INTRODUCTION

The company was incorporated as Asia Poultry feeds (Pvt.) Ltd.

on Oct. 04, 1993 and started its production on Aug. 14, 1994. Since
then the company has emerged as one of the top five poultry feed
producing companies & it has also proved itself as a market leader in
quality by applying the latest scientific concepts in poultry nutrition
and is enjoying a very high reputation as an efficient and a fast
growing company. Our business has been extended throughout all
four provinces of Pakistan and the company owns a most modern,
state of the art feed production plant of Swiss origin with 50 Ton per
hour production capacity. At present the plant is running on full
capacity with a sale of 150,000 Ton per annum. The present
production facility comprises of:

Flat Warehouses (for storage of Raw Material) 100,000 Sq. ft.

Mill Tower 136 feet high.
Administration Block
Quality Control Laboratory
In house Mechanical Workshop
Storage Tanks
56,191 sq. feet carpeted road.
Five concrete silos with a diameter of 55 ft and height 85 ft. are
under construction.
Each silo will have grain storage capacity of 3500 ton.
 All constructions are first class RCC, which meet international
standards
They produce nutritionally balanced feed and for this purpose
our poultry nutritionist are well in touch with the latest nutritional
concepts which are being applied all over the world. All these ideas
are being put into practice along with the local adjustments to fulfill
the specific nutritional requirements.

In our feed we balance all the amino acids in relation to each

other and also to the Metabolizable Energy (ME). Necessary
vitamins, minerals, antioxidants, growth promoters and coccidiostats
are being added to the feed to suit the particular nutritional
requirements of the bird and to achieve excellent Feed Conversion
Ratio (FCR).

Strict quality control is maintained during all stages i.e. from the
purchase of raw material to the final product. We produce constant
quality round the year. A very well equipped in house laboratory is
maintained for this purpose.

We use following ingredients in our poultry feed:

Maize
Wheat
Rice
Sorghum
Rice Polish
Fish Meal
 Guar Meal
Soya bean Meal
Sunflower Meal
Canola Meal
Rapeseed Meal
Cottonseed Meal
Corn Gluten Meal
Di Calcium Phosphorus
Marble Chips
Sugarcane Molasses
Sodium Bi Crab.
Salt
Cooking Oil
Vitamin Mineral Premix
L. Lysine
DL. Methionine
Furazolidone
Zinc Bacitracin
Coccidiostats
Salinomycin
Lasalocid
Clopidol
Diclazuril

ORGANIZATION SETUP

HEAD OFFICE:
 Situated at 359-Shamsabad, Humayun Road, Multan.

CHIEF EXECUTIVE:
Dr. Ghulam Nabi Chaudhry, is an experienced veterinarian
and nutritionist, having vast experience in poultry feed production and
marketing. He is running the company successfully on technical
grounds

FACTORY

Headed by Production Manager who is qualified nutritionist. He

has an assistant who is also a qualified nutritionist. And there is a
quality control laboratory situated at premises of present feed factory,
Industrial Estate Multan.

APPLICATION ON ASIA FEEDS

With the start of each business year the strategic planning is done in
that organization which relates and defines the plans and goals of all
the functional areas of business. For instance, the targets of
marketing, sales, finance and operation are set and strategies to
achieve these targets are defined.
The strategy includes
• Mission
 • Environmental Scanning
• Core Competencies

Mission
The mission of Asia feeds is to operate state of the art plants capable
of producing quality poultry feed.
The company will conduct its operations prudently assuring customer
satisfaction and will provide profits and growth of its share through:

• Production of feed as per the customer’s requirements and the

market.
• Keeping pace with rapidly changing technology by continuously
balancing, modernization and replacement (BMR) of the plant
and machinery.
• Enhancing the profitability by improved efficiency and cost
controls.
• Recruiting, developing, motivating and retaining the personnel
having exceptional ability and dedication by providing them
good

• Working conditions, performance based compensation,

attractive benefit program and opportunity for growth.
• Protecting the environment and contributing towards the
economic strength of the country and function as a good
corporative citizen.
Environmental scanning
The environmental scanning is very important for Asia feeds because
it has to face a large competition in market. The competition is on the
basis of quality, technology.
The key activities in the environmental scanning are:

• Economic trends
• Technological changes
• Political changes
• Social changes
• The availability of vital resources
• The collective powers of buyers and suppliers

In environmental scanning the Asia feeds is giving first priority to

technological changes which are coming in the market. At this time
the company is working with latest plant and fully computerized in all
over subcontinent.
The second priority is given to the economic and the political
condition of the country. As the political and the economic structure of
the country is unstable, the firm has to face a lot of challenges. With
the change of every government the policies are changed. The other
factors listed are also important for the company i.e. the changes in
the excise duty and taxation.

