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8/11/2019 Internship Report Uni Liver Report Rough

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Internship Report: UniLever Pakistan

What UniLever is?

Unilever is dedicated to meeting the everyday needs of people everywhere. Around the world UniLever foods and home andpersonal care brands are chosen by many millions of individual consumers each day. Earning their trust, anticipating theiraspirations and meeting their daily needs are the tasks of UniLever local companies. They bring to the service of their consumersthe best in brands and both UniLevers international and local epertise.!or more than "# years Unilever has been providing consumers with $uality products and services. UniLever has a portfolio ofglobal, regional and local brands. %ome, such as Bertolli,Dove,Hellmanns,Lipton,Lux,Magnum, Omo and Vaseline, are populararound the world. &thers are the first choice for consumers in particular countries. As traditional structures and lifestyles aroundthe world are being rapidly transformed, Unilever continues to respond to consumers present needs and, at the same time, toanticipate their future ones. &ur strength lies in the deep understanding we have of local culture and markets. Unilevers strategyis to focus research and development and marketing on our top performing brands, that is, those that are most in demand fromconsumers. Through our etensive knowledge of trends identified today, we will continue to develop our brands to meet the needsof our consumers tomorrow., feel and smell great.UniLever products are at home everywhere' favorites with consumers throughoutthe world, from the emerging markets of Asia and Latin America to thedeveloped economies of (estern Europe and )orth America.UniLever meets the needs of consumers around the world, in both new andestablished markets. *onsumers vary from country to country in theirpreferences and habits and UniLever adapt many of its brands to suit local tastes.

!or eample, among UniLevers many teas, it produces around +# separatebrands of black tea specifically tailored for consumption in over +# differentcountries and UniLever is constantly sharpening the flavors to suit all its localmarkets. n some societies, consumers have traditionally washed up by spongingash, sand or detergent onto their dishes, before rinsing. Learning from theseestablished practices, we developed our Vim dish wash bar, to bring improvedcleaning to eisting washing routines. %hopping habits also vary and theavailability of our brands is a key concern of local managers. UniLever adapt thedistribution of its brands to suit local realities. n Europe, customers benefit fromswifter, easier dispatch through online ordering of fro-en foods. (hile, inTan-ania, UniLever has piloted bicycle delivery of products to villagesinaccessible to motor transport. uilding on a presence that in places stretchesback nearly a century, it keeps closely in tune with local consumers. UniLever is,in every sense, a multi/local multinational.Unilevers research and development teams help to anticipate and meetconsumer needs. UniLevers research and development epertise allows to anticipate the evolving needs of consumers and tocreate the innovations to meet them. nternet technology is improving the way UniLever share best practice and innovationaround the world.

UniLevers 012 activity is focused on si ma3or laboratories and a network of innovation centers around the world. 0ecentsuccesses have demonstrated UniLevers practical ability to respond to consumers and bring innovations to the marketplace. Theyinclude laundry tablets, which it has rolled out in more than 4# countries5 Lipton Cold Brew tea bags, which take away the need toboil water when making ice tea5 and its cholesterol/owering spreads, which have been widely rolled out under the TakeControl,Becel andlorabrands. UniLever continues to look for new innovation opportunities. !or instance, UniLever researchinto the human genome means they can now decode the make/up of skin. This can reveal such secrets as an individuals tendencyfor dryness or their skin protein mi. %uch knowledge forms the foundation for new, more personal products.UniLevers global T system helps them to share information around the business and to use their scale and scope to meetconsumer needs and reduce their costs. UniLever drives to provide better value for customers and consumers, they have alwaysvalued the sharing of information across product sectors and geographical locations. T has boosted this knowledge/sharingculture, allowing us to make the most of the vast amount of nformation held by our people around the world. UniLeverscomputer networks provide over 6#,### employees worldwide with common tools for sharing information 7allowing them to dealwith millions of electronic messages every working day. They also have a Unilever ntranet, which helps them to manageinnovation and best practice around the world. 8lobal teams, for eample, pool information, marketing success stories andknowledge via dedicated sites, making this knowledge available to UniLevers people locally, wherever they are.UniLever is committed to doing business in a responsible and sustainable way. n partnership with organi-ations around theworld, UniLever works to reduce their impact on the environment and to act as a responsible corporate citi-en.Unilever believes in sustainable development 7 meeting the needs of the present without compromising resources for future

generations. This commitment begins and ends with their consumers. UniLever believes that by constantly evolving to meet theirchanging needs, they can continue to develop their business in both a profitable and an environmentally sustainable way. nworking towards sustainable development, they focus on three areas that are directly relevant to their business. These are fishconservation, clean water stewardship and sustainable agriculture. An eample of their work in the area of fish conservation is the!ish %ustainability nitiative, which aims to meet their ob3ective of sourcing all supplies from sustainable fisheries by+##9.ilegro, an Alaskan salmon/based dish, was our first product to come from a sustainable fishery, as certified by the :arine%tewardship *ouncil. n clean water stewardship, as in other areas, UniLever 3oins with partners to achieve maimum impact. !oreample, through their sponsorship of the 8lobal )ature !unds Living Lakes initiative, they work with a network of private andgovernment organi-ations to help communities better manage their local lakes and wetlands. n sustainable agriculture, UniLeverhas set up of an epert eternal advisory board. ts task is to advise and inform its business and suppliers on new sustainabilitystandards.Unilevers commitment to corporate social responsibility is an integral part of their operating tradition. t is outlined in their*orporate ;urpose and in their *ode of usiness ;rinciples. t finds practical epression in the worldwide standards they have set
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their selves' to ensure the health and safety of Unilever people at work, to secure the $uality and safety of products and tominimi-e the environmental impact of their operations. UniLever aims to be as professional in their management of its socialresponsibilities as they are in any other area of business. UniLever recogni-e the need to be eplicit about what their socialcommitment means in practice' to articulate their policies, and to demonstrate its performance. UniLever reports on theirapproach and progress in its %ocial 0eview. Unilever has a tradition of support for the local community wherever it operates, inparticular in the areas of education, environment and health. !or eample, in ndia access to oral care is limited, with few dentistsper head of population. n +###, UniLevers oral health and hygiene education programme brought advice and care to over +.9million schoolchildren. n *hina, Unilever has sponsored 69#s, they produced the firstever television commercial in the U?. As the +>st century began, they screened the U?s first interactive T@ commercials,marketing their Colmans and Oliviobrands.

Lever Brothers Pakistan Limited

Lever rothers ;akistan Limited is largest fast moving consumer ;roducts *ompany in ;akistan. Lever rothers ;akistan Limitedis a part of UniLever/ a global company. Lever rothers ;akistan Limited is producing more than 9# brands in ;akistan.

Mission Statements

>' (e are the leading consumer product company in ;akistan, a multinational with deep root in country.+' (e attract and develop high talented people who are ecited, empowered and committed to deliver double digit growth.4' (e serve every day needs of all consumers every where for food, hygiene and beauty through brands products and service thatdeliver the best $uality and value.' (e strive to remain and every simple and enterprising business.9' (e use our superior consumer understanding to products breakthrough innovation in brand and channel.B' &ur brands capture the hearts of consumer through outstanding communication."' Through managing a responsive supply chain we maimi-e value from supplier to customer.C' (e are eemplary through our commitment to business ethics, safety, health, environment and involvement in the community

Statement of Chairman& Chief Executive of Lever Brothers Pakistan Limited

D am $uite convinced that +##+ is poised to be a passionate year for us, which is why we should reflect on some ecitingpossibilities it has to offer'

;ower of teamwork, based on truth and trust.

