Transcript
Internship Report by Farah Zaka
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
Kinnaird College for Women, Lahore
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Internship Report by Farah Zaka
EXECUTIVE SUMMARY A 6 week Internship Program is a requirement to be fulfilled for the completion of the BBA (Hon (Hons. s.)) degr degree ee prog progra ram m at Kinna Kinnaird ird Colle College ge.. The The purp purpos osee is to lear learn n and and indu indulg lgee 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 6 th 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. Duri During ng my inte intern rnsh ship ip tenu tenure re of six six week weeks, s, I comp comple lete ted d two two proj projec ects ts in the the Plan Planni ning ng 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 Unilever’s 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 hope that that this this repo report rt will will enab enable le my facu facult lty y at Kinn Kinnai aird rd Coll Colleg egee to unde unders rstan tand d and 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 intern’s shortcomings, successes, observations and comments, it would be imperative imperative that the recommendations recommendations are also given. Therefore, Therefore, the report gives a number of comments and recommendations on the internship program.
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Internship Report by Farah Zaka
EXECUTIVE SUMMARY A 6 week Internship Program is a requirement to be fulfilled for the completion of the BBA (Hon (Hons. s.)) degr degree ee prog progra ram m at Kinna Kinnaird ird Colle College ge.. The The purp purpos osee is to lear learn n and and indu indulg lgee 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 6 th 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. Duri During ng my inte intern rnsh ship ip tenu tenure re of six six week weeks, s, I comp comple lete ted d two two proj projec ects ts in the the Plan Planni ning ng 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 Unilever’s 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 hope that that this this repo report rt will will enab enable le my facu facult lty y at Kinn Kinnai aird rd Coll Colleg egee to unde unders rstan tand d and 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 intern’s shortcomings, successes, observations and comments, it would be imperative imperative that the recommendations recommendations are also given. Therefore, Therefore, the report gives a number of comments and recommendations on the internship program.
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Internship Report by Farah Zaka
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 these fields fields is, I believ believe, e, the manufa manufactu cturin ring g indust industry ry where where invento inventory ry buying buying and stock 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 learne learned d during during my intern internship ship so that that my respec respected ted facult faculty y at Kinnai Kinnaird rd Colleg Collegee could could understand and comprehend the activities that I had performed. The internship report also includes some recommendations for Unilever’s 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
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Internship Report by Farah Zaka Infinite thanks to Allah Almighty Whose eternal mercifulness has made me what I am and helped me in whatever I have done during this internship tenure as well as in all other fields and chapters of my life. I am thankful to my parents for their unconditional love, prayers and for every piece of advice they gave me. I am obliged to the faculty of my institute, Kinnaird College for Women, Lahore, especially the Head of BBA department, Mrs. Saira Farooqi and my respected teachers Mrs. Manal Talat, Ms. Farhat Iqbal and Ms. Syeda Fizza Abbas who have always been a source of consistent support and have guided me at every step of my academic life in Ki nnaird College. I am highly grateful to the Works Manager, Unilever Pakistan HPC, Mr. Shahid Rafique for giving me this opportunity to work as an internee in Pakistan’s greatest F MCG organization. I am thankful to my internship coordinators and supervisors Mr. Farhan ul Haq, Mr. Abdullah Masood and Ms. Bushra Asghar for always being there to guide and motivate every day of my internship tenure.
Table of Contents Topic
Page No.
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Internship Report by Farah Zaka 1. Introduction of Report …………………………………………….
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2. Introduction Introduction and History of Organization ……………………….. ………………………..
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3.Field of Activities .............................................. ..................................................................... .................................. ...........
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4. Introducing the Department where I worked as an Internee……
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5. Work Done by Me...................................... Me............................................................. ........................................ .................
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6. Departments’ Description Description and Analysis................................. Analysis.......................................... .........
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7. Concluding Concluding Remarks Remarks for for Analysis.................. Analysis......................................... .................................. ........... 44 8. Observation Observation about about any Dilemma Faced Faced by Organization… Organization……….. …….. 45 9. Recommendations Recommenda tions for Improvement…………………………. 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.
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Internship Report by Farah Zaka The student performance during the training is assessed and considered as partial fulfilment of the requirements for award of Bachelor s degree by Business Administration in Kinnaird College’s Business Studies Department. This practical working experience is a complement to the knowledge acquired in classroom lessons. My objectives toward internship program were to broaden my horizon by applying my accumulated knowledge and skills in accomplishing my tasks. Entering in the real working environment, developed my socializing skills with organizational personnel especially my supervisors. Also, I observed my strength and weakness while working. My first internship enabled me to gain experience and was my first step in my professional career. Moreover, it was a time for me to learn about and appreciate the organization’s working structure, team work and discipline.
