drying machine.

After this there is step of sepration in the next department and in this department they separate the

sheet in two sheets that are as follow

PU LEATHER

SIMPLE PAPER

In this process PU leather is separate and the paper is separate. After separating the both the

inspection team checked the leather’ quality and divided it into three categories A, B, C. After this the

leather is ready as a finished goods. And the simple paper which is taking from the leather releasing

is also inspected by the inspection team and if the quality of the paper is good and it is in the shape of

again usage then it is sending to the relevant department where the paper is again used for this

purpose. There is also another thing and that is the clothing sheet which is also very important and

the clothing sheet also inspected by the team and if the quality is maintained then it is also send to the

relevant department for again usage. After all the procedures there is packing of this material.

9.2 INSPECTION DEPARTMENT.


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After all the above procedures done at the end of inspection department and that is very

important department in the organization because all the quality matters are on the shoulders of this

department. If the goods are sold to the customer’s party and then there is any a single matter of

quality then it is the responsibility of inspection department. So that the inspection department work is

very tough.

In this department the following things are checking and also I would like to explain the following

steps in a short detail which is written in front of every step to understand the each and every step at

the point.

Here the different steps are checked by the department so that each step have its own

importance so that if there is an single error in any step then the goods are rejected and the procedure

is started from the first stage. These steps are very important in the life of T. U Plastic Industry so

that every step is very important because the company don’t compromise on it’s quality matters.


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1Tensile Strength

To check the pulling force of leather

To test the adhesive force of each laser

To check the eleasticity of leather

To check the tearing force of leatherTo check the softness of leatherCheck Ability of leather expansionCheck the flexibility

Check the strength of leather surface

Check the strength of leather surface

Compare the color shadeTo check the capacity of bearing

different seasonsTo check the weight at end of

leatherTest the ability when exposed to

light

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9.3 Accounts Department

I am working in accounts department many days because this is an order of my marketing

manager. He says that it is not a way that you worked in only marketing department and not know


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13QUV, Fade-o-meter

12Weight

11Humidity Chamber

6Stoll Abrasion

7Taber Abrasion

8Flexibility

10Spectro photo meter

5Softness

4Ply Adhesion

3Tear Strength

2Elongation

9Muller Burst

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about other departments and other things. He also says that if you know about other departments

rather than marketing department then If in future anyone offering you a job in accounts or any other

department then this internship is very helpful for you.

The accounts department of T.U PLASTIC INDUSTRY COMPANY (Pvt) Ltd. is responsible

for the entire accounting process of the organization and for an efficient handling of the accounts. The

accounts department mainly performs the following functions, maintains, and prepare following books

of accounts:

Manufacturing & trading expenses ledger.

Administrative, selling and income ledger.

Supplier ledger.

General ledger

Cashbook.

Advances to workers.

Waste stock register.

Store ledger

Journal (bank payment, bank receipt)

Stock register.

Failing of income tax return.

Preparation of Purchase Accounts

The PURCHASING OFFICER is responsible for the entire accounting process to record the purchase

made. The process to purchase and afterwards record the purchase is as follows.

The requisition department sends Demand Note to main store.

If the goods are available then stores issues, otherwise the store department sends the demand note to

the purchase department who decides either to purchase locally or import.


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After all the above procedure the request is send to CEO of the company, he check all the conditions and

also check the rate, quality and like other things, after that if all that is final then the purchase made.

After that when the purchase is made and goods are received at the main gate, security guards

check the entry pass and then refer to factory store. When the goods or material is received store

department stamped on the original receipt vouchers and send it to the accounts department. After

that one copy is in factory store office and other one is in the accounts department.

And the bills of the purchasing materials are directly received by the accounts department.

Preparation of Sales Accounts

The company sale is of two types:

Waste Sale Accounts

The company also maintains waste sales accounts which are made to the local dealers as well as

exporters.

Finished Product Sale Accounts

The Company’s finished product is Artificial Leather . First of all a contract is made between the

company and the customers. Then the goods are forwarded or supplied to the customer. The

company maintains also export sales or local sales accounts in shape of sales accounts

Cash and Banking Transactions

The cash and bank section of the accounts department makes payments to the suppliers and receives

payment from the customers. This section also maintains a cashbook in which all receipts and

payments are recorded. And all the payments are made by the company by issuing a cross cheque.

Payment to Suppliers

On the receipt of the proper purchased documents, the cash/bank payment voucher of the party

is prepared and the payment is made according to the date mentioned for payment to them.

If the amount of payment is greater than 25000/- then according to the rules of the Government of

Pakistan. A tax deduction is made and the payment of the remaining balance is made to the supplier.


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And in this the payment is also made by issuing the cross cheque. But all the petty expences are

made in cash.

Bank Transactions

Bank transactions are recorded in a separate bank loan. All the deposits and payments are

made with the approval of the CEO. Bankbook is reconciled with bank statements on regular basis

every week or month.

Salaries

All the salaries are made in admin department. And the salaries of management staff are

deposits to their bank accounts and the workers are getting their salaries from the admin department.

