Uploaded by Daniyal Ahmad

Internship Report ( Manufacturing firm )

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Shoaib Metro Engineering Private Limited`
Internship Report
Submitted by
Daniyal Ahmad
L1S20BBAM0176
Session 2020 - 2024
Supervised by
Prof. Uzma Tahira
A report submitted in partial fulfillment of the requirements for the degree of
Bachelors of Business Administration
Faculty of Management Sciences
University of Central Punjab
University Of Central Punjab
Shoaib Metro Engineering Private Limited`
Table of Contents
Chapter 1 ....................................................................................................................................................... 3
Introduction of the Company ........................................................................................................................ 3
Company name: ........................................................................................................................................ 3
History of the Firm: .................................................................................................................................. 3
Type of industry: ....................................................................................................................................... 3
Company’s Hierarchy: .............................................................................................................................. 3
Product line: .............................................................................................................................................. 4
Facility Layout: ......................................................................................................................................... 5
Vision and Mission: .................................................................................................................................. 6
Chapter 2 ....................................................................................................................................................... 7
Organizational Analysis ................................................................................................................................ 7
Departments/Functions of the company: ................................................................................................ 7
Human Resource Policies of the Company: .............................................................................................. 7
Marketing Strategies:................................................................................................................................ 7
Shoaib Metro Engineering - SWOT Analysis: ............................................................................................ 8
Financial Analysis of the Company: ....................................................................................................... 16
EFE Matrix: ........................................................................................................................................ 16
IFE Matrix........................................................................................................................................... 17
Space Matrix: ...................................................................................................................................... 18
Competitive Profile Matrix (CPM) : ................................................................................................ 18
Chapter 3 ..................................................................................................................................................... 20
Conclusion & Recommendations................................................................................................................ 20
Conclusion: ............................................................................................................................................. 20
Recommendations: .................................................................................................................................. 20
Activities Report: .................................................................................................................................... 21
i)
Assigned Job ............................................................................................................................... 21
ii)
Tasks achievable.......................................................................................................................... 21
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Shoaib Metro Engineering Private Limited`
Chapter 1
Introduction of the Company
Company name:
Shoaib Metro Engineering Private Limited
History of the Firm:
Started in 1982 with two brothers. First worked on soap dish. After that they worked on toilet
Lid. After some time, the two partners ended their partnership. He started with one machine and
made hangers for 8 years. Now they are working on multiple items like feeder, hangers, plastic
bottles, led lights, bike lights, muhafiz switch and Ac Breaker etc.
Type of industry:
They are specialized in manufacturing all plastic related products.
Company’s Hierarchy:
The company is owned by Shoaib Ahmad. He has been in the manufacturing business for over a decade.
At first they started with one machine at the ground floor of their home. He made his name slowly and
after a decade they own a factory with lots of machines capable of manufacturing almost every kind of
product. During this time he kept teaching their boys about his business and how the machines work.
Now the factory is handled by two of his heirs Shahryar Shoaib and Danish Shoaib. They are best in their
work and bring new customers and work on new products. Factory is depended mainly on Shehryar
Shoaib because after the father he is the most competent person and head of all the operations.
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Shoaib Metro Engineering Private Limited`
Shoaib Ahmad (CEO)
Shehryar Shoaib (Director)
4 employees under
Danish Shoaib (Director)
3 employees under
Product line:
They are specialized in plastic injection molding machines and multiple blow molding machines.
Following products are made through these machines only.

