Haseeb Intership Report
Haseeb Intership Report
Haseeb Intership Report
PAKISTAN
Internship Report on
Nestle Factory Kabirwala
Submitted By
SESSION 2013-2017
1
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Words are bound and Knowledge is limited to praise Almighty Allah. The
lord of the worlds, The Omnipotent, The Beneficial, The Gracious and The
Merciful.
2
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Kabirwala
Factory
Dedicated to:
3
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
&
Respectable Teachers.
4
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Preface:
Internship is an
integral part of
MBA program.
This effort may
get a student to
get a practical
experience if
right
organization is
selected. During
this internship, a
student comes
to practical
knowledge.
He/she learns
what he has so
far studied. As
an MBA student
I have also done
my internship in
Nestle
Kabirwala
Factory Ltd,
Pakistan.
My learning
experience with
nestle factory
begins with my joining from 01 august, 2016. It consisted of 06 weeks, spending in different departments of
nestle factory. Here I come to know a different and very interesting experience of learning and working with
5
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
people. My internship report contains all my learning and experience and in the end I have done SWOT analysis
of nestle factory and analysis of its financial statements. In the end I have some suggestions for nestle factory.
Acknowledgement:
First, all praises & thanks to Almighty ALLAH that I avail this opportunity for completing this period of
internship, then I pay all my respect and praises to the greatest man of universe, Holy Prophet Muhammad
( PBUH ) for whom all this universe was created.
I am heartily thankful to Mr. ASAD RAUF (Manager Finance & control Department), Miss Saniya Khan
(Finance Specialist), Mr.Umer (Finance Specialist), Miss Farnaz (Management Department) whose
constant guidance and support enabled me to complete the projects assigned during the training, At my section, I
would like to mention Names Miss Saniya Khan whose encouragement, guidance and support from the
initial to the final level enabled me to develop an understanding of my projects at every step during this period. I
am also thankful to every department specially Finance & control Department for their cooperation and support.
They gave me full assistance regarding my area of responsibility in their respective departments. They were very
6
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
cooperative and willing to help when I faced any problem & asked for help. There was a very good learning
environment. I will always remember their cooperation and support.
Lastly, I offer my regards and blessings to all of those who supported me during the completion of my internship.
Executive Summary:
7
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
TABLE OF CONTENTS
Sr Details Page No
No
1 Chapter No 1
Introduction 12
1.1 History of Nestle 13
1.2 Nestle Kabirwala Introduction 14
1.3 Nestle Kabirwala At Glance 16
1.4 History of Development 19
1.5 Business Volume 20
1.6 Competitors 20
2 Chapter No 2
Organizational hierarchy chart 21
2.1 Dept Of Nestle Kabirwala 22
2.2 Number of Employees 23
2.3 Quality Lab 24
3 Chapter No 3
Plan of internship 30
3.1 Deptt Assignmed 30
8
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
9
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Vision
Nestlé’s vision is to be the globally recognized leading Nutrition, Health and Wellness (NHW) Company. Nestle
Pakistan subscribes fully to this vision and the values that come with it.
Mission
To positively enhance the quality of life of people of Pakistan by all that we do through our people, our brands,
products and our Creating Shared Value (CSV) initiatives.
Our Ambition
Nestle Ambition
Our Ambition Our Ambition
To be the leading Nutrition, Health and Wellness Company in Pakistan.
10
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Chapter No 01
Nestle-The Name & Logo:
Nestle was founded by “HENRI NESTLE” who created the trademark of the NEST, a translation of his last
name. In German, Nestle means “LITTLE NEST”. The symbol showing 2 young birds being fed by mother
perched in a nest on an OAK tree depicts in the motherhood, the arm, and loving, caring, protective and sincere
feelings for a mother for her younger ones. So, this symbol helps to give a visual sign that nobody other than
Nestle can care about its consumer friendly. It shows that the Nestle provides the purest food product to its
consumers because it is as sincere with them as a mother. It is universally understood that this reflects the
maternity and affection, and thus helps to draw a visual link between Nestle and its products.
SLOGAN:
11
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
The credit for the foundation of Nestlé entirely goes to a real man
“Henry Nestle”.
He said:
“The thought that my invention could save the lives of so many
Children encounter enormously the financial gain was not the prime
motivation”.
(Henry Nestle 1869)
12
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's
management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first
expansion into new products, with chocolate the Company's second most important activity.
