The document provides information about Siemens Energy and Automation Ltd in Goa, India. It discusses the company's history in India dating back to 1867. It describes the objectives and methodology of the report, which is based on a six-week internship at Siemens' logistics department. The report summarizes that the internship provided experience in the tasks and operations of the logistics department, and an understanding of how SAP software and the logistics department help the company function effectively.

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Vidya Vikas Mandal`s
SHREE DAMODAR COLLEGE OF COMMERCE AND
ECONOMICS
REPORT ON SIEMENS ENERGY AND
AUTOMATION LTD.
DONE BY
PIANCA GRACIAS
WAYNE FERNANDES
GUIDED BY
Ms.Swati Bhat
(ASST. PROF. IN MANAGEMENT)
THIRD YEAR BACHELOR IN BUSINESS ADMINISTRATION
(FINANCIAL SERVICES)
2015-2016
INTERNSHIP VENUE: SIEMENS ENERGY AND AUTOMATION
LTD. GOA

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TABLE OF CONTENTS
CHAPTER
NO.
CONTENTS PAGE NO.
1
INTRODUCTION
1.1
ABOUT SIEMENS INDIA LTD. 2-3
1.2
OBJECTIVES OF THE STUDY 3
1.3 RESEARCH METHODOLOGY 3
1.4 SCOPE OF THE STUDY 4
REPORT SUMMARY 5
2
SAP AND LOGISTICS
2.1
INTRODUCTION TO SAP
SOFTWARE
6-8
2.2
WORKING OF THE LOGISTICS
DEPARTMENT
8-12
3
INTERNSHIP EXPERINCE AND
COMPANY ANALYSIS
3.1
DAILY TASKS PERFORMED
13-15
3.2
COMPANY SWOT ANALYSIS
16
3.3 CURRENT MARKET SCENERIO 17-18
CONCLUSION

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SIEMENS INDIA LTD.
INTRODUCTION
1.1 ABOUT THE COMPANY
Siemens in India has a history dating back to 1867 when our founder Werner von Siemens took a
bold decision to build a telegraph line from London to Kolkata. This happened within 20 years of
the company’s foundation in 1847.
The line, stretching for 11,000 kilometers, was one of the fastest and most reliable telegraph
links in the world, and passed through four different sovereign territories and the Black Sea. The
line was completed in 1870, overcoming financial, technical and logistical challenges. A
message could be transmitted in 28 minutes instead of the 30 days that mail took between India
and England.
Siemens set up a branch in India as early as 1922, in Mumbai and Kolkata. Though the
company’s assets were confiscated during World War II as enemy property forcing it to shut
operations, Siemens re-entered India after the war. It started operations as the “Siemens
Division” of “Protos Engineering", a local contracting company. Siemens was engaged in sales
and service (mostly repair and assembly) of our own brand of switchgear and switchboards. Its
first workshop was located under the bridge of, what is today, the Mahalaxmi Railway Station in
Mumbai.
In 1957, Siemens was incorporated as a company under the Indian Companies Act as Siemens
Engineering & Manufacturing Co. of India Pvt. Ltd. In 1961, Siemens became a public limited
company with restricted external shareholding and was listed in the Bombay Stock Exchange a
decade later.A factory was set up in 1957 in Worli to manufacture switchboards and another was
set up in 1959 for medical equipment. Production of motors commenced at Kalwa in 1966 and
another switchboard factory was set up in Nashik in 1981.
Siemens Ltd. Started operations at two greenfield factories in Goa, with an investment of around
Rs. 200 crores. The factories are equipped with state-of-the-art manufacturing equipment using
lean processes similar to Siemens’ award-winning factory at Berlin.

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SIEMENS ENERGY AND AUTOMATION LTD. PLANT ,GOA
Siemens Ltd. Started operations at two greenfield factories in Goa, with an investment of around
Rs. 200 crores. The factories are equipped with state-of-the-art manufacturing equipment using
lean processes similar to Siemens’ award-winning factory at Berlin.
The factories will produce a range of products for power distribution of industries, utilities,
power plants, infrastructure and cities. The products include medium voltage gas-insulated
switchgears of up to 36kV, primary distribution switchgears, locally-developed products like
ring main units (RMU) and compact substations (CSS) for power distribution, numerical
protection relays, telecontrol devices for smart grids, electromechanical auxiliary and trip relays.
The factories will have their own in-house Research and Development units.
Today, Siemens in India has a sales and service network that spans across the entire country, 23
manufacturing plants, eight centers of competence and 11 R&D centers.
1.2 OBJECTIVESOF THE STUDY
 To learn and study about SAP software, its benefits and working of the logistics
department.
 To learn and gain knowledge from the internship at Siemens.
1.3 RESEARCHMETHODOLOGY
The research methods used for the study were through primary sources as well as secondary
sources.

