Internship Report on PAK ELEKTRON LIMITED (PEL

PAK ELEKTRON LIMITED
(PEL)
SUBMITTED BY:
HAFIZ DABEER
INTERNSHIP REPORT

Internship Report on PAK ELEKTRON LIMITED (PEL)
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INTERNSHIP REPORT ON PAK ELEKTRON LIMITED (PEL)
SUBMITTED TO:
INCHARGE IBA
MRS. SAJIDA NISAR
SUBMITTED BY: HAFIZ DABEER
ROLL NO: 005
SESSION: 2013-17 (AFTERNOON)
INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF THE PUNJAB LAHORE

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Acknowledgement
A million thanks to Allah Almighty, without whose support there can be no
work.
I am very thankful to Pak Elektron Limited for their financial and logistical
support and for providing necessary guidance.
Nevertheless, I express our gratitude towards our honorable supervisor of
Accounts Department, Ms.Khazina Dar without their counseling and
parallel skills I would have never been able to prepare this report.
I would like to express my sincere thanks towards all the officials of this
organization for helping me in achieving our internship targets while being
internee at PEL.

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TABLE OF CONTENTS
1 INTRODUCTION......................................................................8
1.1 International Presence...........................................................9
1.2 Geographical Presence .........................................................9
1.2.1 PEL Dealer/Service Centre Network: ............................9
2 COMPANY PROFILE.............................................................12
2.1 Historical overview: ...........................................................12
3 PEL COMPANY STRUCTURE..............................................15
3.1 Department Structure..........................................................16
3.2 Organizational Chart of the Governing body.....................17
3.3 MANAGEMENT STRUCTURE.......................................19
4 OBJECTIVES...........................................................................14
5 PRODUCT DIVISION.............................................................24
5.1 Appliances Division ...........Error! Bookmark not defined.
5.1.1 Refrigerator: .................................................................59
5.1.2 Air Conditioner:............................................................61
5.1.3 Deep Freezer:................................................................64
5.1.4 Microwave Oven:.........................................................65
5.2 Power Division ...................Error! Bookmark not defined.
5.2.1 Power Transformers: ....................................................70
5.2.2 EPC Contracting:..........................................................72
5.2.3 Energy Meter:...............................................................74
5.2.4 SWITCH GEARS:........................................................75
5.2.5 Distribution Transformers:...........................................75
6 BUSINESS MODEL................................................................87
7 PEL DEPARTMENTS.............................................................89

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7.1 Production Department:......................................................90
7.2 Human Resource Department: ...........................................90
7.3 Marketing Department:.......................................................90
7.4 Sales Department:...............................................................90
7.5 Customer Service Center Department:...............................91
7.6 Consumer Marketing Department:.....................................91
7.7 Trading Department:...........................................................91
7.8 Distribution Department:....................................................91
7.9 Accounts Department:........................................................92
7.10 Audit Department: .............................................................92
7.11 Finance Department:..........................................................92
7.12 Research & Development Department:.............................92
8 “WORKFLOW IN ACCOUNTS DEPARTMENT”...............94
8.1 Roles & Responsibilities: ...................................................94
8.1.1 Accounts Receivable:...................................................96
8.1.2 Accounts Payable: ........................................................96
8.1.3 Payroll:..........................................................................96
8.1.4 Reporting Financial Statements: ..................................96
8.1.5 Financial Controls: .......................................................96
8.2 Sections in Accounts Department are as follows:..............98
8.2.1 ECM (EMPLOYEE COST MANAGEMENT)...........99
8.2.2 REPORTING..............................................................101
8.2.3 ACCOUNTS PAYABLE:..........................................105
8.2.4 INVENTORY MANAGEMENT:..............................108
8.2.5 LETTER OF CREDIT................................................115
8.2.6 JOB COSTING:..........................................................123
8.2.7 TAX SECTION:.........................................................136

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9 CORE VALUES.....................................................................154
10 MARKET STRATEGY .........................................................155
11 SWOT ANALYSIS................................................................156
11.1 Strengths: .........................................................................156
11.2 Weaknesses:.....................................................................158
11.3 Opportunities: ..................................................................158
11.4 Threats: ............................................................................158
12 ROLE OF COMPANY IN INDUSTRY................................210
12.1 Active Companies:...........................................................210
13 FUTURE OUTLOOK ............................................................211
14 CONCLUSION ......................................................................236
15 REFERENCE .........................................................................240
Table of Figures:
Tables:
Table 1 Historical Overview ............................................................12
Table 2 Organizational Chart of the Governing body......................17
Table 3 Division .............................................................................125
Table 4 Power Division..................................................................126
Table 5 Appliances Division ..........................................................126
Table 6 Nature of Job .....................................................................127
Table 7. Tax Rates for Salary Income: Section 12................141
Table 8 Tax Rate for Business Individual & AOP Section 18 ...
...............142
Table 9 Rates of Tax for Companies Section 18.....................143
Table 10 Rates of Tax on Dividend Section 5 & 150 ............143
Table 11 Profit on Debt Section 7B........................................144
Table 12 Capital Gains Section 37.........................................144
Table 13 Capital Gains on Disposal of Securities Section 37A.
....144

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Table 14 Minimum Tax Section 113.....................................145
Table 15 Payment of Goods, Services & Contracts Section 153
.............147
Table 16 Profit on Debt Section 151 .......................................147
Table 17 Payment to Non- Resident Section 152...................148
Table 18 Income from Property Section 155...........................148
Table 19 Prizes & Winnings Section 156 ................................148
Table 20 Petroleum Products Section 156A ..........................149
Table 21 Cash Withdrawal from A Bank Section 231 A .......149
Table 22 Advance tax at the time of sale by auction Section
236A .............149
Table 23 Advance Tax on Sale or Transfer of Immovable Property
Section 236C...................................................................................149
Table 24Advance Tax on Functions & Gatherings Section
236D ..............149
Table 25Advance Tax on Sales to Distributors, Dealers &
WholesalersSection 236G .150
Table 26 Advance Tax on Purchase or transfer of Immovable
PropertySection 236K
150
Table 27Advance Tax on International Air Ticket Section 236L
150
Table 28Advance tax on banking transaction otherwise through cash
Section236P....................................................................................150
Table 29Payment to a resident person for right to use machinery and
equipment Section 236Q ................................................................151
Table 30Collection of advance tax on education related expenses
remitted abroadSection 236R .........................................................151
Table 31Exports Section 154...................................................151
Table 32Imports (Part II of 1st Schedule) Section 148 ..........151
Figures:
Figure 1 Department Structure.........................................................16

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Figure 2 Managment Structure.........................................................19
Figure 3 Objectives...........................................................................14
Figure 4 Business Model..................................................................87
Figure 5 Parties of Letter Of Credit................................................117
Figure 6 Process of Letter Of Credit ..............................................122
Figure 7 Market Strategy................................................................155

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PART ONE
1 INTRODUCTION
PEL is the pioneer manufacturer of electrical goods in Pakistan. It was
incorporated in Pakistan on March 03, 1956 as a public limited company. In 1956, the
Company was setup by Malik Brothers in technical collaboration with M/S AEG of
Germany to manufacture transformers, Switchgears and electric motors. AEG exited
from the venture and sold their share of PEL to the Malik Brothers in the late 1960’s
which was subsequently acquired by the Saigol Group of Companies (‘’Group’’ or
‘’Saigol Group’’) in 1978.
Since its inception, the Company has always been contributing towards the
advancement and development of the engineering sector in Pakistan by introducing a
range of quality electrical equipment and home appliances (Pak Elektron Limited,
2015).
Until the acquisition by the Saigol Group, PEL was solely catering the power
equipment market. The Company ventured into home appliances market in 1981 after
acquisition as a part of the Group’s long term strategy of diversification. It is currently
listed on all Stock Exchanges of Pakistan.
The principal activity of PEL is manufacturing and sale of electrical capital
goods and domestic appliances.
1.1 SAIGOL GROUP OF COMPANIES
1.1.1 Textile
• Azam Textile Mills Ltd. 06-Egerton Road, Lahore
• Saritow Spinning Mills Ltd. 06-Egerton Road, Lahore
1.1.2 Fuel & Energy
• Kohinoor Power Co. Ltd. Kohinoor Nagar, Faisalabad
• Kohinoor Energy Ltd. 06-Egerton Road, Lahore
1.1.3 Engineering
• Pak Elektron Ltd. (PEL1) 14km, Ferozepur Road, Lahore
• Pak Elektron Ltd. (PEL2) 21 km, Ferozepur road Qasoor

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1.1.4 Banking & Finance
• Union Bank Ltd. 06-Egerton Road, Lahore
• Union Leasing Ltd. 07-Egerton Road, Lahore
1.1.5 Trading
• Saritow Pakistan Ltd. 06-Egerton Road, Lahore
• Saigol Computer Ltd. 162-Shadman Colony, Lahore
1.1.6 Automobiles
• Kohinoor Motor Works Ltd. 07-Egerton Road, Lahore
1.2 International Presence
PEL exports to customers in following countries and has continued focus on
expanding presence in international market.
Qatar, Saudi Arabia, Afghanistan, Tanzania, Zimbabwe, Kazakhstan, Yemen,
Bangladesh, Greece, Nepal, Swaziland, Kenya.
1.3 Geographical Presence
1.3.1 PEL Dealer/Service Centre Network:
Our nationwide Dealer and Service Centre including Authorized Service
Centre’s (ACSs).
Network provides us access to a wide range of customers and enables us to
provide quality after sales services.

