Joint venture company in 1965 Providing innovative and high quality biscuits

The first food company in Pakistan to promote biscuits as 'food between meals' Since 1967, the country's leading manufacturer of biscuits and cookies

 To provide high quality value-added food to contemporary and future generations To constantly endeavor for the acquisition of knowledge and excellence in developing human skills, product innovations and state-of-the-art technologies To be a good corporate citizen by giving back to the community and improving the lives of the underprivileged To become a partner with the Government in sharing the responsibility of economic and social uplift and development of Pakistan

 Believe that no individual is bigger than the institution Believe in integrity, transparency and commitment as our cultural ethos

Believe in governance in human face

Protect and promote the cause of the environment Emphasize on employee welfare Believe in leading and innovating in all aspects of business

 Inventory Purchase General Items

 Raw material is purchased on the basis of forecast made by the marketing department. Raw material is purchased after the quotation from supplier. Packaging material is sourced from the local market depending on the nature of the finished products. Once the consignment of the supplier arises; it is recorded in the ERP system through MNR (Material Receiving Note) and issued to production through MCN (Material Consumption Note).

 Items like stationary, computer accessories, engineering tools needed in electrical, mechanical and civil worker is purchased.

The category of general items has been distributed to different official related to nature of job. Demand note is prepared when there is a need of general item in the ERP system (Inventory and Procurement Management)

Forecast (MKT)

Material Planning

Supplier Enquiry

Mailing

Quotation

Opening of LC

Purchase Order

Raw/Packaging received

QA sampling

Accepted

Rejected

Stored through MNR

Sent back to supplier

 Safety stock is now becoming a major issue for every process industry globally, weather in the form of raw material or finished goods.

It depends how effective a supply chain is for an organization. When it comes to raw material, inventory is build up when prices tend to go high or there is a chance of uncertainties

 Although EBM does employs safety stock methodology but due to lack of space they are bound to do it.FGS store has a maximum capacity of 90000 masters cartons but on average 15000 masters cartons are dispatched on daily bases versus 15000 units of production. Also transfer is taken from production on daily bases due to which there is a bottle neck in dispatch of finished goods. There should be an expansion in FGS so that volume of finished goods can be increased.

 Plain Sweet Biscuits o Gluco o Marie o Sooper o Whole Wheat Slice Nuts o Peanut Pik o Peanut Pista

 Cream Biscuits o Choco Vanilla Sandwich o Chocolate Sandwich o Lemon Sandwich o Rio Double Treat Chocolate/Vanilla o Rio Double Treat Strawberry/Vanilla o Rio Vanilla

Crackers o Butter Puff o Marvell o Saltish

Receiving Raw Material RM Unload in Quarantining Area

QA Inspection

Rejected by QA

QA Inspection

RMS Store Cold Room 1 Flour/Sugar Grinding Mixing Storage Area Nuts Cleaning/Grinding Weighing Area

Mixing Process
Hopper Cutting Baking Packing Master Cartons Filling QA Packing / Coding QA Inspection Transfer and Storage in FGS Distributors Retail Shop

Customer

 Material Receiving Production Process Production Step 1 : Mixing Production Step 2 : Cutting Production Step 3 : Banking Cooling (Buffer Zone) Production Step 4 : Packaging Dispatch Export

Material Receiving:
o Supply Chain contact approved suppliers and purchase raw material from them. o Supplies come through trucks. In case of some materials, material is not offloaded without testing. o Sampling and testing is carried out by QA personnel. Composite sample is collected to get good results. o After approval, incoming material is stored in raw material store and packaging material store, whereas sensitive items such as butter, color, flavors are stored in cold rooms. o In rest of the cases, Quality assurance performs testing after material is stored in relevant stores and then accepts/rejects the material.

Production Process:
o Information for daily production plan is supplied by marketing and sales department on the basis of customer demand. o Keeping in view these factors, production plan is made.

Production Step 1: Mixing

o There are six different mixing areas.

o For a specific product, ingredients are weighed (according to pre-defined recipe) in weighing area. o Mixing is carried out in either vertical or horizontal mixer, depending upon the nature of the product.

Production Step 2: Cutting

o After mixing, dough is transferred from hopper to cutting line. o There are total 6 lines, which are reserved for different products. o Dough passes through the conveyer belt and is shaped according to product.

 Production Step 3: Banking

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

o Different types of heating devices are present in oven which provides different temperature.
o Approximately 6 minutes are passed in oven during which different temperatures treatment are given to biscuits starting form lower to higher temperature. o Conveyer belt then moves to Buffer Zone.

