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PROJECT ON SHARP ELECTRIC INDUSTRY

SESSION 2014-2017
GROUP MEMBERS:
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GIFI3MBAM00__

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SECTION: ____ (__)

MASTERS OF BUSINESS ADMINISTRATION

PUNJAB COLLEGE OF
COMMERCE
GUJRANWALA.
UNIVERSITY OF CENTRAL
PUNJAB
LAHORE, 2002.

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PROJECT ON SHARP ELECTRIC INDUSTRY

Submitted to Punjab College of Commerce, Gujranwala
In partial fulfillment of the requirement for second
semester.
___________of business administration (____)

Submitted
To
Prof. WASEEM ANJUM

PUNJAB COLLEGE OF COMMERCE

GUJRANWALA.
UNIVERSITY OF CENTRAL PUNJAB
LAHORE, 2002.

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

Signature of all group members:

..

..

..

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Dedication

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

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Acknowledgment

We
pay our humble gratitude, with humility andsubmission, to ALLAH, the Almig
hty,
the
Omniscient, the
Omnipotent
and the Omnipresent, who bestowed our potential to accomplish this task.
The completion of this issue is, mere, the blessing of ALLAH and Holy Prophet
Hazrat Muhammad (SAW).We feel honor to express our sincere gratitude to
our teacher for this Supervision, guidance and encouragement throughout
the project. We always found him very much alive, full of zeal, vitality and
intellectual curiosity.

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Table of Contents
Title

Page no:

Declaration

Dedication

Acknowledgement

Table Of Contents

Chapter # 1: Introduction, History and Management of company

Title

Page no:

1.1 Introduction of company

1.2 History of company

1.3 Range of products

1.4 Selected product

11

1.5 Mission statement

12

1.6 Vision statement

12

1.7 Challenges and Issues

13

1.8 Organization Structure

14

1.9 Organization hierarchy

15

1.10 Marketing

15

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16

1.11 Cost classification

Chapter # 2: Financial Statements

Title
2.1 Cost of goods manufactured statement
2.2 Calculation of actual manufacturing overhead
2.3 Cost of goods sold statement
2.4 Income statement

Chapter # 3: Detailed Study of IT Department

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Page no:
21
22
23
24

3.1 Background and analysis of the problem

25

3.2 Proposed solution to the Problem

25

3.3 General Recommendations

29

3.4 Conclusion

29

Reference

27

Company Introduction:
It is a partnership business started under partnership act 1932; it is a
manufacturing firm producing plastic products, such as plastic furniture,
home appliances (kitchen appliances) and spare parts of electronic
appliances.
It is a family business managed by 4 brothers, named as

Saeed Anwar (Director)

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Muhammad Idrees(Director)
Muhammad Shakeel Anwar(Director)
Muhammad Saleem(Director)

History of the firm:

Firstly sharp industry produced the electronic appliances like parts of
washing machine, and water pumps.
In early 1990s they started the production of plastic furniture such as chairs,
tables. They started to produce kneaded dough machine in 2000 and now it
is a very successful product in the market and is also exported to several
countries.

Partners:
All partners are brothers

Saeed Anwar
Muhammad Idrees
Muhammad Shakeel Anwar
Muhammad Saleem

Range of product:

Spare parts of electronic appliances

Plastic furniture
Kneaded dough machine

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

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Mission statement:
We make your home complete

Vision statement:
To provide the best quality product and values to the customer.

Core value:

Continuous improvement

The core value of the organization which is considered the spirit of sharp has
not changed over the past 3 decades. Those values which have made the
sharp a rising and growing group in the market from the past 3 decades.

