Supply Chain Internship Report - EFL Sahiwal Plant

Institute of Chemical Engineering & Technology
University of the Punjab, Lahore.
Submitted To:
Mr. Hassan Altaf
(Assistant Manager Planning
Submitted By:
Muhammad Umer Chishty
& Technology
Planning, ICP)
Umer Chishty (Intern: Supply Chain Planning, EFL, Sahiwal)
INTERNSHIP REPORT
(JUNE
(Intern: Supply Chain Planning, EFL, Sahiwal)
INTERNSHIP REPORT
UNE-AUGUST 2010)

CONTENTS
ACKNOWLEDGEMENTS................................
Executive Summary: ................................
ENGRO at a Glance: ................................
Overview of Ice Cream Plant: ................................
Process Description: ................................
Raw Materials / Warehouse and PLANNING:
Mix Processing:................................
Types of Mixing and Equipments used:
Mixing................................................................
PFD of mix processing hall:................................
Pasteurizer: ................................................................
Homogenizer: ................................
Aging Vessels & Production Hall:
Description of Six Production Lines:
Comet Machine:................................
Freezers and their constraints: ................................
Maintenance Issues:................................
Overall Equipment Efficiency:................................
Targets of Production: ................................
Some Tidbits:................................................................
Engro Foods Supply Chain Limited:
Supply Chain Overview................................
F.M.C.G:................................................................
Business / Organizational Setup:................................
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Raw Materials / Warehouse and PLANNING:................................................................................................
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Types of Mixing and Equipments used: ................................................................................................
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Description of Six Production Lines: ................................................................................................
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Engro Foods Supply Chain Limited: ................................................................................................
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Supply Chain Planning:................................
Types of Planning:................................
Demand Planning: ................................
Supply Planning: ................................
Supply Planning Constraints:................................
Production Planning: ................................
Production Planning Constraints:................................
Inventory handling in system (SAP):
Role of Marketing, Brands and Finance in or outside Supply Chain:
Central Locating Testing: ................................
Finance: ................................................................
VMI Implementation:................................
ROP & EOQ:................................................................
Formula of Economic Order Quantity (EOQ):
Continuous Review System ................................
Safety Stock in case of Inventory Levels of RM & PM:
Reasons for safety stock ................................
Inventory policy ................................
Days Cover and Lead Time concept:
YTD Production Plans and MPS:................................
SKU Trends:................................................................
BIBLIOGRAPHY: ................................
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Inventory handling in system (SAP): ................................................................................................
Role of Marketing, Brands and Finance in or outside Supply Chain: ...........................................................
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der Quantity (EOQ):................................................................................................
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Safety Stock in case of Inventory Levels of RM & PM: ................................................................
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Days Cover and Lead Time concept:................................................................................................
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ACKNOWLEDGEMENTS
I AM OBLIGED TO HAVE S
MADE MY WORK EASIER
PASSION FOR LEARNING IN AN
GUIDING ME THOROUGHLY
I AM THANKFUL TO M
RAZA, MR. AHMAD
REHMAN GHOURI
AHMAD, MR. ALTAF
SUPPLY CHAIN IS A DIFFERENT
BESIDES TECHNICAL KN
PLANT. MR. HASSAN
HELPED ME OUT THROUG
PLANNING KNOWLEDGE
MARKETING AND FINANCE DEPARTMEN
DIFFICULT TO LEARN I
WITHOUT OBSERVING PL
OTHERS HELPED ME IN U
PROCESSING, PROCESS FLOWS
ACKNOWLEDGEMENTS
AM OBLIGED TO HAVE SUCH ENERGY PROVOKING MENTORS WHO
MADE MY WORK EASIER BY ENHANCING MY ENTHUSIASM AND
LEARNING IN AN INDUSTRIAL ENVIRONME
E THOROUGHLY.
MR. HASSAN ALTAF, MR. MIAN
HMAD ABDUL JAMEEL, MR.
HOURI, MR. UMER FAROOQ, MR.
LTAF, AND MR. SHAHID MANZOOR
HAIN IS A DIFFERENT PERSPECTIVE OF LEARNING
BESIDES TECHNICAL KNOWLEDGE LEARNT FROM THE ICE CREAM
ASSAN ALTAF AND MR. ABRAR AHMAD
HELPED ME OUT THROUGH THIS PHASE OF SEEKING SUPPLY
LANNING KNOWLEDGE, BUSINESS SENSE, HOW PURCHASE
ND FINANCE DEPARTMENTS WORK. IT WAS FAR
DIFFICULT TO LEARN IT WITHOUT HAVING TECHNICAL SKILLS AND
WITHOUT OBSERVING PLANT AND ITS CONSTRAINTS AS WELL
THERS HELPED ME IN UNDERSTANDING THE PLANT AND
PROCESS FLOWS, MACHINES’ OPERATIONS
iii
MENTORS WHO
USIASM AND
INDUSTRIAL ENVIRONMENT AND
IAN AHMED
ABDUL
. ABRAR
ANZOOR.
SPECTIVE OF LEARNING FOR ME
THE ICE CREAM
HMAD WHO
UPPLY CHAIN
HOW PURCHASE, BRANDS,
T WAS FAR
HNICAL SKILLS AND
NTS AS WELL.
NT AND ITS
OPERATIONS, ETC.

EXECUTIVE SUMMARY
SECOND LARGEST PLAYER
HAVING SUCH AN ENTHU
PROGRESSING BY LEAPS
PAKISTANI ORGANIZATIO
FOODS LIMITED GOING TO BE KNOWN
CHAIN LIMITED.
I WORKED AS AN INTERNE
PLANNING.
SPENT TIME AND WORKED
EFFICIENCIES OF MACH
PRODUCTION LINES AND THEIR EFFECTS ON
IN PLANNING, I GATHERED HISTORICAL
IMPLEMENTATION, WORKED ON
PRODUCTION PLANS
QUARTERLY AND HALF YEARLY
SKU TRENDS BY THE YEAR
UMMARY:
ECOND LARGEST PLAYERS OF BUSINESS IN ICE CREAM IN
HAVING SUCH AN ENTHUSIASTIC, ENERGETIC AND PASSIONATE TEAM
PROGRESSING BY LEAPS AND BOUNDS TO BECOME THE PREMIE
AKISTANI ORGANIZATION WITH A GLOBAL OUTREACH
GOING TO BE KNOWN AS ENGRO FOODS
WORKED AS AN INTERNEE AT ICE CREAM PLANT IN SUPPLY
PENT TIME AND WORKED UPON CALCULATING CAPACITIES AND
EFFICIENCIES OF MACHINES. WORKED UPON THE CONST
AND THEIR EFFECTS ON FINISHED GOOD
GATHERED HISTORICAL DATA, STUDIES
WORKED ON ROP, EOQ, FG SAFETY
LANS, INVENTORY LEVELS OF RM
ALF YEARLY OEE FROM HISTORICAL DATA
RENDS BY THE YEAR
iv
REAM IN PAKISTAN
NATE TEAM
TO BECOME THE PREMIER
EACH. ENGRO
OODS SUPPLY
UPPLY CHAIN
ACITIES AND
ORKED UPON THE CONSTRAINTS IN
OOD.
ON VMI
AFETY STOCK,
& PM,
FROM HISTORICAL DATA AND
RENDS BY THE YEAR 2011.

