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Internship Report

Companies Name:

Service Industries Limited Gujrat

Submitted To:

Department of Human Resource

Submitted By:

Muhammad.Awais

Submission Date: 12.08.2019

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Table of contents

1 Dedication

2 Acknowledgement

3 Executive Summary

4 introduction of the organization

5 overview of the organization

6 Policy of the Organization

7 Competitor

8 Organizational Structure

9 Department of the organization

10 work as an internee

11 SWOT analysis

12 Suggestions

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1. Dedication

I’m proudly dedicating my work to Allah Almighty and his Beloved Prophet (P.B.U.H)
and my parents who always support me and love me and up bring me so well. I’m
dedicating my report to my teacher as well who motivates me teach me give me their
precious knowledge by which I’m able to prepare this internship report.

2. ACKNOWLEDGEMENT

First of all I would like to thanks Allah Almighty the Gracious, Compassionate,
Beneficent and the Merciful and his beloved Prophet (P.B.U.H) and my parents with
love, gratitude without their support it wouldn’t have been possible. It is one of the
blessings of Allah Almighty that I’m doing internship in one of the leading industries of
Pakistan. It is a pleasure for me to do work with service industries and their excellent
staff members who teach me very well. I really appreciate their efforts they not only
teach me but also help me to improve my weakness. After doing internship from service

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industry I’m feeling more social and confident. I learned a lot in service industry now I
can easily work in any other organization.
Moreover, I am dedicating my work to my teacher as well as the internship advisor, who
filled me with courage, commitment and awareness to follow the best possible route, by
his unmatchable style and by best possible training.

3. Executive summary

Service is public limited Company in Pakistan. Service is registered Company name


and “Servis” is brand name. Service is engaged in manufacturing footwear and rubber
products.

There are two production setups of the Service group, one is situated in Muridkey while
other in Gujrat. My focus is on Gujrat factory only. The Gujrat factory is producing the
famous brands in tyres and shoes, these may include Long life, Cheetah, Ravo, Supper
Trail, Turbo Karachi Express, Lahore Express, BMX Silver and Gold Star in tyres while
Calza, Cheetah, Doncarlos, Breezer, N-Dure Toz and Skooz in shoes.

The departments which I have visited for my internship are main departments of this
setup. This report covers their structure, working, functions, strategies and liaison with
other departments for the completion of their day to day activities. As it mentioned
above that Gujrat factory producing tyres and shoe but my focus remains to shoes as
it’s generate huge revenue for the industry.

I include in report the global footwear demand trends, potential and role of Pakistan in
this sector.

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The organization has strengthened market share not in local but also emerging in the
Europe market. Their Slogan is seen on different documents as “The largest exporter of
footwear in Pakistan”. It is right to claim that because they have captured the most of
the European countries some of them may include England, Germany and Italy. It is to
be note that they are exporting the shoe with the name of their clients. They are not
exporting their own brands to the European markets. Recently they have started to
open their outlets in Dubai and Saudi Arabia.

The most important factor in report is analysis of business financial statements


techniques have been used to analyze financial statements are financial ratio,
Horizontal Analysis, Vertical and Trend analysis. I analyzed all financial ratio including
suggestions and recommendations.

The sale analysis in under head volume of business is showing that sale of footwear
and tyres &tubes is increasing, but the cost of goods sold is also increasing that is the
main problem organization facing.

I analyze the following things in organization,

In accounts department double entry system is followed importance functions and


procedures that are verification of bills and payments to suppliers A/P, and all the
receipts in term of sales A/R. moreover allocation of expenses with their relevant heads
posting of vouchers, ledger and trial balance.

In costing department importance functions procedure how the store requisitions is


prepared by cost department for production department, how the wages are calculated,
how the material sheet is prepared and monitoring, how they calculate the prices of their
product and calculation of V.C and F.C and their allocation.

The main challenges faced by the Servis are high prices due to high taxes; increase the
no of products, energy crisis. I have also analyzed the external and internal conditions
of the organizations through SWOT analysis with the help of which I came to know
about the strengths, weaknesses, opportunities and threats.

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In my report I have mentioned the Hierarchy of management, different departments
and also mentioned its competitors. I have also discussed the problems faced by the
organization and I have recommended them the solutions of these problems

In system analysis of service industry Gujrat drawback of system, repetition of work,


isolation and integration of system, repetition of work and isolation of system, integration
of system, reason of this anomaly (isolation),

The good advantage they are going to avail in near future is implementation of the
Enterprise Resource Planning (ERP) application. This system is implemented in
account, procurement now the 4th module discrete manufacturing is being
implementing. This application is very fast which will make them more competitive. The
current database in use is oracle based over 6.0 named as ‘SMARTERM’, which is
good software for coordination of different activities through out the organization.

4. INTRODUCTION OF THE ORGANIZATION

The Service Industries is a Public Limited Company Incorporated as a private limited


company on 20th March 1957 in Pakistan under the Companies Act 1913 (Now
Companies Ordinance, 1984) and converted in to public limited company on 23rd
September 1959, having its registered office located at Lahore. The word, ‘SERVIS’ is
the Brand name and ‘SERVICE’ is the registered name of the Company. It is a public
limited company listed in Karachi and Lahore stock exchanges. It is a part of Servis
Group. Its annual revenue of PKR. 12.7 billion. It is merely engaged in the
manufacturing and sale of footwear, tyre tube and technical rubber products and has
been the largest exporter of footwear from Pakistan for a decade.

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The company employs more than 9,000 people in its facilities located in Gujrat and
Muridke. Besides capturing local market the company’s products are also exported
primarily to Germany, Italy, France and United Kingdom.

Service Industries Limited is the largest shoe manufacturing enterprise in the country.
The govt. appreciated the efforts of the company, for the first time in 1968 when it
awarded the PRESIDENT’s EXPORT TROPHY CLASS I. Since then, the company is
the lancets Exporter of manufactured articles; Leather, canvas shoes. The company
was again awarded the PRIDE OF PERFORMANCE TROPHY by the PCCI in 1977. In
the subsequent years, the company has been awarded numerous trophies of awards as
an acknowledgement of its sheer hard work of dedicated efforts.

At present the company has the shoe manufacturing factories at GUJRAT and
MURIDKE. There are four factories operating at Gujrat employing - 5083 employees.
These are:-

 Leather Shoe Factory (LSF).

