Professional Documents
Culture Documents
INTERNSHIP REPORT
Submitted To: Mrs. Saira Farooqi (Head of Business Studies Department) Submitted By: Farah Zaka BBA (Hons.) Session 2007-2011 Kinnaird College for Women, Lahore
EXECUTIVE SUMMARY
A 6 week Internship Program is a requirement to be fulfilled for the completion of the BBA (Hons.) degree program at Kinnaird College. The purpose is to learn and indulge in professional working environment and observe the working conditions and learn to adapt and inculcate professionalism. For my internship in a business organization, I joined Unilever HPC factory, Rahim Yar Khan on the 6th of July, 2009 as an internee. I firstly had a meeting with the HR Assistant Manager, Mr. Usman Mir who gave me a brief review of the organization and its different departments. After having discussed with me, my interest in different subjects, he decided to place me in the Planning Department and introduced me to Mr. Farhan ul Haq and Mr. Abdullah who were my supervisors for the Internship Program. They introduced me to the department managers and then gave me a review of the projects that I was to work on. During my internship tenure of six weeks, I completed two projects in the Planning department and one assignment in the Human Resource Department.The projects that I have worked on will also be valuable to the management of my respective departments and will play their role in facilitating their activities. The purpose of this report is to explain what I did and learned during my internship period with Unilever HPC factory, Rahim Yar Khan. This report is also a requirement for the fulfilment of Unilevers internship program. This report focuses primarily on the assignments handled, working environment, successes and shortcomings that I as an intern, encountered when handling various tasks assigned to me by my project directors. I hope that this report will enable my faculty at Kinnaird College to understand and comprehend what activities I performed and how I carried out my projects in Unilever HPC factory Rahim Yar Khan. Since the various parts of the report reflect the interns shortcomings, successes, observations and comments, it would be imperative that the recommendations are also given. Therefore, the report gives a number of comments and recommendations on the internship program.
PREFACE
The mandatory internship in the BBA (Hons.) program is very beneficial to have practical exposure of how things really go in the market. Being a student who wants to polish her planning and human resource skills, the best place to gain the practical understanding of both these fields is, I believe, the manufacturing industry where inventory buying and stock keeping is planned on daily, weekly and monthly basis and hundreds of employees are recruited and their databases are managed in a highly systematic and orderly way. Hence I took the internship in Unilever Pakistan Ltd. which is the manufacturer of leading brands in foods, home and personal care and stands as a prominent name in the business world. I feel very fortunate to have been given the opportunity to work as an internee in Unilever, where I can gain first-hand knowledge of how the Company works. This experience will surely help me to identify the future course of my career. The absolute guidance and concern of higher management, friendly and motivating working environment with immense cooperation of the staff of all departments especially PP Planning and HR departments facilitated in making my internship a wonderful learning experience in all aspects which played its part well in grooming my professional skills. Mr. Farhan supervised the project of ABC Classification and Mr. Abdullah supervised me while I made the Three Week Shortfall Report. Through these projects, I was able to get direct interaction with the staff of personal products, personal wash, production, buying, distribution and human resource departments.Having completed the two projects earlier than the supposed time, I joined the HR department and worked on an assignment there with Ms. Bushra Asghar. After handing over that assignment, I prepared my report so as to explain what I did and learned during my internship so that my respected faculty at Kinnaird College could understand and comprehend the activities that I had performed. The internship report also includes some recommendations for Unilevers Internship Program.The mandatory Internship Program for the BBA degree program helped me a lot in understanding the dynamics of organizational working and professional behavior. Thank You Farah Zaka
ACKNOWLEDGEMENT
Kinnaird College for Women, Lahore 3
Table of Contents
Topic
Kinnaird College for Women, Lahore
Page No.
4
7. Concluding Remarks for Analysis.................................................... 44 8. Observation about any Dilemma Faced by Organization.. 45 9. Recommendations for Improvement........ 46 10. Conclusion.. 47
1.
Introduction of Report
The practical training of getting firsthand experience of working in an organization is an essential exercise that all the business students are required to undergo. Kinnaird College for Women, Lahore 5
2.
UNILEVER
2.1.1 Unilevers Mission Unilever's mission is to add vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. 2.1.2 Unilever Pakistan Ltd.
