Internship Report

(SEIMENS (Pakistan) Engineering Company.Ltd)

Submitted By:
Majid Ali

Submitted to: Mr. Ghulam Nabi Institute: Superior University Lahore Course: MBA (Finance) Department: Switch Board(SB)
1

In the name of Allah most gracious most merciful

SIEMENS (Pakistan) Engineering Company Limited

Table of Contents
Sr.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Description Introduction Acknowledgement Company History Siemens Pakistan History Major Competitor Major Customer Siemens Pakistan Board of Director&Management Our vision & Mission Statement Organizational Structure Business Division Performance High lights (2009) Experience in Siemens Recommendation Bibliography Page No. 5 6 7 9 11 12 13 14 16 20 22 25 27 29 30

Total Pages: 30

Introduction
I wanted to pursue internship in a reputed organization in 2010 despite of the fact that internship was a Learning part of my course. As I have completed my MBA in 2009. I wanted to gain some know how about practical work during studies before indulging into practical life completely. And this was my last chance to do this. I started to search for the companies where my internship experience would be beneficial for me. I started to contact my seniors and teachers for this. My search ended at a few organizations in the end. Siemens was one of those organizations. My teachers recommended me that SIEMENS is the better organization for me. I got impressive comments about the companys repute and brand name from my friends and from the internet also provided me with ample knowledge about the company. Keeping all this in mind I applied in Siemens for internship. Two months after this I got confirmation of my internship in Siemens from HR department of Siemens, Lahore. I started my internship at 1st April 2010 to May 31, 2010. During Two month of my internship; I realized that practical life is far different from what we learn from books. In practical life, management skills also count a lot along with your knowledge. As SIEMENS Lahore is a sales office so your communication skills and your convincing power also really matters because you have to convince your customers to buy your products.

Acknowledgment
I pay special thanks to:

Mr. Ghulam Nabi

(Dy. Manager SB)

Mr. Suleman Ahmed (Team Lead) Mr. Athar Ashfaq (Commercial Officer)

Company History
SIEMENS was founded in Berlin by Werner von Siemens in 1847.

Werner von SIEMENS Made the world's first pointer telegraph Made the Electric dynamo Constructed the world's first electric railway Laying the first telegraph line linking Britain and India Built much of the modern world's infrastructure. Siemens is today a technology giant in more than 190 countries, employing some 475,000 people worldwide.

They work in the fields of Energy Industry Communications Information Transportation Healthcare Components and lighting

While Werner was a tireless inventor during his days, Siemens today remains a relentless innovator. With innovations averaging 18 a day, it seems like the revolution Werner started is still going strong.

Different Phases:1847 1865 1865 1890 1890 1918 1918 1933 1933 1945 1945 1966 1966 1989 1989 2005 Beginnings and early development Company policy and international projects the second generation a period of transition The National Socialist war economy Postwar reconstruction and emergence as a global player United under a single roof Stepping into the third millennium.

Siemens (Berlin and Munich) is a global powerhouse in electrical engineering and electronics.

SIEMENS Pakistan History

1870 - 1st telegraph line from London to Calcutta. 1922 - Siemens first office in Lahore. 1932 - Cable laying project in Karachi. 1950 - The Pak Industrial & Trading Corp. Ltd. is appointed to represent SSW in Karachi. 1952 - Siemens cooperates with the Pakistani government to build a production plant for manual and automatic telephone systems in Haripur. The joint venture Telephone Industries of Pakistan (TIP) is formed. 1953 - Siemens Pakistan Engineering Co. founded as Private Limited Company. 1957 - Switchboards production commenced. 1960 - The Pakistani government awards Siemens Karachi a contract to build a production plant for motors, transformers and switchgear.

1961 - Siemens Karachi succeeds East Asiatic Company (EAC) as representative of SRW. The railway administration awards Siemens a contract to modernize the railway safety installations in West and East Pakistan.

1963 - Siemens became Public Limited Company & Factory for Motors & Transformers. 1967 - Siemens builds a telephone plant in Tongi and a phone cable factory in Khulna. Telephone Industries Corporation (TIC) is founded in Dacca, and Industries of Pakistan (CIP) is established in Khulna. 1969 - Siemens and the Pakistani government form a joint venture named Carrier Telephone Industries (CTI), Islamabad. 1976 - Introduction of Diesel Generating Sets 1981 - Power Transformers production started~30MVA 1987 - Extension in Power Transformer rating~60MVA 1993 - The company begins setting up a GSM mobile radio network 1996 - 412 MW Rousch Combined Cycle Power Plant 1998-Become first Value Added Reseller of SAP 2000-Export order for 132 kV substations for DEWA Dubai, UAE 2002-Launched 1.1 MVA DG Sets 2003-Signed agreement for first desalination plant in Karachi 2004 - Launched new line of Low Voltage Switchgear System of family SIVACON 8PT. 2005- 11 Grid Stations 220kV/132kV for KESC & Acquired Carrier Telephone Industries 2006-New Jabel Airport and Dubai Sports City 132KV Grid Stations, UAE & Ghakkar 500kV Grid Station, WAPDA 2007-SAP implementation in PTCL Siemens Pakistan pioneered to manufacture 220 kV/250 MVA Power & Transformers in Pakistan