Salaries are fixed and are prepared by entering the attendance record of the employees. Additions of

different allowances and deductions of different liabilities and funds contributions are made there from.

In this way salaries are paid to the employees.

Wages

All sorts of wages are prepared at the factory. For this purpose, record of date and hours

worked for each worker it maintained. Therefore the wages are calculated accordingly and payment in

made to the workers.

Payroll Accounting

Payroll section at head office deals with the salaries and other types or benefits available to the

employees of the company.

9.4 Quality Assurance and Quality Control Department.

At the end I would like to explain the overall quality control flow chart of the PU LEATHER. In

this I would like to show all the procedure with a simple flow chart which is used in every organization.


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This is all about the procedure which is used in it. In this you can see that first of all there is incoming

of Raw Material then the required procedure is started and this procedure is called IN-PROCESS, and

after that when the whole procedure is done then the finished goods is ready to consumed.

The purpose of quality assurance department is to provide the customers with quality,

satisfactory and reliable testing services. The strategy is built around Plan, Do, Check and Act

(PDCA), and is reflected in the T. U Plastic Company’s quality oriented system. To achieve high

quality standards, management is continuously investing in up gradation of skills, system and

testing equipment. It also believes in training and team work for successful implementation

of high quality standards. The slogan of the T. U Plastic is to buy quality, make quality & sell

quality. At T. U Plastic, quality is first priority for getting customers satisfaction. It is cornerstone

of the success today and tomorrow.

Quality Assurance

The proactive quality assurance system at T. U Plastic aims to get it right the first time by

rectifying any discrepancies during the course of the process. All the steps involved during


QUALITY CONTROL FLOW CHART

2IN- PROCESS

1INCOMING R.M

3FINISHED GOODS

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production are documented with continuous feedback into the production process allowing it

to develop further.

The main component of quality assurance department is

Specifications of end product and its quality criteria

Documented instructions and the methodology to be followed

Performance analysis and recording system at every stage to minimize reliance on end-

product testing

Quality is a combination of Skills, System & Equipment so and continuously investment in

training our personnel, revising & improving our processes and systems and upgrading our

testing equipments. Quality checks are made at every stage of the manufacturing process

starting from raw yarn to delivery of final product.

9.5 Research and development Department

Research and development or R&D department is related with product development. It

calibrates merchandising activities and forwards the leather related information into the product

library and gets the exact match. If there is required match, Documentation and Planning is


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done, March is developed and PD (product development) Plan is made by the PD center. If

there is no exact match, Technical evaluation (Pricing), Documentation and Planning is

carried out.

Objectives

It issues the work order, tells about the style, design, counts, thickness, leather finishing

routes and leather drying.

It is responsible for to set standards for quality as well as for pricing by globally

visiting the market.

It is responsible for to develop the latest trends as well as to develop the

method for producing a quality product in a reasonable cost which the customers can afford.

Quality Product Requisition (QPR) is made in Research and development

department of T. U Plastic limited.

R&D department facilitates where an idea can be accurately converted in to product

in quickest turnover rate.

Through its proper planning research and development department is responsible for

maintain as well as for Delivering of all types of samples with speed, accuracy,

quality and competitive pricing.


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DMF RECOVERY PLANT


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9.6 DMF RECOVERY PLANT.

Basically DMF means DI METHYL FORMAMIDE which is the liquid chemical that is used to

producing the artificial leather. It is a very expensive and rare chemical and company imports it from

its home country Thailand, so that the expences are very high.

In this way CEO think about it and install a plant which is working to recover the DMF chemical

from the wastage of the water.

The working of DMF plant is shown as follow;

Very first of all the water in which the DMF is mixed are stored in the big tanks.

After that when the capacity is full of these tanks then the plant start it’s working.

After this the wastage water goes into the boilers and in this the plant shows it’s working.

After the whole working the plant get the whole chemical from the water and the simple water

goes to the tanks.

Next the chemical is stored in big tanks.

After that the department which wants to use this chemical is brings out this chemical through

pipe lines according to their requirements.

So this procedure is going on and the chemical is brings out from the water time by time.

9.7 Management Information System


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T. U Plastic has been the pacesetter in Pakistan by adopting scientific management

techniques in the leather Industry. For the purpose, an MIS department was established

quite early on and given the same freedom to innovate as any skunk works unit.

The MIS department has an in-house intellectual software development facility for delivering

a powerful stack of technology and comprehensive pre-integrated enterprise business

applications. These applications contain key functionality built specifically to enhance top level

management's control over routine operations and to support their decisions.

The following enterprise business applications have been integrated for better plant floor to

boardroom management:

AS400 Used for Payroll system, Accounts Maintain, Inventory Control, Salary Packages

Lotus Notes Used for Mailing etc.

Session Manager used for Accounts Maintain etc.

Integrated Manufacturing and Production Monitoring System (PMIS)

Besides business applications, all the individual production units have been linked up with

the boardroom, through individual ERP modules:

WET ERP System

DRYING ERP System

INSPECTION ERP System

All these three modules are integrated with intranet and a separate Management information

system is there for providing it support on back end. Beside this now T. U Plastic has make an

agreement with the SAP (system Application program) which will provide their services in the

Accounts department of the company.