Use of latest technology

Use of best skilled labors
Innovation
Team work
Best quality for home appliances

Decision making:
The decision is on one man show procedure, the decision making authority is
with the directors only no other person is allowed to make decisions.
Strategic structure:

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All sharp strategies are made by keeping in mind the mission statement of the
organization, which clearly reflects the companys objectives and goals.
After deciding their task/objectives, they start analyzing the outside environment to
analyze weather their strategies are applicable or not.
If it is applicable then they start evaluating about opportunities and threats that they
could face.
After analyzing internal factors, management starts working on allocating, analyzing
organization resources.
When they allocate resources, they start finding specific areas where they look and
point out their strengths.
Then they summarized all the internal and external data and decide how to execute
their strategies.

After having all the planning and collection of required data they start the execution of
their plans and every single employee try its best to make it successful.
And at the end the management starts evaluating the results either they are satisfactory
or not.

Challenges and issues:

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

Organizational structure:
ACTIVE &
MANAGIN
G
PARTNER
S
FINANCE
MANAGER

LABOUR

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SALES
MANAGER

CUSTOMER
S

Organizational structure:

Saeed
Anwar
(Director)

Muhammad
Shakeel
Anwar
(Director)

Head of
departm
ent

Manage
r

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Muhammad
Saleem(Direc
tor)

Head of
department

Manager

Manager

Muhammad
Idrees(Direct
or)

Head of
departme
nt

Manager

Managerial hierarchy:

Top
Management
Middle
Management
Supervisors

Marketing:

Product

Promoti
on

Marketi
ng

Price

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Place

Selected Product:
Kneaded dough machine.

Characteristics

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

Specification
Model name:

quick kneader

Model no:

QK- 1500

Rated voltage:

230V

Rate in put:

265 W

Rated frequency:

50 Hz

Capacity:

2.2Kg

Net weight:

11Kg

Gross weight:

12Kg

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Machine dimensions:

L 37cm. W 22.5cm. H 34 cm

Features:

Easy operation
See through cover
Food grade plastic material
Easy to clean
Saving time
Automatic timer switch
Plastic body rust proof safe and reliable
Small size, light weight
Heavy duty electric motor
Fine quality belt
No noise, free of vibration

Promotion
Promotion is the most important part of the business to promote it. Without
promotion it is not possible to sale the product, advertising is the best way to
run the business. Some conditions are written as follows.
They do promotion of their product s in different ways

Pamphlets
Broachers
Cable
Social Media(face book)
News papers

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COST CLASSIFICATION:

Direct Material :
Plastic
Direct labor:
Labor:
Skilled labor Salaries

Skilled persons salaries

Direct labor wages

Wages of labor

Manufacturing Cost:
Non-Manufacturing Cost:

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In-direct Material:

Stainless Steel
Silver
Indirect labor salaries

Copper

Indirect

Admin Salaries
Indirect labor salaries
Packing charges
Wasa charges
Selling expenses

Plastic
Stainless Steel
Cooper
Silver
Labor wages
Skilled person salaries
Electricity charges
Gas charges

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Details

Rs.

Selling price

5,000

Cost :
Direct material (65% of Total Cost )

2925

Direct labor
905
Manufacturing overhead (= 334,890/ 500)
670
Cost per unit
Gross profit per unit

Unit Product Cost & Gross profit:

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4500
500

Sharp Electric Industry

Cost of Goods Manufactured Statement
For the Month Ended..........
Details
Opening raw material

Amount Rs.
1,00,000

Add: purchases of raw material

14,00,000

= raw material available for use

15,00,000

Closing of raw material

Direct material used
Add: direct labor cost
= prime cost
Add: manufacturing overhead (actual)
= Total manufacturing cost
Add: Opening work in process
= cost of good to be manufactured

Amount Rs.

37,500
14,62,500
4,52,500
19,15,000
3,35,000
22,50,000
-----------22,50,000

Less: closing work in process

= cost of goods manufactured

---------22,50,000

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

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Calculation of Actual Manufacturing Overhead per Month:

Details

Amount
Rs.