2.
Introduction and History of Organization
UNILEVER
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Internship Report by Farah Zaka By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever. In the world of consumer products Unilever Pakistan has created an indelible name for itself with brands such as Lifebuoy, Lux, Surf and Walls.UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed. Unilever is one of the world's most successful consumer goods companies. Following a series of high-profile acquisitions, including US-based Bestfoods, Unilever's foods business is the world's third largest after Nestle and Kraft. It is a global leader in culinary foods, ice cream, margarine and tea-based beverages. Major brands include Knorr, Lipton and Magnum.In fact, 150 million times a day, someone somewhere chooses a Unilever product.
2.1.1 Unilever’s 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.
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Internship Report by Farah Zaka UPL was incorporated in Pakistan in 1948 as Lever Brothers Pakistan Limited and merged with Lipton in 1989 and Brooke Bond in 1997. It became the largest ice-cream manufacturers in Pakistan through amalgamation with Polka in May 1999. These acquisitions have further strengthened the distribution network of UPL. It is listed on all the three stock exchanges of Pakistan. Currently, UPL is the largest fast moving consumer products (FMCG) company in Pakistan. It is engaged in manufacture and marketing of home and personal care products, beverages, ice cream and spreads.
UPL has adapted Unilever global brands such as Lifebuoy, Lux, Surf and Walls to local consumer needs at affordable prices. It has increased its leading market position over the years, in most of its core home and personal care and foods categories, eg personal wash, personal care, laundry, beverages (tea) and ice cream.
Unilever Pakistan is being exported a range of products catering to the "external constituency", for the last forty years. Since 1998, the company entrusted with the responsibility of developing the Afghanistan business through a dedicated sales and distribution network. A wide range of home care, personal care, foods, ice cream and beverage brands are offered for export.
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Internship Report by Farah Zaka
2.1.3 Board of Directors Mr. Ehsan A. Malik
Chairman & Chief Executive Mr. M. Qaysar Alam
Executive Director Mr. Syed Babar Ali
Non-Executive Director Mr. Fatehali W. Vellani
Non-Executive Director Mr. Omar H. Karim
Non-Executive Director Mr. Zaffar A. Khan
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Internship Report by Farah Zaka Non-Executive Director Mr. Zarrar Haider
Non-Executive Director Mr. Syed Hashim Raza Zaidi
Non-Executive Director Mr. Amar Naseer
Company Secretary
2.1.4 Factories Home & Personal Care Factory
Laghari Road Rahim Yar Khan Wall’s Ice Cream Factory
46 Km Multan Road Lahore Karachi Tea Factory
32, West Wharf Road Karachi Brooke Bond Tea Factory
Brooke Bond Nagar Khanewal
2.1.5 UPL HPC Factory, Rahim Yar Khan
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Internship Report by Farah Zaka By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever. UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed. UPL HPC factory employs a large number of local managers and workers. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan. RAHIM YAR KHAN FACTORY
TOTAL AREA = 110,237 M2 BUILT UP AREA = 23998 M2 OPERATIONAL AREA = 5317 M2 STORAGE AREA
MAIN HANGER (3 NOS) = 2665 M2 /HANGER OLD PRODUCTION STORE = 711M2 VIM FLOOR = 725M2 ONE HANGER AS MASTER WAREHOUSE,CAPACITY,SOAP = 100MT MOOSAC STORAGE = 208.4M2 RAW MATERIAL STORAGE CAPACITY
SUNFLOWER OIL = 114MT
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Internship Report by Farah Zaka CNO/PKO = 600MT TALLOW 1.5R = 1400MT TALLOW 0.5R = 1240MT LIQUID C/SODA = 300MT LIQUID C/SILICATE = 155MT
3.
Field of Activities
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Internship Report by Farah Zaka Products Manufactured in HPC Factory The following UPL Products are manufactured in the HPC factory, Rahim Yar Khan.
4. Introducing the Department where I worked as an Internee
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Internship Report by Farah Zaka 4.1.1 Planning Department In the Planning Department of Unilever, Managers select short- and long-term objectives and draw up tactical and strategic plans to achieve those objectives. In the HPC factory, RYK, managers in the Planning Department are primarily concerned with inventory planning. Inventory planning deals with planning the timely purchasing of ample amount of quantity of inventory that is required in the manufacturing of products in the HPC factory. The inventory stock is coordinated with the production or sales needs. Effective inventory planning is instrumental in reducing costs and increasing productivity. As the plans are made, they are communicated throughout the organization. When implemented, the plans serve to coordinate, or meld together, the efforts of all parts of the organization toward the company's objectives.