Feeder bottles and all related accessories

Hangers

Water bottles of all sizes

PVC rings/ rubber bands

LED lights

Muhafiz Switches

A.C. breaker case

Furnace

USB Cables

And all other plastic related products
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Shoaib Metro Engineering Private Limited`
Facility Layout:
They layout of the facility is in such a way that the as soon as raw material is turned into
preform, it is then moves to the next machine where preform is further converted into finished
product.
Above is the machine where in the chimney raw material (resin) is
inserted and it converts the resin into preform.
This is the machine which converts preform into the finished
desired product. This machine is called blow molding machine. It
can process thousands of products in one day.
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Shoaib Metro Engineering Private Limited`
We can make variety of products through
these machines by just changing the molds
in those.
There are molds of hundreds of products in
their warhorse and they can change those anytime when order comes.
These molds are can be replaced by a manual crane designed by
Mr. Shahriyar himself.
Following is the machine called injection molding machine that
converts resin into any kind of product that include led lights,
hangers, caps of bottles etc.
Vision and Mission:
Mission and vision of the company is providing the best products to the clients through there
years of experience in their respected field i.e. manufacturing, and increase their portfolio and
knowledge and bring creativity to their work.
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Shoaib Metro Engineering Private Limited`
Chapter 2
Organizational Analysis
Departments/Functions of the company:
There are mainly three departments in the company that are followed:
1) Sales And Marketing
2) Supply Chain and Operations
Since it is a small manufacturing company so most of the business functions are handled by the
owners itself. Shahriyaar Shoaib usually deals with the operations and manufacturing side and
Danish shoaib (younger brother) brings the clients and deals with distribution and sales. While
Shoaib Gulzar ( Owner) do the dealings with clients and signs the contracts.
Human Resource Policies of the Company:
The workers there are provided with fix salaries and a tour to the northern side once a year. Also
they take care of their families as well in case of any unfortunate events or even if there are
events of happiness they participate to the fullest in both monetary and moral terms.
Marketing Strategies:
The only marketing they have is through the words of mouth. They have been in this field for a
long time and everyone in the market knows them and admires their work. That is why there is
never any off season in their business. Their contracts are usually long term and barely get any
time to do their marketing for more clients.
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Shoaib Metro Engineering Private Limited`
Shoaib Metro Engineering - SWOT Analysis:
Strengths:
1. Expertise and Experience: Shoaib Metro Engineering has been in the business of
manufacturing for over a decade. Their team has the proper expertise and experience that
must be needed to deal with complexities that occur in manufacturing and also they are
expert in maintain and upgrading the machines themselves rather than depending on
engineers. This gives them edge and saves a lot of their costs and headaches.
2. Diverse range of machinery: They company has diverse range of machinery from
plastic molding to blow molding and also the machines that convert polyethylene resin
into pet preforms. Resin is converted into preform and those preforms are used in
machinery to convert in any desired shapes and products. They save lot of money through
this as well.
3. Reputation and Relationships: The manufacturing companies barely do their
marketing. The costumers mostly come on the basis of relations and reputation in the
market. Shoaib metro engineering has attained a well reputation and has been
maintaining that reputation for a long time. This lead them to have long terms contracts
with their clients and their work never stops means no off season. Through word of
mouth they keep getting calls for more orders from different wholesalers on daily basis.
4. Strong Product Portfolio: As mentioned in chapter 1, they have expertise in
manufacturing more than dozens of products. This makes their portfolio really impressive
and shows their professionalism in their work. Their best selling product is feeders. In
feeders they are the masters in their work and no other company competes them. Their
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Shoaib Metro Engineering Private Limited`
latest product is a baby training cup. Its manufacturing cost was around Rs.300 and it
selling for around Rs.1000 in the market.
5. Efficient Supply Chain Management: In order to avoid the hassle of buying raw
material every time the order comes, they stock the raw material for the coming few
