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NESTLE KABIRWALA FACTORY LTD.

PAKISTAN

Internship Report on
Nestle Factory Kabirwala

Submitted By

Muhammad Haseeb Ali Riaz


Roll no.2221
M.B.A (Finance)

SESSION 2013-2017

UNIVERSITY OF EDUCATION, LAHORE


(MULTAN CAMPUS)

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Words are bound and Knowledge is limited to praise Almighty Allah. The
lord of the worlds, The Omnipotent, The Beneficial, The Gracious and The
Merciful.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Kabirwala
Factory

Dedicated to:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

My ever caring and loving Parents.

&

Respectable Teachers.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Preface:

Internship is an
integral part of
MBA program.
This effort may
get a student to
get a practical
experience if
right
organization is
selected. During
this internship, a
student comes
to practical
knowledge.
He/she learns
what he has so
far studied. As
an MBA student
I have also done
my internship in
Nestle
Kabirwala
Factory Ltd,
Pakistan.

My learning
experience with
nestle factory
begins with my joining from 01 august, 2016. It consisted of 06 weeks, spending in different departments of
nestle factory. Here I come to know a different and very interesting experience of learning and working with

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

people. My internship report contains all my learning and experience and in the end I have done SWOT analysis
of nestle factory and analysis of its financial statements. In the end I have some suggestions for nestle factory.

Acknowledgement:
First, all praises & thanks to Almighty ALLAH that I avail this opportunity for completing this period of
internship, then I pay all my respect and praises to the greatest man of universe, Holy Prophet Muhammad
( PBUH ) for whom all this universe was created.

I am heartily thankful to Mr. ASAD RAUF (Manager Finance & control Department), Miss Saniya Khan

(Finance Specialist), Mr.Umer (Finance Specialist), Miss Farnaz (Management Department) whose
constant guidance and support enabled me to complete the projects assigned during the training, At my section, I
would like to mention Names Miss Saniya Khan whose encouragement, guidance and support from the
initial to the final level enabled me to develop an understanding of my projects at every step during this period. I
am also thankful to every department specially Finance & control Department for their cooperation and support.
They gave me full assistance regarding my area of responsibility in their respective departments. They were very

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

cooperative and willing to help when I faced any problem & asked for help. There was a very good learning
environment. I will always remember their cooperation and support.

Lastly, I offer my regards and blessings to all of those who supported me during the completion of my internship.

MUHAMMAD HASEEB ALI RIAZ


MBA (Finance)
2013-2017
+92-315-7773259

Executive Summary:

Internship at Nestle Pakistan Ltd. (Kabirwala Factory) was an


attempt to seek experience of the corporate lifestyle of a
successful multinational company. The idea was to understand
the corporate structure, while developing skills needed to
thrive, of one of the leading global multinationals whereas
applying the knowledge and skills acquired during the
academic career. This wonderful experience of just 6 weeks
proved to be a high inclination in the graph of my personal
learning.

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TABLE OF CONTENTS

Sr Details Page No
No
1 Chapter No 1
Introduction 12
1.1 History of Nestle 13
1.2 Nestle Kabirwala Introduction 14
1.3 Nestle Kabirwala At Glance 16
1.4 History of Development 19
1.5 Business Volume 20
1.6 Competitors 20
2 Chapter No 2
Organizational hierarchy chart 21
2.1 Dept Of Nestle Kabirwala 22
2.2 Number of Employees 23
2.3 Quality Lab 24
3 Chapter No 3
Plan of internship 30
3.1 Deptt Assignmed 30

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

3.2 Detail Descrption Of Operations 30


4 Chapter N0 4
My Task During Internship 31
4.1 Project on Reception and STD. 32
4.2 Audit of Al-khan Catering Company in nestle. 41

4.3 Audit of Scrape yard. 41


4.4 Work in Management Department of Nestle. 43
4.5 Stock counting of Fair Fresh Shop. 44
4.6 Stock counting of Raw and Production Store 44
(901).
4.7 Project on powder production. 49
5 Chapter No 5
Structure Of Finance Deptt 53
5.1 Deptt Hierarchy 53
6 Chapter No 6
Function Of Finance Dept 54
6.1 Accounting System 54
6.2 Finance System 54
6.3 Electronic Data 56
6.4 Mobilization Of Funds 56
6.5 Generation of funds 56
7 Chapter no 07Ratio Analysis
7.1 Liqidity Analysis 57
7.2 Debt Ratio 58
7.3 Profitability Ratio 59
7.4 Analysis Of Investors 61
8 Chapter No 8
SWOT Analysis Of The Organization. 62
9 Chapter No 9
Conclusion 64
10 Chapter No 10
References 64

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Vision

Nestlé’s vision is to be the globally recognized leading Nutrition, Health and Wellness (NHW) Company. Nestle
Pakistan subscribes fully to this vision and the values that come with it.

Mission

To positively enhance the quality of life of people of Pakistan by all that we do through our people, our brands,
products and our Creating Shared Value (CSV) initiatives.

Our Ambition
Nestle Ambition
Our Ambition Our Ambition
To be the leading Nutrition, Health and Wellness Company in Pakistan.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Chapter No 01
Nestle-The Name & Logo:
Nestle was founded by “HENRI NESTLE” who created the trademark of the NEST, a translation of his last
name. In German, Nestle means “LITTLE NEST”. The symbol showing 2 young birds being fed by mother
perched in a nest on an OAK tree depicts in the motherhood, the arm, and loving, caring, protective and sincere
feelings for a mother for her younger ones. So, this symbol helps to give a visual sign that nobody other than
Nestle can care about its consumer friendly. It shows that the Nestle provides the purest food product to its
consumers because it is as sincere with them as a mother. It is universally understood that this reflects the
maternity and affection, and thus helps to draw a visual link between Nestle and its products.

SLOGAN:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

“Good food, Good life”

1.1 History of Nestle:

The credit for the foundation of Nestlé entirely goes to a real man
“Henry Nestle”.
He said:
“The thought that my invention could save the lives of so many
Children encounter enormously the financial gain was not the prime
motivation”.
(Henry Nestle 1869)

The Story of Nestle:


FROM NUTRITION TO WELLNESS
Nestlé is the world’s leading nutrition, health and wellness company. The company employs more than 280,000
people and has 456 factories in 84 countries. Nestlé products are sold in almost every country in the world.
Founded in 1866 in Vevey, Switzerland, where it is still based, Nestlé has often been called “the multinational
among multinationals”. Only about 1.5 percent of its sales are generated in its home country, and all but 12 of its
factories are situated abroad. The CEO is Paul Bulcke, and the General Management includes a Belgian, two
Canadians, one Dutch, a Frenchman, a German, a South African/British, three Spaniards, one Swiss, one
American and a Swiss American. Nestlé is a truly public company with over 250,000 shareholders of which
around one third are Swiss. As the world’s leading nutrition, health and wellness company, Nestlé is the
worldwide leader in product categories such as soluble coffee, infant nutrition, bottled water, condensed and
evaporated milk, ice cream, as well as chocolate and malt drinks, and culinary. The Group is also a co-leader in
pet care. The Company is committed to delivering shareholder value through sustainable, capital efficient and
profitable long-term growth. Over the past years it has concentrated on furthering organic growth and
performance improvement.
1866 - 1905
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first
success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People
quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon,
Farine Lactée. Henri Nestlé was being sold in much of Europe.
1905 - 1918
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was
operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy
products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled.
1918 – 1938

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After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's
management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first
expansion into new products, with chocolate the Company's second most important activity.