 Cycle Tyre & Tube Factory (CTT).

 Motorcycle Tyre & Tube Factory (MCTT).

 RAG Division.

The factory has highly sophisticated test laboratory manned by qualified and trained
personnel. Other than the MCTT & RAG Div own well-equipped laboratories. It is here
that the further products are developed & tested thus ensuring the success of the
company.

Leather Shoe Factory and MCTT are ISO 9001 certified where as other companies are
under process.

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Each factory comprises of about five hundred to thousand workers depending upon the
workloads. The factory’s peak season starts from September to April. During this period,
the factory hires extra workers and lays them off after the period once the production is
normal.

SIL’s Head Office is located at Lahore. The entire organizational authority is


represented with the help of Organizational Chart, which is headed by a RESIDENT
DIRECTOR.

Actually, Service is a group of companies with its two major complexes located in Gujrat
and Muridke. The Gujrat complex consists of four manufacturing units whereas the
Muridke complex hosts three production units. The wide range of products
manufactured includes Leather footwear, Textile, Cycle, Motorcycle & small car
tyres/tubes, Respiratory Anti Gas masks, Medical syringes and water purifiers.

The Leather Shoe Factory comprises of about 2,600 employees. LSF production
capacity per day is about 35,000 pairs in which 25% sports shoes, of export and
domestic articles. Now the management decided to install a new machine keeping in
view the perspective increased demand of its products. In return it will enhance its
production by approximately 1,500 per day. To improve its products quality standard
and well-controlled rejection limit allowed is 2.5-3.0 % moreover 95 % of its total exports
are meant for European customers. It have no hesitation in claiming that Service makes
the most complicated and diversified range of footwear for its export customers
including the tough & rugged Motorcycle Boots for its United Kingdom’s customer the
whole year round.

In domestic market Service offers its unique range of polyurethane shoes, which no
competitor has equaled or excelled. Service sports shoes are the most popular brand in
the market which has achieved the Brand Award 2008.

The factory follows the motto “customer satisfaction at priority” and that is the
reason it is thriving for the last many years.

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Tyre Division is one of the group of Service Industries comprises of two leading units
Motor Cycle and Cycle Tyre & Tube Factories located at G. T. Road, Gujrat. It also
holds market share of 45% and 55% in Motorcycle and Bicycle tyre and tube
respectively.

Tyre Division has been supplying tyres & tubes to all major original equipment
manufacturers (OEM) with high share like 50% to Atlas Honda Limited (AHL), 50% to
Dawood Yamaha and 100% to Sohrab Bicycle Manufacturing Company, Lahore. Tyre
division sales network comprises of 12 major distributors in which 5 distributors are for
bicycle tyre & tube and 7 for motorcycle tyre & tube sales. The company employees all
in all 5,083 at present but tyre division comprise about 900 employees. The production
capacity per day of bicycle tyre & tube is 18,200 and 22,000 in number with rejection
2.5% and 1% respectively. Similarly production capacity per day of Motorcycle, Scooter,
Trolley, Rickshaw and ULT tyre & tube is 11,365 and 30,815 respectively in numbers
with rejection rate of 1.5% and 0.5 % respectively. Rejection material wastage and claim
percentages are itself a measure of quality standard.

5. OVER VIEW OF THE ORGANIZATION

a. History of the Organization

In the year 1941, three young friends like CH. Nazar Mohammad, CH. Mohammed Hussain from
Gujrat district and Mr. Mohammad Saeed from District Gujranwala, fresh college graduates
started business at a small scale at Lahore. It started its functions at Servicepura, a town 20 km.
from Lahore, as an independent Co., Governed by its Board of Directors (Ch. Nazar Muhammad,
Ch. Muhammad Hussain, Ch. Muhammad Saeed) and operated by its own management.

Within years, their business flourished and they were making supplies of their products in every
corner of undivided India. Although the company suffered huge losses, at the time of partition,
due to outstanding payments for supplies made on the
other side of the border. The company had to take a new start and search for new markets. The
Directors of the company were not discouraged and continued their honest efforts and worked

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hard. Once the business expanded, they had to look for new sites for the installation of factories.
GUJRAT, being the home district, they decided to install the new factories here. As a first step,
‘Hilal Tanneries’ was built in Gujrat which started functioning in 1954. Ten years later, in 1964,
the shoe factory followed by a textile mill was also set up in Gujrat. This was in addition to a
shoe factory. Their organization was then built up in a most organized and scientific manner. The
company had opened its own WHOLE SALE and RETAIL SHOPS all over the country, enlacing
the consumers to buy shoes at fixed prices which were a new trend at that time. This was much
appreciated by the consumers. The company then took another step and entered into the
EXPORT market realizing that the country was in dine head of foreign exchange.
The exports were made on INTERNATIONAL STANDARD and RIGHT TIME delivery became
the basis and the hall mark of ‘SERVIS’ and the same trend continue.

6. SERVICE GROUP OF COMPANIES:


Service Group is Pakistan's largest footwear manufacturer and exporter. It also has interests in
retailing its Group Company, Service Sales Corporation, is the country's largest retailer and
wholesaler of footwear. The Group has diversified interests in Rubber products including tyres
and in defense industry products.

The Group was set up in 1958 and today has sales of more than Rs.7.68 billion (US $ 90.35
million). The Service Group employs 9000 people in its following Group Companies. Service
Industries Limited, Gujrat is one of the biggest manufacturing concern firm, Service Industries
manufacture the Leather, Canvas, Tyres and Tubes in Pakistan. Followings firms are include in
Service Group;

 Service Industries Limited.


 Service Sales Corporation (Pvt.) Limited.
 Shoe Planet (Pvt.) Limited.
 Servaid Pharmacy (Pvt.) Limited.
 Soul Collections.

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7. Introduction to the Organizations:

Our Vision:
To become a Global, World class and Diversified Company which leverages its brands
and its people.
Our Mission:
 To be a result oriented and profitable Company by consistently improving market
share quality, diversity, availability, presentation, reliability and customer
acceptance.
 To emerge as a growth oriented ensuring optimum return and value addition to
its shareholders.
 To ensure cost consciousness in decision making and operations without
compromising the commitment to quality.
 To create an efficient resource management and conducive business
environment. Evolving an effective leadership by creating a highly
professional and motivated management team fully equipped to meet
any challenge.
 To keep abreast with modern technology and designs b. Introduction
of the organization to optimize production and enhance brand image to
attain international recognition for the Company’s product.
 To set up highly ethical business standards and be a good corporate
citizen, contributing towards the development of the national economy
and assisting charitable causes.
 To adopt appropriate safety rules and environment friendly policies.

