PROJECT MANAGEMENT

Final Project

“Export of vegetables in Emirates”

Presented To:
Mr. Khalid Mehmood

Presented By:
Faisal Masud
061265
 Table Of Index

EXECUTIVE SUMMARY .......................................................................................................................... 4

VISION STATEMENT ................................................................................................................................ 5
GENERAL GOALS ..................................................................................................................................... 6
SOLUTION TO PROBLEM ....................................................................................................................... 8
BENEFITS OF PROJECT .......................................................................................................................... 8
ISSUES TO PROJECT ................................................................................................................................ 9
TIME FRAME .............................................................................................................................................. 9
PROJECT STARTING AND ENDING TIME...................................................................................................... 9
SET UP PROJECT OFFICE......................................................................................................................10
LOCATION ..................................................................................................................................................10
COMMUNICATION ......................................................................................................................................10
DOCUMENTATION ......................................................................................................................................10
GROUP/TEAM FOR PROJECT & THEIR RESPONSIBILITIES ......................................................12
DUTIES & RESPONSIBILITIES .............................................................................................................13
PROJECT MANAGER ...................................................................................................................................13
SUPERVISOR 1 ............................................................................................................................................13
SUPERVISOR 2 ............................................................................................................................................13
WORKMAN 1 ..............................................................................................................................................14
WORKMAN 2 ..............................................................................................................................................14
WORKMAN 3 ..............................................................................................................................................14
WORKMAN 4 ..............................................................................................................................................14
SUPERVISOR 3 ............................................................................................................................................14
PLANNING ..................................................................................................................................................15
RESOURCE PLAN ........................................................................................................................................15
WORK BREAK DOWN STRUCTURE .............................................................................................................16
QUALITY PLAN ..........................................................................................................................................18
RISK MANAGEMENT PLAN .........................................................................................................................19
PROCUREMENT PLAN .................................................................................................................................20
COMMUNICATION PLAN .............................................................................................................................21
ACCEPTANCE PLAN....................................................................................................................................22
EXECUTION ...............................................................................................................................................23
MONITOR AND CONTROL ...........................................................................................................................23
TIME MANAGEMENT ..................................................................................................................................23
COST MANAGEMENT .................................................................................................................................23
QUALITY MANAGEMENT ...........................................................................................................................24
RISK MANAGEMENT ..................................................................................................................................24
PROJECT CLOSURE ................................................................................................................................25
DOCUMENTS REQUIRED FOR THE EXPORT PROCESS ...............................................................26
PRELIMINARIES FOR STARTING EXPORT BUSINESS ..................................................................27
FEASIBILITY REPORT ............................................................................................................................31
OTHER CHARGES .......................................................................................................................................32
PRICES IN EMIRATES ..................................................................................................................................33
 Executive Summary

The FM Vegetables Export (PVT) Ltd. will establish on 1st January 2011
with the purpose of export of fresh vegetables from Pakistan. The paid-up
capital of the company is Rs.1 million.

Our company is 100% export oriented company.

Beside handling the export of vegetables, we have large scale infrastructure

i.e., two modern washing, waxing and grading plants and modern cold
storage's of about 1000 tons capacity, moreover we have a packing house in
Lahore to handle our consignments for export.

One of the main reasons behind our success is the quality of our exports.
FM Vegetables Export (PVT) Ltd is fully capable of developing itself as a
fully integrated exporter with the finest quality products and reliable
services.

Transport and distribution are important factors in International trade but

FM Vegetables Export (PVT) Ltd have the ability to move large quantities
of fresh produce from us to the exporters, maintaining the product quality
will be of prime importance.

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 Mission Statement
We are committed towards mutually shared values and believe in achieving
the highest levels of customer satisfaction, with extraordinary emphasis on
the creation of value. The Company demonstrates commitment towards
quality management and continuous improvement principles. In this
fashion, we ensure that our quality goals and growth plans are met.

“Discover the tradition of freshness”

Vision Statement
To be recognized and respected as a leader in quality and value in the
industries we serve, while expanding into emerging markets.

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 General goals

 To provide consistent information of all vegetables.