1938 - 1944
Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in
1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped
with the introduction of the Company's newest product, Nescafé, which was a staple drink of the US military.
Nestlé's production and sales rose in the wartime economy.
1944 – 1975
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies
were acquired. In 1947 came the merger with Maggie seasonings and soups. Crosse & Blackwell followed in
1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in
L’Oréal in 1974.
1975 - 1981
Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets.
1981 - 1996+
Nestlé divested a number of businesses1980 - 1984. In 1984, Nestlé's improved bottom line allowed the
Company to launch a new round of acquisitions, the most important being American food giant Carnation.
1996 +
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets
developed into more or less integrated trading areas. Since 1996 there have acquisitions including San Pellegrino
(1997), Spillers Pet foods (1998) and Ralston Purina (2002). There were two major acquisitions in North
America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD
2.6bn acquisition was announced of Chef America, Inc.

1.2 Nestle Pakistan Limited:


(Formerly Nestle Milkpak Limited)

Nestle Pakistan is a subsidiary of Nestle S. A. –a company of Swiss origin headquartered in


Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock exchanges. For
five years in a row, the company has won a place among the top 25 companies of the Karachi Stock Exchange.
Headquartered in Lahore, the Company operates five production facilities. Two of its factories in Sheikhupura
and Kabirwala are multi product factories. One factory in Islamabad and two in Karachi produce bottled water.
Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that’s
its products are made available to consumers whenever, wherever and however. Nestle has the unique ability to
provide a complete range of food products, services and well-known brands to meet the needs of consumers
around the world. It is not a faceless corporation catering to faceless consumers, but a human company providing
a response to individual human needs. It respects the cultures of the countries it operates in and recognizes the
need for quality of life of their people.
In line with Nestlé’s global philosophy, Nestle Pakistan is proud of its commitment to excellence in product
safety and quality and to providing value and services to its consumers. On the social front it acts very
responsibly when it comes to environmentally sound business practices and corporate social responsibility. Nestle
Pakistan operates in many ways but people, products and brands are the main flag bearers of the Company’s
image.
On the one hand, it has brought prosperity to farmers through an assured and growing income resulting from sale
of their milk, and on the other, it has enabled Nestle Pakistan to collect better quality milk in the quantities it
needs. Realizing that rural women play an important role in animal husbandry and milk production, Nestle

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Pakistan has pioneered the concept of inducting women milk promoters in its team to educate and encourage
rural women to increase per animal yield. Four teams comprising three women each are currently working in the
field. Results being very encouraging, more teams are planned. By taking this professional help and guidance to
the farmers’ doorsteps, that they otherwise would find difficult to access, coupled with incentives for increased
milk production and a good and prompt return for their milk, the company is playing an important role in creating
opportunities of economic growth for dairy farmers.

Introduction of Nestle Kabirwala Factory:

Kabirwala is situated near Khanewal city and Nestle` factory is located at


4 Km Khanewal road Kabirwala. The distance of Nestle factory from
Khanewal is 10 Km. It has beautiful and clean building.
Kabirwala factory was established in 1983. Located in the heart of Punjab
province, Kabirwala Dairy Limited (its then name) started its
Operations with the production of UHT milk in1984. It was taken
over by Milkpak Ltd in 1990. Maggi 2 minutes noodles and milk powder
plant started their productions in 1992 and 1996 respectively.
In 1996 UHT production was shifted to SKP while production of Nestle
Culture Butter started in 2000. Dry mixing line was installed in 2002 to
produce Every Day tea whitener, while Desi Ghee line was installed
in 2003. On February 7, 2005 nestle KBF joined GLOBE GO LIVE that
performs as a facilitator to achieve long-term business growth.
As a result of management commitment and dedicated effort and hard work
of Kabirwala factory staff at all levels it got the high status in milk
powders category amongst all the Nestle factories around the world in
2007. Kabirwala Factory has got the potential of expansion in existing
and extension in the new categories in the future.
Location:
Middle of Pakistan
East of Multan
10 Km. from Khanewal direction Kabirwala.
Factory Area:
Total Land 84.46 Acres
Building (Covered) 17.34 Acres

1.3 NESTLE KBF AT A GLANCE


Road View:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Admin Block:

Milk Powders

Liquid Dairy Department:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Milk Reception:

Standardization Hall:

Noodles:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Confectionary:

Utilities:

1.4
The

history of the development of


Nestle` Kabirwala factory is as under:

1980: Established locally By “Mr. Syed Fakhar Imam “as Kabirwala Dairies.
1990: Merge with Nestle`
1992: Maggie Noodle’s Plant was installed
1996: Powder milk Plant was installed (IST Egron)
2002: D.C. (Distribution Center) Establishment

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2003: Desi Ghee Plant was installed


2004: N2 Self Generation Plant
2006: Installation of Liquid Dairy Plant
2007: Powder Milk Plant (2nd Egron)
2008: UHT Cream Plant
2009: Commission of Probiotics & EVAP 3
2010: Production of Eight new products
2011: Production of three new products, extension of RP Store & fuel storage tank, Installation
of CAT Engines and two new Wolf Machines
2012: Wet tipping 2 Confectionery
plant in process.

Nestle Kabirwala products:

Milk Powders

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UHT Milk & Cream

Noodles

1.5 Business Volume

Total number of stocks of nestle is 45,349,584.

1.6 Competitors
 Engro foods
 Fouji Foods
 Oolpers Milk

Chapter No 02

Nestle Kabirwala Factory Hierarchy Structure:-

FACTORY MANAGER
HOUSING COLONY (Faisal
TOTAL Nadeem)
PERFORMANCE BUSINESS SUPPORT
NOODLES Rec&STD LIQUID DAIRY POWDER PLANT FINANCE &
MANAGER MANAGEMENT EXECETIVE
PLANT CONTROL
FACTORY Engg HUMAN QA
LOGISTIC SH & E
RESOURSE
INDUSTRIAL INFORMATION
2.1 Departments
SUPPLY CHAIN of Kabirwala Factory:
PERFORMANCE TECHNOLOGY

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Nestlé Kabirwala is headed by the Factory Manager of the company Presently Mr. Faisal Nadeem Directly
reporting to the Factory Manager are the fourteen major Departments. i.e.;
 Finance & control Department
 Human Resource Department
 Logistics Department
 Safety health & Environment Department
 Industrial Performance Department
 Engineering Department
 IT Department
 Application Group
 Rec. & Standardization Department
 Liquid Dairy Department
 Powder & Noodle Department
 Quality Assurance Department
 Technical Training Department
 Nestlé Distribution Channel

Nestle System:

Nestle has best systems but others are also consulted. Following are the own systems of Nestle
 Nestle quality management system-NQMS
 Nestle good manufacturing practices-NGMP (production, environment, building, designs)
 Safety, health environment-SHE
 Total performance management-TPM (make policies to support business)
 Nestle continuous excellence-NCE

Nestle Certifications:

Certifications of nestle Pakistan Ltd. are as under


 ISO 14001(safety)
 OSHAS 18001(safety)
 HACCP (operation pre- requisite, critical control point, pre-requisite programmed)
 Integrated pest management (IPM)
 ISO 2200 granting

(Combination of HACCP related to safety and ISO 9000 related to quality and many more things)
A successful GLOBE system that works for Nestle around the world in order to communicate confidential data.
As a result of management commitment and dedicated effort and hard work Of Kabirwala factory staff at all
levels KBF got the high status in milk powders category amongst all the Nestle factories around the world in
2001. It was achieved because of continuous improvement drive and passion to become best in the World.
Kabirwala Factory has got the potential of expansion in existing and extension in the new categories in the future.

2.2 Number Of Employees

There are 2200 employees in nestle Kabirwala factory.


In Nestle there are 930 employers of nestle.
While remaining 1270 employees of third party.

