PROJECT ON SHARP ELECTRIC INDUSTRY

SESSION 2014-2017GROUP MEMBERS:.GIFI3MBAM00__..GIFI3MBAM00__.GIFI3MBAM00__GIFI3MBAM00__..GIFI3MBAM00__..GIFI3MBAM00__

SECTION: ____ (__)MASTERS OF BUSINESS ADMINISTRATIONPUNJAB COLLEGE OF COMMERCEGUJRANWALA.UNIVERSITY OF CENTRAL PUNJABLAHORE, 2002.

PROJECT ON SHARP ELECTRIC INDUSTRYSubmitted to Punjab College of Commerce, GujranwalaIn partial fulfillment of the requirement for second semester.___________of business administration (____)

SubmittedToProf. WASEEM ANJUM

PUNJAB COLLEGE OF COMMERCEGUJRANWALA. UNIVERSITY OF CENTRAL PUNJAB LAHORE, 2002.

DECLARATION

We, the members of Mustafvi group students of Punjab College of commerce Gujranwala session 2014-2017, hereby declared that the material printed in the project titled project on sharp industry is our own work based on the data collected from the company. It is self made and not copied from any web site or any helping material.

Signature of all group members:..

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Dedication

We dedicate our project to our parents and our beloved teachers due to encouragement in hard moments of our lives.

Acknowledgment

We payourhumblegratitude,withhumilityandsubmission,toALLAH,theAlmighty, the Omniscient,the Omnipotent andtheOmnipresent,whobestowedourpotentialto accomplish this task. The completion of this issue is, mere, theblessing of ALLAH and Holy Prophet Hazrat Muhammad (SAW).We feel honor to express our sincere gratitude to our teacher forthisSupervision,guidanceandencouragement throughout the project. We always found him very much alive, full ofzeal, vitality and intellectual curiosity.

Table of ContentsTitlePage no:

Declaration 4

Dedication5

Acknowledgement6

Table Of Contents7

Chapter # 1: Introduction, History and Management of companyTitle

1.1 Introduction of company

1.2 History of company

1.3 Range of products

1.4 Selected product

1.5 Mission statement

1.6 Vision statement

1.7 Challenges and Issues

1.8 Organization Structure

1.9 Organization hierarchy

1.10 Marketing

1.11 Cost classification

9991112121314151516Page no:

Chapter # 2: Financial StatementsTitle

212223242.1 Cost of goods manufactured statement

2.2 Calculation of actual manufacturing overhead

2.3 Cost of goods sold statement

2.4 Income statement

Page no:

Chapter # 3: Detailed Study of IT Department3.1 Background and analysis of the problem 3.2 Proposed solution to the Problem

3.3 General Recommendations

3.4 Conclusion

25

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29

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Reference27

Company Introduction:It is a partnership business started under partnership act 1932; it is a manufacturing firm producing plastic products, such as plastic furniture, home appliances (kitchen appliances) and spare parts of electronic appliances. It is a family business managed by 4 brothers, named as Saeed Anwar (Director) Muhammad Idrees(Director) Muhammad Shakeel Anwar(Director) Muhammad Saleem(Director)History of the firm:Firstly sharp industry produced the electronic appliances like parts of washing machine, and water pumps. In early 1990s they started the production of plastic furniture such as chairs, tables. They started to produce kneaded dough machine in 2000 and now it is a very successful product in the market and is also exported to several countries. Partners:All partners are brothers Saeed Anwar Muhammad Idrees Muhammad Shakeel Anwar Muhammad SaleemRange of product: Spare parts of electronic appliances Plastic furniture Kneaded dough machine

Selected product:The product which is selected in this report is kneaded dough machine, specified name given to the machine is spectra quick kneaded dough machine, it has 3 models: QK- 1500 QK- 2000 QK- 2500