ENGRO AT A GLANCE
In 1957, the search for oil by Pak
Stanvac, an Esso/Mobil joint venture led
to the discovery of the Mari Gas field
near Daharki, a small, remote area in
Upper Sindh province at the time. Esso
proposed the establishment of a urea
plant in that area which le
plant agreement signed in 1964. In the
subsequent year, Esso Pakistan Fertilizer
Company Limited was incorporated,
with 75% of the shares owned by Esso
and 25% by the general public.
The construction of a urea plant commenced at Daharki i
production began in 1968 with an annual production capacity of 173,000
tons. It was the single largest foreign investment by a multinational
corporation in Pakistan at the time.
A full-fledged marketing organization was established which undert
agronomic programs to educate the farmers of Pakistan. As the nation’s
first fertilizer brand, Engro helped modernize traditional farming practices
to boost farm yields, directly impacting the quality of life not only for
farmers and their families, bu
efforts, consumption of fertilizers increased in Pakistan, paving the way for
the Company’s branded urea called “Engro”, an acronym for “Energy for
Growth”.
LANCE:
In 1957, the search for oil by Pak
Stanvac, an Esso/Mobil joint venture led
to the discovery of the Mari Gas field
near Daharki, a small, remote area in
Upper Sindh province at the time. Esso
proposed the establishment of a urea
plant in that area which led to a fertilizer
plant agreement signed in 1964. In the
subsequent year, Esso Pakistan Fertilizer
Company Limited was incorporated,
with 75% of the shares owned by Esso
and 25% by the general public.
The construction of a urea plant commenced at Daharki in 1966 and
corporation in Pakistan at the time.
fledged marketing organization was established which undert
farmers and their families, but for the nation at large. As a result of these
1
n 1966 and
fledged marketing organization was established which undertook
t for the nation at large. As a result of these

The Company continued to prosper as it relentlessly
gains and strived to attain professional excellence. In 1991, it was renamed
as Engro Chemical Pakistan Limited
to strength, reflected in its consistent financial performance, growth of the
core fertilizer business, and diversification into other businesses.
Engro Chemical Pakistan Limited then started a journey of venturing into
other sectors including foods, energy, industrial control and automation,
PVC resin manufacturing and marketing, and chemi
Engro Foods Limited was officially launched as a fully owned subsidiary of
Engro in 2004. Using dairy as a stepping stone to enter into the food
business, the Company has established state of the art processing units in
Sukkur and Sahiwal, along with an ice cream production facility in Sahiwal
Top quality brands like
been successfully launched under the helm of Company’s dairy products. To
support these brands and their highest standar
has invested heavily in milk processing and milk collection infrastructure.
After the success of our dairy products, to which our customers testify,
Engro Foods now plans to venture beyond the dairy sector. In this pursuit,
grain and fruit markets have been analyzed in great detail.
Engro Foods’ vision is “Elevating Consumer Delight Worldwide”
Company aims to generate a significant portion of its revenue from foreign
operations.
The Company continued to prosper as it relentlessly pursued productivity
Engro Chemical Pakistan Limited; the company has gone from strength
tilizer business, and diversification into other businesses.
PVC resin manufacturing and marketing, and chemical terminal and storage.
was officially launched as a fully owned subsidiary of
d Sahiwal, along with an ice cream production facility in Sahiwal
Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum
support these brands and their highest standards of quality, Engro Foods
and fruit markets have been analyzed in great detail.
“Elevating Consumer Delight Worldwide”
2
pursued productivity
; the company has gone from strength
cal terminal and storage.
was officially launched as a fully owned subsidiary of
d Sahiwal, along with an ice cream production facility in Sahiwal
Owsum have
ds of quality, Engro Foods
“Elevating Consumer Delight Worldwide” and the

All the red tags shows in the map of Paki
These cities from the top of the map, in the sequence are:
All the red tags shows in the map of Pakistan are the places where ENGRO’s are working.
These cities from the top of the map, in the sequence are:
3
stan are the places where ENGRO’s are working.

 Islamabad
 Lahore
 Sahiwal
 Multan
 Bahawalpur
 Daharki
 Qadirpur
 Sukkur
 Hyderabad
 Karachi
These are the different departments of ENGRO CORPThese are the different departments of ENGRO CORP
4

Detailed Plant Visit:
OVERVIEW OF
An overview of the complete ice cream
flow diagram:
6 Production LinesPacking and
Conveying
NH3 Refrigeration
Tunnels
Material Issuance
Detailed Plant Visit:
VERVIEW OF ICE CREAM PLANT
n overview of the complete ice cream plant is given in the following
Freezers6 Production Lines
Cold Store Room
(Pellets form)
Mix Processing Pastuerization
6
LANT:
plant is given in the following
Homogenization
18 Aging
Vessels/tanks

PROCESS DESCRIPTION
Ice Cream Production starts from the raw materials, going through a
semi finished good, i.e.,
cream. After the CIP of mixing vessels and OPC of other equipments of Mix
Processing Hall, Liquid and Solid ingredients are mixed together and a
rework (if any) in the mixing vessels, then sent to the Pasteur
Homogenizer to get the mix homogenized a size of a micron and free of
micro-organisms like bacteria at CCP of Pasteurizer.
This pasteurized and homogenized mix is then sent to aging vessels
store there for at least 4 hours
This Mix is hence, sent to respective freezers and at the outlet each
production line is connected its respective freezers, which gets the mix and
produce the finished good, packs it and conveys to the Hardening Tunnel/
Refrigeration Tunnel and then to Cold Store Room.
RAW MATERIALS / WAREHOUSE
Material requirements planning (MRP)
inventory control system used to
MRP systems are software
hand as well.
ESCRIPTION:
semi finished good, i.e., a mix ends at the finished good or a packed ice
rework (if any) in the mixing vessels, then sent to the Pasteur
organisms like bacteria at CCP of Pasteurizer.
This pasteurized and homogenized mix is then sent to aging vessels
4 hours. This is also called as Semi- finished Good.
Refrigeration Tunnel and then to Cold Store Room.
AREHOUSE AND PLANNING:
Material requirements planning (MRP) is a production planning and
control system used to manage manufacturing processes. Most
software-based, while it is possible to conduct MRP by
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a mix ends at the finished good or a packed ice
rework (if any) in the mixing vessels, then sent to the Pasteurizer and
This pasteurized and homogenized mix is then sent to aging vessels to
finished Good.
is a production planning and
processes. Most
based, while it is possible to conduct MRP by

An MRP system is intended to simultaneously meet three objectives:
 Ensure materials are available for
for delivery to customers.
 Maintain the lowest possible level of inventory.
 Plan manufacturing activities, delivery schedules and purchasing
activities.
At Ice Cream Plant, core parts of a
Room and Cold Store Room
Dry Store consist all the dry raw materials such as nuts, chocolate
spray and chocolate coating as well as all the packaging materials, etc.
Storing is done in the form of shelves and pellets.
"Manufacturing organizations, whatever their products,
face the same daily practical problem
products to be available in a shorter time than it takes to make
them. This means that some level of planning is required."
Similarly, Cold Store Room is comprised of all the finished good, i.e.
Ice Cream. ICP has the 3 cold store rooms (recently expanded 3
of 1000 pellets. The temperature of Cold Store Room is negative 28
cooling is done with the help of NH
All the constraints are taken into account, i.e. if the packaging
material and raw material is provided in time to fulfill the production plan
or not. Expiry dates for each raw material may not exceed the production
date or it may be dumped before. Otherwise it will affect the production
and hence production may be stopped due to shortage or lack of materials.
Each and everything works upon the criteria of Lead Time of each material.
are available for production and products are available
to customers.
Maintain the lowest possible level of inventory.
Plan manufacturing activities, delivery schedules and purchasing
At Ice Cream Plant, core parts of a Material Warehouse are Dry Store
Room and Cold Store Room.
Storing is done in the form of shelves and pellets.
face the same daily practical problem - that customers want
tore Room is comprised of all the finished good, i.e.
Ice Cream. ICP has the 3 cold store rooms (recently expanded 3rd
of 1000 pellets. The temperature of Cold Store Room is negative 28
cooling is done with the help of NH3 Compressors and refrigeration system.
e dumped before. Otherwise it will affect the production
8
are available
Plan manufacturing activities, delivery schedules and purchasing
are Dry Store
that customers want
tore Room is comprised of all the finished good, i.e.
rd
one), each
of 1000 pellets. The temperature of Cold Store Room is negative 28o
C. This
d refrigeration system.
e dumped before. Otherwise it will affect the production

