Professional Documents
Culture Documents
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Table of Contents
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32. Decision Making in Shamim & Co
33. Organization Structure
34. Shamim & Co Departments
35. Administration Department
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36. Sales/Marketing Department
37. Finance Department
38. Human Resource Department
39. Production Department
40. Shipping Department
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41. MIS Department
42. Cash Department
43. Accounts Department
44. Excise Department
45. Post Mix Department
46. Inventory Management
47. Supply Chain Department
48. Capacity. Location & Layouts
49. Forecasting
50. Material Requirement Planning
51. Quality Control
52. Problems
53. Recommendations for Company
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INTRODUCTION
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Cola history.
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The Loft candy company acquired the National Pepsi-Cola Company. Charles G. Guth,
president of Loft, assumed leadership of Pepsi and commanded the reformulation of
Pepsi-Cola syrup formula.1934 was a landmark year for Pepsi-Cola. The drink was a hit
and to attract even more sales, the company began selling its 12-ounce drink for five
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cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuted in
Baltimore, where it was an instant success. The cost savings proved irresistible to
Depression-worn Americans and sales skyrocket nationally. In 1941, The New York
Stock Exchange traded Pepsi's stock for the first time. In 1964, Diet Pepsi, America's first
national diet soft drink, debuted. Pepsi-Cola acquired Mountain Dew from the Tip
Corporation in 1964.
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SETUP OF PEPSI COLA
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PEPSI COLA MULTAN
Pepsi Multan was incorporated in 1963 but it started its production in 1967. Allah Nawaz
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Khan Tareen (Ret. DIG) got license of 7-UP. But in 1973, it became Pepsi Cola
franchise. Now a day MD of Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah
Nawaz Khan Tareen. At start Pepsi Multan was having only one production plant made
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by Netherlands. and was only producing 7-Up because it was the only brand produced by
Parent Company. In 1973, PEPSI acquired 7-Up in Canada so the Multan franchise
started producing PEPSI and Marinda along with 7-Up & became PEPSI franchise.
Coke was already operating in the market at the time when Pepsi Multan established. At
that time Coke was market leader but with the passage of time Pepsi Multan kept on
focusing on gaining the market share. Recently Pepsi has launched a new brand with the
name of Mountain Dew. Now Pepsi Multan is working with five production plants
capable of producing 100,000 cases per day. Installation arrangements for two new plants
are in process. The plant which was installed at the time of establishment has now been
grounded. Pepsi Multan is currently market leader with more than 80% of market share.
The company is properly serving all these areas with quality products. PEPSI Multan is
not an ISO certified company because it is an international drink having their own
standards and there is no export.
MISSION OF COMAPNY
“We aspire to make Pepsi Company the world’s premier consumer Products
Company, focused on convenient beverages. We seek to produce healthy financial
rewards for investors as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we operate. And in
everything we do, we strive to act with honesty, openness, fairness and integrity”
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are given below. This is also an important part of Pepsi-Cola.
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1898 Brad's Drink
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1908 Delicious and Healthful
1915 For All Thirsts - Pepsi: Cola
1919 Pepsi: Cola - It makes you Scintillate
1920 Drink Pepsi: Cola - It Will Satisfy You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
Double Size
1934
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
The Light Refreshment
1954
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961 Now It's Pepsi for Those Who Think Young
1963 Come Alive! You're in the Pepsi Generation
1967 Taste that Beats the Others Cold, Pepsi Pours It On.
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1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
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1997 Generation Next
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2005 Dare for more
MAJOR COMPETITOR:-
Pepsi Cola major competitor is Coca Cola in all over the world,
Mission
Mission of Coca Cola international is “From our heritage to our mission to the
people who bring our products to thirsty consumers, the Coca Cola is a part of
lives everywhere”.
In order to achieve this mission, we must create value for all the constituents. We
serve, including our consumers, our customers, our bottlers and our communities.
Objective
“Objective of our business strategy are to increase volume, expand our share
worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term
cash flows and create economic value added by improving economic profit”.
The Coca Cola company creates value by executing a comprehensive business
strategy guided by six key beliefs;
• Consumer Demand drives every thing we do.
• Brand Coca Cola is the core of our business
• We will serve consumers a broad selection of the nonalcoholic
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ready to drink beverage they want to drink throughout the day.
• We will be best marketers in the World.
• We will think Globally and act Locally.
PEPSI TODAY
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An Overview
PepsiCo Inc. is among the most successful consumer product companies in the
world with annual revenues of $24 billion and approximately 140,000 employees.
Some of PepsiCo's brand names are nearly 100 years old but the corporation
remains relatively young. PepsiCo Inc. was founded in 1965 through the merger of
Pepsi-Cola Company and Frito-Lay Inc. PepsiCo divisions operate in two major
domestic and international businesses: beverages and snack foods.
Through our divisions PepsiCo has achieved a leadership position in each of these
business segments: we are world leaders in beverage bottling and we are the
world's largest producers of snack chips.
PepsiCo's brand names are some of the best known and most respected in the
world and our restaurants are named as favorites by millions of people. PepsiCo
has achieved a continuing record of growth. This record is based on high standards
of performance, distinctive competitive strategies which are superbly executed, the
personal and professional integrity of our people, business practices and products.
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geographical franchise area. It works with supplier firms to assure the availability
of quality packaging, merchandising, and other related equipment made to
standard specifications. It provides advertising campaigns and media support. It
creates suitable promotional campaigns and marketing strategies. It offers aid in
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personnel training for sales and production staff. It makes available quality control
facilities and technicians. It develops a national publicity effort and offers aid in
formulating local level community relations projects. And, in addition to
performing these functions, Pepsi offers service through a large field force,
including specialists in a number of technical and marketing skills.
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The bottler has reciprocal obligations in connection with their franchise right.
They agree to only use approved advertising and distribute a finished product of
unvarying high quality, to use merchandising materials, and to market the product
vigorously.
Today, there are more than 400 Pepsi-Cola Bottlers in the US and more than 600
internationally. The product is sold in approximately 200 countries and territories.
The Company itself operates only a relatively small number of bottling facilities,
principally in larger metropolitan markets.
PEPSICO INTERNATIONAL:
PepsiCo International (PCI) is PepsiCo's international soft drink operation and
includes the business of Seven-Up International. PepsiCo beverages are available
in about 195 countries and territories.
PCI organization consists of three geographic business units, each with self-
sufficient operations and broad local authority. The three units are:
- Pepsi-Cola Europe
- Pepsi-Cola Latin America
- Pepsi-Cola Asia
PCI beverages are produced by a combination of independent franchised bottlers,
joint-venture bottling operations and company-owned bottling plants. PCI is the
soft drink market leader in more than 50 countries and territories including Saudi
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Arabia, Venezuela, Russia, Pakistan, Hungary and Vietnam. Other key markets
include Mexico, Saudi Arabia, Venezuela and Argentina. PI also focuses on high
potential, underdeveloped markets, such as China and India. PI has also
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established operations in the key emerging markets of Eastern Europe, including
Budapest, Warsaw, Prague and Moscow, where Pepsi-Cola was the first US
consumer product to be marketed.
The division's flagship product is Pepsi-Cola, with its brand extensions Pepsi Max,
Pepsi Light, Caffeine Free Pepsi, Caffeine Free Pepsi Light, Diet Pepsi, Pepsi
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Twist, Pepsi Blue, Vanilla Pepsi, Pepsi X and Wild Cherry Pepsi. The division's
other major brands include Mountain Dew, 7UP, Diet 7UP, Mirinda and Teem. In
all, PI offers dozens of soft drink brands in a variety of packages and sizes.
Consumers:
Pepsi believe the main 'drivers' behind consumer behavior are value, variety,
attitudes and convenience.
Competitors:
Pepsi's direct competitor is Coca-Cola Amatil. The non-soft drink competitors are
tea, coffee, water, energy drinks, sports drinks, milks, etc which are all consumed
on beverage occasions. Pepsi aims to gain a greater share of these occasions.
Price:
Pepsi is competitively priced to its major competitors, offering a better tasting
product at a competitive price.
Promotion:
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60% of the marketing funds are spent on advertising. Primarily TV advertising
with radio, magazine, cinema and outdoor support. Other promotional items
include: point of sale material, consumer premiums (e.g. clothing, caps, etc),
sporting and concert sponsorships.
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Place:
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PAH/PI own the Pepsi brands. They sell the concentrate to CSA who
manufactures and bottles the Pepsi products and distributes it to consumers. CSA
distribute Pepsi via various channels e.g. major supermarket chains, smaller milk
bars, restaurants and fast food outlets (KFC, Pizza Hut and Oporto). Pepsi also
have refrigerated vending machines at various locations and workplaces.
Service the right pack size at the right price, in the right place at the right time.
Strategic Marketing:-
The Coca Cola Company versus PepsiCo
Market Share:
Pepsi-Cola ranked as the second -best selling soft drink in American supermarkets
in 2000. A consistent runner-up to Coca-Cola Classic, Pepsi- Cola was joined by
three other PepsiCo products in the year 2000 rankings – Mountain Dew, Diet
Pepsi and Caffeine-Free Diet Pepsi.
Pepsi Coranked second in American CSD market share to the Coca-Cola
Company, holding 31.4% during the same year. Coca-Cola Classic outsold all soft
drinks in America during the year 2000, netting over USD$ 2 Billion at the cash
register. The Coca-Cola Company maintains the CSD market as its primary line of
business. With subsidiaries located throughout the globe, Coca-Cola is easily able
to dominate the Global CSD market.
In the year 2000, Coca-Cola generated only 29% of its operating income in North
America, representative of its large volume of international sales.4 inversely;
PepsiCo maintains lines of business in both the CSD market and the snack
foods market.
