Pepsi Cola
Pepsi Cola
Pepsi Cola
EXECUTIVE SUMMARY
Pepsi cola started in the January 1898, from a small Drug store in the
city of North Carolina. The owner of the Drug store, Mr. Caleb Bradham,
prepared a drink, which the customers called "the Bred Drink". Bred
registered this drink with the name of Pepsi Cola in 1903. Then he started
his own production at Macro level and established his own company. The
business expanded and this drink got fame time. In 1909 this company
reached to 24 states of America with more than 250 dealers. The very first
packing of Pepsi was in 16.5 ounce.
With the efforts of the Sales & Marketing Department, Pepsi got so
much fame that it established new plants at a rate of thirty per annum. In
1985 the design of the bottle has been changed after 20 years. And a new
and attractive packaging has been offered .
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1. Multan (div)
2. Bahawalpur (div)
3. Bahawalnager
4. Hasilpur
5. Rahim yar khan
6. Sadiqabad
SHAMIM & COMPANY (PVT.) LIMITED
::.Registered Office Address: DISTRICT JAIL ROAD, MULTAN
The basic difference between the direct and the indirect delivery
system is that in a direct distribution system, the company spends its own
resources while in a indirect distribution, the delaer spends hi own resources
on all the factors which increased the sale. The company also has its depots
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in different cities. Which helps a lot in increasing its sale and directing the
distribution system. They are in
OBJECTIVE
FUTURE PLANNING
ACHIEVEMENTS
Recently the company has achieved ISO 9002 Certificate, For its best
production and services. The company has already received different awards
for its best quality, maximum production and even growth. They are
Currently the company holds more than 80% of the market share in its
franchise area. The company is investing a lot of capital on the development
of its infrastructure and strengthening its dealers network. For this purpose
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Post Mix Department installs machine at any suitable place with the
cash security of Rs, 30000. Along with Post Mix machine, they also provide
counter, water tank, water filter(s), disposable glasses, disposable plates,
machine maintenance and service. The cooling system is almost like
refrigerator or fridge cooling system. However gas cylinders are attached to
the machine for gas mixing. Syrup and water mix-up happens in wolves at-4
C .So the customer gets fresh, cool product in no time. The water used in
fountain fresh machines is acquired from locally available source, It is stored
in water tank and filtered once, twice or thrice depending on the purity of the
water. With one syrup tank of PEPSI, DEW and 7'up, equivalent of 19 cases
standard bottle is obtained, While syrup cylinder of MIRINDA has the
capacity of providing equivalent of 16 cases standard product.
Until now total 122 has been installed in different districts and approx.
114 are working while others needs repair. There is further demand of about
100 machine
POST-MIX SYSTEM
The syrup mixed with water and CO2 at the customer account. POST-
MIX containers can be bifurcated in Transfer Tank.
The Post Mix system differs slightly in principle from the PRE-mix
system. The difference is related to the way the finished beverage is
produced for sale to the consumer. The bottle fill the beverage syrup into
stainless steel tanks at production plant and transport the tanks to retail
outlets. The operation of POST -MIX system is as follows.
Compressed CO2 Gas flows from the storage cylinder through gas a
pressure regulator where it is reduced to the working pressure of the
carbonator, then through a pressure relief valve and back flow check valve to
a juncture where the CO2 line gets divided. One segment going to secondary
regulators and the other to carbonators and the other to carbonator tanks.
The flow of CO2 from the secondary regulators goes to the syrup
containers. Syrup flows from the containers to the refrigeration unit and then
to the dispensing valve. The CO2 gas directed to the carbonator assembly
enter a small capacity tank which contains potable water automatically
controlled to a predetermined level in addition to the tank. Its safety valve,
the carbonator assembly includes a motor driven water pump to force the
potable water into the tank against the CO2 pressure. The carbonated water
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Activate a valve until pump starts. Close valve and allow pump to
cycle. Dispense drinks from each valve to purge and remaining sanitizer
from the sytrup lines and establish quality carbonation in the carbonator .