4.1.2 Functions of Planning Department
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Internship Report by Farah Zaka Planning Department performs the following functions:•
Issuance of production plans
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Material Management
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Inventory Management
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Product Data Management
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Material Requirement Planning
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Follow-up material supplies
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Production reporting
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Identification of obsolete, damaged and slow moving items
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Proposal initiation for provisioning and write off of items
4.1.3 Planning Inputs •
Sales estimates
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Capacity of machines
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Product brand activities
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I.T. support
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Finished goods inventory
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Market demand
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Production capacity
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Material inventory
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Number and amount of PR raised
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Number and amount of PO received
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Number and amount of PO pending
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Lead time
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Safety stock
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Upcoming holidays
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Actual sales vs. planned
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Schedule deliveries of material
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4.2
Operating Procedure
4.2.1 Planning Steps Standard Operating procedure of planning involves the following steps:-
1. Strategic and Business Planning
Strategic and business planning is done at corporate level. It is a long term phenomenon; it may last for many years. Its objective is to achieve the ultimate goals of the organization.
2. Sales and Operational Planning (S&OP)
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
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Latest sales estimates based on actual sales of last six months and planned sales for next six months
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Rolling Sales estimates (RSE) which is monthly estim ates
Responsible Persons
Demand Planners
Sales Department
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Internship Report by Farah Zaka
Marketing Department
Planning Department
Factors under Consideration •
Past trends
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Statistical data
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Average sales
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Company target on monthly basis
Master Production Schedule (MPS)
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
Material Requirement Planning (MRP)
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
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Internship Report by Farah Zaka
Lead Time
Production Quantity
In planning department of Unilever MRP deals with
Supplier planning (vendor requirement planning)
Material planning
Production planning (capacity requirement planning)
Machine planning
Labour planning
Rough-Cut Capacity Planning Capacity planning is planning about capacity of machines i.e. the number of units that a machine can produce daily/weekly.
MPS is also used to prepare the long term capacity planning and short term capacity planning. Short term plans are used to prepare the monthly capacity plans of time station. From these plans weekly plans are prepared. Annual production plans are used to prepare quarterly and monthly plans. From monthly production plans, weekly production plans are prepared. In these plans, Manufacturing Order Status is prepared. MOS states how much quantity of product is planned and on what date it should be produced. The monthly order status is multiplied by the usage sheet of product and a report “Analysis of weekly shortfalls” for three months is generated on system. In this report it is stated that how quantity of an inventory item is required for a certain product.
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.
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Internship Report by Farah Zaka Purchasing Order
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
Inventory Management Techniques
Numerous techniques are available for effectively managing the firm’s 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 firm’s 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.
Objective of ABC Classification Objective of ABC Classification is to prioritize the most important items of inventory in descending order of their value of usage.
Advantage of ABC Classification Planner becomes aware of the value and importance of inventory items and so he makes plans and makes decisions as per importance of the item.
2. Material Requirement Planning (MRP) System
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Internship Report by Farah Zaka Materials requirement planning (MRP) system is an inventory technique that applies MOQ concepts to compare production needs to available inventory balances and determines when orders should be placed for various items on a product’s bill of materials. Unilever’ Planning Department uses this MRP system to determine what materials to order and when to order them. MRP applies MOQ concepts to determine how much to order. Using MRP, the bill of materials, inventory status and manufacturing process are prepared. The bill of materials is simply a list of all the parts and materials that go into making of the finished products.
Objective of the MRP System The objective is to lower the firm’s inventory investment without impairing production.
Advantage of MRP System The advantage of MRP system is that it enables the firm to consider its inventory needs more carefully.
4.4 Planning Parameters
Lead Time
Reorder Point
Safety Stock
Safety Time
Order Period
MOQ
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:
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Internship Report by Farah Zaka Reorder Point = Days of lead time * Daily usage
Safety Stock Safety stock is the extra stock which company maintains to prevent st ock 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.”