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command of over half of the world's CSD market since 1998. On abrand-by-brand
scale, Coca-Cola took five of the top seven spots globally in 1999, with standard-
bearer Coca-Cola holding a 28.6% share of global CSD volume. Pepsi-Cola was in
second place with a 10.8% share, while PepsiCo's Mountain Dew placed sixth in
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terms of global Volume.
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Pepsi Cola Coca Cola
Market Share 31.4 % 44.1 %
No. of Countries 160 200
Variety of Product Large Large
Target Market Youth General
Strategy Focus Diff. Differentiation
Diversification Related Related
Market Penetration:
It is the shared goal of PepsiCo and Coca-Cola to increase the overall global
consumption of their products. Kotler and Armstrong contend that improvements
in advertising, prices, service and selection can increase repeat purchases and
attract new consumers 7. In an attempt to increase market share during the famous
“Cola Wars” of the 1980’s and 1990’s, PepsiCo initiated the “Pepsi Challenge”
advertising campaign. Without changing their product, Pepsi temporarily enjoyed
a heightened market share and began to penetrate further into the competitive
American CSD market.
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has adopted a similar method of obtaining exclusive selling power, PepsiCo has
followed up with various aggressive advertising campaigns using popular
American teen icons to promote Pepsi products.
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“The next generation” motto was replaced with “Joy of Pepsi” and “For those who
think young,” targeting not only American youth, but the youthful mindset of
every consumer. Pepsi continues to use teen and child icons to promote their
products, while Coca-Cola has latched onto the remaining Baby-Boomer
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market. Through product placement and exclusivity contracts with restaurants,
sports arenas, amusement/theme parks and various large event coordinators,
Coke has been able to increase their overall visibility to counter
“Without Coke, Pepsi would have a tough time being an original and
Lively competitor. The more successful they are, the sharper we have to be. If
the Coca-Cola Company didn’t exist, we’d pray for someone to invent them,
And on the other side of the fence, I’m sure the folks at Coke would say that
Nothing contributes as much to the present-day success of the Coca-Cola
Company than… Pepsi.”
Market Development:
Identifying new and developing markets for current products – market
development – is another method both Pepsi and Coca-Cola are presently using to
increase overall sales. While PepsiCo’s shift in advertising to a younger audience
can be considered market penetration, it also exhibits qualities of market
development. Teenage Americans have not traditionally been looked at as a
powerful consumer group until recent years. Identifying this developing market,
among other demographic ‘micro-markets,’ Pepsi has been able to penetrate
areas that Coca- Cola has not.
The Coca-Cola Company and PepsiCo alike have taken note of the potential for
expansion in the geographic markets of China, India, Philippines. CSD market
development ties in very closely with both market penetration and product
development strategies. Many CSD preferences are tied to societal and/or cultural
preferences and existing alternatives. Sprite and 7-Up (non-cola CSDs) have
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been very successful in African-American markets. In 2001, PepsiCo further
augmented their marketing strategy to break into this previously unaddressed
micro market with a new non-cola CSD named Code Red.
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Product Development:
While targeting the African-American market, PepsiCo determined that its
Mountain Dew line could be augmented with a new cherry flavor (Code Red).
“PepsiCo also hit the streets to go after the black and Hispanic audience with
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whom Mountain Dew has traditionally not done as well. Rap jingles starring
Busta Rhymes and Fatman Scoop hit the airwaves, and cases of Code Red
mysteriously began to appear at the doors of inner-city influencers.”
Revisiting the “Pepsi Challenge” from the 1980’s and 1990’s, we see a larger
attempt to increase market share with product development. Prior to releasing
Coca-Cola Classic, Coca- Cola attempted to diversify their product with the
1996 introduction of Coke II. Altering the formula of their best-selling CSD, the
Coca-Cola Company attempted to make the product more appealing to consumers.
Coke II was very poorly received, and Coca-Cola’s attempt at product
diversification failed with thousands of consumer complaints about the new
formula.
Diversification:
Starting up or acquiring businesses outside of current markets and products –
diversification – is an excellent way to strengthen a company. Profits and revenues
generated by secondary or even tertiary ventures can provide additional
resources to strengthen a businesses’ primary class of products. However, as
Kotler and Armstrong explain, “companies that diversify too broadly into
unfamiliar products or industries can lose their market focus.”
PepsiCo was faced with this very situation in the mid-1990’s with their
restaurant ventures.
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PepsiCo spun off their restaurant businesses as Tricon Global Restaurants, in
move to keep from becoming too over-diversified.
a
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PepsiCo, valuing its stability through diversification, moved to acquire Quaker and
SoBe in 2001.Quaker specializes in health foods and is the industry leader in non-
carbonated sports drinks. SoBe is a world leader in health and new-age non-
carbonated beverages. PepsiCo correctly identified the global demand for more
non-carbonated ready-to- drink beverages, and was able to move swiftly to
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diversify their holdings. Gatorade, a sports drink acquired with the Quaker
purchase, sold slightly over USD$ 2 Billion in the year 2000 – rivaling Pepsi’s
competitor Coca-Cola. Coca-Cola does not show any sign of moving into markets
other than ready-to consume beverages, but still offers a wide array of diversified
beverage products. The 239 beverage brands that Coca-Cola produces constitute a
major portion of beverages available to consumers worldwide, covering dozens
of micro-markets. Unlike PepsiCo, Coca-Cola has a long history of success with
international marketing efforts and business strategy. Thus, rather than competing
with Coca-Cola on in the international beverage arena, PepsiCo has ensured
longevity with alternate product offerings.
ORGANIZATIONAL CULTURE
The culture of Shamim & Co. is differentiated with the other Beverage
Companies on the basis of following key characteristics;
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ATTENTION TO DETAIL
The company’s employees exhibit precision, analysis, and attention to
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detail. Due these qualities, the overall performance of the company is
appreciated and very well managed.
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OUTCOME ORIENTATION
The management of Shamim & Co. focuses on results or outcomes
rather than on the techniques and processes used to achieve these outcomes.
The company got “Mega Plant” status in 2000, 2001, and 2002 due to this
characteristic.
PEOPLE ORIENTATION
The decisions made by the management of Shamim & Co. take into
consideration the effect of outcomes on people within the organization. The
people working under different Managers are treated by the dynamic
approach to get the maximum efficiency from them.
TEAM ORIENTATION
The work activities in Shamim & Co. are organized around teams
rather than individuals. One of the company’s executives says that they do
follow the policy of “TEAM” which is de-abbreviated as “Together”,
“Everyone”, “Achieves”, “More”.
AGGRESSIVENESS
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The employees of Shamim & Co. are always willing to accept the
challenges and aggressive to accomplish the tasks assigned and competitive
rather than easygoing.
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STABILITY
Some areas of working relationship between the employees are kept in
status quo in contrast to growth like socialization etc.
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HOW THE NEW EMPLOYEES OF
Shamim & Co.
LEARN CULTURE
STORIES
RITUALS
MATERIAL SYMBOLS
LANGUAGES
STORIES
One of the most important ways of transmitting the culture to new
employees in Shamim & Co. is stories. Old employees of the company carry
those stories about the people who had worked with the organization. They
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are well familiar with the past experiences and their outcomes. They either
frighten them or give them courage to follow or not the procedures set by
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the company. The old bosses of the department brief new comers how they
should have to perform their duties and what are the norms of the company
which cannot be violated. For example Mr. Asif is the In charge of MIS
Department of Shamim & Co., he is responsible for the initial training of the
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new comers. He gives them all the details regarding the Department, and
Organization. He tells them about the decorum of the office and likely
behavior to be pretended.
RITUALS
Another important factor of transmitting the culture to new employees
is rituals. Some activities are considered to be the understood activities like
the break for Namaz-E-Juma. As the members of Shamim & Co., are regular
prayer sayings, so a break for the prayer is understood and nobody is
compelled to do any office work during the break. Also there is a company
policy in Shamim & Co., that is to give 15 days annual recreational holidays
with pay. Anybody who wants to go for those holidays, he can go with the
consents of his boss.
MATERIAL SYMBOLS
Another motivational cultural approach is to give due position to the
employees who deserve that position. In Shamim & Co., the top executive
like Mr. Aamir Hameed GM Sales, has been given a chauffer-driven Honda
Civic Car, a latest Laptop, Unlimited use of mobile phone, a well furnished
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house, one Umera per year, free cold drinks up to 200 c/s. and a very
handsome salary package. So the material symbols like these facilities also
show the best cultural values and motivational tactics for the new comers
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and for those persons who work hard in the organization.
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LANGUAGE
The employees of Shamim & Co. have a formal way of behaving to
each other. They talk formal like “Sir” even to their co-workers. They
respect each other all the way to share the respect. Hence use of formal
language is also key to learn the culture in Shamim & Co.
1. Aggressive bottlers.
The pepsi bottlers were more aggressive in their policies and
strategies than that of their competitors. COKE ignored this
region because the share they were getting from this region was
less than nominal, providing pepsi an opportunity to grow up
and capture the market.
2. Anti Jew Movement.
Because of the Arab Israel war, the Arab countries
decided to boycott the Jew products. So they boycotted the
COKE. It opened the gates of success and opportunity for the
pepsi.
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Environmental factors.
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Cold conditions in western societies influence people to
use things with bitter taste like beer and coffee, therefore they
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like COKE as compared to pepsi because the contents of coke
are bitterer. In Pakistan people are more inclined towards
sweeter taste therefore they like pepsi.
CONSUMER REQUIREMENTS
Basically soft drinks are consumer good that is not
a necessity so the companies have to draw money from the
pockets of the customer. This is not an easy process.