1938 - 1944
Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in
1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped
with the introduction of the Company's newest product, Nescafé, which was a staple drink of the US military.
Nestlé's production and sales rose in the wartime economy.
1944 – 1975
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies
were acquired. In 1947 came the merger with Maggie seasonings and soups. Crosse & Blackwell followed in
1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in
L’Oréal in 1974.
1975 - 1981
Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets.
1981 - 1996+
Nestlé divested a number of businesses1980 - 1984. In 1984, Nestlé's improved bottom line allowed the
Company to launch a new round of acquisitions, the most important being American food giant Carnation.
1996 +
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets
developed into more or less integrated trading areas. Since 1996 there have acquisitions including San Pellegrino
(1997), Spillers Pet foods (1998) and Ralston Purina (2002). There were two major acquisitions in North
America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD
2.6bn acquisition was announced of Chef America, Inc.
13
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Pakistan has pioneered the concept of inducting women milk promoters in its team to educate and encourage
rural women to increase per animal yield. Four teams comprising three women each are currently working in the
field. Results being very encouraging, more teams are planned. By taking this professional help and guidance to
the farmers’ doorsteps, that they otherwise would find difficult to access, coupled with incentives for increased
milk production and a good and prompt return for their milk, the company is playing an important role in creating
opportunities of economic growth for dairy farmers.
14
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Admin Block:
Milk Powders
15
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Milk Reception:
Standardization Hall:
Noodles:
16
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Confectionary:
Utilities:
1.4
The
1980: Established locally By “Mr. Syed Fakhar Imam “as Kabirwala Dairies.
1990: Merge with Nestle`
1992: Maggie Noodle’s Plant was installed
1996: Powder milk Plant was installed (IST Egron)
2002: D.C. (Distribution Center) Establishment
17
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Milk Powders
18
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Noodles
1.6 Competitors
Engro foods
Fouji Foods
Oolpers Milk
Chapter No 02
FACTORY MANAGER
HOUSING COLONY (Faisal
TOTAL Nadeem)
PERFORMANCE BUSINESS SUPPORT
NOODLES Rec&STD LIQUID DAIRY POWDER PLANT FINANCE &
MANAGER MANAGEMENT EXECETIVE
PLANT CONTROL
FACTORY Engg HUMAN QA
LOGISTIC SH & E
RESOURSE
INDUSTRIAL INFORMATION
2.1 Departments
SUPPLY CHAIN of Kabirwala Factory:
PERFORMANCE TECHNOLOGY
19
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Nestlé Kabirwala is headed by the Factory Manager of the company Presently Mr. Faisal Nadeem Directly
reporting to the Factory Manager are the fourteen major Departments. i.e.;
Finance & control Department
Human Resource Department
Logistics Department
Safety health & Environment Department
Industrial Performance Department
Engineering Department
IT Department
Application Group
Rec. & Standardization Department
Liquid Dairy Department
Powder & Noodle Department
Quality Assurance Department
Technical Training Department
Nestlé Distribution Channel
Nestle System:
Nestle has best systems but others are also consulted. Following are the own systems of Nestle
Nestle quality management system-NQMS
Nestle good manufacturing practices-NGMP (production, environment, building, designs)
Safety, health environment-SHE
Total performance management-TPM (make policies to support business)
Nestle continuous excellence-NCE
Nestle Certifications:
(Combination of HACCP related to safety and ISO 9000 related to quality and many more things)
A successful GLOBE system that works for Nestle around the world in order to communicate confidential data.
As a result of management commitment and dedicated effort and hard work Of Kabirwala factory staff at all
levels KBF got the high status in milk powders category amongst all the Nestle factories around the world in
2001. It was achieved because of continuous improvement drive and passion to become best in the World.
Kabirwala Factory has got the potential of expansion in existing and extension in the new categories in the future.
20
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Well trained and skilled staff carries out all analysis to assure the
best quality products. A brief view of all these labs in QA is as
under:
Reception Lab:
21
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
taste
22
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Physical-Chemical Lab:
This is the basic lab in QA which assures the quality of raw material, inline products & finished products. All the
quality and quantity analysis are performed.
