INTERNSHIP REPORT ON: NAUBAHAR BOTTLING COMPANY 38/40-A S.I.E MODEL TOWN GUJRANWALA.

BY: SHOAIB HAROON MBA G.C UNIVERSITY LAHORE.

INTERNSHIP REPORT ON NBC

Introduction to Report This report is about Pepsi CO. (Nau-Bahar Bottling Company). This report is the part of my MBA degree which is compulsory for us to complete internship in any organization. The purpose of this internship is to provide an opportunity to the students to observe the practical applications of their background professional study. In this report I have given the brief history of the Pepsi CO. and about Nau-Bahar Bottling Company, departments of the NBC, their functions and working of the some departments as well PEPSI COLA IN PAKISTAN

Pepsi cola is also very popular in Pakistan thats why its market share is about 90% in the softdrink market. Pepsi Cola International, a remarkable name in the cola industry is doing its business in Pakistan through franchising. PCI has developed following bottlers in Pakistan till now. Naubahar Bottling Companyis the largest manufacturer and distributor of Pepsi Cola soft drinks in Pakistan.

These franchises are located in:

Karachi Lahore Multan Faisalabad Gujranwala Peshawar Islamabad Sukkher Hyderabad

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INTERNSHIP REPORT ON NBC

Production Manager

QC Manager

HR Manager

Audit Manager

Purchase Manager

Finance Manager

MIS Manager

Shipping Manager

Store Manager

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INTERNSHIP REPORT ON NBC

NAUBAHAR BOTTLING COMPANY INTRODUCTION Pepsi co starts its operation in Pakistan in 1971 first time in Multan. And NBC also establish in 1971 and from 1974-79 NBC was producing the Coca Cola products. In 1980 NBC achieve the licenses of PCI and in May 27, 1981 its start the production of the Pepsi, in the same year NBC achieve the ISO 9002 certification. And in 2008 NBC start the production of 7up. And its units productions capacity is 100000 cases per day with 5 manufacturings plants. The Area allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine districts. Gujranwala Gujrat Hafizabad Mandibahaudin Jehlum Sialkot Narowal Sheikhupura Chakwal

The company operates through a well-established network of a number of distributors. The company has two types of delivery systems i.e. Director delivery system Indirect delivery system 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 an indirect distribution; the dealer spends his own resources on all the factors which increases the sales volume: DIRECT DELIVERY SYSTEM Manufacturer Retailers Customers

INDIRECT DELIVERY SYSTEM Manufacturers

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distributor

Retailers

Customers
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INTERNSHIP REPORT ON NBC

Most importantly, this direct delivery system is present only in Gujranwala franchise in Pakistan. The company also has its depots (remote depots) in different cities. It helps a lot in increasing its sale and directing the distribution system. They are in Sialkot Gujrat Shahdara Jehlum Sheikhupura Narowal Mandibahaudin (Recently Established)

OBJECTIVE The major objective of the company is to produce and supply of highest quality, which confirms to both the national and international quality stands. The company is committed to provide maximum level of customer satisfaction.

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INTERNSHIP REPORT ON NBC

Vision "Pepsi Co's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today."Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company Mission Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partner sand the communities in which we operate. And in everything we do, we strive for honesty, fairness Organizational Profile About employees : There are 2000employees attached with the production department in with about 800 labors are permanent and others are on contract base. 120 employees attaches with the sales and other departments. Plant capacity Nau-Bahar Pepsi cola industry has a moderate and big plant. It can produce 600 bottles in one minute. It has also the water treatment plant which can take raw water from 500 dept, treat and filter it and then store it. Plant can store 20000 gallons

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INTERNSHIP REPORT ON NBC

Marketing Research and Development Department MR & D Function Routine Function Every dealer survey Core function of MRD department Definition This comprehensive survey of executive in a specific area to collect information from retailers on a specific format Purpose This survey helps generating report that ultimately sales force (S & D Manager, unit manager etc) to plane market accordingly and for higher management to make important decisions to stay abreast with competitors. Retail audit

Retail audit is conducted when we have shortage of time and results are needed urgently Retail audit is carried out in a single day in a single visit. Results are as much reliable as from the survey. After EDS, retail audit is one of the main functions of MRD department.