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Information was provided by a personal conversation with the Logistics Manager and the Quality
Management team.
Information was also obtained through secondary sources i.e. articles and online research papers
1.4 SCOPE OF STUDY
This study will provide students and future interns with insights into of a multinational company
and provide them ideas for future research, helping them to develop a reliable knowledge base
about the organization and also prepare people with the expertise, commitment, and skills for
management, marketing, and operations positions in these types of organizations.
This report also provides a brief current market scenario of the company to know what are the
current plans and issues of the company and how the company is doing in the global markets.

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REPORT SUMMARY
Our summer internship in Siemens energy and automation Ltd. Goa began on 11th May
2015 and ended on 20th June 2015. The timings of the internship were from 8 am to 5:30
pm.
Six weeks of internship at Siemens gave us experience and knowledge about the working
environment of the company and how it functions. Since our internship was specifically
done in the logistics department, we have gained deeper knowledge about logistics.
The department introduced us to a range of tasks to work on such as Data entry in
accounting books and SAP system, Invoice matching, Quality incoming, Material parts
evaluation, Inventory evaluation, Material number evaluation, Segregating PCBs (printed
circuit boards), Labeling PCBs, Creation of material numbers, Quantity verification,
Finding material location, Data entry of exports and imports, Clearing MRB (material
rejection block), Filing incoming inspection data, Clearing inspection lots and line
clearing lots, Labeling BOMs (bill of material), Scanning material barcodes, Creation of
delivery notes, transfer orders and purchase orders, Quality Management module entry,
Maintaining inspection records. Performing all of these tasks gave an experience of the
work done in the logistics department and how it helps the organization to function.

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CHAPTER – 2 SAP AND THE LOGISTICS
DEPARTMENT
The EA factory at Verna Goa produces Products and Systems. The Products manufactured at
Siemens EA factory at Verna Goa are Relays (Devices), Sockets, Test Switches and PCBAs. The
Systems manufactured are Panels.
Siemens EA Goa manufacturing facility includes PCB assembly (SMT and THT), Device
assembly and complete inspection and testing of all PCBS’s / Devices to ensure the products
meets specification.
The factory manufactures Energy Automation Devices for Smart Grid. The products are
Protection Relays, RTUs (Remote Terminal Units), CRP (Control Relay Panel), Test Plugs and
Test Switches.
Siemens EA plant has following departments:
 Business Administration – Commercial
 Supply Chain Management-SCM
 Logistics
 Production
 R&D
 Infra & Maintenance
 PLM – Product Lifecycle Management
 Quality
 HR
2.1 SAP SOFTWARE
SAP software is a German multinational software known for helping enterprises in accounting
management and resource planning. The software allows organizations to manage business
operations, and usually refers to set of modular applications that collect and integrate data from
different aspects of the business.
2.1.1 Business Benefits of SAP
 Improves Alignment of Strategies and Operations
 Improves Productivity and Insight

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 Reduces Costs through Increased Flexibility
 Supports changing Industry Requirements
 Reduces Risks
 Improves Financial Management and Corporate Governance
 Optimize IT spending
 Provide immediate access to enterprise information
2.1.2 How SAP helps Siemens?
SAP paved a path to the automation of end to end business processes at Siemens, thereby
reducing operational costs and simplifying, optimizing and innovating business across entire
value chain.
SAP benefits:
 Integrates Siemen’s finance, purchasing, material functions and planning and
maintenance function.
 Affordable and Reliable
 Flexible to support Siemens specific business functions.
 Increases efficiency in Operations
 Promotes cooperation and healthy interaction between different departments.
 Common database increases information sharing
 Provides User friendly interface to the Siemens end user
 Automation of labor-intensive transaction possessing. The skilled finance professionals
can provide greater value to Siemens – through operational insights, strategic actions for
improved performance.
 Manages logistics business functions
 Optimizes physical flow of materials
 Simplifies Order to Cash cycle
 Helps to respond faster and reach further
 Curbs the integration cost over a long period by deploying the components required for
the business at the time .