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Nature of Organization:
SIL is a public limited company listed on the stock exchanges of Pakistan. It has
annual revenues of about PKR 17 billion and is the largest manufacturer of footwear,
tires & tubes for two-wheelers, and has been the largest footwear exporter of the
country for the last 15 years.

Volume of Business:

Service Sales Corporation (Pvt.) Ltd. (SSC), being Pakistan’s leading retailer, has
always been at the forefront of taking new initiatives to provide the best experience to its
customers across Pakistan. Operating through a network of more than 450+ retail
stores and exceeding 2500 independent retailers in its wholesale network across
Pakistan, SSC today has the largest retail presence in Pakistan. Specializing in the
footwear category, it operates under the banners of Servis and Shoe Planet. Having
been invested in heavily, it today is one of the leading super-brands of Pakistan that
personifies dynamism and trust simultaneously.
SSC also partners with leading brands from around the world like Nike, Hush Puppies,
Pierre-Cardin, Urban Sole, IMAC and CAT, and provides them with commercial
avenues to tap into the developing and potential markets of Pakistan.

8. Policy of the Organization

1. Scope

Policy shall be applicable to the Management and Non Management Staff of Service
Industries Ltd. at Plant site & Head Office.

2. Objective

To ensure compliance to all legal requirements in true letter & spirit

3. Child Labor Prohibition

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At SIL, we strongly believe in the compliance of National & International laws for
elimination of child labor. No one under the age of eighteen (18) years shall be
considered for employment.

4. Equal Employment Opportunity

4.1. The Company strongly believes in providing Equal Employment Opportunity (EEO)
without any exception ensuring that everyone has fair and equitable access to job
assignment, employment conditions, training, and career development.

5. Discrimination

5.1. The Company strongly believes that all employees should be treated equally
without any discrimination on the basis of following factors; • Sex • Race (including
nationality, color) • Marital status • Disability

5.2. In case any employee is aggrieved of any discrimination, he / she will have the right
to make a complain to the competent authority through his Department Head who upon
its receipt may investigate the same and in the event of any veracity further action
including disciplinary measure as the case may be initiated or taken in the
circumstances of the case.

6. Harassment

6.1. It is the policy of the company to ensure that none of its employees is harassed
including sexual harassment or pressurized to achieve any desired objectives during the
course of their employment.

6.2. In case of any complain in this connection shall be viewed seriously by the
management and necessary disciplinary action or remedial measures shall be taken
accordingly without any exception.

7. Teamwork

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7.1. It is the policy of company to ensure harmony and coordination amongst team
members. New team members are warmly welcomed and highly facilitated in order to
gel them up in existing teams. Old team members are also highly respected as they
prove to be role models and act as facilitators for new ones to understand the culture.

8. Information & Communication

8.1. We believe in open communication while maintaining the confidentiality wherever


deemed necessary. The information flows are smooth and no hindrances, as regards to
bureaucracy of position/designation, can disturb the flow except where considered
necessary under confidentiality matters.

9. Smoking

9.1. SILM strictly discourages smoking inside the premises. Though we encourage our
team members to quit smoking however in order to facilitate employees, smoking
corners have been established at main gates. This is also meant for avoiding any
potential hazard because of presence of chemicals within the premises.

10. Fraud & Corruption

10.1. Fraud or corruption counts towards lack of integrity. These two activities are highly
discouraged and totally intolerable. Anyone involved in any of such activity like theft,
embezzlement, fake attendance etc is terminated with immediate effect.

11. Work Timings

11.1. The company works 8 hours a day and 6 days a week. The Timings to be followed
are Commencement Time: 0830 hrs Lunch & Prayer Break 1230-1330 hrs Jumma
Break 1230-1430 hrs Off Timings 1730 hrs

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12.Dress Code

12.1. The company follows a formal dress code. However for works, smart casual is
admissible. Dress code being representation of a company’s culture is supposed to be
followed in letter & spirit. Any kind of dress promoting harassment for fellow colleagues,
against religious, social & ethical values is strictly prohibited.

13. Minimum Wage

13.1. No employee shall be paid less than the minimum wage determined by the Govt.
in accordance with Law.

14. Forced Labor

14.1. The management strongly believes in upholding the rule of law and would not
indulge in any forced or bonded labor malpractices.

15. Drug-Free Workplace

15.1. The management strictly believes in maintaining a drug-free workplace. If an


employee is convicted of violating a criminal drug statute, management reserves the
right to take strict disciplinary action against the defaulter.

15.2. The distribution, dispensation, possession, use or presence in the body system of
controlled substances and illegal drugs is prohibited at any time during working hours
on company premises including Company’s residential areas.

15.3. Use of drugs on or off the job can affect employee’s Health, Safety and job
performance while the company has no desire to interface unnecessarily upon the
private lives of its employees; it must ensure that employee reports to work in a normal
condition which will enable them to perform their duties safely and efficiently.

16. Possession of Arms

16.1. The Company prohibits the possession of explosives, ammunition, firearms or


any other weapons or devises used to inflict injury on its premises. However security

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staff is authorized to keep weapons, only which have been licensed and issued by the
competent authority

9. Competitor:

Servis competitor in Pakistan are following:

1. Unze London Women’s Shoes

Unze is a London brand first company was established in the UK. It is producing high-
quality shoes since 1989. It provides women, men and kids shoes according to the
latest fashion and introduces new styles that people mostly want. Its name is in the top
of the shoe market that is also available in Pakistan. Its special collection for ladies
includes slippers, wedges and sandals collection in really affordable prices.

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2. Stylo Shoes

This is a very famous and most wanted brand of Pakistan provides girls shoes with new
styles. Their shoes are full of comfort with unique beauty, liked by mostly working
women. You can see a large variety of shoes in their outlets. Its collection includes
casual chapels, sandals, and shoes with big and medium size heels. If you are planning
to buy shoes for the wedding event you should visit Stylo. Stylo outlets are present in
almost all cities of Pakistan.