Marketing development reporting NAD (new account development) Cooler placemen Promotion verification Advertising verification Distributor stock verification

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INTERNSHIP REPORT ON NBC

MEM Department Marketing Equipment Management Before 1998 coolers were not issued to retailers. In 1998 NBC started to provide the coolers but there was no record of coolers issuance and retailers to those coolers were issued. In 2006, NBC develop a new department with the name of MEM which hold all the system of coolers issuance and repair etc. Problems to NBC Before 1998 No agreement with retailer No witness No identity of cooler Violation Shop closure Tracking movement of cooler in case of lifting No multi placement cooler checking No record room Operative Vs retired cooler Asset losses No data base for new sale staff

Responsibilities

Issuance of new cooler to retailers Repairing & maintenance of chillers

Types Of Issuance

Regular issuance

In regular issuance they take required documents in advance from retailers. Which as under:-

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INTERNSHIP REPORT ON NBC

Affidavit Party A signature Party B signature Witness A signature Witness B signature I D card Equipment requisition form Outlet review Previous issued chiller Current demand

Contingency cooler issuance

In this issuance each unit is allocated a quota of 30 coolers. This issuance is for emergency purposes, because Coca Cola is their strong compotator and as soon as they get the news of opening of new shop they offer the shopkeeper of new chiller. So that for this reason they provide the chiller on the spot from the unit quota to hold on the new shop. After contingency cooler issuance, sale officer of that unit take the documents from the retailers and fulfill the all process that discuss above.

EMO EMO means Equipment Move Order. EMO has two types move order Reassign Retire

Process of EMO:Install Pickup ReassignRetire

Repairing and maintenance

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INTERNSHIP REPORT ON NBC

From 1998 to 2006 they are facing problems regarding delay in repair deception by private contractor, time consuming, high cost. After 2006 they maintained a workshop for repair and maintenance. They have also a sheet EWO (Equipment Work Order) for that purpose. In which there is a list of spare parts of a cooler. They replace parts and send the sheet to MEM department for verification department. In this department the repair work done is recorded. Publicity Department 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.NBC does publicity activities in only in trade . Publicity involves : Banners Posters, Signings Gifts Schemes Wall chalking Iron counter Iron cabin Iron shed Hoarding board Tin board

Focusing the followings spends publicity budget. RESPONSIBILITIES OF DEPARTMENT Arranging the sources and requirements and making priority lists. Carefully arranging the publicity execution,fulfill sales team needs in an efficient and effective manner.To ahere to Pepsi cola international standards.To maintain record of advertising items.To

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INTERNSHIP REPORT ON NBC

resolve tax matters,deal with rent matters,vehicle branding,Advertising budget monitoring,events sponsorship. Production Department Production is a process of converting raw material into finished goods. It is a major function in all the Organizations. Production is back bone of any manufacturing Organization. In NBC the raw material used by them in production is approved by the Pepsi Cola International. The material they purchase should be according to the standard of PCI. In the case of material does not meet the standard of PCI then the NBC have a right to return back to its suppliers, in this case the cost of that material is beard by the supplier. The main purpose of this high quality checking is to provide high quality to the end user. Raw material used by NBC includes. Sugar ,water, co2,ammonia,syrup. Capacity of Plants Company is operating with 5 plants at unit one. Out of these 5 plants, 3 are producing only 250ML RB bottles. While 01 produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant 2 produces1000 ML (PET), 300ML (NR) and 1500ML (PET) bottles. Capacities of each plant are as follows: Plant # 250ML(RB) 1000ML( RB) 1500ML(PET) 1000ML(PET) 300ML (NR) P # 01 - 1100 Cs/hr 600Cs/hr - -P # 02 - - - - 300Cs/hr P # 03 1500Cs/hr - - - -P # 04 1250Cs/hr - - - -P # 05 1375Cs/hr - - There are 3 more plants working at unit 2 in which two plants are busy in the production of 500ml, 1000ml and 1500ml NRB (pet) while the 3rd plant is producing 250ml of slice (RB). The two plants at unit 2 are totally automatic with fewer requirements of labor and remaining are manual with little automatic functions. Company also started manufacturing of mineral water called Aquafina in two packages of 600ML and 1500ML and for this purpose it installed a separate plant.