Core competencies
The core competencies of the firm includes
 Technology
 Work force
 Facility
 Market Experience

According to management one of the factor, on the basis of which

they are competing in the market is the technology that is the latest
plant .
The next important thing is the work force according to management;
our employees have been the backbone of the company. They
deserve to be given the right condition and right environment for them
to grow and prosper. Throughout the history of the company,
management has prided themselves in its excellent relationship with
its employees. This bond has been recognized as one of the most
important ingredient of our recipe for success.
Facility of the firm is also one of the core competencies of the firm.
The firm is located at industrial state; Multan where it can easily
approaches to customer and supplier. Similarly the market
experience is an other core competency.

Market Analysis
In market analysis two things are very important to determine:

 Market segmentation
 Need Assessment
Market segmentation
Market segmentation is the process of identifying groups of
customers with enough in common to warrant the design and
provision of products or services that the larger group wants and
needs. While making the market segmentation the following factors
are to be considered:

 Demographic Factors
 Psychological Factors
 Industry Factors

The market segmentation is on the basis of age and type of bird , the
bird of different ages and different types eat different types of feed.
Firm sale feed directly to the distributor and they further sale it to the
farmer.

Need Assessment

The second important thing in market analysis is the need

assessment of the segment and assesses how well the competitors
are addressing those needs. There are two types of needs of
distributor.

• quality
• commission
Competitive priorities
Competitive priorities are the capabilities that relate to the product,
delivery system, and volume factor.

Quality
The quality is one of the competitive priorities of the firm. They are
producing quality poultry feed.

Time
Time is another competitive priority of the firm

 The percentage of the on time deliveries with in a year is 90%.

 The company is providing fastest delivery
FLOW STRATEGY

There are three possible flow strategies, which is organization

can adopt.

FLEXIBLE FLOW STRATEGY

Under this strategy, employee & equipment are organized

around “process”. This strategy is for low-volume or customized
products.

LINE FLOW STRATEGY

Under this strategy equipment & employee are organized

around the “product or service”. This strategy is for high volume or
standardized products.

INTERMEDIATE FLOW STRATEGY.

The strategy is mixture of above both strategies but with some

dominant flows. Product or service volumes are relatively high and
system is capable of handling several customer orders at a time.

Application on Asia feeds

An Asia feed is using line flow strategy.

Raw material inspection

• Cleaning of material
• grinding
• formula entrance (depend upon cost)
• weighing
• mixing
Packing (in case of mesh)
Feeder
Conditioner
Pelleting dye
Cooler
Crumple
Packing (in case of crump)
 Inspection
RM

Cleaning

Grinding

FORMULA

Weighing

Mixing

Packing
feeder
(Mesh)

Conditioner
 Cooler

pelleting
dye

Crumple

Packing
(crump)
STRATEGIES BASED ON FLOWS:

There are three strategies based on three flow strategies.

MAKE-TO-ORDER STRATEGY

It’s for line-flow strategy & high volume production.

ASSEMBLE –TO- ORDER STRATEGY

It’s for intermediate flow strategy. The components exist in

organization but they are assembled on order.

MAKE-TO-ORDER STRATEGY:

It’s for flexible-flow strategy & customized product or services.

Application on Asia feeds

The Asia feeds works under “make-to-stock” strategy and “make to

order” as it holds items in stock for immediate delivery, thereby
minimizing customer delivery times.

Capacity

Capacity is the maximum rate of output for a facility. Capacity

planning in the Asia feeds is based on the customer requirements.
The company has is export orders booked for every six months in
advance on the basis of which the company plans its capacity.

Measure of Capacity
As the firm is producing the semi finished product also using the line
flow so the measure of capacity is the output of the company.

Standard capacity
The peak capacity of the Asia feeds is 1200 bags per hour , each
contain 50 kg. they work for 20 hours a day.

Actual capacity
The effective capacity of the Asia feeds is 1000 bags per hour, each
contain 50 kg. they work for 16 hours a day.

Expansion in capacity

Our existing mill capacity has been fully utilized and we are unable
to cater any new market from this plant. Now therefore we have
decided to expand our business in north Punjab area. For this
purpose, we have purchased 89 Canals of land at Phool Nagger
Bye Pass (District Kasur). North Punjab is a potential market for
poultry feed business. Most of the feed mills are situated around
Lahore due to the fact that strategically this area is considered to
be the most suitable for following three reasons:
Capacity strategies

In capacity two sorts of strategies can be used:

• Expressionist strategy
• Wait and See strategy

Applications

The Asia feeds is using wait and see strategy i.e. they produce the
product when the order came to them. The company produces
feed according to the order comes.

