Production and Operations Management

Haleeb Foods
Final Project
Group
Detail:-

Aqib Ayoub (BBHM-F19-067)

Mian Abuzar (BBHM-F19-070)

Abdul Jabbar (BBHM-F19-103)

Bilal Kaleem (BBHM-F19-105)

Hassan Ali (BBHM-F19-117)

Class/Section:-

BBA (6A)

Submitted by:-

Prof. Ahmad Bilal

Submission Date:-

12-04-2022

Mid project Page 0

Contents
Profile of company:...............................................................................................................................1
Introduction of company:......................................................................................................................1
Mission of Company..........................................................................................................................2
Vision of Company.............................................................................................................................2
Values of the Company......................................................................................................................2
Goals:.................................................................................................................................................2
SWOT Analysis:......................................................................................................................................2
Strengths...........................................................................................................................................2
Weaknesses.......................................................................................................................................2
Opportunities:...................................................................................................................................2
Threats:.............................................................................................................................................3
Products:...............................................................................................................................................3
COMPETITORS.......................................................................................................................................5
Olpers:...............................................................................................................................................5
Nestle Milkpak:..................................................................................................................................5

Profile of company:
 Haleeb Foods Limited (HFL) is Pakistan's leading Food and Beverage Company with
foremost focus on hygiene, nutrition, health and well-being of its consumers. We are one of
the pioneers of the dairy sector in Pakistan and have contributed substantially to the
continuous growth of this sector.

Introduction of company:
 Haleeb Foods Ltd. (HFL) continues to be at the forefront of product and packaging
innovation. It has achieved market leadership in several food categories with a very strong
portfolio, consisting of leading national and international brands.
 It has also introduced a number of unique products, like Haleeb milk, delicious traditional
Lassi (buttermilk) prepared with pure thick milk and yogurt
 As reported by the company, its annual turnover was Rs.7.2 billion during 2005. Initially, the
name of HFL was Chaudhry Dairies Limited (CDL). During 1980s, when various dairy
industries took a boost in Pakistan, CDL came to into existence in 1984 as a small production
 unit. The milk processing plant was installed at Bhai Peru, District Kasur in 1985. It started
its trials and the commercial production started on May 21, 1986. Haleeb’s administrators
claim that their plant adopted the latest technology for milk processing and thus it had an edge
over other around twenty plants in competition including Milk Pak as all other plants were
based on obsolete European technology. The idea behind UHT investment was to provide
consumers with the best quality of packaged dairy and food products that no other company
can produce. About four years later, the company decided to enter a joint venture with Friesl
and Frisco Domo (FFD) of Netherlands and continued the activity from November 1989 to
December 1991. This joint venture did not last very long because of the change in global
strategy of FFD and was amicably dissolved. Haleeb then went on its own till December 1998
till it signed a contract with Candia that is a market leader in France. Under this agreement,
the company launched Candia value added liquid milk products all over the nation. But, After
a successful run, Haleeb’s uninterested and incompetent managements of the past caused it to
lose its leading market position from turnover of Rs.10 Billion to revenue deficit in year 2006.

Mission of Company
“To build branded food business to improve quality of life by offering tasty, affordable and
highly nutritional products to our consumers while maximizing shareholder’s value”

Vision of Company
“Most innovative and fast growing food company offering products enjoyed in every home
every day or Excellence in food and especially in Dairy products”

Values of the Company

 Enterprise
 Empowerment
 Trust
 Teamwork
 Accountability

Goals:
 Capturing the Market.
 Providing Quality & Hygienic Products.
 Increasing Pakistan’s Share in Dairy Products.
 Maintaining a Profitable business.
SWOT Analysis:

Strengths
 The Thickest Milk
 Taste
 Nutritious
 Hygienic
 Packaging

Weaknesses
 Focus Shifted from Main Product to other products.
 Lack of Research & Development.

Opportunities:
 Target market has big profit margins
 Bright scope of dairy products.
 Target Market can be located with cost effective media.

Threats:
 Big Competitors
 Inefficient Labour
 Animal Diseases
 Availability of Natural Milk

Products:
 Haleeb Asli Desi Ghee:
Haleeb Asli Desi Ghee is obtained from pure milk through the traditional procedure of heating butter
slowly. Haleeb Asli Desi Ghee is free from all artificial ingredients; it has pure and natural taste and is
nutritionally preserved. It comes with 1 year shelf life.

 Daizy Butter:
Daizy Butter is the best natural source of Vitamins A & D for everyone, and by far the ideal way of
starting yet another busy day. It is rich in its taste and revitalizes your energy for a long tiresome day.

