Ufone is a leading telecommunications company in Pakistan that is now owned by Etisalat. The document discusses the internship experience of Umaid Ali at Ufone's Contracts and Procurement Administration (CPA) department. During his 6-week internship, Umaid was tasked with organizing tender files, ensuring they were complete, and uploading information to shared platforms. He also helped with tasks like uploading documents, creating comparison statements, generating purchase orders, and interacting with vendors. The internship provided Umaid exposure to various procurement processes at Ufone through hands-on experience in their SAP system.
Operations Management in Automotive Industries: From Industrial Strategies to Production Resources Management, Through the Industrialization Process and Supply Chain to Pursue Value Creation
Ufone is a leading telecommunications company in Pakistan that is now owned by Etisalat. The document discusses the internship experience of Umaid Ali at Ufone's Contracts and Procurement Administration (CPA) department. During his 6-week internship, Umaid was tasked with organizing tender files, ensuring they were complete, and uploading information to shared platforms. He also helped with tasks like uploading documents, creating comparison statements, generating purchase orders, and interacting with vendors. The internship provided Umaid exposure to various procurement processes at Ufone through hands-on experience in their SAP system.
Ufone is a leading telecommunications company in Pakistan that is now owned by Etisalat. The document discusses the internship experience of Umaid Ali at Ufone's Contracts and Procurement Administration (CPA) department. During his 6-week internship, Umaid was tasked with organizing tender files, ensuring they were complete, and uploading information to shared platforms. He also helped with tasks like uploading documents, creating comparison statements, generating purchase orders, and interacting with vendors. The internship provided Umaid exposure to various procurement processes at Ufone through hands-on experience in their SAP system.
Ufone is a leading telecommunications company in Pakistan that is now owned by Etisalat. The document discusses the internship experience of Umaid Ali at Ufone's Contracts and Procurement Administration (CPA) department. During his 6-week internship, Umaid was tasked with organizing tender files, ensuring they were complete, and uploading information to shared platforms. He also helped with tasks like uploading documents, creating comparison statements, generating purchase orders, and interacting with vendors. The internship provided Umaid exposure to various procurement processes at Ufone through hands-on experience in their SAP system.
Supervisor: Mr. Nadir Hayat Khan Position: Manager Procurement Phone: 0333-5500034 Email: nadir.hayat@ufonegsm.net
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Contents Executive Summary ...................................................................................................................................... 3 Company Overview ...................................................................................................................................... 4 Head Office ........................................................................................................................................... 4 Vision .................................................................................................................................................... 4 Objectives ............................................................................................................................................. 5 Departments at Ufone ........................................................................................................................... 5 Chain of command ................................................................................................................................ 6 Span of Control ..................................................................................................................................... 6 Products................................................................................................................................................. 6 Position and description of duties ................................................................................................................ 7 Project Details ....................................................................................................................................... 7 Organizational/Departmental/Branch Analysis .......................................................................................... 11 Internal Potency .................................................................................................................................. 11 Internal deficiencies ............................................................................................................................ 12 External circumstances ....................................................................................................................... 13 External threats ................................................................................................................................... 14 Main Problem ...................................................................................................................................... 14 Recommendations ...................................................................................................................................... 16 Learning objectives ..................................................................................................................................... 18 What was accomplished through this affiliation? ............................................................................... 18 Facets of my responsibilities ............................................................................................................... 18 Implementation of course knowledge ................................................................................................. 19 How was this internship destined to impact your career? ................................................................... 19 Any other comments you would deem appropriate and relevant. ....................................................... 20 Annexure ..................................................................................................................................................... 21 Hierarchy at Procurement Department ............................................................................................... 22 The Process ......................................................................................................................................... 23 References ................................................................................................................................................... 25
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Executive Summary
To start I would like to thank Ufone for giving me the opportunity to come and be a part of the company and experience the corporate world through their lenses. Ufone has started a summer internship program in which they intended to employee around 150 interns which would be in different departments and gain corporate experience with relevance to their respective fields, and I am glad I was a part of this program. I interned at the CPA department (contracts and procurement administration) sub department being IT procurement which is located in Razia Shareef plaza, Blue Area, Islamabad. The duration of my internship was six weeks which was from 2 nd July 2012 till 15 th August 2012. The basic project assigned to me was organization of tendering, when Ufone floats a tender a complete file is maintained along with the soft copies, my task was to organize those files bring them in a proper format by attaching file separators and labeling them so it is easy to identify that where a certain document would be and in case of need one doesnt have to search the whole file. Moreover I was also required to identify and attach all the missing documents so each and every file was complete with respect to all relevant documents which would make it easy for the managers to obtain a certain document instead of the entire department scanning their computers and making fuss more over this whole data had to be uploaded on Ufone share point as well so anyone interested to get the procurement information could extract it. Uploads to share point constituted of holistic information about the tenders floated including all the relevant details one would need. Along the way I was also assigned some other tasks which included uploading the documents on U portal, Making comparative statements (CS), Making a Purchase Order, scanning and maintaining previous six months POs, giving calls to venders and try persuading them to send in their bids before the due date so process can speed up, clearing and handing over the cheques to venders and various other procurement processes of Ufone on SAP.