Unilever Pakistan (70.4% Unilever equity) is the largest FMCG company in Pakistan, as well as one of the largest multinationals operating in the country. The company enjoys a leading position in most of its core Home and Personal Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream. The company operates through 5 regional offices, 4 wholly owned and 6 third party manufacturing sites across Pakistan.
Unilever Pakistan Limited (UPL), formerly known as Lever Brothers Pakistan Limited (LBPL) is a wholly-owned subsidiary of Unilever Overseas Holdings Limited, UK, whereas its ultimate parent company is the consumer products giant, Unilever PLC, UK.
2.1.4 Factories
Home & Personal Care Factory Laghari Road Rahim Yar Khan Walls Ice Cream Factory 46 Km Multan Road Lahore Karachi Tea Factory 32, West Wharf Road Karachi Brooke Bond Tea Factory Brooke Bond Nagar Khanewal
10
11
3.
Field of Activities
12
13
14
15
4.2
Operating Procedure
It is done to meet the ultimate targets of the organization. Sales and operational planning is done by collaboration of sales and planning departments in head office. It is of long term nature. Sales department describes its demand on the basis of product performance in the market and planning department describes its overall capacity to produce. As a result of S&OP, sales estimates are generated. Sales estimate is a target of estimated/ forecasted sales. It is sent in RF Planning department so that this department can make production plans to meet the estimated sales target. Planning in RF starts when sales estimates are sent from the sales department in Head Office. These estimates are of three types: Sales estimates for the next year Latest sales estimates based on actual sales of last six months and planned sales for next six months Rolling Sales estimates (RSE) which is monthly estimates
Responsible Persons
Demand Planners Sales Department
16
Medium term planning starts here. All calculated data is put into system to prepare MPS. Master production schedule is prepared every month for the next twelve months by the planning department in RF. MPS is updated time to time by taking inputs from sales estimates and rough-cut capacity plans. MPS demands planner to have knowledge of everything regarding No. of machines Capacity of each machine Changeover time Priority in product manufacturing
Short term planning starts here. MPS is fed into the system to get this MRP. MRP is prepared on monthly basis and updated weekly. Following major parameters are put into the system to get this MRP: On hand inventory Safety Stock Safety Time
17
In planning department of Unilever MRP deals with Supplier planning (vendor requirement planning) Material planning Production planning (capacity requirement planning) Machine planning Labour planning
Purchase Requistion
On the basis of MRP, purchase requisition is raised by planning department. PR states the requirement of raw material for a particular product in the manufacturing process.
18
PR is sent to buying department, head office where further action of purchasing the material takes place. Purchasing activity is done by buying department in head office and production activity is controlled by manufacturing department.
4.3
Numerous techniques are available for effectively managing the firms inventory. In Unilever, planning department uses the following techniques:
1. ABC Classification
ABC classification is an inventory management technique that divides inventory into three groups A, B and C in descending order of value and level of monitoring, on the basis of money investment in each. Unilever uses ABC inventory system to divide its inventory intro three groups A, B and C. A group contains items with the largest investment. Typically, this group consists of 20% of the firms inventory items but 80% of investment in inventory. The B class consists of items that account for the next largest investment in inventory, 15% and C class consists of a large number of items that require a relatively small investment.
19
Lead Time
Time from raising a purchase requisition to receiving material in material store after quality check where material is ready to use in production process. Lead time varies from item to item.
Reorder Point
The point at which inventory item is to be reordered is termed as reorder point. It is expressed as:
20
Safety Stock
Safety stock is the extra stock which company maintains to prevent stock outs of important items. Safety Stock Personal Wash =1.5 weeks
Safety Stock Personal products = 2.5 weeks Safety Stock 3rd party = 3.5 weeks
Safety Time
Safety time is the time for which safety stock is kept and used.
Order Period
Order Period is the period for which ordered quantity is enough. There is no need for placing another order in the same period. Order period for least prioritized items is more (Priority is based on ABC classification). Order period for most prioritized items is less.
MOQ
Minimum order quantity is the minimum quantity level set by the supplier which is necessary to order by the company as first lot of first order. Company requirement above MOQ is ordered in separate lots after the first lot. It is termed as multiple order quantity. It is also set by the supplier.