TRANSFER TANKS
The most common packaging from for both PRE-MIX and Post Mix
product is the Stainless Steel Tank. This tank comes as either a single entry
or double entry system. Each has specific advantages and disadvantages.
Both PRE-MIX and Post Mix product can be stored in either single or
double entry system
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Frequency of calls.
Control of stock levels.
CO2 CYLINDERS
Outlft Machine Stock 1 Cylinder
Outlet Reserve Stock 1 Cylinder
Factory Stock 1 Cylinder
Total: - 3 Cylinders
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SALES
• Security Deposit Receipt.
• Legal Agreement papers.
• Installation site sheet
• Installation & pick up order .
• Quality control functions.
SERVICE
* Preventive maintenance card. * Wastage Record.
* Complaints log. * Spares unage Record
* Quality control & sanitation.
DELIVERY
• Delivery Card.
• Sales History Card Account Cash Record
WORKSHOP
• Daily sale & stock report
• Issue / Collection slip.
• Future needs Technical Development.
• Repair Section
• Store Section
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OUTLET SELECTION
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SUGGESTIONS
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PROBLEMS
There is job dissatisfaction and very low motivation on the staff due to:
Low salary
Daily allowance has been eliminated
Overtime is rewarded in terms of holidays not in monetary terms.
According to technicians, they normally do not get a chance of
making allowed vacations due to workload so the extra holidays are of
no use for them.
Higher positions are filled from outside, people within the department
should be promoted to the chief technician and sales supervisor level.
Technicians perform the responsibility of salesman for which they get
just Rs. 2.50 per cylinder that is very low.
Computer is present in the S.O. office but no one in the department is
really qualified to get use of it.
Sales targets are set without the consent of staff.
Post Mix staff has no knowledge ofISO.
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owners have the Post Mix office number complaints and the response is
efficient.
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SHIPPING DEPARTMENT
Shipping is a very critical area for any beverage organization. It serves
the role of coordinator or middleman between production and sales.
Ensuring appropriate quantity and on time availability of empty & liquid
stock is utmost important. Any malfunction in empty receiving, storage,
supply to plants, liquid stock and distribution directly affects sales. This is a
complete chain or cycle and any weak link, bottle neck or disturbance will
slowdown the whole operations.
Shipping department has following main functions.
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PEPSI TOWN
Due to shortage of space in godown # I, empty is unloaded at godown
# 2 or sent to PEPSI town. This empty is returned when storage space
becomes available at godown # I. Empty is supplied to plant when required
by production people in specific quantity. the delivery is through forklifts.
Daily production report.
Clearance Godown
& payment
i) For the base market salesman directly take load from factory godown.
At the end of the day, they return the empty and deposit daily cash.
ii) NBC has five depots to ensure smooth, regular supply and stock
maintenance in other cities covering whole francluse area. The depots
are treated like distributor /dealers. Shipping, sales and MIS staff
works in depots. Trucks are made available by the company on
contract to supply liquid and return empty frame depots settlement
sheet of depots in prepared and cleared by the transfer of cash from
dealer's account to company accounts.
iii) Some dealers whose area is not base or under any depot's range also
take load directly from factory and clear their settlement sheet by cash
payment.
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The procedure for all three types of parties is same. The salesman /
drives deposits empty slip to MIS computer operator. Liquid slip is issued to
the salesman on which the quantity, size and brands are specified. Vehicle is
loaded in the DP godown monitored cleared by stock incharge.
Issued on FIFO (first in, first out) basis via validity of production
dates. It ensures that product is not expired, bad taste and visually
unattractive.
Shift wise record of daily transactions is maintained.
These is physical stock taking for physical but not for expiry dates.
All Pepsi Cola carbonated soft drinks are packed in glass/PET bottles
or post mix tanks. This is called primary packaging. Filled glass/PET bottles
are further secured by means of plastic or wooden shells/cases called
secondary packaging.