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2.3 A Little about Quality Assurance department at Nestle KBF:


QA department assures the safe food for consumers. QA has the
following labs to analyze the characteristics of raw material;
semi-finished, and finished products.
 Reception lab.
 Physical-chemical Lab.
 Sensory Lab.
 Packaging lab.
 Incubation Lab.

Well trained and skilled staff carries out all analysis to assure the
best quality products. A brief view of all these labs in QA is as
under:

Reception Lab:

Reception lab serves as back bone to assure best quality


products because whole milk reception is based on quality &
quantity tests which are performed before the milk reception in
silos.
When milk tanker entered in factory washing is done to
remove the dirt & other adhesive material from tanker. Then
sampling is done by analyst at sampling bridge & analysis is
done.
Following tests are done before sending milk to milk
reception and standardization lab (STD). Some of these tests
are done in milk collection center and some are done in
main milk reception lab. These tests are qualitative as well as
quantitative

Tests with their specifications & and description are as under

Tests Specification Description


(NORMS)
Tanker seal All points To avoid any tampering during
intact, no transportation
broken
Organoleptic Clear, flavor, Sensory aspects
off odor, off

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taste

APT Must be –VE Rapid test of having too advanced acidified


at 60% milk
COB Negative Milk state of advanced specifications makes
it fit for heat treatment
Acidity 0.11-0.15% Acidity that is freshness indicator
(lactic acid)
PH 6.60-6.85 Acidity that is freshness indicator

Sodium <50mg/100g Sodium adulteration


SNF
Sugar Negative Detect adulteration of sugar. It added to
increase SNF and to reduce micro load
Glucose Negative adulteration of starch to increase SNF

Starch Negative adulteration of starch to increase SNF

Formalin Negative Formalin adulteration to kill bacteria and


stabilize milk
Urea Negative Urea adulteration to stabilize milk and
increase SNF
Sorbitol Negative Sorbitol detection in fresh milk

Antibiotics (beta Negative Antibiotics residues in milk (B-


star/twin sensor) Glucan group)
Temperature <8°C To avoid multiplication of bacteria during
transportation
BR value 40-43.5 Adulteration of vegetable/cooking oil to
increase fat%
Fat % Min.4.35% Fat%
SNF% Min. 8-10% Density determine & finally SNF%
Dirt test Max .2 Detect and grade impurities in raw milk

Carbonate/bicarbon Negative Adulteration of these to stabilize milk as


ate neutralizer
Protein % >2.75 Protein level in milk

Protein SNF Ratio >34 Protein SNF ratio

Ammonium sulfate Negative Ammonium sulfate added to increase SNF

TPC <8 micro/ml TPC of milk at arrival in factory

Antibiotics (by Negative Antibiotics residues in milk silo –


charm 11) chlorophenicol (banned Antibiotics)

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Antibiotics(by Negative Antibiotics residues in milk silo


delvo)
Melamine 5mg/kg Melamine analysis that is illegally added to
increase protein contents
Aflatoxin MI <0.5ppb Toxins in milk are determined

Physical-Chemical Lab:

This is the basic lab in QA which assures the quality of raw material, inline products & finished products. All the
quality and quantity analysis are performed.
These quality tests include;
 PH
 Moisture
 Total ash
 Fat content
 Solid not fat content
 Protein
 Vitamin C
 Minerals
 Turbidity

Sensory Lab:
In sensory lab consumer based tests are done to assure the best quality of products. In sensory lab all the products
are tasted before release. A trained panel tastes all the products and evaluate on the basis of four parameters taste,
color, smell, appearance. If 80% or more panelists accept all parameters then product is released. If 60% or more
panelists accept all the parameters then exceptional release is done. If less then 60% panelist accept all
parameters then product is blocked.
There are three tasting sessions in a day.
 Fresh products
 Keeping quality
 Consumer complaints

All sessions takes place regularly. In keeping quality session shelf life of products are studied. In last session
consumer complaints are addressed and verified.
In every session, about 10 to 50 samples are evaluated and the panelist use in/out test for ranking of every
product i.e.
Well in
Just in

Just Out
Well out

Extra session may also be carried out for other purpose e.g. for complaint samples, for trail products, for rework
analysis etc.
Finished products which are evaluated in this lab are:
 UHT milk
 Nido
 Everyday tea whitener

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

 Maggi noodles
 Soup mass
 White butter
 Salted butter

Packaging Lab:
Packaging lab is one of most important part of QA. In this lab all test about the packaging material are
performed. There are three types of packaging materials are used
 Primary packaging
 Secondary packaging
 Tertiary packaging
 Width, length, height and weight of package are measured and color is checked.
 Packaging lab falls under the sensory evaluation lab.
 In this lab following tests are performed:
 Analyze the design of the package
 Analyze the reel width

 Analyze the reel diameter (external)


 Analyze the core diameter (internal)
 Analyze the length of the sign detected by the photocell
 Analyze the width of the sign detected by the photocell
 Gram mage (g/m2) determination
 Aroma test
 Moisture test of cartons
Incubation Lab:
In incubation lab fresh product samples are taken & incubated at 30 oC for hemophilic microorganisms & at 55oC
for thermophiles organisms for 5 days. After incubation pH is checked if pH within the limits then product is
released. Keeping quality samples are incubated and analyzed even after expiry date. Incubation process is
basically use for UHT milk Incubation lab focus on two parameters:
 Milk quality
 Machine efficiency
Incubation process has two important factors
 Time
 Temperature
For incubation process two types of sampling is done:
 Random sampling
 Event sampling
Random sampling:
It is the type of the sampling, which is done after every 10 minutes on each machine line. Then these samples are
incubated for 7 days in incubation container at Mesophilic temperature. After this specific period, the incubated
samples of UHT milk are analyzed for its pH by pH meter
Curdling by Electester Then this milk is reworked

Event Sampling:
It is the type of the sampling which is done when a machine is restarted after certain reason e.g. mechanical
problems etc.The event samples are incubated for 5 days thermophiles temperature and analyzed pH meter and
also visual examination to check any abnormality.

Cleaning & Hygiene:-

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

What is hygiene?
Hygiene is the science of maintaining cleanliness leading to good health OR Maintaining all conditions and
measures necessary to ensure safety and suitability throughout the supply chain is Food Hygiene
The Hygiene of the enterprise, personal hygiene and the quality of the products are very dependent. In food
industry, non-compliance with the rules of hygiene during processing and manufacturing is most of the time main
reason to number of problems related to Quality.

1. Personal Hygiene:

In the context of personal hygiene following instructions are given to all the personnel working in the factory.
And different measures are being taken to ensure the implementation of these rules and regulations.

 Change your undergarments regularly.


 Cut your nail short. Food residues can get stuck under long nails.
 This can be a good hide out and growing place for bacteria.
 Jewelry is not allowed in the food processing area.
 Food residues can stick in grooves and / or designs of jewelry & wristwatches.
 This is a potential to microbial growth in presence of moisture and air.
 Tidy and neatly bound hair must be a prerequisite before coming to factory.

2. Factory & Processing Environment:

What is zoning and why do we need it?

The segregation or physical separation of different activities along with its corresponding areas based on the rules
of hygiene level is called ZONING.
Zoning is required in order to prevent contaminations generating or present in one area to pass on or to enter into
another processing area. Zoning is especially of high importance in the sensitive areas and its surrounding. The
more the sensitive product or the consumer or both, more is the importance of zoning of that area.

Zoning & Hygiene Levels:

Appropriate cleaning for prevention must be defined for each zone. In choosing the method of cleaning, the
overall aim is to reduce risks of microbial growth in the environment, which in turn reduces risks of
contamination of the line. Based on the risk of contamination or chances of being contaminated the areas are
defined into THREE ZONES or THREE HYGIENE LEVELS.