Factors affecting MOQ
Supplier batch size
Logistic constraint
Cost constraint
4.5 Flow Charts
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Internship Report by Farah Zaka REPORTING STRUCTURE OF PLANNING DEPARTMENT DEPARTMENT CHAIRMAN Ahsan Malik
V.P Supply Chain Qayser Alam
Planning Director Shahab M. Ali
Demand Planning
Supply Planning
Dep. MGR Planning Mr. Bashiruddin
Dep. MGR Planning
Dep. MGR Planning
P.W & L.H.C
PP
Talha Kidwai
JM Planning PW
AM Planning L.H.C
Kinnaird College for Women, Lahore
Ashfaq Ahmed
JM Planning PP
Dep. MGR Planning B.F Mr. Mubashir Wasti AM Planning B.F
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Dep. MGR Planning Ice Cream Nadeem Zubairi
AM Planning I.C
Internship Report by Farah Zaka HEIRARCHY OF UNILEVER OF PLANNING DEPARTMENT DEPARTMENT UNILEVER
HPC
Foods
(Home & Personal Care)
(Ice Cream, Rafhan)
LHC (Laundr y Home Care)
PW Personal Wash
Glycerin e
JM
By Product
Ms. Shumila Skin Care
Hair Care
Oral Care
Deodoran ts
Directed by Mr. Farhan ul Haq
JM Ms. Rubina
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JM Mr. Abdullah
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Internship Report by Farah Zaka
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Internship Report by Farah Zaka
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5. Work Done by Me 5.1 Project No. 1
ABC Classification of Inventory My first project was based on the ABC Classification of inventories , which I call, Devoting Resources The Right Way !
This project was supervised by Mr. Farhan. The ABC Classification of Inventory is the technique used by the Planning for managing Unilever’s inventory.
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.
5.1.3 Basis of Criteria This criteria is based on -
Sales for Customers
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Usage for inventory Items and
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Frequency for Problems
5.1.4 Tasks Performed for this Project Kinnaird College for Women, Lahore
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Internship Report by Farah Zaka In this project, I performed the following tasks:
Comprehended the ABC System & studied previous forecasted & actual weekly & annual plans.
Calculated the cumulative percentages of both raw and packaging materials based on their value.
Divided the raw materials into ranks A, B and C such that rank A contained items that contributed to 80% of total value, rank B contained items that contributed to 15% of total value and rank C item contributed 5% of total value.
Aligned Planning Parameters such as MOQ (Minimum order quantity, LT (Lead Time), Safety Time, Order Period and Review Period.
After getting the classification approved by Mr. Farhan, I updated the system mfg-pro on the basis of the ABC classification.
5.1.5 Benefits of this Project for PP Planning This internship project will be beneficial for PP PLANNING as in the course of my project, I will categorize the inventory items in the Ranks A, B and C. This will be useful in 1. setting priorities, 2. reducing inventory investment so that money remains available for capital investment
and expansion 3. allocating controlling efforts according to ranks and 4. determining policies for each category
5.2 Project No. 2
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THREE WEEK SHORTFALL REPORT For my second project, I was assigned the task of preparing the three week shortfall report. This project was supervised by Mr. Abdullah.
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
5.2.3 Source of Data The Product Development Department updates the data regarding the usage of inventory items on a system called MFG-Pro. From this system, the data is accessed by PP Planning and used in the preparation of shortfall reports.
5.2.4 Tasks Performed for this Project In this project, I performed the following tasks : 1. Captured Information regarding shortfall reports 2. Acquired required information related to raw materials used in HPC factory 3. Calculated weekly requirement of raw materials used in RYK. 4. Calculated weekly requirement of raw materials used in PCP. 5. Calculated weekly requirement of packaging materials used in RYK
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Internship Report by Farah Zaka 6. Calculated weekly requirement of packaging materials used in PCP. 7. Prepared a report of bill of materials (BOM). 8. Updated the data that I had been provided it by verifying it from MFG-Pro. 9. Linked the BOM file with the weekly shortfall report format used in PP Planning.
5.2.5 Benefits of this Project for PP Planning
This project of mine will help planning department as the weekly shortfall report prepared by me will make inventory maintenance and accounting a much easier task for the management.
My report will result in reduction in the amount of time that needs to be allocated towards inventory management.
5.3
The report will also help in prevention of production delays.
Human Resource Assignment
5.3.1 The Assignment Kinnaird College for Women, Lahore
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Internship Report by Farah Zaka After completing my projects in the Planning Department, I did an assignment in the Human Resource Department. For this assignment, I was given the task of preparing: SERVICE PROVIDER DATABASE SHEET 2009 5.3.2
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.