Cooling (Buffer Zone)

o After high temperature treatment baked, biscuits are not very stable and texture is not fully developed, thats why they are passed through Buffer Zone for cooling. o It is merely an area consisting of relatively low temperature. Conveyer belt containing biscuits passes through this area to cool down the biscuits.

 Production Step 4: Packaging

o After cooling, workers pick the biscuits for conveyer belt and place them in different gauges set according to Ticky Pack (TP), Snack Pack (SP), Half Roll (HR) or Family Pack (FP). o Biscuits are automatically packed in final packaging material (inner sealing) in case of TP, SN, HR, and then are finally packed in master cartons.

o FP is packed in 3 different packaging material; inner sealing, outer sealing and then finally master carton.
o Master cartons are sealed and are transferred to finished goods store.

Dispatch
o Products are stored in finished goods store according to date are dispatched on FIFO (First in First Out) basis. o QA performs final checking of finished products, after which product is dispatched through trucks to different distributors. o Distributors further distribute the product to retailers.

 Export
o Peak Freans products are also exported to different countries of the world including USA, UK, and Canada etc. o Export order is raised from sales and marketing department. o Export order contains the name, type, quantity, packing specifications of the product. o Supply chain and production is enquired whether they can produce the required amount of product in limited time. o After their approval, product is manufactured according to specifications defined in export order. o Product is packed in containers which are shipped to the destination. o After customs clearance, containers are delivered to address mentioned on the export order.

 Procedure for evaluation of supplier Procedure for Procurement of Raw/Packaging Material

o o o o o General procedure Raw material procurement planning and management Packaging material procurement planning and management General, technical and it items procurement Imported items procurement planning and management

 Supplier is evaluated on the basis of range of products and services he provides. The supplier is required to furnish details of his quality system.

Supplier performance is evaluated be Supply Chain Dept.

Suppliers end survey is to be conducted upon requirement. If the system/ supplies are not flowing properly then it needs to be addressed through site survey. Based on the information gathered supplier is approved / rejected.

 Procurement of Materials is done on the basis of Annual Sales Budget Raw & Packaging Materials are purchased from Approved Suppliers only.

Approved Standard Specifications of all materials are given to suppliers

Negotiation of prices of various materials depends on quantity purchased in a certain period. Rates of various materials vary at different interval. For locally purchased items, normally one month credit period is allowed except for few items which payment is made on delivery. In case of Engineering / IT / General Items, the payments terms are negotiated on case to case basis.

 Requirement is computed on the basis of Weekly Production Schedule Purchase Order is issued to Local Suppliers with all terms and conditions and specifications / credit record After Receipt of Material QA department collects the samples of receipt material and verifies them

If the material is rejected by QA, the rejected materials are returned to the supplier
Bills are received at MM Department from the suppliers and sent to Finance Department

 Monthly Requirement is generated Comprehensive Report on periodic basis

on

the

basis

of

Purchase Order is issued to Local Suppliers with all terms and conditions and specifications / credit record. After Receipt of Material QA department collects the samples of receipt material and verifies them

If the material is rejected by QA, the rejected materials are returned to the supplier
Bills are received at MM Department from the suppliers and sent to Finance Department

 Demand Note is received for purchase of General / Technical / IT equipments. Required materials are arranged from on spot market buying Purchase Order is issued Material is received by concerned Stores Bills are received at MM Department from the suppliers and sent to Finance Department

 Requirement for Imported Raw Material is generated on period basis A letter is sent to supplier or their Agent in Pakistan and Price / Rate is negotiated Application is sent for L/C to the bank Copy of L/C is sent to Supplier through courier / fax. Negotiable documents are received from our bank Clearing Agent arranges for clearance of consignment and delivery at EBM Bill of Clearing Agent is sent to HOD for approval.

 A better ERP system should be implemented which will increase the companies effectiveness, efficiency and overall productivity Stricter controls should be put on material handling, storage, its usage and how much inventory is available and how much need to be ordered this way the company will be able to reduce wastage levels. Raw Material should be stored according to FIFO which avoids bottle neck in dispensing the raw material Raw Material should be kept at 20 feet away from main entrance, because once the gate opens there are chances of pesticide entering the store. EBM should deploy self distribution in spite of hiring on contractual bases, this will leave a positive perception on the consumers mind once they see transport vehicle of the company.