COMSATSInstitute of Information Technology COMSATS Road Sahiwal Organization Ahmad Fibers Pvt Ltd Multan Internship Report Supervised By Fareeha Nisar (Lecturer) Department of the Management Science Student Name: M Mazhar Khan Joiya Registration No: CIIT FA/09 MBA-009/SWL Semester: 2 nd SemesterDate of Submission: August 30, 2010 1
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COMSATS Institute of Information Technology
COMSATS Road Sahiwal
Organization
Ahmad Fibers Pvt Ltd Multan
Internship Report
Supervised By Fareeha Nisar (Lecturer)
Department of the Management Science
Student Name: M Mazhar Khan Joiya
Registration No: CIIT FA/09 MBA-009/SWL
Semester: 2nd Semester
Date of Submission: August 30, 2010
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Dedication
I DEDICATE THIS PROJECT TO OUR HOLY PROPHET HAZRAT MUHAMMAD
(PEACE BE UPON HIM).
I ALSO DEDICATE THIS PROJECT TO OUR PARENTS AND TEACHERS
BY VIRTUE OF WHO’S PRAYERS,
I HAVE BEEN ABLE TO REACH AT THIS POSITION
AND
WHOSE HANDS ARE ALWAYS
RAISED FOR PRAY, FOR OUR WELL BEING,
EVEN AT THIS MOMENT OF TIME.
THEN TO OUR RESPECTABLE TEACHERS
AND
TO THOSE WHO LOVE US
AND
TO WHOM WE LOVE.
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Acknowledgement
I am pleased to present this report on the successful completion of our internship
at AHMAD FIBERS PVT LTD MULTAN .I am thankful to Almighty Allah that
enables me to present this report which is the result of my hard work, struggle,
determination & delegation (to present it up to the best of its requirements). I
wish to acknowledge a lot of people for their valuable contribution to this report.
I am glad to acknowledge the help of Mr. Ahmad Nadeem khan and Mr. Bukhtiar
Ahmad the CEO and M.D of Ahmad fibers. I also acknowledge the support of Mr.
Arshad (Production department), Mr. Sharjeel at accounts department, and Mr.
Ahmad in marketing and sales department.
I would like to acknowledge the moral support and best wishes to my family
members, my best friends and other teachers. At the end, I feel great depth of
obligation to my loving parents whose prayers have enabled me to reach this
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Executive Summary
In six week internship in Ahmad fibers, I observed the activities in production,
marketing and sales departments. First of all the purchase department start workby purchasing the waste cotton then the production department comes into
action. The waste cotton is 1st ginned and then these ginned these cotton bales
reached the spinning department, these bales
are opened and cotton is torn in to small pieces. This cotton is finally
prepared as thread cones of different quality.
The different departments play an important role in the progress of
conversion such as blow room, carding section, simplex section, and
ring section and auto cone section
Finally these cones are packed into the bags and shifted into the stock room.
Then the accounts manager calculate all the costs and give the cost per bag on
which the bag must be sold otherwise the organization will face loss.
Finally, the marketing and sales manager sends samples of yarn to the parties
and brokers and deal with customers according to their orders and final the
deals. And after the payment the shipment takes place. In this way the
organization has its direct and indirect customers.
Finally, the marketing and sales manager sends samples of yarn to the parties and brokers
and deal with customers according to their orders and final the deals. And after the payment the shipment takes place. In this way the organization has its direct and indirect
Table of Contents .................................................................................................................5Chapter No 1 ........................................................................................................................ 6
BACKGROUND OF THE HOST ORGANIZATION ........................................................6
In 1990 Mr. Ahmad Nadeem khan had started this project from ginning unit .In which the
seeds are separated from the cotton. The separated cotton is classified according to itsquality and standards. Finally it is tied up in to bales to bring them for next phase. The
machines that separate seeds can be used to prepare oil, seeds etc..................................... 7
They remained in this business for more then a decade and then they have equipped their unit with new modern technology machines for the production of best quality of yarn.e.g
blow room, carding section, simplex section, and
ring section and auto cone section in 2002.......................................................................... 7And started spinning as well. They are serving till now in this field and the yarn produced
by them is exporting to international markets......................................................................7
2.4.2 Pricing ..............................................................................................................18Physical Distribution .................................................................................................18
2.4.4 Promotional Activities ...................................................................................... 192.5 Competitive Strategies of AF ...............................................................................19
2.6 Business Process Analysis ............................................................................ 20
Chapter N0 3 ......................................................................................................................23Learning as a student intern ............................................................................................... 23
3.3 New Knowledge Acquired .......................................................................................253.4 How Experience Impacts your Career .....................................................................26
The pricing strategy of AF is composed of two types of variables;
1. Fixed Cost
2. Variable Cost
AF is adopted different kind of strategies for pricing its products. When the price
is setting, these strategies are different when company exports indirectly.
