Mistequay International (2)

Mistequay International (Pvt) Ltd


Mistequay International is a private limited company incorporated in Pakistan in 2005.

The project was envisioned and initiated under the patronage of leadership team at

Mistequay Group Ltd, a precision machining company based in Michigan USA.

Mistequay has obtained 1144 AISI ISO Standards in Aloay Steel.

Currently it has 100 employees and only one branch in Pakistan. The company came to

Pakistan because it offers similar advantages as India and China in terms of availability

of technically apt human resources and cost structure. Our experience in ramping up

operations has validated our perception that Pakistan is suitable for engineering and

technology based industrial projects.

The business in Pakistan is run by MR. Sohaib Akbar CEO of the company. Company

makes different parts of different machines mostly made from aluminum. These parts are

used in different industrial machines, aircrafts, and vehicles. So far there is no competitor

for the company in this business.

To produce the parts the company needs raw material from its supplier but unfortunately

there is only one company in Pakistan who provide such material but sometimes it is

difficult for supplier to fulfill the order due to shortage of material. It is also difficult for

the company to import material from Europe or America due to minimum order quantity

and economy of scale. Now only option is to import material from India but the

relationships with Indians are strained and reliability of supply chain is not certain.

As custom costs were increasing that leads the company to low profit and high cost. The

custom department has very rigid staff with inflexible attitude.

Human Resource Management 1


Issue

Mistequay received an order to make a part of a machine from French Company. The

French company did not mention the machine which needs that piece, they sent a sample

with the order. Mr Sohaib, owner of the company, accepted the order without having the

knowledge of the machine. Mr. Sohaib consulted with a company in Karachi, Sindh

Traders, for the raw material to be used. They replied that they have the requested

material. Mr. Sohaib placed his order and purchased the material from them and his

company started working on that particular piece. He promised the French company to

deliver the piece in 15 days. So the French company gave them the time of 15 days.

After placing the order Mistequay received raw material from Sindh Traders in five days.

Mr. Bilal Khan production manager in Mistequay received the material and without

checking the quality of the material sent it for further proceeding. After three days they

completed the piece and ran some tests on that to check its durability. All tests proved

that the piece was a failure.

Mr. Bilal checked the whole process where they made the mistake but he was got

surprised that there was nothing wrong with their process then why the piece is not

working as it suppose to. Then he ran some tests on the raw material and he found that

the raw material was defected and they approved it without checking.

Mr. Bilal wrote a letter and fax it to Sindh Traders that the material they sent us was

defected and due to it Mistequay has suffered a loss of 1.5 million rupees. Sindh Traders

simply refused to accept that the material was defected. Haroon Ahmad the owner of

Sindh Traders replied that if the raw material was defected then why did not they told

them when they received the material and now when you have converted it into a

machine’s part, you are saying that the raw material was defected. He also said now there

is nothing he can do for you.



Meanwhile Mr. Sohaib communicated with the French company about the piece, they

replied that the piece is the wheel axle of a plane. Mr. Bilal was surprised and said if it

was a part of a plane then why did not you mention it earlier. They said if they did not

mention it then they must forget it.

Mr. Bilal told Mr. Sohaib about the issue, Mr. Sohaib got worried and contacted Mr.

Haroon again and told him to solve the issue. Mr. Haroon replied the same again saying

he can do nothing about it. During all this process 15 days passed away, the French

company sent a message to Mistequay and ask about their order, Mr. Soahib replied that

due to some complication they have not completed the order and ask for more time but

the French company said they do not have that much time and cancel their order.

Mr. Sohaib got very angry at Sindh Traders and told them that they have suffered a loss

of 1.5 million rupees due to their defected raw material, so you have to bear it and if you

refuse to pay then he will sue Sindh Traders for that. After threatening Sindh Traders Mr.

Haroon replied do not do anything like that and suggest that we should discuss this issue

in a meeting. After having a meeting of 3 hours Sindh Traders agree to pay 1 million

rupees to cover their loss.

Following are the products and customers of Miatequay International (Pvt) Ltd.

Products

Aerospace Hydraulics Industry

Machine Tool Industry

Automotive Industry

Agri and Heavy Equipment Industry

Textile Equipment Industry

Pharmaceutical Industry

Injection/Blow Molding Industry



Customers

Caterpillar

GM

Parker Hannifin

Eaton Corporation

Electromech Technologies

Triumph

Universal Microbore

All the customers are well known around the globe. But a mistake cost them loss of a

customer.



Annexure



Annexure


Documents

Mistequay International (2)