History

PepsiCo is a world leader in convenient snacks, foods and beverages,

with revenues of more than $39 billion and over 185,000 employees.
The company consists of PepsiCo Americas Foods (PAF), PepsiCo
Americas Beverages (PAB) and PepsiCo International (PI). PAF
includes Frito-Lay North America, Quaker Foods North America and
all Latin America food and snack businesses, including Sabritas and
Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North
America and all Latin American beverage businesses. PI includes all
PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East
and Africa. PepsiCo brands are available in nearly 200 countries and
generate sales at the retail level of more than $98 billion. Some of
PepsiCo's brand names are more than 100-years-old, but the
corporation is relatively young. PepsiCo was founded in 1965 through
the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in
1998 and PepsiCo merged with The Quaker Oats Company, including
Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and

preference -- from fun-for-you items to product choices that
contribute to healthier lifestyles. PepsiCo’s mission is: “To be the
world's premier consumer “Products Company” focused on convenient
foods and beverages. We seek to produce healthy financial rewards
to investors as we provide opportunities for growth and enrichment to
our employees, our business partners and the communities in which we
operate. And in everything we do, we strive for honesty, fairness and
integrity.” (www.pepsico.com)

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PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York. The

seven-building headquarters complex was designed by Edward Durrell
Stone, one of America's foremost architects.

Haidiri Beverages Private Limited, Pakistan

The Haidiri Beverages Group was set up in 1979 and is Pepsi's sole
selling agent for District Rawalpindi and Islamabad. It is based in the
CDA Industrial Triangle, Kahuta Road, Islamabad. It manages the
supply for several wholesalers, retailers, restaurants, hotels and
other such food outlets. In order to achieve the projected sales
targets effectively, the organization ensures a comprehensive
strategic alignment with the overall Pepsi Cola’s business strategy.
Haideri Beverages’ primary functions are to conduct a systematic
manufacturing and supply of the product without any tactical flaws.
Backed by a powerful competitive strategy and empowered by some
effective supply chain strategies, the group has been managing an
effective supply chain through out the region. It has set up a
sophisticated manufacturing and storage plant in Rawalpindi with
multiple production units and huge production capacity. Haidiri
Beverages has different management departments dealing with
specialized Marketing, Human Resource, Information Technology and
Supply Chain Processes. In this section we conduct a brief analysis of
the basic supply chain management functions of Haidri beverages.

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Understanding the Supply Chain of Pepsi

The objective of every supply chain should be to maximize the overall

value generated. The value of a supply chain generates is the
difference between what the final product is worth to the customer
and the costs the supply chain incurs in filling the customer’s request.
(Chopra, Meindl 2006)

Supply Chain Strategy or Design:

During this phase a company decides how to structure the supply chain
over the next several years. The company makes long term decisions
in regards to location and capacities of production and warehousing
facilities, the products to be manufactured or stored at various
locations, the modes of transportation to be made, information
systems and so on. The supply chain design is very expensive to alter
on short notice and supports the company’s strategic objectives. In
order to ensure a good supply chain strategy, Haidri Beverages plans
two years in advance. It has several contracts with manufacturers,
and receives raw material on a convenient basis. The company also
decides where production plants are to be placed. Haidri has
production plants at Peshawar and Islamabad. The production process
is 65% automated. The company has to provide and manage transport
for the delivery of products as well as the arrangement of third party
services for the procurement of products. The shipping department
handles orders and the transport department decides the vehicles for
safe delivery.

Material planning and sourcing is carried out as well. Sources of supply

of raw material both local and foreign are identified and terms and

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conditions are negotiated. Capacity planning is also done at this stage.
Sales forecasting and production planning depends upon the capacity
of the organization with respect to:

1. Production (180,000 converted 250 ML crates per day).

2. Storage: Raw and packing (80,000 Sq Ft)

3. Storage: Finished goods (120,000 Sq Ft)

Haidri has a procurement budget of Rs 2.9 billion. Approved suppliers

cannot go beyond this budget. The supplier is audited by the most
cost efficient quality control department. Distributors are also
decided by the company, keeping in mind past performances. The
company has increased its distribution capacity from one to six filling
lines during the last few years lending it a competitive edge over Coca
Cola.

