POM FINAL ON RICE MILL

8/7/2019 POM FINAL ON RICE MILL

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Superior University Lahore

Resource person: Sir Ali

Presented by: Group The Rocks

Group Leader

Kashif Ali (Roll # 9215)

Pirzada Arslan sabri (Roll # 9234)

Naeem ranjha (Roll # 9212)

Haseeb tahir (Roll # 9230)

Naveed ul hassan (Roll # 9243)

Zahid Ismail (Roll # 9239)

BBA-A-5

SUPERIOR UNIVERSITY, RAIWAND ROAD, LAHORE


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Topic:

Production Operation Department of the company

Al Rehman Rice Mile


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Table of contents

Topic Page no

1.Dedication 042.Acknowledgement 053.Executive summary 064.Companys overview 075.Mission 076.Introduction 087.Products 098.Production 109.Production Process 1310.Production planning 1811.Forecasting 1812.Product costing 1913.Inventory management 1914.Quality control & raw material 2015.Recommendation 21


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Acknowledgement

We would like to thank the almighty Allah for giving us the

strength and capability for carrying out this visit. We

would also like to thank Sir Ali for his cooperation help

for any queries we had regarding production operations.

We deem it a privilege and a source of great pleasure in

writing the rightful acknowledgement of the inspiring

guidance. And through this activity of visiting production

department that we have come to know that how widely we

have understand and implement those procedures in future.


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EXECUTIVE SUMMARY

We were assigned pre-mid assignment related to the

subject Production Operation Management in which we

have to get information about Production operation of any

company. The project was assigned to us by the resource

person Sir Muhammad Ali.

It was a group project and all the members were assigned

visit company in order to complete this assignment. We

started this assignment with the selection of company. We

selected Al Rehman Rice MileOn 21 November we

visited Al Rehman Rice Mile, spent whole day with

production manger Mr. Naveed Ali observe his activities &

at the end we conducted interview with him.

The assignment was very beneficial for us as with the help

of this we have understood the production activities. It was

completely practical and it has helped us in understanding

many concepts of the course.


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COMPANYOVERVIEW

Al Rehman Rice Mile is one of the leading manufacturing organizations in Pakistan producing

different kind of Rice..

Al Rehman Rice Mile was incorporated in 1992. It is a private company. Its total number of

employees is 60 out of which 45 employees are working in production department. They are

using heavy machinery mostly machines they import from India. Their daily production of rice is

more then 45 ton. Their average purchasing of raw material of rice (monji) 3 lakh to 5 lakh bags

per year. Each bag contains contain averagely 60 kg.

MISSION:-

To be the market leaders all over the world

VISSION:-

good quality good health

Corporate Profile

1.Cpmpany Owner

Seath Muhammad Ashraf

2.Company Manger

Naveed Ali

3.Registered Address

Suwa Gujju Matta Kahana Nau


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23. Off FEROZPURE ROAD, LAHORE-PAKISTAN

Tel: 0092-42-5271227-8


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INTRODUCTION

We were assigned a project ofPRODUCTION OPERATION MANAGEMENT by SIR

M.ALI to visit a company and to meet the production manager & observe their production

operation. We have selected Al Rehman Rice Mile for our project. On Saturday 21

November 2010 we went to Al Rehman Rice Mile and observe their production

activities. At the end of the day we took interview of production manager Mr.Naveed Ali who

is working in Al Rehman Rice Mile last 8 year.


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PRODUCT Rice

Types of rice

(i) Super basmati kernel

(ii) Super kernel

(iii) irri6


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(iv) Irri 86

(v) Irri k.s

(vi) Irri super fan


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PRODUCTION

The Al Rehman Rice Mill is the provider of rice, to Pakistan and export to other countries. Atpresent they are producing 45ton per day and this ratio is fluctuate day by day. Mostly they

give rice to retail or whole seller and in some quantity and also they export to foreign markets..


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PRODUCTION PROCESS

Al Rehman rice mill have four production processes in which one is

i. Drying portii. Filtering

iii. Polishingiv. Packaging.

Drying portFirst department is drying department. For to dry rice there is big place allotted for that there

are several labor people are working for that purpose they put the raw material into the drying

port for drying because when raw material come to the mill it is in the wet condition and it

cant be stock and process until it become dry. And if they do not dry the rice then the breakage

rate can be increase. Approximately they dry 40 ton rice in 8 hours. After drying the rice they

send them to the next department.


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FilteringIt is the 2

ndprocess in which drying rice come into the filter machinery. The machinery filter the

rice sends into the polishing machinery. The company manger Naveed Ali was saying that they

sale the wastage that come from filtering process and earn money and its approximately amount

18 to 25000 per day.


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PolishingIt is 3

rdprocess in which rice polish and come into the finishing goods in this process some rice

brakeage, in this machinery automatically divide into the three category

i. Pure Riceii. Half brakeage

iii. Less half brakeageOne thing more that they get from this machinery that is (powder) that comes from rice and it

used in feed.


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PackagingIt is final process in which they pack the rice into the bag. The bag contain on 50 kg packing.

And some time when they want to export in foreign countries they like to pack in 5kg, 10kg, and

25 kg bag. Its depend on order.


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Production Planning

The production manger and company owner they both make plan of production. Manger Naveed

Ali was saying we make production planning for six month because our business of rice based

on 4 to 6 month season so we purchase raw material in bulk quantity only for this purpose that

we can continue our business whole year because it is difficult to purchase raw material in out of

season by two reason

Raw material short in marketRate are high

Forecasting

Their forecasting based on 310 days plan because in this business lot of variation come by the

shortage of raw material or increasing the cost of raw materia l and manger was saying even

they forecast for short period of time but mostly their accuracy level do not perfect .

They like to use the Seasonal forecasting method,


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Product Coasting

They used the simple method for cost they set the price of product according to price of the

market. And also they used simple formula.

Market price of rice - cost of raw material =product cost

They are the big trader of rice so mostly they export the rice in different counties on market rat

Inventory Management

This is the main thing that handle all the material either it is coming are going out after finishing

In this regard there are some tools which are used in that department ware house

Al Rehman has big ware houses in which they saved their raw martial and finishing goods. They

can stock2 lakh to 5 lakh bags in their ware houses. For the inventory management they have

supervisor (thekidaar) who control all the inventory


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Quality Control

Their quality of rice based on quality of raw martial if raw material (Monji) is good quality thenthe quality of rice would be good. So production manger first cheeked the raw material if it is in

good condition he passes. The quality of rice control the machinery automatically .they

purchased this machinery from India and its cost near about 9500000.They hire engineer who

run this machinery. The manger was saying when they take order from export their main focus

on quality so he him self control the quality.

Raw Materiel Purchase

They purchase raw material (Monji) from different markets (Mandes) because they are doing

this business last 20 year so they have strong network in different markets and most ly they

purchase on credit of 1 month to 2 month. the manger was saying if the raw materia l is not

good ,the quality of rice can not be good so it is most important process to purchase the good

raw material .they have linked in Kasur mandi , Shekopora mandi ,pakpatan mandi ,depalpour

mandi sahiwal mandi, etc and also they purchase from local market from farmer .

Marketing and finance

They have no marketing and finance department.


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RECOMMENDATIONS:

They should have proper arrangement of cleanliness.They should have communication with Finance Department.They should do marketingThey should develop the MIS system in organization

Documents

POM FINAL ON RICE MILL