1. High hygiene zone ……… Highlighted by RED Color.


2. Medium hygiene zone……. Highlighted by YELLOW Color.
3. Basic (standard) hygiene zone…………Highlighted by GREEN Color.

SPECIFICATIONS OF ZONING:

1. High hygiene zone:


In High Hygiene Zone product is exposed to surrounding and hence can be easily influenced by
environmental contamination. High hygiene areas are only subject to dry cleaning. Shoe change or shoe cover is
must.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

2. Medium hygiene zone:


Medium Hygiene areas can be intermediate area before entering the high hygiene zone.
These process areas have relatively lesser hygiene measures vis-à-vis High hygiene. Uniform is still a
prerequisite to enter the zone
Basic (Standard) hygiene zone: Typically further relaxed hygiene norms compared to Medium hygiene zone.
Hand Washing Areas:
Before entering the high hygiene area hand washing facilities have been provided. Which ensures that there
should be no cross contamination occurred and over all environment of processing areas should remain hygienic.

HAND WASHING PROCEDURE:

 Wet hands thoroughly Use Soap.


 Rub palms together Rub the finger tips, especially nails area Rub the thumb & between the fingers.
 Rinse hands thoroughly with excess water.
 Use paper towel for drying hands.
 Put the paper towel into the dust bins.

HYGIENE PROTOCOLOS FOR HIGH HYGIENE ZONES & EGRON


BUILDING
Before entering production areas hand disinfection and shoes changing mechanism has been developed. It is
made sure that these practices should perform.

Procedure:
 Put on hygiene Cap
 Put on face mask in case of a person having beard.
 Wear hygiene shoes for permanent employees
 (In case of visitors) Take shoes cover from cleaned side, sit on the seat, wear 1 cover on shoes and take
your foot to the cleaned area.
 Similarly wear other shoe cover on 2nd shoe and take your foot to the cleaned area.
 Disinfect your hands by Ethanol or by SPIT ACID.

Cleaning Practices

What is cleaning?

Cleaning by definition is removal of dirt, which is both visible and invisible.

Types of Cleaning: Cleaning is classified in three types as:

1. Dry Cleaning.
2. Controlled Wet Cleaning.
3. Wet cleaning (CIP).

This classification is strictly based on the Hygiene Zone & water activity in the zone

1. DRY CLEANING:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

This mode of cleaning is applied in those areas where products are dry processed or where water is prohibited to
prevent microbial growth. At powder plant mostly dry cleaning is done of that surfaces which are in direct
contact with food during processing.

Dry Cleaning Tools are:


 Brushes
 Scrappers
 Scoops
Cleaning tools for high hygiene area:

For differentiation, 3 colored cleaning tools have been introduced:

1. Red:
Red cleaning tools can only be used for the inside cleaning of the surfaces of any equipment which is in
direct contact with the food in high hygiene area.

2. Green:
For outside cleaning of equipment’s in high hygiene area.

3. Yellow:
For floor cleaning of high hygiene areas.

Food Safety Policy:

All finished products must be complying with the relevant laws and regulations of the country where the
product is marketed. For hazardous chemical agents national regulatory norms are considered as safety
standards of country. Raw materials must comply with the regulatory standards of the country where the
raw material are used. We must apply the same minimum standards of food safety all over the world.
Internal guidance values must be respected in product development and manufacturing. Corrective
measures must be applied to ensure that the new batch of products complies with the values. For UN
approved or prohibited chemicals, the “zero tolerance” principles applied. Principles in Management of
Chemical Hazards: Management of chemical contaminants starts with the implementation of
prerequisites program. These include:
 Good agricultural practice
 Good animal husbandry practice
 Good manufacturing & warehouse practice
 Supplier management (provision of valid and thorough specifications, audit and approval of
suppliers, monitoring supplier performance and follow-up)
 Training of all personnel
 Traceability (history about material).

Chapter No 03

PLAN OF MY INTERNSHIP PROGRAM

I joined the prestigious organization Nestle Factory Kabirwala Pakistan for my internship on august 01, 2016. I was
accompanied by 2 other internees. The internship scheduled was for six weeks. The schedule was provided to me on

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

my very first day and I were asked to conduct my activities as per schedule. Nestle Kabirwala don’t require from
internee to work like staff. For internship trainees briefing and observation method is used to train them.

3.1 Department Assigned:

I have done my internship is Finance and control department of Nestle factory Kabirwala Pakistan.

3.2 Detailed description of the operations / activities performed by the Finance


department:

Finance department is one of the biggest department in the Nestle Factory Kabirwala Pakistan, which is responsible
for provision of efficient and effective accounting and budget. The feasibility of extending financial, administrative,
technical facilities is control by this department. It is also responsible for internal audit of Nestle Factory. It is
headed by Factory control (Finance Manager) Mr.Asad Rauf. The duties and functions of a typical finance
department can be classified into two generic categories:
1. Planning
2. Controlling
These activities are inter-related and inseparable because if there is no planning these will not be any control.
Therefore, planning and control move together. Planning refers to the activities, which bridge the gap from the
starting point to the terminal point. Planning in the finance department under reviews refers to the activities of cash
flow and budget preparation. It has four divisions, which are as under:
 Revenue Accounting
 General Accounting
 Budget and Financial Management

Revenue Accounting.
Revenue accounting division deal all factories situated in all over the Pakistan. All factories send their revenue
report to this department on monthly basis. It also deals with factories problems and needs. Revenue division also
conduct internal audit.

General Accounting.
All operations related to accounting have been performing in this factory. This factory is also responsible for
preparing annual report and financial statement.

Budget And Financial Management.


Budget and finance department deal with preparation of budget to meet the expense of Nestle Factory. If there is
any gap between revenue and expense than this factory refer this matter to fund management.

Chapter No 04

My Task / Activities / Projects In Nestle Factory

The detail of my activities during this program is as follows:

1. Project on Reception and STD.

2. Audit of Al-khan Catering Company in nestle.


3. Audit of Scrape yard.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

4. Work in Management Department of Nestle.


5. Stock counting of Fair Fresh Shop.
6. Stock counting of Nestle Distribution Chanel (NDC).
7. Stock counting of Raw and Production Store (901).
8. Project on powder production.
9. Some work in HR department.

PROJECT NO 1
Reception and STD.

This report specifically explains the process of Milk


Standardization. It includes these steps:

MILK RECEPTION

When the tanker enters into the factory from gate no 3 then reception
Lab, the milk samples taken from the tanker are analyzed for fat%,
APT, COB, organoleptic, adulteration, pH, antibiotic and sodium%.
When the results fulfill the prescribed standards, the milk is weighed
and stored at 4ºC±2ºC in insulated silos of accumulative capacity of
2 mio liter approx after chilling to 4ºC.