BRAND LOYALTY
One of the important features of this industry is the
concept of brand loyalty or brand addiction. Customer who
wants Pepsi will always go for Pepsi. For the same reason a
competing company like Coke cannot divert these customers
towards their brand. But these customers are looking for two
things in the product, which they are loyal to.
PERSISTENT QUALITY
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Lahore or in a remote village, what he wants is that he is
provided with the same quality of the product everywhere. To
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have this customer requirement be fulfilled the company needs
not only to manufacture quality product but they also have to
constantly track the product as it moves from there company to
distributors and then to final customer.
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These soft drinks can sustain their quality in a
specific temperature specially the glass container cannot absorb
higher intensity of heat. But what these retailers do is that hey
keep these containers outside their shops directly under the
sunlight that really affects the quality of the product. Although
the life of the glass bottles under ideal conditions is almost 6
months but due to above mentioned conditions, the life span
reduces to only a week. Company therefore advises the
shopkeepers to keep the stock under sheds but if they can't then
they should sell it within a week time.
AVAILABILITY
When a thirsty customer comes on a soft drink
corner asks for a desired brand say Coke but if it is not
available then is he not going to go for the next available brand.
The answer will be yes, because he needs to fulfill his thirst and
what is readily available is going to be consumed.
Therefore for companies to keep their, customers
in general and loyal customer in particular, satisfied, they will
have to insure that their goods are in sufficient quantity on the
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shops. For this the shopkeepers keep extra stock in their shops.
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For the quality to be sustained they need to sell the crates which were
stocked earlier. But usually they don't follow the pattern. What they do is
that they sell the bottles on the basis of FIFO (first in first out) method. This
practice also effects the quality of product leading to customer
dissatisfaction.
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MARKET SEGMENTATION AND TARGET MARKETS
This statement is quoted from Pepsi Cola International official website. “In 1960, Young
adults become the target consumers and Pepsi's advertising keeps pace with "Now it's
Pepsi, for those who think young".
Now there is no specific segmentation of market with respect to customers because their
product is standardized. According to their general manager sales, different brands are
targeted towards people belonging to different age group, according to him 7up is more
likely to be preferred by old age people where as Miranda is popular among teenagers
and Pepsi is preferred by people belonging to any age group.
ACHIEVEMENTS
Last year Pepsi Cola Multan showed their best ever performance of product growth rate
in the Asian Zone and stood fourth in the Asia. Recently last month Pepsi Cola Multan
won the Pakistan quality contest by securing first position. As compared to last year their
production capacity has increased to 100,000 cases per day in peak season.
PRODUCTS
PEPSI COLA
Pepsi cola is their most successful brand with most of the market share .In Pepsi they are
producing following brands
• 175 ml
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• 250 ml
• 1000 ml
• 1500 ml
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7-UP
7-Up is also popular in old age group of people. 7-Up is a lemon lime drink. In 7-Up they
are producing following brands
• 175 ml
• 250 ml
• 1000 ml
• 1500 ml
MIRINDA
Mirinda is the most popular drink in teenagers. In Mirinda they are producing following
brands
• 250 ml
• 1000 ml
• 1500 ml
MOUNTAIN DEW
Pepsi cola has recently launched a new product in Pakistan known as Mountain Dew
which is now a days most popular cold drink amongst adult group. In Mountain Dew they
are producing only one brand 250 ml bottle.
PEPSI INGREDIENTS:-
Water
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At least 86% of soft drink is purified water. In the case of diet soft drinks
comprises around 96%.
water
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Sweeteners
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registered trade name and it is used in Pepsi Light, Diet 7UP and Pepsi Max.
Aspartame, being 200 times sweeter than sugar, is used in very small
quantities. Other non-nutritive sweeteners permitted are acesulphame
potassium, thaumatin, saccharin and cyclamate. Pepsi Max and Pepsi Light
use a dual sweetener system, aspartame and acesulphame potassium. The
latter is 300 times sweeter than sugar, requiring even less to sweeten the soft
drink. Shelf life of the product is extended, as, unlike aspartame, acesulphame
potassium does not lose its sweetness over time.
Flavours
Pepsi uses flavors to develop characteristic tastes associated with our beverages.
These come from a variety of sources; natural, artificial and nature identical. They
are usually derived from a number of ingredients used in special combinations.
Examples of flavors used in the manufacture of soft drinks include natural
flavorings from Kola nut, and fruit. Food acids and bittering agents such as citric,
phosphoric acids and caffeine are also flavoring substances.
Our products and the flavors used in those products are safe and suitable, but they
are proprietary.
Carbon Dioxide
Effervescence gives soft drinks their special bubbly appeal and is added
During production by injecting C02 into the product on the way to the filler.
Colors
Colors are added to Pepsi Cola products to enhance the esthetic appeal and
appearance of products whether they are the typical brown of our colas or the
yellows of Mountain Dew.
Natural colors or colors sourced from natural materials. Many countries have
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regulations that specify certain colors as natural. These colors are referred to as
"natural colors."
Synthetic (or artificial) colors. Internationally there are many colors that are
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accepted.
Preservatives
Certain preservatives are used in soft drinks to ensure microbial stability and
prevent spoilage
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Pepsi Cola Brands List:
• Pepsi-Cola
• Caffeine Free Pepsi
• Diet Pepsi
• Caffeine Free Diet Pepsi
• Pepsi Twist (regular & diet)
• Wild Cherry Pepsi
• Pepsi Blue
• Pepsi ONE
• Pepsi Vanilla
• Diet Mountain Dew
• Mountain Dew Code Red
• Diet Mountain Dew Code Red
• Mountain Dew LiveWire
• Mountain Dew Blueshock
• Mountain Dew AMP energy drink
• Mug
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• Sierra Mist (Regular & Diet)
• Slice
• Lipton Brisk (Partnership)
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• Lipton Iced Tea(Partnership)
• Dole juices and juice drinks (License)
• FruitWorks juice drinks
• Aquafina purified drinking water
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• Frappuccino ready-to-drink coffee (Partnership)
FUTURE PLANNING
The company operates through a well experienced, loyal and hardworking
employees. The first and the most basic plan it to train them according to the
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changing technology and computerized environment, and satisfying their needs
and requirements. Upgrading the plant structure and installation of the new
machinery are other plans. The company is planning to increase its sales force and
development in its infrastructure in the coming time period.
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LATEST MARKET SHARE STATISTICS
Latest market shares of brands are given below
1. Multan A Zone
2. Multan B Zone
3. Multan C Zone
4. Multan District
5. Multan Outskirts
6. Khanewal
7. Mailsi
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8. Vehari
9. Muzafar Garh
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10. Leiah
12. Sahiwal
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13. Okara
2. LRB This stands for “Liter Returnable Bottle” this includes Pepsi, Mirinda
& 7-Up. We are not offering Mountain Dew in this class.
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4. NRB This stand for “Non Returnable Bottle”. It can also be called as
“Deposable”
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It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi
& Diet 7-Up.
5. Cane Packing, we are offering cane packing of all that brands that are
offered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.
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6. Post Mix – This includes Fresh / Fountain. This group includes Pepsi,
Mirinda, 7-Up & Mountain Dew. This facility is offered on “QSR” that
stands for “Quick Serving Restaurants” and all those points where no of
walk-in-customers in very huge with their short time stay at that point.
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MORE!
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ORGANIZATION HIRARCHY:-
Managing
Director
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MORE!
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Distribution Channel:-
The company operates through a well-established network of a number of
distributors. The company has two types of delivery systems i.e.
The basic difference between the direct and the indirect delivery system is
that in a direct distribution system, the company spends its own resources
while in a indirect distribution, the dealers spends their own resources on all
the factors which increased the sale. The company also has its depots in
different cities. Which helps a lot in increasing its sale and directing the
distribution system.
1- Preparation
2- Greeting
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3- Stock Checking
4- Merchandising
5- Presentation
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6- Order taking
7- Curb side de-briefing evaluation
8- Administration
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1) PREPARATION
2) GREETING
It includes greetings and hand-shake. Greet the customer by name & he will
be delighted should be keep in mind of every person involved in sales.
This includes all the good e is dealing in this will help us to know about his
financial worth patented and clientage.
4) MERCHANDISING (Display)
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Then
Non Returnable bottles
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Then
Single serving returnable bottles
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Then
Liter returnable bottles & pet bottles on the floor of visi coolers
Every sales person should be caring about the display
5) PRESENTATION
Policy
Scheme
Product availability
Total sales tack
6) ORDER TAKING
Taking Order
Evaluation
8) ADMINISTRATIONS
Cash
Empty
Sales figure entry
Infection of stock
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• Increase stock at mix points
• Conversion of coke points
• Elimination of B- Brands
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SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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Coca- Cola is on its way to get market share
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COMPETITIVE PRIORITIES
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COST
As Pepsi cola Multan is producing standardized products so they have to maintain a fixed
cost. They want to lower per unit cost as well as the total cost of production.
QUALITY
Pepsi cola Multan is producing a standardized product because all the manufactured
items contain the same amount of the raw material required. So they want to maintain the
quality of products. They want to deliver high quality product according to international
standards given by Pepsi Cola International (PCI).
TIME
Pepsi Cola Multan meets its delivery-time promises i.e. The Company pays most
attention to delivery -on- time to satisfy customers & retailer’s needs on the time, which
they want.
FLEXIBILITY
Pepsi Cola Multan does not focus the unique demand of customers & products are
standardized, So Company works for volume flexibility i.e. Company is able to
accelerate or decelerate the rate of production quickly to handle large fluctuations in
demand.
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•
•
•
Wide geographical coverage
Experienced engineers and sales staff
Quick customer response and feedback
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DECISION MAKING IN PEPSI COLA MULTAN
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Decision making in Pepsi Cola Multan is influenced by the following factors which
are.