These quality tests include;
PH
Moisture
Total ash
Fat content
Solid not fat content
Protein
Vitamin C
Minerals
Turbidity
Sensory Lab:
In sensory lab consumer based tests are done to assure the best quality of products. In sensory lab all the products
are tasted before release. A trained panel tastes all the products and evaluate on the basis of four parameters taste,
color, smell, appearance. If 80% or more panelists accept all parameters then product is released. If 60% or more
panelists accept all the parameters then exceptional release is done. If less then 60% panelist accept all
parameters then product is blocked.
There are three tasting sessions in a day.
Fresh products
Keeping quality
Consumer complaints
All sessions takes place regularly. In keeping quality session shelf life of products are studied. In last session
consumer complaints are addressed and verified.
In every session, about 10 to 50 samples are evaluated and the panelist use in/out test for ranking of every
product i.e.
Well in
Just in
Just Out
Well out
Extra session may also be carried out for other purpose e.g. for complaint samples, for trail products, for rework
analysis etc.
Finished products which are evaluated in this lab are:
UHT milk
Nido
Everyday tea whitener
23
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Maggi noodles
Soup mass
White butter
Salted butter
Packaging Lab:
Packaging lab is one of most important part of QA. In this lab all test about the packaging material are
performed. There are three types of packaging materials are used
Primary packaging
Secondary packaging
Tertiary packaging
Width, length, height and weight of package are measured and color is checked.
Packaging lab falls under the sensory evaluation lab.
In this lab following tests are performed:
Analyze the design of the package
Analyze the reel width
Event Sampling:
It is the type of the sampling which is done when a machine is restarted after certain reason e.g. mechanical
problems etc.The event samples are incubated for 5 days thermophiles temperature and analyzed pH meter and
also visual examination to check any abnormality.
24
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
What is hygiene?
Hygiene is the science of maintaining cleanliness leading to good health OR Maintaining all conditions and
measures necessary to ensure safety and suitability throughout the supply chain is Food Hygiene
The Hygiene of the enterprise, personal hygiene and the quality of the products are very dependent. In food
industry, non-compliance with the rules of hygiene during processing and manufacturing is most of the time main
reason to number of problems related to Quality.
1. Personal Hygiene:
In the context of personal hygiene following instructions are given to all the personnel working in the factory.
And different measures are being taken to ensure the implementation of these rules and regulations.
The segregation or physical separation of different activities along with its corresponding areas based on the rules
of hygiene level is called ZONING.
Zoning is required in order to prevent contaminations generating or present in one area to pass on or to enter into
another processing area. Zoning is especially of high importance in the sensitive areas and its surrounding. The
more the sensitive product or the consumer or both, more is the importance of zoning of that area.
Appropriate cleaning for prevention must be defined for each zone. In choosing the method of cleaning, the
overall aim is to reduce risks of microbial growth in the environment, which in turn reduces risks of
contamination of the line. Based on the risk of contamination or chances of being contaminated the areas are
defined into THREE ZONES or THREE HYGIENE LEVELS.
SPECIFICATIONS OF ZONING:
25
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Procedure:
Put on hygiene Cap
Put on face mask in case of a person having beard.
Wear hygiene shoes for permanent employees
(In case of visitors) Take shoes cover from cleaned side, sit on the seat, wear 1 cover on shoes and take
your foot to the cleaned area.
Similarly wear other shoe cover on 2nd shoe and take your foot to the cleaned area.
Disinfect your hands by Ethanol or by SPIT ACID.
Cleaning Practices
What is cleaning?
1. Dry Cleaning.
2. Controlled Wet Cleaning.
3. Wet cleaning (CIP).
This classification is strictly based on the Hygiene Zone & water activity in the zone
1. DRY CLEANING:
26
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
This mode of cleaning is applied in those areas where products are dry processed or where water is prohibited to
prevent microbial growth. At powder plant mostly dry cleaning is done of that surfaces which are in direct
contact with food during processing.
1. Red:
Red cleaning tools can only be used for the inside cleaning of the surfaces of any equipment which is in
direct contact with the food in high hygiene area.
2. Green:
For outside cleaning of equipment’s in high hygiene area.
3. Yellow:
For floor cleaning of high hygiene areas.
All finished products must be complying with the relevant laws and regulations of the country where the
product is marketed. For hazardous chemical agents national regulatory norms are considered as safety
standards of country. Raw materials must comply with the regulatory standards of the country where the
raw material are used. We must apply the same minimum standards of food safety all over the world.