;assionate pursuit to grow and win.

!un environment at work, inspired by enterprise culture.

rands which rank highest in consumers minds and hearts.

%ystem that transform the shape of our business.

The challenge for us is to liberate our energies to help grow our business, and to lead and deliver the results that we havecommitted ourselves to. would encourage everyone to believe in and grasp the Dart of possibility and focus on the :ust (ins forour business.
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Product Lines of UniLever Pakistan Limited


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;E0%&)AL (A%=

TOILET SOAPS

Lifebuoy Fcarbolic soapGLifebuoy 8old F+ varietiesGLu F varietiesG0eona F4 varietiesG

Liril F+ varietiesGree-e!A0* A)2 =&:E *A0E

FABRIC AS!Ultra %urf%urf micro%urf Ecel;ower %urf%unlight (ashing ;owder 1 %oap(heel

!O"E CARE@im 2ish (asherH%courers@im ar

@im ;owder

;E0%&)AL ;0&2U*T%

!AIR CARE%unsilk %hampoo F varietiesGLifebuoy %hampoo=armony %oap

S#I$ CARE

!air 1 Lovely skin cream and lotion;onds skin cream;onds talc

%E$TAL CARE

*lose/up Tooth paste;epsodent Tooth ;aste&L A)2 2A0I A%E2 !&&2

BA$ASPATI

2alda

COO#I$ OIL

2alda *ooking &il F%oya eanG2alda %unflower oil;lanta

"ARARI$Elue and

I$%'STRIAL FATSA whole range of products for the bakery 1 oils for the industry.TEA

LEAF TEAIellow LabelIellow label 2anedar0ichbruTop %tar


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Taa-a Leaf%upreme

%'ST TEA;earl 2ust0uby 2ustA>

"I(T'RE TEATaa-a*E *0EA:*ornetto F4 varietiesG!east F+ varietiesG!east %ticklessTop Ten%tar *up F varietiesG*allipo%plit!ruiti;eddle ;op F4 varietiesG4/2%olo F4 varietiesG;olka *up;anda2racula!amily ;acks

PROU!"#O$ U$#"S

2ifferent factories of L;L are operating in different areas of ;akistan. rief information about theses units is given below'RA!I")AR #!A$ *RF+

The largest and the oldest of L;L is situated in 0ahim Iar ?han. asically at this factory personal products, soaps, glycerin anddish wash bar are manufactured.#ARAC!I TEA FACTOR) *#F+

This factory was established in >69# and it is situated in west (harf area. !ormerly it was owned and managed by Lipton ;akistanLtd. n the last 4 years many modifications are made here. And the factory has epanded considerably. n this factory only tea isproduced and packaged.

#ARAC!I E%IBLE FACTOR)

t is situated on =ub 0iver in %..T.E. A1 &il ndustries established the factory in >69C and the production of the vegetable oilbegan in >6B+. n >6B9 Lever ac$uired the factory. anaspati, cooking oil and margarine are produced here and distributed all overthe country.

ICE CREA" FACTOR)

This is recently established on :ultan 0oad in district ?asur. The plant was commissioned in >66 having the most modern andlatest machines installed. (alls ce cream is being manufactured here. L;L, when ac$uired the ;olka, also purchased its twofactories, one in Lahore and other in ?arachi.

BEST FOO%S FAISALABA%

0ecently L;L has ac$uired 0afhan :ai-e ;roducts from est !oods nternational.

TEA PROCESSI$ PLA$T *"A$SE!RA+

The new Lever lack Tea ;rocessing ;lant has been set up at 2hodial, >+ km north of :ansehra on the main ?arakoram =ighwayon +.9 acres of land with the ;rocessing ;lant built/in area of >>,C## s$. ft. The plant is epected to process 9# kg per hour orapproimately a ton of made tea a day.The plant has cost 0s. >> million whereas 0s. >+ million has been spent on the building and infrastructure. The plant has beeninaugurated on "thof %eptember, +##>.

Lever Brothers Pakistan Limited %Rahim &ar 'han (actor)*

Lever rothers ;akistan Limited F0ahim Iar ?han !actoryG is situated at Leghari road near the main city. The factory deals inma3or three types of products, which are categories as under'


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!ersonal "as#!ersonal !roductsLaundr$ and Detergents;ersonal wash has a wide range of soaps and the main soap of Lever rothers ;akistan Limited is Life uoy, Lu, 0eona and!air1Lovely soap.;ersonal product include &ral F*lose Up tooth pasteG, =air care F%un %ilk, Life uoyG and *reams F!air1Lovely and ;ondsG.Laundry and 2etergents includes Laundry F%urf Ecel and (heelG and 2etergents F@im bar and (heel magic barG

LOCATIO$

Location is the process of determining a geographical site for a firms operation. &rgani-ations must weigh many factors whenassessing the desirability of a particular site that can be;roimity to customers;roimity to suppliersLabor costsTransportation costL;L 0ahim Iar ?han !actory is situated in the middle of the city. t was established in >6C. The main reason for choosing thislocation for the factory was'

The land for the factory was donated by the )A(A of the ahawalpur %tate.

t was the ideal location to cover the ndo/;ak border areas.

t was the central location of ;akistan so it was a convenient location from the distribution point of view.

Availability of the cotton seeds because south ;un3ab is cotton area.

8overnment ta free area

Availability of inepensive labor

PRO+#M#"& "O MR'-"SThe site of 0.I. ?han ;lant was chosen in >6C. The main reason was its central location. This location is the middle of Lahore and?arachi that were the main markets at that time. %o the company can easily cover whole market fro ?arachi to Lahore.

PRO+#M#"& "O SUPPL#-RS $ R-SOUR!-SAt that time the company was only producing oil for which cotton area was suitable. This site was suitable for processing the rawmaterial that was cotton and 0.I. ?han was main cotton area.

"+-S $ R-L -S""- !OS"t was the ta/free area. The land was gifted by the AA% family, so there was no real estate cost.

"R$SPOR""#O$ !OS"S

Transportation cost is also a ma3or determinant, which directs the location decision. Transportation cost is a ma3or factor not onlyin terms of the raw material but also in terms of raw material. As 0.I ?han is situated at the center of ;akistan, the movement offinished goods cost minimum here across ;akistan. 0.I. ?han 0ailway %tation is situated along with the factory so transportationthrough rail is very easy.

#LB#L#"& O( U"#L#"#-SThe factory is facilitated with electricity, natural gas and telephone.