AUTONOMY
Decision making is highly centralized & ideas from lower levels are not welcomed. So
idea generation is not facilitated & top executives are responsible for developing
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strategies for their own SBUs. This sort of arrangements restricts innovative strategies &
lower level participation in decision making.
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ORGANIZATIONAL STRUCTURE
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MANAGING DIRECTOR
He is the owner of this company and final operational authority to manage all
departments of the company. All departments’ heads are responsible to report him all
about their performances and matters.
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GENERAL MANAGER FINANCE
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Finance, Accounts and MIS departments work under his control. He is responsible to
make major company financial policies to meet the needs of the each and every
department regarding budgets etc.
DEPARTMENTS
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In order to properly control the operations there are following departments in the
company
ADMINISTRATION DEPARTMENT
Administration department deals with the overall matters of the company and takes
different actions for increasing the performance of the company. This department also
carries out different social welfare programs.
• Marketing Development
• Tactical analysis and routine planning of market strategies.
• Competition activity monitoring
• T.O.T. management
• Publicity management
• Time management
MARKET DEVELOPMENT
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The first and the most basic job of the sales and marketing department is to
plan, develop and make targets. And also to make strategies to achieve
those targets and develop the market. The following major factors are
considered in this respect.
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• Collection of all the data about each and every distributors/outlets, about its
sale, volume, growth and exclusivity.
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• Finding the points where competitor is strong and hoe we can break this
point.
• Different offers must be given to break the competitors point or win the mix
point.
OUTLET
On the market side the sales people gather information and on the bases of
these information they further plan and improve their strategies.
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• Calculation of daily sales achievements on monthly target basis
• Location of the poor performance factors and analyzing their cause
• Finding their solution and getting the approval for its execution.
• Planning for a schedule for the designated area.
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• Visiting the area according to the plan and reporting it to the higher
management
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Competition Activity Monitoring
On the other hand a constant intention have been given to the competitors
activities, strategies and offers. They have been compared with ours and
updated according to the environment
Sensory measures means to check the quality and standards through the
senses. The colour, taste, appearance and other specimens of the bottle,
must be checked time by time so that the standards of the PCI may not
doubted
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There are two types of empty management i.e.
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The sales and marketing department have to manage, plan and make
strategies a about the distribution of empty whether it is on credit or cash.
The department also has to handle and manage load. Whether it is on
vehicles or shipping or distributors or at the depots level. At shipping level
load management can be divided into
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• Package wise
• Brand wise
• Demand wise
Following are the steps which are necessary to manage the empty
• Trippage level tracking of each distributor for the last two years at least.
• Estimation of sales volume growth for at least last three years
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• Factors involved causing hyper Trippage.
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• Level & Percentage increase of empty injection.
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TIME MANAGEMENT
This is the key department which is making all possible efforts to make company mission
statement to rationality. This department is doing all tedious exercises to increase the
sales of the company by sponsoring different social programs, managing distribution
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channels, managing all marketing activities and by advertising to get the competitive
advantages. Country office is responsible for making advertisement strategies and
campaigns. All decisions regarding hiring a specific celebrity are made by Pepsi Cola
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International for each country. Pepsi Cola Multan contributes in the advertisement budget
at country level. Currently 10 to 15 distributors are working in Multan region.
Distributors pick their orders from the sales warehouse and then distribute them to
retailers who are responsible for providing product to the customers.
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Pepsi Multan also provides vehicles to the distributors who cover those regions where
they can not approach directly. The distributors who are using Pepsi vehicles have to pay
1 rupee per crate when they load their trucks for delivering their orders. Marketing
department has a sub department which is SIS department
Its depend on the feed back of consumer. That how the consumer may
perceive the promotion of product. If the feed back is positive
For Example: the company achieving is object for the promotion then the
defined promotion successful otherwise company observe the drawbacks
for the defined promotion In prove it and implement and the feed back
process against starts, so it is a continues process till the time. The company
may get the Targeted object
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1.
There are two source of promotion
Electronic
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2.
3.
Print Media.
Personal Selling
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Both are important because they have relevant work
1. Sales Promotion
2. Product Promotion
Firstly we get approval from govt., for promotion (Price off) volume
duration.
Yes there is a promotion ordinance. All the policies are related with this
law.
To make is more and more attractive for the customer before starting the
promotion normally it is viewed that what sort of promotion activity may
start different ideas are generated and then from these ideas A promotion is
defined with its pros and corns.
Is based on customer
It may be for any male, female of any type (relevant to sex age).
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Sales Promotion
Schemes of different nature
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Discount scheme.
In post mix this following are the objectives for promotional activities
o To do product promotion
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Promotional Timing
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For the promotional activities below stated or the other activities may be
donning in the months of March. April (starting of peak season) and
September to November (sales decline season).
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Promotional Target Market
For promotional activities low volume outlets, Key outlets, entertaining
outlets may be preferred. This shall encourage outlets as well motivate.
Prizes distribution
Prizes may be given to the consumer as conveniently, it could be placed
either at outlet premises or at factory
With the sport of these prizes the below stated promotional activities may
be done.
Lucky draw
Under this scheme different small prizes with one-bumper prizes may be
given to winner by making a lucky
Some other activities like PEPSI logo uniform may be provided to high
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selling outlets for their serving staff.
Some activates may be done in shape of parks tickets with PEPST printed
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over there. In parks various promotional activities could be done like
discounted rate; free cold drinks etc at some selected park for a specific
day.
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PUBLICITY:-
DEFINITION:
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no direct media costs. The credibility of publicity typically is much higher
than advertising. I.e., if we tell you our product is great you may well be
skeptical. But if an independent objective third party says on the evening
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news that our product is great you are more likely to believe it.
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TYPES OF PUBLICITY
Publicity comes in many forms. The most common are news stories and
public service announcements.
GENERATING PUBLICITY
PRESS RELEASES
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media with information about the product or organization.
A press release gives the marketer sum control over news coverage by
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Keep it short.
Include the name and phone number of the person who can be
contacted to verify the story.
NEWS CONFERENCES
The marketer invites reporters to the news conference and usually provides
them with advanced information. A spokesperson for the organization may
read a prepared statement and answer the question from the media men. But
there is no guarantee that media will attend or ask the question that he
spokesperson wants to answer.
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resulting exhibit receive favorable publicity in the local press, but also the
local historical museum added the photos in its collection.
As in this example the key is to create events that are some how favorable linked to
the organization or its products. “Thus there are as many ways to generate
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publicity as there are ideas in the mind of marketer
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Pepsi Takes new twist’ on Cola
Pepsi Twist, the great Taste of Pepsi with Lemon, enters selected markets in
refreshing new product called “Pepsi Twist. “Regular and diet versions of
the crisp new cola now are entering retail outlets in selected US markets.
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extraordinary measures of stay cool. Created by Pepsi’s longtime
advertising agency, BBDO New York, the humorous new commercial
invites consumers to try “A New Twist on refreshment.”
Purchase. NY – based Pepsi-cola company is the global beverage division
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of PepsiCo, inc. in addition to Pepsi Twist, is brands in the United states
include Pepsi, diet Pepsi. Pepsi ONE, mountain dew, Mountain Dew code
red, wild cherry Pepsi, sierra Mist, Mug, Slice, Aquarian, Fruit works, Doe
single-server Julces and So Be. The company also makes and markets
category-leading iced teas and coffees, respectively via joint ventures with
Lipton and Starbucks.
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Pepsi-Cola’s culture is informal and entrepreneurial. Our people are
empowered to make the decisions necessary to grow the business. We seek
to achieve outstanding results through innovation, long term partnerships,
and an open work environment that respects the individual and promotes
personal and professional growth
Pepsi-cola products account for about one-third of the U.S. soft drink
market. Brands include Pepsi; diet Pepsi, Pepsi One, mountain dew slice,
Mug Root Beer, Aquarian and All Sport Through the Pepsi/Lipton tea
Partnership. A joint venture of Pepsi-Cola North America and Lipton, we
are the leader in the ready-to –drink tea market. In addition, we virtually
created the ready-to-drink coffee category with the introduction of
frappuccino through our joint venture with Starbucks Corporation.
Pepsi-Cola North America (PCNA) manufactures Pepsi-Cola beverage
concentrates and sells them to bottlers in the United States and Canada. We
develop the national marketing, promotion and advertising programs that
support our brands and generate new products and packaging. Pepsi-cola
people coordinate selling efforts for national fountain, supermarket and
mass merchandising accounts. Whether it’s a new package or a new
computer application, our goal is the same meeting customer needs.
• Sales Information System
Sales Information System, which is working under marketing department, is
responsible for making decisions regarding either to provide chiller or not, either
to sponsor store publicity arrangements or not and etc. decisions are made on the
basis of store look, location and amount of turnover provided by the retailer. This
department also provides information about the distributors and their product
requirement
• Research And SIS Department
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This department works under the marketing department and its responsibility is to
check the market performance of the product and provide information regarding
the product status and its market share. They are also responsible for checking the
MORE!
performance of the new products like Mountain Dew, Its acceptance and capacity
to launch a new product in the market.
Market Research & SIS is a very strong department, aimed to keep current
record of each & every outlet of the franchise. Through this system,
management can come to know
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Market Share
Name & address of each outlet. T.O.T details
Publicity position
Discount verification
The system is designed in such a way that reports can be obtained about
outlets:
Market Share:
Research Assistant Manager (Saeed Bhutta) analysis is a proprietary methodology
developed to help share determine whether their sale should go the market,& new
competitive products in this market. This analysis allows research supervisor to go into
the market, identify the components that establish market share, and determine which of
those like availability, Chiller, Empty stock in order to improve their share position.
