Professional Documents
Culture Documents
REPORT
Kashan Pirzada
ENGLISH BISCUITS
MANUFACTURERS (PVT) LTD
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CONTENTS
Topic Page
Acknowledgement........................................................................................................3
Letter of Transmittal.....................................................................................................4
History...........................................................................................................................5
Corporate Profile...........................................................................................................5
Corporate Social Responsibility...................................................................................5
Supply Chain Management (SCM)...............................................................................6
What is SCM?...............................................................................................................7
SCM at EBM.................................................................................................................8
Business Process...........................................................................................................9
How Biscuits are made.................................................................................................10
Material Management (Supply Chain) Department......................................................11
Finance Department......................................................................................................12
Production Department.................................................................................................13
Types of Biscuits...........................................................................................................14
Production Process........................................................................................................14
MIS Department............................................................................................................16
Quality Assurance & Development Department..........................................................17
Marketing & Sales Department....................................................................................18
Engineering Department...............................................................................................19
Learning in the Organization........................................................................................21
Conclusion....................................................................................................................23
Suggestions/Recommendations....................................................................................24
Bibliography.................................................................................................................25
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ACKNOWLEDGEMENT
A visit of each department was conducted and a meeting was arranged with the head of
each department where every head/manager explained the functions and working of the
concerned department. We specially would like to thank the assistance and cooperation
of;
We would have been unable to make this report without the assistance of these people.
Please contact us for any query.
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LETTER OF TRANSMITTAL
Bahria University
National Stadium Road
Karachi
Sir
This report is on “Supply Chain Management of EBM” it is ready for your perusal.
This report highlights the whole supply chain and business process of EBM and the
functions of different departments.
If there be any clarification demanded, I would appreciate a call from you on the given
number.
Sincerely
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HISTORY
CORPORATE PROFILE
EBM started manufacturing and marketing the world famous Peek Freans range in 1967
in order to provide Pakistani consumers with nutritious and hygienically packed biscuits
of the highest quality.
True to its corporate claim, 'The Legend Leads', EBM has led the biscuit industry in
Pakistan for more than 39 years by playing a pioneering role in providing innovative and
high quality biscuits for every taste bud.
EBM is the only Company in the industry to have achieved recognized international
certifications pertaining to quality control, environmental management system and human
resources management, including ISO 9001:2000, ISO 14001:2004, HACCP
certifications.
The sales of the company have been increasing with the passage of time. The company,
recognizing the increased demand of EBM’s biscuits, decided to give extension to the
plant.
At start (1967), there was only one plant (line) and now 5 lines are working. The EBM
has also installed two plants (lines) at HATTAR, named Coronet Food Ltd (CFL), a
subsidiary company of EBM. Total 7 lines are being used now for the production
purpose.
In mid 90’s CONTINENTAL BISCUITS (LU) emerged as the biggest ever competitor in
the biscuit industry and achieved a big market share which they held for almost 7 to 8
years. But EBM’s strong planning, management and rational decision making took back
the market. Since then, EBM has been growing fast and has left its competitor far behind.
Environment
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Environmental protection, safety and security have always been the top priority at EBM.
While the company is committed to delivering high quality products, it also recognizes
the importance of being a responsible corporate citizen. EBM performs its business
activities with utmost respect and care for the environment through proactive
environmental management.
Development Plan
The company has constructed a lush green area for families, including children’s play
area, three waterfalls and gazebos, at an expenditure of Rs. 6 Million
Education
The company has also initiated an in-house literacy programme for its employees by the
name of UJALA. Regular donations and fundraising activities have also become part of
day to day business at EBM, as part of the company’s social responsibility initiatives.
Moreover, EBM also emphasizes the need of good health; therefore EBM promotes and
supports healthy activities like cricket etc.
Supply Chain Management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which
can be suppliers, intermediaries, third-party service providers, and customers. In essence,
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Supply Chain Management integrates supply and demand management within and across
companies.
By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a
company's clients), SCM applications have the potential to improve the time-to-market of
products, reduce costs, and allow all parties in the supply chain to better manage current
resources and plan for future needs.
Supply chain management (SCM) is the combination of art and science that goes into
improving the way your company finds the raw components it needs to make a product or
service and deliver it to customers. The following are five basic components of SCM.