/istor)Unilever

Unilever was formed in >64# when the 2utch :argarine *ompany :argarine Unie merged with ritish soap maker Leverrothers. oth companies were competing for the same raw materials, both were involved in large/scale marketing of householdproducts and both used similar distribution channels. etween them, they had operations in over # countries.:argarine Unie grew through mergers with other margarine companies in the >6+#s. Lever rothers was founded in >CC9 by

(illiam =esketh Lever. Lever established soap factories around the world. n >6>", he began to diversify into foods, ac$uiring fish,ice cream and canned foods businesses.n the Thirties, Unilever introduced improved technology to the business. The business grew and new ventures were launched inLatin America. The entrepreneurial spirit of the founders and their caring approach to their employees and their communitiesremain at the heart of UnileverJs business today.Unilever )@ and Unilever ;L* are the parent companies of what is today one of the largest consumer goods businesses in theworld. %ince >64#, the two companies have operated as one, linked by a series of agreements and shareholders that participate inthe prosperity of the whole business. UnileverJs corporate centers are London and 0otterdam

Lever Brothers Pakistan Limited %Rahim &ar 'han (actor)*The factory site was selected in >6B. The construction of the factory started in >66. !irst of all factory started the production ofthe Edible &il by establishing the Edible !ats ;lant in >69+. The factory started the production of soap n soapry unit in >69. Then
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the company epand the business by establishing the Animal !eed ;lant in >6B#. *ompanydecided to enhance the product range and establish the ;ersonal ;roduct ;lant in >6C>. )on %oap 2etergent F)%2G based onsulphonic acid, instead of conventional manufacturing of soap base on Tallow, started in >6C4. Then the company decided toepansion in soapry plant in >66>. *ompany installed sulphonation in >66+.%TE %ELE*T&) >6B*&)%T0U*T&) %TA0TE2 >66E2LE !AT% ;LA)T >69+/>66"%&A;E0I >69A):AL !EE2 ;LA)T >6B#/>6C#

;E0. ;0&2U*T% ;LA)T >6C>)%2 A0 ;LA)T >6C4%&A;E0I EK;A)%&) >66>%UL;=&)AT&) ;LA)T >66+The total area of the factory is 69 acres out of which +C F+" acres G for factory and B4F B# acresG for the Estate. 6 FC acresGarea is allocated for evaporation beds and solid waste dumping.T&TAL A0EA 69 A*0E%!A*T&0I' +" A*0E% F+C GE%TATE' B# A*0E% FB4 GE@A;&0AT&) E2% 1 %&L2 (A%TE 2U:;)8 %TE #C A*0E% F6 G

Organi0ation Structure!om1an) #nformation2Board of irectors:usharif =aiC#airman % C#ie& 'xecutive:r.0obert Moon:r.;arve- =ussan ?han:r.!atehali (.@ellani:r.rti-a =usain:r.;ervai- :ahboob :alik:r.%oomro :ohammad brahim:r.&mar =.?arim!om1an) Secretar):r.Amar )aseeruditors:essrs A.!.!erguson 1 *o%tate Life uilding )o. >/*..*hundrigar 0oad ?arachiRegistered OfficeAvari ;la-a. !atima Ninnah 0oad, ?arachi

Management ctivities in Lever Brothers Pakistan Limited

Path to 3ro4th

ntroduced in +###, path to growth is UniLevers corporate strategic agenda which aims to double the si-e of the business in sevenyears and to grow profits faster than the competition, thereby ensuring that we are the leaders in similar type companies inproviding top value to our shareholders.Six Strate,ic ThrustsThe si strategic thrusts that make up the path to growth are-. Reconnect /ith Consumery having real insights into consumer needs, preferences and future needs. This means knowing and understanding consumerslifestyles, habits and attitudes and creatively adapting brands to their changing needs.0. Brand Focus8row their leading international brands by concentrating our resources behind them while still supporting Ogolden regionalbrands and local 3ewels. nnovation will be the keystone to ensuring our brands are attuned to consumers future needs.1. Pioneer $e/ Channe2s(iden their means of Ogoing to market i.e. reaching consumers and customers. This means developing new channels such asdirect selling, home/vending, fashion outlets, travel, food service and out/of home.

3. or2d C2ass Su4425 ChainTo close the gap to global world class within three years by establishing brand synergies, superior logistics and supply chain and byestablishing a world program.6. Sim42if5Everything that they do by reducing compleity, duplication and by making the best use of .T. to provide high $uality informationonce.7. Enter4rise Cu2turey creating a culture which shapes the mindset and actions among all employees towards winning in the market/place by buildingan organi-ation fit for growth.

"PM
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Total productive maintenance is global standard of efficient production, which cuts waste, save money and make factories saferplaces to work. t gives machine operators the knowledge and confidence to investigate and eliminate root causes of machine erroror breakdown as well as the chance to work in teams with managers to achieve improvements on product lines.UniLever started introducing T;: sometimes known as Total ;erfect :anagement or Total ;eople :otivation in Napan in >6C6ahead of global roll/out program. Today, around +## sites are using T;: techni$ues. The level one Oecellent award appliessimply to the factory floor, Oconsistently ecellent is for sustained performance and the Ospecial award, much harder to achieve,also includes innovation, manufacturing, sourcing and distribution.

5 S6s of Work1lace Organi0ation.

The 9 %s are a group of techni$ues to promote workplace organi-ation, ensure adherence to standards and foster the spirit ofcontinues improvement.The -stS8 SortO78ective2To get rid of unwanted items. 2ecide what is needed to be kept, and what is not needed and to be discarded.The 0ndS8 Set Location and LimitsO78ective2To locate a specific place for specific items of a specific $uantity, where needed. 2etermine addresses for materials ande$uipment. ;ut them in that place and keep them there.The 1rdS8 Shine and S/ee4O78ective2To use cleaning to identify abnormalities and areas for improvement. *lean the workplace and at the same timevisually sweep for abnormalities or out or control conditions.The 3thS8 Standardi9eO78ective2To consolidate the first 4 %s by establishing standard procedures. 2etermine the best work practices and find ways ofensuring everyone does it the same Dbest way.The 6thS8 SustainO78ective2To sustain improvements and make further improvements by encouraging effective use of the O*heck/Act/;lan/2o

cycles. ?eep all current improvements in place and develop an environment for future improvements.Managerial /ierarch) of Lever Brothers Pakistan Limited

%Rahim &ar 'han (actor)*

O1erations of Lever Brothers Pakistan Limited %Rahim &ar'han (actor)*

Material Store:aterial store is a place where raw material is store. :y period of internship is spent in material store, where learn the differentfunction of material store and stock maintenance. The management structure of material store is as follows'
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%taff of material store is as follows.Assistant :anager :r.Naffar :edhiNoiner :anager F&il 1 !atG :r.0a-aNoiner :anager F0aw and ;ackingG Empty%&A F&n receipt of materialG :r.=ashim%&A F&n issue of materialG :r.Asgar:r.=ashim is working on the seat of 3oiner manager F0aw and ;ackingG on temporary basis.:aterial %tore 2epartment consists of two hangers and one perfume store. Total area of each hanger is +9B >#" feet. :aterialstore has an over flow depot outside the factory.:aterial %tore 2epartment handles near about B9# items of raw material.(unction of Material Store2Two main functions of material stores are() *eceipt o& Material+) ssue o& Material9. Material Recei1t Process2