Supply Chain Planning

As the above configurations have been set, planning must be done

within the above stated constraints. The goal of planning is to
maximize the supply chain surplus. Planning establishes parameters
within which a supply chain will function over a period of time.
Companies start the planning phase with a forecast for the coming
year of demand. Pepsi carries out sales forecasting for local demand
as well as for export purposes to countries such as Afghanistan. The
annual sales target is conveyed to the supply chain department of
Haidri Beverages. Planning is carried out on a monthly, weekly and
daily basis at Haidri.

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Supply Chain Operation:

Company makes decision regarding individual customer orders. The

goal of supply chain operations is to handle incoming customer orders
in the best possible manner. During this phase, firms allocate
inventory or production to individual orders, set a date that an order
is to be filled, generate pick lists at a warehouse, allocate to shipping,
set delivery and so on. There is less uncertainty about demand. At
Haidri, the production, sales and supply chain departments get
together to decide the inventory usually on a weekly basis.

Process views of a supply chain:

The processes in a supply chain are divided into a series of cycles each
performed at the interface between two successive stages of a supply
chain.

Cycle View of Supply Chain: There are five stages in a

supply chain (Supplier Manufacturer Distributor Retailer Customer)
and four supply chain process cycles (customer order, replenishment,
manufacturing, procurement cycle).

Supplier Manufacturer Distributor Retailer Customer

Figure 1

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Push/Pull View of Supply Chain:

With push process execution is initiated in anticipation to a customer

order. Pepsi has a seasonal demand. Just in time concept is applicable
in non-seasonal period and not applicable in seasonal period. All
processes that are part of the procurement cycle, manufacturing
cycle, replenishment cycle, and customer order cycle are push
processes.

Pepsi Sales order and processing: The Shipping Manager receives sales
order from Sales Team, distributors through telephone, fax & email
one day before dispatch. The sales are made to base distributors on
advance payment against orders then shipping manager plans according
to the demand of distributors on daily basis.

Competitive and Supply Chain Strategies

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There are three major sustainable advantages that give PepsiCo a
competitive edge as they operate in the global marketplace:

1. Big, muscular brands,

2. Proven ability to innovate and create differentiated products

and

3. Powerful go-to-market systems.

PepsiCo's overall mission is to increase the value of shareholder's

investment. They do this through sales growth, cost controls and wise
investment of resources. They believe their commercial success
depends upon offering quality and value to their consumers and
customers; providing products that are safe, wholesome, economically
efficient and environmentally sound; and providing a fair return to
their investors while adhering to the highest standards of integrity. A
customer while purchasing a bottle of Pepsi will consider product
quality, price and availability of the product. Thus, Pepsi in Pakistan
particularly focuses its competitive strategy as to producing
sufficient variety, reasonable prices, and the availability of the
product.

Marketing and Sales Strategies:

PepsiCo has developed the national marketing, promotion and

advertising programs that support its many brands and brand image;
oversees the quality of the products; develops new products and
packaging, and coordinates selling efforts (PepsiCo 2000 Annual
Report).

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Supply Chain Strategy

Step 1 : The Customer and Supply Chain

Uncertainty

a) Identifying customer needs:

Haidri needs to understand the customer needs for each targeted

segment and the uncertainty the supply chain faces in satisfying these
needs. As Haidri deals with beverages, which are a fast moving
consumer good, it knows the requirements of consumers. Pepsi is
considered as a drink which is refreshing during summer, and taken
regularly during winter, with demand hiking around festivals such as
Eid and occasions such as weddings. Haidri caters to both cities and
rural areas. It understands the needs of both. As demand for
beverages is seasonal, the quantity of product needed for each lot is
taken care of with past demand in mind. Consumers generally require a
small response time, high service level, reasonable price and some
variety (for example health conscious people favor diet versions of
sodas).

b) Demand uncertainty and implied demand

uncertainty:

Demand for Pepsi varies by product. For example there is a greater

demand for “Pepsi” as compared to “Mirinda Apple,” which is new.
Hence, Pepsi has a low demand uncertainty as compared to “Mirinda
Apple.” The product “Pepsi” is approaching its maturity stage in the
PLC whereas “Mirinda Apple” is in the introductory stage.

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Pepsi’s implied demand uncertainty varies with the product type as
well as the customer needs. Due to decreased lead time (the customer
may purchase its competitor’s product if Pepsi is not available at that
time), need for greater variety and higher level of service, implied
demand uncertainty increases. This is true for cities where unmet
demand by Pepsi is met by Coca Cola, Amrat Cola and other such
competitors.