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“To excel in providing
engineering goods and services
through continuous
improvement’’

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1. To provide quality products and
services to the complete satisfaction
of our customers and maximize
returns for all stakeholders through
optimal use of resources.
2. To focus on personal development of
our human resource to meet future
challenges.
3. To promote good governance,
corporate values and a safe working
environment with a strong sense of
social responsibility.
Mission

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2 COMPANY PROFILE
2.1 Historical overview:
Table 1 Historical Overview
Year Activity
1956 Incorporation of Pak Elektron Limited
1958 Start of Commercial Production Distribution Transformers and Switch
Gears in Technical Collaboration with AEG Germany
1981 Manufacturing of Air Conditioners with assistance of Fujitsu Japan
1987 Manufacturing of Refrigerators & Deep Freezers in Technical
Collaboration with IAR-SILTAL & ARISTON of Italy.
1988 Listing with all of Stock Exchanges.
Acquired License to manufacture VCBs from Hitachi, Japan.
1992 Started Production of Energy Meters under the License from ABB USA
1994 Quality Management System Certification for Energy Meter ISO 9001 by
SGS
1997 Acquired Technology from Carrier, USA to manufacture Air Conditioners
2000 Launching of new Crystal Series Refrigerator under Technical
Collaboration of Danfoss, Germany
2004 Acquired Technology from GANZ, Hungry to Produce Power
Transformers.
2006 Formal start of EPC Business Segment of the Company
2009 4th CSR National Excellence Award.
6th Annual Environmental Excellence Award Export of Power
Transformer
2010 Inauguration of New Distribution Transformer Factory by Prime Minister
of Pakistan under Technical Assistance from Pauwels, Belgium.
2011 Launching of New Desire Series Refrigerator.
Prequalification with Saudi Electrical Company – SEC.
2012 Launch of new Arctic Series Refrigerator with New Aesthetics

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2013 Successful Commissioning of 220 KV GIS Shalimar Grid Station worth
Rs. 1.3 Billion
2014 Launching of New Glass Door Refrigerator with New Aesthetics
2015 Launching of Glass Door Mirror Series

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3 OBJECTIVES
Maintain
Competitiveness
Economize on costs
Achieve Operational
Efficiencies
Expand Product Line
Increase Sales
Figure 1 Objectives

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PART TWO
4 PEL COMPANY STRUCTURE
PEL mainly consist of seven departments. These departments play an important
role in the success of the organization due to the fact that the coordination between
these departments is excellent.

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4.1 Department Structure
PAK ELEKTRON LIMITED
Marketing
Department
Accounts
Department
Import & Export
Department
IT
Department
FINANCE
Department
Admin
Department
HR
Department
Figure 2 Department Structure

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4.2 Organizational Chart of the Governing body
Table 2 Organizational Chart of the Governing body
Board of Directors
Mr. M. Naseem Saigol Chairman – Executive
Mr. M. Murad Saigol Chief Executive Officer - Executive/ Certified (DTP)
Mr. M. Azam Saigol Director - Non Executive
Mr. Muhammad Zeid
Yousuf Saigol
Director - Executive/Certified (DTP)
Syed Manzar Hassan Director – Executive & CFO
Mr. Asad Ullah Khawaja Director - NIT Nominee/Independent
Sheikh Muhammad
Shakeel
Director - Non Executive/Certified (DTP)
Mr. Wajahat A. Baqai
Director
NBP Nominee U/S 182 of the Ordinance/ Non Executive
Mr. Usman Shahid
Director
NBP Nominee U/S 182 of the Ordinance/ Non Executive
Mr. Khalid Siddiq
Tirmizey Director
BOP Nominee U/S 182 of the Ordinance/ Non Executive
AUDIT COMMITTEE
Mr. M. Azam Saigol Chairman/Member
Mr. Asad Ullah Khawaja Member
Mr. Usman Shahid Member
Sheikh Muhammad
Shakeel
Member
HR & REMUNERATION COMMITTEE
Mr. M. Azam Saigol Chairman/Member
Mr. M. Murad Saigol Member
Mr. Asad Ullah Khawaja Member
Syed Manzar Hassan Member

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COMPANY SECRETARY
Muhammad Omer Farooq
CHIEF FINANCIAL OFFICER
Syed Manzar Hassan
AUDITORS
Rahman Sarfaraz Rahim Iqbal Rafiq & Chartered Accountants
LEGAL ADVISOR
M/s Hassan & Hassan Advocates

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4.3 MANAGEMENT STRUCTURE
Board of
Directors
Audit
Committee
Internal
Audit
Chief Exective
Officer
Director
Operation Power
Division
GM
Manufacturing
Distribution
Transformer
GM
Manufacturing
Power
Transformer
GM
Manufacturing
Swithgear
GM Marketing
WAPDA Business
GM Marketing
Private Business
General
Manager
R&D
General
Manager
IR & A
Sr.
Manager
HRM
GM Mfg
Refrigrato
rs
GM Mfg
AC &
Deep
Freezer
GM
Marketing
Cheif
Financial
Officer
Hr &
Remuneration
Committee
Company
Secretary
Figure 3 Management Structure

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4.4 Organogram and No, Of Employees:
CHAIRMAN BOD
MANAGERS - 200
EXECUTIVES - 670
LINE STAFF - 800
WORKERS - 4274

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4.5 ACCOUNTS DEPARTMENT LAYOUT
CHIEF FINANCE OFFICER (CFO)
JUNIOR MANAGER
MANAGER
SENIOR MANAGER
EXECTIVES

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4.6 EMPLOYEES IN VARIOUS SECTIONS
Name Designation Qualification: Experience Comments
Sir Arshad
Ali
Senior Manager Master
degree/ACCA
20 Years
Highly
Satisfied
Sir Saif-ur-
Rehman
Manager
Master degree 16 Years Satisfied
Sir Iqbal Junior Manager
Master degree 14 Years
Highly
Satisfied
Khazina
Dar
Assistant Accounts
Manager
Master degree 12 Years Satisfied
Sir Sohail
Ahmed
Accounts Payable
Executive
Bachelor degree 10 Years
Highly
Satisfied
Sir Waseem
Awan
Job Costing
Executive
Bachelor degree/
ACCA
8 Years Satisfied
Sir Mirza
Imran
Employee Cost
Management
Executive
Bachelor degree 9 Years Neutral
Sir
Mansoor
Sahb
Tax Section
Executive B.com 2 Years Dissatisfied
Number of Employees:
Employees 26
Managers 4
TOTAL Employees 30

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PERFORMANCE APPRAISAL
Performance appraisal means to evaluate the performance of employees and on
the basis of performance give rewards. All employees’ should be apprised at least
annually and their appraisal discussion should include at least these elements:
• Review job responsibilities, performance criteria and objectives.
• Review of performance accomplishments, included the method used.
Assignment of a performance designation.
• Review of planned development action.
• Annul appraisal results are reviewed by two levels of management above the
employee.
• Performance feedback of probation period will be done for payment employee
by his/her supervisor at the end of the probation period in order to determine
employee suitability.
Salary:
Employees 30K – 150K
Managers 150K – 350K
Incentives:
Employees Bonus, Other Facilities
Managers Car, House, Free Tours, Other Facilities

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Part Three
5 MANAGEMENT STYLES:
In an organizations, mostly two main styles are followed;
1. Management Style of Organic Model
2. Management Style of Mechanistic Model
5.1 Management Style of Organic Model

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5.2 Management Style of Mechanistic Model
PAK ELEKTRON LIMITED (PEL) also followed Mechanistic Model Style
having;
5.2.1 High Specialization
High degree to which tasks in the organization are subdivided into separate
jobs.
5.2.2 Rigid Departmentalization
Jobs are more grouped together.
5.2.3 Clear Chain of Command
PEL have unbroken line of authority that extends from the top of the
organization to the lowest echelon and clarifies who reports to whom.
5.2.4 Narrow Span of Control
There are many number of subordinates a manager can efficiently and
effectively direct.

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5.2.5 Centralization
Decision making is concentrated at a single point in PEL.
5.2.6 Highly Formalization
PEL jobs are standardized within the organization.
5.3 Management Style and Business Process Analysis
5.3.1 Work Flow
The organizational hierarchy of Pak Elektron Ltd. has both flat and tall span of
administration. In case of lower level of hierarchy (the worker and their supervisors)
the span is wide but as the level goes up, it becomes tall.
The managing director who is answerable to the Chairman holds the top
position. General Managers are answerable to the Managing Director (MD) and are
responsible for respective division, Managers are heading some departments, and
Assistant Managers (AM) is leading some by Deputy Managers (DM) and other.
There are senior engineers who are section in charge Supervisors and foremen report
to them.
5.3.1.1 Executive level:
At executive level, three to five engineers report to a manager and almost some
numbers of managers’ report to a General Manager.
5.3.1.2 Workers level:
At workers level, usually 10 to 30 workers report to a foreman. Three to seven
foremen report to a section in charge.
5.3.1.3 Division of Labor:
In Pak Elektron Limited (PEL), two types of employees hired
• Permanent Workers
• Temporary Workers
Temporary workers are employed for about 6 months, and when the season
concludes the temporary workers are laid off. Temporary workers are employed as
helpers and assigned those jobs where skills are not required.
Workers are divided into different teams based upon their skills and nature of
job. The team is led by head worker who is responsible for the work assigned to his

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team and directs the fellow workers to perform the assigned task. These teams are
masters of their jobs. Within a team, tasks have been assigned in a sequential order
and every individual is assigned a specific task. This activity not only helps
productivity but also helps the quality standards of the workers as each of them tries to
keep an eye on the other to see that he is performing correctly because if anything
goes wrong, the blame goes to the whole group.
Number of workers varies in different teams depending upon the nature of jobs.

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Part Four
6 PRODUCTION FACILITIES
The production department of PEL is manufacturing two finished products.
6.1 REFRIGERATOR
All the operations of the production department are taking place with the help
of machinery. In production department there are total 550 workers, which are
subdivided according to the subsections. The production takes places after the
issuance of Annual Sales Plan by Marketing Department. When the production
department receives that plan then the next step is to prepare an Annual Production
Plan. This annual production plan is then further divided into monthly plans that are
called Operational Plans. The operational plans further down filtered to the weekly
plans, which ultimately result in the daily production. On the average, the production
of refrigerator is 250 per day with some variation.
The refrigerator, called “PEL COOL” is specially designed to work most
efficiently under the extreme climatic conditions of Pakistan. The 313 components are
required to make a refrigerator. First of all the Research & Development technically
develops a single refrigerator that is manufactured in thousands by the production
department in different models and colors. All the specifications about machinery and
product are taken from the Engineering and R&D departments. The production
department is also manufacturing the High-Tec compressors for refrigerators and deep
freezers. It is the first such plant in Pakistan that is manufacturing all types of
compressors for refrigerators and for deep freezers.
The production department of PEL has following subsections.
1. COMPRESSOR SECTION
2. DYES & MOLDING SECTION
3. PRESS-SHOP
4. PLASTIC INJECTION MOLDING
5. PAINT SECTION
6. REFRIGERATOR ASSEMBLY LINE
7. PACKING SECTION
The Details of the operations and functions of each section is as follows.

