ABB Pakistan Internship Report

ABB Pakistan Internship Report OR INTERNSHIP REPORT AT ASEA BROWN BOVERI (ABB), PAKISTAN

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE MBA DEGREE

Acknowledgement

At the very outset, I take this opportunity to express my sincere regards and gratitude to every individual linked with my Project work…

I would like to thank my professor, Internship advisor, for giving me an opportunity to do internship and his continuous support to achieve this task.

I take the privilege to thank Mr.Adnan Javed, Manager Business Controlling and Mr.Ali Mannan Rashidi, Commercial Executive, ABB Pakistan for giving me an opportunity to take up the internship.

I am grateful to Mr.Mohsin Ali, Sale officer for his insightful guidance and support in completion of this task.

I would also like to thank staff of ABB for sharing their valuable knowledge with me.

Last but not least, I wish to express my gratitude to all those who have lent a helping hand, directly or indirectly, for the successful completion of the project.

ABB Pakistan Internship Report – CONTENTS

Executive Summary
Company Profile
History
Business Focus
ABB SWOT analysis
ABB Pakistan
Organization Structure
Business Segments
Product Profile
Vision & Mission
ABB & Technology
ABB & Global Research
Environmental Policy of ABB
Social Policy of ABB
A Financial Overview
Personal Policy
Systems
Internship Weekly Reports
Conclusions & Recommendations

List of Charts & Graphs

ABB Network in Pakistan
Organization Structure
Revenue
Profit
Employee & Productivity

Executive Summary

ABB is a multinational and world largest engineering company that provide different Products and services to utility and industry customers.ABB is pioneer in many products by conducting advance research through their R&D centers by using advance technology and spending 7% of their total turnover in R & D.ABB gives customers value by keeping them in their strategically part that their customers become ‘front runners’ and more competitive.ABB work with a aim to continuously improve the co-efficiency of products,system,services and to share more advance technology with the developing countries. ABB has three major field of business included ABB power technologies, ABB automation technologies and ABB Oil, Gas and Petrochemicals.ABB has A-Z types of products.ABB continuously improve its revenue from past five years in Pakistan.

As an Intern I understand the complete flow of work with in different departments in ABB.And have a great exposure after doing work practically.

COMPANY PROFILE

ABB is a global leader in power and automation technologies. Based in Zurich, Switzerland, the company employs 150,000 people and operates in approximately 100 countries. The firm’s shares are traded on the stock exchanges of Zurich, Stockholm and New York.

ABB’s business is comprised of five divisions that are in turn organized in relation to the customers and industries we serve.

The company in its current form was created in 1988, but its history spans over 120 years. ABB’s success has been driven particularly by a strong focus on research and development. The company maintains seven corporate research centers around the world and has continued to invest in R&D through all market conditions.

The result has been a long track record of innovation. Many of the technologies that underlie our modern society, from high-voltage DC power transmission to a revolutionary approach to ship propulsion, were developed or commercialized by ABB. Today, ABB stands as the largest supplier of industrial motors and drives, the largest provider of generators to the wind industry, and the largest supplier of power grids worldwide.

HISTORY

1883- Ludvig Fredholm established Elektriska Aktiebolaget in Stockholm as manufacturers of Electrical Lighting and Generators.

1890- Elektriska Aktiebolaget merges with Wenstroms and Granstroms Elektriska Kraftbolag to form Allmanna Svenska Elektriska Aktiebolaget later shortened to Asea.

1891- Charles E.L. Brown and Walter Boveri established Brown, Boveri & Cie (BBC) inBaden, Swizerland, which was the 1^st company to Transmit High-Voltage AC Power.

1932- Asea builds the world’s largest Self-Cooling Transformer and expands fan business by acquiring AB Svenska Flaktfabbriken.

1988- Asea and BBC merge to form ABB (Asea Brown Boveri Ltd.) one of the largest Electrical Engineering Companies in the world.

ABB’S BUSINESS FOCUS

A new simpler ABB-Simplification of structure for enhanced operational efficiency, cost rationalization and core competency focus.

ABB is a leader in Power and Automation technologies that enables utility and industry customer to improve performance while lowering environmental impact.

In 2002, ABB simplified its organizational structure with the key objective of levering its domain expertise and building on a clear Market Leadership in Power and Automation Technologies. This reorganization will enable the company to serve its utility and industry customers across the value chain with our world class products, system and solutions, faster and more efficiently.

Simplification is done in the following manner-

7 Divisions to 5 Divisions
13 Business Areas (Automation Technology) to 6 Business Areas
7 Business Areas (Power Technology) to 6 Business Areas

Strategy-Build on our Leadership in Power and Automation technologies for utility and industry customers.

Culture-Shared Invention-“our ABB”, open communication and dialogue, fast decisions, execution, disciplined culture, acting in the overall interest of ABB.

Structure-Slimmer structure reduces complexity and reflects focused portfolio.

People-Leadership based on respect for values, trust and accountability-say what we mean, mean what we say.

ABB Ltd (ABB) SWOT Analysis

Strengths:

Large Installed Customer Base:

Contracts tend to be long term
Significant investment in “system” or solution designs – learning curve or compatibility issues may make switching costs high
Significant cross-selling and aftermarket sale opportunities …

Well Positioned Geographically:

Well positioned geographically. Over 50% of revenue base is in high growth emerging markets, especially China & India, where population growth and urbanization is demanding investment in infrastructure.

China is expected to add 40‐60GW of – (mainly coal-based) power generation capacity per year, which should lead to a doubling of the installed base by 2020 to1,250GW
Per capita consumption of power in India estimated increase from 650 KWH in 2006 to 1000 KWH in 2012.

