History/ Introduction: Manufacturing industries is basically a place where primary goods are converted into finished good with the help of machines. Kaleem engineering is a private owned company and it was established in 2012. The owner of this factory is Mr. Khalid Kaleem and Asim kaleem. When they start their business, at that time they only manufactured satellite dishes, and steel fabrication of different parts. Their total start up cash was 5 lacs and at that time there were only 2 welding machines, power press and hydraulic press. Spindle machine. At that time, there were only 3 labors for work but now it turns to7 labors and the company prefers labor work rather than automatic machine work. They are offering finest quality products at the most advantageous prices. Mission statement:

Provide best quality product in very advantageous price

Types of products they are off1. Satellite Dishes2. Container3. Paint booths4. Steel fabrication parts5. CNG cylinders fixing stands for automobile 6. Over head craneThey take extra care of the quality of the product and encourage quality standards of the product.Revenues:Startup cash: 05 lacLabor cost: 50000 thousand (07 labors)Machines cost (starting) : 400000 lacMaterial cost: 5 lacExpenditures: lacIndirect cost (nuts, powder, screen printing): 30000 Marketing cost (travelling, cards, telephone charges): 15000 PROCEDURE OF MANUFACTURING PRODUCTS:

Procedure for satellite dishes:

Raw material:Purchase raw material i.e. steel sheets from importer like Zia steel GUJRANWALA and Zeshan Malik steel etc .The steel sheets are in the form of spool (roll).The sheets they purchased have weight about 7-8 ton so that the production for the satellite dishes cannot stop .Production unit:Then they put sheets in the hand cutting. The size of the sheets are according to the demand of the customers after cutting the sheets then sent to the spindle department where the sheets are put in the spindle machine. In this stage the sheets will cut in a round shape .After this stage the round shape sheets then send for the holes .The holes were created through power press machine then it will transfer in the paint department .In the paint department the labor paint the dishes through powder coating .After that the satellite dishes were transferred into the screen printing department. In the screen printing department, logo of the company was printed on the satellite dishes.Accessories:LNB (low noise block) supporting sticks are made after making these sticks, the stands are made for the satellite dishes.Packaging department:After making the satellite dishes, it will send to the packaging department where the accessories where packed according to the user requirement.Finish goods:After packaging, it will transfer into the finish good department and ready for sale.Procedure for making cylinder stands:

Raw material:They purchase raw material from importers.Cutting:The purchase raw material sends to the cutting department.Bending:After cutting the sheets put into the bending machines, where the sheets bend according to the shape of the cylinder.Rolling:After bending the sheets were put into the rolling section.Welding: After rolling the cylinders sent to the welding department.Finished goods:After welding the cylinders and the stands were transfer into the ware house (store room).How to calculate cost?They use traditional method to calculate cost. First when they purchase steel from importers they purchase steel in a bulk.unit was calculated according to the weight of the steel. After that they estimated the cost of the accessories that can be used for making the product. In this way they calculate their cost.Example:Like they purchase sheet weight of 1kg and the price for that steel sheet was Rs. 98(it is a variable cost). After that they calculate the indirect cost, labor cost and other cost for making the product. Like including all cost the actual price for a 2 feet dish was 150.Profit margin: In first year the startup profit was 3-4 lac annualy. Now it is increased up to 4-5 lac per month. Profit margin against one dish is:2 feet Satellite dish selling price is: Rs.350 2 feet Satellite dish actual price is: Rs.280Profit margin is: Rs. 704 feet Satellite dish selling price is: Rs. 650 4 feet Satellite dish actual price is: Rs.550 Profit margin is: Rs.1005 feet Satellite dish selling price is: Rs. 1300 5 feet Satellite dish actual price is: Rs.1100 Profit margin is: Rs2006 feet Satellite dish selling price is: Rs.2200 6 feet Satellite dish actual price is: Rs.1950Profit margin is: Rs.250

Machines they are using for manufacturing are:1. Welding machine2. Power press3. Bending machine4. Hydraulic press5. Spindle machine6. Plastic powder coating plant7. Screen Printing machineTheir functions are as below:

Packaging and demand of a product:Products are made and sell to the customers according to their demand. Their requirements and needs/wants must be preferred by the company. As they are manufacturing their products in bulk so they do packaging of a product according to customer desires. As some customers want separate packing for example if a customer is going to buy cylinder stand and he also want some spare parts of it then he can ask for separate packing of each part.Their maximum production for single day is 200 and they are manufacturing 150 products per day which shows their efficiency in work. Order of a product method:50% cash in advance25% in middle when half of the product is completed25% in last or final paymentThe payment process is carried out when the order is confirmed by the customer.Labor record:They have a separate register for labor. They record the labor expenses on the daily basis. They record salaries on the monthly basis.Records: Daily book: the records and sales of per day will be recorded Head/cash book: bank accounts payments and the money transferred in accounts recorded in this book i.e. accounts receivables and accounts payable Stock register: how much stock is available, sell and purchase must be a part of this book.