Location

Facility location is the process of determining a geographic site for

firm’s operations. Location is one of the factors in the success of Asia
feeds. The company is located at industrial state, Multan . The
primary reason to locate the facility here is that the basic
infrastructure is available there. The other reason includes proximity
to supplier and resources, proximity to market etc.

Supply Chain Management

Supply-chain management aims at synchronization of a firm’s

functions and those of its suppliers to match the flow of materials,
service and information with customer demand.
Inventory

As the Asia feeds is a manufacturing firm so its inventory consists of:

• Raw material
• Work in process
• Finished product
• waste

The raw material that the firm is using for it production feed. The
material which remains in process is termed as work in process. The
final product which is ready for selling is called finished product. The
finished product of the company is poultry feed. Waste includes that
material which is defective.

Material management

The Asia feeds is using segmented structure in order to manage its

material

Segmented structure

The responsibility to manage the material in Asia feeds lies with three
departments

 Purchase Department
  Production Department
 Distribution Department

It is the prime responsibility of the purchase department to purchase

quality raw material at minimum price, so they purchase on seasonal
basis. Then it is the responsibility of production department to
produce right product with standard quality and then the responsibility
of distribution department is to distribute the product at right time and
in right condition.

Purchasing

Supplies of raw material

For the purchase of the raw material they go to farmers in seasons
and make purchase for the whole season.

SUPPLIER RELATION

Asia feeds and its suppliers have “cooperative orientation” between

them. Its main reason may be that Asia feeds does not focus on price
mainly but quality and Asia feeds is the only, which got biggest
customers due to its suppliers normally.

DISTRIBUTION

The distribution system of Asia feeds is very crucial in its success.

Transportation Mode

Road is the only transportation modes which is being used

by Asia feeds. In order to supply the product trucks are used.

Loading of raw material

For the loading of raw material trucks are being used.

INVENTORY MANAGEMENT

Inventory management is also a one of the important concern in the

success of Asia feeds. Inventory is created when receipt of materials
and finished goods exceeds their disbursement.
In Asia feeds the following types of inventory remains whole the year.

• Cyclic inventory
• Anticipation inventory
• Safety stock inventory

The cyclic inventory at Asia feeds is directly related to the order size.
The firm also manage it anticipation inventory. The firm also
maintains a safety stock to meet the uncertain situation. For the
demand the firm maintains safety stock of four days.
Inventory Control System for Independent Items

For managing the inventory the following systems can be used:

 Continuous review system

 Periodic review system

Continuous review system

A continuous review system also called reorder point system or fixed

order quantity system, it tracks the remaining inventory of an item
each time a withdrawal is made to determine whether it is the time to
order.

Periodic review system

Another alternative to inventory control system is the periodic review

system also called fixed interval reorder system or periodic reorder
system. Such a system cans simply delivery scheduling because it
establishes a routine.
Application on Asia feeds
The Asia feed is using periodic review to control its inventory. The
duration to review the inventory is one day. After each day the
company review it inventory and the according to the situation they
place the order.

Aggregate planning

Aggregate plan is a statement of its production rates, work-force

levels, and inventory holdings based on estimates of customer
requirements and capacity limitation”.
This production plan is very important for the smooth production of
Asia feeds. As the firm is a manufacturing organization, they call this
aggregate plan a production plan. They make this plan for the period
of six months. When the advanced orders came to the company then
on this basis they set their production. The aggregate plan is further
divided into months.

RELATIONSHIP TO OTHER PLANS

First of all, the top management makes the business plan. In this
plan the income, costs and profits are projected. The top
Management set the company’s production plan specifies
corresponding product family production rates, inventory levels, and
work-force levels. The Master Production Schedule specifies the
timing and size of production quantities for the product. Then the
Planners make the other plan that is called Material Requirement
Plan. In MRP the all the raw material is accumulated for a completed
product family.

Managerial inputs

In order to make the aggregate plan information of the entire

department is required. For instance when the orders came to the
company, the distribution manager tells about the customer needs,
the finance manager make the arrangement for finances, the labour
manager tells about the labour market conditions and the production
manager makes the production schedules and then the aggregate
plan is made.