Weaknesses:

Customer service availability:

History of Overpaying for Acquisitions:

Questionable management has a history of overpaying for acquisition and not delivering synergies on prior deals. … “History of Overpaying for Acquisitions” will have a long-term negative impact on this entity, which subtracts from the entity’s value. These statements will have a short-term negative impact on this entity, which subtracts from its value.

Opportunities:

Infrastructure Spending:

Strong Balance Sheet:

A strong balance sheet may serve as a catalyst for acquisitions. Roughly $9B in cash and $2B in debt, as of 2010. This opportunity could lead to acquisitions, buybacks, and special dividends. … “Strong Balance Sheet” will have a long-term positive impact on the entity, which adds to its value. These statements will have a short-term positive impact on this entity, which adds to its value.

Smart Grid:

Smart grid infrastructure could increase demand for any companies that manufacture, supply or build any smart grid related infrastructure needs. A smart grid would rely on advanced technologies, so some companies may benefit from higher margins for their products

Environment Regulation:

Additional regulation will increase the demand for companies in the environmental services industry. From green house gases to water security, regulation is meant to protect the environment from over use and abuse. … “Environment Regulation” has a significant impact, so an analyst should put more weight into it.

Threats:

Abb: dini muetter:

Budgets under Pressure:

State & federal budgets are under pressure, which may slow down replacement sales and put overall sales at risk.

ABB PAKISTAN

“Thinking Global, Acting Local”

ABB in Pakistan serves utility and industry customers with the complete range of ABB’s offerings. In Pakistan ABB have no manufacturing units it imports Products from different countries like Germany, Switzerland, ABB India and ABB China etc. on cost effective basis according to Project requirement. The company has three offices ABB Head office Lahore, ABB Islamabad office and ABB Karachi office. Company does its business in Pakistan with a focus into following Five Business divisions:

Discrete Motion (DM)
Low Voltage Products (LP)
Process Automation (PA)
Power System (PS)

ABB main contractor include WAPDA, NTDC and Industries on turnkey Projects included Engineering, Design, Supply of

Equipment, Installation, Testing, Commissioning and Energisation etc.

ABB also deals in Low voltage Products included circuit breakers and switchboards etc for consumers like House hold, Restaurants and offices.

BUSINESS SEGMENTS OF ABB

ABB has streamlined its divisional structure to focus on two core businesses:

Power Technologies and Automation Tecnologies.ABB is recognized global leader in all its businesses

The businesses of the ABB Group is organized into 3 Business Segments, which are as follows-

ABB Power Technologies serves electric, gas and water utilities as well as industrial and commercial customers, with a broad range of Products, system and services for power transmission, distribution and automation.ABB is the World’s largest supplier in the field of Power Transmission.ABB has the widest global presence and the most complete product range available. The Power Transmission segment provides Products and services like

Air and Gas Insulated Switch Gear Products
Solution and High Current Systems
Power Transformers and Reactors
Products and Solutions for Power Cables
High Voltage Direct Current Systems.

ABB also provides a complete range of equipment for Power Distribution, from Transformers and Switchgears to complete Distribution Systems. It provides products for distribution of Electrical Energy including Medium-Voltage Switchgears, Apparatus and Prefabricated Factory Assemblies. It also provides Solutions and Systems for Distribution of Energy to Rural, urban and industrial consumers as well as for Airport Installations.

ABB Automation Technologies blends a robust product and service portfolio with end-user expertise and global presence to deliver solutions for control, motion, protection, and plant integration across the full range of process and utility industries.

ABB’s Automation Business Segment provide a wide variety of products, systems used in almost all industries as well as solutions for particulars applications and industries, It provides Automation Power Products like Drives, Motors and Power Electronics, Instrumentation and Control Products like Field devices for Sensing, Controlling and Actuating,Analyzers,Metering Equipment, Control and Information Systems, Diesel Engine Supercharges etc..

ABB Oil, Gas and Petrochemicals supplies a comprehensive range of products, systems and services to the oil- and gas-industries, from onshore and offshore exploration technologies to the design and supply of production facilities, refineries and petrochemicals plants.

ABB serves as a supplier and business partner for Oil, Gas and Petrochemicals Companies. World’s Fossil Reserves are finite. But they will not run out in the foreseeable future if we use them wisely and replace them with renewable energy sources wherever possible. Advanced, innovative technology is required to make their use sustainable.

ABB provides such technology for all parts of the Oil and Gas industries, Onshore and Offshore, as a supplier of Equipment and Systems, Turkey Projects, Service and Technology Licensing.ABB’s offer of Petroleum Industries include-

Refineries
Gas Processing Plants
Sub-sea production Systems
Petrochemical Plants
Offshore Drilling Equipment
Floating Production Systems

PRODUCT PROFILE

Product Guide:

Building Systems and Services
Control Systems
High Voltage Capacitors
Instrumentation
Actuators and Petitioners
Analytical Instruments
Control Valves
Flow Measurement
Interface Products
Pressure and Level
Measurement
Process Control
Recorders and Indicators
Temperature measurement
Low Voltage Products
Medium Voltage Products
Motors and Drives
Oil and Gas
Robotics
Transformers
Valves and Actuators

Service Guide:

Asset Assessment
Consulting
Eutuch Process
Solutions
Environmental Services
Installation and Commissioning
Maintenance and Field Services
Optimization
Performance Services
Spare Parts and Repairs
Training
Financial Services

ABB – VISION AND MISSION

Vision:

To be as the most capable and reliable partner while build future competitiveness.

We want our customers to become “Front Runners”
We want to become “Main Partners” on the road to excellence, by offering innovative, “Best in class” level products and services by fostering the growth of resources that will play responsibility roles in companies within the ABB Group.

Mission Statements:

We supply competitive, top-market level Consultancy Service.
We support change projects including the implementation step and getting the planned results.
We optimize all Companies Processes.
We promote know-how at international level.
We sustain the implementation of “Global Process”
We foster the growth of resources that will play managerial roles.