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ABOUT MARKETING DEPARTMENT

9.8 Marketing Department.


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INTRODUCTION.

Marketing is the main process, for any exporting organization now a day it is important for

any type of companies, if it want to exist in the market for long time and earn mo0re reputation and

interest of customer. But the company has not very strong marketing department because company

has good reputation in the market because it is a 100% Thai company and working round about last

30 years so that it know that what is our standard and whose quality material we produce. So that in

this way it produces a little bit of costly material but no compromise on quality and that is a thing in

which its customers trust on it and dealing with it for a long time. So that company has no pay more

attention on advertising. It believe that if we produce the quality goods then it is not compulsory that

we pay a lot of money on advertising and other related goods.

Core Internship Experience.

Being a marketing internee, I was assigned a task related to marketi9ng practices. Here firstly I

am going to discuss briefly whatever I learned over there regarding other marketing practices.

Marketing department is the key department of the organization and half of the success of the

business depends upon the activities of this department because this department has direct contact

with the customers. I am reading much more in the books related to marketing but I am truly said that

there is nothing without experience. The things which I learned from my internship are not reading in

the books because the experience is that thing in which you can perform a lot of things.

Marketing department deals with two typ0es of markets;

International Market

Local Market

International Market.

Company deals with international companies so that it is a good reputation in global market.

Company deals in artificial leather so that it is a good repute in local market.

Following are the different countries in which their companies deal with T.U Plastic;

Home country (Thailand)

Sri lanka

India


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China

Local market.

Company also deals with local companies because there are no much companies in this field

so in this way the company faces no much competition to sale it’s raw material.

Local sale section.

Local sale section deals with the sale of leather in local market. Therefore manager local sales

deal with the local parties for product selling.

Execution of Sales Process.

For the sale in local market first they check industry rated and then they began bargaining with the

customers. The manager sets the rates with the parties and terms and condition also by both the

parties so in this way a contract is signed;

o Buyer Name

o Seller Name

o Product Specifications

o Price

o Delivery Time

o Place etc

After completion of all above procedure then order is given to the production unit confirming the date

of destination etc. So in this way local sale is done.

Export Section.

T.U Plastic has local market as well as export market; therefore the major job of all the

marketing managers is defined. The major steps, which are involved in the processes are as follow

Company customers are based only direct customers

Direct Customers.

Company deals with only direct customers because company not like a middle man because

company think that they are not show our image in the customer mind in that shape in which we are

personally show ourselves. So that company directly deals with customers and provide all that

facilities which are provided by middle man.

Following are some points which company seeks;

Customers enjoy the low process.


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No involve of agent’s commission.

There is also no intermediary.

Customers himself check all the procedures.

Customers himself fix the prices.

Hierarchy of Marketing Department.

Employees Working in Export Marketing Department.

Being a large exporter of artificial leather products, T.U Plastic has segregated his export

marketing department product wise, customer wise. The classification of export marketing department

can be discussed in brief in the following;


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Chief Executive officer

Marketing Manager

Local Sales Officer

Global Sales Officer

Assistant Officer

Assistant Officer

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According to Product Nature.

T.U Plastic has divided the export marketing department into two major heads.

Artificial Leather.

Shoe making (trail basis)

According to Customers.

T.U Plastic has subdivided his product according to the customers. The marketing department

is responsible for all the information and jogs relating to this specific customers.

Export Marketing Department Process.

Following are the steps which are following in the process of the export department;

Customer Inquiry

Order from customer

Through mail

Sample / desigh

Through courier

Export department

Designing sample

Designing department / design prepared

Engraving department

Sample room

Concept and development

Printing programmer / Dye programmer

Production and planning

Dispatching letter

Dispatches through shipment and follow up

Export department working start when it received the order from the customer through e-mails. In e-

mail the customer tell or write all the details of its requirement which he want in the order like the

quantity, quality of the leather he desired.


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And as well as the sample of the design he want also sent either through the mail or courier, the

design the customer required, or if I required the design from you already print, then they sent the

specification of the design they want.

After receiving the order from the customer through e-mail, the export manager enquiry from the

customer regarding the price and leather quality he mentioned in his order.

After approved the quality of the leather and quantity, then they negotiate on the rate of prices. When

the prices are agreed. Then the export marketing department sent the sample to the designing the

department to make the sample of this. Designing department sent this to the engraving department

where the screening if design is copied to sample received from the customer. Engraving department

when checked that all de3sigh are accurate then it forward to the sample room.

Engraving department screen the design, either through computer or through the digital department,

then this print will print on the sample and sent to customer. Than sample are sent to customer, if

customer required is fulfilled then the next work is start.

After receiving the sample, if the customer is satisfied with the quality if the production, then he sent

the order sheet, in which whole details of order is mentioned like quality of leather, quantity of product

required, construction of the leather required the color in the print required. And also the price is

mentioned in it on which the both parties agreed.