3. Metro Shoes

Metro shoes is a multi-brand started its function from India in 2013 and got a big
success within a short period of time. Its outlets also present in other countries also
especially Pakistani women like to wear its shoes. It is providing high-quality shoes at
very affordable prices this is the big reason for its popularity among girls in a short time.

4. Borjan Shoes

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Borjan Pakistan working from last 18 year and providing good quality shoes for women
and men. The essence of style is fully added into their shoes which impress more to
others. Their shoes are very stylish and comfortable as they introduce the latest
footwear collection. Its collection includes a lot of variety of elegant design casual and
party shoes for men and women. It has 99 outlets in different cities of Pakistan.

5. Hush Puppies

Hush puppies are also in the top of the list of the shoe brand. It is working since 1958
and providing soft and comfortable shoes. This brand sales above 15 million shoes
every year in 165 countries of the world. In Pakistan its outlets also available in major
cities of Pakistan. It is a global brand that delivers a timeless style with dependable

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comfort and quality. Prices are comparatively high but they never compromise with
quality.

6. ECS Shoes

Ehsan Chapel store is a very famous brand of Pakistan, started its operations in 1954
from Anarkali Bazar Lahore. It is providing a big collection of women shoes. It’s chapel
variety is very famous and most girls like to wear its unique and stylish chapels. Its
shoes are available at low cost with high quality that is the basic demand of masses. It
has more than 100 outlets in all big cities of Pakistan.

7. Aerosoft shoes

It is a famous shoe brand working since 1984 and providing quality shoes to its
customers. Aerosoft uniqueness is it is providing shoes with soft and comfortable soles.
Its shoes having a lower density, absorb shocks and resist water, oil, and grease. It also

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provides a huge variety of slippers and sandals. Because of its comfort making this
brand is famous n all over the world.

8. Le’Sole-Needle Impressions

Le’sole-Needle Impressions is one of the best quality shoe brands in Pakistan. Needle
impression is actually was a clothing brand with the passage of time starts producing
quality shoes. Its many shoe outlets are available in Pakistan and UAE. It high heels
collection is the top choice of girls.

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9. Bata shoes

Bata is Pakistan’s most famous brand working since 1942. It is manufacturing high-
quality shoes for every age of people for both men and women. It is serving through a
strong retail network. Its hundreds of outlets available in all cities of Pakistan. Its school
shoes for students are very popular and the top choice of the parents. It is the most
famous brand of Pakistan which is providing best quality shoes in very little prices.

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10. Organizational Structure:

Organization Hirarchy chart

The management structure of SIL is as follow,

Resident Director General Manager Factory Manager/ Project Manage

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The administrative management structure is as follow:

General Manager

Muhammad Bukhaari

Manager Manager Manager I.T Manager Manager HR Chief


Account Costing Support Procurement Security &
Canteen

Chief Technical Chief Engineering


Manager Support

Manager Industrial Manager Industrial


Engineering Relation

Manager Warehouse Manager Warehouse


Tyre Footwear

Factory Manager Factory Manager Factory Manager


Tyre & Tube Div Rag Division Footwear Div

M.C.T.T C.T.T LSF P.U

Planning Manager Production Planning


Manager Tch. Supp Manager Manager

Production Production Production Production


Manager Manager Manager Manager

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. Number of Employees

Company was started the venture with few numbers of employees. Now it become
group of industry and accounted in large organizations of Pakistan. Servis Group is one
of the most respected corporate citizens of the country and has a rich heritage spanning
over half a century. Today the Group is Pakistan's largest footwear manufacturer and
exporter with interests in wholesale and retail sectors. With a growing portfolio of brands
and a nationwide network that touches millions of lives everyday, Servis is one of the
foremost brands in the country. Group is the largest footwear manufacturer, retailer, and
exporter operating in the country and has overall sales of more than PKR 12 billion. It
currently employs close to 9000 people in its following companies.

 Service Industries Ltd


 Service Sales Corporation (Pvt.) Ltd.
 Servaid Pharmacy (Pvt.) Ltd.

Service Industries Ltd. is operating number of business but it has two shoe factories,
head office in Lahore and branch office in Karachi. The total numbers of employees
related to footwear division are more than 8,000 out of which more then 5,000 are
working in Gujrat factory and about three thousand at Muridkey factory and reaming at
head office and branch office. The Gujrat factory further divided in to three portions first
is footwear second is tyre and third is RAG division. The employee’s ratio among these
is 55%, 35% and 10% respectively

10. Main Offices


The Service factories have their Head Office at Lahore. Their Finance, sales and
marketing departments are also working at head office. It is situated at Jail road Lahore.

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11. Introduction of Departments:
Departmentalization is the clustering of individuals into units and units into departments
and larger units in order to facilitate achieving organizational goals. Organizational goals
are achieved more efficiently by the concerted efforts of different departments and there
functions. The functional structure groups jobs into units based upon similarity of
expertise, skills, and work activities.

Service has divided its departments according to functions. Each department is


responsible to handle different tasks. It has number of employees being headed by a
department’s head, which is mostly a manager.
The Service industries situated at Gujart do not have its sales, marketing and product
development department. These departments are working at head office. These
departments work in coordination so that output of the one department makes the input
of the other and hence this process goes on until the completion of the process in
unified way.

Following is the list of departments working at Service Gujrat.

12. COMMON DEPARTMENTS:-

 Human Resource
 Accounts and Finance
 I.T Supporting
 Industrial Relation
 Security
 Canteen
 Costing

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o Costing Footwear
o Costing Tyre Division

 Material Management
o Procurement
o Raw Material Stores
o Material Receiving Store
 Industrial Engineering
o Footwear
o Tyre & Tubes
 Finished Goods Warehouses
o Warehouse Tyre Division
o Warehouse Footwear Division
 Engineering Supporting
o Maintenance TD
o Maintains F.W
o Electrical & Electronics
o Compressor
o Boiler
o Power House
o Molding (Tyre, Tubes and F.W)
o Carpentry
 Technical Department
o Main Laboratory
o Raw Rubber Processing Plant
o P.V.C Molding
 Quality Assurance
o Tyre Div
o Receiving Goods Inspection

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o Production Inspection
o Return Goods & Claim

13. PRODUCTION DEPARTMENT:-

 Leather Shoe Factory


o Planning
o Upper Cutting
o Upper Closing
o Assembly
o Lasting
o P.U
o Sole Making
 Tyre & Tube Department
o Planning
o Motorcycle Tyre Making
o Bicycle Tyre Making
o Motorcycle Tube Making
o Bicycle Tube Making
 Rag Section
o Production Hall

14. Human Resource Department:


The H.R department plays vital role in the prosperity of the organization. In S.I.L Gujrat
the H.R develop job descriptions and Organizational chart and define responsibilities
and authorities of the employees who manage, perform and verify their work
accordingly. Two persons are appointed in the department one is H.R Assistance
Manager and other is his assistant while H.R manager is sitting at Head office Lahore.

