Internship Report(SEIMENS (Pakistan) Engineering Company.Ltd)

Submitted By:

Majid Ali

Submitted to:Mr. Ghulam Nabi

Institute:

Superior University Lahore

Course:MBA

(Finance)Department:

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Switch Board(SB)

In the name of Allah most gracious most merciful

SIEMENSSIEMENS (Pakistan)(Pakistan) EngineeringEngineering

Company LimitedCompany Limited

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Table of ContentsTable of ContentsSr.No. Description Page No.

1 Introduction 5

2 Acknowledgement 6

3 Company History 7

4 Siemens Pakistan History 9

5 Major Competitor 11

6 Major Customer 12

7 Siemens Pakistan 13

8 Board of Director&Management 14

9 Our vision & Mission Statement 16

10 Organizational Structure 20

11 Business Division 22

12 Performance High lights (2009) 25

13 Experience in Siemens 27

14 Recommendation 29

15 Bibliography 30

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Total Pages: 30

IntroductionIntroduction

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 company’s 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.

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AcknowledgmentAcknowledgment

I pay special thanks to:

Mr. Ghulam Nabi (Dy. Manager SB)

Mr. Suleman Ahmed (Team Lead)

Mr. Athar Ashfaq (Commercial Officer)

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Company HistoryCompany 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

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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 Beginnings and early development

1865 –1890 Company policy and international projects

1890 –1918 the second generation

1918 –1933 a period of transition

1933 –1945 The National Socialist war economy

1945 –1966 Postwar reconstruction and emergence as a global player

1966 –1989 United under a single roof

1989 – 2005 Stepping into the third millennium.”

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

electronics.

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SIEMENSSIEMENS Pakistan Pakistan HistoryHistory

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.

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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

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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 COMPETITORSMAJOR COMPETITORSThese are the major competitors:

ABB (Italy)

Areva

Climax

Elmetec

FICO

PEL

Schneidar

Transopower

Transfab

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MAJOR CUSTOMERSMAJOR CUSTOMERSSIEMENS 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

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SIEMENSIEMEN

PakistanPakistan

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.

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BOARD OF DIRECTORS

Sohail Wajahat Siddiqui, KarachiChief Executive Officer

Stephen Schneider DirectorTajammal Hussain Bokharee, Lahore DirectorDr Udo Niehage DirectorKlaus Stegemann, Munich DirectorZahid Hussain DirectorGerhard Wilcke, Karachi Director

Syed Babar Ali, Lahore (Chairman)

MANAGEMENTMANAGEMENT

Sohail Wajahat Siddiqui Chief Executive OfficerGerhard Wilcke Chief Financial OfficerS.Nadeem Ali Kazmi Power Transmission & DistributionNasim A. Siddiqui Industrial Infrastructure and Power GenerationSyed Asadullah Medical Solutions, Transportation& Appliances

COMPANY SECRETARYCOMPANY SECRETARY

Mohammad Rafi

BANKERSBANKERS

ABN Amro BankCitibank NADeutsche Bank AGHabib Bank LimitedHong Kong & Shanghai Banking Corporation Limited

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Meezan Bank LimitedMuslim Commercial Bank LimitedStandard Chartered BankUnion Bank Limited

AUDTIORS:AUDTIORS:

KMPG Taseer Hadi Khalid & Co., Karachi

Registrar and Share Transfer Agents:Registrar and Share Transfer Agents:

THK Associates (Pvt) Ltd, Karachi

REGISTERED OFFICE:REGISTERED OFFICE:

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

Our VisionOur 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 StatementMission Statement

To realize our vision by:

Providing quality to our customer at competitive prices, to their

complete satisfaction.

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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

SIEMENSSIEMENS CORPORATE PRINCIPLES CORPORATE PRINCIPLES

Major corporate principles are as under

Customers Innovations People Responsibility Value

Customers: We strengthen our CUSTOMERS - to keep them competitive

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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.

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OVERVIEW OF SIEMENS PAKISTAN’SOVERVIEW OF SIEMENS PAKISTAN’S

ORGANIZATION AND BUSINESSORGANIZATION AND BUSINESS

ACTIVITIESACTIVITIES

A. COUNTRY-WIDE LOCATIONS

Head office Karachi

Regional and branch offices Islamabad, Lahore, Quetta, Peshwar

B- BUSINESS DIVISIONS

1. Information & communication (I&C) Karachi 2. Industrial infrastructure and power generation (IIP) Karachi

3. Power transmission & distribution (PTD) Karachi

C- BUSINESS

Automation & drives (A&D) Karachi

Medical, transportation system & solar (MTS) Lahore

D- FINANCE& BUSIENSS ADMINISTRATION (FBA)

Karachi

E- CORPORATE DEPARTMENTS

Karachi

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PRINCIPAL BUSINESS FUNCTIONS OF PRINCIPAL BUSINESS FUNCTIONS OF SIEMENSSIEMENS

PAKISTAN ENGINEERING CO.LTDPAKISTAN ENGINEERING CO.LTD

1. Sales & Marketing

2. Engineering & Design

3. Manufacturing

4. Installation & Commissioning

5. Services

6. Business Administration

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Organizational StructureOrganizational Structure

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CHIEF EXECUTIVE OFFICERCHIEF EXECUTIVE OFFICER

Power Transmission

& Distribution

Industry, Infrastructure

& Power Generation

Automation & Drives

MED Solution, OEM Onshore, Transportation

Systems, Carrier

Telephone IndustriesBUSINESS UNITSBUSINESS UNITSHV

Sub-Station

Transformers

MV Switchboards

PTD Services

Energy Automation

Power Generation

Infrastructure Solution / Siemens Building

Technologies

On Call, Logistics & Maintenance

Information Technology Solutions

Cross Industries Projects

Oil, marine solutions

Generating Sets

Motors and Alternators

Standard Products

LV Switchboards

& Special Projects

Medical Solutions

OEM Onshore

Transportation Systems

Carrier Telephone Industries

Business DivisionsBusiness Divisions

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CHIEF EXECUTIVE 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

Service Management & Delivery

Corporate Financial Functions Financial

ControllingLogistics Support

Corporate Functions

UAEFinancial Services

Shared Services / Real Estate

Human Resources

Information Technology

Human Resources

Governance

Industrial Relations

Corporate Communication

Corporate Quality

And Process Excellence

Management

BusinessDevelopment

Iraq

Strategic Business

Development

Regional Compliance

Officer

Business Administration

PTD

Business Administration

IIP

Business Administration

A&D

Business Administration

MOTAC

Siemens has following businesses

Transportation system

Information and communication

Automation and drives

Medical solutions

Power Transmission and Distribution

Industrial solutions and power generation

SB DepartmentSB 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 (step-

down) 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

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General Purpose Transformers:

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 high-

performance transformers. The high-quality standards set by Siemens are appreciated

throughout the world. For more than 100 years our technology has been state-of-the-

art, 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.

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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

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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.

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Performance HighlightsPerformance Highlights (2009)(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

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to projects being undertaken in the energy

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

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was Rs 165.53(2008: Rs. 203.60). As there

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.

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Experience in Experience in SIEMENSSIEMENSIn 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.

Customer’s 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.

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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.

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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 company’s 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.

Study of Descon Bhakki Project.

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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.

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RecommendationsRecommendationsI 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.

Employee’s 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.

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