The cold store room must contain at least day’s co
each product (Finished Good). Or it may be considered as safety stock and
production will be done in order to fulfill the requirement of sales. But
unnecessary planning of production must be prohibited, so the extra and
unnecessary stock may not be stored in cold store such that the required
product may not get the desired place in
Making a bad decision in any of these areas will make the company lose
money. A few examples are given below:
 If a company purchases insuffici
manufacturing (or the wrong item) it may be unable to meet contract
obligations to supply products on time.
 If a company purchases excessive quantities of an item, money is
wasted - the excess quantity ties up cash while it
and may never even be used at all.
 Beginning production of an order at the wrong time can cause
customer deadlines to be missed.
MRP is a tool to deal with these problems. It provides answers for several
questions:
 What items are required?
 How many are required?
 When are they required?
MRP can be applied both to items that are purchased from outside
suppliers and to sub-assemblies, produced internally, that are components
of more complex items.
The cold store room must contain at least day’s covers of 15 days of
may not be stored in cold store such that the required
product may not get the desired place in that store room.
money. A few examples are given below:
If a company purchases insufficient quantity of an item used in
obligations to supply products on time.
If a company purchases excessive quantities of an item, money is
the excess quantity ties up cash while it remains as stock
and may never even be used at all.
Beginning production of an order at the wrong time can cause
customer deadlines to be missed.
items are required?
are required?
are they required?
assemblies, produced internally, that are components
9
vers of 15 days of
may not be stored in cold store such that the required
ent quantity of an item used in
If a company purchases excessive quantities of an item, money is
remains as stock
Beginning production of an order at the wrong time can cause
assemblies, produced internally, that are components

The data that must be considered include:
 The end item (or items) being created. This is sometimes called
Independent Demand or Level “0 on BOM (
 How much is required at a time.
 When the quantities are required to meet demand.
 Shelf life of stored materials.
 Inventory status records. Records of
already in stock (on hand) and materials on order from suppliers.
 Bills of materials. Details of the materials, components and sub
assemblies required to make each product.
 Planning Data. This includes all the restraints and directions to
produce the end items. This includes such items as: Routings, Labor
and Machine Standa
Cell and Push commands, Lot sizing techniques (i.e. Fixed Lot Size,
Lot-For-Lot, and Economic Order Quantity), Scrap Percentages, and
other inputs.
Outputs
There are two outputs and a variety of messages/repor
 Output 1 is the "Recommended Production Schedule" which lays out
a detailed schedule of the required minimum start and completion
dates, with quantities, for each step of the Routing and Bill Of
Material required to satisfy the demand from the
Schedule (MPS).
 Output 2 is the "Recommended Purchasing Schedule". This lays out
both the dates that the purchased items should be received int
considered include:
(or items) being created. This is sometimes called
Independent Demand or Level “0 on BOM (Bill of materials
How much is required at a time.
When the quantities are required to meet demand.
Shelf life of stored materials.
Inventory status records. Records of net materials available
s of materials. Details of the materials, components and sub
assemblies required to make each product.
Planning Data. This includes all the restraints and directions to
and Machine Standards, Quality and Testing Standards, Pull/Work
Lot, and Economic Order Quantity), Scrap Percentages, and
There are two outputs and a variety of messages/reports:
Output 1 is the "Recommended Production Schedule" which lays out
Material required to satisfy the demand from the Master Production
Output 2 is the "Recommended Purchasing Schedule". This lays out
both the dates that the purchased items should be received int
10
(or items) being created. This is sometimes called
Bill of materials).
available for use
s of materials. Details of the materials, components and sub-
Planning Data. This includes all the restraints and directions to
rds, Quality and Testing Standards, Pull/Work
Lot, and Economic Order Quantity), Scrap Percentages, and
Output 1 is the "Recommended Production Schedule" which lays out
Master Production
Output 2 is the "Recommended Purchasing Schedule". This lays out
both the dates that the purchased items should be received into the

facility AND the dates that the
Release should occur to match the production schedules.
Messages and Reports:
 Purchase orders. An order to a supplier to provide materials.
 Reschedule notices. These
delaying or speeding up existing orders.
MIX PROCESSING:
The backbone of Ice Cream Production
from the material issuance from the warehouse and hence these materials
are in dry /solid form, such as sugar, wheat flour, etc. other Liquid
Ingredients are stored in LIA (Liquid Ingred
Glucose, Cream, Vegetable Oil
Mixing at ICP is totally controlled with the help of PLC and HMI
the dosing of solid ingredients is done by the man power /manually. This
mixing is done in 2 mixing vessels, each of 2000 kg/
Total time taken to form a mix and then deliver to aging vessels is about 35
– 40 minutes.
This mix is then sent to the pasteurizer with the help of pumps. All
the equipments are installed on the basis of PNEUMATIC or HYDRAULIC
CONVEYING of substances/ mix.
Pasteurizer kills the bacteria, if pasteurization is carried for 29 sec at
about 80o
C and hence th
facility AND the dates that the Purchase orders, or Blanket Order
Release should occur to match the production schedules.
. An order to a supplier to provide materials.
Reschedule notices. These recommend cancelling, increasing,
delaying or speeding up existing orders.
The backbone of Ice Cream Production is “Mixing”. This process starts
Ingredients are stored in LIA (Liquid Ingredients Area) which includes
Cream, Vegetable Oil, etc.
Mixing at ICP is totally controlled with the help of PLC and HMI
mixing is done in 2 mixing vessels, each of 2000 kg/0.5hr (average)
is then sent to the pasteurizer with the help of pumps. All
CONVEYING of substances/ mix.
C and hence the desired food product is safe from getting
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, or Blanket Order
. An order to a supplier to provide materials.
cancelling, increasing,
is “Mixing”. This process starts
which includes
Mixing at ICP is totally controlled with the help of PLC and HMI but
(average) capacity.
is then sent to the pasteurizer with the help of pumps. All
e desired food product is safe from getting

contaminated. Mix is then homogenized with the help of a
will be discussed in later section in detail.
Other areas of Mix Processing Hall includes CIP Room, in which tanks
and vessels full of CIP,
chlorinated), and washing water (chlorinated), cleansing and jacketed oil
tank (hot water tank) are kept, sent pneumatically wherever they are used.
LIA: Liquid Ingredients Area is the area comprised of Glucose, Veg
and Cream tanks which are also controlled pneumatically and used as per
recipe.
The total mixing capacity of this hall is about
calculated through proper calculations, but it varies every year accordingly
changing with process and shifts
TYPES OF MIXING AND
MIXING is usually of three types:
1. Convective; in which groups of particles are moved from one
position to another.
2. Diffusion; where the particles are distributed over a freshly
developed interface.
3. Shear; where slipping
Blending or mixing which occurs at ice cream plant in mixing vessels is of
1st
type, i.e. convective mixing.
This blending occurs, in which fats and oils are mixed in water with
the help of emulsifiers and stabilizers, hence the
known as Emulsification.
contaminated. Mix is then homogenized with the help of a homogenizer;
will be discussed in later section in detail.
and vessels full of CIP, OPC, detergents, product water tank (de
LIA: Liquid Ingredients Area is the area comprised of Glucose, Veg
The total mixing capacity of this hall is about 29 Mi kg/year
changing with process and shifts time.
IXING AND EQUIPMENTS USED:
is usually of three types:
; in which groups of particles are moved from one
position to another.
; where the particles are distributed over a freshly
developed interface.
slipping planes are formed
type, i.e. convective mixing.
the help of emulsifiers and stabilizers, hence the process thus occurs is
known as Emulsification.
12
homogenizer; it
OPC, detergents, product water tank (de-
LIA: Liquid Ingredients Area is the area comprised of Glucose, Veggie
29 Mi kg/year,
; in which groups of particles are moved from one
; where the particles are distributed over a freshly
process thus occurs is