 To provide reliable and continuous access to vegetables.
 To provide a communication tool that is effective for the tasks to be
performed.
 To optimize resources (e.g. time, staff).
 To promote operations and activities that are not feasible in ordinary
vegetable export companies.

\ Business Problem
A) Post-production losses: According to the statistics compiled by the
Ministry of Food and Agriculture, because of lack of post- production care,
the loss of fruit and vegetable yield suffered by grower's amounts to almost
one-third of the total yield. During 1994-95 alone, the loss of fruit and
vegetable production amounted to Rs16,765 million while the total value
was Rs.47,892 million.

B) Perishability: Almost all related products are highly perishable in nature

and have a very limited shelf life. They cannot be stored for a longer period
unless they are properly harvested and kept in a temperature-controlled
environment (cold storage). Cold storage facilities are not available in the
country that results in very high post harvest losses ranging from 25 to 40
per cent.

C) Seasonality: Most of products are not available all year round rather are
subject to specific availability seasons. The availability season of any one
horticulture product varies among different varieties and different
geographic locations.

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D) Quality: Quality is a combination of agronomic practices, variety
characteristics, grading, processing and finally packaging. The absence of
even a single factor makes the product inferior in quality and thus less
acceptable in international markets.

E) Small-scale production: Small and medium scale producers dominate

production. In particular, vegetable farmers are mostly small-scale
producers and among the orchard owners are both small-sized and
medium-sized producers. Pakistan has not been to supply to buyers of
fresh produce, looking for bulk purchases and uniform quality, as farmers
are of small and medium scale.

F) Supply chain: The supply chain is divided in three exhaustive groups as:

(1) growers; (2) infrastructure providers (processing, grading, packing,

storage, transportation) 3) exporters.

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 Solution to Problem
The Post production losses can be reduced by hiring different supervisors
and workmen specially posted for the caring of the vegetables right from
the purchase to the handing over to the exporter.

Benefits of Project

 Agriculture being the largest sector of Pakistan can help improve

trade balance of payment.
 Convenience of price comparison
 A detail availability of Product line
 Easy to Judge their Preferences

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 Issues to Project
 Competition is intense because a large number of retail outlets were
already open to provide certain facilities
 Country is already trying to recover bad image in international
market.

Time Frame
Project starting and ending time

Starting date 3rd January 2011

Ending date 7th March 2011

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 SET UP PROJECT OFFICE

Location

39 A Block Valencia Town, Lahore

The office will be setup in a house building where in the rooms, the ware
house will also be working and all the services will be finished under
one roof.

Communication
Communication will be through meetings, telephones, internet, and
email making each member update about the progress of the project
one of the member of the team.

Documentation

The whole process and methodology of making documentation is

through proper channel. Every member of the team has to make a
progress report till the scheduled meeting held by project manager and
point each and every issue and risks in the project

BRIEF SPECIMEN CONTRACT FORM FOR SALE PURCHASE

TRANSACTIONS

EXPORTS AND IMPORTS

I. Name and address of the parties.......(state correct appellation and

complete address of the parties)

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II. We, the above named parties have entered into this contract for the
sale/purchase, etc. ....... (state briefly the purpose of the contract) on
this ........(date) at ........(place)..... subject to the following terms and
conditions:
a. Goods ................
b. Quantity ...............Quality................. (Describe the quantity,
quality and the other specifications of the goods precisely as
per the agreement. An agency for inspection/certification of
quality and/or quantity may also be stipulated).
c. Price................ Mode of payment ...................(Quote the price,
terms, i.e. ex-works/FOB(free on board) CIF(Cost, Insurance
& Freight) etc. in the currency agreed upon and describe the
mode of payment i.e. payment against L/C(letter of credit)/DA
(document against acceptance) /D/P(document against
payment)etc. It is also desirable to mention the exchange
rate.)
d. Shipment...............(Specify date of delivery and the maximum
period upto which delivery could be delayed and for which
reasons, port of shipment and delivery should be mentioned).
e. Packing and marking...............(Requirements to be specified
precisely)
f. Insurance .................(State the type of insurance cover
required, i.e. FPA(free from particular average)/WA (with
average)/ All Risks, etc. State also the party responsible for
insurance)
g. Brokerage/Commission ........(if any payable may be
mentioned)
h. Passing of the property and of risk. The property or ownership
of the goods and the risk shall finally pass to the buyer at such
stage as the parties may agree, i.e. when the goods are
delivered at the seller's place of work/pass the ship's rails/are
covered by insurance etc. as per agreed terms).