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The HR department is responsible to provide the man power to the all other
departments. This department receives demand of the employees from the department
heads where needs the employees.
Then H.R officials evaluate the job with the head of department and after approval by
the G.M the H.R assistant manager appoint the person. There is much specified and
organized way to hire the person that includes Advertising, Screening, testing and finally
interviewing the candidate. More over this department perform following functions:

 Hiring and firing of the Staff Members


 Transfer of staff if needed and job rotation
 Describe the job specification and job description
 Hold and maintain the record of employee
 To conduct the frequent training sessions of the employees
 Prepare the ACR of the employees
 Determine the additional human recourse requirement.
 Sort out the matters of employees at the Flore
 Internship of the students is also arranged by this department along with the
visits of the factory to delegations or visitors.

15. Account & Finance:


At S.I.L Gujrat one manger along with the deputy manger and assistant manger is
leading the accounts department. Double entry book keeping system is being used by
the company. There are about twelve employees working in this department each
person perform specific and separate task. Old database software is gradually wiped
out due to implementation of E.R.P system which is running smoothly and more efficient
then legacy. This department is divided in to two sections. One section is purely
accounts in nature while other is dealing with wages and salaries issues. The account
section has delegated two persons for cash handling and disbursement. This
department dealt with wages, salaries, provident fund, budgets, bill verification,
payments A/P, receipts A/R, pensions, loans day-today expenses and accounts

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management. The wages to the workers are paid fortnightly while salaries are paid
monthly.

The salaries to the workers are made and distributed after every 15 days, while salaries
to the staff if are below 10,000 are distributed monthly at the factory. If the amount is
more then the 10,000 then it is credited to the employees account. The pay to the
workers is also being made twice a month. The persons are performing their work at
department are very experienced.

16. Observation:
I have observed with the implementation of E.R.P system the work load has increased
on the employees due to which company hire more people that also carrying cost.
Repetition of work is increase a like posting in legacy as well as in E.R.P. This is
happening because the system is not interlinked with material management module. It
is in process so that the invoices are being posted in the accounts department instead
of procurement.

17. INDUSTRIAL RELATION:

This department maintains the record of workers like H.R. In the Service industries Ltd.
Gujrat record of staff is prepare and maintains by H.R and workers record is maintain by
I.R. Moreover departments’ responsibilities are to arrange the meetings with other
companies if there is need for any visit by the management. This department arranges
the classes of newly appointed work in the training school. Eight employees are working
in this department leading by a Manager.

18. SECURITY:

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In the S.I.L Gujrat the security department is responsible to keep the law and order
inside the factory. They are responsible to handle any misconduct and to keep the eye
on the workers to stop theft.

This department is being run by the retried major in a much arranged manners. The
security staff is appointed at gates and other important places inside the factory. They
are responsible to check the vehicles and coming persons. Now automatic security
system is installed in the factory close circuits cameras are fixed to check out activities
inside the factory.

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19. CANTEEN-:-

Canteen or mess is meeting the food requirements of its more than 2000 employees at
one time. The rate for food is fixed by the management and it is very economical there
are 2 sections for canteen, one is responsible for all the activities involve in making and
distributed food and other is responsible for the purchasing of required edible things
along with grocery.

There is a management committee for the smooth running of canteen matter, headed
by factory managers. The other members of the canteen committee are head of
different departments.The canteen is divided in to three portions, one portion is
reserved for worker, other is reserved for non-managerial staff and last one for the
managerial staff.

20. COSTING-:-

Costing department performing very important function it allocate the materials and their
quantities to be required for the bulk production and prepare the cost sheet of each
article.

Cost sheet is very important document that comprises very important detail for top
management. It includes the value of material, overheads, percentage of gross profit,
net profit, and contribution margin of one unit. It is divided in to two sections one is
called costing shoe division and other costing Tyre division. Eleven persons are
performing their jobs in the department three are engage in Tyre division and eight are
in Footwear. Department receives the orders from planning department raise bill of
material that Includes how much material to be required to produce the order and how
much value it carries. It works on the basis of specifications received from model room
and standard rates of material received form material management.

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21. Main Responsibilities & Documents of Costing Department

o Preparation of cost sheet


o Preparation of Material Estimate sheet
o Material requisition issue to store
o Pre-costing and post-costing
o Monthly profit & loss statement
o Calculate the Material, Labors and F.O.H
o Prepare the annual budget on production base
o Valuation of Work in process on daily and monthly basis
o Apportionment of overheads to their relevant cost centers
o Comparison of budgeted vs. actual overheads.

22. MATERIAL MANAGEMNT-:-

Material management perform vital role in the organization this department made of all
type of purchases includes domestic and foreign the responsibility of this department.
Department is divided in two segment local and foreign purchases separately.

Local department further divided in to 6 sections that include Leather, Packing,


Chemical, Synthetic, Grindries and Technical equipments. Moreover working on
inventory management and arrange the material timely is the key responsibility of this
department. Manager of material management is responsible to ensure the delivery in
time and manage the raw material inventory level stable. Whole production is
depending on it for example if the material is not received in time or any quality

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discrepancy in the material the production will ultimately suffer. There are fourteen
employees working in this department. Manager of material management is responsible
to controlling various sub departments which are reporting to him that are:

 Procurement of Material
 Raw Material Stores
 Material Inspection Store (Receiving Room)

23. Procurement Department

Procurement department is the back bone of Service Industries limited because at each
level of production raw material is needed and there are so many items involved of
different and colours. Procurement department raise the purchase order on the basis of
bill of material that receive from costing department and made all adjustment of material
to avoid dead stock. Department establish and maintain relations with suppliers and
ensure them to delivery with in the lead time. Lead time for local purchase is 40 days
and for import is 3-months.

24. Scope

Purchase, Planning and Quality Assurance.