Supply uncertainty is also affected by new products. New products

have higher supply uncertainty.

c) Uncertainty for the capability of the supply

chain:

After determining the demand uncertainty it is important to take a

look at the uncertainty resulting form the supply chain. “Pepsi” is not a
new product and its market is going towards maturation. The company
does not have many difficulties in delivering a product and has a fixed
delivery schedule (on daily basis). “Pepsi” hence has a predictable
supply and somewhat uncertain demand depending on market
conditions.

Predictable supply & Highly

uncertain demand or uncertain
Predicta uncertain supply & supply &
ble predictable demand or demand
supply somewhat uncertain
and supply & demand

PEPSI

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Step 2: Understanding the Supply Chain
Capabilities

Highly Highly
Efficient Somewhat Somewhat Responsive
Efficient Responsive

In towns PEPSI in cities

The efficiency and responsiveness varies according to the consumer

needs, implied demand uncertainty, product type and market
segments. In remote areas the company focuses on being somewhat
efficient as other modes of transportation could turn the product to
be highly expensive. According to the company it does not deal with
distributors who do not have 20 to 25 vehicles, therefore as the
company has focus on cost reduction, uses slow and inexpensive modes
of transportation, the demand is certain, and uses economies of scale
in production, the product Pepsi is more inclined towards being
somewhat efficient. In cities, the company focuses its attention on
being highly responsive as Pepsi has to meet short lead time, meet a
high service level, handle a large variety of products and respond to
wide ranges of quantity demanded especially at the retail stage.

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Step 3: Achieving the Strategic Fit

Making one stage more responsive allows the other stage to focus on
being more efficient. The Pepsi supply chain assign different roles to
its different stages, the company has to decide either to transfer the
responsiveness to the manufacture stage or to the retailer stage.
While discussing the Pepsi’s supply capability it is seen that Pepsi
tends to be more responsive in the cities and a bit less in towns.
Therefore, transferring the responsiveness to the retailer and
distributor, allowing them to face the higher implied demand
uncertainty. This in return allows the manufacturer and supplier to be
more efficient. At the same time, multiple beverage types contribute
to a broader product portfolio causing Haidri to adjust its strategies
accordingly; tailoring the supply chain to best meet the needs of each
beverage demand.

Expanding Strategic Scope of Pepsi:

In Pepsi the agile inter-company scope of strategic fit is essential

because the competitive playing field has shifted from company-
versus-company to supply chain-versus-supply chain. Strategic scope
must cover all boxes, at least at the supply chain end. The agile inter-
company scope of strategic fit requires the company to evaluate every
action in the context of the entire supply chain. As competition
increases, Pepsi is expanding their strategic scope as they are
increasing their product line by adding “Pepsi Max,” “Mountain Dew”
and “Mirinda Apple” to their beverage line.

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Drivers of Supply Chain Performance

Connecting the drivers with PLC Supply chain

strategy:

Within the twin cities of Islamabad and Rawalpindi, Pepsi mainly

follows a combined cost effective responsive supply chain strategy.
The intensive supply of the product is being ensured throughout the
twin cities’ market with the help of several distributors. Pepsi has
been able to reach out to all market segments without any delays
because of its business maturity and comparative business strength.
It has the highest beverages sales volumes as compared to any other
beverage in Rawalpindi and Islamabad. Although there is an
overwhelming stability in the product market yet there are some
remote areas where there are conditions for a possible stock out due
to their remoteness. For addressing this risk Pepsi has financed
different whole sellers in those areas to respond immediately. Pepsi in
Islamabad and Rawalpindi and in most parts of Pakistan can be rightly
placed into the category of an “ever growing mature business.”

Responsiveness: In case of Fast Moving Consumer Goods (FMCGs) that

target a huge segment of market, responsiveness is a deciding factor
for the organizational success. In a typical Pakistani market, quick
response enables supply chains to meet the customer demands for
ever-shorter lead times, and to synchronize the supply to meet the
peaks and troughs of demand. Pepsi’s supply chain has been able to
reinforce a greater response to the uncertain and unpredictable
market behavior only because it has multisided processing facilities
and corresponds to a systematic production network with both
dedicated and multi-product facilities. The major focus is to
determine the processes that are to be integrated in the supply chain

12
network with their corresponding suppliers, distribution centers and
the associated transport links between them. The major
considerations in the design are the supply chain responsiveness and
profitability.