:aterial store receive two type of material&il and !at, 2!A, Li$uid *austic;acking and 0aw :aterialThe process of receiving these materials is different from each other. (e will discuss these processes one by one.%a*. Recei1t of Oil and (at, (, Li:uid !austic2The process of receiving &il and !at includes following steps.Ste4 -8 ei,h Brid,e8!irst step in material receipt system is weigh bridge where vehicles reach. *apacity of weigh bridge is C# tons. There are twooperators on the weigh bridge.The !unction of weigh bridge in goods receipt process is as follows.Truck or other type of vehicle driver come on weigh bridge and gives truck invoice to weigh bridge operator which is issue by thesupplier of material. The weigh bridge operator check the type of material load on truck and note the truck number and its timingof arrival. f material is packing and raw then it is sent to material store for unloading. f material is &il and !at tankers are sent tosampling point. Lab assistant takes sample from tanker. &perator of weigh bride makes a sample chit and then this chit is sentwith sample of material to lab for inspection. %ample chit consists of date, sample no, indent no, supplier name, $uality, $uantity,and truck no. The operator is informed by telephone from lab that sample is ok. Then operator on weigh bridge take the firstweight of loaded tanker and feed data in system with the help of software (eighridge which includes serial number, suppliername, truck number, material name, sample no and first weight. ;rint of this data is attached to truck invoice. Then operator

makes a weigh bridge slip and give it to driver and send driver to unloading point. (eigh bridge slip contains date, party name,truck no, material name, and signature of weigh bridge operator. &ne portion of weigh bridge slip is filled by the operator onweigh bridge and other part is filled by the operator on receipt on material. The part of weigh bridge slip which is filled by theoperator on receive contains received, material name, truck no, and tank no where material is unloaded.After unloading tankers come back to weigh bridge. 2river gives back the weigh bridge slip to operator and unloaded tankers areweighted. The operator feed this weight in (eightirdge software and calculates net weight. Then print of data is attached to truckinvoice. &perator checks the difference between net weight and weight written on truck invoice. f it is minor difference than it isignored. f it is ma3or difference than it is mentioned on truck goods receipt which operator makes after second weight. Two copiesof T80 are given to driver and two for office. Truck good receipt contains following data. %upplier name, date of receipt, city name,date of sending, $uantity, packing type, description of goods and truck no.&perator feed this data is daily sheet, which is made in ecel. 2aily sheet contains data about date of receipt, arrival time, truck no,T80 no, indent no, item code, supplier, commodity, sample no, dispatch weight, received weight, difference, out time, systempostedFyesHnoG, remarks, weigh bridge operator. After it, the operator feed this data in :!8 ;ro.


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Ste4 08 'n2oadin, of Oi2 and Fat: %FA: Caustic8

&il and !at, 2!A and Li$uid *austic are unloaded on different point and process of unloading is different.%7*. Oil and (at2The point where oil and !at is unloaded is call Tallow 2ecanting area. !ollowing materials are unloaded at this point.

Tallow >.9

Tallow #.9


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*oronal &il

*otton %eed &il

f material loaded on tanker is coronal oil and cottonseed &il than the oil is shifted to storage tank through pipeline and with helpof pump. ut before shifting oil the operator on unloading clear the line with help of steam.Tallow area uses following storage tanks store the material.%T B9 and %T >+ is use to store tallow #.9 which is use in Lu. %T >4 and %T ># is use to store tallow >.9 which is use for life buoy.%T B is use to store ;? &il.

The capacity of %T B,>+,>4,B9 is ## tons and capacity of %T># is 9## tons. Temperature of storage tanks is maintained with helpof hot water running in pipelines inside the tanks. A meter gage shows the level of material store in tanks.Tallow comes in two types of tankers. &ne is private companys tanker and others are lever brother tankers. The process ofunloading these tanks is different with each other.Private !om1an) "ankers2!ive tankers of +9 tons each can be unloaded at a time. Truck driver brings truck to tallow decanting area and give weigh bridgeslip to operator on unloading. &perator note the time when unloading start.f tallow is in free-e condition in tanker than with the help of steam operator melt the tallow and then unload tallow in drop tank.!rom drop tank tallow is shift to 2ecanters. Tallow area contains two decanters having capacity of +## tons each. Temperature ofthese decanters is maintained according to material. This material is than shifted to storage tank from decanters. efore shiftingmaterial to storage tank the operator on receipt clear the pipe line to storage tank with help of steam and when line clear thanmaterial is shifted with help of pipe line. After unloading operator note time and fill the weigh bridge slip and give it back to driver.Lever Brothers "ankers %Big Bell)*2*ompany has its own tankers, which are called ig elly. These tankers have facility to maintain the temperature of material.:aterial loaded in big belly is directly stored in storage tank with the help of pump. ut before unloading pipeline is clear with thehelp of steam.Process Ma1 of "allo4 ecanting

%c*. (2Truck loading 2!A reaches at unloading point. 2!A is unloaded and store in storage tank directly from tanker with the help ofpipeline and pump.%d*. Li:uid !austicTruck loading caustic reach at unloading point. 2river gives weigh bridge slip to operator. *austic is first unloaded in drop tanksand from drop tanks caustic is shift to storage tank with help of pump. Two drop tanks are use to unload the tankers. *apacity ofthese two drop tanks is +9 tons each. Two storage tanks %T BB and %T +9 is use to store the caustic. *apacity of these tanks is >9#tons each. After unloading operator fill the weigh bridge slip and give it back to driver.Process Ma1 of ( ; Li:uid !austic ecanting


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%e*. Recei1t of Packing and Ra4 Material

;acking and raw material is unloaded in two hangers. &ne is hanger no + where personal product packing and soapry chemicals.&ther is hanger no 4 where packing soapry and raw material is stored. Truck loading packing and raw material first reach to weighbridge where operator on weigh bridge not the truck number and time of arrival and send it to hangers for unloading.&perator on receipt of packing and raw material check the truck invoice which contain name of material, type of material,purchase order number, and $uantity. &perator unloads the truck and keep material to their specific place. 2uring unloadingoperator also take sample of material which is sent to lab for inspection. &perator checks the material, count it and match the$uantity received with $uantity written on truck invoice. After unloading material truck good receipt is prepared which contain

supplier name, $uantity received packing, and description of product and discrepancy. Tow copies of this receipt is given to driverand two copies are keep in office. T80 contains the following data. %upplier name, date of receipt, city name, date of sending,$uantity, packing, description of goods, discrepancy if any. After T80 is issued the data is posted in Ledger. !ollowing data isposted in ledger. 2ate, truck no, purchase order number, name of company, invoice number, item code, description, $uantity,pack, price, 800 no, $uantity ordered, and remarks. (ith the help on entries in ledger than data is feed in :!8 ;ro.Process Ma1 of Recei1t of Packing ; Ra4 Material


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Issue of Packin, and Ra/ "ateria2ssue of packing and raw material handle three operators. &ne operator issues packing material to personal product department.%econd issues packing material to soapry and raw material to )%2. Third operator issues chemicals to soapry and personalproduct department, perfumes and colors.ssue note is sends to material store one day before issue from manufacturing departments. 0elated officer in store notes the nameof material and $uantity of issue on notebook of related operator.)et day operator note the $uantity of issue on lot card from where he is issuing and notes this lot number in his notebook. (ith


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the help of fork lifter material is send to manufacturing departments. After issuing material operator notes this lot number in issuenote. 0elated officer post this data in :!8 ;ro.Return of Material2ssued material can be return to material store from manufacturing departments because of two reasons.8oods not re$uired0e3ected due to any problem.f goods are returned on first base than manufacturing department send a return note with material to store. This material isstored near the lot from where it was issued. A new lot number is posted on this material. 0elated officer post return note insystem. This material will issue first on re$uirement.

f goods are return on second basis than first a lab assistant check the material. f material is re3ected than it is stored sprat placespecific for re3ected material.A card which contain lot number from where it was issued and number of issue note against which it was issued is posted on thismaterial. 0elated officer sends e/mail to %upplier *ompany. The %upplier *ompany inspects the material and if i t is re3ected thanit send fresh material to company.Process Ma1 of #ssue of Packing ; Ra4 Material

Bu)ing e1artmentThe word Dbuying means purchase of any thing or any merchandise or item. This function is performed by buying department inany organi-ation.uying or purchase is one of the ma3or functions of any company of organi-ation. (ithout it no one organi-ation can run