Mission statement:We make your home completeVision statement:To provide the best quality product and values to the customer. Core value: Continuous improvement The core value of the organization which is considered the spirit of sharp has not changed over the past 3 decades. Those values which have made the sharp a rising and growing group in the market from the past 3 decades. Use of latest technology Use of best skilled labors Innovation Team work Best quality for home appliancesDecision making:The decision is on one man show procedure, the decision making authority is with the directors only no other person is allowed to make decisions. Strategic structure:

All sharp strategies are made by keeping in mind the mission statement of the organization, which clearly reflects the companys objectives and goals. After deciding their task/objectives, they start analyzing the outside environment to analyze weather their strategies are applicable or not. If it is applicable then they start evaluating about opportunities and threats that they could face. After analyzing internal factors, management starts working on allocating, analyzing organization resources. When they allocate resources, they start finding specific areas where they look and point out their strengths. Then they summarized all the internal and external data and decide how to execute their strategies. After having all the planning and collection of required data they start the execution of their plans and every single employee try its best to make it successful. And at the end the management starts evaluating the results either they are satisfactory or not.

Challenges and issues: The main challenges and issues which are faced by the company are, there are other competitors in the market and is tough competition among them. Quality is also the main and important issue, in this product if quality will not be perfect the product will not be raised. The usage of spare parts should be good as compared to the other competitors. New model: launching of new product is also an important task to compete in the market. Latest technology issues. Pricing strategy Increases in pay of labor problems, such as ordered by government. Creating strong relation with customers. Organizational structure:

Organizational structure:

Board of directors

Muhammad Saleem(Director)Muhammad Shakeel Anwar (Director)

Muhammad Idrees(Director)Saeed Anwar (Director)

Head of departmentHead of departmentHead of department

Manager Manager ManagerManager

Managerial hierarchy:Marketing:

Selected Product:Kneaded dough machine. Characteristics The ideal machine for kneading all types of dough (pizza, pastry) Kneads dough quickly without heating and spoiling its characteristics. The ideal machine for mixing the spices and other types of things. Preparation of fine flour for making cakes. Preparation of kebabs and spices and what else you like to mix. The machine provides the same 100% quality as kneading with hands.

SpecificationModel name: quick kneader Model no: QK- 1500 Rated voltage: 230VRate in put: 265 WRated frequency: 50 HzCapacity: 2.2KgNet weight: 11KgGross weight:12KgMachine dimensions:L 37cm. W 22.5cm. H 34 cm

Features: Easy operation See through cover Food grade plastic material Easy to clean Saving time Automatic timer switch Plastic body rust proof safe and reliable Small size, light weight Heavy duty electric motor Fine quality belt No noise, free of vibrationPromotionPromotion is the most important part of the business to promote it. Without promotion it is not possible to sale the product, advertising is the best way to run the business. Some conditions are written as follows. They do promotion of their product s in different ways Pamphlets Broachers Cable Social Media(face book) News papers

COST CLASSIFICATION:

Direct Material :In-direct Material:

Stainless SteelSilverCopperPlasticIndirect labor salariesSkilled labor SalariesDirect labor wagesDirect labor: Indirect Labor:Skilled persons salariesWages of labor

Manufacturing Cost: Non-Manufacturing Cost:

Admin SalariesIndirect labor salariesPacking chargesWasa charges Selling expenses

PlasticStainless SteelCooperSilverLabor wagesSkilled person salariesElectricity chargesGas charges

DetailsRs.

Selling price5,000

Cost :Direct material (65% of Total Cost )2925Direct labor 905Manufacturing overhead (= 334,890/ 500) 670

Cost per unit4500

Gross profit per unit 500

Unit Product Cost & Gross profit:

Sharp Electric IndustryCost of Goods Manufactured StatementFor the Month Ended..........DetailsAmount Rs.Amount Rs.

Opening raw materialAdd: purchases of raw material = raw material available for use Closing of raw material Direct material used Add: direct labor cost= prime costAdd: manufacturing overhead (actual) = Total manufacturing costAdd: Opening work in process= cost of good to be manufactured Less: closing work in process = cost of goods manufactured 1,00,00014,00,00015,00,00037,500

14,62,5004,52,50019,15,0003,35,00022,50,000------------22,50,000----------22,50,000

Costing System: The company,s use job order costing system because it receive advance orders and then manage his work accordingly. Company,s policy is to apply factory overhead on actual basis.