Framework for Structuring Drivers:

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The framework is based on a motive to create strategic fit between
the competitive and supply chain strategy. Pepsi Competitive strategy
stands to provide a large variety of products very quickly;
simultaneously the supply chain strategy stands to materialize the
availability of that variety of products. Pepsi mainly follows a
responsive supply chain strategy. Alignment of Pepsi’s business
strategy to a corresponding supply chain strategy is achieved through
proper deployment of supply chain drivers. Pepsi has to deal with
different set of market segments simultaneously. Most of the time
the approach needs to be responsive enough to grow substantially to
be able to compete with uncertain demand, while in many areas
demand is certain and very much predictable, so there it incorporates
an efficient supply chain strategy.

The Inventory Driver:

Haidri has established a comprehensive plan to ensure the sufficient

inventory levels to keep up with the market demand effectively. For
this purpose the main inventory storage has been established within
the main plant area Kahuta road, Rawalpindi. It has the storage
capacity of 120,000 Sq Ft and the area is being utilized both
horizontally and vertically. The shipping department is in charge for
storage and subsequent displacement of the product orders. The
inventory capacity is being utilized and maintained in coordination with
the production department and is based on the term production
estimates. Apart from the main storage house, Haidri has established
more than 10 storage facilities nearer to the market in Rawalpindi and
Islamabad. Increasing inventory makes the supply more responsive to
the customers. At Haidri Beverages, managers bear a high inventory
cost to ensure maximum levels of inventory and to reduce the
production and transportation costs.

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The Transportation Driver:

Transportation driver has a large impact on the responsiveness of

the business. Faster transportation of the products allows Haidri to
maintain sufficient levels of stock on the shelves. Haidri’s
transportation network is the collection of routes, modes and
locations along which the product can be shipped. With the help of
several distributors the product is being supplied to the market.
There are multiple supply and demand points within the twin cities
which cater to the market demand. Haidri decides and selects
different modes of transportation having different characteristics
with respect to the speed and size of shipment. The transportation
network has been designed with a view to ensure responsiveness and
boost the availability of the product. For Haidri using fast mode of
transport increases responsiveness as well as the transportation cost
but lowers the inventory holding cost.

The Information Driver

Connects all the supply chain stages effectively allowing them to

coordinate and maximize total supply chain profitability. It is also
crucial to the daily operations of each stage in the supply chain. The
unit manager utilizes the production scheduling system that is based
on information on demand to create a schedule that allows Haidri
Beverages to produce the right amount of product. The warehouse in
charge uses this information to create visibility of the warehouse’s
inventory items. Information sharing helps this firm improve its
responsiveness within the market. It helps to accurately forecast
demand and realize frequency of updates, measurements of the
effects of seasonal factors influencing the production, measurements
of variances from the plan and the ratio of demand variability to
order variability. Timely and accurate information enables the

15
distribution managers to fix potential stock out or oversupply
problems.

The Facility Driver

In order to ensure the responsive strategy implementation, the role

of facilities is of prime importance in the supply chain of Haidri
Beverages. Pepsi has established a flexible and a product-focused
production facility in order to respond effectively to the variability in
demand. The storage facilities are designed in order to provide
maximum possible capacity for the inventory. The large amount of
excess capacity allows the facility to be very flexible and to respond
to wide surges in demands placed on it. In alignment with the
responsive supply chain strategy the facilities have been
geographically located close to the market.

Distribution Channels

 Direct distribution:

o Delivery of post mix cylinders & handling of key accounts:

The key accounts are different wholesalers, restaurants and
hotels like Pizza Hut, KFC, Metro which serve as a place for
key sale. These are known as national key accounts and are
very important in terms of competition.

o Export Parties

 Indirect distribution:

o Through Base market distributors

o Through Outstation distributors

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Before delivering the product some certain guiding principles are
followed for the assessment of distributor’s capability by Haidri:

 Applicant must have 20 to 25 vehicles (depending on the area).

 Applicant must have 20,000 cases of empty bottles.

 Applicant must deposit Rs.1, 000,000 as a security.

