Faisal SCM

7/31/2019 Faisal SCM

1/32


2/32

Joint venture company in 1965

Providing innovative and high quality biscuits

The first food company in Pakistan to promote biscuits as

'food between meals'

Since 1967, the country's leading manufacturer of biscuits

and cookies


3/32

To provide high quality value-added food to contemporaryand future generations

To constantly endeavor for the acquisition of knowledge

and excellence in developing human skills, productinnovations and state-of-the-art technologies

To be a good corporate citizen by giving back to the

community and improving the lives of the underprivileged

To become a partner with the Government in sharing theresponsibility of economic and social uplift anddevelopment of Pakistan


4/32

Believe that no individual is bigger than the institution

Believe in integrity, transparency and commitment as ourcultural ethos

Believe in governance in human face

Protect and promote the cause of the environment

Emphasize on employee welfare

Believe in leading and innovating in all aspects of business


5/32


6/32

Inventory Purchase

General Items


7/32

Raw material is purchased on the basis of forecast made by the

marketing department.

Raw material is purchased after the quotation from supplier.

Packaging material is sourced from the local market depending

on the nature of the finished products.

Once the consignment of the supplier arises; it is recorded in

the ERP system through MNR (Material Receiving Note) and

issued to production through MCN (Material Consumption

Note).


8/32

Items like stationary, computer accessories, engineering

tools needed in electrical, mechanical and civil worker is

purchased.

The category of general items has been distributed to

different official related to nature of job.

Demand note is prepared when there is a need of general

item in the ERP system (Inventory and Procurement

Management)


9/32

Forecast (MKT)Material Planning

Supplier Enquiry

QuotationMailing

Opening of LC

Purchase Order

Raw/Packaging received

QA sampling

RejectedAccepted

Stored through MNR Sent back to supplier


10/32

Safety stock is now becoming a major issue for every

process industry globally, weather in the form of raw

material or finished goods.

It depends how effective a supply chain is for an

organization.

When it comes to raw material, inventory is build up when

prices tend to go high or there is a chance of uncertainties


11/32

Although EBM does employs safety stock methodology but

due to lack of space they are bound to do it.FGS store has a

maximum capacity of 90000 masters cartons but on

average 15000 masters cartons are dispatched on daily basesversus 15000 units of production.

Also transfer is taken from production on daily bases due to

which there is a bottle neck in dispatch of finished goods.

There should be an expansion in FGS so that volume of

finished goods can be increased.


12/32

Plain Sweet Biscuits

o Gluco

o Marie

o Sooper

o Whole Wheat Slice

Nutso Peanut Pik

o Peanut Pista


13/32

Cream Biscuits

o Choco Vanilla Sandwich

o Chocolate Sandwich

o

Lemon Sandwicho Rio Double Treat Chocolate/Vanilla

o Rio Double Treat Strawberry/Vanilla

o Rio Vanilla

Crackers

o Butter Puff

o Marvell

o Saltish


14/32

ReceivingRaw MaterialRM Unload in

Quarantining AreaQA InspectionRejected by QAQA Inspection

RMS StoreFlour/Sugar GrindingCold Room 1 Nuts Cleaning/GrindingMixing Storage Area

Mixing ProcessHopperCutting

Weighing Area

Master Cartons Filling

BakingPacking

QA Packing / CodingQA Inspection

Transfer and Storage in FGSDistributorsRetail Shop

Customer


15/32

Material Receiving

Production Process

Production Step 1 : Mixing

Production Step 2 : Cutting

Production Step 3 : Banking

Cooling (Buffer Zone)

Production Step 4 : PackagingDispatch

Export


16/32

Material Receiving:

o Supply Chain contact approved suppliers and purchase raw material fromthem.

o Supplies come through trucks. In case of some materials, material is not off-loaded without testing.

o Sampling and testing is carried out by QA personnel. Composite sample iscollected to get good results.

o After approval, incoming material is stored in raw material store andpackaging material store, whereas sensitive items such as butter, color,flavors are stored in cold rooms.

o In rest of the cases, Quality assurance performs testing after material is

stored in relevant stores and then accepts/rejects the material.


17/32

Production Process:

o Information for daily production plan is supplied by

marketing and sales department on the basis ofcustomer demand.

o

Keeping in view these factors, production plan is made.


18/32

Production Step 1: Mixing

o There are six different mixing areas.

o For a specific product, ingredients are weighed

(according to pre-defined recipe) in weighing area.

o Mixing is carried out in either vertical or horizontal

mixer, depending upon the nature of the product.


19/32

Production Step 2: Cutting

o After mixing, dough is transferred from hopper to

cutting line.

o There are total 6 lines, which are reserved for different

products.

o Dough passes through the conveyer belt and is shaped

according to product.


