Pri

The University of Lahore

Lahore School of Professional Studies

Industrial Project, Fall 2020 SEMESTER

(Project Management /Engineering Management) Students (3 Credits)

Instructor: Madam; Ayesha Ahmad Noon

Project Title: RF (radio frequency) based SCADA (Supervisory Control and Data
Acquisition) system for Plant Production

Sponsor Client: Naveena Exports

Company: Pakistan Spring and Engineering Company.

Group Members:

Name of participant Roll Number

Jamshaid Amin MSPM02193048

Salah Hayat MSPM02193049
Inteezar Ahmad MSPM02193029
Abrar Arshad MSPM02193031
1 Abstract

In March 2020, the whole world was under the threat of COVID-19 pandemic. All the
businesses were about to deadly shutdown due to Corona Virus. Food industry, textile
industry, chemical industry, manufacturing industry even pharmaceutical industry also was
effected by this virus. Likewise, the global supply chain of whole world was effected badly
because all the mediums of supply and shipment were totally closed. All the large scale
industries were effected by COVID-19 because there was the shortage of raw material,
tooling, machines and other necessary gadgets. Most of the companies went for downsizing
because they don’t have manufacturing orders and if they have manufacturing orders then
they were short of tooling or machines. Pakistan Spring and Engineering Company was also
one of the large scale industry which had shortage of tooling and some raw materials. This
report will elaborate how Pakistan Spring and Engineering Company behaved to minimize
the effects of this virus. What was their strategy? How much coronavirus effected the supply
chain of Pakistan Spring and Engineering Company?
Contents
1 Abstract..............................................................................................................................2

2 Introduction........................................................................................................................5

2.1 Administration Department.........................................................................................5

2.2 Human Resource Department......................................................................................6

2.3 Accounts and Finance Department..............................................................................6

2.4 Supply Chain Management Department......................................................................6

2.5 Production Department................................................................................................7

2.6 Quality Control Department........................................................................................7

2.7 Health and Safety Department.....................................................................................7

2.8 Maintenance Department.............................................................................................8

2.9 Research and Development Department.....................................................................8

2.10 5S and Improvement Department............................................................................8

2.11 QMS and IMS Audit Department............................................................................8

3 Products of Pakistan Spring and Engineering Company....................................................9

3.1 Springs.........................................................................................................................9

3.2 Sheet Metal Products...................................................................................................9

3.3 Machining Products...................................................................................................10

3.4 Heat Treatment and Gas Carburizing........................................................................10

4 Tooling.............................................................................................................................10

5 Effects of COVID-19 on Supply Chain of Pakistan Spring and Engineering Company. 10

5.1 Raw Material Shortages.............................................................................................11

2 Introduction

Pakistan Spring and Engineering Company is an automobile parts manufacturing company

serving Pakistan for more than 50 years. Pakistan Spring and Engineering Company is
specialized in sheet metal parts manufacturing, Computerized Numerical Control Machines
manufacturing, Spring manufacturing, heat treatment and gas carburizing. Major customers
of Pakistan Spring and Engineering Company are Honda Cars, Atlas Honda Limited, Millat
tractors, Al-Ghazi Tractors, Al-Badar Engineering Company, Yamaha Motors and other local
manufacturing firms. Pakistan Spring and Engineering Company is a large scale company
having more than 2500 employees including 50 plus engineers, 5 accountants and finance
specialists, 3 human resource specialists, more than 10 supply chain experts. Pakistan Spring
and Engineering Company is functional organization and all the employees are made stick
with their functions but this mechanism is only applicable on third level of management. The
upper management and middle management is not limited to their functions but they also
have to participate in major decision making of the organization. For example, shortlisting of
customers and suppliers in not limited to the sales, marketing and supply chain department
respectively but the top management of production department, quality control department,
also participate in such type of decisions. There are more than 1500 different processes to for
manufacturing of more than 250 parts. There is concept of internal and external customer
which also followed to streamline the manufacturing. There are more than 10 departments
which are following

1. Administration Department
2. Human Resource Department
3. Accounts and Finance Department
4. Supply Chain Management Department
5. Production Department
6. Quality Control Department
7. Health and Safety Department
8. Maintenance Department
9. Research and Development Department
10. 5S and Improvement Department
11. QMS and IMS Audit Department
12. Cleaning and Housekeeping Department
2.1 Administration Department
The administration department of Pakistan Spring and Engineering Company is responsible
for providing administrative aid in five areas of a business: information management systems,
human resources, payroll, acquisition and communication. The goal of the administration
department is to keep all departments within a business operating at maximum capacity. The
daily functions of operating a business requires time, precision and expertise. The
administrative department of Pakistan Spring and Engineering Company is able to provide
systematic support in every area of a business without any interruption in services.