Haidri uses light and heavy vehicles for safe delivery of goods to the
distributors for timely delivery. It follows the just in time concept
which is applicable in Non-seasonal period and not applicable in the
seasonal period.

Review and Revise Distribution:

This is usually done through taking over key revenue areas. If the
distributor does not achieve its sales target, the distribution is taken
back and an addition of new distributor is done. Therefore Pepsi’s
supply is low supply uncertainty. Some of its supply source capabilities
are:

 Less breakdowns

 High quality

 Flexible supply capacity

 Mature production process

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Factors Influencing Distribution Network
Design

At the highest level, performance of a distribution network should be

evaluated along two dimensions:

1. Customer needs that are met

2. Cost of meeting customer needs

The customer needs that are met influence the company’s revenues,
which along with cost decide the profitability of the delivery network.
While customer service consists of many components we will consider
those measures that are influenced by the structure of the
distribution network for Pepsi.

Response Time for Pepsi is minimal as the direct customers

for Pepsi are the retailers and then the consumers. So with over 30
delivery trucks in Islamabad, Pepsi is readily available to every
retailer within 30 minutes. Rawalpindi has 6 warehouses from where
the supply to the market is done through Shehzore or small cars.

Product Variety in Pepsi is large. They have made their place

in the market with their unique product line ranging from chips to
water. As we are dealing with Haidri, the product variety includes
beverages ranging from the water Aquafina to Mountain Dew, Pepsi,
Pepsi Max, 7 Up, Mirinda, Mirinda Apple & Fountain Fresh.

Customers Desire Pepsi and Mountain Dew the most;

Mountain Dew has the highest consumption in Gujranwalla. Recently,
the sales for 250 ml bottles has decreased but they are trying to
increase it as it gives the company higher profits.

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Availability of Pepsi is very high and the product is always
available in stock whenever an order arrives. Whenever the
distributors feel that after one loading there could be a stock out
they place an order to Haidri Beverages in advance just to keep the
floor with enough stock in hand. The Distributors have 3 days stock as
back up with them in order of any malfunctioning of the plant or other
such external factors.

Customer Experience for Pepsi has always been positive as

they receive the product with ease and on time. The retailers are the
direct customers as they place an order to the distributors. There
has never been a shortage or a delay for Pepsi in Metro or Pizza Hut
which are the key accounts for the company.

Order Visibility in Pepsi is not really an electronic phenomenon

where you can track your order through computer. It is more of
person-to-person contact and one can easily track down their orders
through the designated staff in each sector of Islamabad and
RawalPindi or for that sake all over Pakistan.

Returnability of Pepsi has always been very strong in a sense

that unsatisfactory items can be returned and changed on the spot.
This is true for both the consumers and the retailers. Pepsi has laid
down a system through which they can effectively manage this
requirement. The retailers are told to take down the comments and
the address or phone numbers from the person who is returning the
bottle. It seems at fist that a customer always wants the highest
level of performance along all these dimensions, in practice however
this is not always the case.

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Design Options for Distribution Network:

Distributor Storage with Carrier Delivery:

In Pepsi inventory is not held by the manufacturers at the factories

but is held by distributors/ retailers in intermediate warehouses and
package carriers are used to transport the products from the
intermediate location to the final customer. This requires distributor
storage to keep high levels of inventory because distributor/retailer
aggregates demand uncertainty to a lower level than the
manufacturer. Transportation costs for Pepsi are somewhat lower
because an economic mode of transportation (e.g. truckload) can be
employed for inbound shipments to the warehouse, which is closer to
the customer. Facility cost is high because of a loss of aggregation
and often end up with higher processing costs. The information
structure needed is not that complex. The distribution warehouse
serves as a buffer between manufacturer and customer. Real time
visibility between customers and warehouse is needed whereas as
visibility between customer and manufacturer is not required.
Response time is also reduced. Customer convenience is high and order
visibility with manufacturer storage becomes easier. Distributor
storage is well suited for medium to fast moving goods and it can also
handle higher level of variety than retail stores.

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21
 Value of Distribution System:

There are basically two components of distribution:

• Storage

• Distribution

The storage facilities of Haidiri Beverages are designed in order to

boost the timely availability of the product. For this purpose the
distributors are fully equipped with facilities that are needed to
ensure intensive supply of the product. The storage facilities are
designed to contain the maximum possible inventory items that are
needed at any given time.