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Major Business challenges today are globalization, compresses business cycle, increased
customer expectations, goals of increased productivity. SAP helps Siemens boosts performance
by achieving major goals like:
 Simplify reporting
 Improve Business processes
 Increase relationship with Suppliers(Vendors of Materials) and Customers
 Speed up operations
 Optimize resources
 Deliver premium service to customers
 Enhance customer satisfaction
 Reduces Costs through Increased Flexibility
 Reduces Risks
2.2 Working of the Logistics department
2.2.1 What is Logistics?
Logistics is considered to be the complete process involving planning, managing and controlling
the flow of goods and services, information, real-time data and human resources from the point
of origin to the point of destination. There is hardly any manufacturing or marketing activity that
can be achieved without the support of an effective logistical department.
The logistics process consists of the process of integration of several aspects such as material
handling, warehousing, information, transportation, packaging and inventory. The primary duty
of an effective logistics system is to ensure geographical repositioning of unfinished goods, and
it is also concerned with the finished inventories of the organization being at the required place at
the lowest possible cost.
2.2.2 Functions of the logistics department
The logistics department is entrusted with the responsibilities of ensuring that the entire process
of logistics is maintained and developed in accordance with the goals of the business at an
economical cost. The tasks of the logistics department involve storage, distribution,
warehousing, movement of goods from one place to another (internally or externally), tracking

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and delivery of goods. It includes a complete process of planning, managing, controlling and
coordination to make sure that the goods reach the right place, at the right time, for the right cost
and in a right condition. The various tasks performed by the department may be summarized as
follows:
1. Ensuring all the requirements of the customers are met on time in an efficient and safe
manner.
2. To coordinate with third party logistics (3PLs).
3. To ensure that there is a safe and timely dispatch of goods.
4. To draft plans, policies and procedures for successful implementation of logistics system.
5. To ensure that the business goals of the organization are in synchronization with logistics
system.
6. To create and maintain customer support.
7. To maintain coordination with vendors, service providers and transport carriers.
8. To ensure that no fraud is committed.
9. To ensure timely supply and payment of goods and reduce inventories.
The department also performs numerous other tasks, namely:
1. Customer service management process - The department ensures that the goods are
reached on time, in a safe condition and at the right place. It also serves as a middleman
between organization, vendors and carriers for tracking down the geographical location
of the goods and thereby provide customer support.
2. Procurement process - Strategic plans are developed by the department to support
development of fresh product and manufacturing flow management. This helps in
bringing raw materials or semi-finished goods to the premises of the organization in a
safe and proper condition at an economical cost. This also involves interactions with
3PLs. The department is also responsible for coordination with suppliers with regard to
scheduling, hedging and timely delivery.
3. Physical distribution - This process is concerned with the movement of finished goods
to reach the point of destination. The department is responsible for the selection of the
best mode of transportation while delivering the goods to the place of destination.

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Thus it can be rightly concluded that the logistics department does play an important role
in ensuring the delivery of goods and is therefore rightly considered as an integral part of
a modern-day organization.
2.2.3 Material Management Cycle
Material Master
The material master contains all data required to define and manage material. It integrates
data from engineering, manufacturing, sales and distribution, purchasing, accounting, and
other departments.
The material master is used as a source of data for processing throughout the material
management cycle.

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The following steps decribe the process of material master :-
1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials planning
and control. (The regular checking of stock levels of materials defined by master records and
forecasting on the basis of past usage.) You can enter purchase requisitions yourself, or they can
be generated automatically by the materials planning and control system.
2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past orders
and existing longer-term purchase agreements. This speeds the process of creating requests for
quotation , which can be sent to vendors electronically via SAP, if desired.
3. Vendor Selection
The system is capable of simulating pricing scenarios, allowing you to compare a number of
different quotations. Rejection letters can be sent automatically.
4. Purchase Order Processing
The Purchasing system adopts information from the requisition and the quotation to help you
create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the
system generate them automatically. Vendor scheduling agreements and contracts (in the SAP
System, types of longer-term purchase agreement) are also supported.
5. Purchase Order Follow-Up
The system checks the reminder periods you have specified and – if necessary – automatically
prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date
status of all purchase requisitions, quotations, and purchase orders.

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6. Goods Receiving and Inventory Management
Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number.
By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered
goods.
7. Invoice verification
The system supports the checking and matching of invoices. The accounts payable clerk is
notified of quantity and price variances because the system has access to PO and goods receipt
data. This speeds the process of auditing and clearing invoices for payment.