5.3.3 Tasks Performed by Me for this Assignment For this assignment, I performed the following tasks: 1. I made a Microsoft excel based files and formatted it in accordance with the instructions given to me by Ms. Bushra who was supervising this assignment. 2. Using the provided source files, I gathered the data regarding each employee of each contractor and compiled the information of employees of all contractors in that single file. This file contained the following kind of information regarding each employee:
i. ii.
Sr # Token No.
iii.
Name
iv.
CNIC No.
v. vi. vii. viii.
Qualification Father's/Husband's Name Job Department
ix.
Date of Joining
x.
Salary @ 2008
xi. xii.
Service Contractor Type
xiii.
ESSI Status
xiv.
EOBI Status
xv.
Date of Separation
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Internship Report by Farah Zaka xvi. 3.
Remarks
I made a list of the information that was missing in the provided files and after attaining that information, I updated the files.
5.3.4 Benefit to HR Department by this Assignment This assignment will be useful for HR department as they will use those files to keep organized records of SP employees.
6. Departments’ Description and Analysis The company is headed by the chairman who is assisted by a team of 7 members known as the manage committee, which is responsible for initiating policies and
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Internship Report by Farah Zaka overall planning. As well as their general management duties the MC members are each responsible for a specific function. Reporting to MC members are the Departmental heads who are responsible for advising the MC for planning, implementation of policies and for ensuring that targets are reached. In Unilever HPC Plant, the following departments are present to regulate the activities of the Unilever activities in the respective plant. 6.1 Administration Department
Unilever HPC’s Administration Department performs the following functions:
Arrangements for providing for providing transport facility to management staff.
Arrangements for the journey of management & non-management staff.
Arrangements of stationery and printing.
Issuance and maintenance of stationery record.
To provide entertainment to management during working hours.
Receipts and dispatch of letters, documents etc.
6.2 Distribution Department Unilever has a system, which gives maximum results. Supply of product is monitored in such a way that there are minimum chances of shortage in supply. In Unilever RYK Distribution department performs following functions:
Receives finished products from production departments.
Receives monthly or weekly Plans for distribution from Marketing & Sales 5partment HO.
Makes daily dispatch plan.
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Arranges transport facility for delivery of products.
Pays Excise Duty and arrange Provision for Excise Duty according to legalRequirements.
Pays Sales Tax liability at the end each month up to 20th day of next month.
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
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Internship Report by Farah Zaka contracts with different parties and supply by advising distribution in Rahim Yar Khan Factory. All sales depots are controlled by head office. Sales department send plans for despatch to these depots which take necessary action according to plan. Rahim Yar Khan South depot covers the area of Baluchistan and Sind while Central covers the area of Punjab and NWFP. There is another depot named “over flow depot” in Rahim Yar Khan. When there is shortage of space in factory warehouse, production is transferred to this depot. Distribution department Rahim Yar Khan Factory sends despatch plans to over flow depots. This depot arranges the supply accordingly. For all the despatches a despatch advice is prepared in which the full detail of the products are maintained. Five copies of despatch advice are prepared. One copy is sent to consignee through transporter. One copy of D.A is sent to customer service head office. One copy is sent to accounts department. One is for distribution department Rahim Yar Khan One copy is given to transporter that is called acknowledgement. Distribution Channels
Unilever has a centralized distribution system in which the products are distributed from one warehouse to the selected distributor of the company, and then the distributor make the product available to the wholesalers and at the end the product is transformed to the retailers to be purchased by the final customer. SKETCH OF DISTRIBUTION CHANNELS Manufacturer Company warehouse Distributor Wholesaler
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Internship Report by Farah Zaka Retailer Customer
6.3 Material Store Two main functions of material stores are:
Receipt of Material
Issue of Material
MATERIAL RECEIPT PROCESS Material store receive two type of material Oil and Fat, DFA, Liquid Caustic Packing and Raw Material
6.4 Finance Department Following functions are performed by Financial Accounts Department of R.Y.Khan Factory:
Maintenance of fixed assets records including related reports
Calculation of depreciation, Gross Book value (GBV) and Net Book Value (NBV)
Capitalization and other schedules on yearly basis
Allocation of manpower cost and depreciation to different location on monthly basis
Maintenance of medical expenses, Traveling expenses vouchers and their record up to management staff
Maintenance of working capital sheet on monthly basis
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Internship Report by Farah Zaka
Month wise preparation of sheet of credit sales of estate Shop
Overhead Expenditure statement on monthly basis
Month end work order report
To keep record about the details of debtors and creditors of the company
Preparation of various Debit and Credit notes, Journal Vouchers and their records
Preparation of Reconciliation Statements
6.5 Costing Department This department provides very useful services to the company and is responsible for costing of the products. This department does the yield calculations of the followings:
Soapery fatty acids
Crude glycerin
Refined glycerin
Edibles
For the calculation of yield, these elements are taken into consideration:
Storage loss/gain
Bleaching loss/gain
Packing loss/gain
Un-accounted loss
REPORT OF COST DEPARTMENT
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Internship Report by Farah Zaka Cost department looks into the yield and performance of the factory with the help of various reports. These are following:
Daily stock report
Production accounts
Daily production report
Power & Steam production report
6.6 Payment Department Different department of Unilever Rahim Yar Khan factory is working under Commercial Department. Payment Department is one of them. Payment Department is also called APV (Accounts Payable Vouchers). The purpose of this department is to make the arrangements for the payments of the factory liabilities.
