REPORT ON

TRANSPORTATION MANAGEMENT
AT
PROCON ENGINEERING

Date: 16 April, 2017

Course: Transportation Techniques & Management (SCM 506)

Section: Z

Submitted to: Sir Faiz ul Islam

Submitted by: Muhammad Moeenuddin (15632)

PROCON ENGINEERING (PVT) LTD.
Plot D-54 to D-57, N.W.I.Zone Port Qasim, Karachi 75020, Sindh, Pakistan
Phone: 9221-4750355 / 4750350 / 4750351 / 4750352
Fax: 9221-4750357

Acknowledgment

Note of thanks to our course instructor, Sir Faiz ul Islam, who provided us an
opportunity of visiting an organization as part of our academics. We gained
knowledge about how the Supply Chain Management practices
-Transportation Management in particular - are carried out in an organization
and its vitality in operations. The whole project was of great value to us. This
would not have been possible without our teachers constant guidance and
assistance throughout the term. Thank you very much sir!
Contents

OBJECTIVE OF THE STUDY:.........................................................................5

INTRODUCTION..........................................................................................5
Products:....................................................................................................5
Major Customers (OEMs)...........................................................................6
Major Suppliers (Vendors)..........................................................................6
What is Transportation Management?........................................................7
Benefits of Transportation Management:...................................................7
How it works at Procon:..............................................................................7
INBOUND LOGISTICS:.................................................................................8
CARRIERS:..................................................................................................8
OUTBOUND LOGISTICS...............................................................................9
PROCESS - Overview................................................................................10
CONCLUSION:...........................................................................................11
PROFILES:.................................................................................................11
OBJECTIVE OF THE STUDY:

To understand the term, importance and benefits of Transportation

Techniques & Management in an organization.
To know the current Transportation Techniques & Management
practices and strategies in the one of the leading Auto part
Manufacturers in Pakistan.
To know the Key Performance Indicators (KPIs) of the Transportation
Techniques & Management used in the organization.
To provide valuable input after thorough analysis of the whole scenario.
To organize information in order to facilitate people seeking information
regarding the role of Transportation Techniques & Management in an
existing manufacturing concern of Pakistan.

INTRODUCTION

Master Enterprises has always been at the forefront as an integral

component in the industrialization of country's economy. 1988 saw the
foundation of the Procon Engineering which rapidly grew to be a totally
self-reliant composite manufacturing facility in an area of 48,007
square meters. With strength of over 600 employees comprising of
skilled workers and highly professional management staff, Procon has a
marked technical edge in its field. Moreover, Procon has the
distinguished honour of exporting sports car seats to USA , Europe &
Asia. With the ability to produce 4000 seats in a month on a single shift
basis, Procon has the capability to fulfill any requirements for car seats
or interior A belief that a company's greatest asset is its people has
lead Procon to implement an employee training program designed to
help the worker improve his performance and contribute positively to
the group as a whole. An inherent desire for technical excellence leads
to the achievement of ISO 9002 certification.

The success of Procon is based on the management's philosophy of

involving the employee in the product's quality related decisions at all
levels . Each worker is trained to be a quality inspector, to remove the
defects at the source. Giving the worker responsibility contributes to
their own experience, knowledge and creativity.With time Procon has
certainly proved its mettle as the leading car interior and other
component manufacturer. Future has still more to offer. Procon still has
more to prove.

Products:

1. All types of Automobile seats

2. Sports car seats for Export
3. Reclining Mechanism with Side Assembly
4. Automotive fabrics
5. Roof headlining (moulded, suspended & perforated types)
6. Door Trim (Moulded & Flate Types)
7. Steering wheels (PU-Type)
8. Rear Package Tray
9. Sun visors
10. Fender Liner / Engine Under Cover
11. Sheet Metal / Body Parts
12. Armrest
13. Floor Mats
14. Wiring Harness
15. Cargo Deck
16. Chassis Frame
Major Customers (OEMs)

Today, Procon supplies finished products of high quality to car ,truck, bus,
motorcycle, pickup & tractor manufacturers like:

1. Indus Motors (Toyota)

2. Honda Cars Pakistan Limited
3. Atlas Honda Bikes
4. Pak Suzuki (Cars)
5. Suzuki Motorcycle
6. Nissan
7. Hyundai
8. Kia Motors
9. Hino Pak
10. Yamaha Motorcycle
11. Millat Tractor
12. Al-Ghazi Tractor.

Major Suppliers (Vendors)

 1. Allco Transfer Printers (Pvt) Ltd
2. Allied Engineering and Metal Works
3. Alson Autoparts Pvt Ltd
4. Atif Engineering Works
5. Feroz Industries
6. Green Hardware and Pipe Store
7. Hussaini Works and Engineering
8. Ocean Enterprise
9. Master Enterprise
10. Omar Jibran Engineering Industries
11. Rao Brothers
12. Sagar Enterprise
What is Transportation Management?