Internal guidance values must be respected in product development and manufacturing. Corrective
measures must be applied to ensure that the new batch of products complies with the values. For UN
approved or prohibited chemicals, the “zero tolerance” principles applied. Principles in Management of
Chemical Hazards: Management of chemical contaminants starts with the implementation of
prerequisites program. These include:
Good agricultural practice
Good animal husbandry practice
Good manufacturing & warehouse practice
Supplier management (provision of valid and thorough specifications, audit and approval of
suppliers, monitoring supplier performance and follow-up)
Training of all personnel
Traceability (history about material).
Chapter No 03
I joined the prestigious organization Nestle Factory Kabirwala Pakistan for my internship on august 01, 2016. I was
accompanied by 2 other internees. The internship scheduled was for six weeks. The schedule was provided to me on
27
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
my very first day and I were asked to conduct my activities as per schedule. Nestle Kabirwala don’t require from
internee to work like staff. For internship trainees briefing and observation method is used to train them.
I have done my internship is Finance and control department of Nestle factory Kabirwala Pakistan.
Finance department is one of the biggest department in the Nestle Factory Kabirwala Pakistan, which is responsible
for provision of efficient and effective accounting and budget. The feasibility of extending financial, administrative,
technical facilities is control by this department. It is also responsible for internal audit of Nestle Factory. It is
headed by Factory control (Finance Manager) Mr.Asad Rauf. The duties and functions of a typical finance
department can be classified into two generic categories:
1. Planning
2. Controlling
These activities are inter-related and inseparable because if there is no planning these will not be any control.
Therefore, planning and control move together. Planning refers to the activities, which bridge the gap from the
starting point to the terminal point. Planning in the finance department under reviews refers to the activities of cash
flow and budget preparation. It has four divisions, which are as under:
Revenue Accounting
General Accounting
Budget and Financial Management
Revenue Accounting.
Revenue accounting division deal all factories situated in all over the Pakistan. All factories send their revenue
report to this department on monthly basis. It also deals with factories problems and needs. Revenue division also
conduct internal audit.
General Accounting.
All operations related to accounting have been performing in this factory. This factory is also responsible for
preparing annual report and financial statement.
Chapter No 04
28
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
PROJECT NO 1
Reception and STD.
MILK RECEPTION
When the tanker enters into the factory from gate no 3 then reception
Lab, the milk samples taken from the tanker are analyzed for fat%,
APT, COB, organoleptic, adulteration, pH, antibiotic and sodium%.
When the results fulfill the prescribed standards, the milk is weighed
and stored at 4ºC±2ºC in insulated silos of accumulative capacity of
2 mio liter approx after chilling to 4ºC.
Reception Lab
29
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Along with the quality tests, these observations are considered before Reception
1. Ensure that reception pumps and reception lines (from pumps to raw milk storage tanks)
is ok.
30
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
(2) Cleaning with caustic soda, here filling and circulation is done. Time is 3 minute.
(3) Clearing with condensed water. This water then goes to reused water.
(5) Then tankers are weighed and observed weight of milk is compared with actual weight in lines. There is also a
flow meter to check weight.
Milk Cream
Milk Reception Thermization
separation
Liquid Dairy
Standardization Mineral Addition
Powder Plant
31
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
The milk received from tankers is fed to 4 Silos .Then it goes to separator & clarifier which separates slug from
milk. Clarified milk is fed to PHE (plate heat exchanger).
Regeneration
Heating
Cooling
Regeneration
First Clarified milk having temperature of about 6°c to 10°c is
passed through this section. Its temperature goes up to 35°c.
Here temperature of milk rises from heat regenerated from milk
coming from heating section.
Heating
Then milk is passed through heating section and its temperature goes up to 85°c .It is kept in holding tubes for 60
sec .Again it passes through regeneration section , here hot milk exchange its heat with new coming milk and
makes new milk temperature 35°c and its temperature about 30°c. Here heating media is hot water.
Cooling
Then milk is passed through cooling section. Where ice water having temperature about 2°c-3°c cools down the
milk to about 10°c.Then this milk goes to 10 thermized milk silos (TMS).
Skimming
Milk from thermized silos goes to Separator and Skimming section, where cream is separated from milk and
skimmed residues. Process is that milk goes to skimmers which separate cream and DCM (de creamed milk).
Then it is fed to stand mate which accordingly dose the cream in DCM. Then this milk is fed to SMT
(standardized milk tank). Extra cream is stored in cream tank for further treatment.