2.2 Supply Chain Management Department

The supply chain is a sequence of processes that must be completed to produce and distribute
a product or commodity. This commodity may be goods or services, but either way, there
needs to be a clear manufacturing path for the goods or services to be produced.

The strategic vision of Supply Chain Management Department of Pakistan Spring and
engineering Company is to seen as efficient, cost-effective, innovative, and will produce the
highest quality products when measured by anyone against organizations performing similar
functions in a like environment.

2.3 Production Department

A production department is a group of functions within a business that is responsible for the
manufacture of goods. This can include just a few specialized functions with all other work
outsourced, or a fully functioning department that converts raw materials, assembles
components into finished goods, and packages them. The production department of Pakistan
Spring and Engineering Company is responsible for converting raw materials and other inputs
into finished goods or services.

In between the processes of production, the department works to improve the efficiency of
the production or assembly line so that it can meet the output targets set by company
management and ensure finished products offer consumers the best value and quality.

3 Products of Pakistan Spring and Engineering Company

Pakistan Spring and Engineering Company has more than 500 products of different vendors.
There are four categories of products which includes

 Springs
  Sheet Metal Products
 Machining Products
 Heat Treatment and Gas Carburizing Products

3.1 Springs
Pakistan Spring and Engineering Company is pioneer company of state which manufactures
all type of springs. It manufactures as small springs are of ball point and as large as of train
springs and springs of tanks. The springs of Al-Khalid and Al-Zrar tank are also
manufactured here. Some of the springs are following

 Front Shock Springs of Honda CD-70, CG-125, CD-100 and CD-150 Bike
 Rear Cushion Springs of Honda CD-70, CG-125, CD-100 and CD-150 Bike
 Brake Pedal Springs of Honda CD-70, CG-125, CD-100 and CD-150 Bike
 Head Light and Seat Springs of CD-70, CG-125, CD-100 and CD-150 Bike
 Spring Kick Starter of CD-70, CG-125, CD-100 and CD-150 Bike
 Spring Clutch Lever of CD-70, CG-125, CD-100 and CD-150 Bike

3.2 Sheet Metal Products

Pakistan Spring and Engineering Company has strength to produce sheet metal parts and the
major names of automobiles of Pakistan brands are getting benefit from it. Honda Cars,
Suzuki Cars, Millat Tractors and many other automobile uses sheet metal parts of Pakistan
Spring and Engineering Company. Some of the parts are following

 Muffler of Honda CD-70, CG-125, CD-100 and CD-150 Bike

 Muffler of Honda City 2015 Model and Honda Civic 2019 Model
 Back door of Honda City 2015 Model and Honda Civic 2019 Model\
 Front door of Suzuki Swift 2017 Model, Suzuki Cultus 2017 Model and Alto 2019
Model
 Rear Mudguards of MF-240, MF-360

3.3 Machining Products

Pakistan Spring and Engineering Company is specialized in manufacturing of machining
parts of automobiles. Some parts are following

 Spindle Kick Starter of Honda CD-70 and CG-125 Bike

 Clutch Lever Assembly of Honda CD-70 and CG-125 Bike
  Gear Shaft of Honda CD-70 and CG-125 Bike
 CAM Chain Sprocket of Honda CD-70 and CG-125 Bike
 Pin Millat Tractors

3.4 Heat Treatment and Gas Carburizing

Pakistan Spring and Engineering Company has state-of-the-art plant for heat treatment and
gas carburizing. All the machining parts has to be heat treated after machining because these
parts are soft and cannot be used for operation without heat treatment. Many of the sheet
metal parts require gas carburizing because these parts require nickel or zinc plating due to
which they are gas carburized before plating. Otherwise these parts got rust.