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successfully in the field of business. %o we may say that buying is the soul of company. (ithout buying all departments of thecompany will be failed.Ost1+ndfor buying4rdfor re$uisitioning department Fre$uest for purchase itemsGCa22in, summar5 of ;uotations & 42acin, of order!irst of all the buying department invites to general public for $uotations and to some particular parties. After receiving $uotationssummary of $uotations is prepared and made comparison with price $uality etc. After that the party is decided on which an orderis to be placed according to the terms 1 conditions. Then purchase order is prepared in the favor of succeeded party. Allinformation regarding delivery and freight is mentioned in purchase order. !our copies of purchase order are prepared anddistributed as follow'

>. (hite for accounts department

+. ;ink for re$uisitioning department

4. 8reen for buying department

. lue for payment department

Recei4t of ,oods & 4re4aration of RIR(hen goods are received from supplier then 800 is prepared by material store department and sends to lab for inspection. fgoods are accepted in the laboratory then these are placed in the concern store other wise not. !our copies of 800 are prepared

and distributed as follow'>stfor account department+ndfor buying department4rdfor concern departmentthfor laboratoryn case if the material is not accepted then a sundry sales F%%AG advice or sundry sales credit will be made to return the goods tothe supplier. Three copies of %%A are prepared'!irst for re$uisitioning department%econd for accounts department or distribution departmentThird for buying departmentPa5ment(hen 800 is accepted then one copy of it is submitted to payment department, where the payment department preparespayment sheet and makes advice to the cash office for payment after satisfying the other formalities.


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SUPPL& !/#$ M$3-M-$"The firm has segmented structure of supply chain :anagement. The purchasing, production control and distribution departmentshave responsibility for material management.%TA0A *=E:*AL% is the supplier of local raw material of soda ash, caustic soda etc.%upplier selection is based on price, $uality and delivery.%A!ETI %T&*?+ to 4 weeks for basic FimportedG material+ weeks for packaging material

L- "#M->4/ +# weeks

(OR-!S"#$3%emand Forecastin,-. &orecast is t#e prediction o& &uture events used &or t#e planning purposes/)Forecastin, Techni;uesT#ere t#e t#ree &orecasting tec#ni0ues are availa1le &or t#e purpose o& t#e &orecasting o& t#e demand, w#ic# are as under)

2udgmental Met#od)

Causal Met#od)

Time 3eries Met#od)

The usage of these techni$ues depends upon the availability of the data about the past.Forecastin, at LBPLThe forecasting techni$ue, which is being followed by L;L, is the 0ualitativetechni$ue.Sa2es Force Estimate%ales force estimate of forecasts compiled by the members of the companys sales force Ftheir dealers in each regionG about thefuture demand of the product. They are using this techni$ue because they believe that their estimates are correct since the dealersare much near to the market. :arketing 2epartment is actually involved much in forecasting. They observe the trend of themarket and they set their target of sale then they tell to the production that what is their target then production department makeproductions according to the target set by marketing department.Time Series2emand for the future periods is also determined by the time series method. =istorical data about the past demand is the basis forthe time series. The data is used for the demand pro3ection for the coming periods."arketin, Research:arketing research is also conducted by the firm. 2ata obtained is used to determine the customer demand pattern, and trends.Effective Ca4acit5t is the maimum output that a process or firm can economically sustain under normal conditions. (hen operating close to peakcapacity, a firm can make minimal profits or even lose money despite high sales levels.&perations manager must eamine the three dimensions of capacity before making capacity decisions'

3i4ing capacit$ cus#ions

Timing and si4ing expansion

Linking capacit$ and ot#er operating decisions

The capacity cushion is the amount of reserve capacity that a firm maintains to handle sudden increases in demand or temporaryloses of production capacity it measures the amount by which the average utili-ation falls below >## percent.C.!.CT5 C63HO7 8 (99: ; 6TL#gms.69gms.T&LET %&A;%LUK ;)? >#gms;U0;LE 180EE) 69gms(=TEL!EU&I 8&L2;ink 1 (hite >#gms69gms0EEME C9gmsL0L !0E%= >#gms0A) !0E%= 69gmsMain point a1out t#e capacit$ are given 1elow


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*apacity is measured in terms of output.

:easuring unit is per ton

%i-ing capacity cushions are used for the capacity

;lanned lead/time for changing a dice is C hours.

lines are available for the hard soap FlifebuoyG.

*apacity of per line is +># tablets H min.

%hift production is # tons H shift

2aily production is >+#/tonsH day with 4 daily shifts.

!or toilet soaps 4 lines and 9 machines are available.

*apacity for toilet soaps is >6#H min while the average capacity is >C#H min.

Annual production capacity for life buoy is 4#### tons to 49### tons.

Utili-ation P Avg. *apacityH *apacity

Utili-ation for toilet soap is 69

Utili-ation for hard soap is 6" Effective capacity

Utili-ation for toilet soap is 6# ;eak *apacity

Utili-ation for hard soap is 64

!ost e1artmentThis department provides very useful services to the company and is responsible for costing of the products. This department doesthe yield calculations of the followings'

%oapery fatty acids

*rude glycerin

0efined glycerin

Edibles

!or the calculation of yield, these elements are taken into consideration'

%torage lossHgain

leaching loss

;acking lossHgain

Un/accounted loss

%torage LossH8ain

(hen oil and fats are received by the material store, sample is taken for measuring percentage of !ree !atty Acids F!!AG andmoisture. All these materials are received by the stores and then issued to production department.At the $uarter end, cost department do the stock taking of all the tanks of oil and fats and also draw a sample for determiningmoisture. )ow the cost department see that what is the difference between the physical nPand book stock. This deference will bethe loss or gain and charged to the production account.B2eachin, Loss>ain!or the purpose of bleaching the Activated Earth is used. The Activated Earth absorbs some amount of tallow. This absorption iscalled bleaching loss. *ost department calculates this loss.Packin, Loss>ain(hen the finished products are packed some packing loss or gain took place at this stage. %ome products are packed above thestandard weight and some less. ;acking loss or gain is also determined.

'n?Accounted Loss%ome losses are not seen in manufacturing process, these are called Un/accounted losses.Re4orts of Cost %e4artment*ost department looks into the yield and performance of the factory with the help of various reports. These are following'

>. 2aily stock report

+. ;roduction accounts

4. 2aily production report

. ;ower 1 %team production report

-. ail) Stock Re1ortThis report tells that how much raw material is transferred to plant, what is the weight of activated earth used, how much fats arespoon/fed, soap cleaned, lye transfer to glycerin section, lye treated and refined glycerin effected into drums. (ith the help of


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these information, this department takes care of yield.0.Production accounts of the 1roducts*ost department makes production accounts of all products with the help of followings'

0aw material cost

chemicals

;acking material

@ariable direct material

Ra/ materia2 cost@alue of material consumed is taken from consumption schedule and is charged to production accounts after making ad3ustmentof opening and closing stock.Chemica2s*ost of chemicals and taken from consumption schedule and prorated on products pack wise and in these cases whose closingstocks are chemical mied value is charged to production accounts after ad3ustment in opening and closing stock.Packin, materia2;acking material but is taken from consumption schedule and then total cost is charged to production accounts of the products.@aria

A;@ +

P9A;@ > is classified into further three sections'

;acking and materials payment section

Local payment section

*hemicals and engineering stores payment section

Functions of AP@ -!ollowing functions are performed by A;@ > department'-. Local 1a)ment2Local payment includes'


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Engineering stores items Fspare partsG

0epair of building

tems of canteen, mess, entertainment etc.