Values:

We create value:

By making our customers more competitive in a networked world.

We strive to help our customers gain competitive advantage from technology advances and developments in their markets. We do this by creating comprehensive industrial IT offerings that combine World Class products and services with superior domain know-how and collaborative commerce.

By offering our employees opportunities to learn, grow and share in the value created by their efforts.

We reward creativity, flexibility and results-oriented actions that help make our customers successful. Through adoption of common business processes we realize energies and creativity to focus on serving our customers.

By achieving returns that meet or exceed the expectations of our shareholders.

We generate the growth that creates investor confidence by managing for value. The power of being close to the market and understanding how we can create more value for our customers will generate the financial strength needed in fast changing capital markets.

By living our commitment to sustainability.

We strive for a balance in the economic, environmental and social impact of our business and we actively contribute to economics progress, environmental stewardship and sustainable development in the communities and countries in which we operate.

ABB’s strategy

In the short to medium term, this is our strategy for sustainability:

To ensure that all operating units implement environmental management systems and continuously improve their environmental performance; and to encourage them to set an example by going beyond mere compliance with local environmental standards and laws

To continuously improve the eco-efficiency of all our products, systems and services, and publish this information in environmental product declarations

To share the most advanced and Eco-efficient technologies with developing countries

To apply our social policy, including occupational health and safety policies, throughout the Group, and develop procedures and indicators to improve social performance continuously

To favor and encourage suppliers who have environmental and social policies similar to our own

To apply resources to common efforts that foster economic, environmental,social and educational development

To analyze and reduce the environmental impact of our transportation of goods and people

To use ABB;s communications resources to raise awareness of sustainability matters, particularly among our own employees

Towards a new consensus

Strategies and policies can take us some of the way. But to make real progress, we need to implement our policies and help shape the environment in which we are active.

In short, it is not enough for ABB alone to place a premium on sustainability.

More, we must constantly strive to transform sustainability into customer values. This is the true challenge before us. Gradually, subtly; every company, government, stakeholder and individual must come to agree that sustainable policies are the only acceptable policies.

Sustainability is everyone’s business.

ABB AND TECHNOLOGY

ABB has been recognized as a Technology Leader for over a century, with many pioneering breakthroughs to its credit. The company invests about 7% of its Group’s Turnover in research and order related development, which is weaved in to a fabric of its business offering. The company have an excellent track record when it come to “intensity of inovation”,with around 75% of their business being based on products developed in the past five years. The ultimate aim of their technology initiatives is to make their utility and industry customers more competitive while reducing environmental impact.

In today’s competitive business environment ,all business are sitting radical productivity and efficiency improvements through increased automation and integration of manufacturing and business processes. ABB is spearheading its effort through its open architecture based industrial IT platform aim at real-time ,seam less integration of plant operations and business processes across the entire value chain. The company combines its knowledge of the industry and business processes with world-class products, system and services. This domain competence has been gained through years of experience across industries and in all parts of the world. ABB is also “information enabling” its products, which forms an integral part of the automated manufacturing processes of many industries.

ABB AND GLOBAL RESEARCH

ABB is unique in their approach to R&D. The work is organized via research labs in business Areas and Corporate Research centers. Currently it has about 1200 researchers and scientists working in corporate research centers.They also have research centers located in Sweden, Switzerland , Germany , Norway, Finland ,Italy ,2in the US and the latest additional is an Indian center which is first research center in Asia.

Combined they have over six thousand scientists and engineers working in R&D in their divisions and in corporate research centers. All of these working hard to invent new technologies, which will insure a continued successful partnership with their customers. Additionally, the fresh and innovative thinking arising from synergies with over 70 universities and research institutes is an important factor in keeping ABB a world technology leader.

ENVIRONMENTAL POLICY OF ABB

ABB is signatory to the international chamber of commerce business charter of sustainable development, and in 1992 adopted the 16 principles of the charter as its group-wide environmental policy.

The 16 principles are as follows-

Corporate priority
Integrated management
Process of improvement
Employee education
Prior assessment
Products and services
Customer advice
Facilities and operations
Research
Precautionary approach
Contractors and suppliers
Emergency preparedness
Transfer of technology
Contributing to the common effort
Openness to concerns
Compliance and reporting

SOCIAL POLICY OF ABB

ABB’s social policy was adopted in February 2001.it draws on four sources: the United Nation’s Universal Declaration of Human Rights, the International Labor Organizations fundamentals principles on rights at work, the OECD Guidelines for Multinational Enterprises and the social Accountability 8000 (SA 8000) standard, an auditable standard for the protection of worker’s rights developed by the council on Economic Priorities Accreditation Agency.

ABB in society
Human rights
Protection children and young workers
Freedom of engagement
Health and safety
Employee consultation and communication
Equality of opportunity
Mobbing and disciplinary practices
Working hours
Employees
Suppliers
Community involvement
Business ethics

A FINANCIAL OVERVIEW

5 YEARS HIGHLIGHTS OF ABB PAKISTAN

Revenues

(Rs. In Millions)

Profit after Tax

(Rs. In Millions)

Employees and Productivity

Number of Employees

Revenue per Employee ($1000=KUSD)

CONTROLLER

The Controller looks after the overall business and the financial aspects of the Business Unit and reports both to the business Area Manager and the Divisional Finance Controller. His activities are centralized for the Petty issues, known as ‘Group Service System ‘or ‘GP’.

