QUALITY AUDIT IN FOOD INDUSTRIESPRESENTED TO: Dr. Yaseen

PRESENTED BY:  HINA WAQAR (22972)SIDRA NAJAM (23006)FARYAL AFZAL (22964)

INTRODUCTION TO ENGRO CORPORATION

Engro stands for “energy for growth”.

The company was incorporated in 1965.

FROM ESSO TO ENGRO:

The company was formerly named as Exxon Chemical Pakistan Limited until 1991.

The Company was renamed as Engro Chemical Pakistan Limited in 1991.

ENGRO BUSINESSES  

Engro Fertilizers Limited.

Engro Foods Limited.

Avanceon Limited.

Engro EXIMP Private Limited.

Engro PowerGen Limited.

Engro Polymers and Chemicals Limited.

Engro Vopak Terminal Limited.

INTRODUCTION TO

ENGRO FOODS LIMITED

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 enter the `Halal food` business in America and Canada through acquisition of `Al Safa Halal`.

With an acquisition of Al Safa – a fast growing and established Halal meat brand – Engro Foods is now venturing into North American market starting from Halal Foods category.

ENGRO FOODS BRANDS

The company’s brands include:

Olpers Milk

Omore ice cream

Tarang

Olpers Lite

Owsum

Olpers cream

Dairy Omung

ENGRO FOODS VISION AND MISSIONENGRO FOODS LIMITED VISION:

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

Delight Worldwide” 

MISSION OF ENGRO FOODS LIMITED:

“Our mission is to build branded food business to improve quality of life by offering tasty, affordable and highly

nutritional products to our consumers while maximizing stake holders' value”.

INTRODUCTION TO

QUALITY AUDIT

QUALITY:

A frequently used definition of quality is: 

“Delighting the customer by fully meeting their needs and expectations”

  

AUDIT:

“An examination and verification of a company's financial and accounting records

and supporting documents by a professional, such as a Certified Public Accountant.”

 

WHY AUDIT?

Quality systems control the mechanisms that develop and deliver products and services to customers.

To determine if an organization’s Quality System complies with the requirements of the Reference Standard.

To determine if the acts and decisions made by an organization’s personnel conform to the Quality System as defined in Quality Policies, Procedures, Instructions, Manuals, Standards, etc.

To verify the effectiveness of the activities that makes up organizations Quality System.

To promote Continuous Improvement.

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”.

TYPES OF QUALITY AUDIT

Types of quality audit are as follows:

Internal Audit - (First Party)

External Audit - (Second or Third Party)

Product Audit

Process Audit

Systems Audit

  QUALITY AUDIT ACCORDING TO ENGRO FOODS LIMITED

It’s not a `hide n seek` game.

It’s fact finding practice.

To verify compliance.

To unlike inspection which is a `fault finding`.

Mr. Jahanzeb Ali Khan (Packaging Development Manager)

QUALITY AUDIT OBJECTIVES

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

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 your quality management system. 

To list your quality system in registry of an independent agency. 

To verify that your quality system continues to meet requirements.

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 consistency between manufacturing and testing facilities.

To identify problems internally and correct problems.

EXTERNAL AUDIT

External audit is being done once a year and they give certificate. It’s actually a compressive plan.

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

PHASES OF QUALITY AUDIT

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

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: Prepare checklists (use to evaluate quality management

system elements).  Prepare forms (use to record observations and collect

evidence). 

Engro Foods Limited collect evidence by:

Interviewing personnel.  Reading documents.  Reviewing manuals.  Studying records. Reading reports. Analyzing data.  Observing activities.  Examining conditions. 

Investigates clues:

Engro Foods Limited find clues that point to possible quality management system nonconformities should be thoroughly and completely investigated. 

Draw conclusions:

Engro Foods Limited auditors draw conclusions about how well the quality system is applying its policies and achieving its objectives. 

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

of production and that the products reach the consumer as per promise.

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

reception at the plant. It is only after the milk clears certain tests that the Quality

Control department accepts it and transfers it to the cooling plants.

Second System:

Quality control experts are involved throughout the production process.

After 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.

QUALITY AUDIT TRAINING PROGRAMME

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

Engro conducts internal audit training program, external audit training program, supply audit training program, product audit training program.

There is a five day training program for employees.

SIX SIGMA AT ENGRO

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 sigma’s 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.

- 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:

BRC HALAL SQF 2000 IFS ISO 22000 ISO14000 ISO9000 ISO 18001

Quality is a perception. Engro mainly focus on quality not on quantity as quantity will come from quality in any way.

- Mr. Jahanzeb Ali Khan (Packaging Development Manager)

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. It’s very difficult for us to maintain our prestige and name. We maintain our

goodwill.”

- Mr. Jahanzeb Ali Khan (Packaging Development Manager)

HOW TO MINIMIZE PRODUCT DEFECT RATIO

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 observation at every level so that our product defect ratio minimizes at its maximum level.

MANAGING EXPIRED STOCK

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 brand known throughout the country for its nutritious wholesome goodness and pure natural taste.

MILKPAK is now fortified with extra strength of Iron, Vitamin C and Vitamin A.

  

Engro Olper’s:

 Engro Foods has been serving Pakistani consumers from 2004. Olpers is also standardized UHT milk throughout the country.

 The prices of Olper’s vary according to the size.

 

QUALITY PERFORMANCE

82%

3%

75%

8%

55%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Olper’s Milkpak Haleeb

Good Bad

CONSUMERS’ ATTITUDE TOWARDS MILKPAK AND OLPERS:

SWOT ANALYSIS OF OLPERSSTRENGTHS:

Engro’s back

PR with farmers

Positive response from customers

Its taste

Third-Generation Plant

OPPORTUNTIES:

Awareness

Capital to expand

Global Businesses

WEAKNESSESS:

Packaging

Milk collection & distribution costs

Low Quality Milk

Brand loyalty of customers

THREATS:

Competition

Perceptions and Price Differentials

ENGRO FOODS AWARDS

2011:

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:

Engro Foods Limited is adjudged as the “Best Local Company to Work for” by Pakistan Society for Human Resource Management in a survey of twenty companies across Pakistan.

2007:

Olper’s 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 E-Inclusion.

 

RECOMMENDATIONS

Following are the suggestions and recommendations for Engro Foods Limited.

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

Olpers Lite advertising should conform to local values.

Develop an integrated awareness plan in order to aware the people about the quality of the UHT milk as compared to other pasteurized or loose/fresh milk.

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 it’s an opportunity for them to grab & enjoy the flavour.