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QUALITY AUDIT IN FOOD INDUSTRIES

PRESENTED TO: Dr. Yaseen PRESENTED BY: HINA WAQAR (22972) SIDRA NAJAM (23006) FARYAL AFZAL (22964)

INTRODUCTION TO ENGRO CORPORATION

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Engro stands for energy for growth. The company was 1965. incorporated in

FROM ESSO TO ENGRO: The company was formerly named as Exxon Chemical Pakistan Limited until 1991.

Engro Businesses
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Engro Fertilizers Limited. Engro Foods Limited. Avanceon Limited. Engro EXIMP Private Limited. Engro PowerGen Limited.

INTRODUCTION TO ENGRO FOODS LIMITED

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Engro Foods Limited is a subsidiary of Engro Corporation Limited. Its been more than 40 years in fertilizer and chemical. Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Two processing plants at Sukkur and Sahiwal. Engro plans its first international venture to

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ENGRO FOODS BRANDS

The companys brands include:
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Olpers Milk Omore ice cream Tarang Olpers Lite

ENGRO FOODS VISION AND MISSION

ENGRO FOODS LIMITED VISION:

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To become fast growing mega Food Company & also to elevate Consumer Delight Worldwide

MISSION OF ENGRO FOODS LIMITED:

INTRODUCTION TO QUALITY AUDIT

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QUALITY:
A frequently used definition of quality is:

Delighting the customer by fully meeting their needs and expectations

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AUDIT:
An examination and verification of a company's financial and accounting records and supporting

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Quality systems control the mechanisms that develop and deliver products and services to customers. To determine if an organizations Quality System complies with the requirements of the Reference Standard. To determine if the acts and decisions made by an organizations personnel conform to the Quality System as defined in Quality Policies, Procedures, Instructions, Manuals, Standards, etc.

Why Audit?

Quality Audit
Quality audit may be defined as:

A process for checking that procedures are in place to assure and improve quality, integrity or standards of provision and outcomes.

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Types of Quality Audit

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Types of quality audit are as follows: Internal Audit - (First Party) External Audit - (Second or Third Party) Product Audit Process Audit

Quality audit according to Engro Foods Limited

Its not a `hide n seek` game. Its fact finding practice. To verify compliance. To unlike inspection which is a `fault finding`.
Mr. Jahanzeb Ali Khan (Packaging Development Manager)

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Quality Audit Objectives

In Engro Foods Limited quality audits are intended to achievethe following kinds of objectives:

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To determine to what extent your quality system:

Achieves its objectives. Conforms to your requirements. Meets customers' contractual requirements. Conforms to a recognized quality standard.

To improve the efficiency and effectiveness of

Internal Audit
In Engro Foods Limited internal audit is being done in every department and at every level. Internal audit is being done in every 3 months for every department. Engro Foods Limited tries to achieve

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consistency between manufacturing and testing facilities. To identify problems internally and correct

problems.

External Audit
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External audit is being done once a year and they give certificate. Its actually a compressive plan.

Engro Foods Limited ensures that adequate quality systems are maintained to assess compliance with the firm standard operating procedure.

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Phases of Quality Audit

Engro Foods Limited starts the audit by having an opening meeting with the auditee senior management.

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This meeting:

Introduce the audit team. Clarify scope, objectives, and schedule. Explain how the audit will be carried out. Confirm that the auditee is ready to support the audit process.

Engro Foods Limited prepares audit working paper:

Engro Foods Limited collect evidence by: Interviewing personnel. documents. manuals. records. data. activities. conditions.

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Reading

Reviewing Studying Reading

reports.

Analyzing Observing

Examining

Investigates clues:

Draw conclusions:

Engro Foods Limited auditors draw conclusions about howwell the quality system is applying its policies and achievingits objectives.

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Discuss result:

In the end, Engro Foods Limited auditors discuss evidence, observations, conclusions and recommendations with auditee senior managers before they prepare a final audit report.

Quality Assurance
Quality Assurance is strictly followed in Engro Foods.Qualified food technologists at this department ensure that highest quality parameters are adhered to through all steps ofproduction and that the products reach the consumer as per promise.