Research supervisor analysis the market & visit the shops, they analysis and click’s on
there checking share format after the completion of sample size, they come back and
submit these checking format to the Computer Section. Here information feed in the
computer program and generate the result in the form of Share Summary.
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Before creating strategies, you need to define the marketplace in which you compete and
create lists of your key competitors and the various channels serving your market.
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Segment the market
The first step in creating "take share" strategies is to segment the market based upon the
buying behavior of your customers. The market segments you choose must satisfy market
criteria.
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Market category
- Main
- Side
- Village
- Captive
Main Market – means main road, high volume market, wagon stands,
commercial area.
Side Market – means colonies, mohallah, entrails, links road, side road
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-
Fresh Consumption
Floor stock
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-
Pepsi Exclusivity
Coke Exclusivity
- Mix
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SIS deals with Tools of Traders (TOT). T.O.T. means list of items available in a
shop, which helps to sell our product conveniently on priority basis. It is one of the
major investments being made by the company. T.O.T. management completely
depends upon the Sales force. The factors to be considered are
• Data collection about the sale, volume, growth, profitability, size and place
of the shop
o Deep Freezer
o Visi Cooler
o Ice Chest
o Bottle Rack
• Checking all the equipment time by time any removing their complaints
FINANCE DEPARTMENT
It deals with the financial matters of the company. It collects the revenues and makes
different payments and maintains proper record of the financial performance of the
company’s business to show the net result in the form of either profit or loss. Finance
department consist of
• Management Accountants
• Cost Accountants
• Accounting MIS Department
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HUMAN RESOURCE MANAGEMENT
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All hiring and firing decisions are done locally by the franchise. There is no involvement
of even Country Office. All decisions regarding pay scales, promotions, demotions and
increments are done by the franchise itself. All training arrangements are made by
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franchise itself. All hiring is done through references there is no concept of job
advertisement in Pepsi.
PRODUCTION
This department is responsible for the production of the products according to the
requirements of the customers. Production department have to manage the inventory of
all types. Currently they are having five production plants and all of them are automated.
Now they are planning for the installation of three new plants. Mostly they go for
importing their production plants from Italy, Germany and Netherlands. Previously they
used to purchase Ammonia for cooling purposes but recently they have installed an
Ammonia plant with in their own premises. Now they purchase CO2 for the production
of Ammonia gas. Regarding the use of management information systems, they are
shifting their production record from manual system to computerized system. Production
department can be divided into sub departments which are
• Quality Control Department
Quality control department is responsible for checking the quality of the product.
After every 3 hours a quality check report is presented by this department to the
production manager and GM technical. In case of any problem with the quality,
after every half an hour quality is checked.
• Technical Department
Technical department is responsible for any technical assistance needed in case of
any plant problem. They also maintain the spare parts inventory which is used in
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case of nay breakage or malfunctioning of plant part.
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• Procurement Department
This department is responsible for any assistance needed to purchase the technical
parts. In case of any purchase of plant or any part of the plant they help the
purchase department for purchasing the right part.
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Bottles Washing Plant:
In the plant, syrup (from syrup tanks) and water (from water treatment) is
mixed at a specific ratio called flow mix. The mixture then moves to carbo
cooler where carbonation of product i.e. absorption of CO2 in the syrup at
low temperature is done. It then moves to filler where product is filled in
empty bottles and crown caps are put on it. The final product moves
towards packing machine through conveyer however most of the time
bottles are packed into cases manually.
IN PROCESS TESTING
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BRIX INVERSION TEST
The purpose is to break the sugar molecule into simple molecule of glucose
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and fructose, Inversion is performed to confirm on-line brix target .the test
is taken after an hour of starting tank on production line.
FILL HEIGHT TEST
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package size. Fill height is the distance from the top of bottle to the
meniscus of the liquid.
pH TESTING
pH scale indicates the amount of acidity or alkalinity. pH is measured for
Raw water, treated water, control drink, finished beverage, T.A. testing and
incoming raw material. The purpose of the test is to define the line Brix.
This also helps in predicting the sensory attributes of the beverage.
The purpose is to test the incoming sugar for its ash contents in order to
define quality. Sugar ash is primary indicator of sugar sensory performance
in a beverage. It is comprised of organic and in organic salts left over from
the refining process. The sugar is used in syrup making.
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Processing Materials Ferrous Sulfate Test:
The chemical is used in syrup water treatment.
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Processing Materials Activated Granular Carbon Test :
The chemical is used in syrup making and water treatment.
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The purpose is to ensure that incoming lot of crown corks/caps fulfills the
appearance requirement and free from defects. Crown caps are used for
packing (sealing) of bottles after filling. Crowns and closures should match
supplier shipment label and purchase order. The characteristics considered
in the analysis are outside printing, inside printing, color, shell or liner
flash, cracks, band etc.
Critical Defects: The defects that result in hazardous or unsafe conditions for
smug, maintaining or depending upon the product. These could be Struck
glass, Loose glass, False bottoms, Bird, Swings. Major defects: The defect
likely to result in failure or reduce materially the usability of the product for
intended purpose. The defects are Cracks, Chocked necks, Bent neck,
Stones over 1.6mm (1/16 inch) etc. Minor defects: a minor defect is
departure from established standards having little bearing on the effective
use. These could be Brush marks, Seeds, Birty molds, Dirty finish etc.
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Chlorine (sodium hypo chlorite) test: Used in water treatment.
Post Mix tanks inspection:
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Post Mix is undiluted fountain syrup that is delivered to retailers in transfer
tanks. The inspection is performed before filling new or market returned
tanks. A form is filled with the following format
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Pre-inspection Safety
Tank# Product Appearance Washing Filling Performed
O-ring Wolves
CALIBRATION
The calibration ensures that the equipment is fit for its intended use.
Calibration is very integral and critical because instruments are eyes into
the process and if the are not working properly, the process may produce
unexpected or undesired results.
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HYDROMETER CALIBRATION
MORE! The purpose is to test the non-existence in Brix reading and note if
difference existed.
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THERMOMETER CALIBRATION
To assure that thermometers are properly tested for their exact temperature
reading. The calibration is for:
SUGGESTIONS
In the production hall, very concerned person must use masks, gloves and
safety glasses.
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Earplugs should be provided to the people working in the production hall.
Proper sitting room should be provided to CO2 supervisor to keep the spare
parts, tools and documents safely.
Labor should wear neat and clean uniform.
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Proper arrangement should be for draining
Many under 18 age boys are working in production.
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PCI QUALITY RATING
PCI collects product samples from market, tests them in their labs against
standards, sends monthly test results summary to their franchisers and allots
rating (colors) to franchisers after every three months. The PCI Operations
Director - Quality Systems for Middle East, North Africa & Pakistan sends rating
of 44 factories including SHAMIM & CO.. The color rating is based on following
criteria.
Red
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SHAMIM & CO. has been in yellow color after the standard percentage is
Increased.
PRODUCTION PROCESS
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Company is having flexible production plants. Company can change production
according to demand fluctuations. Process is same for all products i.e. Pepsi Cola, 7-up,
Mirinda and Mountain Dew. No plant is fixed for a specific product.
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5th STAGE (FILLING SECTION)
Now finished syrup & treated water come to Carbo Cooler in which NH3 (Ammonia)
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chips are used for cooling purpose. CO2 gas also comes in Carbo Cooler. After a flow-
mix in Carbo Cooler, the resultant drink comes into filler where empty washed bottles are
filled.
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6th STAGE (CROWN FITTING)
Now bottles come to Crowner where they are crowned and then bottles pass through a
light test to have a check for over filled, under filled or any deficiency.
SHIPPING DEPARTMENT
Shipping is a very critical area for any beverage organization. It serves the
role of coordinator or middleman between production and sales. Ensuring
appropriate quantity and on time availability of empty & liquid stock is
utmost important. Any malfunction in empty receiving, storage, supply to
plants, liquid stock and distribution directly affects sales. This is a complete
chain or cycle and any weak link, bottle neck or disturbance will slowdown
the whole operations.
Shipping department has following main functions.
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• After approval, the purchased lot is identified with quality control passed
stickers.
• Consignment is unloaded at the empty godown.
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• Empties are transferred in cases manually and inspected for breakage.
• Cases are transferred to plant as per requirement on empty movement slip.
• Empty incharge does, stock taking and maintain daily empty stock physical
report. Shipping department also receives used empty from dealers,
distributors, salesman etc.
• Dealer/Salesman arranges the return of empties from market as per
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contract.
• On arrival of vehicle, dealer/salesman records entry (detail of empty) on
gate register. A token # is issued to every vehicle.
• Shipping staff unloads vehicle on the token number. Empty incharge checks
then for breakage and they are sorted out physically in standard, junior, liter
sizes and put into cases brand and size wise.
• Empty incharge prepares empty slip. Empty slip has an office copy and
three other copies at factory one copy goes to MIS, other is for shift
incharge at DP godown and the third is for gate office.
• Gate office reconciles the copy of empty slip with initial entry.
• Gate register has two parts, one is for gate entry and the other is shipping
received. Details of empty slip must match with the earlier gate entry
Shipping department has two godowns for empty storage. These are
godown No.1, No.2
PEPSI TOWN
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Sign of production office
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LIQUID STOCK & DISTRIBUTION
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Clearance Godown
& payment
i) For the base market salesman directly take load from factory godown. At
the end of the day, they return the empty and deposit daily cash.
ii) SHAMIM & CO. has five depots to ensure smooth, regular supply and
stock maintenance in other cities covering whole franchise area. The depots
are treated like distributor /dealers. Shipping, sales and MIS staff works in
depots. Trucks are made available by the company on contract to supply
liquid and return empty frame depots settlement sheet of depots in prepared
and cleared by the transfer of cash from dealer's account to company
accounts.
iii) Some dealers whose area is not base or under any depot's range also take
load directly from factory and clear their settlement sheet by cash payment.