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6.1.1 Compressor Section:
Here in this section the compressors of finest quality are manufactured. PEL is
the only company to produce all types of compressors.
This section is currently manufacturing the compressors for:
(a) Refrigerator
(b) Deep freezers
The basic feature of the compressor i.e. quality is the result of High-Tec or
professionalism.
6.1.2 Dyes & Molding Section
This subsection involves the production of the different dyes. The R&D
department develops the design of the different dyes, to be used in the preparation of
different plastic parts in the Press-shop. It fabricates the dyes and molds them
according to their specifications. The check of the quality department is of greater
importance at this stage, because all the further operations are depending upon these
dyes. In this department 40 workers are working and all are very well equipped. The
machinery that is being used in this section has been imported from Italy after the
technical collaboration with M/s SIRTAL SPA and M/s ARISTON respectively.
Material department on the request of the production department purchases the
material for these dyes.
6.1.3 Press-shop
When the dyes are handed over to the PRESSSHOP, now the production of
sheet metal parts starts in PRESSSHOP. This section is very important because the
parts, to be assembled for refrigerator, are manufactured here. The operational
procedure is very simple. The P&D dept. provides them the sheet that is called “G1
Sheet” or “Gisti chadar”. It is provided in bulks to refrigerators. And it is also called
the in-house manufacturing because many of the parts are manufacturing by it now
these sheets go down under an operational process and results in different parts. The
main operations, which are performed on these sheets, are mainly:
1. Cleaning
2. Fabrication
3. Cutting
4. Putting in dyes

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5. Molding
6. Quality inspection
7. Final cleaning with gasses and
8. Ready for paint liquids
Now all these parts are ready for assembling. The main parts are:
(a) Body of the Refrigerator
(b) Aluminum pipe
(c) Copper pipe
6.1.4 Plastic Injection Molding Section
This department is responsible mainly for the manufacturing] of big Sheet
Metal Parts and of plastic parts. Here the huge and costly machinery is installed and
all is imported from Italy. In this section 30 workers are highly qualified technicians.
The operational activities of this section is almost the same as of press-shop i.e.
cutting, cleaning and fabrication etc. The only difference is that in press-shop the dyes
are used but in Plastic injection molding section, the High-Tec machinery is used.
This department is also using iron and still.
6.1.5 Paint Section
When the different components are prepared by Plastic injection molding and
from press-shop, these are sent to the pint section for paint purposes. This refrigerator.
Here the control of quality is very important because the components should not have
any fade color or any other damage, so the quality control has some standards through
which they are checking the paint section the production department. So the
operations in paint section mainly consists of:
1. Washing of Parts.
2. Paint
3. Pressure of hot air
4. Final cleaning and touch in

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6.1.6 Refrigerator Assembly Line:
6.1.6.1 MAIN PARTS OF REFRIGERATOR IN ASSEMBLY LINE
Here in this section the different 313 components are assembled to make
a refrigerator. The assembly of the different parts is done by machinery. The
main parts, which are involved in a refrigerator, are:
1. FREEZER:
The freezer, which the production department is currently using, is of
two types.
(a) In-house
(b) Imported
This section is assembling both types of freezers in the refrigerator and
both have the same quality.
2. BODY
The body of the refrigerator is also in-house manufactured. Press-shop,
produces the plastic body and the plastic injection molding section is producing
the upper body or steel body.
3. COMPRESSOR
Compressor is the dynamic part of the refrigerator, which actually
worked in a refrigerator. Al other parts in a refrigerator are static ones.
4. EVAPORATOR
This is the part, which has the function of absorbing the heat from the
compressor and from all other parts.
5. CONDENSOR
Now when the evaporator absorbed the head, now the condenser works
as an ejector of heat from the refrigerator.
6. DOORS
The doors of the refrigerator are also in-house manufactured.

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6.1.6.2 SECTIONS OF ASSEMBLY LINE
When all the components are transferred to the refrigerator assembly
line, the assembly of the parts is done by Assembly line. This section has
further seven subsections.
1. Thermo Forming Section
2. Pre-Assembly Section
(a) Pre-Assembly Section (a)
(b) Pre-Assembly Section (b)
3. Foaming Section
4. Assembly Line Section
5. Door Assembly
6. Final Line Section
7. Final Inspection Section
8. Packing Section
The process design in the assembly line of refrigerator consists of the
following operations.
1) THERMO FORMING SECTION
The process starts from this section. In this section all the parts
are checked by the quality control department and if there is any
discrepancy, it resolved or removed with the help of forming operation.
Many parts of the refrigerator, which are imported from Italy, are passed
through by this forming operation. The damaged parts and components
are repaired in thermo forming section.
2) PREASSEMBLY SECTION
a. PREASSEMBLY SECTION [A]
On the arrival of the parts in this section, during assembly
certain operations are performed by technical individuals, are as
follows:
i) CLEANING OF BODY
Here some dust removing workers clean the body of Refrigerator.

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ii) ASSEMBLY OF SHEET METAL PARTS
Here The Sheet Metal parts are assembled with body through tape.
iii) ASSEMBLING OF OTHER PLASTIC PARTS
Here the assembly of other parts is done. For Assembly
purposes, the tape issued, not even a single screw is used here.
iv) ASSEMBLY OF FREEZER:
After the assembling of all plastic parts, the freezer is
assembled with the body. It is also done with the help of tape.
b. PREASSEMBLY SECTION [B]
After the assembling of plastic parts and of freezer, the body is
sent to this section. The following are the operations that are
performed in this section.
i) COVER OF FREEZER
Here the cover of freezer is placed. It is done with the use of tape.
ii) FREEZER COVER TIGHTENING
Now then cover of the freezer is tightened through screws for
protection purposes.
3) FOAMING SECTION
Here the following operations are taking place.
i) THROUGH CHECKING OF BODY:
Here the body with all its plastic parts and freezer is inspected
so that it can be free from all faults. Here the freezer and its body is
checked with the help of heavy machines so that it don’t have any
looseness.
ii) INSULATION

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Here the whole body is passed through the machinery, for his
insulation of the tape. Here machines automatically inject the liquid,
which holds the parts together.
iii) GAS INJECTION
Here the special is injected in parts with help of imported machinery.
4) ASSEMBLY LINE SECTION
Here the compressor and other parts are assembled and the
following operations are performed.
i) COMPRESSOR ASSEMBLING
Here the compressor is assembled and tightened with the help of screws.
ii) COOLING CIRCUIT
After compressor assembling, the cooling circuit is fitted with the body.
iii) ELECTRICAL CHECKING
Here the installed electrical machine checks all the components
of the refrigerator.
iv) LEAKAGE DETECTION
Here the gas leakage detector is use to detect any flaw in the gas
supply. The refrigerator is tested for a complete night for the detection
of gas leakages.
5) FINAL LINE SECTION:
This section performs multiple operations, which are discussed below.
i) PLASTIC MEGNAT
Here the plastic magnet is put into the rubber of the body and of
the door. This plastic magnet is imported from Italy.
ii) RUBBER COUPLING
Here the rubber with plastic magnet is coupled and joined with
the body and with the door.

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iii) ACCESSORIES PLACEMENT
Here the different accessories are placed in the refrigerator for
customer use.
The main accessories are:
1. Plastic boxed
2. Plastic sheets
3. Buttons
4. Bulbs
5. Wires
6. Covers
6) DOOR ASSEMBLY SECTION
This section has following operations
i) ALIGNMENT OF STEEL PARTS WITH THE DOOR
Here the steel parts are aligned and tightened with the door.
ii) DOOR TIGHTENING
Now the door is tightened with the body with the help of screws.
7) FINAL INSPECTION SECTION
Here the refrigerator is thoroughly and finally inspected. The
operations include.
i) OPERATIONAL/ FUNCTIONAL TESTING
Here a refrigerator is operationally/ functionally tested. It is
operated for a whole day.
ii) QUALITY CONTROL CHECKING
Here the quality assurance is checked. The refrigerator is
checked technically and physically by quality control.

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6.1.7 Packing Section:
Now the refrigerator is ready for packing after quality control checking. So the
refrigerators are packed according to their models and colors, and delivered to the
Storeroom.
6.2 Production Process in Different Sections
6.2.1 Conveyor
The products being assembled in split A.C & MWO department are indoor A.C,
outdoor A.C and microwave oven.
Split air conditioners are available in three capacities:
• 1 ton
• 1.5 ton
• 2 ton
The models are available in
• Aux
• Midea
• Glanz
• LG
At a time one model is assembled on a single model manual assembly line. The
work transport system on this assembly line is mechanized that consists of powered
roller conveyors. These conveyors transport unit components from the point “unit
opening” to the end point “unit packing” in a single direction.
The work transport system at outdoor A.C assembly line is continuous in which
chain conveyor moves along the whole length of the line.
At vacuuming loop the work transport system is through chain conveyor.
The work transport system at indoor A.C is continuous; if one worker stops the
conveyor the whole of the assembly line conveyor is stopped.

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6.2.2 Storage system
The storage location strategy is randomized storage system in which item are
placed into storage in the nearest available location. When order is received for a given
stock keeping unit, the stock is retrieved from storage according to first in first out
policy so that the items held in storage for long time can be used to make up the order.
The storage method used is bulk storage in which items are contained on pallets
and are stacked on top of each other to increase storage density.
6.2.3 Dies & moulds
Dies & molds are used to manufacture identical items in large quantity. Drafts
man makes drawings using Del CAM software after approval from research &
development department. Then machining process starts using planner, shaper, drilling,
lathe, EDM and CNC machining center. NC program is transferred to CNC machine
through card. After this parts are assembled to make dies & molds.
6.2.3.1 Dies
Dies are used for sheet metal.
6.2.3.2 Molds
Molds are used for injecting molten material.
6.2.4 Injection molding
In this section refrigerator, energy meter and deep freezer parts are
manufactured through injection molding process. In this process imported material in
granular form is sucked through autoloader into the hopper. A.B.S Material is dried at
75 C0
, it can vary with the type of material. After that dried material is passed through
barrel through a process called as choking. In the barrel five heaters melt the material
and through runner it is injected into the mold cavity. After that material is cooled, and
after cooling desired piece is obtained. Temperature is controlled through
programmable logic controller (PLC).