(ash white of building

:edical bills of non/management staff

+);ayment of oil 1 !acts?. ;ayment of utilities bills@. ;ayment of packing materialA. ;ayment of chemicals and perfumes. ;ayment of stationery and printing. ;ayment of medicine. Allocation of head office debt and credit notes.E. ;reparation and submission of weekly and monthly%tatements through advance ta system.P 9# then payment is made on cash voucher. (hen this amount is more than0s.>9# then payment is made through che$ue. (hen payment is made through che$ue then re$uisition for cash office is generatedthrough system with the help of payment sheet. The re$uisition is prepared by the computer automatically. The system alsomentions the che$ue Q on the monitor that is also written down on the payment sheet. After that payment sheet is submitted tothe cash office. The cash office prepares the che$ue through computer. The che$ue is send to authori-ed person for authori-ationof payment. After that if the payment is re$uired to make through 2.2HT.T then 2.2HT.T is prepared. The che$ue is posted orgiven by hand to the respective supplier. The suppliers get the amounts from the banks of L;L. n this way the payment is made

to the respective supplier.After making the payments to the concerned persons the cash office sends the payment sheet to A;@. The payment departmenthas various registers. &ne for local purchases, one for outside purchases, and one for engineering sores items and so on. All theinformation is transferred to respective registers.n register there is companys name, companys code, address, phone Q etc. if there is no name of a company then its name iswritten down n the register and then information are transferred to the register.Ca4ita2i9ation of Ca4ita2 Pro4osa2n a year four Times capitali-ation procedure is completed. At The end of each $uarter capitali-ation of *apital ;roposal is done bythe *apital ;roposal Account 2epartment. !or various head of accounts, *ompany has mentioned various numbers of *apital;roposal 3ust like as6>HLH>#>6+HLH4#>64HLH4#B6HLH4#CAssets Transferred advice8Assets transferred advice is that memorandum which is used to transfer various assets from one location to another location. %owe may say that it is Dinter Unit advice.!our copies of ATA are prepared, of their authori-ation5 one copy is send to Account 2epartment and others to respective

departments.Bookin, authorit58t is the permission of 3ourney. (hen any employee travels for company business or for personal matters then he or she has to takethe permission from some person who has been authori-ed by the company to give the permission to such person for businesspurpose. Traveling facility is provided to :anagement and )on/:anagement staff FNunior :anager and aboveG.After this when certain person comes back, he sends a DTraveling Ependiture %tatement with his signature, to A.:. Accounts2epartment. ooking authority is affiliated of this traveling approval from authori-ed person.Summar5 of Credit Sa2es of PO%>Estate Sho4!or factory employees including all management and non/management, certain companys manufactured goods are sold to themon subsidy like as soaps, 8hee, (heat, tea etc on concision rates. !or this purpose one shop has been opened by *ompany in LeverEstate named D;&2 or Estate %hop.!rom ;&2 shop daily D*ash %ales %ummary is received with cash memo to the Accounts 2epartment. At the end of each monthone N@ is passed for this subsidy and charged to. This summary s prepared according to book month because it is internaltransaction of the company.Locum Tenses Authorities8This is a memorandum which means transfer of responsibilities to another responsible person. (hen one manager goes on leavethen he sends a copy of locum tenses authority to accounts department that now this person is responsible for my 3ob.orkin, ca4ita28

To know the financial position of the business each month of the financial year Dworking *apital report is prepared. (ith the helpof (orking *apital 0eport, company knows how much capital is circulated in business. And also know that how many accountsreceivable, accounts payable and inventories eist.Two copies of (orking *apital report are prepared. &ne is sent to head office monthly basis while second is for office use.Over !ead Ex4enditure re4ort8To control the repair epenses of the factory D&ver =ead Ependiture 0eport is prepared on monthly basis. All locationsmentioned in workshop, for eample (orker Administration 2epartment, for their salary, traveling epense, building of theworkshop administration department all revenue ependitures are *alled overhead Ependiture report.After obtaining this report one N@ s passed by Accounts 2epartment according to various aHc Q and locations."onth End ork Order re4ort8This report is received from 0.!. Engineering 2epartment. t shows the detail of that work done on repair and maintenance, inother words those epenses which incurred on repairs and maintenance up to at the end of each month. This final report is sendby Engineering 2epartment to Accounts department. Against this report Accounts 2epartment prepares two N@s5 one for *apital;roposal Administration 2epartment while second against various locations.Reconci2iation0econciliation functions are also performed in financial section. !ollowing 0econciliation %tatements are prepared in thisdepartment.

0econciliation %tatement etween (alls ce cream and 0ahim Iar ?han !actory

0econciliation %tatement etween Engineering stores 1 ;ayment section

0econciliation %tatement between ?arachi Tea !actory F?T!G

0econciliation %tatement between ?arachi edible oil The 1 8hee !actory

0econciliation %tatement between =ead office and 0.!

0econciliation %tatement between rook ond And 0.!

-m1lo)ees Relations e1artment


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The assets of the organi-ation like machinery. According to the ;ersonnel 2epartment of L;L 0.!., there are things which arecommon between workers and machinery of the organi-ation. !or eamples'R :achinery re$uires repair where as workers re$uired training.R oth are used for production purposes.R oth re$uire improvement.R oth become inefficient if proper attention is not given.There are many 2epartments which work for different areas. %uch as ;roduction 2epartment works for the controlling ofproduction. %ales 2epartment works for the sale of ;roducts. !inance 2epartment arranges the finance for the organi-ation and soon. Therefore there must be a department for the controlling, motivation and training of the employees. !or this purpose L;L

0.!. has an Employees 0elation 2epartment. The ;ersonnel 2epartment of L;L 0.!. performs the following functions'(unctionsS EmploymentS Transfer and ;romotionS TrainingS *ompensation AdministrationS =ealth and safetyS enefits and %ervicesS :aintain relations with laborS =uman 0esource planningEm42o5ment8;ersonnel 2epartment makes arrangements for the recruitments of the employees. !or this purpose it collects information aboutthe desired employees functions and then defines the 3ob re$uirements and 3ob profile. The ;ersonnel 2epartment makes all thearrangements for the report meant of new employee, t sees better such employee is available in the organi-ation or not. n case ofno, it gives the advertisement in the newspapers. t also collects all the applications of the applicants. t also makes arrangementsfor test. The ;ersonnel 2epartment uses different tests for different applicants. After that it arranges the interviews for thesucceeded applicants. Usually the interviews are bland of different types of interviews. These interviews include panel interview,structured $uestions etc. The background information about the succeeded applicants is also gathered by the ;ersonnel