The procedure for all three types of parties is same. The salesman / drives
deposits empty slip to MIS computer operator. Liquid slip is issued to the
salesman on which the quantity, size and brands are specified. Vehicle is
loaded in the DP godown monitored cleared by stock incharge.
• Issued on FIFO (first in, first out) basis via validity of production dates. It
ensures that product is not expired, bad taste and visually unattractive.
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• Shift wise record of daily transactions is maintained.
• These are physical stock taking for physical but not for expiry dates.
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HANDLING & PACKAGING
Forklifts are used for transferring FG shells I cases from production area to
shipping hall or not delivery ducks to ensure product do no get damaged.
All Pepsi Cola carbonated soft drinks are packed in glass/PET bottles or post
mix tanks. This is called primary packaging. Filled glass/PET bottles are further
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secured by means of plastic or wooden shells/cases called secondary packaging.
Out Liquid
Empty
Empty send to SHAMIM & CO. on MIS issues liquid slip
New and Others Empty Slips.
The amount is subtracted from Liquid is loaded on the sales
copy vehicle according to liquid
Slip
Minus the amount from Liquid
Received and Issue form
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• Transfer of cash to friends agency account
• Maintenance of stock FIFO system
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• Worked on the seat of shift incharge.
• Environmental conditions are not good. Shipping staff and labour has to
work whole day in sales vehicles and forklift's. It causes health problem for
them liquid is supplied to depots based on daily sales and current stock
position. But many times they receive unneeded liquid.
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• No financial or statistical technique is used to calculate what is appropriate
stock level in a depot, when liquid should be sent and in what quantity.
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• Pepsi town is a big land area. Where a huge stock of empty is lying.
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• Breakage, rejected empty, TIN packs and other useless material must be
sale out by getting maximum price.
• Shamim & Co. announces two best employee of the month awards each
month from production and service sector. Production sector includes
production and quality control department while service sector includes
shipping, Admin, procurement & stress, MIS, cash and accounts
department. This award is won by an empty incharge of shipping from
MIS department of Shamim & Co. is playing a vital role in this regard. The
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department is working with a small setup & satisfying the information
requirements the organization with a smart staff and developed setup, the
department has eliminated much work load, paper work and saved a lot
previous time.
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The software system have two basic parts and these are developed in some
programming language. The post important part of any information system
is database. The database is the basic structure of data and defines how data
is organized, stored and retired from memory. The database operates at the
back end. At the front end, data is entered and retired through input screens.
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The MIS department is currently performing its day-to-day operations as
well as involved in software development. It also provide technical
assistance and training to other departments. At the time oracle 8.0 is in
execution. All computer in the department are networked by LAN (local
area network) the department has licensed software working.
Sales system
Cash system
Shipping system
Post mix system
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The basic input of this system is empties slip, liquid out slip, full in slip by
order sips. empty short slip, the reports of the system are
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load report ( dealer wise, depot wise )
settlement sheet ( dealer wise, depot wise )
Shipping shift summary .
Daily liquid out report.
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Pending report.
Agent wise load out summary.
Agent wise sales summary .
District wise sales summary .
Computerize sales statements
(monthly, semi annually, annually)
Cash report
Shamim & Co. is a regular tax payer of govt. of Pakistan. it pays excise and
sales tax according to its production and sales. the system is developed to
keep complete record of the tax transactions. stock of the product at the RG
I is maintained after production. the stock is moved to DP (duty paid)
godown after its clearance by excise inspector and payment of 15 % tax. at
RG I, closing stock of a day is opening RG I stock plus day's production
and minus tax clearance.
Payroll System:
There is separate payroll system for Shamim & Co. and Friend's Agency.
The output of the system is pay slips and payroll report at the end of month.
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Payroll report incorporates.
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the abovementioned departments. In addition, customized reports can be
obtained as required. The system is implemented at each depot as well.
CASH DEPARTMENT
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Cash department does cash handling (collection and payment). The major
part of cash collection is from dealers and salesman based on their
settlement sheet and daily sales report. Cash payment is done on the
vouchers issued by accounts department. Payments include employee's pay,
bills, allowances, procurement expenditures and day to day general
expenses.
AUTO WORKSHOP
The function of auto workshop department is top provide repair,
overhauling and maintenance services to the vehicles used in the
organization. These vehicles include Mazda, Toyota, Hino, Suzuki, Honda
and forklifts (Toyota, TCM) of different models and capacity. Total number
of vehicles served by the auto workshop is about 140. the responsibility of
auto workshop is to keep PEPSI fleet efficient, deendable and energetic.
Different departments particularly shipping and sales use these vehicles.
Vehicles outside # are mostly used by sales staff. In case of some major
work, it comes to workshop however if there is nominal repair work, they
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Monthly performance report of auto workshop:
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work Complete Fabricating work from Oil changing & repair work
overhauling Denting local market changing repair Greasing
Painting work work
• Work order indicating defect, repair work and remarks and after repair a
certificate showing that maintenance work is alright signed by the driver of
the vehicle.
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• Work order for market.
• Log book in each vehicle for each driver.
• Gate pass
• Store requisitions for transport spare parts and stationary. A small section
of store working under main store is maintained in the workshop
WORKING PROCEDURE
For any repair work, the driver must fill a work order signed by his respective
in charge. The work order is also necessary for cars and motorcycles.
The work order is refereed to record keeper who hands over to supervisor after
entering in register and reports to work shop manager in case of accident.
In case of some work required from market, supervisor himself goes with the
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vehicle or assigns one mechanic to monitor market work.
The driver signs the work order certificate after his complete satisfaction.
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OBSERVATION / SUGGESTIONS
Standards are set for mobile oil change, air filter change,
mileage etc. of different vehicles. The data needs to be maintained and
regularly evaluated.
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Specialized workers are needed to work on different parts of
vehicle e.g. spring load, radiator etc. as well as for petrol and desile vehicles.
Specialist mechanics demand higher pay. For this reason, department has to get
services from market.
SUPPLIER SELECTION
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department. Selection criteria differs from one category to another
category .
CRITICAL
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These items are very much sensitive and one has to be cautious about
making final decision about suppliers, in SHAMIM & CO. following
factors are taken into consideration while selecting supplier for these items
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•PCI approved suppliers
•Site audit
•Self assessment through questionnaire
•Product inspection and testing
•Compliance by any appropriate standards or
specifications
TECHNICAL/GENERAL ITEMS
While selecting a supplier for technical and general item any of the
following method is used.
based on their product quality. The procedure is that product samples are tested
in the laboratory and then after complete satisfaction of quality, supplier is
approved and sends his quotation.
Shamim & Co. has approved supplier list for following materials
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Glass bottles Crown corks Closures Packing cartons Pet bottles
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Packing cartons Sodium chloride
Pet bottles Lime
• Chemical properties
• Physical properties
• Packaging
• Sampling details
• Storage & handling
Some time purchase quantity decisions are made on the space available in the
store. After the material is purchased and Gate checking, it is again send to quality
laboratory by FIFO rule.
GENERAL PURCHASES
For the general purchases like stationary, technical parts, supplies etc issue
requisition slip (in case required material is in the store) or purchase
requisition slip ( in case required material is not in the store stock) signed
by concerned department head is send to Procurement Manager and
Purchasers of procurement department make the purchase.
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•
•
•
Mechanical
General
Stationary
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• General Electric
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• Ledger (posting on ledger)
• Store return voucher
• Internal gate pass
• Temporary gate pass
• Permanent gate pass
• Daily activity report
• Daily stock taking report
• TOT report
ACCOUNTS DEPARTMENT
The job of the department is to maintain books of accounts. There are following
main activities of accounts.
EXCISE DEPARTMENT
Shamim & Co is a regular taxpayer of excise and sales tax to govt. the
procedure is that production per hour of each plant is counted and noted in
cases and bottles. The excise duty and sales tax is calculated as per govt.
rate. The liquid stock of RG 1 is moved to DP godown after clearance and
daily deposit of sales tax. The company and all its dealers pay sales tax at
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the end of each month. Sales tax and excise duty is also paid on some raw
material as sugar, crown caps, concentrate etc. the department maintains
following documents
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•
•
•
RG 1 register
RG2 register
AR 1 form
• Daily production report (shift bases)
• ACL register
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The department is concerned with collector rate of central excise and sales
tax, production department, shipping department and MIS department.
Dispensing market varies from country to in size and types of out let. The
title ON Premise identifies any out left where product can be purchased
with or without food for consumption on or near the premises.
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The On-Premise market is one of the most markets in a Bottlers franchise.
Its importance in the continued growth and success of the Bottlers business
cannot be under estimated in its effects on:
o
o
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Consumer awareness
o Consumer sampling
o Product Visibility
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o Volume growth
o Chilled product sales
o Impact on take home sales
Post Mix machine is U.S. made and it has following main components.
o Water bank
o Congesture
o Cooling system
o Walves
o Syrup tank(s)
o CO2 tank
Post Mix Department installs machine at any suitable place with the cash
security of Rs, 30000. Along with Post Mix machine, they also provide
counter, water tank, water filter(s), disposable glasses, disposable plates,
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cool product in no time. The water used in fountain fresh machines is
acquired from locally available source, It is stored in water tank and filtered
once, twice or thrice depending on the purity of the water. With one syrup
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tank of PEPSI, TEAM and 7-Up, equivalent of 19 cases standard bottle is
obtained, While syrup cylinder of MIRINDA has the capacity of providing
equivalent of 16 cases standard product.
Until now total 118 has been installed in different districts and approx. 114
are working while others needs repair. There is further demand of about
100 machine
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POST-MIX SYSTEM
The syrup mixed with water and CO2 at the customer account. POST-MIX
containers can be bifurcated in Transfer Tank.