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 Group/Team for Project & their
Responsibilities

Project Manager

Supervisor 1 Supervisor 2 Supervisor 3

Workman 1 Workman 2 Workman 3 Workman 4

Driver

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 Duties & Responsibilities

Project Manager

Provide all necessary guidelines regarding project and give complete

detailed information about the task and responsibilities to the supervisors.
Project manager provides a layout and hierarchy of all activities which
would be done in the given time frame. Project manager will conduct a
report of work at the end of the day. So he can check progress of project
and rectify the errors if needed.

Supervisor 1

He will make a complete layout of the activities. The main responsibility of

the supervisor is to make sure the availability of the vegetables in the ware
house. His responsibility also includes the purchase of vegetables from the
market and supplying in the storage in time.

Supervisor 2

He will make a list of the services which have to be conducted after the
purchase of the vegetables and before the final shipment to UAE. The
supervisor needs to make a contract with the exporter that they would
deliver the product to the location. He makes a proper arrangement of on
time delivery of goods & services to the shipment area.

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Workman 1

He will be responsible for the washing of the vegetables properly.

Workman 2

Drying and waxing of vegetables will be his prime responsibility.

Workman 3

He will grade the vegetables according to the quality.

Workman 4

The main duty will include the packaging of vegetables separately and in
the safe cartons so that freshness can be safeguarded.

Supervisor 3

Supervisor 3 will be responsible for the transportation of vegetables from

the warehouse to the shipping area.

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 Planning

Resource Plan

In resource plan the whole labor, equipments and materials required for
starting a project lists down. For every project the resources are necessary
and most important because it will fulfill the basic necessities of the
project.

For export of vegetable we will be required the following list include in the
resource plan.

Labour include

o Project manager
o Supervior for store
o Supervisor for services
o Supervisor for transportation
o Workers

For delivery of vegetables requires the following equipments

o Carrier
o Cold storages

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Work Break Down Structure

1. Registration of business

1.1 Register with Export Promotion Council

1.2 Specimen Copy of Agreement

1.3 Acquire an Export License

1.4 Acquire Export Credit Insurance

1.5Arranging Finance

1.6 Rates of Interest

1.7 Understand Foreign Exchange Rates & Protect Against Their

Adverse Movement

1.8 Forward Contracts

2. Getting the house

2.1 Finding the house

2.2 Finalizing rent deed with the owner

3. Renovation of house

3.1 Painting

4. Purchasing

4.1 Purchase of vehicle

4.2 purchase of furniture

5. Hiring

5.1 Hiring of Purchaser

5.2 Hiring of driver

5.3 Hiring of workmen

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 5.4 Hiring of supervisors

6. Purchase of vegetables

7. Storage, cleaning, drying, grading and packaging

8. Planning

8.1 Planning of prices

8.2 Planning of the profit

8.3 Planning of the expenditure

8.4 Planning of the export cost

8.5 Planning of the incomes

9. Handing over the export good to the exporter

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Quality Plan

Like every project quality matters a lot over here because we have to follow
certain limits and within those limits we have to make a good working
environment for the people who can later work in the boundaries of the
organization. Quality means that you have to complete the task in the
defined time as well as the objectives which were defined in the Initiation
process must fulfilled over here and the project must done according to the
need of sponsor.

To maintain quality in the project, proper environment will be provided to

the workers and their supervisors so that they can work heartedly. Every
step right from he initiation to the execution will be monitored by the
specific supervisor appointed by the project manager.

To enhance quality standards internal and external audits will also be in

the streamline in the near future.