After receiving the sheet from the customer the sheet is sent to the production department in which the

procedure is started and all the procedures are done on that order. In production department there

are trained supervisors who are keenly focus on every point and see all the procedures himself in

every moment. If there is any mistake in production the procedure is started from the first point and

then complete it. So that these are the points in which company works and that’s way there is no

chance of mistake. And there is no way to compromise on quality.


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After that the sheet is sent to the printing department where the leather is printed according to the

customer requirement. In this the work is done by open eyes because it is very important point

because if there is any small mistake then it is shown that all the procedures are not correct.

After that the material is sent to lamination department where the leather is coated with lamination and

that is important. After that it is completed.

After finishing it is sent to the final inspection and folding here the export manager itself can check the

quality of the leather and its color matching and thickness checking. After that the packing step is

started and pack the all material with open eyes. After that it is dispatch to the customer.

Before making the shipment it has been cleared / sure that the terms and condition of the order are

agreed at that they are cleared by the shipment department. All after ship documentation is

maintained by the export documentation department.

Function of Export Marketing Department.

Now I will explain you the functions of the export marketing department. Export marketing department

in T.U Plastic for the export all type of material manufacturing by the T.U Plastic. Since it is the most

important section of the T.U Plastic which sells and exports the artificial leather to the different

countries as well as local market.

To make this section most effective and efficient in working, it is further divided and made responsible

for definite area and countries of the world according to the interest of the export manager.

For example one person is responsible for china’s market so that his responsibility is focus on only

china’s market and understand their needs and also focus on competitors and see which policies they

adopted.


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Over and above these managers is the marketing manager, who watches their progress and

achievements in getting the orders efficiently and making their customers loyal to the firm and

permanent customers. He is the person who looks after and manages the exporting procedure of the

company. In order to make the export department most efficient department of T.U Plastic which

contributes a high share on the profitability of the company?

Export Marketing Operations.

Marketing is the main process, for any exporting organization now a day it is important for any type of

companies, if it want to exist in the market for long time and earn more reputation and interest of

customer.

Marketing does not only mean to sell the product in the market, but also it is the process of attracting

the customers and customizes your process in order to make the loyal customers by producing the

product according to their demand and desire.

As my major department is marketing so my manager and other coordinators tell me the marketing

strategies and other important terms.

T.U Plastic is one of the best leather manufacturing firm in Pakistan, the firm which not only exporting

to the foreign market but take a good care of the local market.

New Market Development Model.

In the T.U Plastic the marketing department defines a marketing model for the new market

development.


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Create a customer interest

Reinforce customer interest

First order

Customer relationship

For that purpose T.U Plastic providing a chance to their export manager to go abroad and find new

customers for that purpose it tries the best in all types to get new market.

The term strategy was originally applied to the art of military generalship. In business, a strategy is a

broad plan of action by which an exporting organization intends to reach its objectives.

Essentially for an exporting firm strategy deals with the interplay of three forces competitors and the

company itself. Beside these three forces there are many other factors which play a vital role in the

success if a firm’s strategy. So a firm must use such export strategy which should device ways in

which a firm can differentiate itself effectively from the competitors. And that the T.U Plastic is doing

capitalizing its distinctive strengths to deliver better quality value added products to its customers.

These are the factors which could make a difference in the success of firm’s strategy.

Now I will explain the critical factors with the example of the T.U Plastic Industry.

Market.

Market identification through market segmentation now helping T.U Plastic to clearly benchmark its

competitors. Now the T.U Plastic is able to define its target market. Since a successful export

strategy emerges from the consideration of three factors. Customer, completion and the company in a

given environment, a firm should answer the following three questions.

Where to compete

How to compete

When to compete

When a firm identifies its target market, it can completer with more strength and resources.


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Customer total satisfaction

If what the customer wants does not match what the T.U Plastic can produce, its long viability and

existences may be at stake. When T.U Plastic approach to the customer is identical to that of the

competition, the customer can not differentiate between T.U Plastic and other leather related

industries and its competitors and the result could be price war, which may satisfy the customer’s need

but not the T.U Plastic. So T.U Plastic must satisfy its customer’s needs by offering something

different firm its customers.

Time management

For an export oriented firm, time management is the key element which could make a firm successful

exporting firm. T.U Plastic way of time management for a successful strategy has two dimensions.

Market entrance time management

Delivery time management

T.U Plastic take decision to enter the USA market was based on a brief review of information available

form U.S.A consulate, in Lahore and EPB (Export Promotion Bureau). Delivery time management for

and exporting firm is so much important. In time delivery of the goods to customer will help a firm to

capture further orders.

So these three critical factors could make the difference in success of firm’s strategy.

T.U Plastic has a marketing department that is export marketing department.


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Marketing Plan of T.U Plastic

Each product level (product line, brand) must develop a marketing plan for achieving its goals. The

marketing plan is one of the most important outputs of the marketing process. But what does a

marketing plan look like? What does it contain? Marketing plans of T.U Plastic has several sections,

Executive summary and table of contents

Current marketing situation

Opportunity and issue analysis

Objectives

Marketing strategy

Action programs

Projected profit and loss statement.

Production Mix Of T.U Plastic.