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6.2.5 Press shop
In this section the raw material is sheet metal and refrigerator & deep freezer
parts are manufactured on press machines using dies from dies & molds department
through shearing, bending, notching, blanking, piercing, drawing, side forming,
grinding and welding operations. The machines being used are:
• Shearing machine
• Vertical press
• Side forming machine
• Hydraulic press
• Hand grinding machine
6.2.5.1 Refrigerator components
Side panel, top panel, back panel, upper strip, center strip, lower strip,
compressor plate, condenser plate, doors, lock guide, lock clamp, lock assembly,
cabinet bottom, cabinet looms, lock latches, lower hinge, flat washer and central henge
coupling plate.
6.2.5.2 Deep freezer components
Doors and outer components are manufactured.
6.2.6 Paint plant
In this section refrigerator and deep freezer components are painted by Corona
Gun. The paint being used is of Juton Company and is in powdered form. First the
components needed to paint are loaded on hooks in conveyor then inspection is
performed to identify any dent or defect. After that steps involved are as follows
6.2.6.1 Treatment line
In this components are treatment is done to remove oils, greases, forming
compounds, lubricants, coolants, cutting fluids, and other undesirable organic and
metallic residue left behind as a result of fabrication.

39
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6.2.6.2 De-greasing
For this purpose vapor de-greasing is done. This process is a closed system in
which the item to be cleaned is exposed to the condensing vapors of the solvent. This
method effectively removes light oils/greases.
6.2.6.3 De-rusting
After removal of the organic and metallic residues, the parts are placed into the
appropriate passivation solution. Passivating Solution is phosphoric acid based solution.
The purpose is the removal of exogenous iron or contamination from the surface of a
stainless steel by means of a chemical dissolution.
6.2.6.4 Water rinsing
After that the parts are rinsed with water.
6.2.6.5 Activation process
This process provides fine active crystal centres on the surface of the metal which
ultimately results into tine phosphate coating Layer in phosphating stage. This process
helps to attain a uniform phosphate coating. There are two types of activation processes:
• Acidic Activation
• Basic Activation
6.2.6.6 Air blowing
Air pressure is given to clean the parts.
6.2.6.7 Drying in Oven
Parts are dried at 45 C0
and finally are ready to be painted.
6.2.6.8 Painting booth
The parts pass through a painting booth. Here, automatic and manual powder
paint guns deliver a constant, electrostatically charged mist of powder coat. The powder
coat is applied to a thickness spec of 3 mils.

40
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6.2.6.9 Baking
After the powder coat has been applied, the parts move on to oven where they
are baked at 220 C0
degrees for one hour.
6.2.7 Thermoforming of cabinets
In this section refrigerator inner cabinet is formed by a vacuum forming machine.
Vacuum forming machine consists of reduction plate, counter frame, bubble photocell,
PLC controller and sixty heaters of 650 watts.
6.2.7.1 Thermoforming
Plastic sheet of 4.7 mm comes from plastic sheet extrusion department. Plastic
Sheet is kept on reduction plate counter frame comes close and heaters melt the sheet.
After melting bubble air spreads the sheet within limits defined on bubble photocell.
Meanwhile mold comes and small hole in mold create vacuum. Sheet gets the mold
shape and then blowers cool the sheet. After cooling some pressure is given to detach
the cabinet from mold and the piece is drawn from the machine.
6.2.8 Plastic sheet extrusion
Plastic sheet for refrigerator inner cabinet and deep freezer door is extruded in
this section. This is totally automated plant.
6.2.8.1 Process
Raw material HIPS in the form of small beads is mixed with color master batch
M-36 prior to the hopper. Then it is transferred to storage chamber, from storage
chamber it sucked into extruder Hopper through auto loader. After that material is dried
in the hopper and travels in the barrel along with screws. During this three independent
PID controlled heater zones gradually increase the temperature of the barrel from 175-
210 C0
. The material is melted and is extruded into sheet through T Die. After that it
passes through roller unit around which water circulates and it is cooled and stretched.
Then passes through cutting unit and is cut into desired length. After that sheet is

41
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transferred to conveyor and finally unloaded for storage. Thickness of sheet for
refrigerator cabinet is 4.7 mm while for deep freezer door is 2.25mm.
6.2.9 Gaskit extrusion
Here gaskit for deep freezer and refrigerator doors is made through extruder.
6.2.9.1 Process
On the extrusion line Polyvinylchloride grains are sucked through vacuum
system into the hopper of the extruder. Then these are melted by heaters and are passed
through T Die. The desired gaskit is cooled for its shape retention. After that it is pressed
for getting compact shape. Then Auto sensors are there which cut the desired length of
gaskit and after that magnet is passed through refrigerator gaskit. And finally it is
dispatched to deep freezer and refrigerator doors assembly.
6.2.10 Condenser section
In this section condenser for refrigerator is manufacture. The raw material is cold
roo and bundy tube. Louver is prepared at louver press machine then spot welding is
performed to join Bundy tube and louver. After that air stripping is done and finally cap
fixing. The control of spot welding machine is pneumatic.
6.2.11 Door assembly & foaming
In this section refrigerator and deep freezer doors are assembled. The first step
is fixing end cap and concede handle. Then gaskit fitting, after that foaming is done.
The material used for foaming is iso-cyanate and polyol. Then lock assembly is done
and finally the doors are dispatched to the relevant assembly line.
6.2.12 Preassembly
This section is for refrigerator pre assembly. PEL’s refrigerators are available in
different colors, models, prices and capacities. These are as follows
• Xpression Series
• Premier Series
• 6-Series

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• Delux Series
• Smart Series
• Mini Series
The first step is evaporator bending on bending machine then side plates are
fixed. After that freezer frame, freezer support and cabinet support is assembled.
Meanwhile base assembly and anti-condensate pipe are prepared. After preparation
these parts are assembled. Then back plate, back panel, side panel and top panels are
assembled. The next step is foaming to make refrigerator body more rigid. The material
used for foaming is polyol, isocyanate and cyclopentane as blowing agent.
6.2.13 Assembly line
For refrigerator assembly there are two lines A & B. at assembly line ‘A’ lower
henge, Centre henge, upper henge, thermostat, condenser, compressor, and door
assembly is done. After that vacuuming, gas charging and then testing is performed.
The test is of two types.
• Short test
• Long test
In short test power, suction and discharge test is performed. This test shows
results on software PLIS, where control limits are already defined if values cross the
limits then unit is reworked. While in long test randomly units are selected and attest of
2 hours is performed to check the cooling of the unit.
At assembly line ‘B’ chilled box, glass shelf, bottle shelf, vegetable box, door
handles, drain tray, freezer balcony, egg tray, utility pocket, etc. are fitted. And then
again same electrical test as in line ‘A’ is performed.
6.2.14 Final line
At final line ice scraper, drip tray, water container, wooden base skid, door
protector is fitted. Then finally packing is done the unit is dispatched to the store.

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6.2.15 Deep freezer
Deep Freezer parts are assembled on manual assembly line. The first step is
assembling of condenser and compressor assembly on base plate. After that outlet and
inlet are fitted. Then leak test is performed by nitrogen gas filling. After that fan motor
is wiring is done. Then aluminum sheet is interblending and joining starts. After that
inner sealing and coiling is done. Then top frame fitting and chemical (NaCl+NaNO3)
filling process starts. After that accumulator and capillary welding and then cabinet
foaming is performed. After that wheel plate condensing unit fitting, hinge & door
fitting, vacuuming and then gas charging is done at .335 kg. Then deep freezer testing
is performed and finally packing and dispatch to the store.
6.2.16 Quality Control & Assurance
There are four divisions.
1. Market quality
2. Process quality
3. Techniques
4. Incoming quality control
For insuring quality online inspection is performed in each production line. To
control the quality Pareto analysis is done in which percentage of defects and their type
is analyzed and then action plan is made to minimize the defects.
Quality system procedures are and work instructions are prepared by each
relevant department and are implemented practically as well. Moreover for approval of
new samples quality department contribution is also needed.
6.2.17 Production planning & control
For production of specific model of home appliances material is issued by the
production planning & control (PPC) department. IR/operational plan is given to the
PPC by marketing department after forecasting and receiving orders from the
customers. There is a specific number called “FB#” for each model. This “FB#” number

44
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is opened on “MRCS” software. This software calculates the number of components
required to make a required model. Then finance department opens this “FB#” on
“CCS” software and calculates the cost to manufacture the required the model. Then
sales price of required model is set and the sales department is informed of that price.
And then the model is sold on that price. Moreover PPC also has access to the material
available at production line and demands material consumption report from the
production line. So this was how PPC works.
6.2.18 Research & development
This department has three portions
1. Designer
2. Vendor development
3. Marketing
R & D contributes for changes in existing model and addition of new features.
For this purpose market survey is conducted. When there is need to make changes or
add new features. Feasibility study is done whether production equipment, labor and
capacity is available. After these considerations the new model is designed by the
designers. The new design is verified and a sample is prepared. Then sample is
validated. After successful validation bulk production is started.
6.2.19 Areas which needs to be improved
The areas which I observed to be improved are as follows.
• Assembly line
• Work transport system(conveyor)
• Workers efficiency
• Material transport system
• Storage systems
• Production methods
• Quality control programs

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• Inventory control
6.3 COMPETITIVE PRIORITIES:
6.3.1 COST:
Low cost
6.3.2 QUALITY:
Consistent quality with high class appliance performance
6.3.3 FLEXIBILITY:
A lot of volume, equipment and workforce flexibility is present
6.3.4 LOCATION
PAK ELEKTRON was set up in 1956, at that time the location site was
selected outside
Lahore City 14km Ferozepur road, Kot Lakhpat Industrial Area. The site
for the purposes of the operation was selected by adopting the judgmental
method and no sophisticated technique was utilized. The following were the
dominant factors, which moved the management to select the site for the facility
location.
6.3.5 CONSTRUCTION
The major cost involved in any organization is in the shape of the
construction costs. That took a large amount. But at that time the labor was
available at the cheaper rate. Due to which the site was selected at that place.
6.3.6 TAXES AND REAL ESTATE COSTS
At that time that area was free from the sale tax by the policy of the Govt.
The second factor was that the real estate’s cost was too much lower as compared
to the main area in the city. That was the other main reason for the selection of
the site.
6.3.7 FAVORABLE LABOR CLIMATE
The labor plays an important role in the selection of the labor-intensive
company. So the main reason for the selection of the site outside city was that the
labor was available at the cheaper rate.
6.3.8 NEW LOCATION FACILITY
Later in the early 1990’s PEL expanded its business from mere power
products to the appliances Division selected two sites of the Go down; Amazai
and Hatter. Again they have utilized the judgmental approach to select the site for
the location again. The location is at a long distance from the market of the
company but the only motive, which is in favor of the decision, is the government
Tax Free Zone Policy to develop the industrial infrastructure in the country.