Haidiri Beverages has established several storage units nearer to the

market in order to boost availability. Transportation conducts
inventory movement from point to point in supply chain of Haideri
Beverages. It incorporates a combination of modes and routes at
different stages. Transportation choices have a large impact on the
responsiveness strategy of the business. Haidiri has several contracts
with several distributors with multiple transport facility that ensure
the maximum possible transport of inventory within a short period of
time. The distribution does not work between specific supply chain
components but it performs a basic function of integration amongst all
supply chain components. In case of FMCG like Pepsi, the value of
systematic distribution process can not be undermined. The Pepsi
distribution system linked the entire supply chain for all product
categories. The distribution centers and its information network play
a key role in that regard. The major object is to carefully track sales
of items and offer short replenishment cycle times. The distributors
offer stored deliveries too many retail outlets in the twin cities.
Different products are being delivered conveniently on pre-orders.
The distribution system is flexible enough to alter delivery schedule
depending on customer demand. The Territory Distributor Managers

22
maintain a contact with the retailers in order to book and place the
orders. Whenever a store places an order it is immediately
transmitted to the supplier through the distribution manager.

Now Haidiri receives orders from all distribution centers and the
shipment department delivers the orders. At the distribution centre,
products from the manufacturer are delivered into different trucks
and each truck makes deliveries to multiple retail stores. The number
of stores depends upon the sales volume. The system works on trust
and does not require the delivery person to be present when store
personnel scan the delivery. This reduces the delivery time at each
store.

Haidiri have nine distributors in Islamabad and Rawalpindi, namely:

Shan distributors, Awan distributors and Arbab Distributors. To
support this distribution network they have a transport department
which consists of more than 30 ten wheeler trucks in Islamabad alone.
Each truck has a capacity of 1572 Pepsi cans. Rawalpindi distribution
is made possible through Shehzore and Suzuki because of the narrow
and congested roads. The distribution department is in direct contact
with the manufacturers and keeps updating inventory levels. They
keep in stock spare three days stock to combat external uncertainty.
The distribution department is responsible for all the variety of the
products in their portfolio. PepsiCo’s overall distribution network
spreads throughout Pakistan connecting the remotest of places and
providing great customer service. Globalization has increased the
competition that Pepsi is constantly coming up with new projects,
campaigns and distribution. Pepsi with more than 180% of profits this
year and with the annual review of their rates (last revised on 14 th
November 2007) is looking more and more competitive and as the logo
says: “Ye Dil Maangay Aur!”

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Product Life Cycle

(PLC) can be divided into several stages characterized by the revenue

generated by the product.

Problems and suggestions:

These are the some problems and their solutions how we can
implement these suggestions to improve FMRM in PEPSI

1) Lack of sale person’s responsibility:

24
The sale person cannot sort the bottles when they pick the bottled
from the market.

Suggestion:

If the sales persons sort the bottles and take or pick the bottles only
own brands from the market so in this way 50% sorting is possible
before the shipping department

2) Problems of replacement due to leakage:

Customers are claimed that the PET and one litter class bottles are
leaked and claim for the replacement.

Suggestion:

PET and one litter glass bottles are checked on plant to deduce the
replacement. Labors on plant line no 1 checking the bottles leakage
randomly. Labors must check all the bottles. According to the survey
it was found the sales persons destroy the bottles personally for the
replacement. A quantity must be fixed that below this quantity
leakage bottles are not accepted.

3) No decaser and uncaser in line no 1:

25
Decaser and uncaser in line no 1 is not exit so a large numbers of
bottles are broken by the labors.

Suggestion:

Decaser and uncaser must be exists in line no 1 to reduce the

breakage. If it is not possible use of net in all the plants because a
large numbers of bottles are fallen on ground and broken.

4) Extra material in the washer plant:

Extra material found in washer plant the excess quantity of NaOH in

washer.

Suggestion:

An expert and trained labors are used to mix the Stabilon, Divo Le 92,
Divo Al 93, NaOH
It was found that excess amount of materials is used in washer all the
bottles are sent back and rewash. So in this way all the resources are
used twice except the filling and electricity and labors cost increase.

5) Bottles are without the caps:

Line no 1 stop due to technical problem, but the bottles are without
the caps.