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QUALITY CONTROL SYSYTEM

In Engro Foods Limited following types of quality control system exist to assure the procurement of the best quality raw milk. First System: Engro Foods Limited quality control procedures are introduced right at the point of milk collection that is at the milk collection centres. Lab tests are conducted in order to check the milk. Quality check is carried out right at the time of milk

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Second System: Quality control experts are involved throughout the production process. the packaging process is complete, Quality control resurfaces this time not only to ensure that the packages are sterilized but also to ensure that the milk packages are of the prescribed weight. And after a final approval, the milk products are considered fit for delivery and transferred to the warehouse.

After

Quality Audit Training Programme

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Quality audit programme is being organized in Engro Foods Limited for every department, special training programs.

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Engro conducts internal audit training

program, external audit training program, supply audit training program, product audit training program.

Six Sigma at Engro

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Engro is among the first Pakistani companies implementing six sigma across all areas. Six sigma was launched in February 2006. Among the focus areas, employee development is the most critical and six sigma will be leveraged to help bring out the best in our people. Six sigmas robust problem-solving methodology and statistical tool allows the company to benchmark processes against global standards.

It helps ensure that we sustain our promise of delivering high quality products and services to our customers on time, every time. Communication is critical and Engro conducted six sigma launch events country wide as well as two internal conferences and electronic and print updates throughout the year management and non management employees were trained extensively during 2006 & 2007 on six sigma principles.

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- Mr. Jahanzeb Ali Khan (Packaging Development Manager)

Quality Standards That Are Followed In Engro Foods

In Engro Foods more than 10 standards are being used for the quality control and quality assurance of every products quality. Some of them are as follows:

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BRC HALAL SQF 2000 IFS ISO 22000

Quality Setup

Our organization has set some specifications. And Engro Foods Limited work according to that. Profit is nothing for us. Healthy relationship with our customers is very much important for us. We follow ethical practices. Its very difficult for us to maintain our prestige and name. We maintain our goodwill. -

Mr. Jahanzeb Ali Khan (Packaging Development Manager)

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How to Minimize Product Defect Ratio

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Engro has set a certain product requirements, which they have to fulfil and meet. They have different elements, different audits, they have to follow them to minimize our product defect ratio. There are no such big loses faced by Engro Foods Limited in terms of production. As our plants, are being continuously monitored at every level of the production. They make their best to assure quality of our each brand. Every department is under strict

Managing Expired Stock

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As Engro holds the biggest market share, its products are fully consumed. But if any of the milk is left behind than that milk is re-treated so that it can be used again. That expired milk is not thrown or disposed of. As this condition never arises but if somehow arise than that milk is re treated for use again.

Nestle Milkpak:

Nestle has been serving Pakistani consumers since 1988, MILKPAK is a standardized UHT milk and is a trusted brandknown throughout the country for its nutritious wholesome goodness and purenatural taste. MILKPAKis now fortified with extra strength of Iron, Vitamin C and Vitamin A.

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Quality Performance
82% 75%
Good Bad

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90% 80% 70% 60% 50% 40% 30% 20%

55%

18% 8%

3% 10% 0% Olpers Milkpak

Haleeb

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Consumers Attitude towards Milkpak and Olpers:

SWOT ANALYSIS OF OLPERS

STRENGTHS: WEAKNESSESS:

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Engros back

Packaging

PR with farmers

Milk collection & distribution costs

Positive response from customers

Low Quality Milk

Its taste

Brand loyalty of customers

Third-Generation Plant

ENGRO FOODS AWARDS

2011:

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Engro Foods Limited has been awarded EPICA Award Excellence Award: Recognizing a life time of excellence. The Engro Excellence Awards aims to be an annual event.

2008:

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2007:

Olpers Milk is adjudged Best Brand Campaign and Best Television Commercial by Business Recorder. Engro milk automation network has been awarded the Pakistan Software House Association-ICT award in the category of E-Commerce and EInclusion.

RECOMMENDATIONS
Following are the suggestions and recommendations for Engro Foods Limited.

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They should also start to manufacture powder milk in order to meet the domestic demand.

Olpers Lite advertising should conform to local values.

Engro Foods Limited is not having its own dairy farms. Engro Foods Limited needs to have their own Dairy Farm so that they can meet the increasing demand and to have quality milk procurement as well. They should expand their brand portfolio by investing in yogurt market as their competitors are enjoying it just because of low competition their otherwise Milk pack has its brand name in drinking milk market only. So its an opportunity for them to grab & enjoy the flavour.

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