Transportation Management is the component of SCM that

focuses on how and when to get raw materials, intermediate
products, and finished goods from their respective origins to their
destinations.
Benefits of Transportation Management:

Increased Customer Service

Warehouse Efficiency
New Delivery Capabilities
Inventory Reductions
Inventory Reductions
How it works at Procon:

Step 1

The customers (OEMs) provide the product requirement schedule of THREE

MONTHS in which the requirement schedule for the coming month is
CONFIRMED and the proceeding two months schedule is tentative. The
deviation from tentative schedule is 3% and not more than that.

Step 2

The Production Planning Material Control (PPMC) department receives the

information (product requirement schedule) which it passes the information
to the various production plants. It then analyzes the materials required and
number of labor hours needed for the production. The material requirement
is communicated to the Store Manager to check the availability of the
materials needed while the employees are informed whether or not over-
time is required.

Step 3

The PPMC then develops a Daily, Weekly and Monthly schedule for the
Production which is displayed on a large white board in every production
plant.

Step 4

In case of shortage of materials (a natural outcome of chase strategy), the

shortage level of each material is clearly communicated to the PPMC which
then develops Purchase Orders for the respective suppliers.

INBOUND LOGISTICS:

Import of Material Process:

Component: Sheet Metal

Importer: Auto Steel International

(807, Uni Plaza, I.I. Chundrigar Road)

Coils/Sheets: Cold Rolled, Hot Rolled Special Steel: Alloy Steel Base
Material: Pig Iron

Origin: POSCO Steel (Pohang, South Korea)

Lead Time: 120 Days preparation. 22 to 30 days shipping (Avg), means order
MUST be placed FOUR months before.
CARRIERS:

1. APL Pakistan

2. Korean Marine Transportation Company (KMTC)

3. Hyundai Merchant Marine HMM (South Korean)

METHOD:

Cost Net Freight

AG Zurich Bank Insurance

COMPANY clears the shipment from the PORT as they are allowed duty relief
under SRO 577(I)/2005 for OEMs else importer have to pay duty.

Received from port and carried to destination via TRUCKS (containers) by the
customer who has ordered it from Auto Steel Int.

Order Limits: MIN: 10ton to 12ton MAX 600ton to 700 ton

Step 5

Delivery Schedule Report: The person then mentions all the deliveries of the
required material due in that day, week and month along with the names of
suppliers and quantities.

Step 6

Some suppliers provide the materials at the company themselves while the
others indicate that materials are ready on which the Procon orders the
collection of material through its transporters ready in the premises (Milk
Run).

Step 7:

Receiving Department, where:

Tagging: the goods are tagged with under inspection label

 Quality Check: the goods are sampled with pre determined ratios depending on type
of material (usually a 10% sample is taken)and are assessed on physical appearance
shapes and standards

Step 8:

OUTBOUND LOGISTICS

Procon Owns 8 Trucks in total with permanent drivers.

Each truck specifically delivers for a particular OEM.

Tucks are CUSTOMIZED in such a way that trolleys are easily moved
in/out and parked inside in the designed slots.

PROCESS Overview

Order Placement
by Customer
(OEMs)
 PPMC
Department

Material Orders
Shortag
Requireme communicat
e
nt ed to
respective
Suppliers
Warehouse Production
Plants
(Store
Manager)
Imported Inventor
Items/mater y check
ials Supply
of Imported Local Press Shops
Items/materi Items/Mater
Local als ials
Items/Mater Lamination
ials
Supply
of
Stitching

Chemical

Finished
CUSTOMERS Goods
Dispatch Area
(OEMs) Inventory

CONCLUSION:

The given information and analysis of the company implies the fact that Procon Engineering has
emerged as a major player in the AutoPart industry, by keeping itself aligned with the latest
information and technologies prevailing in related industry globally through effective forecasting
and projecting of needs. From recognizing the vitality of the transportation management system
in sustainability and growth of a company to adjusting with changing needs - Procon
Engineering has shown remarkable efficiency as theyve opted the Lean Strategy which results in
decrease of holding/carrying cost with the benefit of quality material. The Transportation
Management is one sector which demands constant vigilance mainly due to the fact that it is
associated with cost, especially in such a company like Procon where the material and product
requirement changes every month. . Theyve hired a professional and experienced team to deal
with their Inventory who works day and night to ensure timely and seamless supply of goods to
their customers. Their main focus is not to let the stoppage of production of their customers due
to their fault in any case for which they even have to stretch more than their limit by by buying
out the material and parts from local suppliers (not their regular supplier) as well as delivering
through contract and non-regular transporters. This involves risk of conformance and may
damage their quality standard but they do it in order to ensure timely delivery of products.
Contingency Plans are reviewed weekly no matter if they are used or not. A good relationship
exists between the Production Planning and Material Control Department (PPMC) and the
vendors so that both perform hand in hand to ensure supplibility. There is usually no blame game
when it comes to fulfill the demand despite error on either side. Theyve developed some
effective Key Performance Indicators with time which have played a key role in their continuous
progress and more contracts.
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PROFILES:

Muhammad Mohiyuddin

Technical Advisor to CEO

Group Director Quality Assurance

Maj.(retd) Iqbal Hussain

General Manager
Quality Assurance Department
Production Planning & Material Control

Habibuddin Sharf

Managing Director
Auto Steel International