Empty IN Liquid
Stocktaking of empty at the Stocktaking in the morning and
beginning Of shift (copy) entry on Liquid Received and
Empty unloading Issued form Full in and liquid
Checking for empty slips to MIS, receive from Shamim & co Is
Dealer and an office copy added on the form.
Addition of new arrival in copy
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Environmental conditions are not good. Shipping staff and labour has
to work whole day in sales vehicles and forklift's. It causes health
problem for them liquid is supplied to depots based on daily sales and
current stock position. But many times they receive unneeded liquid.
They are sent Pepsi. The root cause is shortage of storage space at DP
godown and production and shipping.
Pepsi town is a big land area. Where a huge stock of empty is lying.
Breakage, rejected empty, TIN packs and other useless material must
be sale out by getting maximum price.
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QUALITY CONTROL
* Calibration
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Laboratoryequipment's
Production equipment's
υ Incoming raw material testing
υ In process testing
WATER TREATMENT
WATER TESTS
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The frequency of test for water treatment is after an hour and for washer
final rinser is once in a shift.
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PRODUCTION
Bottles Washing Plant (Please See Appendix): -
In the plant, syrup (from syrup tanks) and water (from water
treatment) is mixed at a specific ratio called flow mix. The mixture then
moves to carbo cooler where carbonation of product i.e. absorption of CO2
in the syrup at low temperature is done. It then moves to filler where product
is filled in empty bottles and crown caps are put on it. The final product
moves towards packing machine through conveyer however most of the time
bottles are packed into cases manually.
IN PROCESS TESTING
BRIX INVERSION TEST
The purpose is to break the sugar molecule into simple molecule of
glucose and fructose, Inversion is performed to confirm on-line brix target
.the test is taken after an hour of starting tank on production line.
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liquid.
pH TESTING
pH scale indicates the amount of acidity or alkalinity. pH is measured
for Raw water, treated water, control drink, finished beverage, T.A. testing
and incoming raw material. The purpose of the test is to define the line Brix.
This also helps in predicting the sensory attributes of the beverage.
The purpose is to test the incoming sugar for its ash contents in order
to define quality. Sugar ash is primary indicator of sugar sensory
performance in a beverage. It is comprised of organic and in organic salts
left over from the refining process. The sugar is used in syrup making.
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the analysis are outside printing, inside printing, color, shell or liner flash,
cracks, band etc.
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Pre-inspection Safety
Tank# Product Appearance Washing Filling Performed
O-ring Wolves
CALIBRATION
The calibration ensures that the equipment is fit for its intended use.
Calibration is very integral and critical because instruments are eyes into the
process and if they are not working properly, the process may produce
unexpected or undesired results.
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HYDROMETER CALIBRATION
The purpose is to test the non-existence in Brix reading and note if
difference existed.
THERMOMETER CALIBRATION
To assure that thermometers are properly tested for their exact
temperature reading. The calibration is for:
SUGGESTIONS
In the production hall, very concerned person must use masks, gloves and
safety glasses.
Earplugs should be provided to the people working in the production hall.
Proper sitting room should be provided to CO2 supervisor to keep the
spare parts, tools and documents safely.
Labor should wear neat and clean uniform.
Proper arrangement should be for draining
Many under 18 age boys are working in production.
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Shamim & co has been in yellow color after the standard percentage is
increased.
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MIS
In today's fast moving business environment, organizations are rapidly
moving towards computerization and information systems.
The software system have two basic parts and these are developed in
some programming language. The post important part of any information
system is database. The database is the basic structure of data and defines
how data is organized, stored and retired from memory. The database
operates at the back end. At the front end, data is entered and retired through
input screens.
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Sales system
Cash system
Shipping system
Post mix system
The basic input of this system is empties slip, liquid out slip, full in slip
by order sIps. empty short slip, the reports of the system are
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system logs all accounts and shows balance sheet & profit & loss statement
incorporating every transaction.