2epartment.Transfer and Promotion8The ;ersonnel 2epartment transfers the workers from one department to other department according to the circumstances. Thefunction of promotion of the workers is also performed by this department after consulting with the top management andanaly-ing the past record of the workers.Trainin,8!or smooth production and efficient work there must be some training programs for the workers, staff and management. Trainingfunction is also performed by the ;ersonnel 2epartment. t provides on the 3ob training to the eisting workers and arrangesprograms for new employees.The ;ersonnel 2epartment provides the following training facilities to management, staff and workers.R &n the 3ob trainingR LecturesR %eminarsR *onferencesThe company has a full time training manager who conducts the different training programs according to circumstances. Themanagement is also sent abroad for certain training programs.Com4ensation and Administration8The Lever rothers ;akistan Limited conducts the wages survey in the market and of the ma3or competitors after every two yearsand compares the results with its own package and there is any difference then ad3ustment is made. The desire of L;L 0.!. is thatits employees must be satisfied in every aspect because t has the opinion that satisfied employees are more productive ascompared to dissatisfied. The L;L gives 4# different types of allowances to its employees. %ome of these are annual, some aresemi/annual, and some are monthly while some are once in the whole employment period.!ea2th and Safet58L;L 0.!. is much conscious about the health and safety. ;roper e$uipments are available in all areas of the production wheresensitive machinery is in operation. !urthermore, the organi-ation has a well e$uipped :edical *enter where :% doctors areavailable in order to meet with emergency cases. The ;ersonnel 2epartment provides all possible instruments to all workers and ithas the desire that every worker should use those instruments in order to avoid losses. !ollowing are the nstruments which areprovided to the workers'R Long shoesR =elmetsR 8lovesR !ire nstrumentsBenefits & Services8L;L 0.!. also provides certain benefits and services to all its employees. A list of some benefits and services is given below'R Attendance AllowanceR 8ood attendance awardR 2eath *ompensationR *anteen allowanceR Tea EpensesR *onveyance AllowanceR !amily medical allowanceR !amily medical careR =ouse rent AllowanceR Utilities allowanceR :eal AllowanceR 0ehabilitation AllowanceR 0etirementR Nersey


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R %hoesR Tonga AllowanceR Traveling AnnounceR =a33R :arriage Assistance To minoritiesThe organi-ation has a club for the employees of the organi-ation. ndoor and outdoor facilities are also available. The companyalso celebrates Annual %ports 2ay on which different games are played and pri-es are given to the succeeded players by thecompany./uman Resource Planning2

The most important function performed by the department is the =uman 0esource ;lanning. !or a smooth production there mustbe an effective =uman 0esource ;lanning. !or This purpose it makes long term and short term plans to make the labor availablefor production. %hort term ;lans are made for those places where workers have gone on holidays or absent. Under these plans ithas two types of recruitment'>. adli+. Temporary!or long term plans workers are recruited from the temporary workers who have become skilled one.Motivation2The organi-ation has the opinion that motivated workers are more productive than unmotivated workers. To motivate itsemployees the organi-ation uses both intrinsic and etrinsic approaches for motivation its employees.Intrinsic A44roach8R Nob rotationExtrinsic A44roachR TrainingR Appreciation lettersR onusesR *ash awardsR 8ifts

R %hieldsR *locksR ;ut the name of the workers on the notice board who perform an ecellent performance. To motivate the employees theorgani-ation has introduced a program name &! F&pportunity !or mprovementG.

M#$#S"R#"#O$ -PR"M-"$"Lever rother ;akistan 0.!. has also an administration department that is controlled by the personal department. !ollowingfunctions are performed by the Administration 2epartment'R Arrangements for providing for providing transport facility to management staff.R Arrangements for the 3ourney of management 1 non/management staff.R Arrangements of stationery and printing.R ssuance and maintenance of stationery record.R To provide entertainment to management during working hours.R 0eceipts and dispatch of letters, documents etc."rans1ort (acilit) to Management StaffUsually the management staff has to go to =ead &ffice ?arachi for business matters then they need transport. This arrangement ismade by the administration department. The company has its own transport for drooping and leaning of management staff at theAir ;ort, or 0ailway %tation.

rrangement for =ourne)(hen a :anager, Assistant :anager or any Nunior :anager wants to go outside the city either for personal or business purpose,they inform to the administration department about their intention. They instruct to the department for making the arrangementsof 3ourney.An arrangement of 3ourney includes reservation of seat in train or in airplane as the case may be. After making such arrangementsthe administration department informs to the concerned person about the reservation and other information.Purchase of stationer) ; 1rinting of desired documents%tationery includes pen, paper, pencils, rubber, sharpener, etc. all these items are purchased by the administration department. tsends the purchase re$uisition to the buying department for the purchase of desired items.The administration department also prints all these documents, vouchers invoices sheets etc. which are used by variousdepartment of the company.#ssue of stationer)All stationery is issued by the administration department to various departments of the company. t also maintains the record ofsuch stationery. Administration department prepares reports about the issuance of stationery on monthly basis.Maintenance of BuildingArrangements of the repair and maintenance of factory building is made by the administration department.-ntertainment (acilit)Tea is provided to all management during working hours in order to keep the staff fresh and to improve their efficiency. All

arrangements for entertainment are performed administration department. Arrangements for entertainment includes purchase ofmilk, sugar tea etc.Recei1t and dis1atch of mailThe administration department receives mail and distributes it to the relevant person. n the same way it dispatches all the mail ofthe company. :ail is made through &*%, T*%, or postal method.

#S"R#BU"#O$)ow a days business is etended to a great etent. :arkets are widening briskly, so there is a great need to meet the re$uirementsof this large market successfully. There should be such a system of distribution that the supply of products to the markets shouldbe according to the needs5 this system should be Dsales loss proof.Lever rothers has a system, which gives maimum results. %upply of product is monitored in such a way that there are minimumchances of shortage in supply.(U$!"#O$S


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n L;L 0I? 2istribution department performs falling functions'R 0eceives finished products from production departments.R 0eceives monthly or weekly ;lans for distribution from :arketing 1 %ales 2epartment =&.R To makes daily dispatch plan.R To arrange transport facility for delivery of products.R To pay Ecise 2uty and arrange ;rovision for Ecise 2uty according to legal 0e$uirements.R To pay %ales Ta liability at the end each month up to +#thday of net month.R And some :isc. 8eneral !unctions.#S"R#BU"#O$ PRO!-UR-

!irst of all production is transferred to distribution warehouse by the production department. 2istribution department has twowarehouses, which are capacity wise "##>9# tons Ffor soap and personal productsG and 9##+## tons Ffor cooking oil.2istribution department arranges the dispatch plan that is provided by the consumer services head office. Therefore products aredispatched according to the dispatch plan. *ompany has various sales depots located in different cities throughout the country.%uch as'aisala1adFarac#i "a4ira1adLa#ore*a#im 5ar F#an =central>*a#im 5ar F#an =sout#>Dera smail F#anMultan2istribution department sends products directly to distributors or to sales depots as per instruction of sales department headoffice. %ales department makes sales contracts with different parties and supply by advising distribution in 0ahim Iar ?han!actory.All sales depots are controlled by head office. %ales department send plans for despatch to these depots which take necessaryaction according to plan.

0ahim Iar ?han %outh depot covers the area of aluchistan and %ind while *entral covers the area of ;un3ab and )(!;. There isanother depot named Dover flow depot in 0ahim Iar ?han. (hen there is shortage of space in factory warehouse, production istransferred to this depot.2istribution department 0ahim Iar ?han !actory sends despatch plans to over flow depots. This depot arranges the supplyaccordingly. !or all the despatches a despatch advice is prepared in which the full detail of the products are maintained. !ivecopies of despatch advice are prepared.R &ne copy is sent to consignee through transporter.R &ne copy of 2.A is sent to customer service head office.R &ne copy is sent to accounts department.R &ne is for distribution department 0ahim Iar ?hanR &ne copy is given to transporter that is called acknowledgement.#S"R#BU"#O$ !/$$-LSL;L has a centrali-ed distribution system in which the products are distributed from one warehouse to the selected distributor ofthe company, and then the distributor make the product available to the wholesalers and at the end the product is transformed tothe retailers to be purchased by the final customer.The company had direct relations only with the distributors for making the product available to the target market. t deals with thedistributors on net and advance payment bases and does not give any credit facility to them. =owever the company providesdifferent commissions incentives. There are many certified distributors of L;L operating in almost all ma3or areas of thecountry.%ometimes when the company introduces the same product line in different innovation style then it uses the following channel ofdistribution. The company has specifically directed its distributors to provide that innovative products to retailers skipping out thewholesalers in the channel. The basic reason for doing this was to eliminate the wholesaler commission so that the price can beplaced at relatively lower level.*hannel is like this

:anufacturer FL;LG *ompany warehouse

*onsumer 0etailer 2istributorn short the intense coverage of market is the basic aim of L;L distribution policy.