Calculation of Actual Manufacturing Overhead per Month:DetailsAmount Rs.

Electricity charges (600001/3) (3 Departments)Gas charges (300001/3) (3 Departments)Maintenance chargesWasa (water charges)Miscellaneous chargesIndirect labor cost (440001/3) (3 Departments)Packing chargesDepreciation on machinery (60,00,00010%1/12)Depreciation of factory (80,00,0001/12) (/3 Departments )Indirect material cost20,00010,000 5,000 1,0002110 14,667 25,00050,00022,222185,000

Total manufacturing overhead cost335,000

Calculation of Actual Overhead Rate:

Per unit Manufacturing Overhead = 335,000/ 500 = Rs. 670 /unit

Sharp IndustryCost Of Goods Sold StatementFor the Month Ended.

DetailsAmount Rs.

Opening finish goods inventoryAdd: Cost of goods manufactured=Cost of goods available for salesLess: Ending finish goods inventory1,35,50022,50,00023,85,000 1,35,500

Cost of goods sold22,50,000

Selling Price : 5,000 /unit

Sharp Electric IndustryIncome StatementFor the Month Ended.DetailsAmount Rs.

Sales (5,000500)Less: cost of goods sold= gross profitLess: operating expenses Selling expenses 22500 Administrative expense 100000 =Net Profit 25,00,000(22,50,000)

2,50,000

1,22,5001,28,000

Background and analysis of the problemNo Computerized data of Accounting: The main problem of the Sharp Industry is using the manual way form recording its accounting transactions. Sharp Industry does not use the computerized accounting system. Due to this lack, they have not the proper record of the accounting transactions.When we visit their industry, and ask them for accounting records, they face very serious kind of problem to sort out the accounting data of one department out of their three departments. If they were using specific software for the recording of accounting data, they didnt face that kind of problem.Not using Computer Networking: There is also lack of the computer networking in the firm. Sharp Industry did not use computer networking. Due to this firm face the problem of sharing of data among different departments. They did it manually.

Proposed Solution to the ProblemUsing Peach-Tree Accounting Software: The best solution for this problem of saving accounting data is to use accounting specified software. The best software for Sharp Industry is Peach-Tree accounting software 2014: Sage 50.Here are some new features of Peach-Tree accounting software 2014: Sage 50.Many people still get confused when anyone mentions Sage 50 to them. They usually ask for Peachtree as an alternative accounting software. The news is that Peachtree Accounting Software is now Sage 50. It is the same Peachtree Accounting Software we used to know but with some new and enhanced features such as:Company Configuration:A new optional process to help guide you through the setup of you software has been designed.Help Centre:New search engine providing up-to-date help topics and information has been added.

Simplified Monthly and Year End:The process has been improved and made easier to understand. The screens have been redesignedand will provide help where needed. A big request was to be informed when a task was completed so this has been introduced.Quick Tasks:Three new elements have been introduced. Invoices, quotes, sales and purchase orders can be created more quickly from the product list. There is increased automation for common processing tasks - for example sales/purchase orders and invoicing. You can process a 'cash sale' whilst updating stock levels from within the invoicing module.

User Interface and Language:Over 1,000 function/ feature labels have been updated and improved to ensure users know what they're doing without the need to know accounting terminology or abbreviations.Reporting Improvements: A new user interface with an updated look and feel has been created. Excel improvements now allow you to get financial information without spending hours manipulating the data. There are now accurate report descriptions, previews filters and action buttons. You can now send invoices by email without having to go into the Report Designer. A customized reporting function allows you to create more professional looking reports.Some common features: Its an easy to use software:Peachtree software is not very complicated software to use; its very easy to use and user friendly. Peachtree is a great system for people who are starting small businesses because it is easy to use, affordable, and has all of the functionality that you will need. Cost Effective:Another advantage of using Peachtree is that it is a cost effective solution. Depending on the version that we purchase according to their website, we can expect to spend anywhere from a few hundred dollars to a few thousand dollars, which is very reasonable for the amount of functionality and reliability that you are getting. Reporting Capabilities:Peachtree comes loaded with a large amount of reports that are all customizable in some way. They all can either be printed to PDF or dropped directly into Microsoft Excel. Functionality:Peachtree is a fully functional accounting system. It allows issuing invoices to customers, receiving payments, entering payables to vendors, print checks, paying to employees, tracking expenses, entering journal entries, and much more. It is packed with all kinds of different preloaded reports. Peachtree also will perform an internal accounting review that will identify common transaction mistakes.(Sage 50 Review 2014 - Top TenREVIEWS)