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Company Overview
The company commenced its operations under the brand name of Ufone f r om I s l amabad on J anuar y 29 2001. Uf one expanded i t s cover age and has added new cities and highways to its coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat. During the year, as a consequence of PTCLs privatization, 26% of its shares were acquired by Emirat es Telecommunication Corporation (Etisalat). Bei ng par t of PTCL, t he management of Uf one has al s o been handed over t o Etisalat. During the years, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 5885 locations and across all major highways of the country. Dur i ng t he year Uf one adopt ed t he pol i cy of s i mpl i f i ed t ar i f f s wi t h no hi dden charges, which resulted in positive impacts on the usage trends of subscribers as well as total subscriber base, which has increased to 19.4 million. Ufone currently caters for International Roaming to more than 230 live operators in more than1 3 0 c o u n t r i e s a n d i n t r o d u c e d I n t e r n a t i o n a l r o a m i n g f a c i l i t y f o r P r e p a i d subscribers in Saudi Arabia, United Kingdom, United Arab Emirat es, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia, Sri Lanka, Belgium a n d Ku wa i t wi t h l o we s t r a t e s , f e a t u r i n g n o s e c u r i t y d e p o s i t a n d a c t i v a t i o n charges. GPRS Roaming facility is avail able with more than 115 Live Operators across 85 countries The company has al s o been awar ded a new Li cens e f or pr ovi di ng cel l ul ar services in Azad Jammu & Kashmir and Northern Areas. Head Office
The head office of the ufone is located in 13-B, F-7 Markaz Islamabad, Pakistan. Vision To be the leading telecommunication service provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value & employee expectation.
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Objectives
Ufone is a dynamic organization with a powerful culture that allows people to make the most of their skills, personality and career. I developed such knowledge and skills which directed to my career .Customer Service Uf one i s pr oud t o have an ef f i ci ent and f r i endl y cus t omer s er vi ce t hr ough 21 company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Uf one i s poi s ed t o f ace t he ever i ncr eas i ng chal l enges of t he mar ket and i s conf i dent i t wi l l at t r act new cus t omer s . I t has t he abi l i t y t o r et ai n i t s exi s t i ng customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility.
Departments at Ufone
The following are the departments operating at Ufone:
Human Resource Management
Marketing Department
Commercial Department
Sales Department
Finance Department
Payroll Department
Information Technology Department Page | 6
Engineering Department
Contracts and Procurement Administration
Auditing Department
Customer Care
Chain of command At Ufone though managers delegate due to their superior position but in crucial times they forget about their posts and work as team.
Span of Control At Ufone three subordinates are working under every manager and those subordinates have two employees each working under them.
Products Ufone offers both prepaid and postpaid services along with various packages according to the demands and needs of the customer.
