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Operational ManagementProject Report
Aamir Durvesh-(8962)Ahsan Ahmed-(7179)
Mujeeb Iqbal Naviwala-(7182)
Muhammad NomanKhan-(6504)
Submitted On:May 9, 2011
Monday-(3 :00 P.M. 6:00 P.M.)1
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Synopsis Product life cycle
Company Profile
Vision, Mission. Objectives
Company Quality Policy Company Environmental Policy
Legal Requirments
Analysis of Micro Environment Organizational Chart
Organizational Chart of Supply ChainDepartment
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Demand Management Suppliers Inspection of Material Bill of Material BOM Material Management Procurement Process Purification Process Water Manufacturing Process Product Categories Packaging Warehousing Distribution Logistics and Supply Chain Model
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Culligan is a mineral water company which will set upa water purification plant in S.I.T.E. Area Karachi.
They have started this company on the September 1,1997.
potential for growth at a steady rate of 6 % per annumand it is in the growth stage of its product life cycle. Water among the beverage industry holds a 4% share
while tea holds 55%. In the Political legal analysis of the industry we came
to know that there is consumer activism protestingagainst unsafe water supplied by 26 mineral waterbrands of Pakistan.
Under the economic analysis GDP has grown to 6.4%increasing the purchasing power of the consumer.
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There is a need for R&D in this industry as manyoptions for technological improvements areavailable.
There are legal requirements which specify howmany of chemicals and ingredients should bepresent in mineral water.
Raw materials consist of chemicals, plastic bottles,seals, caps, and mainly unpurified.
Our inventory stored will be of 2 months. competitors are mainly AVA, Fontalia, Aqua Fina
and Nestle.
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Mineral Water Industry is in its growth stage of life cycle. There is a lotmore that companies can do to make this industry more competitive.
Bottled water industry in Pakistan is still immature as there is only plainmineral water is available in the market. No offerings of sparkling,flavored or sweetened water is being done by any of the existing players.
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Culligan private limited has been formed onSeptember 1, 1997. This water purification companywill be catering to Karachis market for the time being.
Company is located in Karachi, Pakistan.
Major Bankers:
UBL
Standard Chartered
MCB Metropolitan
Sohneri Bank
My Bank
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Legal Advisor: Mr.Rahat Aziz
Registered Office & Factory:
Culligan Water Of Pakistan
F-17/A, Hub River Road , SITE, Karachi , 75700
General Information:
People Employed: 45-50 Land: 1.5 Acres
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Culligan Objectives
Constantly Endeavor to be a market leader in terms of marketshare & technology based pace setters in areas of operation & tocontinuously improve efficiency & competitive strength.
To offer customers quality products & support services atcompetitive prices & to their satisfaction
By continuously improving performance, aim to generate earningssufficient to ensure a secure future for the company & to protect &
increase shareholders return.
To enhance creativity & job satisfaction, provide employeesopportunity for personal development.
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Our policy is to satisfy by providing quality product bymeeting all the departments as per ISO 9001-2000,standard so that standard of quality meets therequirements of the company.
Our focus is on continual improvement for which wehave established our quality objectives that arecontinually received in Management Review Meeting.
Company Environmental Policy To discourage practices those cause damage to the
environment. To implement system which are environment friendly To encourage recycling and discourage wastage that
cause harm to the atmosphere
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The (PSQCA) was establishing under section 3 ofthe Act 1996.
The establishment of any mineral water plant inPakistan is required to get a license from (PSQCA).
An application on a prescribed application form,which can be obtained for Rs 100/- from (PSQCA).
The PSQCA has developed standards for bottledand mineral water and all the water plants.
Violation of the PSQCA is punishable byimprisonment for one year or a fine of Rs 50,000 orboth.
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The water should be free from all chemical and bacteriologicalcontaminations which are hazardous to health.
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Competitor Analysis.
There are around 26 players in bottled waterindustry.
Pakistan bottled water comprises of two mainsegments:
Retail Market. Bulk Market.
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0.5 Liter
1 liter
3 liters
5 liters
6 liters
Bulk Market.
3 gallons to 5 gallons cans.
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Zam Zam
Fresh
Musaffa
Mineral PlusWell green
Aqua Flow
Max Wellpur
HimalayaBrecon Carreg
Evian
Perrier
NiagraNestle PureAvaCulliganSparkletsMasafiAqua SafeCool
Ab-e-HayatRainbowPearlAskariSafa
ClassicBlue Ever Pure
JeemaVittelGulfaVolvicHighland SpringSPAHayatOsloVital
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The price range of 1.5 liters category is from Rs20-95 (including local and imported brands).
the price range for 0.5 liters category is from Rs
10-85 (for local and imported brands). The range for 5 gallon starts from Rs.60-95 per
bottle.
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Managing Director
Chief Operating Director Chief Executive Director
Marketing Director Operational Director Finance Director H.R Director
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Managing Director
Chief Operating Director
Operations Manager
Procurement Manager Warehouse Manager Production Control Expediting
Contract
Raw Material
Finished Goods
MRP
Outsourcing
Transportation
Documentation
Local
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The company has policy ofkeeping finished goodinventory on day to daybases.
The company will implementmethods for forecasting saleswhich will be provided byour marketing and salesdepartment.