2008-New Jebel Ali Airport 132kV Grid Stations Extension Project, UAE & Inauguration of Desalination Plant for DHA Cogen Ltd.

MAJOR COMPETITORS
These are the major competitors: ABB (Italy) Areva Climax Elmetec FICO PEL

Schneidar

Transopower Transfab

10

MAJOR CUSTOMERS
SIEMENS have many customers. Following are the major customers: WAPDA PEPCO Nishat Group Sitara Group Ibrahim Group Umar Group Gulistan Group Columpia Group
Packages Ltd.

Descon Habib Rafiq Pvt. Ltd. Saad Ullah khan & Brothers DHA MEPCO FESCO LESCO

11

ss

SIEMEN Pakistan
Siemens Pakistan Engineering Co. Ltd. is one of the largest multinational companies in Pakistan. Siemens Pakistan engineering Co. Ltd is a public limited company with its registered office and manufacturing facilities situated in Karachi. Being a subsidiary of siemens AG, the products produced in the factory are manufactured under license from siemens AG. The quality of the products is thus interlinked with that of licensing factories of siemens AG whose specialists provide expert assistance and backup as and when required.

The Siemens Pakistan Engineering Company Ltd. was founded in 1953 as a private company, and in 1963, the company was reorganized as a public limited company.

12

BOARD OF DIRECTORS
Syed Babar Ali, Lahore (Chairman) Sohail Wajahat Siddiqui, Karachi Stephen Schneider Tajammal Hussain Bokharee, Lahore Dr Udo Niehage Klaus Stegemann, Munich Zahid Hussain Gerhard Wilcke, Karachi Chief Executive Officer Director Director Director Director Director Director

MANAGEMENT
Sohail Wajahat Siddiqui Gerhard Wilcke S.Nadeem Ali Kazmi Nasim A. Siddiqui Syed Asadullah Chief Executive Officer Chief Financial Officer Power Transmission & Distribution Industrial Infrastructure and Power Generation Medical Solutions, Transportation& Appliances

COMPANY SECRETARY

Mohammad Rafi
BANKERS

ABN Amro Bank Citibank NA Deutsche Bank AG Habib Bank Limited Hong Kong & Shanghai Banking Corporation Limited Meezan Bank Limited
13

Muslim Commercial Bank Limited Standard Chartered Bank Union Bank Limited

AUDTIORS:

KMPG Taseer Hadi Khalid & Co., Karachi

Registrar and Share Transfer Agents:

THK Associates (Pvt) Ltd, Karachi

REGISTERED OFFICE:

B-72, Estate Avenue, Sindh Industrial Trading Estates Karachi-75700

Our Vision
To remain market leader and technology pace setter in the engineering and electronics industry by utilizing the high-tech engineering expertise of the Siemens Group worldwide. To maintain our strong and prominent local presence.

Mission Statement
To realize our vision by:

Providing quality to our customer at competitive prices, to their complete satisfaction.

14

 Generating earning sufficient to ensure a secure future for the company and to protect and increase our shareholders investment. To enhance creativity and job satisfaction of our employees by providing opportunities for personal development, limited only by their own ability and drive. To contribute to the national economy, whilst realizing a strong sense of responsibility to society and the environment. To enhance the investment of our customers through human Excellence, our technology, our Processes, our High Standards of Quality and Financial Strengths. To support and strive for technology transfer to Pakistan through our global resources and local presence

SIEMENS CORPORATE PRINCIPLES

Major corporate principles are as under Customers Innovations People Responsibility Value

Customers:
We strengthen our CUSTOMERS - to keep them competitive

15

Our success depends on the success of our customers. We provide our customers with our comprehensive experience and solutions so they can achieve their objectives fast and effectively.

Innovations:
We push INNOVATION - to shape the future Innovation is our lifeblood, around the globe and around the clock. We turn our people's imagination and best practices into successful technologies and products. Creativity and experience keep us at the cutting edge.