months. This way their production is consistent and work does not stop unless the
electricity does not get off. Because the online time their machines stop is when the
electricity goes and it always remains unpredictable. They mainly have two sources from
where they source the raw materials and if they face some shortage they give them a call
and they deliver it to their factory at fair prices.
6. Skilled Workforce: The turnover rate is almost zero there. There are around 10 persons
of labor working and they have been with them for a quite long time and they have the
expertise to run the machines if the owner are not around to operate. They are very
professional in their work and they have been trained for that.
7. Research and Development (R&D) Capabilities: Shahryar Shoaib is a genius person.
He likes to work on projects which others hesitate to put their hands on. That is why he
invests a lot on research before doing any project. His recent projects are an automatic
bryani machine and a self made furnace that do coating of glass on a cattle.
8. Quality Assurance and Standards Compliance: Being recognized in the market is not
an overnight success. It requires years and years of dedication and customer satisfaction.
Today they are the most trustworthy manufactures in the market just because they deliver
what is promised. Their foremost priority is maintaining the quality. In plastic field,
colors matter the most and they provide the product with best finishing and best colors.
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Shoaib Metro Engineering Private Limited`
Shahryar shoaib takes all the responsibility of the quality assurance and meet the british
standards because some of their products export too.
9. Strong Supplier Relationships: As mentioned earlier, their supply chain is efficient and
to keep the supply chain efficient they have developed strong relations with their
suppliers. They resin and preforms used are sourced from few suppliers that import these
from UK mostly.
10. Capacity for Scale and Volume: Usually they work under limits but some times when
customer demands more so they have the capacity to increase their production and
volume produced by around half. As of my knowledge, recently they were producing 1
thousand feeders per day but when the demand increased that increased that production to
1500 units per day. So, there is always room for scaling up the production.
Weaknesses:
1. Online Presence: The company has no online presence i.e. no website, no facebook
group etc. In this era of social media, it is very necessary to market the company through
social media. This limit their reach to new potential customers. Contrary their rivials like
Sweet Baby and Kitko Feeders has pages and online selling platforms.
2. Outdated machines: All their machines are old machines. They keep updating them
with newer efficient parts but their competitors have latest automatic machines. Their
machines are manual ones and always require a labor along with the machine. This
decreases their production and increases the costs. To cover this gap they usually work 18
hours a day making their work double to meet the standards.
3. No ERP software: They still write all their sales, inventory, orders etc. on registers
rather than maintaining all the data on excel sheets or any ERP systems like SAP,
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Shoaib Metro Engineering Private Limited`
Dynamics 365. This is a major drawback that I feel they should work on. When we have
all the stats arranged in well manner it gets easy to manage.
4. High Operating Costs: The operating costs are really high. The operating costs include
the raw material, the electricity being used for the machines, machines maintaining for
efficient working, labor etc.
5. Work on credit: Mostly their work is on credit. Due to recent economic crises, their
payments get delayed most of the times. The reason he gave was distributors or
wholesalers payback when they get sales. High production costs due to increase in
electricity bills, petrol prices and increased dollar rates the retailers are forced to sell at
more rates as well due to inflation.
6. Limited Product Differentiation: As every item requires a special mold and once the
mold is made no such alteration in the design is possible other than coloring scheme. To
bring changes new molds are to be made and that is an expensive process.
7. Lack of Sustainability Initiatives: No such measures are taken towards sustainability.
8. Limited Access to Capital: They do not work on new projects on their own due to
limited access to capital. Mostly they are dependent on the projects given by interested
parties.
9. Overdependence on Key Customers: The contracts are usually long term with the
parties. So, they are dependent on their key customers.
10. Difficulty in Adapting to Market Trends: As said earlier, the switching costs are a lot
and inflation has risen it is hard to keep up with trends.