46
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6.4 CAPACITY
“Capacity is the maximum rate of output for a facility”.
6.4.1 CAPACITY MEASURE
In every department PEL has got several machines which are used in the
production of various appliances and electrical equipment whose capacity is
measured in term of the output measures.
6.4.2 CAPACITY UNILIZATION
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
MVA NO.S NO.S TONNES CFTS LITRES
TRANSFORMERS SWITCHGEARS ENERGY METERS AIR CONDITIONERSREFRIGERATORS/DEEP FREEZERS
MICROWAVE OVENS
Transformers Switchgears Energy Meters Air conditioners
Refrigerators/Deep
Freezers
Microwave Ovens
MVA No.s No.s Tonnes Cfts Litres
2015 64.17% 69.26% 18.88% 45.50% 82.18% 55.69%
2014 61.94% 69.53% 34.07% 10.79% 83.05% 33.77%
2013 50.74% 89.12% 16.34% 1.91% 66.13% 0.00%
2012 79.34% 19.78% 15.54% 1.02% 60.84% 0.00%
2011 40.58% 33.11% 20.57% 43.96% 53.21% 0.00%
2010 59.98% 76.51% 49.64% 102.17% 73.22% 0.00%
PEL Products Capacity Utilization Parcentage
2015 2014 2013 2012 2011 2010

47
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0.00%
20.00%
40.00%
60.00%
80.00%
TRANSFORMERS
Transformers
2015 64.17%
2014 61.94%
2013 50.74%
2012 79.34%
2011 40.58%
2010 59.98%
Transformers Capacity Utilization Parcentage
2015 2014 2013 2012 2011 2010
Unit 2015 2014 2013 2012 2011 2010
Annual Production Capacity
Transformers MVA 6,500 5,000 5,000 5,000 5,000 5,000
Switchgears No.s 12,000 9,000 9,000 9,000 4,500 4,500
Energy Meters No.s 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000
Air conditioners Tonnes 90,000 90,000 90,000 90,000 90,000 90,000
Refrigerators/Deep Freezers Cfts 5,500,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Microwave Ovens Litres 700,000 700,000 - - - -
Actual Production
Transformers MVA 4,171 3,097 2,537 3,967 2,029 2,999
Switchgears No.s 8,311 6,258 8,021 1,780 1,490 3,443
Energy Meters No.s 320,875 579,237 277,732 264,148 349,611 843,880
Air conditioners Tonnes 40,953 9,712 1,720 919 39,565 91,952
Refrigerators/Deep Freezers Cfts 4,520,052 4,152,270 3,306,428 3,042,064 2,660,387 3,660,858
Microwave Ovens Litre 389,809 236,391 - - - -

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0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
SWITCHGEARS
Switchgears
2015 69.26%
2014 69.53%
2013 89.12%
2012 19.78%
2011 33.11%
2010 76.51%
Switchgears Capacity Utilization Parcentage
2015 2014 2013 2012 2011 2010
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
ENERGY METERS
Energy Meters
2015 18.88%
2014 34.07%
2013 16.34%
2012 15.54%
2011 20.57%
2010 49.64%
Energu Meters Capacity Utilization Parcentage
2015 2014 2013 2012 2011 2010

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0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
AIR CONDITIONERS
Air conditioners
2015 45.50%
2014 10.79%
2013 1.91%
2012 1.02%
2011 43.96%
2010 102.17%
Air Conditioners Capacity Utilization
Parcentage
2015 2014 2013 2012 2011 2010
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
REFRIGERATORS/DEEP FREEZERS
Refrigerators/Deep Freezers
2015 82.18%
2014 83.05%
2013 66.13%
2012 60.84%
2011 53.21%
2010 73.22%
Refrigerators/Deep Freezers Capacity
Utilization Parcentage
2015 2014 2013 2012 2011 2010

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6.5 BOTTLE NECK IN PRODUCTION OPERATIONS
In the whole production process there are certain stages, which are more
time consuming than the others. So this limits the output rate to a minimum level
to that which was expected.
In the process of the refrigerator manufacturing the bottleneck is created at
the thermos foaming machine.
In the process;
From base making to the packing at the stage of the foaming this
bottleneck is created.
• BASE MAKING
• CABINET MAKING
• FOAMING
• QUALITY
• PACKING
6.6 ECONOMIES OF SCALE
PEL is trying to reduce its cost through enjoying the economies of scales in
his processes.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
MICROWAVE OVENS
Microwave Ovens
2015 55.69%
2014 33.77%
2013 0.00%
2012 0.00%
2011 0.00%
2010 0.00%
Microwave Ovens Capacity Utilization
Parcentage
2015 2014 2013 2012 2011 2010

51
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Because of the purchasing in the bulk and using the activities as the
measure of the overhead charges PEL has been successful in reducing
1. The cost of materials
2. The cost struck in the processes
3. The cost in the overhead.
6.6.1 Reason for winding up of compressor business:
In case of compressors the company failed to get economies of scale that’s
why they have closed the manufacturing of compressor. MR.FARYAL the
production engineer has told me that to get the economies of scale or to cover the
fixed expenses they must have to produce 3,50,000 compressors, where as their
internal consumption is 1,00,000 compressors, so they must have to sell 1,50,000
compressors ( 60 % ) in outside market. But at outside their compressor’s
demand is not as much as required. So as a result they have closed their business
of compressor.

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6.7 Suggestions
For the areas which I have pointed out to be improved, I have some suggestions
• Assembly line: assembly line efficiency can be maximized by line balancing
concept. For this purpose “largest candidate rule” for line balancing can be
applied. By doing this bottleneck can be eliminated and assembly process can
run smoothly.
• Work transport system (conveyor): The mechanized work transport system
should be asynchronous in which work units move independently. This
system is more efficient and flexible for workers.
• Workers efficiency: workers efficiency can be maximized by setting time
standards and giving performance incentives. By doing this over time can be
minimized.
• Material transport system: material transport system can be improved by
replacing trolleys by belt conveyor. This will reduce the number of workers
and will make the material handling system more quick and efficient. But for
this purpose feasibility is most important. If it is physically impossible then
powered walkie trucks can be used. Walkie trucks have wheeled forks for
insertion into pallets and are controlled by a handle at front of vehicle.
• Storage systems: for storage of finished goods there should be a dedicated
storage location strategy in which units are assigned to specific locations in
the storage facility. By doing this each type of items are stored in specific
pallet racks this is very helpful for increasing through put rate.
• Production methods: to improve the production methods effective
implementation of lean production is necessary. Moreover Kaizen Japanese
approach to production can also help to eliminate the waste and improve the
process continuously.
• Quality control programs: Quality can be further improved by applying
total quality management (TQM) in addition to certification of ISO 9001-
2008.

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• Inventory control: shortage of raw material is a big issue. To overcome this
regression analysis should be done to forecast the raw material required.
Moreover to minimize inventory cost economic order quantity formula
should be used for purchase orders and a reorder point should be set in order
to avoid any shortage of material. There is need to apply inventory control
model like ABC analysis for control of high value inventory items.

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Part Five
7 MARKETING MIX
Marketing department controls the 4P's in the company i.e. Product,
Promotion, Placement, and Pricing. They are also responsible for the alteration and
Modification in the different brands of the company and of new product e.g. they can
suggest color change, size of product etc. which is being demanded by the customers.
They try to bring innovations in the products to make them attractive for the
customers and to compete with the competitors i.e. Dawlance, General, and Waves
etc.
7.1 PRODUCT DIVISION
The Company comprises of two divisions; each offering a wide range of
products as follows;
Product
Division
Appliances
Division
Power Division

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Product Hierarchy:

56
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1. APPLIANCES DIVISION
This Division of PEL consists of appliances manufacturing.
Business in appliances division has shown mixed trend but the Company is
finally on the right track. Crystal Refrigerator with Aero design and Danfoss compressor
with performance certification by Danfoss Germany was launched in the February
1999. This has been received very well in the market and our refrigerator sales have
shown an increase of ver. 125% since1999. This thrust is expected to continue in the
following year as a result of company’s innovative approach in product development
coupled with aggressive marketing strategy.
PAK
ELEKTRON
LTD.
Power Division
Distribution
Transformers
Energy Meters
Switchgare
Power
transformer
Grid Station
Appliances
divisin
Manufactruing
division
Refrigratior
Deep Freezer
Air conditined
Tarding
Division
Washing
Machine
Microwave
oven
Genrator
Televison

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➢ PEL APPLIANCES LTD.
Deep Freezers and window air-conditioners are the products of subsidiary
PEL It is expected that PEL Appliances Limited should move into a healthier
situation in the ensuing years.
➢ PEL DAEWOO ELECTRONICS LTD.
Agreement for conversion of Sony Television at the plant was concluded
and PEL has started production of their products since May 1999. Under this
arrangement television kits are supplied to us by Sony and converted televisions
are delivered to them and marketed through their own network. The US$
denominated conversion price for the televisions assembled by us is charged on
fortnightly basis.
Tariff structure on Televisions has been rationalized in the federal budget for
2001-2002 and as a result violability of locally assembled televisions has considerably
improved. Sony intends to take full advantage of this situation and volumes of locally
assembled televisions are resultantly expected to increase manifolds. Agreement for
conversion of VEGA flat screen television has also concluded and we have very
successfully started its production in September 2000.
PRODUCTS OF APPLIANCES DIVISION
✓ Refrigerators
✓ Air Conditioners
✓ Deep Freezers
✓ Microwave Ovens
✓ Washing Machines
✓ Water Dispensers
2. POWER DIVISION

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PEL was founded in 1956 and has since been serving the Power utilities,
industries, individual customers, housing and commercial projects by providing
reliable, customized and cost effective solutions. Backed by the innovative genius of
Saigol Group, PEL is now technology forerunner and market leader in providing new
products and services to meet ever changing and technology intensive needs of its
customers. Our EPC contracting division delivers custom designed and built HV and
EHV grid stations, electrification of housing projects, industrial parks and optimum
solutions for power utilization to all kinds of industries and commercial customers. The
company aims to maintain this competitive edge and at the same time keep striving to
improve it further by continuous R&D, creating new knowledge and adapting to global
developments in technology and product design. Ever increasing local market share,
growing export orders, numerous successful power projects and greater than ever base
of satisfied customers are evidence to these aspirations. Works of PEL are spread at two
facilities in Lahore, the historical city and cultural hub of Pakistan. The two facilities
cover an area of 1,033,200 Sq. ft. and 614,252Sq ft. respectively. Both are equipped
with latest technology, state of the attesting facilities and environment friendly
production process. At the heart of company’s operations is its human resource. PEL
invests heavily on Professional development, skill improvement and well-being of its
human resource. Our employees are our most valuable asset and we keep them very
dear.
PRODUCTS OF POWER DIVISION
✓ Distribution Transformers
✓ Power Transformers
✓ Energy Meters
✓ Switchgears
✓ Grid Stations
✓ EPC Contracting