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INTERNSHIP REPORT ON NBC

Quality Control Quality control is the basic organizational objective of NBC. Quality check is made from zero level to final products. For this purpose samples are taken from the production to check the quality. This sampling is done after each an hour or half an hour. These samples are tested according to the PCI standards. Production staff Employees are directly involved in the production process. Whereas the helpers are the indirect employees Moreover direct supervisor and helpers are also there. Indirect employees are about350 in number, who are not directly involved in the production process but they are essential part of the production department. Laboratory In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to measure the standards and to test syrup of different flavors. The well equipped lab enables the smooth flow of production process. Product line The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as compared to other brands. The other brands produced by the organization are. Pepsi Mirinda Teem 7up 7up Free Mountain dew Slice

Production Process Production process is a complete cycle of interrelated activities which is as follows First time light inspection after taking the empties to the conveyer with the uncaser by the shipping dept.
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INTERNSHIP REPORT ON NBC

Empties shifted to the washer for washing In washer the empties washed with hot, caustic water and then finally with fresh water. After washing, bottles again pass through the light inspection. After 2nd time light inspection the empties move towards filler The filler filled the empties with liquid and then move them towards bottle neck covering machine Then the 2nd last step is of coding in which specific codes are assigned to each bottle containing date, time and chemist name. Finally bottles pass through the 3rd & last light inspection where the level, dirt are inspected in the liquid. The bottles are ready to use. Sales Department There are 2 types of sales System TU system(Territory University) A system of distribution in which the company main focus is on the consumer because the consumer is the most important and the role of middle man is abolished. Now ADM accont development manger TDM territory development manger,CR deals in places of middleman.No distributor is in this system.Here data ware house operator punch in manual data taken from customer representive, that works with sales teem into computer .In this way they have weekly ,monthly an yearly sales data of each outlet. Non TU system(Non Territory University) A system of distribution in which company give to manufacturer and manufacturer gives to distributer and distributer give to the retailer and finally product reaches to the final consumer. Company does not know about their consumer. Working of the Sales force of the NBC 2-3 Customer representative work under the supervision of Area development Manager 2-3 Area development Manager work under the supervision of the Unit Manager 1 Unit manager control the 1 city 2-4 Unit manager are controlled by the Sales Development Manager
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INTERNSHIP REPORT ON NBC

5 Sales Development Manager Supervised by the Manager NBC have a total 5 Sales Development manager. And NBC is 50% TU based and 50% Non TU based Non TU Base Area Muridke Kamoki Hafizabad Daska and Outstation.

TU Base Area Shekhupura Shadra Gujranwala Gujrat Jehlum Sialkot 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 and supply to plants, liquid stock and distribution directly affects sales. This is a complete chain or cycle and any weak link, bottle neck or disturbances will slowdown the whole operations. The Shipping System of NBC is responsible for the management of the following tasks: Shipping is responsible for managing the empties that are required for production.

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INTERNSHIP REPORT ON NBC

Shipping is responsible for receiving the liquid clearance from excise to dispatch it further to Depots & distributors or parties. Shipping is also responsible for maintaining proper stock of liquids and empties as they appear in the liquid and empties stock register, so as the stock appears in the registers, it should also be physically present in the depots. Shipping is also responsible for proper management of empties and liquid vehicles loading and off-loading i.e. time management is very important in this case. Shipping also receives new empties of both RB and NRB and manages their storage and handling and their proper supply to production as they are required by the production for filling purpose. The management of other empty stock is also the responsibility of Shipping Department and its exchange is especially important in this case. Detail of these functions is as follows:

RESPONSIBILITIES OF DEPOT INCHARGE Monitoring of empty and stock incharges Maintenance of shipping records and documents Reconciling physical stock with MIS reports Posting on balance sheet register Sending daily stock report and dealer wise sales report to factory Receiving bank slips from dealers Clearance of depot's settlement sheet Transfer of cash to friends agency account

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INTERNSHIP REPORT ON NBC

Maintenance of stock FIFO system

During my visit to depot Shahdara, I studied depot operations and

The job of stock incharge.