Product.

T.U Plastic produces high quality leather. It exports in foreign markets and also sells it’s

products in local markets and along with that uses a major portion of its leather in sports related

goods. The main point of the T.U Plastic is that it produces all type of raw material according to the

requirements of customer orders.

Price.

Pricing is an important factor in the marketing process for any company. The price policy of the

company should be in such a way that it should produce a reasonable profit for the company and

should satisfy the customers.

Place.


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T.U Plastic using only one type of distribution channel and that is

Direct Channel. It is very helpful for the customers and is a very easy and soft way to get the goods

according to your requirements within the company rate.

T.U Plastic Industry ========= Customer

Promotion.

As the leather is an industrial product and now a days industries grows day by day and every

one wants to become a businessman so that it is very important that you can promote your products

very well. In this way the marketing department personally contacts the customers and sells the

product. Therefore personal selling is a major promotional tool for T.U Plastic’s marketing department.

Strategies.

Marketing Strategy.

T.U Plastic don't have any effective marketing strategy because T.U Plastic have the loyal

customers and fulfill the order of them. T.U Plastic just manufacturer and exporter of leather it have

not its own brand name it produce products for its existing customers with the brand name of customer

on the product and product also have market value with the name its customer brand name. So T.U

Plastic don't have any need for advertising strategy. But for the attracting new customer for secure

themselves they contact directly in local as well as in foreign market to attract new customers.

The main thing which retain the customer and become loyal is the quality of product and fulfill

the order in time. So for the quality product T.U Plastic has an effective R&D department that works on

the modern technique and become modern samples for the increasing in competition.

Following are the some important points in it;

Firstly improving own product

Better research & development

Product innovation


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Reasonable price against market

Customer Strategy.

Maintaining a long term, honest, and fair relationship is the core philosophy of our

customer strategy. We make it a point to go out to exceed our customer’s expectations. Customer’s

delight is of paramount importance at T.U Plastic Industry Company (Pvt) Ltd. And the ultimate goal is

not only to fulfill but to exceed the product quality and service standards set by our valued customers.

Competitive Strategy.

Competitive strategy refers to how a company competes in a particular business. Competitive

strategy is concerned with how a company can gain a competitive advantage through its unique way

of delivering products/services. There are several factors for being competitive and factors that

enforce to be competitive in specific market. Observing competitors' actions and reactions and move

accordingly is the key determinant of success for any business.

Following are the some important points in it;

Better Performance

Providing Value Added Products

Providing on Demand Washing Effects

Adopted Pull and Push Strategy

Providing Better Products at Lower Rates

High Quality Products and Services

T.U Plastic promises its customers to deliver high products and services with no match with

others. By using most modern equipment, it is not hard for company to capture hearts of customer.

Due to effective distribution policy of T.U Plastic, all products are delivered to customers in time

and services are offered in as less time as possible. Company produces high quality products which

are known as "A" quality products. Company follows all the health & safety and child labor policies of

its customers. The basic policy which of the company to follow the quality management and try to


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improve the quality of artificial leather to retain its existing customer and they don't still want to get

more and more customer because company has worth in the market and want to retain it because

company can not have the capacity to full fill the demand of other customer with the existing customer

and also for the relationship with their existing customers.


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MY LEARNINGS AS INTERNEE


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The CEO of T. U. Plastic Industry Company (pvt) Ltd. Mr. Suchai Aswapanyawongse giving Certificate to Mr. Saqib Ghafoor.

Both certificates copies are attached at the end of the report.

10. Learning as an Internee.As the student of MBA, I have learned a lot about how to work in a good organization with

changing business strategies and environment.


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Duties As an internee in T.U Plastic Industry of production and export of sports goods Company, my

duties were as follows

Keep good relationships with customers.

Going to market and check the environment of the competitors.

Always paying full attention to the customers and fulfill the needs of the customers.

Checking the files of marketing department on daily basis.

Not ignoring a small error which related to our department.

Preparing the daily expenses vouchers.

Preparing the commission of agents after shipment.

Coding to journal voucher (JV) and then record it into software.

How the advance payment or loan given to the employees.

Calculating the exchange rate variance when payment received after shipment.

Preparing the documentation of sales tax.

Calculating the rebate and then preparing the documentations of rebate.

Calculating the R&D on invoices and how to prepare documents of R&D.

Some part of internal audit like task of checking entries of raw material in ledger and in GRN

store book and I check both and verify them and assigned codes in front of each ledger entry

and when I did not find any GRN then I go to person who keeps the record of GRN and he finds

them and give me record of that.

Company uses both system of manual and computerized so account manager give me the

opening and closing balances of last month inventories of raw material to check the posting that

manual entries into the system. I check them and point out some missing entries and give my

report to account manager that which entries are missing.

I collect all the documents of purchase during the month of June bill of entries purchase invoice

and utility bills and than record them in the software which CBR recommended and record all

the information about purchases on which we paid tax and utility bills and software produce a

report which we give to the auditor in CD with files and sales tax return.


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I prepare BRS (bank reconciliation statement) for the last year.