Cold Skimmer 1
Cold Skimmer 2
Warm Skimmer
Cold skimmer is used for milk required for powder production plant while warm skimmer is used for UHT Milk.
32
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
minerals also go to stand mate and from stand mate milk finally goes to UHT SMT. Now, Milk is ready and it
goes to UHT and then filling and packing. At UHT SMT role of STD&REC finishes. If Powder milk is to be
made, no slurry is made and mixture is directly added at SMT.
33
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
STD
SCANIMA BUILDING
34
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
At scanima, different vitamins and oils are dosed in milk to provide extra power to milk. There are different
materials which are dosed according to recipe they are 20.
2. Dipotassium Phosphate
3. Salt NaCl Refined (Sod. chloride)
4. Oil Palm Non Hydrogenated
5. Lecithin Soya Liquid INS322 10
6. Sodium Tripolyphosphate
7. Disodium Phosphate Anhd INS339
8. Ferric Pyrophosphate 20-22% Iron
9. Emulsifier Recodan/ RS 100 20kg
10. Vitamin A Acetate Type 325CWS 25kg
11. Vitamin C Sodium Ascorbate
12. Vitamin D3 Dry 100 CWS/A 1kg
13. Potassium Citrate
14. Oil Palm Olein SF 190kg
15. Vitamin Premix Dairy 8031A
16. Vanillin Rhovanil Extra Pure Rhodia Food
17. Vitamin B12 0.1% Water Soluble
18. Oil Mix No 152B 920kg
19. Carrageenan Lactarin MV306 INS407
20. Vitamin Premix Dairy 8053.
Wet Tipping
From wet tipping powders are tipped and transferred to silo in scanima building by pumping, where slurry is
made and added as per recipe and recombination.
From wet tipping following powders are tipped.
1. Sugar
2. Calcium Carbonate
3. MSK
4. FCMP RYK
5. NIDO Bunyad Rework
6. NIDO Rework
7. Sweet Whey
8. NIDO 1+ Rework
9. Lactose
10. Everyday PPP Rework
35
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Milk for powder plant is stored in Skimmed milk tank (SMT) and then to evaporator feed line.
Milk for Dairy plant is stored in UHT SMT and then after testing transferred to UHT Plant.
Separating Section:
In this section, the butter is separated from milk through sieves.
Milk is send to balance tank through pump and then again send to
butter milk tank through pump. Now the butter send to conveyer
section.
Conveyer Section:
In this section, the butter is passed forward through conveyers and
compressed between sieves which is present at start and at the end of the conveyer section. Compression
is done for the separation of remaining milk from butter. Now the butter send to storage tank.
Clarification
In this section clarified butter in the butter oil. There are
three type of clarifier
1. Clarifier no 1
2. Clarifier no 2
3. Clarifier no 3
In Clarifier no 1 only 75% butter oil extracted from butter.
36
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
While in clarifier no 2, only 90% butter oil is extracted from butter and in clarifier no 3, just 99.9% butter oil is
extracted. Externally no uses of butter oil. Butter oil used just in the production of powder milk, otherwise butter
oil is stored in RP store.
Nestle Kabirwala was produce Desi ghee but now nestle Kabirwala not produced Desi ghee.
Storage Tank:
In this section, butter is stored and move forward
by conveyers. After that butter send for packing
through pump.
Observations
There is some safety issue, I observed that workers are walking in STD building
without safety cap.
PROJECT NO 2
Audit of Al-khan Catering Company in nestle.
37
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
PROJECT NO 3
First of all I observed loading area, a truck was loaded in that area with scrap material which included Hard
Aluminum, MS Scrap (pipes, Angles, Iron pieces, wires etc).
Wooden pallets which were in useful condition were there in scrap area to be scrapped.
38
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
NOTE: - This is an unbiased report it could be different in others perspective. It was all about my on
observation.
PROJECT NO 4
39
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
PROJECT NO 5
Stock counting of Fair Fresh Shop.
Observations Dated:22.08.2016
40
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
PROJECT NO 6
First i went In RP Store and meet with Mr. Khurram. He gave me orientation about store and then
provided safety helmet and safety jacket. After that i went inside the warehouse no 901. First of
all i just overview of store.And saw the store of one glance , in this store raw and packaging
material are available. then i start to physical verification of Assets. Inside the store lifter way is
11 feet wide. And have so many bins with separate numbers. Every production plant material is
available in this store and according to need material is transmitted to that specific production
plant.