1. Plan – This is the strategic portion of SCM. You need a strategy for managing all the
resources that go toward meeting customer demand for your product or service. A big
piece of planning is developing a set of metrics to monitor the supply chain so that it is
efficient, costs less and delivers high quality and value to customers.
2. Source – Choose the suppliers that will deliver the goods and services you need to
create your product. Develop a set of pricing, delivery and payment processes with
suppliers and create metrics for monitoring and improving the relationships. And put
together processes for managing the inventory of goods and services you receive from
suppliers, including receiving shipments, verifying them, transferring them to your
manufacturing facilities and authorizing supplier payments.
3. Make – This is the manufacturing step. Schedule the activities necessary for
production, testing, packaging and preparation for delivery. As the most metric-intensive
portion of the supply chain, measure quality levels, production output and worker
productivity.
4. Deliver – This is the part that many insiders refer to as logistics. Coordinate the receipt
of orders from customers, develop a network of warehouses, pick carriers to get products
to customers and set up an invoicing system to receive payments.
5. Return – The problem part of the supply chain. Create a network for receiving
defective and excess products back from customers and supporting customers who have
problems with delivered products.
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EBM’s supply chain process is comprised of a series of interdependent steps and starts
with the collection of raw materials and ends with packaged brands on customer's
shelves. The Supply Chain Management at EBM ensures that appropriate quality
standards are upheld and maintained at each link in the chain.
Forecasting
Planning
Manufacturing
Deployment
Distribution
The consumer / shopper
Forecasting
Planning
The function of planning is to convert marketing forecasts into manufacturing plans. The
planning department works closely with the various operations to ensure that
manufacturing plans are accurately converted into monthly and weekly production plans
and budgets. Planning is also responsible for monitoring and controlling the amount of
stock the company holds and for ensuring that the correct stock holding levels are
maintained to meet customer service requirements.
Manufacturing
The manufacturing process at EBM involves the conversion of raw and packaging
material into finished product in the most cost effective manner possible. EBM
manufactures all of its own products, and production takes place at the two factories
located in Karachi and Hattar.
Deployment
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The function of marketing and sales is to market the product with the aim of maximizing
the profit of the firm. Effective policies and strategies are made for this purpose.
Distribution
The shopper and consumer are the individuals who eventually buy and consume EBM’s
products.
A shopper is the person who purchases the product in store, whereas a consumer is the
person who eventually consumes the product. In many instances the shopper and
consumer are one and the same.
BUSINESS PROCESS
It is a set of linked activities that take an input and transform it to create an output.
Ideally, the transformation that occurs in the process should add value to the input and
create an output that is more useful and effective to the recipient. This definition also
emphasizes the constitution of links between activities and the transformation that takes
place within the process.
EBM is a manufacturing firm and therefore its business process is also based on the same
above definition.
Management processes - the processes that govern the operation of a system. Typical
management processes include "Corporate Governance" and "Strategic Management".
Operational processes - these processes create the primary value stream, they are part of
the core business. Typical operational processes are Purchasing, Manufacturing,
Marketing, and Sales.
Supporting processes - these support the core processes. Examples include Accounting,
Recruitment, IT-support, and Engineering.
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A business process includes different stages through which the business is performed.
Each stage covers a large area of its concern.
PURCHASE OF
RAW MATERIAL
MANUFACTURING
PROCESS
MARKETING
& SALES
The core stages in the business include acquisition of raw material, manufacturing of
biscuits and finally marketing & sales. Each step is performed by different departments at
EBM.
List of Departments
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Manufacturing biscuits begins with a planning process. At first, the production demand is
analyzed. The EBM’s management then creates a factory production plan ensuring the
people working at the site, and the machines that are running, are best utilized so that
time and energy is not wasted. The necessary raw and packing materials, as required by
the production plan, are then purchased.
The store is responsible for issuing materials for the production process according to the
planned requirements. It is only at this point that biscuits start to be made. Manufacturing
biscuits comprises a number of steps:
1. Flour and sugar is dispensed into large mixers. The ingredients that are used in smaller
quantities are hand weighed and added into the mixing bowl for each batch of dough to
be mixed.
2. The ingredients are then mixed to form dough in the mixing bowl according to a
specific mixing procedure.
3. The dough is then tipped into a hopper and gravity-fed into the dough sheeting section
of the machine. In this process the dough is fed through various rollers to form a sheet of
dough. Depending on what type of biscuit is being produced, this process varies.