Preparation of Full Cost Module (FCM)-Before a Quotation is made, a FCM is prepared to test the feasibility of the project by considering-
Overhead Recovery
Gross and Net Margins, etc.
Forecasting-This function includes Verifying the Compliance of the targets set as per the Budget by checking-
Invoice for Order Target-The rate of converting the orders to invoice
Receivables for Revenue Target
Working Capital for EBIT Target
Capital Employed for Cash Flow Target-Here the Target will be to maintain a Positive Cash flow
The Confirmation of the Targets is reported through ‘Rolling Forecast’ to-
The Country Management every Month
The Global Management every Quarter
Receivables Management-Although the Commercial Aspects of receivables Management are taken care of by the Marketing Personnel, the Controller aims at “Reducing the Receivables and Collecting More by visiting the Regional Offices and Meeting the Customers Personally”.
Inventory Management-The Controller also participates in the Inventory Management in the matters like, the preparation of Purchase Order to consider
Cash Flow Situations
Prices, etc.
Costing-The Controller also monitors the Material Cost and the Overhead cost incurred at the Production Site for each Job.

Monthly Closure of Accounts-The Books of Accounts pertaining to the Business Unit is closed every month, for the purpose of Reporting. The key areas of Concentration, among other will be-
Level of Work-in-Progress
Closing Inventory as per Accounting Standards
Provision for Future Orders
Intra and Inter Company Reconciliations
Matching Revenues to Cost
Auditing-The Controller is also responsible to get the books audited at the Business Unit Level. The Audits along with the External Annual Audit includes-
Quarterly Audit
Half-Yearly Audit
Transactional Audit
Quarterly Audit

Logistics is handled by a Signal Person, whose Functional Responsibilities are as follows-

To receive Purchase Requisition from the Planner. This clearly states the Materials, Quantity, Proffered Supplier and the Date by which the materials are required.
To place the Order
To ensure the procurement of the Materials in time
To participate in the Vendor Development Programmed

PERSONNEL POLICY OF ABB PAKISTAN

Satisfied Customers and motivated employees are of vital importance to ABB’s long term competitiveness.

Each Employee shall-

Understand his/her role
Have necessary empowerment
Take Responsibility
Develop his/her competence-knowledge,Will and Ability
Clearly defined objectives for both the individual and the work teams shall be the corner-stone for their activities
Respect for, and confidence in, the individual shall characterize their work environment. This must be safe and stimulating
Each manager at ABB shall continually develop his/her Management Skills and Leadership so as to be able to assume full responsibility for the employees
Planning Discussion shall be held at least once a year with each individual employee
The goal of their learning organization is to achieve a continuous development and provide career opportunities consistent with abilities
Ethics, equal opportunities and an open and honest exchange of thoughts and ideas are the corner-stone of their actions

SYSTEMS

The company has a SAP system which covers the transactions relevant to booking of order received from customers, to dispatch of finished product to the customer to the clearance of Accounts. Thus the system covers the areas like order handling,engineering,planning,purchasing,quality control,inspection,stores,manufacturing,servicing and commissioning and accounting.

The SAP picks up data from the database and uses this data for the purpose of the above said departments. This system is presently fulfilling all the routine requirements of the users.

MY AREA OF INTERNSHIP

As I am a student of MBA and I want to specialization in finance, so I spent my most of time in Finance department of ABB. It was the great experience for me to get practical knowledge in such a prestigious organization. I spent Eight weeks in finance department and get knowledge of different sections of finance department. Daily lectures were delivered by managers and officers in which working of different sections and business operations were taught by them. Such environment helped me a lot to learn and understand the Multinational sector.

WORK DONE BY ME

I have discussed the work done by me during internship in ABB on weekly basis.

Week 1

First day,

I was assigned as Intern in Power Systems division of company to assist in commercial matters. Power Systems offers turnkey systems and service for power transmission and distribution grids, and for power plants. Electrical substations and substation automation systems are key areas. Additional highlights include flexible AC transmission systems (FACTS), high-voltage direct current (HVDC) systems and network management systems. In power generation, Power Systems offers the instrumentation, control and electrification of power plants. The division is subdivided into four business units – Grid Systems, Substations, Network Management, and Power Generation.
I was assigned to study the processes and documentation for order handling. Order process and documentation for Kohinoor Energy Ltd., Sadidians, NSI (Network Service International) and Engro Polymers were reviewed with complete details with commercial executive and project analyst, Ali Manan, as mentor.
I completely understood the process and conditions applied by ABB through Performa invoice, acceptance of purchase order (order acknowledgment) to cover and mitigate different risk and exposure e.g. credit risk and currency risk.
I also got chance to know about how ABB participates in tenders and give discount to their customers after risk evaluation. There are two types of risk evaluation process in place that are lean risk review and web based risk review. Selection of lean or web risk review is based on complexity and volume of pursuits / projects.
I was assigned to coordinate with Shared Accounting Center for clearing customer over dues after receipt of cheque.

Next day,

ABB arranged a customer visit and we attended a meeting with customer Gujranwala Electric Power Co. (GEPCO) to discuss project financials and progress for building two grid stations on Sherawala and Khyali bypass.
Meeting participants were Ali Manan, ABB’s commercial executive, and GEPCO’s Project Manager, Muhammad Sarfraz. ABB discussed and inquired about their claim amounting to KUSD 42 for reimbursement of taxes and duties paid at port on GEPCO’s behalf for clearance of equipment imported for grid stations. GEPCO’s Project Manager informed that payment is ready in form of cheque but they need monthly sales tax return filed by ABB to FBR to verify tax submitted in Govt. treasury on behalf of GEPCO.

ABB replied that it will submit tax return extract after blanking out the details of other customers and vendors. GEPCO requested to provide tax return without any alteration.

ABB requested for time so that they may get opinion from their legal department to check if it’s not against confidentiality policy of the company and local regulations.