25. Responsibilities

Procurement Officer determines whether to negotiate new purchase orders or amend


existing orders based on the manufacturing schedule. Planning Officer reviews
purchase orders based on the quantity of the order and the delivery requirements and
ensures all items ordered be adequately defined through "Estimation Sheet" or sample

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or according to the specification of the product. These Records are available for
reference to communicate with customer.

26. Raw material Receiving Room

As per company policy that all material which has receives in the factory main gate first
unloads at receiving room. The receiving rooms inspect the material to make sure that
the material is according to documents enclosed which is called delivery challan. It only
ensure the quantity and not quality. If the material is found complete it generates
approval slip which is sent to the quality department along with the sample of the
material for quality checking. If the material is not passed by the quality department it is
rejected and the gate pass is created having the reason of rejection which is signed by
the authorities and the material is sent back to the supplier. In case the material is
passed the receiving challan is generated which is send to the relevant store along with
the material.

 Main responsibilities of receiving room


o Receiving all commodities
o Counting of material
o Bulk quantity will be refer directly to the related store
o Checking the material according to Challan
o Issuance of approval slip
o Inspection of material & comparing with sample
o Sending of material for production reference
o Placing passed material at write section & rejected in rejected portion
o 100% quality needs to be checked of synthetic

27. Raw material Stores

Stores are built in the organization to hold the stocks and for safety of material. Material
is lying in the stores is very organized manners along with their bin card and computer

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codes. There are numbers of stores which include chemical store, technical store,
leather store, packing store, synthetic store, grindery store, technical store and sole
store. Stores receive the materials from the receiving room after approval then it counts
the materials and if found correct it generates the receiving report which assures that
the material is taken on charge as stock in hand and credited to supplier. The store is
also responsible to issue the materials to the production unit against indent. The
materials in the stores are kept in manners; whole store is divided

in the plots or blocks and racks. The materials are kept in the plots by attaching the
identification card so that it can be traced easily.

28. FINISH GOODS WAREHOUSE-:-


The shoes which are manufactured in the production hall are sent to the finished goods
godowns, where they are stored until they are dispatched to its destination. Before
dispatching they are segregated according to the requirements of the depots and the
retail outlet. There are four stores for the finished goods which are retail store,
wholesale, export godown and MCTT and CTT godown.

The retail is responsible to dispatch its goods to retail outlets, while wholesale godown
delivers its goods to the depots; the export godown dispatches it to the port at Karachi
where it is to be dispatched abroad via sea. The two stores retail and wholesale deals in
the local brands and they are under the supervision of the Service Sales Corporation
and not by the factory.

29. INDUSTRIAL ENGINEERING:--:-


It is new department exist recently in service Gujrat. Purpose to create this department
is to measure and improve the out put and operational efficiency of the production unit.
To check the discrepancies in production hall i.e. in plant or worker output if any found
then try to remove it. So that productions not suffer and product can be produce with

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their full capacity. Three persons are employed for this department in which one
manager is leading other two.

30. ENGINEERING SUPPORT:--:-


It is supporting department chief engineer heads this department with number of
engineer and technicians. This department supporting in term of:-
 Maintenance of Tyre and Footwear section
 It comprises Electronics and Electrical division
 To monitor and controlling the compressor work efficiency
 To monitor and controlling the Boiler work efficiency
 Power house working
 Maintenance of various types of moulds which is used for production
 Checking and controlling carpentry section.

This department is responsible to maintain the all factory asset running smoothly if
undertakes preplan maintenance of all the machinery after the specified period. Each
department who owns machinery is designated with a team of engineer and technician
who keep the machine running. They are also responsible for the maintenance of the
building. They are number of mechanical and electronic engineer they keep the entire
physical infrastructure of the entity in good condition. District Gujrat is famous for its
furniture products, so the carpentry shop at SIL Gujrat has also good carpenter,
supervised by the senior carpenter. The head of this department is chief engineer. The
SIL Gujrat requirements are being fulfilled internally by the carpentry shop.

31. TECHNICAL SUPPORTING:--:-


Chief Technical Manager is the head of this department. All material that includes
process of chemicals is control by this department. It includes Raw Rubber processing,
Main Laboratories and P.V.C Molding and pressing. There are two laboratories at SIL
Gujrat one for shoe division called main laboratory other for tyre division both these

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laboratories are being headed by the chief technical manager and there are number of
qualified technician are sporting him. The laboratory inspects the incoming material
which required lab test that they are free from band chemical and recording to their
specification. They also undertake any other test recommended by the quality
department to check the material they also instigate the material during the process of
production to know any effect of process on the shoe during manufacturing.

If any problem is diagnose at any stage of process they are responsible to come up
with reasons of that problem and suggest measure to control the laboratory is equipped
with latest Technology of the time and they have very sensitive machine to exclude the
chances of any miner machine error.
32. QUALITY ASSURANCE DEPT:-

Quality assurance manager is appointed to check out the qualities matters and
responsible to deliver the goods to finish godowns to avoid end customer
complaints and to goodwill for the company.

The Company’s Management has defined and documented its policy for quality,
which includes its objectives and commitment to quality and customer
expectations.

The company ensures that its quality policy is understood, implemented and
maintained at all levels of the organization to guarantee maximum benefits and
achievements in the shortest possible time.

The company has developed job Descriptions of all the personnel who affect
quality so that they are aware of their reporting function and detailed job
parameters.

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The company identifies and provides adequate resources regarding men &
materials, up-gradation of machines, tools and equipment to maintain and
improve its quality system for production verification and other activities.

The Management Representative in addition to his other duties is responsible to


establish, implement and maintain the quality system and gives feedback to the
management regarding performance and progress.

The Management Review Meetings are held to review the quality system at
defined intervals sufficient to ensure is continuing suitability and effectiveness in
satisfying the requirement of ISO 9001: 2000 standards.

Claim and Return goods.


It is duty of Quality assurance manager look after the claim goods. This
department receives these shoes and makes report of its defects and sends to
the relevant persons to check whether the claim is justified or unjustified. If the
claim is justified means that the customer is right to claim the defective is
replaced with the new one and the measured are taken to rectify the error in
future. If is not justified no replacement is made

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ACTIONS & METHODS
The Quality Policy and Objectives have been translated into Urdu language.
The company makes sure that this policy is understood, implemented and
maintained at all levels throughout the Service Industries Ltd.

o Creating awareness at all different levels.


o Inserting it in agenda of meetings.