Blades of these two mixing vessels are thin and fan shaped due to a
reason that the sugar is thoroughly mixed in hot water.
Coloring agents are not added in the mixing vessels due to high
temperature of about 60
PFD OF MIX PROCESSING HA
(4000, 6000 and 8000kg capacities)
Homogenizer
(Cap. 5000ltr/hr)
Pasteurizer
(Cap.
5000ltr/hr)
Mixing Control room
ENTERANCE
reason that the sugar is thoroughly mixed in hot water.
0-65o
C, the color gets disappeared.
OF MIX PROCESSING HALL:
18 aging Vessels
(4000, 6000 and 8000kg capacities)
2 mixing tanks
(Cap. 2000kg)
CIP Room
LIA (Materials
feeding vessels)
13
LIA (Materials
feeding vessels)

PASTEURIZER:
This equipment works on the principle of a scientist named Louis
Pasteur, who discovered a phenomenon named
In this process the substance is heated to about 79 or 80
to kill the pathogenic bacteria.
There is a hazard at this stage, if not controlled properly can be fatal
as well. A terminology devised internationally by
(Hazard Analysis Critical Control Point) is divided into two stages, CCP 1 and
CCP2.
If, for example, the mix is not passed yet through Pasteurizer it is
CCP1, because it must be passed after passing through PHE (Plate Heat
Exchanger) and then Pasteurizer, thus the germs and micro
be killed.
But, after that it would be CCP2, it gets the probability to be
contaminated and there is no other pasteurizer in next stage. CCP 2 is more
hazardous as compared to CCP1.
100% pasteurization is not achievable or impossible. It is named by two
kinds:
I. HTST (High Temperature for Short Time)
II. LTLT (Low Temperature for Longer Time)
Pasteur, who discovered a phenomenon named after him “Pasteurization”.
In this process the substance is heated to about 79 or 80 o
C for 29 sec
to kill the pathogenic bacteria.
as well. A terminology devised internationally by a technology called HACCP
ger) and then Pasteurizer, thus the germs and micro-organisms will
hazardous as compared to CCP1.
steurization is not achievable or impossible. It is named by two
(High Temperature for Short Time)--- 72o
C for 15 sec
(Low Temperature for Longer Time)---62.5o
C 30 min
14
after him “Pasteurization”.
C for 29 sec
a technology called HACCP
organisms will
steurization is not achievable or impossible. It is named by two

HOMOGENIZER:
In homogenizer, large pressure breaks the fat
mixing vessels and makes them homogeneous. Its basic use is to
homogenize the whole mix, so that a customer may eat ice cream and could
able to taste the homogenized each and every bit of ingredient used in it.
Optimal speed of Homogen
pressure thus maintained is about 150 bars.
Note: All of these equipments installed in Mix Processing Hall and the Production Hall
are of Tetra Pak, Limited.
AGING VESSELS &
When the mix is
vessels, aging means “a period of stay”. There are 18 vessels of different
capacities, ranging from 4000kg to 8000 kg.
These 18 vessels are named with model numbers, i.e. Vs# 5100
Capacities with respect to model numbers are as followed:
 Vs# 5100 - 5400
 Vs# 5500 – 5800
 Vs# 5900 – 6800
In homogenizer, large pressure breaks the fat molecules made up in
Optimal speed of Homogenizer and Pasteurizer is 5000 kg/hr and the
pressure thus maintained is about 150 bars.
PRODUCTION HALL:
When the mix is ready in 35-40 minutes, it is sent to the aging
capacities, ranging from 4000kg to 8000 kg.
are named with model numbers, i.e. Vs# 5100- Vs#6800
espect to model numbers are as followed:
00: 6000kg
5800: 4000kg
6800: 8000kg
15
molecules made up in
izer and Pasteurizer is 5000 kg/hr and the
, it is sent to the aging
Vs#6800.

In aging vessels, mix is stored for at least 2
of 4o
C. The mix is then conveyed to respective freezers where the de
emulsification process takes place, i.e. the proteins, fats, oils, water ice,
air, emulsifiers separates and then they give each taste in the ice cream.
Air is basically used to harden the ice cream, to held it in a specific
shape.
Talking about the aging
Tanks’ blades; it is due to the fact that flavors with greater viscosity are
added in the mix at the stage of aging.
Colors and flavors are not added in the mixing tank because it works
at a higher temperature
aging vessels this temperature
dosed here.
If colors are to be added in the aging tank, first of all their solution is
made in hot water and then introduced (mechanicall
Here comes the next part of the production a
the basic equipment wher
controls the temperature and viscosity of the mix converting it into
either ice cream or water ice. There are nine
in production hall, all installed by Tetra Pak, Limited
connected to two aging vessels via pipes that convey their respective
mixes pneumatically. Names of models of freezers of specified machines
(production lines), their flow rate capacities and attached aging vessels
are mentioned below:
In aging vessels, mix is stored for at least 2-4 hours at a temperature
C. The mix is then conveyed to respective freezers where the de
ulsification process takes place, i.e. the proteins, fats, oils, water ice,
Talking about the aging vessels, there blades are thicker than Mixing
added in the mix at the stage of aging.
at a higher temperature of about 65-70o
C, where they decolorize, but in
aging vessels this temperature are controlled and these additives are
made in hot water and then introduced (mechanically).
Here comes the next part of the production a FREEZER
the basic equipment where de-emulsification takes place and which
either ice cream or water ice. There are nine different kinds of freezers
in production hall, all installed by Tetra Pak, Limited. Each freezer is
ines), their flow rate capacities and attached aging vessels
are mentioned below:
16
4 hours at a temperature
C. The mix is then conveyed to respective freezers where the de-
ulsification process takes place, i.e. the proteins, fats, oils, water ice,
vessels, there blades are thicker than Mixing
C, where they decolorize, but in
controlled and these additives are
REEZER which is
emulsification takes place and which
different kinds of freezers
. Each freezer is
ines), their flow rate capacities and attached aging vessels

Machine
Name:
Freezer Model
(KF Frigus
Rollo-1 6100 (or 6400,
6600, 6800
Rollo-2 6700
Comet 6500
6600
Sl-800 6300
6400 (or 6600)
Big Drum 6900
7000
Manual Line 6800 (or any
other freezer)
Specification of product depends upon the freezer used and over run
applied. ‘Over run’ is the total air introduced in the mix coming through the
freezer. Similarly, number of freezers attached
upon how many colors/flavors/mixes we want to get in a single product.
e.g., in case of Jellicks or Jelly Ice Lolly (two color product), we use two
freezers on Rollo-1 machine and similarly in case of Lick
color product), we use three freezers with Rollo
operated with Comet Machine if we need to run a two color cone or cup
Freezer Model
(KF Frigus #):
Freezer Flow
rate Capacity
(liter/hr):
Aging Vessels
attached
( Vs# ):
Aging Vessel
or 6400,
6800)
2000 5300, 5400
6700 2000 5900, 6000
6500
6600
1000
1000
5500, 5600
5100, 5200
6300
6400 (or 6600)
1000
500
6700, 6800
5700, 5800
6900
7000
2000
2000
6300, 6400
6500, 6600
(or any
other freezer)
2000 6100, 6200
Similarly, number of freezers attached to a single machine depends
1 machine and similarly in case of Lick-a-flavor (three
product), we use three freezers with Rollo-1. Two freezers are
17
Aging Vessel
Capacity
(kg):
6000
8000
4000
6000
8000
4000
8000
8000
8000
to a single machine depends
flavor (three
1. Two freezers are