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Position and description of duties
The project which was assigned to me was organization of tendering. The department I got in for internship was Contracts and Procurement Administration, Islamabad Blue Area and by the end of six weeks I was clear why ufone needs a procurement department. Procurement department is basically responsible for providing things which are needed by ufone they can be day to day items like stationary or heavy projects like shifting and renovation of office building, ufone has divided the procurement department in three major chunks, marketing, General Admin and IT. All the respective portions deal in their respective areas like General Admin would procure everything which is not under the heading of marketing or IT, this would include stationery, plants, kitchen and bathroom accessories, etc. whereas marketing portion will only entertain marketing portion like giveaways, banners, etc while IT procurement will only look after the IT part like laptops, printers, RFID cards, security cameras, etc. Project Details Initially I was assigned the project of organization of tendering as explained above, each and every document has to be filed for the record, now previously major chunk of the data was in soft form and majority of the documents were missing in the files so it was my responsibility to hunt them down and file them up in a proper manner, so I filed file separators details of which is given below:
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Heading Documents underneath Contract/PO Contract PO NC/Waivers NC Waiver(email)
TOC/Bid bond TOC(Technical) TOC(Commercial) Bid Bond TEC TEC CEC CEC PR PR
Floated Tender Instruction to Bidders Terms and conditions of the contract Technical RFP document Price Template floated Tender floating approval Tender extension approval Budget approval email Technical Technical proposals of all bidders Commercial Financial proposals of all bidders Final negotiated proposals of all venders
At the end Delivery certificate PAC SAC GR Performance bond Cheque details Page | 9
This project was completed on 15 August 2012 and now all these sorted files lie with sir Nadir. I learned a lot from this project and now at the end I know all about tendering, though document extraction was a huge task and I had giant hurdles like TOCs werent there in many files which needed to be printed first and then signed which took a lot of efforts and similarly the PAC and SAC certificates were also difficult to obtain and a lot more had to be obtained but at the end of the day it all paid off when at the last day it was all done. Moreover I was given tasks in between as well like I was said to upload RFP, NC, TEC, CEC and PO on the U portal, though I didnt had a deadline but still I wanted to get it done soon but it took me 3 days of constant efforts as it was not that simple as it sounds, upload portion was easy but finding the relevant documents was quite some work as many missing documents had to be scanned or traced down which consumed time. Then due to further orders I also had to attach the financial portion of the project on the portal, which meant finding and uploading all the quotes of all venders so a folder was created by the name Financial and all the quotes were attached in it. Moreover along with my project I also scanned and arranged the entire POs for IT department now which lie with sir Shahzad Rafiq. I also made calls to the venders to remind them to send their quotes, though this seems a small task but I learnt a lot from this due to the fact that deadline was after 5days but I had to convince them with a mild tone but authoritative words to send their quotes early. I helped out sir Fakhar as well with organizing his complete cases which included PO, PR and Cheque. Moreover I worked a lot on Sap which included all the procurement processes, like document extraction, document attachment, making a PO, etc. Moreover I also experienced the biding process as sir Junaid took me along for the bid of secure printing solution where I got a chance to fill the documents as well. I also got a chance to make Comparative statement (CS) which cleared out which vender would be selected.
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In my six weeks of interning I learnt a lot about Procurement department itself and its importance for Ufone, The knowledge I have gained was partially from my work but a major chunk comprises of discussions with employees which include: Fakhar Malik Senior Executive Procurement Junaid Jamil Executive Procurement Shazad Rafiq AM IT Procurement Nadir Hayat Manager Procurement I owe the above mentioned people a lot for their serious efforts with me and explaining me all the functions of the ufone procurement department.
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Organizational/Departmental/Branch Analysis
Internal Potency Ufone has network coverage in more than 750 cities, towns and across all major highways of the country; moreover it provides International Roaming facility with more than 150 international operators across 79 countries. Ufone is proud to have an efficient and friendly customer service through 21company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country. They have always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service with a total current investment of $400 Million. Utunes was launched on 4th Dec 2007 which attracted many people towards Ufone. Along with it, it is offering the service of Multi-media Messaging Service (MMS). As mobile users in the country have reached over 78 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 16.5 million and a market share of nearly 25%. It has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 it added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact those two new international players also entered into the market in 2005. While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Also they increased their focus on the youth segment (which comprises 50% of the population), with the Prepay brand. Ufone has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility. It has the post paid service that is normally to attract the Business class people. As a result, most of the business and elite class people use post paid and other services offered. Ufone has a subscriber base of 18.97 million as of October 2008. It was the first cellular Company in Pakistan that introduced the service of GPRS and hence took the competitive advantage. They have offered some exciting and energetic SMS packages that make SMS almost free. They are offering Rs. 25, Rs.50, Rs.100, Rs. 150 SMS packages which its subscribers really love. Moreover, it has some very exciting and low call packages like 5 ka 15, u-one, ucircle, Ufone ghanta, life package and prepay Public Demand etc which attracted lots of customers towards it and also many other cellular company users are also switching to it. Moreover, Ufone post paid is also offering Page | 12
black berry set that is useful and tempting for the Business class. It currently caters for international roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 75 Live Operators across 59 countries.