Electricity charges
Departments)

(600001/3) (3

Gas charges
Departments)

(300001/3) (3

10,000

2110

Wasa (water charges)

14,667

Miscellaneous charges
(440001/3) (3 Departments)

25,000
50,000

Packing charges
Depreciation on machinery
(60,00,00010%1/12)
Depreciation of factory
Departments )

5,000
1,000

Maintenance charges

Indirect labor cost

20,000

22,222
185,000

(80,00,0001/12) (/3

Indirect material cost

Total manufacturing overhead cost

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335,000

Calculation of Actual Overhead Rate:

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

Sharp Industry
Cost Of Goods Sold Statement
For the Month Ended.

Details
Opening finish goods inventory

Amount Rs.
1,35,500

Add: Cost of goods manufactured

22,50,000

=Cost of goods available for sales

23,85,000

Less: Ending finish goods inventory

1,35
,500

Cost of goods sold

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22,50,000

Selling Price : 5,000 /unit

Sharp Electric Industry

Income Statement
For the Month Ended.
Details

Amount Rs.
(5,000500)

Sales

Less: cost of goods sold

= gross profit

25,00,000
(22,50,000)
2,50,000

Less: operating expenses

Selling expenses
22500
Administrative expense
100000

1,22,500
1,28,000

=Net Profit

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Background and analysis of the problem

No Computerized data of Accounting:
The main problem of the Sharp Industry is using the manual way form
recording its accounting transactions. Sharp Industry does not use the
computerized accounting system. Due to this lack, they have not the proper
record of the accounting transactions.
When we visit their industry, and ask them for accounting records, they face
very serious kind of problem to sort out the accounting data of one
department out of their three departments. If they were using specific
software for the recording of accounting data, they didnt face that kind of
problem.
Not using Computer Networking:
There is also lack of the computer networking in the firm. Sharp
Industry did not use computer networking. Due to this firm face the problem
of sharing of data among different departments. They did it manually.

Proposed Solution to the Problem

Using Peach-Tree Accounting Software:
The best solution for this problem of saving accounting data is to use
accounting specified software. The best software for Sharp Industry is
Peach-Tree accounting software 2014: Sage 50.
Here are some new features of Peach-Tree accounting software

2014: Sage 50.

Many people still get confused when anyone mentions Sage 50 to them. They usually ask for
Peachtree as an alternative accounting software. The news is that Peachtree Accounting Software
is now Sage 50. It is the same Peachtree Accounting Software we used to know but with some
new and enhanced features such as:
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Company Configuration:
A new optional process to help guide you through the setup of you software has been designed.
Help Centre:
New search engine providing up-to-date help topics and information has been added.

Simplified Monthly and Year End:

The process has been improved and made easier to understand. The screens have been
redesigned and will provide help where needed. A big request was to be informed when a task
was completed so this has been introduced.
Quick Tasks:
Three new elements have been introduced.

Invoices, quotes, sales and purchase orders can be created more quickly from the product
list.
There is increased automation for common processing tasks - for example sales/purchase
orders and invoicing.
You can process a 'cash sale' whilst updating stock levels from within the invoicing
module.

User Interface and Language:

Over 1,000 function/ feature labels have been updated and improved to ensure users know what
they're doing without the need to know accounting terminology or abbreviations.
Reporting Improvements:

A new user interface with an updated look and feel has been created.
Excel improvements now allow you to get financial information without spending hours
manipulating the data.
There are now accurate report descriptions, previews filters and action buttons.
You can now send invoices by email without having to go into the Report Designer.
A customized reporting function allows you to create more professional looking reports.

Some common features:

Its an easy to use software:

Peachtree software is not very complicated software to use; its very

easy to use and user friendly. Peachtree is a great system for people who are starting
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small businesses because it is easy to use, affordable, and has all of the functionality that you will
need.

Cost Effective:

Another advantage of using Peachtree is that it is a cost effective solution. Depending on the
version that we purchase according to their website, we can expect to spend anywhere from a
few hundred dollars to a few thousand dollars, which is very reasonable for the amount of
functionality and reliability that you are getting.