Suggestion:

Bottles must be caped according to safety principle while it is filled or

not.

26
6) Male staff:

Male labors are not doing their job very well and not interested with
their work

Suggestion:

It was found that female labors in inspection are very interested in

their activities. Female labors in inspection doing their job well than
the male. So hire female labors at empty and filled inspection.

7) Rotate the labors from one job to another:

Due to some problems it was found in line no 1 labor are not worked
well. They asked they worked only line no 3.

Suggestion:

Make the training and development of the labors on the continuous

basis. Rotate the labors from one line to another line. Labors must be
trained all the production process lines.

Others suggestions:

8) Upper tray of plant must be clean from inside

9) The filler operators must be with the proper gloves and masks

10) Comparison of leader or the supervisors’ job. Awards in the form

of money are given to them. In this sense competition arises between
the supervisors and the result better production.

27
11) Trained and expert staff is hired on the rejection criteria. Who
know this bottle may or may not clean after wash.

12) Breakage bottles must be wastage or put in to the bag for the
safety of labors.

13) Crown trolley is not clean well and trolley glass is badly damaged.

14) Due the dark colour of PEPSI MAX dirty in bottles are not
identified properly.

15) Crown Checking is necessary before to fill the empty bottles,

other brands crown separated before filling process.

16) Major focus on empty bottles inspection before filling to

minimizing bottles wastage.

Water treatment Process

CaCl2 + Lime

NaOCl 28
 FeSo4

Treated
Raw Water Water Buffer Tank
Reaction Tank

Sludge ---------------------------
---------------------------
---------------------------
---------------------------

Carbon Sand Filter

U.V Polisher Purifier
Lights

Treated Water to
Filler

29
Findings and Lab Testing:

In the sand filter tests through test tube, Burats and conical flaws.
H2SO4 (Sulfuric Acid) is 0.02 normal and distel water add them to become the
chemical normal.
Normal chemical H2SO4 is 2.5 Sludge Level testing is used into tank if tank is
100% then 12% to 15% must be sludge level.
Flow rates of chemical and chemical dozing flow high if water nee high.

Suggestions:

• There must be a plan given to water treatment before opening shift from
production department.
• Daily measurement of treated water must be used.
• Raw water analysis used into water treatment.
• To minimize sand filter answers differences they must be calculate exact
weights of chemical.
• Reaction dozing calculate properly after1/2 hours.
• Reaction flaws, raw water flaws, chlorine flaws and pharis Sulfate check
after 2hours that may be chances to become problems or errors in
calculation.

MRD Department:

Purpose:
This survey helps generating report that ultimately benefits sales force (S&D
Managers, Unit Managers etc) to plan market accordingly and for higher
management to make important decisions to stay abreast with the competitors.
Methodology:
This activity has been divided into 3 steps:

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Market visit:
A research officer’s team is prepared to visit the specific distribution area. Area
information and market survey forms are provided to the team to collect
information from retailers.
Data analysis:
Information provided by the research team is compiled and analyzed manually
and through certain computer programming formats.
Report Preparation:
Finally a report is prepared which shows current position and trends.
Role of MRD (market research & development) Department:
Internal data is gathered via customer databases, financial records, and operations
reports this internal data give quick/easy access to information sometimes
incompleteness or inappropriateness of data to a particular situation cause errors.
Marketing intelligence is the systematic collection and analysis of publicly
available information about competitors and trends in the marketing environment.
Competitive intelligence gathering activities have grown dramatically. Now many
there are sources of competitive information.
Marketing research is the systematic design, collection, analysis, and reporting of
data relevant to a specific marketing situation facing an organization. Therefore
MRD Dept. conducts research often these are mostly conducted by the young and
energetic internees, keenly looking for market knowledge.
MRD Research Project
INTRODUCTION:

Pepsi and Coke are the leading companies in the beverage market. The paper
attempts to determine which brand is most famous in the beverage market. We
calculate how many customers or consumers are loyal towards the Pepsi products.
Data is collected from 422 respondents including, students, workers and general
public.

Stratified random sampling is used to analyze the result.12 types of questions are
asked to respondent to discover the brand loyalty, 350 from 422 respondents are
not loyal towards the Pepsi brand they asked if the Pepsi products are not

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available we purchase or consume the Coke products.275 Respondent said our
consumption remain same if the prices of the Pepsi products decreased.