Perfoemed the job of empty incharge. * * Worked on the seat of shift incharge. Drew liquid laws arrangement, Depot layout and time study of loading & unloading of

vehicles. SHIPPING REPORTS Daily shipments report Daily carton report Daily packing report Daily pet empty report Daily net empty report Daily filled stock report Daily production (filled stock) report Daily liquid stock tacking report (shift wise) Daily empty stock tacking report (shift wise) Daily plastic shells report Daily excise report Daily dirty empty wash repot Daily pending load report Daily vehicles ( loading / un-loading ) report

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INTERNSHIP REPORT ON NBC

APPENDIX
ASSIGNMENT NO 1 The Assistant Manager MRD Department gave me a assignment on Stock Keeping Units (SKU). The detail of SKU is given below Purpose of SKU The main purpose of SKU is to maintain the stock in the market. Brands with packages of NBC SKU There are 51 SKU of NBC which are available in market. These SKU consist on soft drinks, and juices, energy drink and mineral water. P SSRB MSRB 1L PET 1.5 L (Pet) 2.25 L 500 ml 300 ml SSNR CAN P. Diet M T 7Up 7Up F MD

Slice 240 ml TP/NR

Sting

Aquafina

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INTERNSHIP REPORT ON NBC

250 ml CAN 1.5 500 ml

ASSIGNMENT NO 2 Name of Units, Units Manager, Regions and S&D Manager Sr. # 1 Units Gujranwala Unit 1 Gujranwala Unit 2 Gujranwala Unit 3 Hafizabad Wazirabad Kamoki Sheikhupura Shahdra Base Nankana Farooqabad Muridke Sialkot Base Units Manager Regions S&D Manager

Mr. Imran Shafiq Mr. Saeed ullah Khan

Mr. Johar Islam

Gujranwala Base

3 4 5 6 7 8 9 10 11 12

Mr. Riaz Islam Mr. Abdul Rasheed Mr. Akhtar Hussain Mr. Muhammad Rafiq Mr. Amir Nazir Mr. Fayyaz Khan Mr. Yousaf Amin Mr. Shakif Bashir Mr. Shahzad Hassan Mr. Ghulam Murtaza Sialkot Mr. Amir
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Gujranwala out

Mr. Hussain Ali Sehgal

Sheikhpura

Mr. Tanveer Qureshi

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INTERNSHIP REPORT ON NBC

13 14 15 16 17 18 19 20 21

Sialkot out Daska Pasroor Narowal Gujrat Base Gujrat out M.B. Din Jehlum Chakwal

Mr. Hammad Zafar Mr. Muzaffar-ud-din Mr. Abdul Wahid Mr. M. Yaseen Mr. Amir Saleem Mr. Maqsood Sarfraz Mr. Rao Atif Nazir Mr. Khuram Shahzad Jehlum Mr. Jawad Khan Gujrat

Razzaq

Mr. Iftikhar Ahmad

Mr. Jawad Akram Baig

ASSIGNMENT NO. 3 Market survey I visited the Kamoke Unit with Marketing Research Officer team to collect the data from retailers about SKU and to check the chiller integrity. I visited about 17 shopes and collect the data on market survey form. Market Survey Form Market survey form consist of name & address of retailers, detail of SKU, purchasing and sales rates. Survey Results All packages with all brands were available in this unit Two shops were misusing the chiller 15 shops were selling the only pepsi brand

ASSIGNMENT NO4 Production Department The Assistant Manager of production Department Zahid Arif gave me assignment on the following complete production processes.
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INTERNSHIP REPORT ON NBC

Decaser Washer Filler Trade Mark Cell wise rejection percentage QC Lab Boiler QA Lab Decaser decaser circulates eight times in per minute and in each circulation decaser takes four crates for washing. Each crate has 24 bottles. Washer It consists of 5 tanks detail is below. Tank # 1 2 70 to 75 degree Centigrade 3 4 5 50 to 55 degree Centigrade Temperature 50 to 65 degree Centigrade 60 to 70 degree Centigrade Description Hot water (by steam) Caustic tank No.1 (Caustic Soda) Caustic tank No.2 (Caustic Soda) Hot water Cold water (Fresh water)

Washer Capacity Total lifts of washer are 428, each lift has 40 pockets. In one minute 640 bottles are washed.