Next day,

I was assigned to study ABB’s another project with National Transmission and Dispatch Company Ltd. (NTDC). I reviewed following documents;
Contract agreement conditions
Terms & Procedures of payments
Price Escalation
Insurance requirements
Time schedule
List of major items of plant & services and list of approved subcontractors
Scope of work & supply by the employer
List of documents for approval or review
Functional guarantees
Environmental management plan/Resettlement plan
Review of Letter of Acceptance
Review of Performance Guarantee
Letter of Bid
Power of Attorney
Price Schedule
Special Conditions

Next day,

Following activities were assigned during the day;

I was assigned to complete project documentation and store important claims to customer via different invoices in soft form via Xerox document management system in project folder.

I was required to file claim for 10% down payment request against variation order received for ongoing project for building grid stations with GEPCO.

Participated in monthly financial closing of company and got brief overview of the process.

Submitted different vendor invoices (Sangdong Industries, China & ABB AG, Germany) for GEPCO project to shared accounting services center (SAS) for payment processing.

Next day,

Following activities were performed during the day;

Studied ABB’s ERP ( my SAP R 3) and order to cash cycle

Submitted vendor invoices to SAS and got request from SAS to arrange quotation analysis form that is a prerequisite for payment

Reviewed the Letter of Credit opened in favor of ABB for GEPCO projects that are funded by Asian Development Bank

Week 2

First day,

I was assigned to file claim for 50% remaining payment request to vendor SEVES(PPC Insulator) against shipping documents while 50% payment already made in form of advance.
I was also required to file claim for 100% payment to vendor COELME against shipping document.
I was assigned to review the Bill of Lading (B/L) of good imported for customer Fauji Foundation from shipper GEMTA GENEL.
I was also requested to review documents for the Goods Declaration (GD), Back Charge (Reimbursement), and Cash receipt for Excise & Tax submitted to Govt. of Sindh.

Next day,

I was assigned to study ABB’s another project with National Transmission and Dispatch Company Ltd. (NTDC), Static Var Compensator (SVC). I reviewed the following documents;
Software License Terms & Conditions
Annual Report ABB:AB 2005,2006 and their comparison
Administration Report, Auditors Report
Certificate of Registration
Manufacturer’s Authorization
Organizational Chart ABB
CV’s of management of ABB
ABB:AB FACTS/Quality manual
Quality system manual
Power system division process flow chart
Process automation division, Process flow chart -Acquisition
Process automation division, Process flow chart -Tender follow up
Process automation division, Process flow chart- Sales
Process automation & automation products division, Process flow chart-Order processing
Process automation division, Process flow chart-Project coordination
Services quality plan ABB service center, Process flow chart-Installation & Commissioning
Service quality plan ABB service center, Process flow chart –Warranty services
Service quality plan ABB service center, Process flow chart-Onsite serviceable damage or unserviceable damage
Flow chart purchasing

Next day,

I was assigned to review the following documents;
Terms & Conditions (Ref: ISO 9000:2000)

Related To: Management, Organization, Process & Products, Characteristics, Conforming documents, Examination, Audit, Quality assurance for management processes.

Quality management system (Clause 4 of ISO 9001:2000)
Management Responsibility (Clause 5 of ISO 9001:2000)
Resource Management (Clause 6 of ISO 9001:2000)
Product Realization (Clause 7 of ISO 9001:2000)
Monitoring & Improvement (Clause 8 of ISO 9001:2000)
I was assigned to prepare and arrange Bank draft for purchasing tender documents from Wapda Power Complex Ghazi Barotha-Attock Pak.
Hannan Shahid, Project Manager, briefed me about purpose, process and objective of Letter of Intent (LOI).
Ali Manan, Project Analyst, gave overview about JSR (Job Status Report) report that was extracted from ERP for project review.

Next day,

I was assigned to review company’s processes for occupational health & safety (OHS).
I was requested to prepare a payment request to SAS for 1.5 million dollar against import of transformers for company’s wind farm projects to ABB Hefei Transformer Co.Ltd. , China.
I was also required to prepare a payment request in favor of vendor COELME € 2,300/- as per purchase order.
Ali Manan also briefly informed me about purchase process in company’s ERP (my SAP)

Next day,

I was assigned for reviewing documents for Static Var Compensator (SVC) Project that are listed below:
Background
Experience Highlights
View reference letters
NSP (Northern State Power Company)
Trans grid
Statnett
FACTS (Flexible AC Transmission System)
ABB’s SVC/SVS light reference projects
ABB-The Pioneer and Market leader of SVC
I was assigned to visit NTDC office and get a contract agreement copy.
I was involved in preparing claim to Chief Engineer, NTDC, for extension in validity for letter of Credit (L/C) that was opened in favor of ABB.
I was invited to company’s Town Hall Meeting in PC hotel where management including Country Manager, Country CFO, HR, OHS Manager, Legal and Integrity Officer, Local Division Managers for Power Systems, Low Voltage Products, Process Automation and Discrete Motion presented company’s progress, targets, challenges and strategy. Meeting followed by Iftaar, dinner and other leisure activities and day ended at very pleasing node.

Week 3

First day,

Studied commercial / shipping documents for shipment dispatched to ABB Pakistan by CRESCENT SYNDICATE.
Review of procurement process was assigned to me. This review includes review of various forms e.g. quotation analysis form that are used to analyze different offers submitted by vendors, technical evaluation form used for review of technical data, commercial evaluation form used for evaluation of bid price and management approval form to obtain approval for acceptance of recommended bid. In addition to that also get chance to review ABB’s customer inspection certificate in case of Layyah Sugar Mills Ltd. that are used for taking customer’s acknowledgment for successful completion of service jobs.
Interaction and coordination with Northern Power Generation Co.’s Technical Manager for opening of Letter of Credit (L/C) in favor of ABB for supplying Excitation System for their plant at Muzaffargarh under contract signed with ABB, funded by USAID.
Data entry of man-hours services was made and invoices prepared on the basis of man-hour cost and equipment price, were sent to Packages Ltd. for payment.