Forecast Method: a properforecast has to be done toensure that there are nomishaps like the bullwhipeffect.
Requisition
Manufacturing department
Forecast of sales by marketing & salesdepartment
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We will keep 2 suppliers for every raw material and supplies. 2 months inventory will be purchased and maintained.
Unpurified water we will get from Muslimabad Hydrant.For 5 gallon cans: The cans will be screen printed with Culligan label. Delta Waters Kasim BrothersFor caps and seals 2 suppliers: Tanzeela Quality Suppliers
For chemicals such as (calcium, magnesium, sodium and salt) Merck Javed Chemicals
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The following is a list of our raw materialsneeded for the purification of water.
Unpurified water
Empty water cans (5 gallon) Caps
Seals
Chemicals (calcium, magnesium, sodium andsalt)
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The suppliers will bring the rawmaterials by their owntransport. The inspectionprocess will be as such.
Materials received
materials inspected into thecartons materials verified with the
amount required if all the materials are as per
requirement the receipt willbe given to the supplier Payment will be made to the
supplier within 30 daysperiod.
Material Received
Material Inspected before
receipt
Material verified with the
amount required
If all materials approved
receipt will be given to the
supplier
If materials are notsatisfactory they will be sent
back to the supplier
Payment will be made in
30 days period
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Bill of Material: (BOM)
Purified BottledWater
UnpurifiedWater
Empty BottleCaps &Seals
Chemicals
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Material Requisition
Procurement Department
Request for Quotation
Selection of Supplier
Purchase Order
Receiving & Inspection
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The first step for setting up a water purification plant isthe analysis of source of water. After the chemicalanalysis, the specifications of the purification plant areset.
Source water is stored in the feed water tank, passes
through the sand filter for preliminary water filtration. Water then passes through the dosing pump-I where
chlorine is added to kill the germs.
After the chlorination, water passes through carbon
filter. It helps in the maintenance of proper odor andtaste of the water.
Water is then passed from dosing pump-II, whereSodium Meta Bisulphate is added.
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Water is filtered next and passes through dosingpump-III, where anti scallant is added.
Water then passes through reverse osmosismodule. This stage of the process makes water
clear from all the contaminations. Water then passes through dosing pump-IV,
where minerals are added for taste development.
water undergoes Ultra Violet treatment to avoidany contamination from bacteria.
The water then passes through Ozonator to furtherkill the germs.
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Water then passes through automatic washing,filling and capping plant.
Here water is filled into bottles.
Capacity: 5000 bottles a day
Actual Bottles: 3000 bottles per day
Reverse Osmosis Plant atCulli an
Washing, Filling & Capping Plant 29
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Every day there are3000 bottles filled soout of those randombottles are picked totest the water in thechemical and microlabs.
They are tested to seethe ratio of chemicals
is according to thestandards. The quality is checked.
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Ideal for you when you are on-the-go andfor the kids lunch boxes
Is presented to customers particularly inrestaurants and cafs or on your table orin your bag ... Always with youeverywhere!
Ideal for picnics & parties anywhere!
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For home and office use.
For home and office use.
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Product packaging and presentation is one ofthe main dynamics.
It is suggested that the Bottles should be clear.
The bottle should give a reflection of light skyblue color, which is considered a naturalsymbol of the water.
The water should give a shiny and a glossy
reflection. The opening of the bottle should be large
enough to accommodate outflow and inflow ofwater.
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Water Specifications
Certificate mark of the Pakistan Standards &Quality Control Authority
Expiry Date (Best Before Date) A brief intro of the company with address
Website address of the company
Brand Name / Trade Name
Net volume in System International / MetricSystem
Batch Number or code number
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Culligan will have only one warehouse which willbe inside the factory at the back side.
It also have an inventory storage area.
The size of the warehouse will be: 5000 sq ft. Length & width 70 ft. (this size includes the plant,
warehouse and the inventory storage area).
Raw Materials:
The raw materials will be stored in the inventorystorage area at the back side of the warehouse.
There will be a 2 months inventory in our store.
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The finished goods will be kept in thewarehouse for less than 12 hours.
As the trucks can load up to 200 bottles each
they will make the delivery after the bottleshave been packed and arranged.
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Mode of Transportation: Road: Raw material.
Trucks and Wagons will be the mode oftransport for raw materials.
Transportation of raw materials to the factorywill be the responsibility of the supplier.
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Culligan Pvt Limited will have its own distributionnetwork.
Status: In house distribution Road: Finished Goods
Trucks: Hyundai Shahzore Suzuki Pick up Mazda TruckUnits carry: Suzuki pick-up can carry 60 bottles of 5.0 Gallons Hyundai Shahzore can carry 120 bottles of 5.0 Gallons Mazda trucks can carry 200 bottles of 5.0 Gallon
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UNPURIFIED
WATER
Muslimabad hydrant
EMPTY WATER CANS
5.0 GALLONS
Delta waters,KasimBrothers
CAPS AND SEALS
Tanzeela and QualitySuppliers
CHEMICALS
Merrcck andJavaid Chemicals
RAW MATERAIL SUPPLIERS
FACTORY RAW MATERIALWAREHOUSEWATER
STORAGETANKS
PURIFICATION PLANT
FINISHED GOOD WAREHOUSE
LOADING OF BOTTLES ONTRUCKS
CUSTOMERS
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