FINDINGS:

We attempts to discover which brand is most famous in the eyes of consumers.

For this study chooses the questionnaire as a tool to measure the response of
respondents

There are five classes in this research class one companion of Pepsi and Coke. In
class two we see the consumption of Sprite and Teem. Mirinda and Fanta are lies
in class three. In class four we compare the Mountain Dew with the Sprite3G.In
class five we compare the Pepsi Max with Coke Diet. In the Pepsi brand
Mountain dew take the highest share and top of the Pepsi product. 166 from 422
respondents are said we like the Mountain dew in Pepsi brand. In the Coke brand
Coca Cola on top of the list.151 consumers from 422 are like the Coca Cola in
Coke brand.

52% of respondents like the Pepsi brand and 48% of respondents are like the
Coke brand.66% of questionnaire are filled from male and 34% of questionnaire
are filled from the female respondents.
Shipping Department
Shipping is a very critical area for any beverage organization. It serves the role of
coordinator or middleman between production and sales. Ensuring appropriate
quantity and on time availability of empty & liquid stock is utmost important.

Any malfunction in empty receiving, storage and supply to plants, liquid stock
and distribution directly affects sales. This is a complete chain or cycle and any
weak link, bottle neck or disturbances will slowdown the whole operations.

The shipping system of NBC is responsible for the management of the Following
tasks:

• Shipping is responsible for managing the empties that are required for
production.

• Shipping is responsible for receiving the liquid clearance from excise to

dispatch it further to depots & distributors or parties.

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 • Shipping is also responsible for maintaining proper stock of liquids and
empties as they appear in the liquid and empties stock register, so as the
stock appears in the registers, it should also be physically present in the
depots.

Advertising:

NBC has eight Advertising workshops. Total work is done on labor rates and
contract basis. Material is provided from NBC. After completion of jobs,
contractors make bills. These bills are verified by Area Sales Incharge. After
verification bills are delivered to Advertising Department by contractors.
Advertising

Department can verify any bill at any time. After verification these bills are
forwarded to
Account Department for payment. Panaflex boards are prepared on contract basis
from outside supplier at agreed rates and Material specifications. Skins are printed
from Ad sells Publicity & Services

Our Aim:

To improve quality of work (Wall paint & publicity items).

To reduce publicity expenses to the extent sale should not be disturbed.
To switch from traditional publicity to innovative publicity

How to improve Quality:

By compelling contractors to use quality paint and discouraging locally made

paint.
By providing guidance about mono & models (PCI Publicity Look Book) &
Calligraphy.
Monitoring through sudden visits and punishment.
On the job monitoring and guidance (Imran Colony Workshop)

HOW TO CONTROL Advertising Expense:

By controlling misuse of publicity.

By inventory controlling:

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  Reduction of Scrap
 Use of old publicity finished items
 Repair of old publicity finished items

By taking competitive rates of the raw material.

By streamlining audit process

PROBLEM FACED BY ADVERTISING DEPARTMENT:

MATERIAL PROCUREMENT:

Mostly the procurement of raw material for example procurement of iron items
and electric Material is delayed by Purchase Department. As you know each and
every item is most Important, either it is cheaper or expensive, for the preparation
of final product. If any one Item i.e. welding rod, is not purchased on time, the
production of final product is disturbed. Further, I could not be able to issue rest
of the material to depot due to transportation cost.

PAYMENTS (BILLING PROCESS)

Due to late payments from company, contractors become financially unhealthy.

The reasons for late payments are multiple (i.e. late signing from sales team,
delay from advertising office, and delay from account/audit). Due to this reason,
they could not be able to fill sales demands completely / timely.

DEMAND PROCESS

Demand is raised from sales team. After approval from sales team (UM, S&D),
these are sent to Advertising Office for final approval and execution. Mostly
advertising items (internal Workshops – depot end) are prepared on verbal basis
from UM, S&D due to urgency of market.

After execution, demand is raised, processed and billed. Some times these
demands are kept in the Custody of UM/S&D for a long period due to different
reasons (i.e. non-availability of leisure time, Delayed service from contractor end
etc.). Some times approved demands are held by sales team for delayed execution
and new and fresh demands (un-approved) are given to contractor for execution,
most probably for urgent market needs (coke conversion, irritating outlets etc.).

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