Reception Lab

Reception lab serves as back bone to assure best quality products


because whole milk reception is based on quality & quantity
tests which are performed before the milk reception in silos.
When milk tanker entered in factory, washing process is initiated
to remove the dirt & other adhesive material from tanker. Then
sampling is taken to analyze the milk at sampling bridge. Analysis
is done by the quality analysts who are well well-equipped to
perform these tests:

Tests Performing before


receiving milk:
Tests Specification Description
(NORMS)

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Tanker seal All points To avoid any tampering during transportation


intact, no
broken
Organoleptic Clear, flavor, Sensory aspects
off odor, off
taste
APT Must be –VE Rapid test of having too advanced acidified milk
at 60%
COB Negative Milk state of advanced specifications makes it fit
for heat treatment
Acidity 0.11-0.15% Acidity that is freshness indicator
(lactic acid)
PH 6.60-6.85 Acidity that is freshness indicator

Sodium <50mg/100g Sodium adulteration


SNF
Sugar Negative Detect adulteration of sugar. It added to increase
SNF and to reduce micro load
Glucose Negative adulteration of starch to increase SNF

Starch Negative adulteration of starch to increase SNF

Formalin Negative Formalin adulteration to kill bacteria and stabilize


milk
Urea Negative Urea adulteration to stabilize milk and increase
SNF
Sorbitol Negative Sorbitol detection in fresh milk

Antibiotics (beta Negative Antibiotics residues in milk (B-


star/twin sensor) Glucan group)

Silos Criteria Capacity


4 Fresh Milk 100,000 L/silo
10 Thermoses Milk 100,000 L/silo
2 Cream 100,000 L/silo
2 Butter oil 50,000 L/silo

Along with the quality tests, these observations are considered before Reception
1. Ensure that reception pumps and reception lines (from pumps to raw milk storage tanks)
is ok.
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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

2.Fix milk reception line circuit.


Receiving of Milk
Milk is received from tanks to reception lines with rate of 1600-1800
tons during 8-12hrs.The capacity of milk reception is about 2 mio
liters in flush season and 2 to 2.2 mio liters milk in normal season but in
summer it decreases from 0.8 to 1 mio liters. There are eight lines for
milk reception and the capacity of each line is 14000 liter per hour.
Capacity of milk silo is 0.1 mio liters.After being cleared from milk
reception lab, milk tankers come to milk reception, Quality is
checked, tankers are weighed, and they are issued a key and on
matching with? milk is received. There are 8 tankers are 8 lines which
can collect the milk simultaneously. Each line capacity is 40 tons, hence
receiving milk of 320 tons in one go. Once the tankers are emptied, they
move towards Tankers CIP .There at first tankers are checked that
if there is any milk residing in tank. If so, milk is taken in some drum.

Tankers have to pass through some steps for its CIP.

(1) Firstly flushing is done with reused water.

(2) Cleaning with caustic soda, here filling and circulation is done. Time is 3 minute.

(3) Clearing with condensed water. This water then goes to reused water.

(4) Once a week cleaning is done with Nitric Acid

(5) Then tankers are weighed and observed weight of milk is compared with actual weight in lines. There is also a
flow meter to check weight.

Weight of milk = Total Weight - Empty tank weight

Flow Diagram of Milk Reception

Milk Cream
Milk Reception Thermization
separation

Liquid Dairy
Standardization Mineral Addition

Powder Plant

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

The milk received from tankers is fed to 4 Silos .Then it goes to separator & clarifier which separates slug from
milk. Clarified milk is fed to PHE (plate heat exchanger).

Here, are three phases in PHE

 Regeneration
 Heating
 Cooling

Regeneration
First Clarified milk having temperature of about 6°c to 10°c is
passed through this section. Its temperature goes up to 35°c.
Here temperature of milk rises from heat regenerated from milk
coming from heating section.

Heating
Then milk is passed through heating section and its temperature goes up to 85°c .It is kept in holding tubes for 60
sec .Again it passes through regeneration section , here hot milk exchange its heat with new coming milk and
makes new milk temperature 35°c and its temperature about 30°c. Here heating media is hot water.

Cooling
Then milk is passed through cooling section. Where ice water having temperature about 2°c-3°c cools down the
milk to about 10°c.Then this milk goes to 10 thermized milk silos (TMS).

Skimming

Milk from thermized silos goes to Separator and Skimming section, where cream is separated from milk and
skimmed residues. Process is that milk goes to skimmers which separate cream and DCM (de creamed milk).
Then it is fed to stand mate which accordingly dose the cream in DCM. Then this milk is fed to SMT
(standardized milk tank). Extra cream is stored in cream tank for further treatment.

There are 3 skimmers

 Cold Skimmer 1
 Cold Skimmer 2
 Warm Skimmer

Cold skimmer is used for milk required for powder production plant while warm skimmer is used for UHT Milk.

DOSING OF VITAMINS, OILS, SLURRY IN MILK


Milk from skimmers is mixed with vitamins Then Slurry (mixture of powders and water and liquid milk) formula
is made, according to recipe, from SC anima goes to RMT (recombined milk tank).There are three RMTs, and
two of them are for UHT. Here water is added to RMT and slurry is ready to feed at stand mate. Vitamins are
added as a solution from Mineral tank. (And if oil is to be added, it is also received from oil tank). Oil and

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

minerals also go to stand mate and from stand mate milk finally goes to UHT SMT. Now, Milk is ready and it
goes to UHT and then filling and packing. At UHT SMT role of STD&REC finishes. If Powder milk is to be
made, no slurry is made and mixture is directly added at SMT.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

STD PROCESS AS A WHOLE

STD

SCANIMA BUILDING

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

At scanima, different vitamins and oils are dosed in milk to provide extra power to milk. There are different
materials which are dosed according to recipe they are 20.

Their names are as below:

1. Vitamin Premix 8025A MR2 Powder 25kg

2. Dipotassium Phosphate
3. Salt NaCl Refined (Sod. chloride)
4. Oil Palm Non Hydrogenated
5. Lecithin Soya Liquid INS322 10
6. Sodium Tripolyphosphate
7. Disodium Phosphate Anhd INS339
8. Ferric Pyrophosphate 20-22% Iron
9. Emulsifier Recodan/ RS 100 20kg
10. Vitamin A Acetate Type 325CWS 25kg
11. Vitamin C Sodium Ascorbate
12. Vitamin D3 Dry 100 CWS/A 1kg
13. Potassium Citrate
14. Oil Palm Olein SF 190kg
15. Vitamin Premix Dairy 8031A
16. Vanillin Rhovanil Extra Pure Rhodia Food
17. Vitamin B12 0.1% Water Soluble
18. Oil Mix No 152B 920kg
19. Carrageenan Lactarin MV306 INS407
20. Vitamin Premix Dairy 8053.

Wet Tipping
From wet tipping powders are tipped and transferred to silo in scanima building by pumping, where slurry is
made and added as per recipe and recombination.
From wet tipping following powders are tipped.

1. Sugar
2. Calcium Carbonate
3. MSK
4. FCMP RYK
5. NIDO Bunyad Rework
6. NIDO Rework
7. Sweet Whey
8. NIDO 1+ Rework
9. Lactose
10. Everyday PPP Rework

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

After minerals addition and recombination if required,

 Milk for powder plant is stored in Skimmed milk tank (SMT) and then to evaporator feed line.
 Milk for Dairy plant is stored in UHT SMT and then after testing transferred to UHT Plant.

Butter Oil and Cream Plant


Cream Storage Tank:
In cream storage tank, we store cream at 8-10 degree centigrade.
After that we send cream through pump into butter churner.
Butter Churner:
Rotating shaft circulates the cream. After sometime milk and cream is
separated due to density differences. Two layers are produced. Upper layer
is the butter layer while the lower layer is the milk layer.

Separating Section:
In this section, the butter is separated from milk through sieves.
Milk is send to balance tank through pump and then again send to
butter milk tank through pump. Now the butter send to conveyer
section.

Conveyer Section:
In this section, the butter is passed forward through conveyers and
compressed between sieves which is present at start and at the end of the conveyer section. Compression
is done for the separation of remaining milk from butter. Now the butter send to storage tank.