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Opportunities:
1. Infrastructure Development: By developing a bigger infrastructure for their factory to
add more machinery and stock capacity could lead substantial growth opportunities. They
want to expand their factory too.
2. Technological Advancements: They can integrate new technologies and software in
their machines like AI, to enhance their productivity and efficiency.
3. Collaborations and Partnerships: The demand in the market is huge. Few factories
cannot meet the demand. Best way is not to compete with each other but rather work with
each other. In plastic field, a single product requires lot of molds. So, partnering with
other firms to distribute the work load will benefit all and production will increase.
4. Diversification in Services: They are expert not only in manufacturing plastic products
but also assembling and running the new machines that are imported from japan and
china mostly. They can assemble and sale those machinery as well and can install new
factories too. There are lot of opportunities for them here.
5. International Market: Their products are British standards and also exported by
wholesalers and retailers. They can develop their relations with foreign customers
directly and can directly export their products to them or can vertical integrate their
company and sell their products in international markets.
6. Steps toward green and sustainability: There is not such trends to move towards
sustainability in Pakistan. The company I am working in is already facing lot of financial
challenges due to current country situation. But if they focus on sustainability and green
solutions then they can motivate other manufactures too towards it and play their part in
society and also their goodwill definitely will increase.
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Shoaib Metro Engineering Private Limited`
7. Public - Private Partnership: Shoaib metro engineering can collab with public sector
too and there are I believe would be lot of opportunities for them.
8. Automation: As their machines are run by labor and with labor comes lot of
responsibilities and cost. A step towards automation can bring revolution in their factory.
As they are already very professional in their work with automatic machines they can
work on better and more other things.
9. Supply chain localization: They have always preferred to source raw material from
other countries like Iran and UK. They can source it from local vendors as well if they are
providing good quality.
Threats:
1. Economic Instability: The biggest threat not just my company but all other
manufacturing companies are facing is the economic instability. For the past two years it
has become really difficult to even meet the standards. Everyday increase in patrol and
electricity unit prices and the increase in taxes has impacted a lot on these firms. Shaoib
Metro Engineering has been successfully fulfilling their contracts with costumer
satisfaction. But their payments mostly are due because with increase in taxes, and other
prices led to increase in the price of products and the market is cold. Wholesalers get the
products on credit and products take time to sell and they return the money when they
make the money. Also, the huge increase in electricity bills has reduced their profit
margins. To meet the expected revenues they have to work a lot and sometimes run the
factory 24 hours a day.
2. Political Instability: Due to political instability Shaoib Metro Engineering is facing
difficulties in getting new orders. Customers are hesitating to invest due to regular
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Shoaib Metro Engineering Private Limited`
changes government policies. Also the prices of raw materials are depended on the dollar
price and due to current political situation the dollar only seems to go up.
3. New Entrants: There is threat of new entrant with better machinery and lower prices as
well.
4. Technological Obsolescence: Rapid advancement in technology can make existing
solutions out dated. Continuous investment is needed to stay up to date all the time.
Other threats that are as follows:
5. Competition and price wars: There are not many competitors in the manufacturing field
but there is still tough competition among existing firms. The top selling product of
Shaoib Engineering is Feeders. Their competitors in this field are KitKo Feeders, Sweet
Baby and Mother's Happy kid. In order to compete with them in pricing they have
reduce their price per product by few rupees. Since the quantity of order is huge so even
marginal reduction of prices has an huge impact on overall cost.
6. Rapid change in trends: Shaoib Engineering also has the insights of the market that
which product is trending and which is flop. Mostly the payback on their orders depends
on the sales of their clients as most of the work is on credit. They do not want to work on
the project that is not trending and ultimately in delayed payments.