4 Tooling

Every product has many different processes with specific machines and tools. Pakistan Spring
and Engineering Company imports its 80% tooling from different countries including China,
Japan and Korea. The remaining 20% tooling is purchased from Pakistan’s local market.

5 Effects of COVID-19 on Supply Chain of Pakistan Spring and

Engineering Company

Pakistan Spring and Engineering Company has closed its manufacturing on 23 rd March 2020
as there was a sudden lockdown announced by government of Pakistan. After the 7 days of
lockdown it was announced by government to open the manufacturing industry of agricultural
parts because it was the harvesting season. Pakistan Spring and Engineering Company also
manufactures the parts of agricultural machinery that’s why 20% of Pakistan Spring and
Engineering Company started working after the 7 days of lockdown. But the main customer
of Pakistan Spring and Engineering Company are Atlas Honda and Honda Cars which were
totally closed in that days. 80% part of Pakistan Spring and Engineering Company was still
closed.

In the end of 2019 COVID-19 (corona virus) outbreak affected the supply chain process of
different industries in result of which the production of these industries halted to dangerous
level. Effect of this virus proved to be a difficult task to handle. Due to the virus supply chain
faced many difficulties in maintaining proper production of the vehicles.
5.1 Labor Shortage
Due to the imposition of lockdown in respect of the COVID Pakistan Spring and Engineering
Company faced shortage in labor force which caused it to lower its production due to the
unavailability of working people. In result of which not only COVID Pakistan Spring and
Engineering Company were affected but the people also lost their jobs which reduced the
buying power of the people and lowered the demand also which in turn affected the industry
as well.

5.2 Logistics
Due to the unavailability of means of transport within the country or on international level
transportation of finished goods of automobiles was ceased and it was difficult for the
COVID Pakistan Spring and Engineering Company to supply manufactured parts and other
necessary equipment to customers.

5.3 Tooling
Pakistan Spring and Engineering Company was failed to manage tooling for manufacturing of
parts of agricultural machinery because Pakistan Spring and Engineering Company has only
stock of tooling for one month and month was also at end because lockdown was started from
3rd March 2020. As all the national and international flights were closed that’s why there was
no chance to import the tooling. When the local market of Pakistan recognized this thing, the
prices of tooling in local market raised which was also challenge for Pakistan Spring and
Engineering Company.

5.4 Raw Material Shortages

As we have covered previously, earlier declines in demand for most raw materials during the
early months of the coronavirus pandemic caused many suppliers to reduce capacity. This is
now resulting in higher prices and more limited supply of many raw materials, such as steel.
Many automotive suppliers and other manufacturers face complications in procuring enough
raw material, including the prospect of paying higher prices, to meet customer demand.

6 Countermeasures to Overcome Effects of COVID-19

Lockdown was started from the last week of March. Pakistan Spring and Engineering
Company. The 1st step which Pakistan Spring and Engineering Company took to overcome
the effects of COVID-19 was that Pakistan Spring and Engineering Company had paid full
salaries to all employees either they are contract based employees are permanent employees.
This decision was very tough but the result of this decision was none of the employee of
Pakistan Spring and Engineering Company faced the social effects of COVID-19.

The 2nd step of Pakistan Spring and Engineering Company was to give the best and on time
quality product to customer because Pakistan Spring and Engineering Company was facing
shortage of tooling and raw material. None of the other parties were taking the
responsibilities for outsourcing. Now it was decided that raw material and tooling will be
provided by customer and Pakistan Spring and Engineering Company will only help in
manufacturing and timely delivery of finished goods. Some of the suppliers agreed on this
and some of the suppliers agreed on that they will only provide raw material and some agreed
on to provide only tooling. But all the suppliers were keen to know either Pakistan Spring and
Engineering Company is using their tooling and raw material for their parts or for someone
else. After the 30 days of lockdown, all the tooling and raw material were finished and the
good thing was all the orders of were also completed. Once again the Pakistan Spring and
Engineering Company closed because they don’t have manufacturing orders anymore.