>UL#"& !O$"ROL


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(U$!"#O$SR :onitoring annual targets for $uality improvements in all areas.R *reating a culture of customer focus striving to become the lowest cost producer through agreed annual cost reduction program.R @alue people by understanding and drawing upon their strength i.e. abilities and knowledge and make efforts for their trainingand development.S"3-SRA "ATERIAL8(hen raw material is received the $uality of raw material is inspected according to the standards. According to these standards ifthe personnel of receiving department will inspect according to the standards. f there are a lot of 9## and they choose >4 samples

from the whole lot then they select the sample from the upper and lower and right and left side of the whole packet. t means thatthey select the sample by way of diversifying the area. f the + units of the sample are re3ected then the whole lot will be re3ectedand if the lot is re3ected then they call back the vendors and vendor check that lot again. f the lot is very much needed by theproduction department then they place a written re$uest. The >## inspection is done on it. n this case, they call the vendors ortheir inspectors and they check it on >## basis. ut this happens in very rare cases.&n the other hand if the lot is accepted then it is remarked as 80L Fgood received lotG and sent to the store. (hile four copies of80L are made and sent to the following four departments'-. ;urchase 2epartment0.


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Sales2The companyJs revenue streams are reported under three heads' foods, beverages, and detergents Fincluding personal/care

productsG. The foods group covers brand names J2alda anaspatiJ and J;lantaJ cooking oil, and J(allsJ and J;olkaJ icecream. Thebeverages group covers brand names JLiptonJ and Jrooke ond %upermeJ tea. The detergent covers J%urfJ and J@imJ. ;ersonal careproducts includes JLuJ, JLifebouyJ soap and J%unsilkJ shampoo.2uring >=#> the company introduced new food packagings which resulted in greater volumes. The icecream units did well becauseof enhanced product visibility made possible by door to door mobile vending. The overall sales under foods head improved by 0s.++m F>=#>' 0s. +,B>+, >=##' 0s. +,96#G.Lipton Iellow Label is the principal brand alongwith rooke ond %upreme in beverages. The biggest threat to its growth comesfrom smuggled tea, available at 4#/# below company product prices, due to evasion of import duty and sales ta. The recentmove to increase import duty from +9 to 4# is likely to benefit tea smugglers only. The policy makers needs to realise that itsoverall revenue from tea imports increased significantly in >66C when the duty was reduced from 4# to +9.&n the other hand if conserving foreign ehange and encouraging local cultivation of tea are the motivations behind the increasein import duty then the best course of action for the company is to redouble its efforts in local cultivation of tea in :anshera,where the ;resident :usharraf formally inaugurated the facility on " %eptember +##>. =owever the sheer whimsical adhocism ofbureaucracy can hardly be pardoned on these grounds.The sales in beverages decreased by 0s. >>> m F>=+##>' 0s. ,#66, >=+###' 0s. +>#G. (e epect sales to improve onlymoderately in this category in the +=#> without much contribution to the bottom line.Lastly, detergents are facing stiff contest from JArielJ of rivals ;rocter 1 8amble Fan important fact not mentioned in *hairpersonJsreviewG. The personal care products also take a pinch from products of other Unilever group companies in :iddle East. 8iven the

lack of Jbe ;akistani, buy ;akistaniJ ideology in end/users, the personal care products are smuggled in huge $uantities and en3oythe benefit of being eempt from sales and other taes, but the fact is not overtly highlighted in chairpersonsJ report. The sales indetergent and personal/care group for >=#> decreased marginally by 0s. >9m F>=#>' +,64+, >=##' +,6>"G. (e epect sales toincrease only moderately in this category in the +=#>.Re7ates ; llo4ances.2uring the si months period ending 4#th Nune +##> the gross sales of the company was greater than the corresponding periodbut the rebates and allowances showed an increase of 0s. 64m from 0s. 44#m in >=+### to 0s. +4m in >=+##>.-arning Per Share.The improvement in eps is noticeable. n +=## the eps scaled new heights, unlikely to be matched or surpassed in the current+=#>. This is further confirmed by :s. :usharaf =ai, *hairman and *hief Eecutive in her candid review when she says' Jcurrenteconomic environment and uncertainty...may slow down revenue growth and profitability in the second halfJ. (e believe that theeps for the current half will be in the range of 0s. # to 99. The target eps is epected to be around 0s. 9#.ividends ; Pa)out.!rom shareholderJs point of view, the final dividend announcement of 0s. C4 per ordinary share on +#th :arch +##> was anunepected but pleasant surprise. The presence of distributable reserves of 0s. B# m makes it possible for the company tomaintain final dividend at last yearsJ level but such feat is unlikely to be repeated for atleast net couple of years. =owever thestrong payout of the company Frow ># aboveG is worth noticing.!onsistentl) #m1roved Margins.The most important thing to observe is that the company has been able to improve its bottom line, indicated by net profit marginFrow "G, which considering only B growth in revenues from >666 to +### is an achievement, the basic reason for which is theimproved cost control.!ashflo4s.Another important factor Fnot detailed in above table because of space limitationsG is that the company has recorded significantcash earnings after a long time, which is good news for its shareholders. As a result, the overdrawn balance has gone down by 0s.>BB m, from 0s. >6 in +=## to 0s. +C m in >=#>, which is no mean achievement. The half/yearly accounts of +##> also show that0s. > billion is payable by the company in the net twelve months, which will be a drain on its cash resources but given the abilityof the company to borrow funds at reasonable financial charge from elsewhere, this too will pass. The company as a fast mover ofconsumer goods needs to carry heavy inventory but gladly it has been able to control its inventory, and receivables properly. Therole of creditors as a source of financing is also significant. *reditors etc have balloned considerably by 0s. ">6 m from 0s. +,494mat +=## to 0s. 4,#"+ m in >=#>. *reditors etc are almost >9# of the net assets and it sure is an indication of over/trading. Thelevel of creditors etc needs to be bought downStock !hart


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.

SWO" nal)sisStrengths Largest producing company of consumer products in ;akistan

En3oying economies of scale

8ood will in the market

%trong financial position

%ome of its brands have become the generic name for those products as 2alda in ghee 1 surf in detergents

:arket leader in tea industry with Lipton 1 rook ond

*apture "# percent market share of ice cream industry

=ighly sales brands in skin care i.e. ;onds and !air 1 Lovely

=ave %trong distribution channel in ;akistan

(ide product line in home wash

Weakness =igh rates of skin care products

0atio of success of new product is low

=uge inventory stocks of raw material and finished goods

!ew new products are introduce in the market

O11ortunities *apturing food industry by ac$uiring 0affan est !oods

(ide scope of confectionery business for L;L

L;L is looking to ac$uire Tapal tea

"hreats !acing tough competition in 8hee and *ooking &il

!acing tough competition in ice cream.

L;L is facing a very tough competition in personal care and detergents by ;18
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There is very tough competition in detergents and soap markets

=igh inflation rate is increasing the cost of imported raw material day by day

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