7. Skilled labor shortage: Most of the labor they have is with them for a long time. They
have trained them how to run machines, when to dispatch, quality control etc. But when
there is need of more labor it is hard to find trained and skilled labor or if they find one
the wages demanding are high.
8. Market Saturation: Market is saturated by not just Pakistani manufacturers but also
chinese. That has created lot of competition and saturation.
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Shoaib Metro Engineering Private Limited`
9. Quality control and products recall: Shehriyar Shoaib is responsible for the quality
check. But sometimes machines do malfunction that results in loss of a lot raw material
and finished products. It is very rare the products get recalled. It usually happens because
of lack of finishing or coloring patterns. So, they have to bear all the costs of
transportation and refurbishing.
Strategies:
1. Mass Production: The minimum order they take is around 20 thousand per product. To
achieve this level of production and meet the break even they have to manufacture around
1 thousand production per day. They have to achieve this level of production unless how
many hours the machines work in a day. Due to shortage of electricity their machines
work around 12 hours a day usually.
2. Competitive Prices: When producing mass quantity, just drop of 2 to 5 rupees has a
huge impact on over all cost for the customer. They know what price their competitors
are quoting so to compete the give the best possible prices for the interest of both parties.
Recently one of their competing parties Mother’s Happy Kid offered their customers a
bike who ever will order certain quantity. And they did deliver 3 to 4 bikes. This was a
unique marketing tactic they used but to tackle this Shaoaib Metro Engineering dropped a
massive Rs.10 on every unit produced of feeder. This way their customers remained loyal
to them.
3. Contracts being negotiable: There is always a room for negotiation if the intentions are
to contract in long terms.
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Shoaib Metro Engineering Private Limited`
4. Stock of rat material: Instead of buying raw material when order comes, they stock the
material (resin, preform, machine accessories) before hand in large quantity. So, this way
fluctuation in demands or prices does not affect their profit margins.
Financial Analysis of the Company:
EFE Matrix:
External Factor Evaluation Matrix (EFE)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Opportunities
Infrastructure Development
Technological Advancement
Collaboration and Partnership
Diversification in service
Targeting International market
Steps toward green and sustainability
Public - Private Partnership
Automation
Supply chain localization
Innovative Product Design
Weight
0.10
0.05
0.01
0.08
0.02
0.05
0.05
0.01
0.10
0.04
Rating
3
1
1
4
2
3
1
1
4
4
Threats
Economic Instability
Political Instability
New Entrants
Technological obsolescence
Supply chain disruptions
Competition and price wars
Rapid change in trends
Skilled labor shortage
Market Saturation
Quality control and products recall
TOTALS
Weight
0.10
0.05
0.01
0.03
0.05
0.05
0.03
0.09
0.05
0.03
1.00
Rating
4
2
1
3
2
4
2
2
3
2
Weighted
Score
0.30
0.05
0.01
0.32
0.04
0.15
0.05
0.01
0.40
0.16
Weighted
Score
0.40
0.10
0.01
0.09
0.10
0.20
0.06
0.18
0.15
0.06
2.84
Interpretation: This weightage falls between the "moderate" (2) and "important" (3) ratings on
the scale. Therefore, a weightage of 2.84 suggests that the factors are considered to be
moderately important or possesses a moderate level of influence on the organization's overall
performance in the EFE Matrix. It's positioned closer to being important (3) than being
somewhat important (2), indicating a moderate level of significance.
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Shoaib Metro Engineering Private Limited`
IFE Matrix
Internal Factor Evaluation Matrix (IFE)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Strengths
Expertise and Experience
Diverse range of machinery
Reputation and Relationships
Strong Product Portfolio
Efficient Supply Chain Management
Skilled Workforce
Research and Development (R&D) Capabilities
Quality Assurance and Standards Compliance
Strong Supplier Relationships
Capacity for Scale and Volume
Weaknesses
No Online Presence
Outdated machines
No ERP software
High Operating Costs
Work on credit
Limited Product Differentiation
Lack of Sustainability Initiatives
Limited Access to Capital
Overdependence on Key Customers
Difficulty in Adapting to Market Trends
TOTALS
Weight
0.10
0.08
0.05
0.06
0.05
0.02
0.10
0.04
0.04
Rating
4
4
4
4
3
3
4
3
3
Weighted
Score
0.40
0.32
0.20
0.24
0.15
0.06
0.40
0.12
0.12
0.03
3
0.09
Weight
0.04
0.05
0.05
0.04
0.06
0.03
0.01
0.06
0.05
0.04
1.00
Rating
1
1
1
2
2
2
1
1
2
2
Weighted
Score
0.04
0.05
0.05
0.08
0.12
0.06
0.01
0.06
0.10
0.08
2.75
Interpretation: This weightage falls between "moderate" (2) and "important" (3) ratings on the