Objectives of the Firm

• The typical objectives of the firm are:

• To increase the profits
• To minimize the cost
• To maintain the quality
• To minimize the delivery time

But these objectives cannot be achieved simultaneously. There must

be a trade off between them.
In order to make a trade off two types of alternatives can be used:
 • Reactive alternative
• Aggressive alternative

Reactive alternative

Reactive alternative are those which respond to a given demand

pattern. The reactive alternative includes the modification of

 Work force level

 Overtime
 Vacation schedules
 Inventory level
 Subcontracting
 Planned backlogs

Aggressive alternative

Aggressive alternatives are the alternative that adjust the given

demand pattern. These alternatives modify the demand and
consequently resource requirement.
This alternative includes
  Complementary product
 Creative pricing

Applications

The Asia feed is using the reactive alternative. When the demand
comes then the company makes the production on the basis of
judgement. The firm never use overtime for additional production

Planning strategies
The aggregate planning strategies includes
 Level strategy
 Chase strategy
 Mixed strategy

Level strategy
A level strategy maintains either 1) constant work force or 2) constant
production rate.

Chase strategy
A chase strategy matches the demand during the planning horizon by
varying either 1) workforce level or 2) output rate

Mixed strategy
Mixed strategy lies between the level strategy and chase strategy.

Applications
The Asia feed is using a level strategy i.e. they meet demand with
constant production and workforce. If in some case company
produces more then its capacity or requirement then that feed is
stored.

Material requirement planning

The material planning is made for the items that have dependent
demand i.e. the demand for the raw material. When the orders came
to the company of the finished products then the production
department determines that how much raw material is used to
product the required product.
The basic ingredients of material requirement planning are:

 Bill of material
 Master production schedule
 Inventory record

Bill of Material
The bill of material is a record of all components of an item, the
parent component relationship, and usage quantities. In Asia feeds
the bill of material is designed by the nutrition specialist and put it in
the form of formula in the production.

Master Production Schedule

The master production schedule specifies that how many end
items are to be produced within a specified period of time. In the
M.R.P system at Asia feeds the Marketing Manager receives the
amount of the orders form the customers and then he informs the
production department for the production of the required products
ordered by the customers. Then the production manager prepares
MPS

Inventory record
The inventory records the future into time buckets. It basically shows
the item’s lot size policy, lead time and various time phased data. The
inventory record of Asia feeds shows that the company orders for raw
material in different quantities at different situation. The lead time is of
3 to 4 days.

Total Quality Management

The Asia feed is giving top most importance to its feed quality.
In order to provide the quality the management is taking following
steps.

INDIVIDUAL DEVELOPMENT
Asia feeds are very much positive in individual development. They
train their workers with new works methods and train the new worker
in current practices. They also give emphasis to perform related jobs
so as to help other workers to understand that how quality problems
of some workers can cause problems for other workers.

AWARDS AND INCENTIVES

The Asia feed gives their workers the both monetary incentives and
non monetary awards. They pay their workers the merit pay and
bonuses to stimulate the quality.

EDUCATION AND TRAINING

The management educate and train their workers to increase the

performance at every level. The organization educates the new
workers by joining them with seniors so that they can gain knowledge
and experience from them.

CUSTOMER SATISFACTION

In order to get maximum market share all operations are directed to

satisfy customers where the customer define the quality in term of
FCR i.e. feed conversion ratio (how much weight of bird increase
after eating 1 kg of feed).

SYSTEM IMPROVEMENT AND DEVELOPMENT

The management has taken many steps, like purchasing new

machineries in order to continually improve their system and the
quality of feed. Employees are trained from time to time and new
technologies are adopted.

EMPLOYEE INVOLVEMENT

With TQM, everyone in Asia feeds is contributing to the overall

improvement of quality. Employees are involved in all matters
relating to quality, purchasing and other functions of the company. It
results in good decision making and more effective improvement by
bringing more minds to bear the situation. For employee involvement
the Asia feeds has changed their culture. The employees are involved
in the every function of the organization from working to the decision
making.

CONTINUOUS IMPROVEMENT
The management is continuously seeking ways to improve the
operations of the organization. The company give friendly
environment in which workers can give their ideas to improve the
process.
PROCESS DESIGN

They have designed their processes to produce the high quality

products. They used to purchase new machinery and technology to
upgrade their process. The operations mangers and designers work
closely together in the initial phases of product design to ensure that
production requirements and process capabilities are synchronized.

PURCHASING CONSIDERATIONS

Asia feeds try to purchase quality material and other things used in
producing their products. When raw material reaches the factory then
quality inspection take place. First of all sample is taken and
physically tested, if there is a doubt then different confirmation test
taken in lab theses are chemical test microscopic test etc. The
qualities of their inputs have a strong effect on the quality of their
products. The company not only emphasize on cost but also on
speed of delivery of the supplier.