and on SL-800, in case of Car and Dasher (two color products), respective
two freezers are attached with it.
DESCRIPTION OF SIX
Rollo-1 & 2:
This is a round table mould machine, which actually operates on the
same phenomenon as “Rehri wali kulfi” works. Mix is introduced through
the freezers attached to it and poured into the mould table via nozzles and
jets. Suction pumps are attached to suck extra amount of juices remained in
the mould, if any. Warm and cold brine is running beneath the mould table,
cold brine makes the ice cream/ water ice hard and freezes it
of Plate Heat Exchanger, running upon NH
in, make it cold and then goes out of it.
the mould ice cream or water ice which is later on picked up by Extractor
when the water ice or ice cream table comes above the warm brine, it gets
detached and extractor extracts it and put it into the lay down arms, then is
packed and conveyed respectively and finished good is stored in the form of
pellets in cold store room.
There are 16*14 pockets in a section of this table and there are 9 sections.
On average, this machine operates on 22 strokes per minute, which shows
that its filler fills 22 pockets in one minute. The average volume of the
product on this machine is 57 ml. Thus calculati
standard speed comes out to be 20.1 liter/min.
800, in case of Car and Dasher (two color products), respective
two freezers are attached with it.
IX PRODUCTION LINES:
cold brine makes the ice cream/ water ice hard and freezes it with the help
of Plate Heat Exchanger, running upon NH3 compressors line which comes
in, make it cold and then goes out of it. A stick inserter puts the sticks into
the mould ice cream or water ice which is later on picked up by Extractor
ice or ice cream table comes above the warm brine, it gets
pellets in cold store room.
pockets in a section of this table and there are 9 sections.
product on this machine is 57 ml. Thus calculations made and its average
standard speed comes out to be 20.1 liter/min.
18
800, in case of Car and Dasher (two color products), respective
with the help
compressors line which comes
A stick inserter puts the sticks into
the mould ice cream or water ice which is later on picked up by Extractor,
ice or ice cream table comes above the warm brine, it gets
pockets in a section of this table and there are 9 sections.
ons made and its average

Formerly there was only one Rollo machine, but due to increasing demand
another Rollo machine was installed later on.
same phenomena, just the difference is of
capacities or standard speeds. Its average standard speed is 23.0 liter/ min.
Following is the table showing products on each machine and their
volumes:
ROLLO-2 SKUs
Choc Head
Milk vanilla Stick
Milky Chocolate
Mini Kulfi
Orange ice-lolly
Bubble Gum lolly
Lemin Lolly
ROLLO-1 SKUs
Choc Bar
Lick A Flavor
Orange ice-lolly
Lick a Flavor 2
Choc Bar 2
Jelly Ice Lolly
COMET MACHINE:
Also known as Model Machine at ICP, this machine is termed as
model machine because
done by the team workers and team leaders and good production was
attained. It has cup and cone dispensers, which after dis
with the nozzles and then packed and conveyed
hardens the finished good at about
formerly, cones were made upon this machine but the big drum machine
another Rollo machine was installed later on. The machines work on the
, just the difference is of product volume and the
SKUs ML
28
Milk vanilla Stick 28
28
28
28
Bubble Gum lolly 28
28
SKUs ML
45
55
50
55
45
55
model machine because according to TPM, its maintenance was all in all
attained. It has cup and cone dispensers, which after dispensed are filled
with the nozzles and then packed and conveyed to Scanima Tunnel which
hardens the finished good at about -38o
C. Its standard speed is 16 liter/min.
19
machines work on the
product volume and the
according to TPM, its maintenance was all in all
pensed are filled
to Scanima Tunnel which
16 liter/min.

was installed by March –
transferred to that machine.
The products so formed on this machine are as followed:
CUPS
Vanilla Cup
Mango Cup
Mango cup
Strawberry Cup
Chocolate Cup
Kulfa cup
Fun Mill Cup
Praline Cup
CONES
Vanilla Strawberry Affair Cone
Vanilla Mango Cone
Strawberry Cheesecake Cone
Vanilla Uth cone
Caramel Cone
Tripple chocolate cone
Sl-800 Machine:
This machine is comprised of trays and plates, an extruder, stick
inserter, hardening tunnel, Dino (Pick n Place section). This machine is also
famous for its extrusion products, i.e. the extruder makes the desired shape
and thus it is hardened when the pl
stick product takes about 40 min
plates/trays moving at a specific speed 7.2 liters/min. when the hardened
product comes out of the tunnel, it is picked and placed in the DINO
the help of extractors and then dropped in the conveying plates, then
packaging and conveying takes place after rotating through down the DINO
table. If infusions and chocolate coating is to be done then, fruit feeder I
–April, 2011. Then all the cones 90 and 110 ml were
transferred to that machine.
so formed on this machine are as followed:
ML
60
60
100
100
100
100
100
100
ML
Vanilla Strawberry Affair Cone 90
Vanilla Mango Cone 90
Strawberry Cheesecake Cone 110
110
110
Tripple chocolate cone 110
and thus it is hardened when the plate goes into the hardening tunnel, each
stick product takes about 40 min at -38o
C to be hardened and it has 800
product comes out of the tunnel, it is picked and placed in the DINO
If infusions and chocolate coating is to be done then, fruit feeder I
20
April, 2011. Then all the cones 90 and 110 ml were
ML
60
60
100
100
100
100
100
100
ML
90
90
110
110
110
110
ate goes into the hardening tunnel, each
to be hardened and it has 800
product comes out of the tunnel, it is picked and placed in the DINO with
If infusions and chocolate coating is to be done then, fruit feeder I

attached with the freezer and c
respectively. The extruded products made on SL
SL TOTAL
Nutty chocbar
Extruded Character face or Car
Kulfi
Extruded Ice lolly or Dasher
Chocolate Temptation
Almond Affair
Big Drum Machine:
Big drum machine is the latest technology machine that is totally
made to produce cones, with a speed and capacity greater than Comet
Machine. The hardening tunnel beside Bid Drum Machine also known as
NTFE makes the product frozen and hard
this machine is 24.6 liters/min.
Manual Line:
This line is for the production of SKUs which need man power such as
Brick packs, multi serve FSDs and Tubs, etc. Its efficiency is more than all
other Production lines.
attached with the freezer and chocolate hoystate beneath the DINO table
respectively. The extruded products made on SL-800 are:
ML
55
or Car 60
60
or Dasher 60
80
80
Drum Machine:
makes the product frozen and hard at -38o
C. The standard speed of
this machine is 24.6 liters/min.
21
the DINO table
standard speed of

FREEZERS AND THEIR CONST
As the freezers are discussed in the previous section, here we shall
talk about the constraints regarding these freezers, which affect the plan
and production consequently.
machines, using all the freezers, which is not possible. Because sometimes
we are producing three layer/color products on Rollo
cone/cup on Comet and 2 color products on SL
freezers get busy and we cannot use the other production l
freezers are utilized in the production at these machines.
Sometimes viscosity issues and over run are also seemed to be the
constraints in production.
MAINTENANCE ISSUES
Maintenance is of two types at production site:
1. Preventive Maintenance
2. Planned Maintenance
The first one may be a part of changeovers or before startup of production
to avoid any losses during production.
Second one is planned by keeping in mind all the constraints and
production plans.
Maintenance issues are very important
OEE is, the better would the plan will work and the production output
reliability will be greater and stronger as well.
ZERS AND THEIR CONSTRAINTS:
and production consequently. If talking about the production on all
all the freezers, which is not possible. Because sometimes
we are producing three layer/color products on Rollo-1 and 2 color
cone/cup on Comet and 2 color products on SL-800 as well, hence all the
freezers get busy and we cannot use the other production lines whose
freezers are utilized in the production at these machines.
constraints in production.
SSUES:
Maintenance is of two types at production site:
Preventive Maintenance
Planned Maintenance
to avoid any losses during production.
Maintenance issues are very important part in calculating OEE. Better the
reliability will be greater and stronger as well.
22
If talking about the production on all
all the freezers, which is not possible. Because sometimes
1 and 2 color
800 as well, hence all the
ines whose
part in calculating OEE. Better the