Internal deficiencies Ufone does not have the proper lists of its customers. It has the list but this list is not authentic which is increasing the unauthorized use of its sim specially pre pay. They have to take serious steps to properly list its customers to ensure that there is no misuse. It has many franchises in the whole country but as its customers are increasing day by day so its present franchises are not enough to fulfill the needs of its customers. It also faces problems and its network get jammed on special occasions like Eid, Christmas, New Year etc. moreover, Ufone has the problem of voice quality. Though its coverage area is vast and it covers more than 750 towns and cities in Pakistan but the voice quality is not as good as it should be. Ufone though has some unique and distinct services but it has not yet given many innovative services as compared to other cellular companies. It was the first to introduce the SMS packages but their packages are not flexible enough and its charges are only on monthly bases while it should be on both monthly and daily basis. Also, Call rates from Ufone to Ufone are very cheap but to other networks its rates are expensive. Its coverage on Southern part of Pakistan is quite good but in northern areas is a bit poor. In Ufone web support is not available. Its customers service staff needs training because at many franchises their employees have been complained about behaving rudely. If they have to progress and grow in market it has to improve its advertising campaign as it is noticed that their advertisements are not good and eye catching. Along with it, being the part of PTCL it has to face many problems like strike by employees etc.
When Ufone came into the scene in Pakistan cellular market, Mobilink was already prevailing in the market and it was all Mobilink monopoly that time. Though with the passage of time Ufone took many customers but still Mobilink has large number of users because it was first to Pakistans cellular market and this is the competitive disadvantage to Ufone. Page | 13
Moreover, it is plagued with some internal problems like when it is privatized to Etisalaat, being the part of the PTCL many employees were not happy with the pay scale that they were offering.
External circumstances Ufone could develop some new and innovative services to attract customers and some of the suggestions will help them to increase their revenues. It should introduce International SMS packages like local SMS. Already Ufone is offering lowest International SMS rates but if they introduce some package like this it will get lots and lots of success. Moreover, They should also introduce some International call packages to Middle Eastern countries because there are lots of Pakistanis who are living in those countries so people will definitely be tempted towards such package. Also, In Ufone ghanta package, time of the package should be extended to two more hours so that more & more people will use this service and as result will help to generate more revenues. They should develop some new franchises in remote areas so that people will get more and more benefit from it and will help to increase their customers. Pakistan Youth is almost 50% of the population so Ufone can take advantage of this demographic situation and should introduce more and more services and packages that attracts youth towards it. Also, they should extend its network coverage area to Northern part of the country as well because in that part not too many companies are offering services and if Ufone offers its service there then it will definitely attract people and number of customers will shoot. It should also introduce some packages for internet users on mobile because if it does so, then many people will switch from other networks towards it. Along with it, If Ufone enhances its voice quality then definitely it would be preferred more by customers.
Also, they should import technological equipments from China because they are giving the best technology at very low rates so it will not only help Ufone to be ahead technologically, but also will help Ufone to decrease its cost. Ufone can surprise its competitors by introducing Ufone kiosk. These will be ATM like machines that will give 24-hour service to Ufone subscribers to load the balance just like they take money from an ATM.
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External threats Ufone is a cellular company and there is cut throat competition in the prevailing industry. There are six other companies also working in Pakistan so Ufone would have to face some growing competitive pressures. Also, Pakistan is facing some serious economic problems nowadays which would directly affect Ufone as the current recession in the market is not good for any kind of business including telecommunication. Along with it, in Balochistan and FATA, where Ufone already has a network coverage, is in danger because of the critical situation and operations being held there. Therefore, Investment of Ufone is in danger. Ufone penetrated in market from 2005 to 2006 quite rapidly but since then it is experiencing a bit slower growth due to market saturation and moreover by the arrival of China Mobile Company (Zong) in cellular industry of Pakistan Ufone and other companies now have to face the severe competition, as Zong has introducing some various attractive packages of both SMS and calls to attract customers so now Ufone has to develop strategies to remain in the market. The key threat to Ufone is adverse Government policies of Taxation on telecommunication industry that will ultimately affect the revenues furthermore being the subsidiary company of PTCL, Ufone will also be affected by Telenor who is giving a higher rumenration to its employees as compared to U fone so many of its skillful and competent employees are going there. Some Pressure groups are protesting on the Towers that are installed in residential areas, their opinion is that it is not good for health to have such towers near their homes that emit radiations. Ufone has to revise the list of subscribers who are legal and authorized Because now the Government has warned to take strict action if any company would not keep such record.