4. Different forming techniques are used to get the required shape and size of the piece of
dough which will form the biscuit.
5. The raw biscuits are transported through a gas-fired oven on a metal conveyor band
where they are baked to form fresh, warm and deliciously smelling biscuits.
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Biscuits are baked rather than fried, so the oil merely assists the flavour particles to cling
to the biscuit surface. The flavored biscuits then travel along a cooling conveyor in order
to cool off.
6. Once the biscuits have been cooled, they are packed into wrappers, cartons and cases,
ready for distribution to one of the warehouses.
7. Quality checks are conducted at key points in the process to ensure process control and
product quality is constantly maintained at a high standard.
8. The finished product is then transported to warehouses. Stock is loaded as per delivery
orders and sent to the various distributors.
Material management department deals with the purchases of raw material, and supply of
finished goods (biscuits). This department receives all the CAPEX Orders (for capital
items) and Demand Notes (for general items) from other departments for quotation of
items against CAPEX. A quotation is a list of vendors in which all the offered prices are
given. A CAPEX number is automatically generated by the system. Material
management department recommend one supplier from which final purchase is to be
made. As soon as the required material is received from the concerned supplier, an MRN
(Material Receiving Note) is made, the MRN number is then written on to the
invoice/bill. This bill is forwarded to the finance department which approves the purchase
and records the transaction into supplier bill register. A purchase voucher is made for
recording the liability and then a payment voucher is made that shows the final payment
to the supplier.
Another function of this department is to store all the raw material received, in proper
form. Different store rooms and proper shelves have been made for safe storage purpose
in order to sustain the quality of received raw material as per standards. A special RMS
(Raw Material Store) is built for the same.
• Maida • Ammonia
• Sugar • Cream
• Flour • Butter etc
• Fats • Cocoa powder
• Eggs • Nuts
• Salt • Coconut oil
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Once biscuits are made and received from production department the cartons of these
biscuits are further stored into the FGS (Finished Goods Store). As the Sales Department
asks Material Management Department to supply these biscuits to the buyers i.e.
distributors, this department issues the same.
Furthermore, this department also deals with the suppliers of goods, raw material etc in
order to purchase goods and material in economical prices. This department compares
local market prices with international market prices and makes purchase from the market
which is beneficial to the company. This department very closely observes the
government rules and policies which may directly or indirectly effect the buying
decisions.
FINANCE DEPARTMENT
Finance department deals with the day to day financial matters of the company. These
include recording of transactions into respective concerned module, making payments,
sales tax matters etc.
Treasury department deals with all the cash related matters. All the Cheques are made
and signed in this department.
PRODUCTION DEPARTMENT
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As the name suggest, production department deals with the production of biscuits. EBM
currently has 5 lines (plants) for producing
biscuits.
Line 1 IMAFORNI
Line 2 MEINCK
Line 3 IMAFORNI
Line 4 IMAFORNI
Line 5 IMAFORNI
IMAFORNI
EBM also has its subsidiary company with the name of CFL (Coronet Food Limited) at
HATTAR. CFL also operates 2 plants in which biscuits are manufactured, both the plants
are IMAFORNI.
On line 3, 4, 5 only SOOPER biscuits are being manufactured 24 hours, to meet the high
demand of SOOPER through out the country. Other biscuits like RIO, PARTY,
PEANUT PISTA, PEANUT PIK etc are manufactured on line 1 and 2.
TYPES OF BISCUITS
Crackers
• Butter Puff
• Marvell
• Saltish
Cream Biscuits
• Choco Vanilla Sandwich
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• Chocolate Sandwich
• Lemon Sandwich
• Rio Double Treat Chocolate/Vanilla
• Rio Double Treat Strawberry/Vanilla
• Rio Vanilla
PRODUCTION PROCESS
The whole production process consist of 5 different stages which are as follow.
• Mixing
• Cutting
• Baking
• Chilling
• Packaging
MIXING
In vertical mixing, the mixture is blend in vertical direction through a machine while in
horizontal mixing the mixture is blend in horizontal direction, depending on the recipe of
the biscuit. The mixture (dough) is then forwarded to next step.
There are a variety of factors that are important when it comes to mixing the dough: the
temperature of the ingredients, the mixing time, and the order in which ingredients are
added.
