internship report

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 that’s why its market share is about 90% in the soft-

drink 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

G.C University Lahore . Page 2




NAUBAHAR BOTTLING COMPANY

IINTRODUCTIONNTRODUCTION

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 manufacturing’s 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:

DDIRECTIRECT D DELIVERYELIVERY S SYSTEMYSTEM

Manufacturer Retailers Customers

IINDIRECTNDIRECT D DELIVERYELIVERY S SYSTEMYSTEM

Manufacturers distributor Retailers Customers


Production

Manager

QC Manager

HR Manager

Audit Manager

Purchase

Manager

Finance Manager

MIS

Manager

Shipping

Manager

Store

Manager


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)

OOBJECTIVEBJECTIVE

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.



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



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



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:-



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 Reassign- Retire

Repairing and maintenance

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

resolve tax matters,deal with rent matters,vehicle branding,Advertising budget

monitoring,events sponsorship.

Production D epartment



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.

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.

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 D epartment

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

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 DEPARTMENTSHIPPING 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.

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

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.

SSHIPPINGHIPPING R REPORTSEPORTS

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



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 P. Diet M T 7Up 7Up F MD

SSRB

MSRB

1L PET

1.5 L (Pet)

2.25 L

500 ml

300 ml

SSNR

CAN

Slice Sting Aquafina

240 ml

TP/NR

250 ml

CAN



1.5

500 ml

ASSIGNMENT NO 2

Name of Units, Units Manager, Regions and S&D Manager

Sr. #

Units Units Manager Regions S&D Manager

1Gujranwala Unit 1

Mr. Imran Shafiq

Gujranwala BaseMr. Saeed ullah Khan

2Gujranwala Unit 2

Mr. Johar Islam

3Gujranwala Unit 3

Mr. Riaz Islam

4 Hafizabad Mr. Abdul Rasheed

Gujranwala outMr. Hussain Ali Sehgal

5 Wazirabad Mr. Akhtar Hussain

6 Kamoki Mr. Muhammad Rafiq

7 Sheikhupura Mr. Amir Nazir

SheikhpuraMr. Tanveer Qureshi

8 Shahdra Base Mr. Fayyaz Khan

9 Nankana Mr. Yousaf Amin

10 Farooqabad Mr. Shakif Bashir

11 Muridke Mr. Shahzad Hassan

12 Sialkot Base Mr. Ghulam Murtaza Sialkot Mr. Amir Razzaq

13 Sialkot out Mr. Hammad Zafar

14 Daska Mr. Muzaffar-ud-din



15 Pasroor Mr. Abdul Wahid

16 Narowal Mr. M. Yaseen

17 Gujrat Base Mr. Amir Saleem

GujratMr. Iftikhar Ahmad

18 Gujrat out Mr. Maqsood Sarfraz

19 M.B. Din Mr. Rao Atif Nazir

20 Jehlum Mr. Khuram ShahzadJehlum

Mr. Jawad Akram Baig21 Chakwal Mr. Jawad Khan

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 unitTwo shops were misusing the chiller15 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.

DecaserWasherFiller



Trade MarkCell wise rejection percentageQC LabBoiler QA Lab

Decaserdecaser circulates eight times in per minute and in each circulation decaser takes

four crates for washing. Each crate has 24 bottles.

WasherIt consists of 5 tanks detail is below.

Tank # Temperature Description

1 50 to 65 degree Centigrade Hot water (by steam)

260 to 70 degree Centigrade Caustic tank No.1 (Caustic

Soda)

370 to 75 degree Centigrade Caustic tank No.2 (Caustic

Soda)

4 50 to 55 degree Centigrade Hot water

5 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 PlantIn filler tank water, syrup and CO2 are mixed and finally bottle is produced by

filler plant.

Filler Plant Capacityproduce 515 bottles in 1 minute of 7Up and 600 in general

Trade Mark



Trade mark the bottle after production by laser machine. The sample of trade mark discussed below.

L12 103C× 5AA17:20 BB Jan 13

L means NBC Gujranwala12 means year103 show the date (start from January to onward)C unit No. 15 plant No.AA supervisor name17:20 time of productionBB best before

Cell wise rejection percentage

Cell No. Rejection percentage

1 50%

2 30%

3 15%

4 5%

5 No rejection

What is rejection? How many cases are rejected in hour after production?

Breakage 8 cases rejected

Dirty

Logo

Foreign matter

High and low filling level

Quality Control Lab

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 U.V Polisher Carbon purifier

Syrup preparation

There are two rooms for syrup preparation

Sugar feeding roomAfter each two hours 80 bags of 50 Kg feed in sugar tankPressurizer roomPressurizer 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 dewCheck the densityMeasure the PH 2.5 of pepsi acidicDegassingTorque test of crownWeightSugar test e.g 10.4 brix pepsi

Boiler

The purpose of boiler provide the steam.

Quality Assurance Lab

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) Secondary

Pet empty Paper glass

Chromes Cottons

Glass Lits

Caps Sheets

Height, weight -

Body dia, heal dia -

Shoulder, label -

Fill point capacity -

Logo -

Types of test

Physical base test High flow Activity carbon (remove smell) Viewal test Check the weight.



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

Below 10000 Rs 10000-30000 30000-60000 60000 above

SEX

Male Female

DAILY ACTIVITY LEVEL

Highly active Moderately active Sitting Resting

BEVERAGE PREFERRED IN THIRST EXCEPT FOR WATER

Carbonated soft drinks Fresh juices


SURVEY QUESTIONNAIRE FOR BEVERAGES


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 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

ENERGY DRINKS

sting



Red bull Power full Verve Other-----------------

HOW DO YOU SEE PEPSI AS BRAND?

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WHAT IMPROVEMENT DO YOU THINK PEPSI NEEDS?

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internship report

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pepsi cola

contingency

light inspection

caustic tank

gujranwala

packaging

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