Main Problem As per the identification of problems the first thing I would like to highlight is the staff appraisal issues which do not have a legitimate system, due to which at times deserving are denied of credit. Its always the one who is in front not because of his work but the one who is good in keeping social relations while the one excellent at work goes unnoticed just because he prioritizes work first and somewhat ignores the social relations. This kind of appraisal system hinders further efforts from the employees side as if one knows no matter what he does but still it would go unnoticed in the eyes of senior management one wouldnt try. Page | 15
The second major problem I witnessed, though this was my project as well and at the end this was eliminated was lack of records now a PO (purchase order) is a document which is often needed and a proper record has to be maintained but what I saw was a completely opposite situation, Pos were lying below the desks of every employee not filed nor scanned due to which every day a new problem was born more intense than the previous one. This was actually disappointing since documents have to be in a proper shape and order since they are needed regularly and come in handy during the audits.
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Recommendations
During my internship period I noticed few things which in my opinion if taken into consideration can improve the performance of the department, First thing which I would like to mention here is that negotiation with venders is a procurements task due to which ufone has the department, so it should be left alone, now what happens is that end user when raises a PR, they also give a call to the venders and negotiate the price which means elimination of procurement. This results in a lot of shattered motivation and long talks, since the price quoted by a vender is already final so what would an procurement official do and his performance depends on the savings he make which motivates him to try and save the most out of the allocated budget. Moreover it also irritates the venders when different people call for a same purpose and an important issue is that price is always kept secret as per the international standards also because no vender would want his price leaked to his competitors because in this case price is the only tool which can give you a competitive advantage and if leaked this can mean lost business, but in ufone price is not only kept with the procurement department but end user also has the complete information. Now below mentioned are some advantages if this recommendation is implemented: Best Price (as a procurement executive one would posses more negotiation skills and experience) Vender trust (as he would know that his quotes do not travel in the whole office but is kept with only the procurement executive he talks to) Convenient (as venders would not be bothered again and again and negotiations can be held in a pleasant atmosphere) No Kickbacks (since only a single employee would be responsible this would reduce the risk of frauds and personal interest and even if something happens, it would be easy to trace what went wrong) Motivation (as mentioned above as well that performance of the procurement staff depends on the savings which results in motivation) Page | 17
Department performance ( as what employees do individually reflects on the whole department so if individual performance increases it would boost up the department performance) Further more in my opinion ufone should also consider the competitors policies and the way how they operate before making a policy for themselves because loop holes can be there and by referring to the competitors which can be traced and solved. There are some things which company does not want to disclose like what if a vender goes to mobilink and tells them that he also has business with ufone and currently at this price, now this is something ufone would want to keep with themselves, and by looking how competitors tackle this issue can generate a more effective solution. In my opinion negotiation is an art, though majority employees are good at it but still I think that further polishing would be beneficial, employees should be sent on workshops about negotiation and presentation skills which would update them and increase their confidence level which will have a positive impact on the department. Moreover though this problem lies with all the companies but I would like to quote it, in my six weeks I have noticed that at ufone one has to bring himself in the lime light, if one does not stand and yell about his achievements he goes unnoticed which is partially wrong because I agree that a manager cant have an eye on everyones day to day operations and though it is the responsibility of an employee to aware his superiors about his achievements but still he shouldnt be unnoticed, if an employee does not stand and yell but achieves a lot he shouldnt go unnoticed though convinced to present. The last thing I would like to recommend is that currently end user does not have any knowledge about IT which in my opinion is wrong; since they raise the PR they should have the basic knowledge of what they are ordering. They can be sent to workshops or trainings so they at least have a clue of what are they ordering and are aware of pros, cons and alternatives.
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Learning objectives What was accomplished through this affiliation? The following were the accomplishments of this internship: Ability to communicate the unique marketing mixes and selling propositions for specific product offerings. Ability to construct written sales plans and a professional interactive oral sales presentation. Ability to analyze marketing problems and provide solutions based on a critical examination of marketing information. Ability to apply knowledge and skills to real-world experiences in an internship. Note: Specific outcomes will vary by assigned internship experience.
Ability to use business tools. Ability to communicate effectively. Ability to apply knowledge of business concepts and functions in an integrated manner. Ability to work effectively in teams and/or groups. Ability to manage people, processes, and resources within a diverse organization. Ability to apply knowledge of key leadership concepts in an integrated manner.