I calculate the working days of employees and last year and the prepares bonuses for the

employees and allowance to employees to have full attendance last year.

Accomplishment

The overall working environment was very good in which I learned a lot.

Got an opportunity to work in a well known organization of production and exporting artificial

leather goods.

Completed all of my duties on time.

Improved my confidence and communication skills by talking to advisor and other managers.

Learn about effective information dissemination within office environment.

Got an opportunity to be a part of official meeting to improve the employees compensation

programs.

New Knowledge Acquired

After doing my internship it becomes clear to me that books are only dealing with the ideal

situation while in real world it is not so, and you have to face many problems particularly in Marketing

field in which you are dealing with customers and the behavior of an individual is always unpredictable,

getting in this internship it become much obvious to me. Beside this in books, I just came across with

abstract and the concept develop with thorough study able to make a vague mental image while

working in a real scenario help me out to develop a clear understanding about different concepts. I

have learn a lot with this internship about the corporate sector and particularly about the Marketing

Department. The things which will be very beneficial for my career are

1. Attitude Change

2. Knowledge Enhancement

1-Attitude Change


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The attitude problem of mine is solved with the help of this internship, before this I was

thinking that working in an organization is more valuable and a piece of cake and my attitude was not

so much professional or formal to work in some organization but after this

internship, I feel a very positive change in my attitude and It make me mentally prepare to

work in some good organization.

Corporate Culture

University culture is quite different than the corporate culture, in university students usually

take the thing just formality while in corporate sector you actually have to perform other wise for you

there will be no place in the organization.

Organization Structure

I have to face the organization structure which was highly bureaucratic in which there is

centralized decision making authority and you just have to obey the order no matter, right or wrong

beside this at the end incumbent is the only person who will be responsible for the results so, you have

to act according to the situation and have to remain vigilant.

Professional Attitude

Going out from the university in an organization is quite good experience as in the university

or college life, you are with your friends and remain informal while in organization you have to be

formal, there may be one or two of your friends but more of the other are your colleague and the

environment in organization is usually very competitive, you have to wear a professional attitude other

wise it will be very hard for you to survive.

2- Knowledge Enhancement

This internship was very much beneficial for me, in one side it develop a professional

attitude in me while on the other hand it also enhance my knowledge and a lot of new things I come to

learn. There are few things which I wanted to mention here.


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Performance appraisal System

Before joining the T.U Plastic Industry as an internee, I had a totally different concept of

performance management system but after learning in the MD I come to know real process and how it

is beneficial not only for the organization but for the employees also.

Training

During my internship, I also learn the procedure for analyzing the need of the training and the

documents and the methods used for the training of employees.

Job Analysis Process

As per requirement of the ISO and the present trend in the field of human resource

management, the process of job analysis seems to be of prime importance, I learn that how

to conduct the job analysis as well as to development of job description and job specification,

during my internship, I used to assist the HR manager in developing the job description of

the employees at T. U Plastic Industry.

Limitations during Internship

As an internee in T. U Plastic, I have to face a number of difficulties which create hurdles for

my learning as an internee in this organization. Some of the constraints which may limit my study are


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Time Constraints

Due to short period of time, it was difficult to go for the in-depth analysis of each and every

department of T. U Plastic Industry Limited.

Field of Study

As my field of specialization is Marketing, so my focus was on the Marketing Department

rather than all the departments of the organization but I have compensated this issue by visiting these

departments and getting the required information for my report.

Data Secrecy

T. U is a Private Limited Company, which does not allow sharing and transferring its

private data. Due to unavailability of Annual Report, the financial analysis could not be

carried out and the company’s important documents could not be available. All forms and

documents are attached here are just specimen which are very close to the original one but

these are not original due to the data secrecy issue. But some of them are in original shape.

Communication Barriers

As there is autocratic culture of T. U Plastic Industry and the management here is very

bossy and there is a communication gap exist between the management and the rest of the

employees, this communication gap also create hindrance for me to getting the data from

top management.

Problems Encountered

During my entire period of internship, I face following problems


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First major problem which I faced was cooperation because T. U Plastic is a private

organization and here employees were too busy in their work and have no time for interviews.

T. U Plastic authorities had not provided me any separate office or internet for work.

T. U Plastic is basically a Thai company so there is a problem of language and there are some

persons which only understand the Thai language so that I feel very hesitation to talk them and

ask the questions which I need

Impact of Experience on My Career

As I am a student of Marketing, so my experience as an internee in this company will help me in

future when I get the full time job as a professional. I have learned about,

How to create a good relationship with customers.

How to create a long term relationship with the companies.

How to attract new customers.

In which way you advertise your products and in which way customers wants to accept your

products.

How to prepare journal voucher (JV), balance payment voucher (BPV), balance receipt voucher

(BRV), cash receipt voucher (CRV) cash payment voucher (CPV).

How to let people know about your product/ services.

How to retain customers by giving them superior products quality and value added services.

Analyzing competitors and markets that any one doesn’t copy your product.

Product improvement and innovation, reducing customer’s complains and choosing the right

way to attract customers.