 The Premium Cream:

The premium cream processed hygienically from pure fresh milk, Haleeb Cream is luxuriously rich in
its thickness and nutritional value. It promises the richest assortment of tempting toppings, delicious
desserts and creamiest coffee with its unique taste, also great for eating with bread etc. Packed in 6-
layered Tetra Pack Brick Aseptic packaging and has a shelf life of 6 months.

 Daizy Plain Yogurt:

Daizy Plain Yogurt meets the highest quality standards and gives consumers unmatched quality,
freshness and taste with every spoonful. Offered in 450g, 200g and 900g packing, with a freshness
seal that keeps the product attributes fresh throughout its life.

 Haleeb Liquid Tea Max

In tune with the Haleeb Foods tradition of providing consumers high quality and value added
products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Max is special milk
that provides a rich taste in your beverage. It is packed in a 6-layered Tetra Pack Brick Aseptic
packaging and has a shelf life of 3 months.

 Haleeb Powder Tea Max:

In tune with the Haleeb Foods tradition of providing consumers high quality and value added
products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Max is special milk
that provides a rich taste in your beverage, carefully packaged in a safe and hygienic pouch.

 Haleeb Cheddar Cheese:

Haleeb Foods makes a new addition, Haleeb Cheddar Cheese, to its healthy and wholesome product
range. Discover great taste, premium quality and the power of Vital 3 in every recipe made with
Haleeb Cheddar Cheese. Vital 3 is the right combination of calcium, protein and vitamins in Haleeb
Cheddar Cheese, which acts as a source to enhance the brainpower, especially for growing children.
Haleeb Cheddar Cheese is specially made with Halal ingredients at the state-of-the-art dairy plant
conforming to international quality standards. And for the first time in Pakistan, it is also offered in a
customized 2 slices pack. The product is sealed and packed in air-tight packaging, which keeps the
product fresh and tasty.

 Haleeb Good Day:

Haleeb Good Day offers consumers a range of 100% pure juices, without any added sugar, flavors or
preservatives. For consumption absolutely anywhere and anytime, Good Day's four premium juices
(apple, red grape, orange, and fruit cocktail) give you the absolute delight in taste, and revitalizes you
at the same time. It is packed in a 6-layered Tetra Slim Pack Brick Aseptic packaging with easy
opening.

 Haleeb Milk:
Consumers everywhere know that only Haleeb Milk makes the best tea ever because of its thickness.
Haleeb is pasteurized, homogenized, and standardized pure UHT milk of the highest standard with
3.5% fats and 8.9% solid non fats. It is Haleeb Foods premier brand, and the choice of quality-
conscious consumers who only go for the best. Packed in easy to open, 6-layered Tetra Pak Slim
Brick Aseptic packaging, it comes with a 3 months shelf life.

 Dairy Queen:
Dairy Queen is standardized and homogenized pure UHT Milk with 3.5% fat and 8.9% solid non fats.
At an affordable price it has won the hearts of consumers everywhere. It is available in 6-layered
Tetra Pak Fino Packaging, introduced for the first time in Pakistan and has 3 months shelf life.

 Candia Candy Up:

With the backup of Candia, Candy Up has been launched especially for flavored milk drinkers, in
chocolate & strawberry flavors to the sheer delight of children. The fact that it comes in a bottle
makes up for convenient usage as well.

 Haleeb Skimz Liquid Milk:

Skimz is the only completely fat-free milk with the richness of pure milk. Minus fats, it is an ideal
choice for weight-watchers and heart patients. It is also high in calcium content, which prevents
osteoporosis. Packed in a 6-layered Tetra Pack Brick Aseptic packaging, it comes with a 3 months
shelf life.

COMPETITORS

Olpers:
Olpers has done very good advertisements in the past and in especially in the month of
Ramadan.

Olpers has been saying “SUBAH BAKHAIR ZINDAGI”

Nestle Milkpak:
Milkpak has been advertising in the market as “KHALIS HI SAB KUCH
HAI”

Market volume/share :

Haleeb 22%

Nestle 45 %

Adams 5%

Good Milk 1%
 Olpers 17%

Dairy queen: 9%

Nurpur 4%

Other: 2%

The company transforms the inputs into outputs:

HFL have two types of core inputs that are

provided by numerous suppliers from all over the Pakistan. These inputs include:

 Milk
 Fruits
We will describe about the supplying process of both of these inputs one by one.

Milk:

First we will describe about the procedure that HFL adopts to get the supply of milk from all over the
Punjab.

