Operational Management Project Report

Aamir Durvesh-(8962)
Ahsan Ahmed-(7179) Mujeeb Iqbal Naviwala(7182) Muhammad Noman Khan-(6504)

Submitted On:
May 9, 2011 Monday-(3 :00 P.M. 1 6:00 P.M.)

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 Chain Department
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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 up a 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 annum and 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 protesting against unsafe water supplied by 26 mineral water brands 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 many options for technological improvements are available. There are legal requirements which specify how many of chemicals and ingredients should be present 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 lot more that companies can do to make this industry more competitive. Bottled water industry in Pakistan is still immature as there is only plain mineral water is available in the market. No offerings of sparkling, flavored or sweetened water is being done by any of the existing players.

Culligan private limited has been formed on September 1, 1997. This water purification company will 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

Vision To become a leading brand for our customers and provide our customers the best, pure and healthy product and service Mission To endow quality drinking water for consumers, through continuous research & development programs in accordance to the international water standards. High rate of return for stakeholders & maintaining a win win situation for dealers & suppliers, through proper capitalization of our Human Assets. And perusing all the Governmental Regulations & Environmental compliances
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Culligan Objectives

Constantly Endeavor to be a market leader in terms of market share & technology based pace setters in areas of operation & to continuously improve efficiency & competitive strength. To offer customers quality products & support services at competitive prices & to their satisfaction By continuously improving performance, aim to generate earnings sufficient to ensure a secure future for the company & to protect & increase shareholders return. To enhance creativity & job satisfaction, provide employees opportunity for personal development.

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Our policy is to satisfy by providing quality product by meeting all the departments as per ISO 9001-2000, standard so that standard of quality meets the requirements of the company. Our focus is on continual improvement for which we have established our quality objectives that are continually 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 of the Act 1996. The establishment of any mineral water plant in Pakistan 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 bottled and mineral water and all the water plants. Violation of the PSQCA is punishable by imprisonment for one year or a fine of Rs 50,000 or both.
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The water should be free from all chemical and bacteriological contaminations which are hazardous to health.

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Competitor Analysis. There are around 26 players in bottled water industry.

Pakistan bottled water comprises of two main segments: 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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Niagra Nestle Pure Ava Culligan Sparklets Masafi Aqua Safe Cool Ab-e-Hayat Rainbow Pearl Askari Safa

Zam Zam Fresh Musaffa Mineral Plus Well green Aqua Flow Max Wellpur Himalaya Brecon Carreg Evian Perrier

Classic Blue Ever Pure Jeema Vittel Gulfa Volvic Highland Spring SPA Hayat Oslo Vital

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The price range of 1.5 liters category is from Rs 20-95 (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

Local

Raw Material

MRP

Transportation

Contract

Finished Goods

Outsourcing

Documentation

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The company has policy of keeping finished good inventory on day to day bases. The company will implement methods for forecasting sales which will be provided by our marketing and sales department. Forecast Method: a proper forecast has to be done to ensure that there are no mishaps like the bullwhip effect.

Requisition

Manufacturing department

Forecast of sales by marketing & sales department

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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 Brothers For 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 materials needed for the purification of water. Unpurified water Empty water cans (5 gallon) Caps Seals Chemicals (calcium, magnesium, sodium and salt)

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The suppliers will bring the raw materials by their own transport. The inspection process will be as such. Materials received materials inspected into the cartons materials verified with the amount required if all the materials are as per requirement the receipt will be given to the supplier Payment will be made to the supplier within 30 days period.

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 not satisfactory 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 Bottled Water

Unpurified Water

Empty Bottle

Caps & 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 is the analysis of source of water. After the chemical analysis, the specifications of the purification plant are set. 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 and taste of the water. Water is then passed from dosing pump-II, where Sodium Meta Bisulphate is added.
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Water is filtered next and passes through dosing pump-III, where anti scallant is added. Water then passes through reverse osmosis module. 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 avoid any contamination from bacteria. The water then passes through Ozonator to further kill 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 at Culligan

Washing, Filling & Capping Plant

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Every day there are 3000 bottles filled so out of those random bottles are picked to test the water in the chemical and micro labs. They are tested to see the ratio of chemicals is according to the standards. The quality is checked.

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Ideal for you when you are on-the-go and for the kids lunch boxes

Is presented to customers particularly in restaurants and cafs or on your table or in your bag ... Always with you everywhere!

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 of the main dynamics. It is suggested that the Bottles should be clear. The bottle should give a reflection of light sky blue color, which is considered a natural symbol 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 of water.
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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 / Metric System Batch Number or code number
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Culligan will have only one warehouse which will be 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 inventory storage 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 the warehouse for less than 12 hours. As the trucks can load up to 200 bottles each they will make the delivery after the bottles have been packed and arranged.

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Mode of Transportation: Road: Raw material. Trucks and Wagons will be the mode of transport for raw materials. Transportation of raw materials to the factory will be the responsibility of the supplier.

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Culligan Pvt Limited will have its own distribution network. Status: In house distribution Road: Finished Goods Trucks: Hyundai Shahzore Suzuki Pick up Mazda Truck Units 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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CUSTOMERS

LOADING OF BOTTLES ON TRUCKS

FINISHED GOOD WAREHOUSE

PURIFICATION PLANT

WATER STORAGE TANKS

FACTORY RAW MATERIAL WAREHOUSE

UNPURIFIED WATER Muslimabad hydrant

EMPTY WATER CANS 5.0 GALLONS Delta waters,Kasim Brothers

CAPS AND SEALS Tanzeela and Quality Suppliers

CHEMICALS Merrcck and Javaid Chemicals

RAW MATERAIL SUPPLIERS

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