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7.1.1 PRODUCTS OF APPLIANCES DIVISION
PEL is among the Market Leaders in Home Appliances Business with a very
good Presence and Market Share since year 1987. Growing demand is due to innovation
and product development through R&D
7.1.1.1 Refrigerator:
PEL started Refrigerator Manufacturing in Year 1987 with the technical
assistance of IAR-SILTAL Italy. Its cooling performance is tested and approved by
Danfoss Germany while the manufacturing facility is ISO 9002 certified from SGS
Switzerland.
• To accommodate the small size segments Company has introduced two
new sizes, 2000 & 2200 in Glass Door and Glass Door Mirror series.
• Turnover of Refrigerators is increased by 7.4% over last year,
simultaneously Company has improved margins.
The manufacturing of refrigerators started in 1986-87 in technical collaboration
with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in
Great demand. Today, PEL Crystal has 30% market share. Its cooling performance is
tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002
certified by SGS Switzerland. PEL refrigerators carry compressor made by Danfoss of
Germany. The Pakistan refrigerators market has experienced growth in previous years
due to availability of local direct-cool refrigerators at lower prices, economic growth
and the upward trend of consumer financing at lower interest rates. Pak Elektron
Limited.
Crystal refrigerator is the largest in its class, rustproof from head to toe and
powered by the world's No.1 compressor (Danfoss). This low-noise compressor is
extremely silent and keeps the refrigerator running smoothly. The compressor is also

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well prepared to face Pakistani electrical outages, it remains functional on voltages as
low as 170 volts and has an upper limit of 250 volts.
CRYSTAL refrigerator's
cooling performance has been tested
and approved by Danfoss
(Germany). The refrigerator is
available in a wide range of colors
like beige and green in PCM.
CRYSTAL refrigerator comes with
3-year compressor and 1 year parts
warranty.
1. PEL REFRIGERATOR USP’s
a) Thicker Door Insulation
Retains cooling for optimal
b) Humidity Controller
Performance specially designed to control the Humidity level in
Vegetable box
c) AG+ Bacteria Buster
Emits silver ions that reduce bacteria Growth
d) Double sided Roll Bond evaporator
Specially designed to work in Pakistani Temperatures up to 55 C
e) Vitamin kit
It is specially designed to generate Vitamin C in crisper which helps
in keeping the vegetable freshness longer.
f) CRISPO Fresher Tray
PEL
32%
Dawlance
46%
Waves
14%
Others
8%
Market Share:
Refrigerators
PEL Dawlance Waves Others

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Specially designed tray holds more moisture to keep fruits &
vegetables fresh for longer
7.1.1.2 Air Conditioner:
PEL is among the Pioneers of Window AC Manufacturing. Split A.C has been
replaced with Window Ac due to change in Fashion and Market demand. PEL Split A.C
is well received in the market due to its durability, quality and brand equity.
• The Company has started Split AC manufacturing and sales in 2014
which is increasing the Company’s profitability.
PEL window-type air conditioners were introduced in 1981 in technical
collaboration with General Corporation of Japan. Ever since their launch, PEL air
conditioners have a leading position in the market. PEL air conditioners cooling
performance has been tested and approved by Copeland and ITS USA. With the shift
of user’s preference from window
type to split type air conditioners,
PEL has started manufacturing split
type air conditioners.
Sales of window Air-
conditioners is almost at the same
level of last year but have not
reached the desired level with a
pressure on prices and exchange
rates impact causing increase in
losses to the subsidiary PEL Appliances Limited. Main reason of this situation is a huge
influx of imported product as a result of change in custom valuation recorders allowing
imports at during prices and under invoicing. In addition supply of smuggled air-
conditioners also continued even after Government’s announcement to impose controls
PEL
25%
LG
10%
O'General
10%
General
15%
Others
40%
Market Share: Air
Conditioners
PEL LG O'General General Others

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on such activities. This is expected to discontinue after old stocks of smuggled goods
are exhausted and fresh supplies are not allowed.
The company in order to address the above situation has embarked upon a major
plan to improve product quality, widen product range, introduce power efficient models,
add competitive features like remote control, added filters and to improve the product
an esthetically. After consistent efforts in the recent years PEL have been able to
develop a new range of models under the brands name of ‘Energy Saver’ the cooling
and balancing of this machine is tested and certified by Cope land of USA .This has
received a very positive response from the market due to its efficient energy savings,
cooling, low noise, compact size, nature friendly features. PEL anticipates that the
company will make a breakthrough in the volume of Energy Saver as what we have
successfully performed in case of Crystal brand Refrigerators. In addition a major
exercise is being done to reduce material cost and improve manufacturing process.
Technical support and know how is being obtained from international companies and
foreign laboratories to achieve this objective.
1. Super cool
PEL 2000 features a new aerodynamic design and is fitted with a new
American compressor, Copeland, which is the number one compressor in the
world. Its excellent cooling performance compressor cools 15%faster and has
an even lower level of electricity consumption. The cooling performance of
PEL 2000 air conditioner has been tested and approved by ITS (Intertek
Testing Services) USA. PEL 2000 is available in two colors, with and grey.
a) Powerful Airflow
PEL 2000 air conditioner is equipped an innovative airflow
confirmation. The extra-large air outlet provides a strong yet comfortable
air flow that covers greater distance without losing power.

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b) Wildest Air Sweep
PEL 2000 air conditioner has an air sweep angle of 120 degrees which
is wider than any other air conditioner in the market. Its multiway vertical
louvers distribute streams of cool air to all corners of your room. Eleven
different flow patterns can be obtained by pre-setting these "Jet-Vanes".
c) Progressive products, Absolute Guarantee
For complete customer satisfaction, PEL 2000 air-conditioned is
backed by a 5-year compressor and 1 year parts guarantee.
PEL Be There When You Need Them
Excellent hassle-free service is only a phone call away. Just call the PEL
Service Centre in your city and a technician will be at your doorstep on the same day.
2. Window Air conditioner
a) Low Noise
The room air conditioner is extremely silent and very comfortable due
to the latest technology, low-noise compressor and side discharge design.
b) Non-Drip Feature
The window type air conditioner is designed to remain drip free at
humidity levels as high as 70%.
3. Split Air conditioner
The elegant, new high-wall split system air conditioner from Carrier
combines attractive slim line styling with superior quality and efficiency. The
soft white coloring and smooth curved lines make this unit ideal for
restaurants, shops, offices and residential applications.

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7.1.1.3 Deep Freezer:
PEL Deep Freezers were introduced in 1987 in technical collaboration with
ARISTON Italy. Due to durability and high quality, PEL Deep Freezers are preferred
choice of corporate Institutions like Unilever and Engro.
PEL Ice Cream Cabinets Are best choices of “Walls” and “Omore’’ Ice cream
Products. Through R&D Company is improving the quality of their products and have
added Deep Freezers in the Retail market.
7.1.1.4 Washing Machines
1. 6000
This washing machine offers several washing modes and the selection
of high, middle or low water-level. It has a self-circulating fiber and a
new-type selection of strong, medium or weak water flow, with two ways
of rinse, for water-filling or water-accumulating.
This type of washing machine adopts advanced water-filling and
spinning functions to save rinsing time and water.
It’s out-case is made of aluminum alloy to prevent rust.
2. 5200
New-type, generating lotus-leaf-like big agitating waves which can
prevent fabrics from twining with one another, for enhanced cleanliness.
Adopts up-to-date built-in instantaneous loop and overtime safety to
enhance dependability and safety of use. It can automatically buzz an
alarm stop the machine as soon as washing ends.
Adopts advanced water-filling and spinning functions to save rising
time and water.
It’s out-case is made of aluminum alloy to prevent rust.

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7.1.1.5 Microwave Oven:
PEL Electrical Home Appliances have always been well received in Market. The
company has started microwave oven three years back.
To have competitive Product range PEL launched Microwave Oven with PEL
Brand and Warranty which is well accepted by the large audience.
PEL is currently producing two divisions of Microwave ovens. I.e. silver line
Ovens and Microwave Ovens. And each division contains further models
1. Available Series
a) Microwave PMO 20
b) Microwave PMO 30SL
c) Microwave PMO 26SL
7.1.2 FEATURES
1. Super Quiet Operation
The new, elegant slim line indoor unit with three fan speeds and sir
discharger is designed for super quiet operation.
2. Computer Precision
The built-in computer responds to very small changes in temperature
and adjusts all controls continuously to keep a stable level of comfort.
3. Even Air Distribution
Our new generation of products provide much better comfort by
addressing the needs of the individual in terms of even air distribution
throughout the conditioned space.
4. Stage Cooling
Provides more options to run the unit in desired conditions.

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5. Easily Accessible Filter
The filter can be taken out for cleaning without removing the front
grill and slides back into its place. The filter is washable.
6. Bigger and Better Condenser Coil
A bigger condenser coil is used for better cooling and durability of the
compressor. Coils are made of high grade copper tube and aluminum fin.
7. Progressive Products, Absolute Guarantee
For complete customer satisfaction, the Carrier window air-
conditioned is backed by a 5-year compressor and 1 year parts guarantee.
8. Automatic Air Sweep
The indoor unit is equipped with adjustable air supply louvers and
automatic air sweep to set the cool air in the desired direction.
9. Indoor Air Quality
Carrier is a company that cares for indoor Air Quality and therefore
the new unit's air filters are designed for easy removal for cleaning as and
when required.
10. Infrared Remote Control
An infrared remote control with programmable timer and LCD display
is supplied as standard. This allows the user to select the required features
with ease from a distance.
The carrier name on every units is your assurance of international
quality. Carrier split air conditioners are supported by a reliable 3-year
compressor and 1 year parts guarantee.
11. Single and Twin Door Deepfreezers

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CRYSTAL deepfreezers are available as single door and with door
units. All CRYSTAL deepfreezer models offer a choice of desirable colors
like swan cream and white and beige new, white grey and dark grey.
12. Modern Rounded Look
The rounded shape on the inside and the outside of the deepfreezer not
only gives it a modern look but also provides more contact area between the
inner cabinet and the copper pipe, thus increasing the performance of the
freezer.
13. Even Refrigerator
The cooling coil winds around the freezer compartment on all sides,
thus ensuring perfectly uniform and constant low temperature throughout the
freezing compartment. This specialized coil is made of copper and is
absolutely corrosion-proof.
14. Rust & Scratch Proof
CRYSTAL deepfreezers are available with inner lining made of either
aluminum sheets or new SS sheets. They have a rust and scratch proof surface
and a stainless and odorless lining.
15. Easily Opened Lid
CRYSTAL uses a special rubber gasket with six small holes,
maintaining the exact temperature inside and enabling the lid to open easily.
16. Special Features
New handle with strong grip. Increased pipe size to reduce compressor
head pressure, greater thickness of the foam (50 mm), improved freezer
serviceability, thermoformed top frame instead of extrusion, new light cover
design, rounded hinge cover and specially designed wheels which make the
movement of the deepfreezer easy.