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CHAPTER 3 – INTERNSHIP EXPERIENCE
AND COMPANY ANALYSIS
INTERNSHIP EXPERIENCE
3.1 DAILY TASKS PERFORMED DURING INTERNSHIP
 Data entry in accounting books and SAP system -SAP software known for helping
enterprises in accounting management and resource planning, it allows organizations to
manage business operations, and usually refers to set of modular applications that collect
and integrate data from different aspects of the business.
 Invoice matching – matching and arranging original export invoices with the duplicates
(copies).
 Quality incoming inspection – inspecting whether finished goods and material parts are
damaged or have to be sent back to seller.
 Material parts evaluation – checking any damage in material parts.
 Inventory evaluation – verifying whether inventory is stored at the designated places and
if the quantity matches with that entered in the system.
 Material number evaluation – checking of material number for any mistakes as it can
affect the identification and placement of the material.
 Segregating PCBs (printed circuit boards) – separating the damaged PCBs from the
non damaged PCBs.
 Labeling PCBs – labeling bar codes on PCBs.
 Creation of material numbers – creating material numbers in the SAP system for new
incoming material for identification and placement.
 Quantity verification – verifying whether material quantity matches the quantity entered
in the SAP system.
 Finding material location – verifying if material is stored according to their designated
location numbers in order to avoid identification confusion.

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 Data entry of exports and imports – entering data (details) of every material that is
being exported or imported.
 Clearing MRB (material rejection block) – clearing already checked damaged goods
from the MRB block.
 Filing incoming inspection data – filing and making data entry of incoming inspection
details.
 Clearing inspection lots and line clearing lots – clearing and moving out inspected
material lots.
 Labeling BOMs (bill of material) – labeling material bills on finished goods as per their
material number.
 Scanning material barcodes – scanning material barcodes for system entry and record
keeping.
 Creation of delivery notes, transfer orders and purchase orders – these are created in
order to keep records, to make safe deliveries and right deliveries.
 Quality Management module entry - With the functions of the Quality Management
(QM) module, you can implement the most important elements of a QM system, such as
Basic data (for example, material master, catalogs, inspection characteristics, inspection
methods and sampling procedures), Inspection planning, Sales and Distribution,
Inspection lot processing (inspection lot creation and inspection lot completion),
Recording results, Defects recording, Sample management, Dynamic modification etc.
 Maintaining inspection records – filing of inspection material records in books and
system.

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3.2 SWOT ANALYSIS
STRENGTHS
 Experienced business units
 Monetary assistance
 Existing distribution and sales network
 Barriers of market entry
 High growth rate
WEAKNESSES
 Future competition
 Competitive market
 Costs
 Tax structure
 Future profitability
OPPURTUNITIES
 Income level is at constant increase
 Growing demand
 New products and services
 New markets
 Global markets
THREATS
 Global economy
 Increase in labor costs
 Price changes
 External business risks
 Financial capacity
 Increasing costs

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3.3 CURRENT MARKET SCENARIO OF SIEMENS
3.3.1 HIKING PROFITS
The company follows October-September as its financial year. In the second quarter (January-
March) of the year 2014-15, profit after tax has risen about 36 percent i.e Rs 120 crore compared
to Rs 88.3 crore in December quarter.Total income from operations is likely to rise 0.2 percent
year-on-year to Rs 2,713 crore in the quarter ended March 2014. Operating profit (EBITDA)
may climb 18.5 percent on yearly basis to Rs 221 crore and margin may expand by 120 basis
points to 8.1 percent in the quarter gone by. Additionally, raw material imports stand at 55
percent of raw material cost and 82 percent of imports are from the network of Siemens AG.
Order inflows Over the last 4 quarters, Siemens maintained order inflows in the range of Rs
2,500-3,000 crore, barring the last quarter where order inflows slipped to Rs 2,089 crore.
3.3.2 FRONTIER PARTNER PROGRAM
Siemens, one of the world’s oldest and most respected companies that invests over $1 billion a
year for research in the US, is now embracing 3D printing–and a handful of the impressive
startup companies that are currently involved in offering substantial contributions–by inviting
them to join the Frontier Partner Program, managed by Siemens Technology to Business (TTB).
The startups can look forward to accessing numerous developmental resources that include a
year-long license to the comprehensive suite of Siemens project lifecycle management (PLM)
software–to be used for new product development in 3D printing, robotics, and more. Startup
partners will also be provided with mentors from Siemens and have access to others who are
using the software as well.

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The list of Frontier partners announced today are:
 Authentise – engineering software to securely stream 3D designs directly to printers
 Avante Technology – providing software that repairs and prepares 3D files for printing
 Matterfab – developing a metal 3D printer for industrial use
 MatterMachine – providing a platform enabling scalable bespoke manufacturing
 nTopology –building software to generate optimized 3D lattice structures
CONCLUSION
The internship at Siemens gave us experience and knowledge about the working environment of
the company and how it functions. Performing all of the given tasks gave an experience of the
work done in the logistics department and how it helps the organization to function and so we
have gained deeper knowledge about logistics.

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