If the company exports indirectly, then the price is settled as follows
Fixed Cost + Variable Cost + Middleman Commission + % age of profit
But usually AF sets its prices through the negotiations with its customers.
Normally AF charges very high prices due to its commitment of high quality.
Physical Distribution
AF sells its products through two different marketing channels.
• Direct Marketing Channels
AF directly contacts with its customers through telephone and personal contacts
and sells its products directly to final buyer.
• Indirect Marketing Channels
In the Indirect Marketing Channels, the distribution is made through
intermediaries. In some cases, AF sells its products through the brokers.
2.4.3 Places
Places where the products of AF are available are
• Multan
• Faisalabad
• Lahore
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• Abbot Abad
2.4.4 Promotional Activities
Promotion is one of the four major elements of marketing mix. Major exports of
AF are made through Tele phone and brochure services. Many contracts are
settled through personal sitting by public relations.
2.5 Competitive Strategies of AF
Experienced Professional Management
The Ahmad’s team comprises a balanced lend of experienced professionals
including MBA’s, Textile Engineers and Industrial Engineers. Continuous training
and development keeps them abreast with the modern technical and
management tools.
Social and Environmental Responsibilities
AF believes in fulfilling its responsibility towards the society and the environment.
An effluent treatment plan is in the phase of completion.
Quality Control System
AF establishes a documented plan setting out the specific quality practice,
resources required and the sequence of activities relevant to particular product.
There are quality checks at every stage of manufacturing starting from raw
Cotton Bales to Yarn,. During all these stages, the inline inspectors check the
fiber and the work at every stage.
Corrective and Preventive Action
AF has a very strong corrective and preventive action plan. AF has centralized
the corrective action and controls the non-conformity arising in the system. If
necessary, the relative person immediately takes the corrective action. For
preventive action, the department head keeps the record.
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2.6 Business Process Analysis
Ahmad Fibers Pvt Limited was established in 1990 by Mr. Ahmad Nadeem,
which is located at, Samoor Ana, near Farah mukhtiar school, Multan.Which
is producing best quality yarn. The preference is given on quality not on
quantity, that’s why the sales of the company are increasing every year. The
company has shown distinguished achievements during many previous
years. Different departments of AF are equipped with modern technology.
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Diagram:
Hierarchy in Marketing and Sales Department
Functions of Marketing and Sales Department
The Marketing and Sales Department comes into action in two conditions,
1. Product at stock
2. Order from Customer Product at Stock
When the production is complete from the production department and the
product is available at the stock room. Then the marketing and sales
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Marketing andSalesDepartment
Sample to
customer
Order fromcustomers
Request to
Production
department
Request to
Purchasedepartment
Account
departmentFinance
Production
department
starts work
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department comes into action and start marketed their product and sells it
through direct and indirect distribution channels.
• Direct Marketing Channels
AF directly contacts with its customers through telephone and personal
contacts and sells its products directly to final buyer. In this process they
send samples to the customers of their product and get order of their
product or they have sittings with their customers.
• Indirect Marketing Channels
In the Indirect Marketing Channels, the distribution is made through
intermediaries. In some cases, AF sells its products through the brokers.
They kept their product samples at different brokers and they seek
customers and commission on providing customers. In this way their sales
volume also increases.
Order from Customers
When marketing and sales department has received an order from
customer and they do not have product in the stockroom. They collect half
advance payment from the customer and deposit it in the accounts
department. After that sends request of order to the production
department and tells them about the quantity of order which is
required.Aftr receiving request the production department tells the
purchase department about the quantity of waste cotton which is to be
required to fulfill the ordrer.Then the cotton selector from the purchase
department select the best sample of waste cotton to buy and request the
account department to do the payment .When it reaches at organization
start working on it and after completing the production informs the
marketing and sales department that the order is ready and deliver the
order to the final customer after receiving the half payment which left.