CUTTING
In this step, a long sheet of the dough is made which is then cut into different shapes of
biscuits through different dyes.
BAKING
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The biscuits now come into the baking zone on moving belts. This step further divided
into 5 zones.
In zone 1 and 2 the biscuits are baked on direct fire, these zones are called Direct Gas
Zone and after passing zone 1 and 2 these biscuits are moved towards zone 3 and 4 which
are called Thermo cycle zone. In these zones biscuits are baked through hot air. In zone
5, a final spray of hot air is given to the biscuits which after passing through zone 4
change their color into brown.
In MEINCK plant, biscuits are baked through the spray of hot air in all 5 zones.
CHILLERS
In this step, baked biscuits are passed from the chillers. Chillers’ main function is to cool
the biscuits. Once cooling process is complete, the biscuits are forwarded to packaging
department.
COOLING CONVEYORS
PACKAGING
This is the final step in the production process. The biscuits are wrapped and packed into
different sizes of packets like;
• Ticky pack
• Half roll
• Family pack etc
These biscuits are further packed into master cartons which are then either dispatched or
stored into Finished Goods Store (FGS).
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Manufacturers need information about inventory availability, machine uptime and down
time, product cycle times, yield, waste, WIP etc. They need real-time information
management tools for continuous improvement and decision support. Only a live link to
the production floor can provide the link to the critical information that can control the
supply chain's actual ability to perform.
An Advanced ERP Interface is available which enables the user to maintain the system's
Job Queue and Product Databases from transactions created by an ERP system. An
Activity File and a Real Time Status File are maintained to provide the ERP system with
real time feedback on job starts, completions and status. Users report electronically
updating inventory records improves inventory accuracy.
EBM is an ERP (Enterprise Resource Planning) based Organization. All the departments
are linked with each other through networking called INTRANET. EBM is also
connected with CFL with INTERNET as well. A central database has been maintained at
EBM where the information related to Payables, Receivables, Fixed Assets, and
Inventory etc. are saved.
A module has been established for each (payables, receivables, fixed assets, inventory
and so on). Each module is integrated with each other. This integration has increased the
efficiency of each department, as maintaining and keeping record of data and information
have become easier. Overall effectiveness of the organization has also increased to a
great extent. All the budgeting, general accounting and treasury related works are being
performed on this ERP software.
MIS department is responsible to make sure the safety of information. They are also
responsible to take corrective measures if any problem relating to ERP arises. Moreover,
any issue relating to networking, hardware, software etc are dealt by this department.
Since ERP has been recently developed and implemented at EBM, therefore it still has
some areas to be improved. If any department has any query relating to its concerned
module, it may ask and instruct MIS department to make desired alterations.
Furthermore, new modules are also being constructed for the complete implementation of
ERP.
EBM is strictly following the policy of providing its customers, the best quality. EBM
has never compromised on this and therefore, it has been the main reason why the EBM
is so successful and famous amongst its customers.
EBM, for this purpose, has developed a Quality Assurance & Development Department.
The basic function of this department is to check and maintain the quality and standards
of raw material used. This includes testing of flour, eggs, Oil & fats etc. Four Labs are
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currently working at EBM, for checking and testing purpose. Two more labs are under
construction.
Under-constructed lab includes Research and Development where research work will be
performed and new product development work will be done.
Quality control begins with the ingredient assembly stage of production during the
measuring, weighing, and processing of the raw ingredients. Additionally, most large
manufacturers have quality control (QC) labs responsible for making sure the materials
meet determined specifications. Characteristics such as appearance, color, odor, and
flavor are checked. QC technicians also test for particle size, viscosity of oils, and pH of
raw materials.
The finished product is also carefully monitored. Like the inspection of the raw material,
the finished products must be examined for appearance, flavor, texture, and odor. The
product is compared to a standard established during product development. Specially
trained testers are responsible for detecting subtle differences that deviate from the norm.
EBM is very much concerned about its marketing as it is the backbone of its sales. A
good marketing strategy has always been adopted by EBM which keeps on changing with
the passage of time. One of the biggest tools of marketing is advertising. EBM does
advertising through different media channels which include TV commercials, Radio,
Magazines etc. Furthermore, EBM also sponsors different events like cricket matches,
concerts etc.