Reporting Capabilities:

Peachtree comes loaded with a large amount of reports that are all customizable in some
way. They all can either be printed to PDF or dropped directly into Microsoft Excel.

Functionality:

Peachtree is a fully functional accounting system. It allows issuing

invoices to customers, receiving payments, entering payables to vendors,
print checks, paying to employees, tracking expenses, entering journal
entries, and much more. It is packed with all kinds of different preloaded
reports. Peachtree also will perform an internal accounting review that will
identify common transaction mistakes.
(Sage 50 Review 2014 - Top TenREVIEWS)

Computer Networking:
Computer network can be defined as A set of computers that are connected and able to
exchange data. In a typical office environment, a local area network (LAN) is usually set up to
allow data exchange and resource sharing (such as files, printers, fax modem, scanner, and
Internet broadband access) between computers.
Benefits of Computer Networking to Sharp Industries:
There are numerous benefits a computer network can bring to a business.

File Sharing: Computer files can be stored centrally, therefore multiple staff can work on
one single copy and responsibility can be delegated (faxing, mailing, printing, etc.). Store
computer files on one place will also make data backup easier, more reliable and cost
efficient.
Internet Sharing: If company have a broadband Internet connection, setting up a LAN
will allow the entire office to access the Internet concurrently. Everyone can exchange

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message, do research, monitor business development, and fully realize the benefit of
Internet at any time.
Resource Sharing: Printers, fax modems and scanners (depends on model and other
factors) can be shared across the network. For example, a high speed high quality printer
can be shared by the entire office, allowing to reduce cost while increase quality of output
(printout, fax result, etc.).
Data Sharing: Certain applications such as accounting, scheduling, contact management,
as well as billing software, allows setup a central data repository for multiple computer
access. Once the repository is setup, multiple computers can view and modify the same
set of data. Data sharing increase work efficiency, allow faster decision making, and let
company have a better view of the status of the business.
Security: When setup properly with role-based security, office users will be able to
access only resources relevant to his/her job functions. In addition, users can log in at any
workstation and continue his/her work, minimizing downtime and loss of productivity
due to a failed workstation.
Cut costs with software: there are many software products aimed at networks that offer
more savings for the business than buying individual licenses for each computer. Because
the machines are connected to each other in the network, upgrading can be done directly
to the server, saving time from upgrading computer by computer.
Communication: The employees dont even need to be connected to the Internet;
because they are in an intranet, they can communicate to each other via electronic mail
using the network system.

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General Recommendation
There are some recommendations which are for as following:

Chargeable machine:
There is electricity issue in Pakistan and people suffer a lot from it,
such kind of machine will offer them to do work when electricity is not
available.
The demand of sharp electric products is high then supply so they
should do increase in capital assets by which the productivity will
increase. If they are not having capital they can offer loans from bank.
They should advertise their machine in the way to differentiate
between advantage of machine and disadvantages of kneaded dough
with hands.
Make the quality of the product better, and durable.
Human resource management department is to be made, which will
enhance the safety of the workers while working on the machines, due
to which working efficiency of workers increases.
Make branches in other cities to increase the business.
Make a display hall to display their products.
Increase in exports, by increase increasing the production.
Import latest machinery for production, and reduce labor cost from
foreign countries.
Attractive packing to capture the concentration of competitor, and
market customers.
Increase the capacity of the machine (quick kneader) productivity,
because the capacity of the machines is very less as 4 kilo but in
hotels, restaurants and bakeries have to kneaded dough a large
amount of flour.

Conclusion
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Company was started in 1982, and produces only parts of washing machine.
Continually made the goodwill in the market with better quality of their
products, then expand their business and started to make complete washing
machine, after that plastic furniture then in 2000 started to make quick
kneader machine. From 1982 till now they are making improvement in their
business. Now they are having a good will in the market that their product
has a high demand in the market.
This machine is a good product which is selected by them by the owners,
because it saves time, works fast, noiseless, light weight.

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

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Thank You
~The End~

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