Through this internship experience of working into an organization helps me to understand

rules and regulations, duties during my career.

Flexibility in work environment matters a lot; I have learnt it while I was doing my internship

in T. U Plastic Industry. The office environment is always remain intensive and the

individual have to manage it accordingly in the office, in case of failure he will be no more at

the job; this is in the ethics of the work environment and all these ethics become more


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exhaustive when you are in the Marketing Department and have to deal with all type

of employees. You have to prove your self a calm and pleasant personality.

As I was not the responsible person for that office and in actual was acting as an observer

or a learner. So, I learn that behavior by observing the people in the Marketing dep that

what type of personalities you have to face daily and you have to manage it accordingly.

Might be if without this internship I go some where in the office, I may commit thousand of

such mistakes and employees get curse on me but after observing all that the job of marketing

manager is very sensitive and a certain imager of marketing office has been cultivated in my mind.

now whenever I will go to some office I can perform well and I am cent percent sure that

without this internship I cant do that effectively as I can do after that.

This internship proves better for me in two way, on one side it help to develop a personality

in me which exactly match the person of marketing dep and secondly it help to strengthen

my decision about the specialization in Marketing as my personality exactly match the

nature of job.

10.1 Recommendations and Suggestions

The following are the suggestions that I have recommend for the T. U Plastic,

T. U Plastic should use its own brand name and marketed it internationally to secure their

business, and hold on market share.

Company should have to market its product locally and to other international buyers.

T. U Plastic should improve the performance of HRM department and should organized

different events for employees to become them more loyal.


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HRM department is required to hire efficient employees according to the qualification and

performance not as reference basses.

Company should have start E business.

Company working with the limited brands so it have to increase its marketing and make new

more customers because company is fully depended on the existing customer and whenever

they leave company have no choice.

T. U Plastic should increase employee’s commitment by encouraging and rewarding them

leads toward the high performance.

Keeping high quality is not only the responsibility of quality department, but it should be

embedded in each employees minds. Every employee should take it as personal responsibility.

There should be clearly written slandered about the demand of buyer’s requirements about the

production.

Company should increase the salaries package of employees to become more loyal.

Company should do local and international marketing.

T. U Plastic must have the canteen for lunch of the employees it is very important because

there is not any good restaurant for lunch.

T. U Plastic should make the arrangement of different seminars to increase the employee

commitment with the organization and goodwill of the organization.

T. U Plastic is a huge name in the Leather production industry but it has only limited customers

in Pakistan so it is very important for it that it creates good relationship with them and try to

capture new customers for future programs.

Employee satisfaction was observed to be at a higher level in the accounts and admin

department as compared to the marketing and production sector. So it is very important that

facilities are provided equally to all departments.

Proper training of I. T should be given to all the employees, as it is necessary to the company

benefits.

Wastage elimination and cost reduction by best utilization of resources.

Promotion of value-addition unto optimum size of operations.

Promotion of marketing research effective and efficient management information system.


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Top managerial personnel should be trained both at company premises and at the international

business schools in administration, finance, marketing and production.

Formal training should be programmed for workers inside the mills are generally non-existent.

Workers are accustomed to low quality and low productivity in general. These habits can be

changed only by training so that workers develop the habit of obtaining guidance and

assistance of qualified professionals.


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conclusion

11. Conclusion

This past half century has seen momentous developments in the world of leather, and it is not

only the rules of games that have changed. For the leather industry, more important development has

been in terms of new standards and specifications, new materials, and new techniques and

technologies of producing leather equipment. T. U Plastic has consistently overcome these

challenges, keeping its products at par with the best in the world. It is the matter of proud and

satisfaction that leather items produced in T. U Plastic are top of the shelf items anywhere in the world.

My overall experience is good in organization and I have learn many new things in

organization. I leaned that how to work in organization and observe the environment in organization, I

also learn here how to take work from employees and how to motivate them toward the organization

goal and get work according to them. I also lean here how to dealing with the suppliers and makers,

how to manage their account and make payment them. I also learn here how to organization set its

objective and how to achieve this object and how to manage the work and distributed among

employees.

I will conclude my report by saying that my training program at T. U. Plastic Limited was a mighty

experience, in terms of learning, dealing with people, getting the how know of the working of large

scale organizations and the intricacies of practical life. Such an experience is a necessity for every


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business student as it helps one in choosing the area of work to adopt in professional life. This training

program sets a strong basis for students about to enter professional life to do the correct career

counseling for themselves in accordance with their ability to integrate work with knowledge, their

learning capacity and the ability to sustain pressures.

Training and awareness of personnel in all sectors and at all levels is required to face the future

challenges.

Adaptation of globalization, spectacular developments in information technology, internet, e-

commerce etc is required.

New products must be introduced and should establish enduring enterprise, based on modern

technology.

I have seen in organization that there are few employees having master degree which are

appointed and working on management positions and all others have no extra degree so that this is

only that there is no effective HRM department and company don’t advertise the jobs. So it has bad

effect on the performance on the company that they can’t find the competent person for job.