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17. New Compressor
CRYSTAL deepfreezer is powered by the world's No.1 compressor,
Danfoss (Germany). This low-noise compressor is extremely silent and well
prepared to face Pakistani electrical outages. It remains functional on
voltages as low as 170 volts and has an upper limit of 250 volts.
7.1.3 Competitor of PEL Appliances
1. Air Conditioners:
• General Ltd.
• Daiken
• Waves
• National
• Dawlance
• Sharp
• LG
2. Refrigerator:
• Dawlance
• Phillips
• Sharp
• Samsung
• LG
3. Deep Freezer
• Waves
• Candy
• Dawlance

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4. Television:
• Sony
• Phillips
• Panasonic
7.1.3.1 Market Share & Major Competitors:
While the PEL has sliced its market share about 30%.
7.1.4 PRODUCTS OF POWER DIVISION
PEL is among the pioneers of Electrical Capital Goods and has been serving the
Power utilities, Industries, individual customers, housing and commercial projects by
providing cost effective solutions.
PEL is now technology forerunner and market leader in providing new products
and services to meet the challenges and technology intensive needs of its customers.
The company aims to meet its competitive edge simultaneously keep striving to
improve it further by continuous R&D, creating new
Knowledge and adopting global developments in technology and product design.
High standards of quality and customer care are hallmark of PEL Corporate philosophy.
PEL is an ISO certified company.
All these electrical goods are manufactured under strict quality control and in
accordance with international standards.
Company Market Share
Dawlance 50.5%
Haier 7 %
Orient 2%
Waves 7.5%
Others including (Mitsubishi, SG, Super Asia etc.) 3%

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PEL is one of the major electrical equipment suppliers to Water and Power
Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC),
which are the largest power utilities in Pakistan.
Over the years, PEL electrical equipment has been used in numerous power
projects of national importance within Pakistan. PEL has the privilege of getting its
equipment approved and certified by well-reputed international consultants
Such as:
• Preece, Cardew and Rider, England
• Harza Engineering Company, USA
• Snam Progeti, Italy
• Societe Dumezm, France
• Miner & Miner International Inc. USA
• Ensa, France
In spite of stiff competition from emerging local and multinational brands, PEL
Group's appliances and electrical equipment have remained in the spotlight due to
constant innovation. Strategic partnership with multinationals of repute have enabled
the PEL Group to incorporate new technologies into existing product ranges, thus giving
the Pakistani market access to innovative, affordable and quality products.
7.1.4.1 Power Transformers:
Extensive Experience and success in manufacturing distribution transformer led
to establishment of Power Transformer Division in 2005. Since its birth this division
has produced Transformers of rating 31/40 MVA, 20/26 MVA and 10/13 MVA FOR
132KV level.

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To meet the international competence PEL combined its technical expertise with
GANZ, renowned and experienced Hungarian Transformer Manufacturer of over 150
years of history and now continues to cooperate with their technical partners for new
development.
PEL is also exporting Power
Transformers to International
customers for their special
requirements and specifications.
Extensive experience and
success in manufacturing
distribution transformers led to the
establishment of power transformer
division in 2005. Since its birth the
division has produced transformers
of ratings 31/40 MVA, 20/26 MVA, and10/13 MVA for ratings up to 132 KV.
In order to provide its customers the best of technology and products of
international competence PEL has combined its technical expertise with GANZ, a
renowned and experienced Hungarian transformer manufacturer. PEL is also exporting
Power Transformer to International customers for their special requirements and
specifications. PEL power transformers are equipped with best transformer accessories
like OLTC from MR (Germany), High Voltage Bushing from PASSONI & VILLA
(Italy), Buchholz Relay from EMB (Germany),insulation material from WEIDMANN
(Switzerland), silicon steel from THYSSEN (Germany), and cooling fans from
SCHORMANN (Germany). Material of the windings is usually 99.99% pure
electrolytic copper. Multiple conductors as well as CTC are used in winding. The
magnetic cores are manufactured from cold rolled grain oriented (CRGO) steel sheets.
A robust clamping structure, jointing technique and cutting and mitering of laminations
ensure low no load losses. The steel sheets in the core limbs and in the yokes are
Others
15%
Elmatec
9%
Siemens
36%
PEL
40%
Market Share:
Transformers
Others Elmatec Siemens PEL

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clamped together by glass-epoxy bands. Tank is constructed with boiler steel plates
welded together and a cover plate bolted on top. Strength is ensured by stiffeners.
Earthing terminals are attached to both sides of tank. Measuring Instruments are
installed on cover plate. Surface protection is done by the process of sand blasting and
by applying weather resistant paint. Tap changers are in accordance with IEC standards.
Usually motorized On-Load tap changers are provided for voltage regulation. Off- Load
tap changers can be installed on request. The diverter switch is placed in hermetically
sealed oil filled chamber in order to avoid contamination of oil in main tank.
7.1.4.2 EPC Contracting:
PEL EPC Division was formally established in 2006 and delivers Custom made
designed solutions in following areas.
With restructuring of power sector
in Pakistan and increase in economic,
commercial and industrial activity, more
and more power utilities and other customers
demanded high value packaged solutions for
their transmission system and enterprise electrification requirements. To meet this
demand PEL established an Engineering Procurement and Construction division. PEL
EPC Division consists of human resource with high academic qualifications and
experience of local as well as global market.
The EPC division delivers custom designed and built solutions in following
areas.
✓ 132 & 220 KV Grid Station for Power Utility Companies.
✓ 132 and 11 KV Substations for Commercial & Industrial Customers.
✓ Electrification of housing Projects and Industrial Parks.
✓ Integration of private captive power generation plants into utility
network for sale of their surplus power to utility companies.

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Services include:
✓ Engineering
✓ Project Management
✓ Project Execution
✓ Turnkey or customized projects
✓ Technical support and solution
Our turnkey power supply system’s give you unique value added services. In
addition to employing its own resources, PEL keeps a well-managed supply chain of
internationally renowned manufacturers and service providers to complete the project
scope. As such, the end product is a reliable, high quality and price-wise most
optimum solution.
1. Projects completed
• 132/11kV AIS Satellite Town substation, Rawalpindi Pakistan
• 132/11kV GIS DHA substation Islamabad-Pakistan
• 132/11kV AIS Ghuinke substation, Sialkot-Pakistan
• 132/11kV AIS Kamra substation, Attock-Pakistan
• External Electrification of Askari Villas Phase-II, Lahore-Pakistan
• Kohinoor City Faisalabad (Electrification & Networking)
• Supply, supervision of installation and testing of MV and LV
equipment for external electrification of DHA Phase-6 Lahore-
Pakistan
• External Electrification of National University of Science &
Technology (NUST) Islamabad-Pakistan
• External electrification of Iqbal Avenue housing society Lahore-
Pakistan
2. Projects under construction
• 132/11kV GIS Sheranwala Gate substation, Lahore-Pakistan
• 220kV Dadu grid station Extension Dadu – Pakistan

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• 132/11kV FIEDMC AIS substation Faisalabad-Pakistan
• Electrification of 4 small towns (Mangla Dam raising project)
• Underground external electrification of DHA Ph-8 Lahore Pakistan
• External electrification of House Building Finance Corporation
Lahore-Pakistan
• External electrification of DHA Homes Complex Lahore-Pakistan
7.1.4.3 Energy Meter:
PEL Single Phase and
Three Phase Static Meters are
manufactured as per Specifications
of Utility Companies licensed
from ABB USA and its quality is
certified by KEMA Laboratories.
PEL Energy Meter Plant is
ISO9002 Certified and its product
meets the standards of WAPDA &
KESC.
PEL is currently producing
the following type of energy meters:
• Single Phase Static Energy Meters
• Single Phase Electromechanical Energy Meters
• Poly Phase Static Energy Meters
• Poly Phase Electromechanical Energy Meters
Escort
30%
PEL
35%
Syed Bhais
35%
Market Share: Energy Meters
Escort PEL Syed Bhais

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7.1.4.4 Switch Gears:
Switch Gear Division
Products include MV&LV.
Switch Gears, MV Metal Clad
switch gear cubicles, MV Pad
Mounted Transformers, Kiosk
Type Compact substations, LV
Distribution Panels, PFI Plant,
Motor control center & Bus Tie
Duct.
The switchgears are basically the panels through which the other electric
equipment’s can be handled. They are mostly used in industries. PEL is currently
producing switchgears for MV equipment’s and LV equipment’s.
7.1.4.5 Distribution Transformers:
Distribution Transformers range includes oil impressed core type transformers,
dry type transformers and auto transformers of Voltage. UP TO 33 KV ratings from
10KVA to 10 MVA.
PEL established a state of the art transformer manufacturing facility to meet the
global quality standards in Technical assistance from Pauwels, Belgium.
The transformers have been tested and certified for impulse voltage and Short
Circuits Tests from Short Circuit Laboratory, KEMA (Holland) and HVSC Lab,
RAWAT (Pakistan).
PEL made distribution transformers’ range includes
❖ Oil immersed core type transformers
❖ Dry type (VP impregnated) transformers
PEL
33%
Siemens
30%
Alsthom
25%
Others
12%
Market Share: Switchgear
PEL Siemens Alsthom Others

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❖ Auto transformers.
These transformers are tailor made for various ratings. IEC or national standards
are followed. We offer distribution transformers voltage up to 33 kV and ratings up to
30 MVA.PEL offer transformer tanks with corrugated walls, detachable radiators and
tubular arrangement. The corrugated tanks have a better cooling efficiency, since the
fins are expandable. Tanks are hermetically sealed where possible. In order to meet
sophisticated requirements of customers PEL has also started manufacturing
transformers with foil winding. Foil winding efficiently uses space which results in size
reduction. It has better heat dissipation and also increases potential to withstand short
circuit current. PEL transformers are available for various applications:
• Distribution Transformers (Pole /Pad Mounted)
• Auto Transformers
• Furnace Transformers
• Welding Transformers
• Chokes for furnace Transformers
• Any other special requirement
1. Dry Type Transformer Introduction
The demand of electricity in Pakistan has been increasing rapidly in the last few
years. There is a mushroom growth in the high rise buildings, shopping areas, CNG and
petrol stations, residential colonies, etc. Due to the scarcity of space in cities, installation
of conventional oil type transformers in such congested and populated areas is always
a big safety risk. The developed as well as many developing countries are installing dry
type transformers as a solution for ensuring safety in such scenarios.
The Vacuum Pressure Impregnated transformers not only offers in-build safety
feature but there are many other advantages of using these transformers such as
improved reliability, reduced losses, minimal maintenance, enhanced overloading
capability etc.