33. PRODUCTION DEPARTMENT:-


In manufacturing concern the largest and the far most important department in any
factory is always is production department. Production department is divided according
to their functions and operation wise they are in align in such a way that output of the
one is the input of the other. In the service industries Footwear section

Main production department is Leather Shoe Factory (LSF). Factory manager is leading
this department with his team. Further this department comprises several

Departments and sub-departments. In Leather shoe factory main departments are


Lasting and P.U. in lasting departments assemblies lines produce sandals, chapples
and children shoes while in P.U department automatic direct injections machines are
used and it made close supports shoes. More then 500 persons are employed in the
L.S.F. other departments are includes in LSF are:

34. Planning Department


Planning department also controlled by factory manager. Planning department is
responsible to checking out projections, capacities and routing of orders. Planning

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department perform very effective work in the factory without planning it is not possible
to complete the job.
All the jobs are issued through planning with allot plan numbers to all list down
departments.

35. Upper Cutting


In this departments cut the skins in pieces for further process and transfer to next
department along with delivery report.

Closing Section
In this department cutting pieces are assembled and stitched then transfer to assembly
room correspondingly with delivery report is issued at each job.
Assembly room
In this department complete upper without sole are received from preceding department
and stores in organized manner to issued for job accomplishment.
Lasting & P.U Department.
In this department semi finished product are completed and packed. Then products are
transfer to finish godowns with tagging and marking.

36. MARKETING DEPARTMENT

Marketing Department plays very effective role all the orders are being processed in the
factory premises are receive form marketing department. Marketing department of
Service industries is performing following functions:
 Marketing department working on the assessing customer need.
 Developing the marketing mix i.e., product, price, place and promotion.
 Analyzing sale of products.
 Collecting the Orders.

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 Helps to create the design of product and negotiation prices to customers.
 Delivering the order to manufacturing department to convert in product form.
 Deliver the right product to right place to right people on right time.

Where as in perspective of export the export department works on it they have their
agent in the outside the countries they charge their commission and perform their work
for service.

37. Benefits of Functional structure of Department:-


Service industry Gujrat is using Functional structure that is a type of
departmentalization in which positions are grouped according to their main functional (or
specialized) area.
Typical functional form of organization has several major advantages that the service is
enjoying that are.
 In-depth development of expertise is encouraged.
 Employees have clear career paths within their specified function.
 Resources are used more efficiently.
 Economies of scale may be possible because of specialized people and
equipment.
 Intradepartmental coordination is facilitated and it improve efficiency.
 Specialized technical competencies may be developed and may constitute a
competitive advantage.
The introduction and brief functions of these departments are as follows, however these
department work beyond this it is just their basis functions or working:
38. COMMENTS ON THE STRUCTUREOF ORGANIZATION
The structure of service industry limited Gujrat is functional. Hierarchy of each
department is defined according to need of organization. It has large number of
departments in which positions are grouped according to their main functional (or

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specialized) area. There are very few cases at SIL Gujrat where two or more
department are being headed by a single person like canteen and shoe division.

There is a long chain of command, each chain member having one or more sub-
ordinates there are large number of level like resident director, general manager,
managers, Assistant managers, executives, staff, supervisor, and workers. A very short
spans of control each member having. Every manager at SIL is trying to keep most of
the authority in his own hands; they are not willing to delegate these powers to the
subordinates and or at continuous try to increase their power by holding maximum
resources. They also keep the key decisions at their own and do not interested to share
the key matters with team members.

39. PROCESS OF DATA COLLECTION


Human Resource department of Service Industries Limited organized and route my
training program in such a way that it is list down in scheduled form and indicating the
day and date in all the departments, factories which has been approved by GM. I have
used the following methods of data collection during training;

 Discussions and conversations with department’s heads and their Assistant


Managers and also discussion with subordinates
 Study the hierarchy chart of organization and observe the daily reports has been
generated by relevant department.
 Meet the marketing representative during his visit at the service.
 Study of website of service.
 Observations and meeting with workers and lower staff on the factory floor study
of official documents and daily reports.

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40. MY TRANING PROGRAM

The training that I have taken covers 2 departments. The detailed working of each
department is as:

 ACCOUNTS AND FINANCE DEPARTMENT:

Being as B.Com.(Hons) student initially I was sent to Accounts and Finance


department where I worked for Three weeks and have a very profound idea about
following documents and practiced as well, these are;

41. Salient Features:


 It is based on double entry system.
 All procedure to maintain the accounts is now computerized.
 Oracle ERP System (E-Business Suite) has been implemented.

The competitive priority of Accounts and Finance


the Oracle ERP System with an investment of Rs. 50 million. Its functional module is
fully implemented and achieving targets whereas payroll and supply chain module is in
pipeline.
The accounting procedures employed in a company reveal the overall condition of the
company management. Accounting in the simple words is the counting of incomings
and outgoings of an organization. For this purpose all the companies hold record of
every transaction in their books through the accounts. The books employed for this
purpose are called ledgers. Service Industries Ltd has installed modern accounting
procedures. The head office receives vouchers regarding the happenings at their
factories daily. Service Industries Ltd maintains the following statements or vouchers in
its accounting procedures at the factory.

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42. Voucher System:

“A piece of paper that may be exchanged for goods or services.”


For an unqualified audit report the essential document is Voucher. Every transaction is
recorded through Vouchers. There are several kinds of Vouchers for example cash
payment voucher, journal voucher, bank receipt voucher and bank payment voucher.
1. Cash payment voucher:
A voucher is made when any cash transaction taken place. For example we purchase
any supply and made payment through cash then we record it by cash payment
voucher. e.g.

Office Stationary Debit


Cash paid Credit

2. Journal voucher:
Journal voucher is used to record internal documents like intercompany material transfers,
expenses and head office advices for expenses in ERP module of General Ledger (GL).

Deprecation exp (income statement) Debit


Assets (balance sheet) Credit

3. Bank receipt voucher:


A bank receipt voucher is made when any payment received by cheque/bank. For
example we made sale of any kind we record it by bank receipt voucher. e.g.;

Bank Debit
Sales Credit

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4. Bank payment voucher:
A bank payment voucher is made when any payment paid by cheque/bank. For
example we purchased any material we record it by bank receipt voucher. e.g.