The basic thing which I have learnt from my experience is that in practical life there are much

more competition than in study, because which people working from many years and know many

shortcuts and technique in practical life which we persons don’t know then how we compete with there

experience. So in practical life we have to become friendly with our coworker, subordinates, and

bosses.


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Basically there is no effective marketing department in the company and also the marketing

manager is new in this company so that there are some problems in the earlier but very soon we

control our department. So it is very important that in every organization marketing department is very

strong either the organization is small or big.

I think if we have succeed in professional life then after completion of our master degree we

must have to spend minimum five years in any organization to learn about market and succeed in

market because from experience we learn much from books. I have learnt that if the upper

management is efficient then the productivity increase and if there is rule & regulations which upper

management follow then lower all department work in well manner.

Those will succeed in market which are sincere with their jobs and spend their much work on

job and learn all the work in the organization. There should be job rotation in job that if any one will

leave job then organization should have other resource person to accommodate that position and also

employees remain motivate and a desire of learning should remain in them. In organization people

very much depended on each other from work point of view so they kept their relationship fair with

each other.

Company policy of increment on the basis of performance is so excellent all employees want to

get maximum increment and also the bonuses for the person who doest have any vacation during their

last year also motivate them to don’t have any vacation. I learned that experience make a person

perfect and through experience the efficiency of employees increase and they have find shortcuts in

their jobs and can perform there job with minimum time and more accuracy with the passage of time.

Company this time fully dependent on its few customers and has full confidence on their

customer for the running of there business because company don’t have its own brand name in the

international market. So if company wants to get secure future then have to diversify its product and

increase its customers.


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12. Annexure

Organization Chart.


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Material Issue In-Charge

Main Store In-Charge

Designing In-Charge

Q. C In-Charge

Dispatch

Lean

T.P.U In-Charge

Production Manager

Local Sales Officer

Global Sales Officer

Assistant Officer

Assistant Officer

Chief Executive officer

Admin ManagerFinance & Accounts

ManagerImport Export

ManagerMarketing Manager

Monitoring

Cleanliness

Construction Activities

Transport

Security Department

MIS

HR Manager

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Companies Customers

Sublime Sports

Forward Sports

Capital Sports Corp. Pvt. Ltd.

Sports Corp (Pvt) Ltd.

Akram Footwear

Novelty Traders

Mehran Traders

Jascan International


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Repair

Panel Checking

Machine Stitching

Die Punching

Maintenance Plant

Cook

Gardner

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Silver Star Enterprises (Pvt) Ltd.

Company’s Products

PU Artificial Leather for Soccer Ball

PVC Artificial Leather for Shoe

PVC Artificial Leather for Garments

PVC Artificial Leather for Football


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LEATHER RELATED PRODUCTS.

Following are the some products which are very common in our daily life and we use that things on

daily basis and these goods are based on leather sheets. So the raw material of artificial leather play

an very important role in our life but we don’t know about this.

In these products there are some household products some of our study related products some are

daily usage products.


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Company Life Cycle


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Environmental Factors


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Porter Competitive Analysis.


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13. Bibliography

Information from Mr. SUCHAI ASWAPANYAWONGSE (OWNER & CEO)

Information from Ms. NIT PASUKSATHITPORN (PRODUCTION MANAGER)

Information from Mr. KASHIF MAQSOOD (PURCHASING OFFICER)

Information from Mr. WASEEM ANJUM (SENIOR ACCOUNTS OFFICER)

Information from Mr. SHAHZAD KHAN (MARKETING OFFICER)

Information from Mr. AMJAD AWAN (MARKETING MANAGER)

Information from Mr. SHAHZAD RASUL (ADMIN OFFICER)

Information from Mr. IJAZ AHMAD (ACCOUNTS OFFICER)

www.pakistaneconomist.com/page search/ search-engine 2003

www.highbeam.com/doc/igi

www.orderannualreports.com/new

www.al-lan.com.cn

www.oppapers.com/essays/leather-industry-pakistan

http://catalogo.beservice.net

http://venus-goa.com


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http://venus-goa.com/

http://catalogo.beservice.net/

http://www.oppapers.com/essays/leather-industry-pakistan

http://www.al-lan.com.cn/

http://www.orderannualreports.com/new

http://www.highbeam.com/doc/igi

http://www.pakistaneconomist.com/page%20search/%20search-engine%202003

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14. Glossary

T. U. P Thai Urethane plastic

GRN Goods receipt note

form Export form / Evaluation form

Dept Department

JV Journal Voucher

NJI New Jubilee Life Insurance

MD Marketing Development

R&D Research & Development

Admin Administration

CSD Compliance and services division

CEO Chief Executive Officer

Dir Director

Govt. Government

CBR Central board of revenue

B-entries Bill of entries

BRC Bank reconciliation statement

EOBI Employees old age benefit

Gratuity An award given without claim or

obligation

JD Job description

MIS Management Information System

QC Quality Control Department

TNA Training and Development


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15.

This Page Has Been Left Blank Intentionally…


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saqib final report

Documents

internship report dedication

report base

required information

valuable information

u plastic industry

plastic industry company

multan road lahore pakistan

business knowledge