Payroll System: -
There is separate payroll system for Shamim & co and Friend's
Agency. The output of the system is pay slips and payroll report at the end
of month. Payroll report incorporates.
Suggestions: -
The future programs of the department is:
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There should be formal web site and e-mail accounts of employees in the
organization. A small computer books library will help the staff to add their
skills.
Accommodation
Holidays
14 Annual
1 O Casual
16 Medical with 112 pay. Annual pay
increment & bonus.
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Medical facility
Mess
Time office maintains personal file of each employee, daily
attendance, leaves, incentives & commission etc., job descriptions and
organizational charth are available for all employees. Employees are rotated
from one department/post to other on request or when required. Payroll
system.
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AUTO WORKSHOP
The function of auto workshop department is top provide repair,
overhauling and maintenance services to the vehicles used in the
organization. These vehicles include Mazda, Toyota, Hino, Suzuki, Honda
and forklifts (Toyota, TCM) of different models and capacity. Total number
of vehicles served by the auto workshop is about 140. the responsibility of
auto workshop is to keep PEPSI fleet efficient, deendable and energetic.
Different departments particularly shipping and sales use these vehicles.
Vehicles outside Multan are mostly used by sales staff. In case of some
major work, it comes to workshop however if there is nominal repair work,
they have it done locally. The staff of the department consists of 20 persons
including mechanics. Record keeper, supervisor and headed by auto0
workshop manager.
• Work order indicating defect, repair work and remarks and after repair
a certificate showing that maintenance work is alright signed by the
driver of the vehicle.
• Work order for market.
• Log book in each vehicle for each driver.
• Gate pass]
• Store requisitions for transport spare parts and stationary. A small
section of store working under main store is maintained in the
workshop
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Electrocution section
Tire maintenance section (compressor) Body welding section
Service section
Tool room
WORKING PROCEDURE
For any repair work, the driver must fill a work order signed by his
respective in charge. The work order is also necessary for cars and
motorcycles.
The work order is refereed to record keeper who hands over to supervisor
after entering in register and reports to work shop manager in case of
accident.
The supervisor is responsible for assigning the job to mechanic by
matching the type of work and his skills.
In case of some work required from market, supervisor himself goes with
the vehicle or assigns one mechanic to monitor market work.
The driver signs the work order certificate after his complete satisfaction.
OBSERVATION/SUGGESTIONS
Standards are set for mobile oil change, air filter change,
mileage etc. of different vehicles. The data needs to be maintained and
regularly evaluated.
Specialized workers are needed to work on different
parts of vehicle e.g. spring load, radiator etc. as well as for petrol and
desile vehicles. Specialist mechanics demand higher pay. For this reason,
department has to get services from market.
There has been no training for mechanics, they are
learning only by time. Mechanics can acquire new skills and save
expenditures by attending short courses as one diploma holder mechanic
is praised by department head because of his ability to communicate and
better understand problems.
Maintenance and smooth of vehicle is dependant upon
driver's understanding and care for the vehicle. There is no formal
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ISO 9000
ISO certification project started in March 98 and ISO 9002 certificate
for Shamim & co was announced on 1999 by SGS Malaysia. This is first
certified beverage plant in Pakistan and among first five in Asia.
The project started with the following activates.
DOCUMENT STRUCTURE
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Elements Department
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• Conducting of QC meetings
System Improvement
Better image of the product
Reduction of losses
Improved efficiency
Complete documentation
Standardized raw material
Preservative maintenance of equipment
Improved productivity
SUGGESTIONS
There are following problems in successful execution of the system:
The ISO 9002 certification should result increase in sales and market
share, recognition in domestic market, high company reputation and
customers confidence as well but certification has not be publicly announced
yet and has resulted no significant impact on other factors.
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SUPPLIER SELECTION
Selection of right supplier is an important job being performed by the
department. Selection criteria differs from one category to another category .