Clarification
In this section clarified butter in the butter oil. There are
three type of clarifier

1. Clarifier no 1
2. Clarifier no 2
3. Clarifier no 3
In Clarifier no 1 only 75% butter oil extracted from butter.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

While in clarifier no 2, only 90% butter oil is extracted from butter and in clarifier no 3, just 99.9% butter oil is
extracted. Externally no uses of butter oil. Butter oil used just in the production of powder milk, otherwise butter
oil is stored in RP store.

Nestle Kabirwala was produce Desi ghee but now nestle Kabirwala not produced Desi ghee.

Storage Tank:
In this section, butter is stored and move forward
by conveyers. After that butter send for packing
through pump.

Observations

 No tagging on pipe lines.

 Wrong tagging on storage silo.

 Everything is up to date and operators work very carefully.

 There is some safety issue, I observed that workers are walking in STD building
without safety cap.

PROJECT NO 2
Audit of Al-khan Catering Company in nestle.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

PROJECT NO 3

RANDOM AUDIT OF SCRAP YARD


Observations: Dated: 25 Aug 2016
Ma’am SANIYA assigned the random audit of scrap yard. I went to scrap yard on behalf of ma’am SANIYA
(Finance Dept.), and met with Mr. Iqbal. It was my first experience to visit scrap yard, Mr. Iqbal gave orientation
about the scrap yard. Than we inspected Scrap Area.

First of all I observed loading area, a truck was loaded in that area with scrap material which included Hard
Aluminum, MS Scrap (pipes, Angles, Iron pieces, wires etc).

Following are the observations:

 Wooden pallets which were in useful condition were there in scrap area to be scrapped.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

 Labor is using hands for mixing crushed


noodles, spices, rice flour and water powder milk which seemed unhygienic process. Color is also mixed
by hands. And then cattle feed is put on polythene bags through hands.
Tetra pack used to be collected on a place and then moved after pressing them. And rappers have been seen
crushing by machine. That crushed material will send to Lahore for disposal.

NOTE: - This is an unbiased report it could be different in others perspective. It was all about my on
observation.

PROJECT NO 4

Work in Management Department of Nestle.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

PROJECT NO 5
Stock counting of Fair Fresh Shop.
Observations Dated:22.08.2016

 Stock list is not maintained already in fps.


 Nescafe Classic 24*100gm not available in FPS but mentioned in stock list.
 Some stock are available in fridge but not shown/included in stock list.
 Some stock was physically present but was not mentioned in stock list.
 Stocks are not available physically but mentioned in stock list.
I. Peach Nectar 24*200ml,
II. Nestle Nesfruita mango 24*200ml.
III. Pine Apple Juice 12*1000ml.
o Water wasn’t audit although it was available in the stock Sheet.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

PROJECT NO 6

Stock counting of Raw and Production Store (901).

First i went In RP Store and meet with Mr. Khurram. He gave me orientation about store and then
provided safety helmet and safety jacket. After that i went inside the warehouse no 901. First of
all i just overview of store.And saw the store of one glance , in this store raw and packaging
material are available. then i start to physical verification of Assets. Inside the store lifter way is
11 feet wide. And have so many bins with separate numbers. Every production plant material is
available in this store and according to need material is transmitted to that specific production
plant.

We verified stock in warehouse no 901,we analyze the stock according to system list and every
stock is according to list. Some material shown in above table And all lists are attached with
report.

Material No: Material Description Available Stock Storage Bin


43526348 Corrugated Maggi 8,640 HB003
43369140 Nestle Bunyad Bulk 17,350 HB006
41062569 Sugar White 32,000 HB007
41060154 Cream Milk Powder 5,250 Hb011
43612388 Nestle Milk Powder Bunyad 3,645 HB012
43592819 Corrugated Everyday Mixed Tea 6,580 HB013
41060154 Cream Milk Powder 25,200 HBO15
41090013 Whey Sweet Powder 25,850 HB016
43640223 Corrugated Everyday 6,720 HB017
41090402 Milk Skimmed Powder 25,000 HB019
43558083 Nestle Milk Powder Bunyad 6,300 HB021
41062569 Sugar White 40,000 HB023
41062569 Sugar White 42,000 HB024
41062569 Sugar White 28,000 HB025
41090402 Milk Skimmed Powder 54,000 HB026
41090005 Milk Skimmed Powder 22,200 Hb028
43671942 Corrugated Everyday 5,390 HBO32
43740386 Nestle Milk Powder Bunyad 6,280 HB033

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

41060154 Cream Milk Powder 18,550 HB037


40616962 Glucose Syrup Dried 19,250 HB047

Supply Chain Structure.


Production store Dc
RP store Area(psa) Production plant

Vender
Wholesalers

Sr no Lines
shops Code
1 301
2 305
In warehouse no 901 ,there 7 lines , 3 300 in every lines different materials
available ,that line codes as follow: 4 306
5 311
6 307
7 407

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

In warehouse n0 901 two types of storage unit;

1. SU (Storage Unit)
2. Non SU (non-storage unit)

1. SU (Storage Unit)
In Storage unit full pallet material issued.

In Warehouse no 901 following lines code used and according to that code following material is
placed ;

Lines Material
code Description
301 Packaging Stock
305 Packaging Stock
300 Raw Material
306 Raw Material

On line code 301 & 305 all packaging stock available. Like packing cartons pallet, everyday
packing pallet and milk pack cartons pallets etc.

On line code 300 & 306 all raw material stock available. Like white sugar , Floor and cream milk
powder etc.

2. Non-Su ( Non storage Unit)


In Non-Storage unit as per need material issued.

In Warehouse no 901 following lines code used and according to that code following material is
placed ;

Lines Code Material Description


311 Packing Stock
307 Raw And Control Material
407 Raw And Control Material

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

On line code 311 all packaging stock available and used as per need. Like Rapping Tap etc.

On line code 307 & 407 all raw and control stock available (Noodles items). Like Sugar, super-
sill (use as salt) , carrots etc.

Deals in 4 Types of Material


1. Packaging Stock.
2. Raw Material.
3. Re-Work Material
4. Semi-Finished Goods.
 Packaging Stock
A material is used for finished product packing, called packing stock.

E.g Packing Cartons.

 Raw Material

The material is used for production, called raw material.

e.g White suger, milk , floor etc

 Re-works Material

The material that is not used with in specific time than that material is used for re-works.

E.g Nido Bulk etc

 Semi-Finished Goods

Material is ready but need to packing.

E.g Nido Bulk etc.

Some material placed in cool place (less then 23o c).

1. Lactose
2. Calcium carbonate
3. Sweet whay (ice cream)
4. Vitamins
5. Flavor cream.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

PROJECT NO 7

Project on powder production.

First I went in the powder production plant and meet with Mr.DANISH (10164324). And then I went with
Mr.Danish to the powder production plant area. First of all i analyze LECITHIN (oil) , one tank contains 1000 kg
oil, and one layer of tank contains 200kg.

Sr # Tank Values(oil) Kg
1 1 800 -
2 2 375 -
3 3(small) 150 -
4 4(Small 150 -
)
5 5(small) 150 -
Total 1625

According to system, 1720kg oil is available in the production plant, 1625kg is available in the production area,
and remaining oil (1720-1625=95kg) 95 kg is used for dozing during 5;30am to 12:15pm.

Entry in powder plant


Then i move in powder plant and we analyzed available stock.

In stock we found…

 MSK ( MILK COW SKMD POWDER).


Msk is a mineral.

MSK ACCORDING TO LIST 498.823…..

Physically msk is 275kg.

In bucket 12.14kg

Batch ready is 131.693kg.

And remaining is used in the production which is(79.99 kg).

 Ferric Pyrophosphate.
This is also mineral.

At that particular time, available stock was 220kg.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

In bucket 8.56kg.