Next day,

Located Contract agreement with NTDC regarding supply of Static Var Compensator (SVC) for Gujranwala Electric Power Company (GEPCO) and Kotlakhpat Grid Station and contract agreement of Fauji Fertilizer (FF) regarding equipment installation services from record. Documents were studied and copies were sent to Finance Cell for the purpose of resolving tax issues.
Review of Enterprise Resource Planning (ERP) system was assigned to me. This is a business management software that a company can use to collect,store,manage and interpret data from many business activites,including;
Product planning cost and development
Manufacturing and service delivery
Marketing and sales
Inventory management
Shipping and payment
I was required to prepare and send a bid bond in favor of General Manager Procurement Dept. K-Electric, Karachi for obtaining bid documents.
A Bill Order Quantity was mailed to Zaki from supply chains assigned, for approval process.
A claim of payment request to vendor Unicom Corporation against their invoices was filed with Finance cell, as advised.

Next day,

I was assigned to do search on ABB intranet (inside.abb.com) and study important announcements, different company reports and case studies.
Claims of payment request to vendors Huzaifa Traders & M-Tech International against their invoices were filed with Finance cell, as advised.

Review of tender documents of 132/11.5 kV (GIS) grid station at Defense Raya Golf & Country Club was assigned. Following documents were studied and reviewed:

Invitation to tenders:

Instructions to tenderers
Tender Documents
Clarification of tender documents
Amendments of tender documents

Preparation of tender documents:

Language of tender
Documents accompanying the tender
Tender Prices
Tender validity
Tender security
Alternate proposals by tenderer
Pre-tender meeting
Format & signing of tender

Next day,

Visited NTDC office for collecting of NOC/Authority letter, as assigned and dispatched this letter to CRR, WAPDA Karachi for clearance and receiving of shipments.
Drafted and sent mail to vendor ABB China to provide banking details for advance payment, as assigned.
I was assigned to study the remaining tender documents of 132/11.5 kV (GIS) grid station at Defense Raya Golf & Country Club. Following documents were studied and reviewed:

Submission of tender:

Sealing and making of tender
Late tenders
Modification and widrawal of tender

Tender opening and evaluation:

Tender opening
Process to be confidential
Clarification of tenders
Examination of tenders & determination of responsiveness
Correction of errors
Evaluation & comparison of tenders

Award of contract:

Award
Employer’s right to accept any tender and reject any or all tenders
Notification of award
Performance bond/security
Signing of agreement
General performance of bidders
Filing of BOQ

Next day,

Bid bond from finance department was collected and posted to K-Electric procurement department, Karachi, as advised.
Case study of ABB contract to Askari cement Ltd.Wah was undertaken and completed, as an assignment.
Arranged return of Bank performance guarantee to Transfopowers Pvt.Ltd on work completion, as assigned.
Review of contract agreements between DESCON Engineering Ltd & DESCON Engineering FZE and M/S ABB AG Germany & M/S ABB Pvt.Ltd Pakistan was assigned. Following documents were studied and reviewed:

Contract agreement
DEL obligations
Division of responsibilities b/w ABB Germany & ABB Pakistan
ABB organization chart
Consortia agreement (Between ABB AG Germany & ABB Pvt.Ltd)
Purchase order special terms & conditions
Performance and advance Bank guarantee format
DRAFT for Letter of Credit (L/C)
Purchase order standard terms & conditions

Week 4

First day,

Study of the bidding documents of procurement of Goods/Equipment as assigned to me.

In single-stage: Two envelop bidding procedure

DHAKA Electric Supply Company Ltd (DESCO), Bangladesh. In which I review the following documents:

Bidding Procedure:
Instructions to bidders
Bid data sheet
Evaluation & qualification criteria
Bidding forms
Eligible countries
Supply requirements:
Schedule of supply
Conditions of contract & contracts forms:
General conditions of contract
Special conditions of contract
Contract forms
As require Goods declaration (GD) document receive from finance cell of goods import from ABB Germany for PEL and remittance against bill of entry
A claim of payment request to vendor Newage cables Pvt Ltd. against their invoices was filed with Finance cell, as advised.

Next day,

Following activities perform as assigned to me:
Rotated to PAPM (Process automation) department
Establishing Letter of Credit (L/C) for PAPM
Bank guarantee extension for PAPM
Review processes & target client
Schedule receivable status
As an assignment review of Ghazi Bertha Power Complex following documents:
Purchase order of spares parts for protection & instrumentation equipment
Terms & conditions
Mode of dispatch
Source of finance
Specifications
Terms of delivery
Delivery period
Country of origin
Name of principle
Consignee
Ultimate consignee
Payment
Insurance
Packing
Marking
Air freight
Demurrages
Indemnity
Important notes
Warranty
Inspection &rejection
Failures& termination
Force majure
Special condition
Transmission of document

Next day,

A claim of payment request to vendor ABB AG Germany against tender fee back charge invoice of DHA-132 KV GIS was filed with Finance cell, as advised.
Human Resource (HR) Policies review as an assignment:
Recruitment Policy
Recruitment Process
Closing the Recruitment Process
Selection Policy
Candidate Validation
Final Selection and Decision Making
Separation Policy
Internal Mobility
Learning & Development Policy
Remuneration & Benefits
Children Education Allowance Policy
Business Travel& Entertainment Policy
Vehicle & Fuel Policy
Medical Policy
Mobile Policy
Overtime Policy
Payroll Policy
Disciplinary Policy
Leave Policy
Salary Loan Policy
Working Hours Policy
Insurance Policy

Next day,

Visited NTDC office for collecting of NOC/Authority letter and acceptance letter as require by custom department after discrepancies in already furnished letter, as assigned, Fax& dispatch to Chief resident representative (C.R.R) WAPDA, Karachi.
Review of Pak Elektron Ltd. SCADA Shalamar project as an assignment and study following documents:
Purchase orders
Advance payment guarantee
Letter of credit (L/C) by ship
Warranty certificate by ABB (Material Warranted)
Manufacturer’s warranty certificate by ABB Switzerland
Bill of Lading
DANMAR lines/CMA CGM certificate that shipment/transshipment on Indian/Israeli flag vessels has not been effected
Packing list
Invoices
A claim of payment request to vendor ABB OY, Finland was filled with finance cell as required.
As require Letter with invoices dispatched to NTDC & NESPAK for claim of receivable 80% net receivables while already adjustment include 10% down payment 5% against acceptance and 5% against performance guarantee.