Purchases Debit
Bank Credit

Also I have learnt how to maintain the Journal, Ledger, and Trial Balance in ERP. I have
also gained knowledge of cash flow statement.

43. Sources of receipts:

The following are the sources of receipts in SIL Gujrat;


1. Recovery from C.T.T & MC TT.
2. Recovery from sales of shoes/Tyre tubes through fair price shop.
3. Recovery from SSC on account of shoes sold on direct basis.
4. Sales proceeds of left over raw material.
5. Retail stores’ sales of shoes.

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44. Payments:

The following are the payments in SIL Gujrat;


1. Wages to workers.
2. Salaries to staff.
3. Fringe benefits.
4. Utilities expenses are made on reimbursement basis.
5. Government Dues.

The following payments are made to Government;


1. Custom Dues
2. Sales tax.
3. Electricity, Sui gases and telephones expenses.
4. Employees’ old age benefits subscriptions 5% per individual.
5. Employees’ social security fund subscription 7% per individual.

The following payments are made to Suppliers;


1. The suppliers are paid on credit/cash basis
2. Venders are paid on cash basis.
3. Foreign suppliers are paid up to a limited level.

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45. Working activities during Internship:
Task # 1 (1 July, 2019 to 07 July, 2019)

Muhammad Awais Department: Accounts

Br. Name: Servis industries Limited

Supervisor: Mr. Gohar Ayoub

S.# Date Day Activities

1 01-07-2019 Monday Introduction with supervisor and brief


introduction of accounts department. He tells
me about Electricity challans and A/R invoices.

2 02-07-2019 Tuesday In this day I arrange the inovices .

3 03-07-2019 Wednesday Complete the previous day remaining work.

4 04-07-2019 Thursday See the how the software work like Oracle what
kind of data they required.

5 05-07-2019 Friday Finally work on software Oracle. Patched e-


voucher with original voucher.

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6 06-07-2019 Saturday Help the E-Auditors on finding of original
voucher and arranged the voucher registers.

Task # 2 (08 July, 2019 to 14 July, 2019)

Department: Tax
Br. Name: Service Industries Limited
Supervisor: Mr. Chan Peer Aswad

S.# Date Day Activities

1 08-07-2019 Monday Introduction with supervisor. Prepare debit notes


for (rate difference, excess qty, etc).

2 09-07-2019 Tuesday Posting of invoices of sale of R.M in ERP.

3 10-07-2019 Wednesday Introduction of rate of tax and how they apply.

4 11-07-2019 Thursday Prepare Sale tax invoices

Prepare Scrap Invoices and posting of ERP


system.
5 12-07-2019 Friday

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6 13-07-2019 Saturday Tele the sales tax invoices with the system.

14-07-2019 Sunday Off.

Task # 3 (15 July, 2019 to 21 July, 2019)

Department: Accounts and Finance


Br. Name: Service Industries Limited
Supervisor:

Chan Peer Aswad

Mr.Sohail Ahmed Rizvi

Mr Faizan

S.# Date Day Activities

1 15-07-2019 Monday Approving supplier invoices after confirmation


the rates and quantities on invoices.

2 16-07-2019 Tuesday Preparing debit notes for quantities rejected


and difference of rates.

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3 17-07-2019 Wednesday Posting manual invoices.

4 18-07-2019 Thursday Budgeting , forecasting preparation method.

5 19-07-2019 Friday Journals Voucher Preparation and posting


provisions.

6 20-07-2019 Saturday Preparing and arranging vouchers for


approved invoices which are ultimately
attested by manager accounts.

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Task # 4 (22 July, 2019 to 29 July, 2019)

22-07-2019 Monday Only attends work.


23-07-2019 Tuesday Understanding of attends report.
24-07-2019 Wednesday Leave posting and ATM card delivering.
25-07-2019 Thursday Absent due to heavy rain.
26-07-2019 Friday Same practices of previous days.
27-07-2019 Saturday ATM card entries.
28-07-2019 Sunday Off.

Task # 4 (29 July, 2019 to 04 August, 2019)

29-07-2019 Monday Payroll understanding and making process.


30-07-2019 Tuesday Finding application from previous year applicants and
ATM card finding and delivering process.
31-07-2019 Wednesday Dispatch the nomination form with employees file.
01-08-2019 Thursday How to increase the salaries.
02-08-2019 Friday Dispatch the nomination form with employees file.
03-08-2019 Saturday Leave.
04-08-2019 Sunday Off.

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Task # 5 (August 05, 2019 to 12 August, 2019)

05-08-2019 Monday Social Security understanding.

06-08-2019 Tuesday Dispatch the nomination form with employees file.

07-08-2019 Wednesday Dispatch the nomination form with employees file.

08-08-2019 Thursday Provident fund understanding.

09-08-2019 Friday ATM card delivering.

10-08-2019 Saturday Understand the Salary slips process.

11-08-2019 Sunday Off.

12-08-2019 Monday Eid holiday

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46.SWOT analysis:
 It is a very important for any organization to know about its strengths,
weaknesses, opportunities and threats to compete in the industries. So by the
help of environmental analysis and organizational structure, I can find out the
opportunities, threats, strengths and weaknesses.

Strengths:

 Lower cost are leads to the higher profit for servis. A low cost leader undercut the
rivals on price.
 Only few company has cost department and servis is one of them, who has
independent cost department.

Latest technology:

 They have a advance technology and modern equipment that help them in
producing goods.

Employees benefits and reward:

 Servis is providing health, transport and pension facilities to its employees.

Customer loyalty:

 Customer are loyal to servis industry.

Brand name:

 A strong brand name is a major strength of company.


 Having a lot of outlets in the country.

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Weakness:

 A lack of new product.


 Centralized decision making.
 Resistance to change.

Opportunities:

 Having a new modern technology.


 Low price.
 Replacement of infrastructure.

Threats:

 Political risk.
 Change in government regulation.
 Change in dollar price.
 Increase in competition.

47.Suggestions\Recommendations:
 Get personal. Your customer want to feel like they have access to real
people, not bots and FAQs.
 Be available. All part of the country.
 Cater to your customers.
 Create communications.
 Enhance your customer service strategy.
 Make sure your reps are engaged.
 Get a feedback from your customer.
 Provide basic training to your employees.
 Provide basic communication training to security gaurds.

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Service industries limited Page 55

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