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Risk Management Plan

The risk in the execution of the project is that the concept is very old in
Pakistan and there are many exporters present in the market which can
give tough competition. The concept was new so it will take time to cater
the consumer market

 Competition is intense because a large number of exporters are

already providing facilities.
 Economic situation of the country (Pakistan).
 Downfall of the global economy especially in UAE.
 Political situation of Pakistan.
 Increasing inflation rate of Pakistan
 Boosting oil prices

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Procurement Plan

This is a very important area where the project manager has to use some
expertise to give good result. An exporter is mainly a middle man between
the final consumer & producer.. Thus he needs to verify the product quality
and selection of good supplier.

Selection Process Criteria

The vegetables which are selected for the exporter must taken by the
registered distributor of the company. The distributors must be linked by
good trade organizations.

Contract Type

Pakistan has an economic downturn at where the prices of goods are not
stable. Sometimes the price of products goes up with the consideration of
increasing rate of inflation. In the current situation normally distributors
and suppliers are not agree to follow up with a same contract because the
demand of product starts varying as the price goes up. So we made a Time
and Material contract it means that if the price varies, it would make no
harm to the distributors and suppliers as well as to the retailers.

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Communication plan

Communication is very important part of any project. Without good

communication plan, a project cannot be a successful project. Therefore,
communication should be made integral part of any planning.

In this export company all supervisors are bound to contact directly with
the workmen and vice versa. The workmen are bound to report the
supervisor regularly and the supervisor will also report the project
manager on daily basis.

Communication will be through meetings, telephones, internet, and email

making each member update about the progress of the project.

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Acceptance Plan

An Acceptance Plan (also known as an "Acceptance Test Plan") is a

schedule of tasks that are required to gain the customers acceptance that
what you have produced is satisfactory.

It is more than just a task list though. An Acceptance Plan is in fact an

agreement between you and the customer, stating the acceptance tasks that
will be undertaken at the end of the project to get their final approval.

The Acceptance Plan includes a list of the deliverables, the acceptance test
activities, the criteria and standards to be met, and the plan for their
completion.

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 Execution

Monitor and Control

It is the duty of the project manager to monitor and control all the process
and activities taking place in the project. The project manager will monitor
each step carefully and make recommendations accordingly.

Time Management

The most important part of any project is the proper management of the
time. Timely activities of the project always bring success to the final
outcome.

Therefore it is the sole responsibility of the project manager to make all the
schedules and activities keeping the starting and finishing time in mind.

For this purpose project managers can also take help from computer
software so that every step can be done effectively.

Cost Management

Cost Management is the process by which costs (or expenses) incurred on

the project are formally identified, approved and paid. Expense forms
must be approved by the project manager keeping the initial and expected
budget in the mind. And record of every expense should be kept in record
so that it can be referred in future in the time of need.

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Quality Management

Quality Management is the process by which the quality of the deliverables

is assured and controlled for the project, using Quality Assurance and
Quality Control techniques. The main duty of the project manager is to
monitor every step carefully so that quality can be achieved within the
project as well as in the last product.

Risk Management

The project manager must be fully capable of identifying all the possible
risks of the project and also should be able to handle them effectively. A
project risk may be identified at any stage of the project; therefore, project
manager should always be ready for the proper solution of the risk.

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 Project Closure

The most important step of the project cycle is the closure step. In this step
we consider the following activities:

 Assessing whether the project completion criteria have been

met

 Identifying any outstanding items (activities, risks or issues)

 Producing a hand-over plan to transfer the deliverables to the

customer environment.

 Listing the activities required to hand over documentation,

cancel supplier contracts and release project resources to the
business.

 Communicating closure to all stakeholders and interested

parties

key achievements and lessons learnt are documented within a Post

Implementation Review report and presented to the Project Sponsor for
approval.