20/32

Production Step 3: Banking

o Unbaked biscuits enter the oven, conveyer belt is constantlymoving at a slow pace.

o Different types of heating devices are present in oven whichprovides different temperature.

o Approximately 6 minutes are passed in oven during whichdifferent temperatures treatment are given to biscuits startingform lower to higher temperature.

o Conveyer belt then moves to Buffer Zone.


21/32

Cooling (Buffer Zone)

o After high temperature treatment baked, biscuits are not

very stable and texture is not fully developed, thatswhy they are passed through Buffer Zone for cooling.

o

It is merely an area consisting of relatively lowtemperature. Conveyer belt containing biscuits passes

through this area to cool down the biscuits.


22/32

Production Step 4: Packaging

o After cooling, workers pick the biscuits for conveyer belt andplace them in different gauges set according to Ticky Pack

(TP), Snack Pack (SP), Half Roll (HR) or Family Pack (FP).

o Biscuits are automatically packed in final packaging material(inner sealing) in case of TP, SN, HR, and then are finallypacked in master cartons.

o FP is packed in 3 different packaging material; inner sealing,outer sealing and then finally master carton.

o Master cartons are sealed and are transferred to finished goods

store.


23/32

Dispatch

o Products are stored in finished goods store according to

date are dispatched on FIFO (First in First Out) basis.

o QA performs final checking of finished products, after

which product is dispatched through trucks to differentdistributors.

o Distributors further distribute the product to retailers.


24/32

Export

o Peak Freans products are also exported to different countries of the world including USA,UK, and Canada etc.

o Export order is raised from sales and marketing department.

o Export order contains the name, type, quantity, packing specifications of the product.

o Supply chain and production is enquired whether they can produce the required amountof product in limited time.

o

After their approval, product is manufactured according to specifications defined inexport order.

o Product is packed in containers which are shipped to the destination.

o After customs clearance, containers are delivered to address mentioned on the exportorder.


25/32

Procedure for evaluation of supplier

Procedure for Procurement of Raw/Packaging Material

o General procedure

o Raw material procurement planning and management

o Packaging material procurement planning and management

o General, technical and it items procurement

o Imported items procurement planning and management


26/32

Supplier is evaluated on the basis of range of products andservices he provides.

The supplier is required to furnish details of his quality system.

Supplier performance is evaluated be Supply Chain Dept.

Suppliers end survey is to be conducted upon requirement. Ifthe system/ supplies are not flowing properly then it needs to beaddressed through site survey.

Based on the information gathered supplier is approved /rejected.


27/32

Procurement of Materials is done on the basis of Annual Sales Budget

Raw & Packaging Materials are purchased from Approved Suppliers

only.

Approved Standard Specifications of all materials are given to suppliers

Negotiation of prices of various materials depends on quantity

purchased in a certain period. Rates of various materials vary at differentinterval. For locally purchased items, normally one month credit period

is allowed except for few items which payment is made on delivery. In

case of Engineering / IT / General Items, the payments terms are

negotiated on case to case basis.


28/32

Requirement is computed on the basis of Weekly ProductionSchedule

Purchase Order is issued to Local Suppliers with all terms and

conditions and specifications / credit record

After Receipt of Material QA department collects the samplesof receipt material and verifies them

If the material is rejected by QA, the rejected materials arereturned to the supplier

Bills are received at MM Department from the suppliers and

sent to Finance Department


29/32

Monthly Requirement is generated on the basis ofComprehensive Report on periodic basis

Purchase Order is issued to Local Suppliers with all terms and

conditions and specifications / credit record.

After Receipt of Material QA department collects the samplesof receipt material and verifies them

If the material is rejected by QA, the rejected materials arereturned to the supplier




30/32

Demand Note is received for purchase of General / Technical /

IT equipments.

Required materials are arranged from on spot market buying

Purchase Order is issued

Material is received by concerned Stores




31/32

Requirement for Imported Raw Material is generated on period basis

A letter is sent to supplier or their Agent in Pakistan and Price / Rate isnegotiated

Application is sent for L/C to the bank

Copy of L/C is sent to Supplier through courier / fax.

Negotiable documents are received from our bank

Clearing Agent arranges for clearance of consignment and delivery atEBM

Bill of Clearing Agent is sent to HOD for approval.


32/32

A better ERP system should be implemented which will increase the companies

effectiveness, efficiency and overall productivity

Stricter controls should be put on material handling, storage, its usage and how much

inventory is available and how much need to be ordered this way the company will be

able to reduce wastage levels.

Raw Material should be stored according to FIFO which avoids bottle neck in dispensing

the raw material

Raw Material should be kept at 20 feet away from main entrance, because once the gateopens there are chances of pesticide entering the store.

EBM should deploy self distribution in spite of hiring on contractual bases, this will

leave a positive perception on the consumers mind once they see transport vehicle of the

company.

Documents

Faisal SCM