21
22
23
Demand Planning
Supply Planning
Dep. MGR Planning P.W & L.H.C Talha Kidwai JM Planning PW AM Planning L.H.C
24
PW Personal Wash
Glycerin e
By Product
JM Ms. Rubina
JM Mr. Abdullah
25
26
27
28
29
30
31
5. Work Done by Me
5.1 Project No. 1
5.1.1 Definition
The ABC Classification of Inventory is basically a sorting of inventory items in descending order of their value of usage.
5.1.2 Explanation
The ABC Analysis determines the relative value of a group of inventory items & categorizes them into the ranks of A, B and C. A class inventory contains items that account for 80% of total value, or 20% of total items. B class inventory has around 15% of total value or 30% of total items. C class inventory accounts for the remaining 5% of total value or 50% of total items.
33
5.2.1 Definition
The shortfall report is a report in which the predicted shortfall of inventory items is recorded in a systematic manner. This report enables the management to adopt a pro-active approach towards the shortfalls in inventory and stay high alert by forecasting expected shortfalls.
5.2.2 Explanation
For carrying out its business activities successfully, Unilever needs to maintain a significant stock of inventory because controlling that inventory and keeping track of it, can make all the difference between a business operating at a profit or a loss. Inventory deficiencies occur at different times in manufacturing industries. When it comes to inventory control, the key is finding a balance between too little and too much and that is where the shortfall report plays its role. "A first-rate Organizer is never in a hurry. He is never late. He always keeps up his sleeve a margin for the unexpected." - Arnold Bennett
34
5.3
Sources of Data
I was provided with separate files of third party contractors which contained data regarding the employees that had joined Unilever through these contractors. I was also provided with a file of complete reference data.
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv.
Sr # Token No. Name CNIC No. Qualification Father's/Husband's Name Job Department Date of Joining Salary @ 2008 Service Contractor Type ESSI Status EOBI Status Date of Separation
36
38
Distribution Procedure
First of all production is transferred to distribution warehouse by the production department. Distribution department has two warehouses, which are capacity wise 700+150 tons (for soap and personal products) and 500+200 tons (for cooking oil. Distribution department arranges the dispatch plan that is provided by the consumer services head office. Therefore products are dispatched according to the dispatch plan. Company has various sales depots located in different cities throughout the country. Such as: Faisalabad Karachi Wazirabad Lahore Rahim Yar Khan (central) Rahim Yar Khan (south) Dera Ismail Khan Multan Distribution department sends products directly to distributors or to sales depots as per instruction of sales department head office. Sales department makes sales
39
40
42
Procedure of Payment
All payments have the similar procedure. When any department of the factory want to purchase any item for production, repair etc. then it sends requisition to the buying department. These items can be purchased from R.Y.K. as well as from other cities of the country and some items are also imported. Those items, which are purchase from RYK, are called local purchases and the payments of such items are known as local payments. When goods are bought from outside R.Y.K. such purchases are known as outside purchases and payments of such purchases are called outside payments.
43
44
45
46
At the beginning of the internship program, all internees should be asked to attend a session in which a representative manager from every department gives the internees a brief review about his/her department so as to help the internees in deciding in which department they are more interested in working.
47
10. Conclusion
I feel that the internship program at Unilever helped me a great deal in learning the way work is done in organizations and also in understanding organizational culture and behavior. It was my first experience in the practical business world and I tried my level best to avail this experience to the maximum to enhance my skills. I am highly satisfied with the projects and assignment assigned to me as they were very knowledgeable. I observed that the Planning Department of Unilever HPC factory is responsible for:1. Managing material supplies processes and integrated sub-processes to ensure material supplies are in right place at the right time to meet commitments and deliver required levels of customer service.
48
The ABC classification and the shortfall report made me realize how important it is to keep things in a systematic and organized way and how useful it is to predict expect problems and shortfalls so that one stays prepared to take corrective actions. The HR assignment was just as knowledgeable and it also had an element of creativity as I was given the chance to experiment and decide for a format that would best fulfil all the requirements of the assignment. I learned a lot through these assignments and thus I am highly grateful to my supervisors. Through these projects, I also got to know of some of my strengths and shortcomings. I saw success every time my supervisors approved of my work. Their encouragement and motivation always boosted up my spirits and urged me to work more and more passionately and keenly.
49
50