Filler Plant In filler tank water, syrup and CO2 are mixed and finally bottle is produced by filler plant. Filler Plant Capacity produce 515 bottles in 1 minute of 7Up and 600 in general
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INTERNSHIP REPORT ON NBC

Trade Mark Trade mark the bottle after production by laser machine. The sample of trade mark discussed below. L12 103C 5AA 17:20 BB Jan 13 L 12 103 C 5 AA 17:20 BB means NBC Gujranwala means year show the date (start from January to onward) unit No. 1 plant No. supervisor name time of production best before

Cell wise rejection percentage Cell No. 1 2 3 4 5 What is rejection? Breakage Dirty Logo Foreign matter High and low filling level Quality Control Lab
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Rejection percentage 50% 30% 15% 5% No rejection How many cases are rejected in hour after production? 8 cases rejected

INTERNSHIP REPORT ON NBC

Quality control Manager gave me assignment of water treatment process and syrup preparation. Water treatment process Raw water Reaction tank Sand fitter Protected storage

treated water Syrup preparation

U.V

Polisher

Carbon purifier

There are two rooms for syrup preparation

Sugar feeding room After each two hours 80 bags of 50 Kg feed in sugar tank Pressurizer room Pressurizer room has three tanks one for water other two tanks for mixture of water and sugar. This mixture is passed through filter press for purification and then passed from heater changer for the purpose of cold. Quality Control Lab Function Check the CO2 level e.g3.2 psi of dew Check the density Measure the PH 2.5 of pepsi acidic Degassing Torque test of crown Weight Sugar test e.g 10.4 brix pepsi Boiler

The purpose of boiler provide the steam.

Quality Assurance Lab

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INTERNSHIP REPORT ON NBC

Quality assurance lab receives the raw material and packaging material, check sampling and finalize. What is Raw material? Ferrous sulphat Lime H2SO4 CaO CO2 Salt Caustic solution

What is packaging Material? There are two types of packaging Material Primary (which touch the beverage) Pet empty Chromes Glass Caps Height, weight Body dia, heal dia Shoulder, label Fill point capacity Logo Secondary Paper glass Cottons Lits Sheets -

Types of test

Physical base test High flow

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INTERNSHIP REPORT ON NBC

Activity carbon (remove smell) Viewal test Check the weight.

SURVEY QUESTIONNAIRE FOR BEVERAGES

Survey was conducted of around 100 respondents. WHAT IS YOUR AGE Below 15 15-30 30-50 50 and above.

YOUR AREA OF LIVING---------------------- Mohala Town Village Colony Other ------------------------------YOUR INCOME SEX Male Female Below 10000 Rs 10000-30000 30000-60000 60000 above

DAILY ACTIVITY LEVEL Highly active Moderately active Sitting Resting

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INTERNSHIP REPORT ON NBC

BEVERAGE PREFERRED IN THIRST EXCEPT FOR WATER Carbonated soft drinks Fresh juices Flavored juices Energy drink

CARBONATED SOFT DRINKS PREFERRED BRAND Pepsi cola Coca cola Gourmet cola Other

REASON FOR LIKING Price Taste Advertising Availability Bottle shape Other reason

MOST CONSUMED SOFT DRINK Pepsi Coke Teem 7up Mirinda Fanta Sting Dew Sprite

JUICES Shezan Pulpy orange Slice Other--------------------------

CARBONATED SOFT DRINK FREQUENCY Daily

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INTERNSHIP REPORT ON NBC

Weekly Monthly By chance Never

QUANTITY OF CONSUMPTION Daily Weekly.. Monthly YOUR PERCEIVED PRICE OF YOUR MOST LIKED BEVERAGE Beverage Price.. BEVERAGE AVAILABILITY POINTS FOR YOU. Pan shop Bakery Burger shop General store Other------------------------------

CONSUMPTION QUANTITY PREFERRED 250 ml 300ml 500ml 1.5 liter 2,25 liter Other--------------------

Do you like your beverage from your childhood or you switched to the other brand? If yes then why? -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. YOUR PREFERRED PACKING? pet glass tin other
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INTERNSHIP REPORT ON NBC

ENERGY DRINKS sting Red bull Power full Verve Other-----------------

HOW DO YOU SEE PEPSI AS BRAND? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------WHAT IMPROVEMENT DO YOU THINK PEPSI NEEDS? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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