We verified stock in warehouse no 901,we analyze the stock according to system list and every
stock is according to list. Some material shown in above table And all lists are attached with
report.
41
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Vender
Wholesalers
Sr no Lines
shops Code
1 301
2 305
In warehouse no 901 ,there 7 lines , 3 300 in every lines different materials
available ,that line codes as follow: 4 306
5 311
6 307
7 407
42
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
1. SU (Storage Unit)
2. Non SU (non-storage unit)
1. SU (Storage Unit)
In Storage unit full pallet material issued.
In Warehouse no 901 following lines code used and according to that code following material is
placed ;
Lines Material
code Description
301 Packaging Stock
305 Packaging Stock
300 Raw Material
306 Raw Material
On line code 301 & 305 all packaging stock available. Like packing cartons pallet, everyday
packing pallet and milk pack cartons pallets etc.
On line code 300 & 306 all raw material stock available. Like white sugar , Floor and cream milk
powder etc.
In Warehouse no 901 following lines code used and according to that code following material is
placed ;
43
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
On line code 311 all packaging stock available and used as per need. Like Rapping Tap etc.
On line code 307 & 407 all raw and control stock available (Noodles items). Like Sugar, super-
sill (use as salt) , carrots etc.
Raw Material
Re-works Material
The material that is not used with in specific time than that material is used for re-works.
Semi-Finished Goods
1. Lactose
2. Calcium carbonate
3. Sweet whay (ice cream)
4. Vitamins
5. Flavor cream.
44
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
PROJECT NO 7
First I went in the powder production plant and meet with Mr.DANISH (10164324). And then I went with
Mr.Danish to the powder production plant area. First of all i analyze LECITHIN (oil) , one tank contains 1000 kg
oil, and one layer of tank contains 200kg.
Sr # Tank Values(oil) Kg
1 1 800 -
2 2 375 -
3 3(small) 150 -
4 4(Small 150 -
)
5 5(small) 150 -
Total 1625
According to system, 1720kg oil is available in the production plant, 1625kg is available in the production area,
and remaining oil (1720-1625=95kg) 95 kg is used for dozing during 5;30am to 12:15pm.
In stock we found…
In bucket 12.14kg
Ferric Pyrophosphate.
This is also mineral.
45
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
In bucket 8.56kg.
Physically o.oo.
In bucket 22.048.
The mixture of Ferric & zinc and msk is ued for production of powder milk.
Sugar.
Sugar is used in everyday.
K-TRON HOPPER=24KG.
Maltose.(Glucose)
Maltose is used for vitamins.
Physically is 4500kg.
ADRIA HOPPER=689KG.
K-TRON HOPPER=60KG.
Nido Tests
Following tests are performed for Nido….
Dirt test
Wet ability
Miscibility
State of dissolution (SOD)
White specks
Sieve test
46
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Moisture
Viscosity Total solids with refract meter
Everyday Tests
Sieve test
Dirt test
T-test
Organoleptic test.
Packaging Area
Then i went in packaging area. We observed how packaging take place. We analyzed that material is used in the
production of Nido and everyday.
And i tally all the physical powder of everyday and nestle bunyad according to list….etc.
STRENGTH.
Everything is working according to rules and regulation and the staff coordination is very good.
Cleanliness is very good.
WEAKNESS.
Mask was not wore properly.
47
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
It’s my first experience for me to work in multinational organization, which provided me an opportunity to
observe different between theory and practice and I leant more and more. This experience also broader my vision
and mission and confidence.
As an internee I spent good time in learning and was rewarded for my best efforts , learnt to deal with different
situations , had experience of organization, s working environment which affect an employee performance and
attitude towards work, had good time in learning.
Confidence, on time of decision making, consistency , hard work, team work , seeking success out of dark,
innovation , creativity, organization survival and customer handling techniques are the key learning’s out of my
job and I would like to say that it will be one of my best skill that would remain with me and help me in the
coming life which offer many challenges. The environment of organization is totally different when it comes to
profitability and existence.
I learnt about professional life. How to work in team. Work environment of nestle is very good and all staff and
management team is very cooperative. I ever feel confident to learn from here. I am heartily thankful all the team
of nestle. Nestle not compromised on Quality and Safety of employees.