Facets of my responsibilities After 4 weeks of my internship I got hold on many things and thats where 2 new interns came in, sir Nadir called me in his office and said Umaid now I want you to be an intelligent guy and manage the new interns, you have worked a lot now its your time to relax and pass on the orders and get work done from them though at first it felt good moving on the reputation ladder but soon I was clear that doing work is easy but actually extracting it is much more difficult, that day I understood why a company pays more to an employee who is sitting on a chair whole day passing orders. Page | 19
The other one I would like to mention at this point is when I was required to give calls to venders for their bids, that was an experience of a lifetime, even though the due date was after five days but since I had to convince them to send in their bids early so the project can be started early because it was an important one and we were short on time. It was really hard to persuade the venders since it would put them in trouble taking all the hassle and submitting the bid early now of course I couldnt harshly command them so all what I was required of was to talk in an authoritative tone yet being respectful and persuasive. Implementation of course knowledge There were many events in which the courses I had studied came handy, though when I was studying them, they didnt sound important but later on I realized the importance. To start the course of oral communication and English two really helped me oral communication helped me enhance my communication skills which are extremely important in corporate world as if you cant effectively tell what you have done till then you dont get points where as in eglish we were thought how to compose formal letters and emails along with the does and donts which really helped since on an average ten to fifteen mails have to sent on regular basis so one cant just sit there and take twenty minutes to compose a mail, it has to be done quickly so one should be good at writing skills which I picked up from English course. Moreover I studied conflict management in which there was a chapter on negotiation and since procurement is all about negotiations so it helped me a lot.
How was this internship destined to impact your career? This internship really helped me understand the corporate world and especially procurement procedures, highlight being tendering and invoicing. Presently companies want a trained employee which they can polish further but they tend to avoid the training sessions so if in future I ever get a chance to work in a procurement department I wont need much training which would give me a superior position and a competitive advantage over the other candidates. Page | 20
Any other comments you would deem appropriate and relevant.
At last I would like to thank Bahria for making internship compulsory in order to attain a degree since I believe that if it wasnt imposed I would never have wanted to enter into practical life which seems harsh and tough. Whereas now I regret the previous summer holidays and wish that time could swing back and I could intern. This internship have impacted me in many ways but most important being a glimpse of practical life and now seeing that glimpse I wish I could be in the whole picture soon, I just cant wait to step in my practical life.
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Annexure
The following is the document list attached: Bahria Intern evaluation form Ufone Intern evaluation form Transcript Internship Letter
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Hierarchy at Procurement Department CEO
Deputy CEO
VP Procurement
HOD
Manager procurement
Assistant Manager (AM)
Senior Executive
Executive
Interns Page | 23
The Process
The process starts where procurement department receives an approved Purchase Requisition (PR) from the end user (a term used for the person or group who raises the PR), PR refers to the items which are required by some other department, like if X needs a pencil so he would raise a PR, get it approved and send it to procurement and since he raised the PR he would be the end user in this case. When the PR is received procurement checks the budget of the project, if it is below 5Million RFQ is floated and if above it RFP is floated. RFQ stands for request for quotation which is only floated to the registered venders and is not advertised publically and venders are required to send their bids in response whereas RFP stands for request for proposal in which tender is floated publically and any interested vendor can submit their bid along with all the respective documents. This RFP or RFQ goes for approval in which time is also specified. After approval Venders are informed that they need to send their quotes. At least 3 quotes are needed so a good comparison can be made but it depends at times more than 3 and at times even less can work. After quotes are received a comparison sheet is made (CS) and then it is analyzed. Lowest quote becomes a bench mark and negotiation starts and after negotiation with all venders which can extend to many quotes the lowest is selected (of course other factors are also considered and at times second or third lowest quotes are considered but price though is one major issue). After the selection a Purchase Order (PO) is created which is sent for acknowledgement to the venders. When Acknowledged PO arrives this means now vender exactly knows what is required with respective details and quantities. After this step the end user team leads and is responsible. Page | 24
Procurement department then again comes to life when a project is completed and the invoicing portion has to be started. Invoice is verified by the end user and as a next step approval from the VP is required. After approval Goods Received Note (GR) is made and the invoice is submitted in the finance department. Finance department then gives the cheque to the procurement department, after which venders are called by the procurement department and cheques are handed over and the case is closed.
Operations Management in Automotive Industries: From Industrial Strategies to Production Resources Management, Through the Industrialization Process and Supply Chain to Pursue Value Creation