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 Documents Required for the export
process

o Invoice

o Certificate

o Customs Document

o Transport Document

o Exchange Control Document

o Payment Document

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 Preliminaries for Starting Export
Business
 Setting up an appropriate business organization.
 Choosing appropriate mode of operations
 Naming the Business
 Selecting the company
 Making effective business correspondence
 Selecting the markets
 Selecting prospective buyers
 Selecting channels of distribution
 Negotiating with prospective buyers
 Processing an export order
 Entering into export contract
 Export pricing and costing
 Understanding risks in international trade

Setting up an appropriate business organization

The first and the foremost question you as a prospective exporter has to
decide is about the kind of business organisation needed for the purpose.
You have to take a crucial decision as to whether a business will be run as a
sole proprietary concern or a partnership firm or a company. The proper
selection of organisation will depend upon

 Your ability to raise finance

 Your capacity to bear the risk
 Your desire to exercise control over the business
 Nature of regulatory framework applicable to you

If the size of the business is small, it would be advantageous to form a sole

proprietary business organisation. It can be set up easily without much
expenses and legal formalities. It is subject to only a few governmental
regulations. However, the biggest disadvantage of #138;sole proprietary
business is limited liability to raise funds which restricts its growth.
Besides, the owner has unlimited personal liability. In order to avoid this
disadvantage, it is advisable to form a partnership firm. The partnership
firm can also be set up with ease and economy. Business can take benefit of
the varied experiences and expertise of the partners.

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The liability of the partner though joint and several, is practically
distributed amongst the various partners, despite the fact that the personal
liability of the partner is unlimited. The major disadvantage of partnership
form of business organisation is that conflict amongst the partners is a
potential threat to the business. It will not be out of place to mention here
that partnership firms are governed by the Indian Partnership Act,1932
and, therefore they should be form within the parameters laid down by the
Act.

Exporters Manual and Documentation

Company is another form of business organisation,which has the

advantage of distinct legal identity and limited liability to the shareholders.
It can be a private limited company or a public limited company. A private
limited company can be formed by just two persons subscribing to its share
capital. However, the number of its shareholders cannot exceed fifty,
public cannot be invited to subscribe to its capital and the member's right
to transfer shares is restricted. On the other hand, a public limited
company has a minimum of seven members. There is no limit to maximum
number of its members. It can invite the public to subscribe to its capital
and permit the transfer of shares. A public limited company offers
enormous potential for growth because of access to substantial funds. The
liquidity of investment is high because of easiness of transfer of shares.
However, its formation can be recommended only when the size of the
business is large. For small business, a sole proprietary concern or a
partnership firm will be the most suitable form of business organisation.In
case it is decided to incorporate a private limited company, the same is to
be registered with the Registrar of Companies.

Choosing appropriate mode of operation

You can chose any of the following modes of operations:

Merchant Exporter i.e. buying the goods from the market or from a
manufacturer and then selling them to foreign buyers.

Manufacturer Exporter i.e. manufacturing the goods yourself for export

Sales Agent/Commission Agent/Indenting Agent i.e. acting on behalf of the
seller and charging commission Buying Agent i.e. acting on behalf of the
buyer and charging commission

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Naming the Business

Whatever form of business organisation has been finally decided, naming

the business is an essential task for every exporter. The name and style
should be attractive, short and meaningful. Simple and attractive name
indicating the nature of business is ideal. The office should be located
preferably in a commercial complex, in clean and workable surroundings.
The letter head should be simple and superb providing information
concerning H.O., branches, cable address, telephone number, fax number,
banker's name and address etc. Pick up a beautiful trade name and logo
which reinforces your organisation's name and image.

Open a current account in the name of the organisation in whose name you
intend to export. It is advisable to open the account with a bank which is
authorised to deal in Foreign Exchange.

Selecting the Company

Carefully select the product to be exported. For proper selection of product,

study the trends of export of different items from India. The selected
product must be in demand in the countries where it is to be exported. It
should be possible to procure or manufacture the selected product at most
economic cost so that it can be competitively priced. It should also be
available in sufficient quantity and it should be possible to supply it
repeatedly and regularly. Besides, while selecting the product, it has to be
ensured that you are conversant with government policy and regulations in
respect of product selected for export. You should also know import
regulations in respect of such commodities by the importing countries. It
would be preferable if you have previous knowledge and experience of
commodities selected by you for export. A non-technical person should
avoid in dealing in high tech products.