Chapter No 05
48
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Finance
Finance Manager 01
Finance Controller Of Noodle Plant. 01
Finance controller of Liquid Dairy. 01
Finance Controller of Powder Plant. 01
Finance control over all Factory(FPS, Scrape yard, Water waste Management). 01
Head of Reconciliation. 01
Chapter No 06
The accounts department of nestle factory is performing its functions computerized. Different books of
account relating with other departments are maintained here through computer software (SAP). With the help
of these books of accounts, accountant prepares daily , weekly , monthly, quarterly, semi-annually and yearly
financial statements.
49
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Finance system of nestle factory includes from how to generate finance& where to utilized it. The primary
focus of nestle factory financial system is on automating processes within the factory and to develop robust
database reporting. These data bases will form the foundation on which other applications will be built.
Comparative statement of Financial Conditions
This form is in tubular form and as the name indications it helps in analyzing the financial condition of the
firm from all perspectives. In this form factory has to do the RATION ANALYSIS of the financial statement
submitted.
All the analysis that is covered by this form is described below:
Liquidity Ratio
Activity Ratio
Profibility Ratio
Debt Ratio.
SAP stands for Systems Applications and Products in Data Processing. Designed and developed by 5 IBM
engineers during the 1970s as a standard based software alternative to custom built ERP software, SAP has come
a long way. SAP has been in the forefront of ERP software ever since.
SAP develops ERP products to be used by companies to manage their enterprise. This includes
managing their day to day operations, logistics, finances, month end, quarter end and yearly activities, reporting,
HR etc. Although there are a couple of other ERP vendors who do the same, the key differentiator for SAP is the
way in which SAP integrates all these operations and makes for a seamless system that is both easy to use and at
the same time sophisticated enough to include all kinds of complex activities that are needed for any kind of
enterprise. Examples of some of these activities could, be running Material resource planning, recruiting and
managing an employee’s lifecycle, disbursing payrolls, recording all financial transactions and drawing balance
sheets and P/L statements of the company etc. Now imagine a single system that takes care of all these diverse
activities and still keep them well integrated.
SAP was initially designed to be run on the mainframe and was called that release was called R/2
(Release 2). SAP quickly caught on to the client server model with a later release called R/3 and this was the
most popular version of SAP. After R/3, later versions of their core software were launched called Enterprise
Central Component (ECC). The automation needs of an enterprise are endless. SAP soon realized that
corporations needed business intelligence to mine data from their daily operational data and extract meaningful
trends that could enable further business opportunities. SAP BW was born and morphed into BI after buying out
Business Objects (BO).
After the hugely successful R/3, SAP created more and more niche software like Customer Relationship
Management (CRM), SRM, XI (now called Process Integration or PI) and once again living up to the standards
of SAP by maintaining tight integration with their core ECC software. Through the process of developing these
software components, SAP has slowly moved from standard client server architecture to a completely web-based
architecture where every transaction can be run from just a browser. These new dimension products developed on
the web standards based framework (NetWeaver) are all under new umbrella called mySAP.
50
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
BOM
6.4
Mobilization of funds
Nestle factory is the most efficient organs of the economy in the mobilization of resources and making a
profitable pool of these resources. Nestlé Factory its funds through:
Shares
Debentures
51
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Nestle has a treasury deptt, head office based it controls all the inflow and outflow of funds. Dealing with all the
institutional investors is done by it.
Chapter No 07
Ratio Analysis
7.1 Liquidity Ratio
1. Current Ratio
2015 2014
Current Assets 180,295,980,00 18405780000
Current Liability 251,431,120,00 27777240000
Interpretation:
This ratio shows how many times current assets cover current liability and the strength of the organization to pay
immediate liabilities. It means that organization assets are good and they can easily pay its liabilities.
2015 2014
Current Assets 180.295.980,00 18405780000
Inventory -- --
Current Liability 251,431,120,00 27777240000
0.71 0.71
Interpretation:
52
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
This ratio shows how many times current assets over current liability and the strength of the organization to pay
immediate liabilities and there is no inventory. It means that organization assets are good and they can easily pay
its liabilities.
2015 2014
Current Assets 180,295,980,00 18405780000
Current Liability 251,431,120,00 27777240000
-711,351,400,0 -9371460000
Interpretation:
This formula shows that current assets of the organization is not in good position. It means that organization
assets is not in that form that the organization pay liabilities easily.
1. Debt Ratio
2015 2014
Total Liabilities 800,000,000,0 6951459000
Interpretation:
Debt ratio of nestle is suitable in each year because the nestle assets are increase gradually. That is beneficial foe
nestle.