The Post Mix system differs slightly in principle from the PRE-mix system.
The difference is related to the way the finished beverage is produced for
sale to the consumer. The bottle fill the beverage syrup into stainless steel
tanks at production plant and transport the tanks to retail outlets. The
operation of POST -MIX system is as follows.
Compressed CO2 Gas flows from the storage cylinder through gas a
pressure regulator where it is reduced to the working pressure of the
carbonator, then through a pressure relief valve and back flow check valve
to a juncture where the CO2 line gets divided. One segment going to
secondary regulators and the other to carbonators and the other to
carbonator tanks.
The flow of CO2 from the secondary regulators goes to the syrup
containers. Syrup flows from the containers to the refrigeration unit and
then to the dispensing valve. The CO2 gas directed to the carbonator
assembly enter a small capacity tank which contains potable water
automatically controlled to a predetermined level in addition to the tank. Its
safety valve, the carbonator assembly includes a motor driven water pump
to force the potable water into the tank against the CO2 pressure. The
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Turn on the water supply and allow the carbonator to fill completely.
Lift relief valve ring until water flows from relief valve openings. Relief’s
ring and allow closing.
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Turn on CO2 gas and adjust regulator to 75 psi.
Activate a valve until pump starts. Close valve and allow pump to cycle.
Dispense drinks from each valve to purge and remaining sanitizer from the
syrup lines and establish quality carbonation in the carbonator .
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TRANSFER TANKS
The most common packaging from for both PRE-MIX and Post Mix
product is the Stainless Steel Tank. This tank comes as either a single entry
or double entry system. Each has specific advantages and disadvantages.
Both PRE-MIX and Post Mix product can be stored in either single or
double entry system
Double entry tanks have separate gas inlet and liquid outlet plugs. The
standard double entry tank size can hold 18 Liters of product. However the
double entry tanks are also available in other sizes.
The single entry tank is generally made of stainless steel and can be
obtained in different sizes. This tank is not commonly used for dispensing
soft drinks. To date its use has been within the brewing industry.
One question the reader will need to ask is the ratio between tanks and
cylinders per units purchased. The answer is dependent on these factors:
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Frequency of calls.
Control of stock levels.
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EXAMPLE OF POST MIX TANK REQUIREMENT
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TANKS
• Outlet Machine Stock 4 Tanks
• Outlet Reserve Stock 1 Tanks
• Factory Shipping Stock 3 Tanks
• Factory Production Filling 2 Tanks
Total: -10 Tanks
CO2 CYLINDERS
Outlet Machine Stock 1 Cylinder
Outlet Reserve Stock 1 Cylinder
Factory Stock 1 Cylinder
Total: - 3 Cylinders
SALES
• Security Deposit Receipt.
• Legal Agreement papers.
• Installation site sheet
• Installation & pick up order .
• Quality control functions.
SERVICE
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•
Preventive maintenance card.
Wastage Record.
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• Complaints log.
• Spares usage Record
• Quality control & sanitation.
DELIVERY
• Delivery Card.
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• Sales History Card Account Cash Record
WORKSHOP
• Daily sale & stock report
• Issue / Collection slip.
• Future needs Technical Development.
• Repair Section
• Store Section
OUTLET SELECTION
Dispensing equipment is very expensive and therefore every care must be
taken to ensure that the outlet have proper annual yield. As with any
installation of Post-Mix equipment, it is important to first undertake a site
survey. Until this is done it is not possible to ascertain the equipment
required. The points that need to be checked are:
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2. Type of unit required & space for product tanks
3. Construction, alteration and other details.
4. Water and electrical requirements.
5. General Details and deliveries.
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7.
Proper space for air circulation.
Dealer and staff are trained or not.
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Different routes are planned in various areas. With every route/vehicle,
there is a technician, driver and helper. The purpose of the route is to
replace empty syrup tank, cleaning and maintenance work of machine and
resolve any complaint. Special routes are arranged in case of urgent
complaint or immediate syrup tank requirement. The technician also
performs the job of salesman. Cylinders are delivered on cash and it is
responsibility of technician to collect cash and later submit it at cash office.
During the route, they have to arrange their meal for which no allowance is
given. Technician s get a commission of Rs. 2.50 per cylinder sale.
Currently sales
Officer is incharge of the post mix department and performs his job as well.
SUGGESTIONS
Fountain fresh department is an area which requires much more attention.
Though currently it is working with its capacity and covering five districts
with a smart staff. The organization should take it as a SBU and concentrate
on it because of
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•
•
•
High expected growth
PEPSI has currently no competition in this area
No problem of empty
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• It does not requires a huge plant setup and works with simple setup and
very low overhead
• No chance of fake bottle
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PROBLEMS
There is job dissatisfaction and very low motivation on the staff due to:
• Low salary
• Daily allowance has been eliminated
• Overtime is rewarded in terms of holidays not in monetary terms. According to
technicians, they normally do not get a chance of making allowed vacations
due to workload so the extra holidays are of no use for them.
• Higher positions are filled from outside, people within the department should
be promoted to the chief technician and sales supervisor level.
• Technicians perform the responsibility of salesman for which they get just Rs.
2.50 per cylinder that is very low.
• Computer is present in the S.O. office but no one in the department is really
qualified to get use of it.
• Sales targets are set without the consent of staff.
• Post Mix staff has no knowledge of ISO.
• RAW MATERIAL
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Raw material like syrup, sugar, filter papers, CO2, Ammonia, Empty bottles,
packaging material, Bottle cases, Chlorine, Corks and Crowns etc.
• WORK IN PROCESS
Work in process will contain all those bottles which are under the process of the
filling and packaging. At the end of shift work in process inventory of is
transferred to other shift.
• END PRODUCTS
End products are in the form of cases containing 24 bottles. End product
inventory is managed in two ways
1. Production department after production stores their finished goods
in their godown which is located in the premises of factory.
2. Sales department transfer their needed inventory in their godown
and issue required amount of cases to distributors.
• SPARE PARTS
Spare parts inventory will contain items like Gear boxes, Belts or conveyers,
Motors and Switch boards etc.
TYPE OF INVENTORY
They are maintaining anticipation inventory but at very minimal level as products are
not stored for a long-time period.
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INVENTORY CONTROL SYSTEM
Pepsi Cola Multan follows periodic review system for inventory management. So
inventory is reviewed normally on weekly basis and some times after. Some time daily
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reviews are also made. Each month the store prepares monthly consumption report.
REORDER POINT
Reorder point is calculated on two bases. Firstly they calculate the daily requirement of
the raw material and then they check the level in the stock room. For some items they
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maintain the maximum and minimum level when the level of raw material touches the
minimum point they order the raw material. For two main items reorder points are as
following
• Sugar is reordered when it is left for only 100-batched or 1000 Kg
• Concentrate is ordered for 2 to 3 times a year
LEVEL OF INVENTORY
Pepsi Multan maintains a low level of inventory because they face pressure for low level
inventory due to following factors
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Supply-chain management aims at synchronization of a firm’s activities/ functions
and those of its suppliers to match the flow of materials, service and information
with customer demand.
• Distributors
• Retailers
• Customers
Customer Retailer
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Required
Item
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SUPPLIER SELECTION
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The first priority is given to quality while selecting suppliers, by the Company. Price is
considered after quality & delivery time at last.
DISTRIBUTOR SELECTION
Distributors are selected on the following basis
• Ability to meet the given target
• Geographical area he is covering
RETAILER SELECTION
Retailer is selected on the following basis
• Location of the shop
• Look of the shop
• His know how with the customers
• His ability to meet the sales target
DIRECT SALES
Rural areas where there are no distributors, Pepsi Cola Multan goes for direct sales to
retailers. They offer the same price per unit as offered to distributors. In case of
distributors, for transportation truck are also available to transfer creates from company
godowns to distributor godowns.
SATELLITE WAREHOUSE
They are planning for satellite warehouses which will enable them to have flexible
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timings for loading and unloading of trucks and storage of products closer to the
customers.
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CAPACITY
Capacity is the max rate of output for a facility. The facility can be a workstation or an
entire organization.
Pepsi Cola Multan measures its capacity in term of number of cases produced per day per
plant. All the cases including standard, non returnable, Liter and PET.
CAPACITY MEASUREMENTS
Effective capacity =
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• Plant# 1. Standard 22000 Cases/Day.
• Plant# 2. Standard 20000 Cases & 16000 Packets PET/Day.
• Plant# 3. Liter 10000 Cases Nr 12000 Packets & Standard 13500 Cases /Day.
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•
•
Plant# 4. Standard 13500 Cases /Day.
Plant# 5. (New Addition) 15000 packets. pet/day
• Total capacity (Standard converted) 100000 Cases/Day.
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2006 (Projected With The Addition Of SIMONAZI Plant)
• Plant#1. 22000 Cases Standard.
• Plant#2. 20000 Cases Std. 16000 Packets Pet.
• Plant#3. 18000 Cases Lit. 20000 Packets Pet
• 16000 Packets Nr 16500 Cases Standard (New addition of 80 filler and
Rinser).
• Plant#4. Standard 13500 Cases/day.
• Plant#5. 15000 Packets PET/day.
• Plant#6. 100 valves SIMONAZZI complete line 57000 Cases Std/day.
• Total capacity (std. Converted) 165000 Cases/day.
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LOCATION
Pepsi Cola Multan is situated near MDA (Multan Development Authority), on the road
leading to Nishtar Hospital i.e. District Jail road.
SELECTION OF LOCATION
The major factor was proximity to markets in selection of location.
LOCATION ANALYSIS
The location described above is favorable for Pepsi Cola Multan due to following factors
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Community attitude is positive towards Pepsi Cola. Working conditions are quite
good for employees i.e. No harm is there for their health & psychology.