People:
We empower our PEOPLE - to achieve world-class performance Our employees are the key to our success. We work together as a global network of knowledge and learning. Our corporate culture is defined by diversity, by open dialogue and mutual respect, and by clear goals and decisive leadership.

Responsibility:
We embrace corporate RESPONSIBILITY - to advance society Our ideas, technologies and activities help create a better world. We are committed to universal values, good corporate citizenship and a healthy environment. Integrity guides our conduct toward our employees, business partners and shareholders.

Value:
We enhance company VALUE - to open up new opportunities We generate profitable growth to ensure sustainable success. We leverage our balanced business portfolio, our business excellence and synergies across all segments and regions. This makes us a premium investment for our shareholders.

16

OVERVIEW OF SIEMENS PAKISTANS ORGANIZATION AND BUSINESS ACTIVITIES

A. COUNTRY-WIDE LOCATIONS Head office Regional and branch offices Karachi Islamabad, Lahore, Quetta, Peshwar

B- BUSINESS DIVISIONS
1. 2. 3.

Information & communication (I&C) Industrial infrastructure and power generation (IIP) Power transmission & distribution (PTD)

Karachi Karachi Karachi

C- BUSINESS Automation & drives (A&D) Karachi Lahore

Medical, transportation system & solar (MTS)

D- FINANCE& BUSIENSS ADMINISTRATION (FBA)

Karachi

E- CORPORATE DEPARTMENTS
Karachi

17

PRINCIPAL BUSINESS FUNCTIONS OF SIEMENS PAKISTAN ENGINEERING CO.LTD

1.

Sales & Marketing Engineering & Design Manufacturing Installation & Commissioning Services Business Administration

2.

3.

4.

5.

6.

18

Organizational

Structure

CHIEF EXECUTIVE OFFICER

Power Transmission & Distribution

Industry, Infrastructure & Power Generation

Automation & Drives

HV Sub-Station Transformers

BUSINESS UNITS
Power Generation Infrastructure Solution / Siemens Building Technologies On Call, Logistics & Maintenance Information Technology Solutions Cross Industries Projects Generating Sets Motors and Alternators Standard Products LV Switchboards & Special Projects

MED Solution, OEM Onshore, Transportation Systems, Carrier Telephone Industries Medical Solutions OEM Onshore Transportation Systems Carrier Telephone Industries

MV Switchboards PTD Services

Energy Automation

Oil, marine solutions

19

CHIEF EXECUTIVE
Finance and Business Administration Financial Governance Financial Controlling Procurement Governance Company Secretary Central Audit Export control & customs Corporate Information Office / Data Privacy Protection Coordination / Process Management / Business Continuity plan Shared Services / Real Estate Human Resources Information Technology Service Management & Delivery Corporate Financial Functions Financial Controlling Logistics Support Corporate Functions UAE Financial Services Human Resources Governance Industrial Relations Corporate Communication Corporate Quality And Process Excellence Management

Business Development Iraq Strategic Business Development Regional Compliance Officer

Business Administration PTD

Business Administration IIP

Business Administration A&D

Business Administration MOTAC

Business Divisions
20

Siemens has following businesses Transportation system Information and communication Automation and drives Medical solutions Power Transmission and Distribution Industrial solutions and power generation

SB Department
There are so many departments in Siemens Lahore but I was assigned to do my internship in SB department. This Deparment only deals with private sector of Pakistan and also This department provides different things like transformers (power &distribution transformers), control and relays panels, switchboards, circuit breakers, capacitors and so many etc. The main objective of this department is to provide goods and services. It deals with sales of transformers and the above mentioned devices, and supplies orders containing services of different projects. Details about Siemens Transformers: Siemens transformers are completely static electrical devices which convert alternating current from one voltage level to another. The transformer is used to match the voltage supply to the electrical load. They can increase (step-up) or decrease (stepdown) voltages. Since no volts are required for installation, dry type transformers can be located right at the load to provide correct voltage for the application. This eliminates the need for long, costly, low voltage feeders. Siemens general purpose transformers meet applicable NEMA, ANSI, UL, and IEEE standard
General Purpose Transformers:

21

General purpose transformers are rated 600 volts and below for supplying appliance, lighting, and power loads from electrical distribution systems. Standard distribution voltages are 600, 480, and 240 volts; standard load voltages are 480, 240, and 120 volts.