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7.1.5 THE MAIN CUSTOMERS OF PEL
The customers of PEL can be categorized in two categories i.e. home consumers
and industrial consumers. Home consumers are the common individuals who mostly
purchase the home appliances.
The industrial consumers are as follows:
❖ LESCO
❖ GEPCO
❖ FESCO
❖ IESCO
❖ ESCO
❖ MEPCO
❖ HESCO
❖ QESCO
❖ KESC
❖ AJK Electricity Department
The buyers other than these electric supply companies are the independently
working companies.
7.1.6 MAJOR COMPETITORS
Appliances Division Power division
Dawlance Seimens
Waves Climax
Haier Transfab
Mitsubishi J&P
Orient Ab ampere
Panasonic Ahmad & companies

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Singer Feco
Areva
Sb electronic
Fico
Tariq Electric
Microtech
Escort
7.2 PLACE: (DISTRIBUTION)
The distribution set-up of PEL has undergone many changes.
In 1988 the set up was very simple. There were only four sale officers who use
to manage area offices in Multan, Rawalpindi, Lahore and Faisalabad.
1989 the company decided to form an effective dealership network. The
company had its dealers in all major cities.
In 1993 management plane to form a region to further improve the distribution
system. The whole country was divided into four major region. 1996 it is further
improve by increasing region from 4 to 6.
Distribution system of PEL is designed in such a way as to cover the whole
market and ensure timely delivery of products to the consumers. Details of their
distribution setup is given below.
Mostly Producer use intermediaries to bring their products to market.Â .They try
to forge a distribution channel a set of inter dependent organizations involves in the
process of making a product or service available for use or consumption by the
consumer or business user.
Channel Levels:

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Distribution Channels can be described by the numbers of channel levels
involved.Â.
PEL uses both of the two major Marketing channels.
1. Direct Marketing Channel:
It's a marketing channel that has a no intermediary levels.Â Â PEL's
power division uses this type of channels.Â Its major clients are large
organizations and not the end user.Â So people from these organization
directly contact PEL's marketing department of power division when tenders
are flooded, design, specification and price are discussed.Â
2. Indirect Marketing Channel:
It is a marketing channel containing one or more intermediary levels.Â .PEL's
appliances division works this way.Â. These products are sold through authorized
dealer shops or PEL's own outlets.
It is a channel with one or more intermediary level. The general public can buy
PEL products through authorized dealers.
PEL has been network; Regional sales force is connected with dealer. Core
customer are directly attached. Dealers are also visit and analyze distribution system.
During the selection of dealers for PEL, they consider
• Worthiness of dealers
• Potential demand.
They offer them incentive, schemes for cost sales and always adopt policies in
response to competitors.

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7.2.1 APPLIANCE DIVISION:
PEL has got a very effective distribution system that ensures the widespread
supply of company's product throughout the country for the sake of proper management.
7.2.1.1 SEGMENTATION
1. GEOGRAPHIC SEGMENTATION
Segmentation is done on the basis of geography. Pakistan is divided
into two zones;
• North,
• South.
a) NORTH ZONE
North Zone includes:-
• Punjab
• NWFP
b) SOUTH ZONE
South zone includes:
• This zone Sind
• Baluchistan
2. REGIONS
The zones have been further divided in to six different regions.
• Karachi
• Multan
• Lahore
• Gujranwala
• Rawalpindi
• Faisal-Abad

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7.2.1.2 DISTRIBUTION PROCESS AT PEL APPLIANCE
The distribution process at PEL Appliance is being looked after by the following
personal.
1. National Manager Sales (NMS)
National Manager Sales (NMS) mainly responsible for watching the
functioning of all Regional Managers Sales, Area Sales Officer and Sales
Office at the National Level.
2. Regional Manager Sales (RMS)
Managers Sales (RMS) controls sales in his specific region and is the
connecting link of all area offices currently the company has two controlling
operation in Multan Region.
3. Area Sales Officers (ASO)
Area sales officer is responsible for making contacts with dealers
product display and looking orders in his specific area.Â .The company has
at present seven ASO's Managers, operations in Rawalpindi, Gujranwala,
Multan, Bahawalpur, Lahore etc.
4. Sales Officers (SO)
Sales officer (SO) looks after the sale operation in particular city.
Currently there are four sales officers two in Lahore, one in Faisalabad and
Gujranwala each.
5. Assistant Manager Sales (ASM)
Assistant Manager Sales (ASM) looks after the proper functions of
sales in Southern Zone.

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7.2.2 POWER DIVISION:
For Power product there are no particular personal to deal with the distribution.Â
Sales procedure for power division is as follow.
7.2.2.1 Sales Procedure
Since the major buyer of PEL in Power Product is Government Sector, the sales
procedure of Power/marketing department is quite different from Appliance/Marketing
Department.
The main steps involved in sales/marketing procedure of Power Division are:
1. Bid Submission
2. Bid opening
3. Bid Evaluation
4. Letter of Intent (LOI)
5. Billing
7.3 PRICING
Prices are kept according to competitor level. PEL considers market should not
shrink because of pricing. Prices does not depend on seasons.
The prices are strictly observed by the Co e.g. A dealer sells a product below the
price given by company to any customer then the company can fine dealer up to 5000
Rs. and can cancel his dealership. The company has appointed various "Informers" who
constantly visit and check that company price is being maintained. These people inform
the company if any irregularities in pricing and then company takes appropriate action
against dealers. Pricing is important to control sales. Pricing depends upon market
conditions. Marketing Manager is independent in his region but has to get approval
from company for giving more incentives to dealers. The dealers play important role in
sales.

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7.3.1 PRICE Procedure:
7.3.1.1 Power Division Pricing Procedure:
1. First the tender is received which shows the demand of the product.
2. It is send to the production department.
3. They make calculations about material cost, labour costs and Factory
overhead, further taxes and duties are also calculated.
4. Investment is calculated
5. Then gross margin is added.
6. Gross Margin= Labour Cost + FOH + Profit+ Financial cost +
Miscellaneous costÂ
7. Financial cost is found out
8. Term and conditions may be different in some cases.
7.3.1.2 Appliances Division Price Procedures
1. Sales tax, Octopi, excise duty is calculated above the cost of production.
2. There is also a pricing trend depending on the models most demanded.
3. Price is charged according to demand.
4. Consumer product forces also show seasonal, variation i.e., their prices
raise during wedding season and before Eid-ul-Azha and Â Eid-ul-Fitar.
7.4 PROMOTION MIX
Advertisement performs key objectives in any company or an organization
growth. This is quiet necessary part of an organization. In past, there were no such
resources to convey our messages to others but with the passage of time everything
changed. Today, we can express our demands and needs. Presently, there many mean
to promote a product through internet, media, advertisement etc. Pak Electron Limited
uses advertising personal selling, sales promotion and public relations to pursue its
advertising and marketing objectives.

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7.4.1 Appliances Division:
• To achieve the sales objectives
• To increase recall
• To restore the message in the customer mind.
PEL has different Advertising messages for different products.
1. MESSAGE FOR REFRIGERATOR
"All New PEL, All New Technology, All New Style".
2. MESSAGE FOR AIRCONDITIONER
"Every Second Air-conditioner sold in Pakistan is PEL, so we are # 1.
7.4.1.1 Media for Advertising
There are three types of media on which advertisement are given:
1. Electronic Media
In the electronic media, there are many entertainments, business
channels where PEL Company do advertisement. Some of the channels are
• PTV
• ARY
• Geo TV
• STN
• PTV World
2. Print Media

85
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Print media is also very important in advertisement field. Today, there
are many newspapers, magazines and periodicals available where PEL do
advertisement.
a) National Newspaper
E.g. Jang, News, Dawn and etc.
b) Magazines
E.g. Herald, News line, Banking Business.
3. Out-Door Media
Boarding
a) Neon Signs
b) Tri Visions
PEL uses all these above mentioned Media Activities to promote its products.
7.4.1.2 Incentive Schemes
For attracting dealers and potential customers, Pak Electron Limited PEL
use the "Pull and Push Strategy".
PEL don't have too many outlets but they do major selling through the
dealers and retailers, some of the incentives given to the dealers are:
Rs.400 set if dealer sells a certain amount of sets in six month.
Peel gave a car to the dealers if they achieve the set target.
1. Air Conditioners:
Against the sale of 50 air conditioners discount is Rs.200/unit.

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Against the sale of 50 air conditioners discount is Rs.400/unit.
2. Refrigerator:
For sale of 150 or more refrigerators, the dealer is awarded with a
Dubai Tour.
All above schemes are changing according to period
7.4.1.3 CUSTOMER
For customer PEL gives some additional gifts with products i.e. Wall Clock,
Watches.
7.4.1.4 PUBLIC RELATIONING
In promotion mix PEL considers value of public relations because it is:
• Quite Inexpensive
• Public Relations have more Creditability then public relations
• Public relations can increase sales i.e. sponsor ships of cricket
matches.

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8 BUSINESS MODEL
“Our business model is at the heart of our strategy. It enables us to
prosper and positions us well to deliver continued growth”
Figure 4 Business Model
KEY
ASSETS
Sustainability
Growth
Drivers

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