OVERALL EQUIPMENT
It is the ratio of actual production to standard production and
shows the efficiency of a machine that how well does it work in producing
the required product. The followings should be taken into account to
calculate and enhance OEE:
1. Operating/Total Loading time.
2. Downtime Losses (in minutes)
i. Loss due to No
ii. Loss due Planned Maintenance
iii. Mix/Batch Availability Loss
iv. No Packing Material
v. No Raw Material
vi. Management or Line Organizational Loss
vii. CIP Time Loss
viii. Machine Breakdown Loss
ix. Changeovers
x. Machine Adjustment / Startup Loss
xi. Utility Failure
3. Standard Speed of the machine in
4. Utilization (Running) Time in minutes = Loading Time
Downtime Losses
5. Standard Production in liters
6. Actual Production in liters
7. Set Speed (liters/min)
8. Set Production (liters/min)
9. Speed Rate (%)
10.Speed Loss (min)
11. Performance Rate (%) = Actual Production/Standard Production
12. Performance Losses (min) = (1
QUIPMENT EFFICIENCY:
s the efficiency of a machine that how well does it work in producing
. The followings should be taken into account to
calculate and enhance OEE:
Operating/Total Loading time.
(in minutes), which include:
Loss due to No Plan available
Loss due Planned Maintenance
Mix/Batch Availability Loss
No Packing Material
No Raw Material
Management or Line Organizational Loss
CIP Time Loss
Machine Breakdown Loss
Changeovers
Machine Adjustment / Startup Loss
Utility Failure
Standard Speed of the machine in liters/min
Utilization (Running) Time in minutes = Loading Time
Standard Production in liters
Actual Production in liters
Set Speed (liters/min)
(liters/min)
Performance Rate (%) = Actual Production/Standard Production
Performance Losses (min) = (1- Performance rate) *Utilization Time
23
s the efficiency of a machine that how well does it work in producing
. The followings should be taken into account to
Utilization (Running) Time in minutes = Loading Time – Total
Performance Rate (%) = Actual Production/Standard Production
Performance rate) *Utilization Time

13. Total Losses (min) = Performance Losses + Downtime Losses + Speed
Loss
Then OEE is calculated after getting all the req
about the machine from Log Books or daily production notes.
OEE (%) = Actual Production / (Standard Speed * Loading Time)
Targeted OEE is taken as basis which is usually 80 %
Planned OEE = (Total Volumes per week) / (Rated Capaci
Rated capacity is basically the capacity of the machine (per day).
OEE is considered as the target to be achieved by the production and to
enhance it. The table showing a short elaboration of OEE
M/C
COMET
ROLLO-1
ROLLO-2
SL-800
Manual Line
Total Losses (min) = Performance Losses + Downtime Losses + Speed
Then OEE is calculated after getting all the required data and information
about the machine from Log Books or daily production notes.
OEE (%) = Actual Production / (Standard Speed * Loading Time)
Targeted OEE is taken as basis which is usually 80 %
(Total Volumes per week) / (Rated Capacity)
Rated capacity is basically the capacity of the machine (per day).
table showing a short elaboration of OEE
Planning OEE Actual OEE
80% 32%
80% 16%
80% 20%
80% 30%
80% 24%
24
Total Losses (min) = Performance Losses + Downtime Losses + Speed
uired data and information
Actual OEE
32%
16%
20%
30%
24%

TARGETS OF PRODUCTION
 Labor Cost (Rs/liter)
 Energy Cost (Rs/liter)
 Chemical Cost (Rs/liter)
 Process Loss
 Primary Packing Loss
 Secondary Packing Los
First three costs are variable costs of
Cream Plant, which vary as the production varies
Labor Cost is basically connected with the production, for example if the
production in liters increases then the labor cost per liters decreases.
Mathematically proven in t
will decrease in Rs. It includes the cost and stipends of temporary labor.
Labor Cost is the one of the asset of ICP.
Energy Cost is calculated with respect to the operating machines, which
when operate consume energy, hence it is also a variable cost. It is firstly
calculated in Rs/kWh of energy, secondly kWh/liters then a third term
obtained by multiplying these two which is Rs/liters.
Chemical Cost is the cost of chemicals used during CIP and OPC of
machines, during changeovers, washing of floor, etc. It is also a variable
cost.
Process Loss can be divided into two major losses, i.e. Raw Material Loss
and the Semi-Finished Good (mix or pre packed ice cream) Loss, both of
these are summed up and we get
occurring at ice cream plant is the production of mix for ice cream, hence
RODUCTION:
Labor Cost (Rs/liter)
Energy Cost (Rs/liter)
Chemical Cost (Rs/liter)
Primary Packing Loss
Secondary Packing Loss
First three costs are variable costs of any production industries as at Ice
Cream Plant, which vary as the production varies.
is basically connected with the production, for example if the
Mathematically proven in the fraction of Rs/liters, if liters increase the cost
It includes the cost and stipends of temporary labor.
Labor Cost is the one of the asset of ICP.
is calculated with respect to the operating machines, which
consume energy, hence it is also a variable cost. It is firstly
obtained by multiplying these two which is Rs/liters.
is the cost of chemicals used during CIP and OPC of
achines, during changeovers, washing of floor, etc. It is also a variable
can be divided into two major losses, i.e. Raw Material Loss
Finished Good (mix or pre packed ice cream) Loss, both of
these are summed up and we get the overall process loss. As the process
25
production industries as at Ice
is basically connected with the production, for example if the
he fraction of Rs/liters, if liters increase the cost
It includes the cost and stipends of temporary labor.
is calculated with respect to the operating machines, which
consume energy, hence it is also a variable cost. It is firstly
is the cost of chemicals used during CIP and OPC of
achines, during changeovers, washing of floor, etc. It is also a variable
can be divided into two major losses, i.e. Raw Material Loss
Finished Good (mix or pre packed ice cream) Loss, both of
the overall process loss. As the process

loss matters a lot to the production. Specific %age is given by R&D
department which shows that if we multiply this %age with total process
quantity of Raw Material Loss + Mix Loss, we get the total loss.
Primary & Secondary Losses
tells the losses should not exceed that quantity of total packaging material
issued for that production. Usually it is 3.5
packaging material.
SOME TIDBITS:
Changeover optimum time is 4
(Clean in Process) in which parts of machine which are hidden or inside are
cleaned with detergents or shora foam. Solutions named 7
used for cleaning the floor and OPC (Open Plant Cleaning) as well. 727 is
basically the disinfectant and 321 is shora foam or soap. Another
terminology PCC (Pocket Conveyor Cleaning) is important in case of SL
this cleaning takes abou
coating SKUs such as Almond affair and Chocolate Temptation and 8 hours
for the Dasher.
Shape giving mould is known as extruder and the process is extrusion.
CCP (Critical Control Points) other than Pasteuri
hall) are Metal Detectors and the conveying trays of SL
production hall). CCP of SL
hours to avoid the collapse of trays and hence destroy the machine.
Similarly CCP of Metal Detectors is that every finished good must pass
through them, if in case it is unable to detect iron particles besides
detecting aluminum, then second metal detector completes its task. Hence
the criticality is controlled which could caus
humans.
rtment which shows that if we multiply this %age with total process
quantity of Raw Material Loss + Mix Loss, we get the total loss.
Primary & Secondary Losses is also a specific %age given by R&D that
issued for that production. Usually it is 3.5% for Primary & Secondary
Changeover optimum time is 4-5 hours of which 45 minutes is CIP
cleaned with detergents or shora foam. Solutions named 727, 321, etc are
terminology PCC (Pocket Conveyor Cleaning) is important in case of SL
this cleaning takes about 4 hours for Car or Kulfi products, 6 hours for
CCP (Critical Control Points) other than Pasteurizer (in the mix processing
hall) are Metal Detectors and the conveying trays of SL-800 Machine (in the
production hall). CCP of SL-800 is that OPC of its trays is done after every 4
arly CCP of Metal Detectors is that every finished good must pass
the criticality is controlled which could cause hazard and become fatal for
26
rtment which shows that if we multiply this %age with total process
is also a specific %age given by R&D that
% for Primary & Secondary
5 hours of which 45 minutes is CIP
27, 321, etc are
terminology PCC (Pocket Conveyor Cleaning) is important in case of SL-800,
t 4 hours for Car or Kulfi products, 6 hours for
zer (in the mix processing
800 Machine (in the
800 is that OPC of its trays is done after every 4
arly CCP of Metal Detectors is that every finished good must pass
e hazard and become fatal for