And remaining is used in production.(29.496kg)

 Zinc sulphate powder.


Used in less quantity.

Physically o.oo.

In bucket 22.048.

Batch ready 1.606kg.

The mixture of Ferric & zinc and msk is ued for production of powder milk.

 Sugar.
Sugar is used in everyday.

Physically sugar is 19400kg.

ADRIA HOPPER =2044KG.

K-TRON HOPPER=24KG.

 Maltose.(Glucose)
Maltose is used for vitamins.

Physically is 4500kg.

ADRIA HOPPER=689KG.

K-TRON HOPPER=60KG.

(List is attached with this project).

Nido Tests
Following tests are performed for Nido….

 Dirt test
 Wet ability
 Miscibility
 State of dissolution (SOD)
 White specks
 Sieve test

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

 Moisture
 Viscosity Total solids with refract meter

Everyday Tests
 Sieve test
 Dirt test
 T-test
 Organoleptic test.

Packaging Area
Then i went in packaging area. We observed how packaging take place. We analyzed that material is used in the
production of Nido and everyday.

High hygiene Area.


Then i went HHA. Before entrance Mr.Danish gave orientation that how we enter in HGA. First of all i wore
hygine masks and caps , and i changed my shoes. And enter in HGA.

And i tally all the physical powder of everyday and nestle bunyad according to list….etc.

And everything was fine.

STRENGTH.
 Everything is working according to rules and regulation and the staff coordination is very good.
 Cleanliness is very good.

WEAKNESS.
 Mask was not wore properly.

 Mobile phones were being used by the workers during production.


LEARNING POINT.
It was good experience to visit and analyze the process in the production area. I am sure it will be helpful for me
in the future.

LEARNING POINT OVER ALL:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

It’s my first experience for me to work in multinational organization, which provided me an opportunity to
observe different between theory and practice and I leant more and more. This experience also broader my vision
and mission and confidence.

As an internee I spent good time in learning and was rewarded for my best efforts , learnt to deal with different
situations , had experience of organization, s working environment which affect an employee performance and
attitude towards work, had good time in learning.

Confidence, on time of decision making, consistency , hard work, team work , seeking success out of dark,
innovation , creativity, organization survival and customer handling techniques are the key learning’s out of my
job and I would like to say that it will be one of my best skill that would remain with me and help me in the
coming life which offer many challenges. The environment of organization is totally different when it comes to
profitability and existence.

I learnt about professional life. How to work in team. Work environment of nestle is very good and all staff and
management team is very cooperative. I ever feel confident to learn from here. I am heartily thankful all the team
of nestle. Nestle not compromised on Quality and Safety of employees.

Chapter No 05

STRUCTURE OF THE FINANCE DEPARTMENT

5.1 Department hierarchy

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Finance

Finance Finance Finance Finance Head of


Controller controller of Controller control over Reconciliatio
Of Noodle Liquid Dairy of Powder all Factory n

Number of Employees working in The Finance Department of Nestlé Kabirwala.

 Finance Manager 01
 Finance Controller Of Noodle Plant. 01
 Finance controller of Liquid Dairy. 01
 Finance Controller of Powder Plant. 01
 Finance control over all Factory(FPS, Scrape yard, Water waste Management). 01
 Head of Reconciliation. 01

Chapter No 06

FUNCTIONS OF THE FINANCE DEPARTMENT


Finance is the art and science of managing money. The primary responsibility of finance division is to provide
reliable , consistent and timely information to mamagement , regulators and internal business group to help them take
appropriate decision for improved performance of the nestle factory.

Following functions cover the finance department:

 Financial Control unit.


 General Services department.
 Reporting (Daily, Weekly, Monthly, Quarterly, Half yearly, Annually).
 Maintain and update the ledgers.
 Reconciliation control unit.

6.1 Accounting system of the organization

The accounts department of nestle factory is performing its functions computerized. Different books of
account relating with other departments are maintained here through computer software (SAP). With the help
of these books of accounts, accountant prepares daily , weekly , monthly, quarterly, semi-annually and yearly
financial statements.

6.2 Finance system of the organization.

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Finance system of nestle factory includes from how to generate finance& where to utilized it. The primary
focus of nestle factory financial system is on automating processes within the factory and to develop robust
database reporting. These data bases will form the foundation on which other applications will be built.
Comparative statement of Financial Conditions

This form is in tubular form and as the name indications it helps in analyzing the financial condition of the
firm from all perspectives. In this form factory has to do the RATION ANALYSIS of the financial statement
submitted.
All the analysis that is covered by this form is described below:
 Liquidity Ratio
 Activity Ratio
 Profibility Ratio
 Debt Ratio.

6.3 Use of electronic data in decision making


SAP

SAP stands for Systems Applications and Products in Data Processing. Designed and developed by 5 IBM
engineers during the 1970s as a standard based software alternative to custom built ERP software, SAP has come
a long way. SAP has been in the forefront of ERP software ever since.

SAP develops ERP products to be used by companies to manage their enterprise. This includes
managing their day to day operations, logistics, finances, month end, quarter end and yearly activities, reporting,
HR etc. Although there are a couple of other ERP vendors who do the same, the key differentiator for SAP is the
way in which SAP integrates all these operations and makes for a seamless system that is both easy to use and at
the same time sophisticated enough to include all kinds of complex activities that are needed for any kind of
enterprise. Examples of some of these activities could, be running Material resource planning, recruiting and
managing an employee’s lifecycle, disbursing payrolls, recording all financial transactions and drawing balance
sheets and P/L statements of the company etc. Now imagine a single system that takes care of all these diverse
activities and still keep them well integrated.

SAP was initially designed to be run on the mainframe and was called that release was called R/2
(Release 2). SAP quickly caught on to the client server model with a later release called R/3 and this was the
most popular version of SAP. After R/3, later versions of their core software were launched called Enterprise
Central Component (ECC). The automation needs of an enterprise are endless. SAP soon realized that
corporations needed business intelligence to mine data from their daily operational data and extract meaningful
trends that could enable further business opportunities. SAP BW was born and morphed into BI after buying out
Business Objects (BO).

After the hugely successful R/3, SAP created more and more niche software like Customer Relationship
Management (CRM), SRM, XI (now called Process Integration or PI) and once again living up to the standards
of SAP by maintaining tight integration with their core ECC software. Through the process of developing these
software components, SAP has slowly moved from standard client server architecture to a completely web-based
architecture where every transaction can be run from just a browser. These new dimension products developed on
the web standards based framework (NetWeaver) are all under new umbrella called mySAP.

Home screen of SAP WM stock Transaction

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

BOM

transaction in SAP Stock per Material transaction

6.4

Mobilization of funds
Nestle factory is the most efficient organs of the economy in the mobilization of resources and making a
profitable pool of these resources. Nestlé Factory its funds through:

 Shares
 Debentures

6.5 Generation of funds

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Nestle has a treasury deptt, head office based it controls all the inflow and outflow of funds. Dealing with all the
institutional investors is done by it.

Chapter No 07
Ratio Analysis
7.1 Liquidity Ratio

1. Current Ratio

Current Ratio = Current Assets / Current Liability

2015 2014
Current Assets 180,295,980,00 18405780000
Current Liability 251,431,120,00 27777240000

0.17 = 7.17% 0.66 = 66%

Interpretation:
This ratio shows how many times current assets cover current liability and the strength of the organization to pay
immediate liabilities. It means that organization assets are good and they can easily pay its liabilities.

2. Quick Assets Test Ratio

Quick Assets Test Ratio = Current Assets – inventory / Current Liability

2015 2014
Current Assets 180.295.980,00 18405780000
Inventory -- --
Current Liability 251,431,120,00 27777240000
0.71 0.71

Interpretation:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

This ratio shows how many times current assets over current liability and the strength of the organization to pay
immediate liabilities and there is no inventory. It means that organization assets are good and they can easily pay
its liabilities.