Making effective Business Correspondence

You should recognise the importance of business correspondence as it is an

introduction with the buyer in proxy which may clinch his response
according to the impression created by the correspondence. For creating a
very favorable and excellent impression, you must use a beautiful letter
head on airmail paper and a good envelope, nicely printed, giving fully
particulars of your firm's name, telephone, telex and fax number etc. Your
language should be polite, soft, brief and to the point, giving a very clear
picture of the subject to be put before the customer.

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Letters should be typed/ computer typed set, preferably in the language of
the importing country. Also make sure that the full and correct address is
written and the envelope is duly stamped. It should also be borne in mind
that the aim of your business correspondence is not only to clinch the
buyer's order but also to obtain the information on the following:

The specifications of the products already in use in the importing country.

Whether your product meets the above specifications. If not, Whether your
specifications offer any distinct advantages in terms of prices, quality,
after-sales service, etc. The import policy prevailing in the buyer's country
(e.g. whether there is any import licensing, any restrictions on remittances,
any pre-qualification for product/supplier, etc.)

The trade practices in the buyers' country with special reference to your
product, information like whether importers import and distribute the
product/high sea sales, whether agent is required to book orders from
actual users etc. In case your item requires after sales service, the manner
in which it can be offered. The prices at which your product sells in the
retail/wholesale market, the duty structure and any other cost element to
arrive at the landed cost. Information on the margins at which the product
is sold. This information will help you in evolving a pricing strategy.

Study of various market segments viz. Importers, Supermarkets,

Government Suppliers, Institutional Sales, Tenders, Suppliers, etc.

The various factors that rule the market viz. Quality, Price, Delivery, Brand
Name, Credit Terms, etc. Role of advertising and publicity and reference to
the product and the country.

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 Feasibility Report

Vegetables Prices per Kilo Quantity Prices

Aalo 37 200 7400
Piyaz 67 200 13400
Tamatar 44 200 8800
Lehsan 212 200 42400
Adrak 122 200 24400
Badh Gobhi 30 200 6000
Phool Gobhi 34 200 6800
Karelay 32 200 6400
Ghiya Kaddo 21 200 4200
Mattar 42 200 8400
Shimla Mirch 77 200 15400
Sabz Mirch 62 200 12400
Lemon 32 200 6400
Bhindi 32 200 6400
Arvi 32 200 6400
Mooli 5 200 1000
Gajar 15 200 3000
palak 6 200 1200
baingan 10 200 2000
khera 52 200 10400
tinday 27 200 5400
methi 8 200 1600
saag 6 200 1200
phaliya 30 200 6000
shaljum 7 200 1400

Total 208400

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Other Charges

Vehicle 700000

Registration 20000

House Registration 5000

House Advance 20000

House Rent 32000

Furniture 10000

Fuel Cost 6500

Maintenance 10000
Monthly wages to workers and
supervisors 76000

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 Prices in Emirates

Prices in
Prices Emirates
Vegetables per Kilo Quantity Prices (1AED=23.4) Prices in Rs. Quanity and Price
Aalo 37 200 7400
Piyaz 67 200 13400 4 93.6 18720
Tamatar 44 200 8800 6
Lehsan 212 200 42400 0 0
Adrak 122 200 24400 14
Badh Gobhi 30 200 6000 0 0
Phool
Gobhi 34 200 6800
Karelay 32 200 6400 10 234 46800
Ghiya
Kaddo 21 200 4200 9
Mattar 42 200 8400 10 234 46800
Shimla
Mirch 77 200 15400
Sabz Mirch 62 200 12400 5 117 23400
Lemon 32 200 6400
Bhindi 32 200 6400 8 187.2 37440
Arvi 32 200 6400 9
Mooli 5 200 1000 5 117 23400
Gajar 15 200 3000 8
palak 6 200 1200 0 0
baingan 10 200 2000 2.95
khera 52 200 10400 5 117 23400
tinday 27 200 5400
methi 8 200 1600 0 0
saag 6 200 1200
phaliya 30 200 6000 6 140.4 28080
shaljum 7 200 1400

Total 208400 248040

NOTE: Prices indicating “0” is the missing prices which data was not available
from the source.

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