ENGRO FOODS SUPPLY
SUPPLY CHAIN O
A supply chain is a network of the entities
companies—involved in producing,
Each entity is a link in the movement of a product from its raw
stage to its consumption by the customer. A typical supply chain has the
following entities:
 The manufacturer's suppliers
 The manufacturer
 Transportation and logistics companies
 Distribution centers
 Customers
We often hear an entity inside supply chain, but outside
called a partner, or a trading partner. For example, a supplier that provides
materials to a manufacturer could be its
has three main functions:
 Procurement –
 Manufacturing
 Fulfillment – delivering (moving and storing) the product
Supply chain planning integrates the functions both operationally
(daily activities) and strategically
participants and overlapping functions, the planning process
activity seamless to customers.
UPPLY CHAIN LIMITED:
OVERVIEW
A supply chain is a network of the entities—within and across
involved in producing, shipping, and distributing products.
the movement of a product from its raw
The manufacturer's suppliers
Transportation and logistics companies
Distribution centers
often hear an entity inside supply chain, but outside our company,
a trading partner. For example, a supplier that provides
materials to a manufacturer could be its partner. Our typical supply chain
has three main functions:
– buying materials to support a manufacturer
Manufacturing – making the product
delivering (moving and storing) the product
(daily activities) and strategically (long-term planning). Despite multiple
participants and overlapping functions, the planning process makes all this
activity seamless to customers.
27
within and across
shipping, and distributing products.
the movement of a product from its raw materials
our company,
a trading partner. For example, a supplier that provides
ur typical supply chain
buying materials to support a manufacturer
delivering (moving and storing) the product
rm planning). Despite multiple
akes all this

F.M.C.G:
The basic theme of SUPPLY CHAIN is FMCG i
Good. Four steps lead to the accomplishm
Marketing or Sales department in Supply chain, and they are:
 Plan
 Make
 Source
 Deliver
BUSINESS / ORGANIZATIONAL
The basic four steps are taken to build, expand and then to be called
organizations are:
Entrepreneurship
Collecting/ gathering
Expansion (Spreading)
No more penetration
It can explained such that, the idea is presented at the start to build an
organization and then people nodding in positive response to that idea and
agreeing to it are gathered and collected
idea and the people expand the setup with commitments and make the
demand of their organization in the market accomplished.
After some years passed and expansions done, setup need to stop its
penetration of the business know
market and need no more expansion or to penetrate.
The basic theme of SUPPLY CHAIN is FMCG i.e., Fast Moving Consumers
Four steps lead to the accomplishment of the tasks assigned by
Marketing or Sales department in Supply chain, and they are:
RGANIZATIONAL SETUP:
Expansion (Spreading)
agreeing to it are gathered and collected at a common place. Later on the
demand of their organization in the market accomplished.
penetration of the business knowing that it is fully fledged settled in the
market and need no more expansion or to penetrate.
28
.e., Fast Moving Consumers
ent of the tasks assigned by
at a common place. Later on the
ing that it is fully fledged settled in the

SUPPLY CHAIN PLANNING
Companies manage their supply chains by linking all the entities via a
common planning process. A
integrates, the functions performed within and across
 Buying materials:
manufacturing requirements.
 Making the product:
manufacture the product to meet plan and actual customer
demand.
 Moving the product:
distribution centers and customers.
 Storing the product:
maintained to meet actual customer demand.
 Delivering the product:
want, how much and when.
Supply chain planning (SCP) matches supply and demand:
 The right product
 At the right time
 At the right place
 Delivered to the right customer
 At the lowest total cost
 With the best possible return on asset investment
Supply chain planning (SCP) grouped into four main
a. Demand
b. Supply
c. Production
d. Fulfillment
LANNING:
common planning process. A common planning process aligns, or
rates, the functions performed within and across companies
Buying materials: Plan what materials will be required to meet
Making the product: Plan where, when and how to
Moving the product: Plan how to distribute the product to
distribution centers and customers.
Storing the product: Plan how much inventory should be
maintained to meet actual customer demand.
Delivering the product: Plan and project what customers
want, how much and when.
chain planning (SCP) matches supply and demand:
Delivered to the right customer
At the lowest total cost
With the best possible return on asset investment
pply chain planning (SCP) grouped into four main planning processes:
29
common planning process aligns, or
companies.
Plan what materials will be required to meet
Plan where, when and how to
Plan how to distribute the product to
Plan how much inventory should be
Plan and project what customers will
planning processes:

TYPES OF PLANNING
Production Planning
I. To plan what materials will be required to meet
II. To plan how to manufacture the
customer demand.
Supply Planning
I. To plan where to manufacture the product to meet actual
customer demand.
II. To plan when to manufacture the product to meet actual
customer demand.
III. To plan how to distribute the product to distribution c
and customers.
IV. To plan how much inventory should be maintained to meet
customer demand.
Demand Planning
I. To plan and project what customers will want, how much
and when.
Fulfillment Planning
I. To plan what inventory or capacity is used to fulfill order
II. To plan how to transport or deliver product throughout the
supply chain.
LANNING:
lan what materials will be required to meet
lan how to manufacture the product to meet actual
customer demand.
lan where to manufacture the product to meet actual
customer demand.
lan when to manufacture the product to meet actual
customer demand.
lan how to distribute the product to distribution c
lan how much inventory should be maintained to meet
customer demand.
lan and project what customers will want, how much
lan what inventory or capacity is used to fulfill order
lan how to transport or deliver product throughout the
30
lan what materials will be required to meet
product to meet actual
lan where to manufacture the product to meet actual
lan when to manufacture the product to meet actual
lan how to distribute the product to distribution centers
lan how much inventory should be maintained to meet
lan and project what customers will want, how much
lan what inventory or capacity is used to fulfill order.
lan how to transport or deliver product throughout the

DEMAND PLANNING
The first step and a key input in the SCP pr
us forecast the following:
o What customers will want
o How much they will want
o When they will want it
With demand planning, we
company. To achieve a single view of demand, companies must develop
one or more of the following
Statistical Forecasting
Use historical data and other factors, su
statistical forecast.
Multidimensional View of Data
Allow views of demand from different perspectives. The sales manager
for the Northern region, for
his region only. He then wants to
customers. The Chief Operating Officer, on the other hand, is interested in
comparing this quarter's total demand with that of the last six quarters.
Product Life Cycle Planning
Analyze and adjust demand forecasts for
change across its life cycle. For
But, if demand then falls off sharply when a competitor introduces a
extruded product.
LANNING:
The first step and a key input in the SCP process, demand planning helps
forecast the following:
customers will want
much they will want
will want it
With demand planning, we create a single view of demand across the
To achieve a single view of demand, companies must develop
one or more of the following capabilities:
Statistical Forecasting
Use historical data and other factors, such as seasonality, to create a
Multidimensional View of Data
region, for example, wants to see customer de
then wants to see demand for just her five largest
Product Life Cycle Planning
Analyze and adjust demand forecasts for a product as its patterns
change across its life cycle. For example, SL-800 SKUs have heavy de
falls off sharply when a competitor introduces a
31
ocess, demand planning helps
single view of demand across the
To achieve a single view of demand, companies must develop
ch as seasonality, to create a
example, wants to see customer demand for
her five largest
a product as its patterns
heavy demand.
falls off sharply when a competitor introduces a newer