Computer Networking: Computer network can be defined as A set of computers that are connected and able to exchange data. In a typical office environment, a local area network (LAN) is usually set up to allow data exchange and resource sharing (such as files, printers, fax modem, scanner, and Internet broadband access) between computers.Benefits of Computer Networking to Sharp Industries: There are numerous benefits a computer network can bring to a business. File Sharing: Computer files can be stored centrally, therefore multiple staff can work on one single copy and responsibility can be delegated (faxing, mailing, printing, etc.). Store computer files on one place will also make data backup easier, more reliable and cost efficient. Internet Sharing: If company have a broadband Internet connection, setting up a LAN will allow the entire office to access the Internet concurrently. Everyone can exchange message, do research, monitor business development, and fully realize the benefit of Internet at any time. Resource Sharing: Printers, fax modems and scanners (depends on model and other factors) can be shared across the network. For example, a high speed high quality printer can be shared by the entire office, allowing to reduce cost while increase quality of output (printout, fax result, etc.). Data Sharing: Certain applications such as accounting, scheduling, contact management, as well asbilling software, allows setup a central data repository for multiple computer access. Once the repository is setup, multiple computers can view and modify the same set of data. Data sharing increase work efficiency, allow faster decision making, and let company have a better view of the status of the business. Security: When setup properly with role-based security, office users will be able to access only resources relevant to his/her job functions. In addition, users can log in at any workstation and continue his/her work, minimizing downtime and loss of productivity due to a failed workstation. Cut costs with software: there are many software products aimed at networks that offer more savings for the business than buying individual licenses for each computer. Because the machines are connected to each other in the network, upgrading can be done directly to the server, saving time from upgrading computer by computer. Communication: The employees dont even need to be connected to the Internet; because they are in an intranet, they can communicate to each other via electronic mail using the network system.

General RecommendationThere are some recommendations which are for as following: Chargeable machine: There is electricity issue in Pakistan and people suffer a lot from it, such kind of machine will offer them to do work when electricity is not available. The demand of sharp electric products is high then supply so they should do increase in capital assets by which the productivity will increase. If they are not having capital they can offer loans from bank. They should advertise their machine in the way to differentiate between advantage of machine and disadvantages of kneaded dough with hands. Make the quality of the product better, and durable. Human resource management department is to be made, which will enhance the safety of the workers while working on the machines, due to which working efficiency of workers increases. Make branches in other cities to increase the business. Make a display hall to display their products. Increase in exports, by increase increasing the production. Import latest machinery for production, and reduce labor cost from foreign countries. Attractive packing to capture the concentration of competitor, and market customers. Increase the capacity of the machine (quick kneader) productivity, because the capacity of the machines is very less as 4 kilo but in hotels, restaurants and bakeries have to kneaded dough a large amount of flour. Conclusion Company was started in 1982, and produces only parts of washing machine. Continually made the goodwill in the market with better quality of their products, then expand their business and started to make complete washing machine, after that plastic furniture then in 2000 started to make quick kneader machine. From 1982 till now they are making improvement in their business. Now they are having a good will in the market that their product has a high demand in the market. This machine is a good product which is selected by them by the owners, because it saves time, works fast, noiseless, light weight.

Reference: Faisal ( Manager of Spectra Department). Mhammad Riaz (sales manager)

Thank You~The End~30 | Page