scale. Therefore, a weightage of 2.75 suggests that the factors are considered to be moderately
important or possesses a moderate level of influence on the organization's overall performance in
the IFE Matrix. It's positioned closer to being important (3) than being somewhat important (2),
indicating a moderate level of significance. Shoaib metro engineering needs to pay attention to
these factors and consider appropriate strategies to leverage its potential or mitigate its negative
impact. It’s important to monitor changes in this factor and adapt strategies accordingly.
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Shoaib Metro Engineering Private Limited`
Space Matrix:
Interpretation: The "Aggressive" quadrant suggests that the company has a strong competitive
position (X-axis: Competitive Advantage) and is in a strong financial position (Y-axis: Financial
Strength). The arrow is pointing towards a growth-oriented strategy, indicating that the company
should pursue aggressive strategies to capitalize on its strengths and opportunities.
The company should consider strategies such as market development, diversification, mergers
and acquisitions, product innovation, aggressive marketing campaigns, strategic partnerships,
and other growth-oriented initiatives. The goal is to leverage the company's competitive
advantage and financial strength to expand its market share, enter new markets, or introduce new
products/services.
Competitive Profile Matrix (CPM) :
Competitive Profile Matrix (CPM)
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Your
Company
Critical Success Factors
Weight Rating Score
Advertising
Market Penetration
Customer Service
Store Locations
R&D
Employee Dedication
Financial Profit
Customer Loyalty
Market Share
Product Quality
Top Management
Price Competitiveness
0.05
0.05
0.10
0.09
0.20
0.05
0.09
0.10
0.05
0.05
0.10
0.07
Totals
1.00
2
3
4
4
4
3
3
4
2
4
3
4
0.10
0.15
0.40
0.36
0.80
0.15
0.27
0.40
0.10
0.20
0.30
0.28
3.51
Competitor
Mother's
Happy Kid
Rating Score
4
2
3
4
2
3
1
2
2
3
3
3
0.20
0.10
0.30
0.36
0.40
0.15
0.09
0.20
0.10
0.15
0.30
0.21
2.56
Competitor
Kitko
Feeders
Rating Score
2
2
3
3
4
1
3
3
2
3
3
2
0.10
0.10
0.30
0.27
0.80
0.05
0.27
0.30
0.10
0.15
0.30
0.14
2.88
Interpretation: My Company has the highest score among other companies representing strong
competitive position compared to its competitors. Despite having the highest score, it's important
to continuously monitor and improve upon identified key success factors to maintain or further
strengthen the competitive position. Regular assessment and refinement of strategies are crucial
for sustained success. Also, my company should remain agile and responsive to market changes,
customer needs, and emerging trends. Flexibility in adapting strategies and business models will
help maintain the competitive advantage. Considering strong competitive position, strategic
options such as aggressive market expansion, product diversification, strategic alliances, or
technological advancements should be explored to further solidify and enhance your market
leadership. It's essential to capitalize on these strengths, continually innovate, and adapt to
changing market dynamics to maintain and strengthen the competitive edge.
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Chapter 3
Conclusion & Recommendations
Conclusion:
The conclusion is based on my two and a half week work in Shoaib Metro Engineering. It is a
small manufacturing company but the work load is a lot means there is need of expansion of the
factory by acquiring bigger place and more machinery. The company is working great under the
experienced lead of Mr. Shoaib Gulzar and Shahriyar Sohaib. Their first priority has always been
the quality no matter the political or economic instability. Their supply chain is efficient. They
stock the raw material for the production of next few months and this strategy has always been
super effective for them. Being a small manufacturing industry they are competing the mid-level
industries and that is a considerable achievement.
Recommendations:

Need of automatic machines to replace with labor

Need of ERP system to better manage the data

To make the supply chain efficient they need to acquire warehouse and vehicles for that

Need to divide the factory in different sections and departments
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Activities Report:
i)
Assigned Job: The job that I am assigned is to keep the customers updated and to
manage the production in the factory. Shahriyar bhai is my super wiser and he keeps
guiding me in everything. I am learning how the machines work, how much material
is required for the production per day and learning about sourcing the raw materials at
fair rates.
ii)
Tasks achievable: It is been two weeks working here. I have not achieved much
yet. I am at the learning stage right now. They do not want me to do big tasks until
they are satisfied I have learnt things. I am just trying to prove my worth now.
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