3. Net Working Capital

Net working capital= current Assets – current Liabilities

2015 2014
Current Assets 180,295,980,00 18405780000
Current Liability 251,431,120,00 27777240000
-711,351,400,0 -9371460000

Interpretation:
This formula shows that current assets of the organization is not in good position. It means that organization
assets is not in that form that the organization pay liabilities easily.

7.2 Debt Ratios

1. Debt Ratio

Debt to Asset Ratio = Total Liabilities / Total Assets * 100

2015 2014
Total Liabilities 800,000,000,0 6951459000

Total Assets 492,674,640,00 35165493000

0.16*100 = 16.23% 0.19 * 100 = 10.76%

Interpretation:
Debt ratio of nestle is suitable in each year because the nestle assets are increase gradually. That is beneficial foe
nestle.

2. Debt to Equity Ratio

Debt to Equity Ratio = Total Debt / Shareholder Equity * 100


2015 2014
Total Debt 800,000,000,0 6951459000

Shareholder Equity 126,377,620,00 12627625000

0.63 * 100 = 63.30% 0.55*100= 55%

Interpretation:
Debt-to-equity is suitable for nestle because the total debt of nestle is less and equity is more. This is suitable for
nestle.

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3. Debt Ratio

Debt Ratio = Total Liability / Total Asset

2015 2014
Total Liability 366,297,020,00 289103070000
Total Asset 492,674,640,00 51730695000
0.74 5.58

7.3 Profitability Analysis

1. Times Interest Earned Ratio

Times Interest Earned Ratio = EBIT / Interest

2015 2014

EBIT 19764323000 1686323000


Interest 17244201000 2155637000

1.146 0.18

Interpretation:

This ratio shows how many times an organization can pay their interest expense out of EBIT.

2. Net profit Margin

Net Profit Margin= Net Profit / sales * 100

2015 2014
Net Profit 8626558000 77977654000

sales 102985916000 96457743000


0.08 * 100 = 8.37 % 0.08 * 100 = 8.05%

Interpretation:

The net profit of nestle has larger and the sale also increase. This is good for nestle.

3. Return on Equity

Return on Equity= Net Profit / Shareholder equity

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

2015 2014
Net Profit 8626558000 7797654000
Shareholder Equity 126,377,620,00 12627625000
68% 61%

Interpretation:
This ratio expresses the return on shareholder equity. This ratio shows that how much profit nestle is supported by
shareholder.

4. Return on Asset

Return on asset = Net profit / Total asset

2015 2014
Net Profit 8626558000 7797654000
Total asset 49267464000 35165492000
1.75 0.22

Interpretation:
This ratio expresses the capacity of earning profit by a organization on its total assets employed in the business.
Nestle profit increase because asset is increased.

5. Fixed Asset turnover

Fixed Asset Turnover = Sales / Fixed Assets

2015 2014
Sales 102985916000 96457743000
Fixed Assets 31237866000 33324915000
3.29 2.89

Interpretation:

This ratio indicates how well the fixed assets are being utilized. This ratio expresses the part of fixed assets in
generating sales. But in 2014 nestle less utilized the fixed asset than fixed assets of 2015.

6. Total Asset Turnover

Total Asset Turnover = sales / Total asset


2015 2014

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

Sales 102985916000 96457743000


Total asset 49267464000 35165493000
2.09 1.01

Interpretation:

This ratio represents the amount of revenue generated by a company as a result of its assets on hand. This shows
the role/part of total assets in generating sales. In this organization total assets turnover ratio is good.

7.4 Analysis for investor

1. Earnings Per Share

Earnings per Share = Earnings Available for Common Stock / Total number of shares

2015 2014
Earnings Available for 8626558000 7797654000
Common Stock
Total number of shares 45349584 45349584
190.22 % 171.20%

2. Dividend Payout Ratio

Dividend Payout Ratio = Divided paid / Total number of shares

2015 2014
Divided paid 8619505000 7032581000
Total number of shares 45349584 45349584
190% 155%

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Chapter No 08
SWOT ANALYSIS

SWOT Analysis of NESTLE is as follow:

8.1 Strengths

The strengths of Nestle are as follow:

1. Nestle has leading market position by operating all over the world.

2. Nestle has very much trained staff, other factories prefer to hire Nestle staff like engro foods , fouji foods etc.

3. Nestle has high brand recall. It is recognized by customers all over the country.
4. Dedicated workforce in the back offices of nestle.

5. In Pakistan nestle operates from its head office Lahore.

6. Nestle engineers are skilled persons even other companies obtain their services in some technical work.

8.2 Weakness

The weakness of Nestle are as follow:

1. The centralized system is one of the biggest obstacles in long term success of Nestle.

2. Nestle has less number of factories as compared to its demand.

3. Over staffing in Nestle.

4. Lack of motivation and resources.

5. Charging cost is higher as compared to competitors.

6. Lack of marketing activities as compared to competitors.

8.3 Opportunities’

The opportunities of Nestle are as follow:

Opportunity exist in the external environment. They need to be recognized and used according to the business being
run. An opportunity recognized and utilized at the right time will be the strength of tomorrow. Such kind of
opportunity aslo exist for nestle in the external environment. Some of them are as follow:

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NESTLE KABIRWALA FACTORY LTD. PAKISTAN

1. Nestle has huge potential in middle east if nestle upgrades its machinery.

2. Nestle can generate more revenue by attracting customers through wen and mobile sms system.

3. Nestle can attract Pakistanis who are living in backward areas of Pakistan.

4. Nestle can start separate cargo services.

8.4 Threats

The threats to Nestle are as follow:

1. Entrance of competitors like fouji foods , engro foods etc.

2. Another threats of nestle is the shortage of employees.

3. Political interference in HR policies like hiring and recruiting show favoritism and nepotism.

4. Negative rising perception about nestle, regarding strikes.

5. Negative rising perception about nestle, regarding terrorism.

6. Political instability.

7. Rising prices of every raw material

8. Over staffing at all levels.

9. Fast growing domestic and international competitors.

10. Effective promotion strategy adopted by other competitors.

Why I Choose Nestle?

I choose nestle, because it is a multinational company and I want to gain experience under multinational
company. Because nestle provided Quality food. I learnt more and my all seniors (staff of nestle) are very
cooperative and help out in my learning. In nestle kabirwala all the rules and regulations are followed by
everybody. It was very good experience and its my pleasure that I worked out in Nestle factory.

Chapter No 09

CONCLUSION:

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Finally I reached a conclusion; Nestle has a huge workforce and workforce is just like an assets for the
organization. Nestle is having a healthy structure of its functioning departments. Intense focus on career
development, honesty and integrity pf all stakeholders and most importantly performance appraisal will leads to
better performance and ultimately corporation success. Nestle is the good organization. A person can get more
benefit for long term carrier working. Management of the Nestle is very hardworking and Nestle is place where I
have done in my internship. I appreciate the mess system of nestle because it’s my first experience and saw all
top level management and low level management are in same table. Environment of nestle is very impressive.
Nestle should chance to other employee to promote their skills in the organization.

Chapter No 10

REFERENCES

In Order to collect data, I used following modes of research:-


o Personal Observations
o Existing Documents
o Annual Report of Nestle.
o Official broachers.
o Official magazines.
o Wikipedia.
o Previous reports.
o Employees of nestle.
o Finance deptt of nestle.
o HR deptt of nestle.

Website

www.nestle.com.pk

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Thank You So Much

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