TP1 Transformer:

The TP1 designs include the use of higher grade electrical steel and other features designed to lower flux density and reduce losses especially at average 35% loading where the TP1 measurements apply. To meet TP1 the design engineer must consider both the I2R losses and the core or iron loses. Simple de-rating from a higher Kva will not satisfy the TP1 standards as the efficiency level is dependent on the combination of core (no-load) losses and I2R (winding) losses. The Siemens power transformer product range comprises transformers for power stations, transformers substations, High Voltage Direct Current (HVDC) transmission systems, special transformers for industry and transport, reactors and accessories. A reliable power supply presupposes a sufficiently large supply with highperformance transformers. The high-quality standards set by Siemens are appreciated throughout the world. For more than 100 years our technology has been state-of-theart, including development, manufacture, installation and commissioning. The world market of the future will continue to require high-power and high-voltage transformers. We supply designs that meet all requirements concerning power, voltage, mode of operation, low noise level, connection techniques, type of cooling, transport and installation. They also comply with special national design requirements.

22

Details

We supply made-to-measure transformers that can fulfill all requirements for performance, voltage, losses, operating mode, noise, connecting system, type of cooling system, transport and installation with on-load and off-load tap changers. Depending on the requirements, they can be supplied as single-phase or three-phase separate-winding transformers or autotransformers for power outputs of 2 MVA to over 1,000 MVA and voltages up to 1,500kV. Our distribution transformers for the final step-down have proven their worth over the years servicing power utilities and industry. TUNORMA (with conservator) and TUMETIC (Hermetically encapsulated) have state-of-the-art ratings and outstanding electrical, mechanical and thermal characteristics. Industry and transportation systems make many different demands on transformers. We counter this by offering the widest possible range of transformers designed specifically for the particular application. For example, furnace transformers for steel production or converter transformers for electrolysis plants and for HVDC transmission systems.

Features

We offer product and service range that includes:

Power transformers up to and above 1,000 MVA (three- and single-phase design)

Cast-resin transformers GEAFOL up to 30 MVA Oil-filled distribution transformers TUNORMA and TUMETIC from 50kVA to 2500kVA

Furnace and converter transformers Traction transformers

23

Transformers for HVDC transmission systems Ignition transformers Reactors

Accessories All services for transformers

Benefits

Our customer benefits from:

Lower loss design in transformers, which saves running costs By using optimized designs, there are fewer pumps and fans, which reduce maintenance costs.

Higher reliability, which leads to a reduction in unscheduled outages

Major customers of the department are: Nishat Group Of companies Packages Ltd.
Descon

DHA Sitara Group Ibrahim Gro Umar Group Gulistan Group Columpia Group Packages Ltd Saad Ullah khan & Brothers

Habib Rafiq Pvt. Ltd SB like every business unit is divided into segments of Business Administration and Sales. Mr. Ghulam Nabi is the manger of Commercial business and administration. Mr. Sulaman is the manager of sales and marketing of transformers.

24

Performance Highlights (2009)

New Orders New orders of Rs. 16 billion have been Received during the year showing a Diminution of 69% over last year. This significant reduction in new order value is mainly attributable to two factors. Firstly, in the previous Year we were able to secure extraordinary order Intake due to boom in the UAE market. In the current year we were not able to secure any major order. Secondly, the local market also witnessed a dull situation not only because of the financial Crisis but also due to the domestic economic and Political conditions. Sales turnover The Company was able to achieve the highest turnover volume in its history as the turnover reached to Rs 36 billionshowing an increase of 34% over previous year mainly due to projects being undertaken in the energy

25

sector. The total turnover includes business of Rs. 21.5 billion (2008: Rs. 12.4billion) conducted in Dubai, UAE and in Afghanistan in thearea of construction of High Voltage substations, registeringgrowth of 74% over last year. This increase was attributableto execution of orders received in the previous year.

Profi tability Despite all the odds in UAE and Pakistan market and the unfavorable business conditions, the Company has managed toachieve profi t before tax of Rs. 2.1 billion, showing a declineof 16% as compared to the corresponding previous year. In line with profi t before tax, profi t after tax also recordeda decreaseof 19%. The main contributor of erosionof profi tabilityis the unfavorable exchange rate movement. Earnings per share The earnings per share (EPS) after taxation was Rs 165.53(2008: Rs. 203.60). As there
26

is no movement in the numberof shares, the only contributor to this decline in EPS is the low profi tability. Capital Investment & Future Commitments During the year, the Company strengthened Its manufacturing capacity. The vapor face Oven for large transformer was completed during The year at a cost of Rs 160 million including its Building, which is an integral part of our new 220? Kv power transformer manufacturing facility commissionedlast year. Rest of the capital investments were mainly undertakenon account of miscellaneous replacement, modernization,and capacity enhancement of plant and machinery, extensionof offi ce blocks and procurement of vehicles. As of September 30, 2009, the fi nancial commitments of the company towards procurement of capital goods were Rs 26.584 million.