Sales activity is also performs by the same department. This department sets the targets
of sales for the current year and for the upcoming years. Once the target is set, a strategy
is developed for achieving this target. They collect orders from the distributors and
supply to them the same. Their overall strategy is to maximize the sales by observing the
market trend and consumer demand. EBM has more than 350 distributors all around
Pakistan. EBM has recently achieved a sales target of Rs.7 billion, which is a great
achievement.
Following is the supply chain of biscuits from producer to final consumer.
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SUPPLY CHAIN
RAW
MATERIAL PRODUCTION
DISTRIBUTOR WARESHOUSE
WHOLESELLER SHOPKEEPE
R
P a g e | 20
CONSUMER
ENGINEERING DEPARTMENT
All technical problems and issues in the machines are resolved by Engineering
Department. Technical staff at EBM consists of about 47 people including Chief
Engineer.
EBM has its own POWER-HOUSE which provides electricity 24 hours. This is due to
miserable electricity condition at Karachi. This Power-House has the ability to generate 2
Mega Watts of electricity. Currently 1300 to 1400 Kilo Watts are being utilized.
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GENERAL ACCOUNTING
EBM is ERP based organization; they designed modules for all the departments. Each
module is used for the data entry and making reports. In General Accounting, there are
two modules are used. One is for recording of Fixed Assets and Depreciation, and other
is for the Accounts Receivable, Accounts Payable etc.
I have spent most time of my internship tenure on Accounts Payable Module. In this, all
the expenses are record in relevant heads of the companies. After recording the invoices,
Module automatically passed the Entry. Then we make payment voucher of it on the due
date and forward it to Mr. Bashir Rawalia (Head of Accounting), who signed it and
finally forward it to Treasury department which make the payment via cheque.
I have also worked on Accounts Receivable Module. EBM received all the payments in
advance and they don’t provision for bad debts. Accounts Receivable module is used for
recording all the payments in advance.
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In budgeting & costing department, they received estimated budget of every department
and compile it and make budget for the whole organization. This practice repeats every
month.
Budgeting & costing department is forecasting the cost of raw materials. They also
calculate all type of variances which includes material variance, labor rate variance etc.
Budgeting & costing department is also responsible for maintaining over all contribution
margin of the organization. They set the standards, if any of the product’s contribution
margin goes down, they inform marketing department for not collecting the orders of that
product. They also inform research and development (R&D) department for alteration in
recipe of the product so as to maintain the required contribution margin.
TREASURY DAPARTMENT
Treasury department is responsible for all the cash activities in the organization. Salary to
the employees and wages to the workers are made by this department.
They are also responsible for maintaining cash in hand required in day to day operations.
EBM has accounts in different banks. They receive payments from different banks on
daily basis and at the end of each day, all the amount is transferred to its central bank
account. They also make working capital summary and forward it to upper management
and to Mr. Abdul Wahid (Head of Finance), and Mrs. Sadia Naveed (Director
Operations).
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CONCLUSION
Supply chain management (SCM) is the oversight of materials, information, and finances
as they move in a process from supplier to manufacturer to wholesaler to retailer to
consumer. Supply chain management involves coordinating and integrating these flows
both within and among companies. It is said that the ultimate goal of any effective supply
chain management system is to reduce inventory (with the assumption that products are
available when needed).
Supply chain management flows can be divided into three main flows:
The product flow includes the movement of goods from a supplier to a customer, as well
as any customer returns or service needs. The information flow involves transmitting
orders and updating the status of delivery. The financial flow consists of credit terms,
payment schedules, and consignment and title ownership arrangements.
SUGGESTIONS / RECOMMENDATIONS
All lines at EBM are being fully utilized and there is no more capacity to increase the
production. Therefore, new plants and machinery (new lines) should be installed in order
to meet the high demand.
EBM should also start production of its other famous brands like Smile, Marie, Butter
Puff, Ringo and Butter Puff etc on large scale and should not rely only on SOOPER,
PARTY, RIO, PEANUT PIK & PEANUT PISTA.
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Egg breaker machine should be used in Production Department instead of manual method
for breaking eggs, so as to increase the production efficiency.
Since EBM is an ERP based organization and all the departments are linked with each
other through ERP. It is highly recommended that its distributors should also be
connected with the organization through ERP.
BIBLIOGRAPHY
http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html
http://en.wikipedia.org/wiki/Supply_chain_management
http://www.theprogressgroup.com/publications/wp2_logs.html