Recommendations
As the marketing and sales department of AF working well but they can
get more success if they adopt few things which are,
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• Use E-Commerce and get orders through mails
• They should have to open regional offices in different cities of country
• Do not rely more on brokers
•
They should have to export their product themselves• They should have to spend more budget on promotion
Chapter N0 3
Learning as a student intern
3.1 Duties
During my internship I have been assigned by different duties which are
given below,
Contact to customers in different cities on telephone
Send sample to different customers through cargo service
Meet with different parties and present them sample of our product
Receive order of customers
Note down the order of customers and forward it to the production
department
Checking of stock room that how much quantity of product is left for
sale
Calculate how much sales have been in this year so far?
Meeting with some Brokers
Collect the payment when delivery of order is made
Loaded the truck for delivery of order in my supervision
Present the report after shipment to the sales manager
Calculate the production cost per unit
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3.2 Accomplishments
The duties I have been assigned I have completed them very well.
Such as the manager says me to contact customers and provided me with their
telephone numbers and i start my work by having phone calls to different parties
that either they have any demand of our product or not and then inform the
manager about the parties point of view.
I ask the manager that how they set the final price of their product that at that
price the organization has meet all the expenses and they have no loss. Then he
told me that after taking the average of all expenses (Raw material, electricity
bills, wages etc) we forecast the production cost and then set price. And after
four weeks he asks me to calculate the production cost per bag of yarn.
Mr. Ahmad says me to calculate the sales of this year and check that how much
stock is left back in the store he provided me the record of previous months. I
calculate the total sales and inform him about the total stock left.
The sales manager says me to note the orders of different parties which they
have placed and ready their orders for delivery. I have noted the orders and
make the delivery sure and then inform the manager about all this.
The sales manager says me to contact and send sample of their fiber to some
brokers and factories in different cities like Faisalabad, Lahore and Abbot Abad.
I send those samples and they have said me that we will InshaAllah place order
in few days.
The sales manager says me to note the address of different parties who want to
purchase our product but first they want to check the sample of our product.
That’s why send them samples through cargo service. Take the sample of yarn
and send the parties through cargo service and inform the manager about it.The sales manager sends me to meet some parties in Multan to brief them about
their product and their offer. After meeting those parties, I come back at 3:00 Pm
and tell him about the party’s point of view.
The sales manager has deal with a party and they place an order of our product,
and after their orders delivery he sends me to cash a cheque as their payment.
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After collection of cash I have reported the manager that I have received the
payment.
3.3 New Knowledge Acquired
During my internship, I have come to know that how different the practical life is?
That when you enter into the practical life, you have to struggle hard and fulfill the
task to survive in such a competent environment. You have to be tactical and
efficient while interacting with customers and senior staff as well. You have to be
sharp, honest and dynamic personality. So that you can handle various situations
with different tactics.
First I met Mr. Ahmad marketing and sales manager of AF who introduces some
new products in AF. So I learned about the innovation of products. I discussed
about the marketing practices going on in the local market. I learned how to
target your customer after knowing needs with product solution of the customer
need.
During my internship I learnt about the value that customer is all in all. Thefulfillment of the demand of customer is our basic motive. I also learned the hiring
process of labor and employees there in the company.
I also learned that how the budgeting, forecasting and financial strategies are
made. With this internship experience I feel that I have ability to solve company
related issues.
I have also learned that how the material purchased at low cost can affect theproduction cost and profit margin of company.
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3.4 How Experience Impacts your Career
I think that this internship program will be very good for my future. This internship
program will help me in my future professional life. If I want to do the job in anytextile industry then this internship will help me at that time. If I want to start my
own business then this internship program will help me.
The things that I learned in the sales offices will help me in making the marketing
strategies of the company in which I will do the job. The same will help me in
introducing the products of my own business. The experience of bargaining
power of the purchase of the material will help me in my job.
The experience in the production department will help me in planning and control
of production. I apply all the policies of HRM that how the work extracts from
labor and the employees that how to make co ordination and co operation among
departments and employees effective.
References
1.Ahmed Nadeem y.2010 personal conversation {C,E,O} 6th july
2.Ahmed Nadeem y.2010 personal conversation {C,E,O} 6th july