Next day,

Purchase order receives from Avari Hotel for Low voltage product and forward to LP department.
Review of UCH Power plant, Islamabad Invoices and dispatched it to same address for required process.
Brief me by Ali Mannan (Project analyst) about following commercials use terms:
Pro-rata CIP
Inco term CIP
EXW amount
Inco term FOB
Arrange a meeting with Adnan Javed (Business controlling manager) discussion theme was receivables status.

Week 5

First day,

Visit arrange to GEPCO site area with site in charge Tariq Aziz of ABB to view technical aspects of Project.
Quotation of SVC Project receives from sale officer and sends for approval process to management.
Take a brief overview from Project manager Hannan Shahidabout GEPCO project technical and financial status.
Arrange a meeting with Adnan Javed (Business controlling manager),Hannan Shahid (Project Manager) and Mehboob Mirza (Line Division Manager) subject GEPCO status updates

Next day,

Task assigned to me of making work in progress invoices of Fauji Fertilizer (FF) and dispatch to customer for clearance of receivable amount
It is also require to take a review of Mobilization advance bond by Adamjee insurance company limited in favor of Netracon technologies subcontractor of ABB.In which I also review:
Premium Bill (2) Premium Receipt
I was require to mail Invoices of Project Management of SVC Project to Qaisar Nadeem
Was require to invoices collected from finance cell of Novatex Ltd. Fatima Fertilizer Co.Ltd, Askari cement, Byco Oil and signed from authorized authorities.

Next day,

As require amended Letter of Credit (L/C) of Northern Power Generation Company dispatch to Sohail Hashmi ABB Karachi office.
According to requirement Collection of Sales tax invoices of K-Electric From finance cell.
Draw a letter and visited NTDC office with Bill of Lading, Invoices and Packing list for collecting of Letter require for custom clearance
Assigned to me for Lean Risk Review clearance from logistic cell of PEL project

Next day,

I was assigned to review of custom clearance procedure for imports, study the following topics:

Procedure for Imports
Arrival of goods at customer port
Filing and examination of bill of entry
Assessment of customer duty
Customs clearance /introduction
Arrival of the goods at customs ports.

Following documents are required and provided to the clearing agent for processing:

Invoice of shipment
Packing list
Bill of Lading
Copy of Letter of Credit (L/C) or contract
Filing/Examination of Bills of Entry
White Bill of Entry
Yellow Bill of Entry
Green Bill of Entry
Clearance procedure for white Bill of Entry
Clearance procedure for yellow Bill of Entry
Clearance procedure against Green Bill of Entry
Clearance of goods require immediate release
Basis of calculation of duty
Release of goods
Provisional assessment of duty
Limitation for final assessment
Clearance through Pakistan customs computerized system (PACCS)
Procedure under PACCS
Submission of goods declaration
Difference of opinion over assessment by the custom
Automated customs clearance procedure (ACP)
Exception to the ACP

Next day,

Visited NTDC for collecting of Letter of custom clearance of PPC Insulator with shipping documents ,test report and invoices dispatch to Chief resident representative (CRR), WAPDA
Assigned me Fauji Fertilizer (FF) Invoices dispatch to FF for payment procedure
A claim of payment request to vendor MAICOagainst their invoices was filed with Finance cell, as advised.
As require Descon Engineering Invoices receive from finance cell and dispatch to their address.
Brief me by sales officer Mohsin Ali about Lean Risk Review (LRR) and full cost model (FCM)

Week 6

First day,

I was assigned to receive Oil and Gas Development Guarantee OGDCL advance bank guarantee amendment according to Letter of Credit (L/C) Terms
There is a requirement that return sales tax invoices coordinate with in line to customer K-Electric
As assigned Fatima Fertilizer invoices receive from finance cell
As require take a review and understand of organizational centralized and decentralized culture and flow of work between different department Power System, Finance and Supply Chain Management of ABB
K-Electric invoices preparation and approved by Logistic and Finance departments

Next day,

As required Visit NTDC Chief office Lahore for collecting of signed documents from Adnan Zahid (Deputy Manager) test report of Newage Cables
Quotation prepared and approved by designated authority

And coordinate with in line to customer Network Service International (NSE), Quotation for the supply protection Relay for NOR-31 Tender and Tekno Star co. Quotation of supply of protection relay

Attock cement Pvt Ltd. sale order release from Finance cell after approval of Adnan Javed (Manager Business Controlling) and sent order of acknowledgement to customer

Next day,

Attend a controlling Call addressed from Global Line Business Manager ABB Power system theme the discussion on financial results of PS H1 2014
As require discuss with Mohsin Ali (Sale officer) and understand the Bid/Ask Prices process use by ABB Power system
As assigned cheque receive from Mohsin Ali (Sale officer) of Gharibwal Cement Ltd. and submit to Finance cell and get a receipt after update the status of Gharibwal Cement Ltd all receivable clear with SAS In charge Naveed Mukhtar
According to requirement Hydro Tech Pak (Pvt),Quotation of supply of protection relays for Malakand overview,Recalculate,Check and send for approval purpose to designated authorities of ABB

Next day,

As assigned Quotation of supply of REF 542 plus preparation and approved by designated authorities and coordinate with in line to customer Byco Oil Pakistan Ltd.
A Letter with subject Budgeting Prices of Numerical Protection Relay arrange for customer Resident Engineer WAPDA Power station Mangla
Arrange a Demand draft for Bid purpose after coordinated with customer K-Electric Ltd.