27

Experience in SIEMENS
In this part, I will summarize my Two months experience in Siemens company ,that what I had actually done in these two months and what knowledge I had gain. On the very first day of my internship, I met Mr. Ghulam nabi who refers me to Mr.Ather Ishfaq. Mr.Ather Ishfaq gave me a brief introduction about company and the working at Siemens Office, Lahore. My department in which I was indulged for internship was Switch Board Depatment. My supervisor Mr.Ather Ishfaq gave me a brief introduction of the department and working here. He provided me an annual report of the company which I studied thoroughly. I shall summarize here the working of SB department briefly. Customer enquiry is received and forwarded to concerned SM/IC sales or Sales Engineer. Verbal/Written or electronic enquiry is registered in enquiry register & allots an enquiry number. Customers stated as well as non-stated product requirements are determined and reviewed If customer requirements are matched with the standard product specifications and product range, a formal quotation is prepared. Calculation sheet is prepared. Delivery schedule is obtained from latest stock position or from Planning/Production/Purchase. If customers requirement do not match with standard specifications and product range, customer requirements are forwarded to Design & Engineering along with checklist. Enquiry detail from Design & Engineering, delivery time from Planning and self costs from BA costing are received.

28

Offer is prepared manually based on Design Enquiry Detail covering price schedule, delivery schedule, technical specifications, standard/specific terms & conditions.

Offer is submitted to customer. Offer is followed up for order with customer and post offer queries from customer are received, re-negotiate and documented. Quarterly offer hit rate report is prepared mentioning details of lost offers with root causes and required corrective measures. Report is submitted to management.

Corrective measures are taken or recommended to the concerned with reference to lost offer analysis. If customer is satisfied with offer then purchase order/LOI through SM sales or directly from customer is received and registered in order register.

Order acknowledgment is sent to customer with in two working days and receipt of PO/LOI. Indent is prepared and submitted to Planning. Indent is received back with delivery schedule. Order confirmation is obtained from Planning/Stores and sent to customer with in 6 working days. Equipment readiness information is obtained from Planning/Production/Stores through email/telephone. Dispatch intimation is submitted with complete detail of product to GS assembly, stores, BA sales and QC. Dispatch note and invoice are prepared in SAP system. Delivery is made to customer as per customer delivery requirement.

29

Now I will summarize about the tasks which were assigned or different manuals which were given to me during my Two Months of internship are.
Placement under respective immediate supervisor Commercial officer on SB

department. Introduction to Siemens Pakistan Engineering Co. Lahore. Introduction to staff and colleagues. Preparation of Internship Activity Chart and Time Table. Getting commercial awareness of Siemens Transformers Division and its history. Detail study of siemens through companys annual report 2008. Study of various types and kinds of transformers produced by Siemens. Question and Answer Sessions with the immediate supervisor on the commercial specifications of Siemens Transformers. Study of various design specifications. Study of various recent tenders completed by Siemens and their technical aspects like 132/11.5KV & 20/26MVA power transformer and 11/0.4KV distribution transformers and control and relay panels. I made an assignment of the questions related to the power transformers and distribution transformers. Study of transformer manufacturing and quality assurance. Study of Tenders; what are Tenders, their compilation, their documentation and their submission. Study of Bids; what are bids, how are they placed, how are they filed, their filing, responding to bids etc.
Brief reading of Letter of Credit (LC) what is it and how it is implemented.

30

 Study of Descon Bhakki Project.

Introduction of SAP and learn about how it is working in the Siemens. Create Purchase and sale order on SAP.

Create invoice on SAP. Three weeks visits in different departments. Two weeks in Transformer Daprtment and one week in Project Management. Study of transformer requirements of various Multinational and govt. owned companies such as MEPCO, LESCO, and FESCO etc. Recap of all the work I did in SIEMENS during the internship Made a final report about my work in Siemens. Farewell speech by the Manager Business Administration, Mr. Ahsan Raza.

31

Recommendations
I would like to make recommendations to Siemens (Pakistan) Engineering Company Limited for their betterment. A better coordination should be developed between

the top management and lower level employees. Pay scale for lower level employees should increase

as compare to competitors. Siemens should retain their good employees by

giving them incentives

Proper training should be given to employees. Employees satisfaction level should increase by

appraising them at the spot and by giving them different incentives like bonuses etc.

Computers here are not advanced and speedy which

can affect the overall performance of Company. So the Company should provide upgraded computers to its employees. For internees, there is not enough space available so

Company should appoint internees according to space in the office.

32