Promotion Planning
Fully utilize available information on prom
can affect demand forecasts.
Exception Management
Manage plans by resolving any variances to those plans.
SUPPLY PLANNING
Once we forecast demand,
and time to meet that demand. The
this through the following types of plans:
a. Inventory Plan – To d
finished goods to hold and
b. Distribution Plan –
this inventory
c. Sourcing Plan –
manufacture it
d. Materials Plan – To d
SUPPLY PLANNING CONSTRAINTS
Every company is restricted in some ways in its
deliver goods. This concept
planning process. For something to qualify as a
definable in terms of a resource
manufacturing, labor—and a
addressed and is no longer an issue.
Fully utilize available information on promotions, prices, and events that
affect demand forecasts.
Exception Management
Manage plans by resolving any variances to those plans.
LANNING:
forecast demand, we need enough supply at the right place
demand. The supply planning process helps
this through the following types of plans:
To determine and plan for how much inventory or
finished goods to hold and where to place the inventory
– To determine how, when, and where to replenish
To plan what product, and when and where to
To determine what materials are needed and when
ONSTRAINTS:
Every company is restricted in some ways in its ability to produce and
deliver goods. This concept called "constraints" is central to the supply
planning process. For something to qualify as a constraint, it must be
definable in terms of a resource—for example, transportation,
and a given time period. Eventually, a constraint is
addressed and is no longer an issue.
32
ns, prices, and events that
need enough supply at the right place
supply planning process helps us do
etermine and plan for how much inventory or
and where to replenish
lan what product, and when and where to
etermine what materials are needed and when.
ability to produce and
called "constraints" is central to the supply
constraint, it must be
for example, transportation,
given time period. Eventually, a constraint is

Constraints can take several forms. For example:
i. A manufacturing line can run at a certain rate. This is its capacity
constraint.
ii. The number of outers
SKUs the line can produce. This is both a materials constraint for the
manufacturer and a capacity constraint for the fender supplier.
iii. How fast the product can be transported over a given period is
limited. Any plan must conside
To manage constraints and achieve supply
companies must develop supply
following:
Set inventory targets
Determine the amount of inventory buffer required to meet s
level targets.
Define distribution approach
Determine which locations fill which customer orders.
Determine net finished goods requirements
Decide what finished goods to produce (or purchase) and what
materials are required based on
Determine optimal sourcing
Specify which plant will manufacture a product and to which
distribution center to route it.
Constraints can take several forms. For example:
A manufacturing line can run at a certain rate. This is its capacity
outers available from a supplier limits the number of
the line can produce. This is both a materials constraint for the
How fast the product can be transported over a given period is
limited. Any plan must consider transportation constraints.
To manage constraints and achieve supply-planning objectives,
companies must develop supply planning capabilities. These include the
Determine the amount of inventory buffer required to meet s
Define distribution approach
Determine which locations fill which customer orders.
Determine net finished goods requirements
materials are required based on current inventory levels and targets.
Determine optimal sourcing
distribution center to route it.
33
A manufacturing line can run at a certain rate. This is its capacity
pplier limits the number of
the line can produce. This is both a materials constraint for the
How fast the product can be transported over a given period is
r transportation constraints.
planning objectives,
capabilities. These include the
Determine the amount of inventory buffer required to meet service
inventory levels and targets.

Manage exceptions
Support manufacturing decisions
product will be prebuilt or if the
Monitor and track inventory
Set acceptable ranges and ensure that invent
them.
PRODUCTION PLANNING
Once you have demand and supply plans, the next step is to plan how
to manufacture the product.
Production planning has two components:
o Production Schedule
machines), and the sequence/timing of the manufacturing
operations.
o Detailed Materials Plan
materials or subcomponents) to meet manufacturing requirements.
For example, while the Materials Plan (from supply plann
specify "1000 liters Kulfi 60 ml
approximately 17 wrappers
Support manufacturing decisions—for example, determine if the
or if the order will be satisfied late.
Monitor and track inventory
acceptable ranges and ensure that inventory is maintained within
LANNING:
product.
Production planning has two components:
Production Schedule – Determine the resources required (labor and
Detailed Materials Plan – Identify the materials needed (raw
subcomponents) to meet manufacturing requirements.
For example, while the Materials Plan (from supply plann
specify "1000 liters Kulfi 60 ml" this detailed plan specifies
approximately 17 wrappers, 17 sticks, and so on.
34
for example, determine if the
ory is maintained within
Determine the resources required (labor and
Identify the materials needed (raw
subcomponents) to meet manufacturing requirements.
For example, while the Materials Plan (from supply planning) may
" this detailed plan specifies

PRODUCTION PLANNING
As in supply planning, production planning has constraints. For
example, the production schedule is constrained by the maximum
of items a machine can produce per hour
week a machine is set to run
production plan. This differs from supply planning constraints in the level of
detail: a supply planning constraint is the daily production
line. A production planning constraint is the rate of operation for
station on that line.
To manage constraints and achieve production
companies must develop
the following:
Schedule production activities
Determine what operations will be performed on which
times, or in what order.
Define net material requirements
Specify required materials for manufacturing, taking into account the
current raw materials inventory.
Recommend purchase orders
Communicate required materials to the purchasing de
Manage exceptions
Balance resource and material constraints.
LANNING CONSTRAINTS:
example, the production schedule is constrained by the maximum
of items a machine can produce per hour or by the number of times per
week a machine is set to run. Constraints on materials also affect the
a supply planning constraint is the daily production capacity of one
. A production planning constraint is the rate of operation for
To manage constraints and achieve production-planning objectives,
companies must develop Production-planning capabilities. These include
Schedule production activities
Determine what operations will be performed on which machines at what
Define net material requirements
current raw materials inventory.
Recommend purchase orders
Communicate required materials to the purchasing department.
Balance resource and material constraints.
35
example, the production schedule is constrained by the maximum number
number of times per
materials also affect the
capacity of one
. A production planning constraint is the rate of operation for one
planning objectives,
planning capabilities. These include
machines at what

INVENTORY HANDLING IN
SAP encounters with
till ordering, receiving and then to finished goods production.
Purchase requisition is done with the help of SAP, keeping in view the
BOM of required product to produce a specified plan to raise the MRP.
Purchase department is responsible for the delivery and receiving of those
inventory levels, whether Raw Materials
Cycle Count is the assessment of system and the actual production
floor materials quantities. For example, if the raw materials consumed in
making a batch of the mix for the ice cream is
system tells us that it was 8000kg, then we may have a loss on our
production floor, hence to reduce that loss and to cover some production
losses of mix in ice cream handling, we produce more mix otherwise it is a
gain.
There is a term output reliability or reliability ana
as the reliability of production upon the plan and vice versa. Planner
keeping in view all the facts and figures, constraints and other
a healthy and suitable plan so that it could work and fulfill demands but
production does produces
exceeds the plan, in both the cases output reliability is less.
NVENTORY HANDLING IN SYSTEM (SAP):
SAP encounters with the entire inventory from purchase requisition
receiving and then to finished goods production.
inventory levels, whether Raw Materials or Packaging Materials.
making a batch of the mix for the ice cream is 10000kg per month but the
at it was 8000kg, then we may have a loss on our
There is a term output reliability or reliability analysis, i.e.
keeping in view all the facts and figures, constraints and other issues
n does produces up to the mark or on the other hand production
exceeds the plan, in both the cases output reliability is less.
36
inventory from purchase requisition
or Packaging Materials.
10000kg per month but the
at it was 8000kg, then we may have a loss on our
lysis, i.e. referred to
issues makes
the mark or on the other hand production

Supply Chain Internship Report - EFL Sahiwal Plant

Supply Chain Internship Report - EFL Sahiwal Plant

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