Week 7

First day,

Visited GEPCO Purpose was discussion on CD & Advance Payment. Also discussion and resolve of Tax related issue and Remaining payment Status
Status of GEPCO visit share with Adnan Javed (Manager Business Controlling) ABB Pvt Ltd.
As Require Payment claim submit to finance cell in Favor of vendor ABB Germany for delivery of Shipment as Per Letter of Credit (L/C) Terms

Next day,

Visit NTDC (EHV-1 House) for recovery and commercial issue discussion with finance department
Test Report of Cables with a Letter coordinate with in Line to C.R.R Karachi after discussion with Adnan Zahid (Deputy Manager II) NTDC Lahore

Next day,

As assigned cheque of customers Kohinoor Energy Ltd and Descon submit to finance cell and get a receipt
Direct Payment Request (DPR) release from finance cell

Next day,

Visit Service area of ABB Pvt Ltd at Kot Lakhpat Lahore and ABB Turbocharger office Raiwand road Lahore and see the operations after getting a knowledge of concern departments

Next day,

As assigned update the customer data base and status share with Najeeb Ahmed (CEO) purpose was ABB products exhibition in Karachi

Intern’s Feedback:-

First of All thanks to Almighty Allah that he give me passion and help me to complete these tasks. After that I am to my Parents Prayers and my University that give me a chance to learn in practical manner related to study and my advisor Shehzad Ghafoor who support me in a friendly environment when require. This is my first time experience to do a work in a world famous Multinational Company ABB Pvt Ltd.I get a great exposure after working in this organization. Practical creativity and Problem solving skills increase in me and learn how to communicate in Business transaction within and outside the organization. Now I have heartiest relationship with ABB and wish to do work in Future InshAllah.

a) FINDINGS:

Around 5000 pages contract is made for every project. It includes every kind of communication taken place between the marketing team and client before and after the contract is signed i.e. pre-communication and post communication talks, Price details, material details, duration, penalty clause, bank guarantee etc.

Extra stress is given on Code Of Conduct. This means that each and every employee of ABB is bounded by code of conduct. For example they cannot bribe any one for getting their work done; they cannot accept any kind of gifts from any of their clients etc.

Shortage of Workforce. Every employee in ABB in overloaded with work, and has to work under certain amount of pressure. Every Project Manager is handling around 5 to 6 Projects simultaneously because of which their efficiency is going down.

Work Timings: Reporting time for each and every employee in the office is 9 a.m. and leaving time is 6.pm. but because of their work load employee have no fixed time to return because of which their social life is cut off.

Marketing of LVP products in Pakistan: Marketing of LV products is not done by ABB in Pakistan instead of ABB has unique LV products.

b) RECOMMENDATIONS:

Recruitment of fresh engineers must be done in order to release stress from employee and also to increase their efficiency, otherwise the employees will start losing their interest in their jobs and will for a switch over.

Fixed office timings: As there is fixed reporting time similarly there must be fixed leaving time as well so that employee can enjoy their personal life as well.

Marketing of LV Products: There should be department in Pakistan that handles the marketing related activities of Low voltage products.

Bibliography:

Following web sites, documents and persons were referred for making this project report:

google.com
insideabb.com
wikipedia.com

ABB Magazine 2012-2013
Logistic department
Finance department
Adnan Javed (Manager Business Controlling)
Mohsin Ali (Sales Officer)
Hassan Ejaz (Sales Manager)
Hannan Shahid (Project Manager)

GLOSSARY

Apparatus – Apparatus is a collection of lighting fixtures.

Blend – Is a mixture of two or more different things?

BOQ – Bill Order Quantity

Catalyst – More reaction due to the participant of additional substance.

Co-efficiency – Joint efficiency or cooperation

Commissioning – The authority to carry out a particular task

CRR – Chief Resident Representative

Dialogue – Written or spoken conversational exchange b/w two or more peoples.

Down payment – Advance payment

Emerging – Newly formed

Exw amount – Including charges only up to the seller’s factory or premises. All charges from there on, such delivery, distribution, and commissions, are to be borne by the buyer.

Fostering – To bring up

FOB amount – Free on board (freight on board) price means a price which includes goods plus the services of loading those goods onto some vehicle or vessel at a named location, sometimes put in parentheses after the FOB.

FCM – Full Cost Module

GD – Goods Declaration

Inco term CIP – Pre defined commercial terms

L/C – Letter of Credit

NOC – No Objection Certificate

Offshore – Located or based outside of one’s national boundaries.

Onshore – The process of moving a business operation from overseas to the local country.

Pioneer – One who is first

Propulsion – Is a means of creating force leading to movement?

Pro rata CIP – In Proportion

Robust – Ability of a system to resist change

SAS – Shared Accounting Services

SAP – Enterprise resource planning software

Subtly – So slight as to difficult to deduct

Streamlined – In fluid flows

SVC – Static Variance Compensator

T –

Turnover – Total Sale

Underlie – Be situated under

ABB Pakistan Internship Report

ABB Pakistan Internship Report – CONTENTS

ABB Ltd (ABB) SWOT Analysis

ABB PAKISTAN

BUSINESS SEGMENTS OF ABB

PRODUCT PROFILE

ABB – VISION AND MISSION

ABB AND TECHNOLOGY

A FINANCIAL OVERVIEW

CONTROLLER

PERSONNEL POLICY OF ABB PAKISTAN

MY AREA OF INTERNSHIP

WORK DONE BY ME

b) RECOMMENDATIONS:

Bibliography:

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