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PROBLEMS OF CURRENT LOCATION
Factory is located in the residential areas with no proper parking arrangements for its
vehicles. Loading and unloading of trucks can take place only in the night because of the
law permitting trucks to enter into urban areas only in the night. So they can only load
and unload trucks between 10 PM to 6 AM.
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SOLUTION
In order to overcome this problem they are planning for satellite warehouses which will
enable PEPSI to have flexible timings for loading and unloading of trucks and storage of
products closer to the customers.
LAYOUTS
Layout is physical arrangement of economic activity centers within a facility. An
economic activity centre can be anything that consumes space. In other works layout is
physical arrangement of people, equipment or activities.
APPLICATION IN PEPSI COLA MULTAN
Pepsi Cola Multan works with product layout type, as resources are arranged around the
product’s route. Computer application is also there in making layouts.
• PLANT LAYOUT
A single manufacturing plant consists of following different parts
1. Filler
2. Chiller
3. Washer
4. Crown fixer
5. Conveyer
All these parts should be arranged in a proper sequence to reduce the production
time. At first washed bottles are transferred to filler through the conveyer belt and
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both filler and chiller are located at the same place in order to keep the filling
liquid cool at the time of filling.
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SOME MAIN LAYOUTS IN PEPSI COLA MULTAN
• Layouts of Equipment
• Manufacturing layout
• Office layout
• Retail layout
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• Distribution & warehouse layouts
R E S ID E N T IA L A R E A
S H A M IM & C O .( P V T .) L T D .
M U L TA N .
2006
T U R B IN E
N O .2
S IT E F O R
S IM O N A Z Z I 1 0 0
R E S ID E N T IA L B O IL E R S
A R E A T U R B IN E
P E T N O .3
L IN E
S Y R U P
R O O M
E X TN .
A M M O N IA
C O M PR ES SO R S
M A IN R O A D T U R B IN E
N O .1
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FORECASTING
In Pepsi Cola Multan, the base for forecasting is “precious data about sales”, which is
provided by sales department. After analyzing the data, the forecast is made. Executive
Opinion is also used in forecasting i.e. Opinions, experience & technical knowledge of
related managers. So forecasting in Pepsi Cola Multan is a blend of analysis of data &
executive opinion.
PATTERNS OF DEMAND
Demand for products of Pepsi Cola Multan follows Seasonal Pattern i.e. repeatable
pattern of increases or decreases in demand, depending on the time of season.
• EXTERNAL FACTORS
Now-a-days, the biggest factor affecting demand of products of Pepsi Cola
Multan is the competitor’s action, the action/policies of Coca Cola Company e.g.
There effective advertising companies etc. Govt.’s rule & regulations about taxes
& prices also influence the demand by affecting the price of products.
• INTERNAL FACTORS
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Some internal factors influencing the demand are given below
1. Price of product
2. Proper advertisement
UNIT OF FORECASTING
In Pepsi Cola Multan forecast is made in term of cases where one crate = 24 bottles
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DESIGN OF FORECASTING SYSTEM
In Pepsi Cola Multan forecast in made about all four products separately
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AGGREGATE PLANNING
Aggregate plan is a statement of production rates, work-force levels and inventory
holdings on estimates of customer requirements & capacity limitations. Since Pepsi Cola
Multan is a manufacturing co., so it’s aggregate plan is also called production plan.
UNIT OF AGGREGATION
Aggregate plan is expressed in terms of cases. Which are also called SKU (stock keeping
units)
WORK-FORCE UTILIZATION
Work force utilization takes place in three forms
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• Overtime
Normally there is not the tendency of over-time in Pepsi Cola Multan as
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•
management thinks that productivity of workers is reduced during over-time.
Under Time
The permanent workers are also paid, the under time but the workers on contract-
basis are paid on the basis of working hours so under time is not paid to them.
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• Vacation schedule
Pepsi Cola Multan gives incentives for vacations in slack-season. Vacations are
given on the basis of labor-laws in Pakistan. Company does not adopt aggressive
alternatives, as co has not complementary products creative pricing
1- Case of bottles
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End item = 1-case of bottle
Purchased items = raw material cases
Intermediate items = Bottles, Syrup
Sub-assemblies = Bottles, Syrup
2) Inventory Records
In inventory records, Pepsi Cola Multan, uses to order after variable periods of time and
of variable quantities, depending upon:
Item with highs load time is “Sugar”
Item with lowest load time is “ Co2
3) Master product Schedule (MPS)
MPS, details about production of end times items within specified period of time.
In Pepsi Cola Multan, MPSs are prepared normally on weekly basis.
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QUALITY CONTROL
It is quite clear that emphasis on the high quality is only thing to sustain in the market.
Quality is important due to following reasons:
Product liability
International liability
Cost and market share
Regular sample picked by the representative of PCI in the factory and sent to America for
the analysis regarding to quality. These standards are:
Green Excellent
Yellow Good
Orange Satisfactory
Red Warning
Machinery maintenance is also checked. At this time Pepsi achieve the Green for the
standard.
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Following tests are made for the quality
SUGAR TEST
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WATER TREAT MENT TESTING
SYRUP TESTING
FINISHED PRODUCT TESTING
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WATER TREATMENT
Water is the main ingredient of the beverage product. Raw water is treated
so as to make it free of all impurities and use in the process.
WATER TESTS
The purpose of "2P-M" or " A " alkalinity test is to verify that water
treatment plant is operating correctly and final treated water for processing
conforms to standards. High alkalinity leads to undesirable effects. The
frequency of the test is after every half-hullr.
Chlorine "residual" is the amount of chlorine that remains after the natural
chlorine demand of the water has been satisfied. Two fold purpose of the
test is:
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1. Where chlorine is necessary , to demonstrate that the level of chlorine
present is adequate for water oxidation & disinfections purposes &
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2. Where chlorine is prohibited, to confirm that it is absent.
The frequency of test for water treatment is after an hour and for washer
final rinse is once in a shift.
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Taste, Odor And Appearance: Treated Water:
The hardness in the water will affect the beverage quality as well as
produce scale in washers, boilers etc. water hardness is gradual decrease in
the tendency of water to form foam due to presence of impurities like
chlorides, soleplates etc.
SUGGESTIONS
Fountain fresh department is an area which requires much more attention.
Though currently it is working with its capacity and covering five districts with a
smart staff. The organization should take it as a SBU and concentrate on it because
of
DARE FOR
PROBLEMS
There is job dissatisfaction and very low motivation on the staff due to:
•
•
MORE!
Low salary
Daily allowance has been eliminated
• Overtime is rewarded in terms of holidays not in monetary terms. According to
technicians, they normally do not get a chance of making allowed vacations due to
workload so the extra holidays are of no use for them.
• Higher positions are filled from outside, people within the department should be
103
promoted to the chief technician and sales supervisor level.
• Technicians perform the responsibility of salesman for which they get just Rs. 2.50
per cylinder that is very low.
• Computer is present in the S.O. office but no one in the department is really qualified
to get use of it.
• Sales targets are set without the consent of staff.
• Post Mix staff has no knowledge of ISO.
• The key issue is proper and compatible combination of technician, helper and
driver . these people should work as a team in the field and must possess the
characteristics that make a team successful i.e. technical competence, trust ----.
• The group should move with full preparation i.e. all required slips, necessary
tools, tested equipment.
• The vehicles must be fit and available on time. It is in their best interest and make
their job safe, convenient and speedy.
• The new machines are not available for installation. Used machines and counters
make shopkeepers unhappy.
• The behavior of the staff with shopkeepers is generally good. The outlet owners
have the Post Mix office number complaints and the response is efficient.
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This is a typical Pakistani family business where the owner is making the
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decisions all the time.
104
Proper system of reporting
There was no proper system of communication as who is to report
to whom and who is responsible of what. If a simple technical worker
encounters a problem in the plant or any part of the equipment is broken,
he at once rushes to the production manager as what to do. This is clear
that they have no proper reporting system as to deal with the broken part
of the equipment is not the job of the production manager.
Employee training
We see that when the new production manager was hired, he, for
implementing new techniques, gave lectures to the employees and also
recruited new ones. So there is lack of training of the employees in the
organization.
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WAY”. These are the guidelines, which must be passed on the employees
as how the work is to be done. What happened in the past is that the
managers kept hiding these manuals from the employees and placed them
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under lock and key. The current production manager has taken an
important step as he is preparing notes from these manuals and passing
them on to the employees. But still it is not enough. Because the plants of
the factory work in mistake at any process can cause a serious problem
for the other plant, which may lead to a severe mishap for the whole
105
production. So in this way the employee training has got the significant
importance.
For corrective action following steps lead to success for the organization:
Performance appraisal
The performance appraisal system in a manufacturing organization
is a very tricky job. For example evaluating the performance of one shift
that has done the maintenance of the plant should be treated as separate
from the performance of the employees in the next shift that has got higher
production. The reason is that the second shift might be having less
efficiency than the previous one and the credit goes to the second shift.
The previous shift workers should be rewarded more than the next
shift because they had done the maintenance and kept the plant in working
condition. The second shift workers just have capitalized on the work of
the previous shift workers. That’s why the performance evaluation is very
important as it directly deals with the motivation of the employees. If the
employees feel that they have not been rewarded according to their jobs,
they may show little or no involvement in their tasks and may indulge in
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activities that often hinders the efficiency of the production unit.
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• Making groups
• Making false reporting
• Try to create obstacles for others
For this reason the company needs specific performance standards for
specific tasks.
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Employee Motivation
The company is also lacking in this area. Getting rewards especially when
it is in the form of money or cash motivates the employees.
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Thanks
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