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”.
6.7 Cash Office The objectives of cash office are:
Provide payment facility to company’s employees and their parties (suppliers)
Maintain the cash book and then reconcile it with bank statement
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Internship Report by Farah Zaka 6.8 Buying Department Following functions are performed by the buying department of RahimYar Khan Factory.
To buy all production raw materials including all types of material and packing material.
To buy administration department requesting items.
To buy all engineering requesting items (all types of machinery & spare parts).
Purchase of medicine for surgery.
Purchaser of W.C.S.O. seasonally for Karachi & Rahim Yar Khan Factory.
All types of factory purchases through buying department.
Sales of scraped or surplus items of various department relating capital goods
6.9 Human Resource Department This department is responsible for appointing, controlling, motivati and training employees. Functions include
Employment
Transfer and Promotion
Training
Compensation Administration
Health and safety
Benefits and Services
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Maintain relations with labor
Human Resource planning
7. Concluding Remarks for Analysis The different departments in Unilever HPC are very well organized and structured such that all aspects related to planning, manufacturing, purchasing and resource management are covered adequately in their respective departments. Every issue and concern of the plant is given detailed attention and handled properly in the most organized way possible. Safety and Hygiene concerns are given prime importance in each department. All organizational rules are strictly followed in each department. Information flow is kept smooth within each department and team work is promoted.
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8. Observation about any Dilemma faced by Organization The only dilemma that I, as an intern, observed was that information was kept so strictly confidential that information of one department wasn’t allowed to be conveyed even to another department of HPC Plant. This, at times, created troubles for management as employees from one department would not allow an employee from another department to use their department’s computers. This creates ill-feelings between employees of different departments.
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9. Recommendations for Improvement Although the internship program at Unilever is highly commendable but as they say that there is always room for improvement so there are a few things that I would like to recommend so as to make the internship program even more challenging, creative and useful.
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.
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The factory tour should be arranged in the first week of the internship session so that the internees have knowledge of the way the factory works to help them in their internship program.
Most students are not much familiar with using Microsoft Excel. They should be given a training session for it in the first two days as all the working in Unilever is based on Microsoft Excel based files.
There should be weekly presentations where students may share their experience in Unilever to enhance their confidence and make them feel more of a part of Unilever.
There can be some kind of fun activity once every week where students from different institutes may interact and develop their social and creativity skills.
At the end of the internship program, there should be a discussion session of the internees with the all the department managers where they may verbally express their successes and shortcomings and the problems encountered, if any.
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.
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Internship Report by Farah Zaka 2. Understanding the inputs and components of inventory planning and using inventory planning models to derive stock policy for Finished Goods and Raw materials while also optimizing production and inventory to deliver demands plans. 3. Deriving and influencing planning parameters, materials stock holding policies and assumptions. 4. Developing and communicating the master production schedule, materials requirements plans and consequences to the business. 5. Creating rough cut capacity plans, executing agreed manufacturing run strategy, managing and communicating exceptions. 6. Evaluating risks and opportunities and contributing to creation of costed contingency plans and scenarios with support of the finance team. There are three JMs in PP Planning. Mr. Farhan ul Haq deals with planning of raw materials. Mr. Abdullah deals with the planning of packaging materials. Ms. Rubina Naz performs follow-up activities. The PW Planning is handled by Ms. Shumaila Sattar. From what I observed, the planning team in Unilever possesses objective analytical power, learns from experience, is committed towards its team, influences others, has market orientation, product & customer knowledge and gives attention to details.
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 s upervisors. Through these projects, I also got to know of some of my strengths and s hortcomings. 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.
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