Interpretation:
Debt-to-equity is suitable for nestle because the total debt of nestle is less and equity is more. This is suitable for
nestle.
53
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
3. Debt Ratio
2015 2014
Total Liability 366,297,020,00 289103070000
Total Asset 492,674,640,00 51730695000
0.74 5.58
2015 2014
1.146 0.18
Interpretation:
This ratio shows how many times an organization can pay their interest expense out of EBIT.
2015 2014
Net Profit 8626558000 77977654000
Interpretation:
The net profit of nestle has larger and the sale also increase. This is good for nestle.
3. Return on Equity
54
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
2015 2014
Net Profit 8626558000 7797654000
Shareholder Equity 126,377,620,00 12627625000
68% 61%
Interpretation:
This ratio expresses the return on shareholder equity. This ratio shows that how much profit nestle is supported by
shareholder.
4. Return on Asset
2015 2014
Net Profit 8626558000 7797654000
Total asset 49267464000 35165492000
1.75 0.22
Interpretation:
This ratio expresses the capacity of earning profit by a organization on its total assets employed in the business.
Nestle profit increase because asset is increased.
2015 2014
Sales 102985916000 96457743000
Fixed Assets 31237866000 33324915000
3.29 2.89
Interpretation:
This ratio indicates how well the fixed assets are being utilized. This ratio expresses the part of fixed assets in
generating sales. But in 2014 nestle less utilized the fixed asset than fixed assets of 2015.
55
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Interpretation:
This ratio represents the amount of revenue generated by a company as a result of its assets on hand. This shows
the role/part of total assets in generating sales. In this organization total assets turnover ratio is good.
Earnings per Share = Earnings Available for Common Stock / Total number of shares
2015 2014
Earnings Available for 8626558000 7797654000
Common Stock
Total number of shares 45349584 45349584
190.22 % 171.20%
2015 2014
Divided paid 8619505000 7032581000
Total number of shares 45349584 45349584
190% 155%
56
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Chapter No 08
SWOT ANALYSIS
8.1 Strengths
1. Nestle has leading market position by operating all over the world.
2. Nestle has very much trained staff, other factories prefer to hire Nestle staff like engro foods , fouji foods etc.
3. Nestle has high brand recall. It is recognized by customers all over the country.
4. Dedicated workforce in the back offices of nestle.
6. Nestle engineers are skilled persons even other companies obtain their services in some technical work.
8.2 Weakness
1. The centralized system is one of the biggest obstacles in long term success of Nestle.
8.3 Opportunities’
Opportunity exist in the external environment. They need to be recognized and used according to the business being
run. An opportunity recognized and utilized at the right time will be the strength of tomorrow. Such kind of
opportunity aslo exist for nestle in the external environment. Some of them are as follow:
57
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
1. Nestle has huge potential in middle east if nestle upgrades its machinery.
2. Nestle can generate more revenue by attracting customers through wen and mobile sms system.
3. Nestle can attract Pakistanis who are living in backward areas of Pakistan.
8.4 Threats
3. Political interference in HR policies like hiring and recruiting show favoritism and nepotism.
6. Political instability.
I choose nestle, because it is a multinational company and I want to gain experience under multinational
company. Because nestle provided Quality food. I learnt more and my all seniors (staff of nestle) are very
cooperative and help out in my learning. In nestle kabirwala all the rules and regulations are followed by
everybody. It was very good experience and its my pleasure that I worked out in Nestle factory.
Chapter No 09
CONCLUSION:
58
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
Finally I reached a conclusion; Nestle has a huge workforce and workforce is just like an assets for the
organization. Nestle is having a healthy structure of its functioning departments. Intense focus on career
development, honesty and integrity pf all stakeholders and most importantly performance appraisal will leads to
better performance and ultimately corporation success. Nestle is the good organization. A person can get more
benefit for long term carrier working. Management of the Nestle is very hardworking and Nestle is place where I
have done in my internship. I appreciate the mess system of nestle because it’s my first experience and saw all
top level management and low level management are in same table. Environment of nestle is very impressive.
Nestle should chance to other employee to promote their skills in the organization.
Chapter No 10
REFERENCES
Website
www.nestle.com.pk
59
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
60
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
61
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
62
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
63
NESTLE KABIRWALA FACTORY LTD. PAKISTAN
64