CRITICAL
These items are very much sensitive and one has to be cautious about
making final decision about suppliers, in Shamim & co following factors are
taken into consideration while selecting supplier for these items
TECHNICAL/GENERAL ITEMS
While selecting a supplier for technical and general item any of the
following method is used.
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Chemical properties
Physical properties
Packaging
Sampling details
Storage & handling
Rejections
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GENERAL PURCHASES
For the general purchases like stationary, technical parts, supplies etc
issue requisition slip (in case required material is in the store) or purchase
requisition slip ( in case required material is not in the store stock) signed by
concerned department head is send to Procurement Manager and Purchasers
of procurement department make the purchase.
Mechanical
General
Stationary
General Electric
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Marketing Development
Outlet
Tactical analysis and routine planning of market
strategies.
Competition activity monitoring
T.O. Ts. management
Publicity management
Sensory indicse management
Time management
MARKET DEVELOPMENT
The first and the most basic job of the sales and marketing department
is to plan, develop and make targets. And also to make strategies to achieve
those targets and develop the market. The following major factors are
considered in this respect.
Collection of all the data about each and every distributors/ soutlets,
about its sale, volume, growth and exclusivity.
Finding the gaps in the market where there is a potential.
Finding the points where competitor is strong and hoe we can break
this point.
Location of non traditional shops where potential is available for the
beverage.
Different offers must be given to break the competitors point or win
the mix point.
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OUTLET
Outlets play an important role in strengthening the market. By
monitoring them you can build your market, have their loyalty and increase
your sale. Sales persons should continuously visit outlets, listen their
complaints and satisfy their needs and requirements. They must have
information about each and every outlet, its growth, volume and type
business. Proper check must be maintained to get the feedback from the
shopkeepers
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Data collection about the sale, volume, growth, profitability, size and
place of the sholp
Record ofall the T.O.Ts. given to the shopkeeper.
Further plan for the injection of T .0. Ts.
Checking all the equipment time by time any removing their
complaints
PUBLICITY MANAGEMENT
To promote the image of the company and its products, publicity is a
major tool. Publicity plays an important role in the promoting the image in
the consumer's minds.
The sales and marketing department have to manage, plan and make
strategies a about the distribution of empty whether it is on credit or cash.
The department also has to handle and manage load. Whether it is on
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TIME MANAGEMENT
Time management is the most important factor especially in a
Beverage industry, because it is wholly dependent on Sales and Marketing
Department. And without proper management of time this department
cannot run. Following are the key factors which are to be considered
necessary for the management of time:
• Drop size of a specific area.
• Tonnage of the vehicle for that specific area.
• Total operational time management
• Idle time monitoring and elimination.
• Calculation of outlet knock time.
• Calculation of available knock time for each outlet of a specific area.
• Define and ideal knock time for an outlet.
• Setting of a comprehensive plan, by considering all the above factors
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EXCISE DEPARTMENT
Shamim & co is a regular taxpayer of excise and sales tax to govt. the
procedure is that production per hour of each plant is counted and noted in
cases and bottles. The excise duty and sales tax is calculated as per govt.
rate. The liquid stock of RG 1 is moved to DP godown after clearance and
daily deposit of sales tax. The company and all its dealers pay sales tax at
the end of each month. Sales tax and excise duty is also paid on some raw
material as sugar, crown caps, concentrate etc. the department maintains
following documents
• RG 1 register
• RG2 register
• AR 1 form
• Daily production report (shift bases)
• ACL register
The department is concerned with collector rate of central excise and
sales tax, production department, shipping department and MIS department.
CASH DEPARTMENT
Cash department does cash handling (collection and payment). The
major part of cash collection is from dealers and salesman based on their
settlement sheet and daily sales report. Cash payment is done on the
vouchers issued by accounts department. Payments include employee's pay,
bills, allowances, procurement expenditures and day to day general
expenses.
ACCOUNTS DEPARTMENT
The job of the department is to maintain books of accounts. There are
following main activities of accounts.
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