HFL have three types of different of milk suppliers. They are

 Large Farmers like dairy farms

 Small Farmers
 Milk Man.
Recently, HFL have 428 Milk Collection Centers in Punjab, where the milk from approximately
200000 dairy forms is collected. These all centers are equipped with plants titled as Chillers where
milk is stored for very short time period before the transportation to production facility.

First of all, milk is supplied by all three types of suppliers to HFL’s collection centers on daily bases. A
dedicated Quality Team carefully examines the milk and immediately stored into a Chiller if it
matches the required standard of HFL. There are four types of Chillers as far as their capacities are
concerned. These capacities are of 1000, 1500, 1800 and 2300 of litters, which are equipped
according to the quantity of milk that is received at particular Milk Collection Center.

It is essential to make milk chilled up to 4 degree grade for strengthening its quality life. After that, it
is immediately dispatched to the manufacturing plant if it is located at the distance of 3 to 4 hours
drive.
In case, the production facility has longer distance from Milk Collection Centers, HFL have located 18
bigger plants, known as Plate Heat Exchangers (PHE) in 18 different areas of Punjab. Milk from
collection centers is brought to these plants, where it is chilled again through liquid ice in -15 degree
grade, then loaded on trucks, sealed by plant manager and transferred to production facility.

Plat Heat Exchangers and Chillers are Equipped are equipped in following areas:

Serial Number Locations Plate Heat Chillers

Exchangers

1 Arifwala 1 43

2 Pakpatan 1 4

3 Chistian 1 47

4 Minchinabad 1 29

5 Kabir Wala 1 22

6 Dunya Pur 1 37

7 Khan Garh 1 12

8 Layyah 1 21

9 Ghazi Abad 1 19

10 Uch Sharif 1 24

11 Mian Channu 1 35

12 Havali 1 1

13 Jhang 1 33

14 Shah Jewna 1 2

15 Bhowana 1 1

16 Farooqa 1 1

17 Sahiwal 1 18
18 Bhawalnagar 1 24

According HFL’s management, company’s vender selection and procurement is the most critical
stage in entire supply chain management process. For this, HFL have dedicated a procurement team
of highly competent and skilled people, which performs four basic functions. These functions are:

1. Agri-services:
This team includes veterinary doctors and agriculture specialists, who visits village to village and
dairy forms, examines the animals and provide them medical treatment if needed. They also give
farmers free suggestions regarding animal husbandry practices, fodder cultivation, veterinary care
and breed improvement.
This process really helps HFL in selecting the supplier of prime quality milk.

2. Engineering:
This is a team of engineers which fixates plants, chillers in the selected areas for Milk Collection
Centers. They also execute daily affairs regarding the maintenance and repair of plants and
machinery in collection centers and PHEs.

3. Operations:
This team oversees the daily operations at collection centers and PHEs. It also coordinates the
activities of agri- services and engineering teams.

4. Quality:
This team examines the quality of supplied milk at all collection centers to ensure that only
standardized and nutritious milk is being supplied. HFL has a strict quality policy regarding intake of
raw milk. At every PHE meticulous quality tests are conducted to ensure that only fresh milk of the
prime quality is accepted at the plant premises. The internationally recognized tests are used to
check for:

 Adulteration
 Microbiological contamination
 Adequacy of nutritional contents
Fruits:

The process of getting the supply of fruits is quite different than milk as it is influenced entirely by
seasonal factors. Basically HFL is offering three juices flavors that include:

 Orange
 Mango
 Grapes
For these different types of fruits, HFL’s chosen areas are Sargodha, Multan and Chaman for Citrus,
Mangoes and Grapes respectively.

For the purpose of getting supply of these fruits, a manager of visits in the determined areas and
collects the samples from different farmers, which are dispatched to head office later on for the
approval. After the approval is received, a team sets up a camp in a central town of city and offers
auctions among the farmers whom samples are approved by quality management. The lowest offer
is accepted and purchased. If the required quantity of fruits is not fulfilled, team manager persuades
other farmers to sell their stock at pre-set lowest price.

Another most important supplier HFL is Tetra Pack, which provides the company packing material
that is necessary to maintain the quality and standard of its milk, creams and juices for an
appropriate time period.

1. Manufacturer:
Recently, HFL has two production facilities where all processes, from preparation to quality
assurance and to packaging, are undertaken employing state-of-the-art technology and equipment.
These facilities are situated in the districts of:

1. 62 km, Bhai Pharoo

2. Rahim Yar Khan
Due to insufficient financial position and comparatively lower demand than past, only the facility of
Bhai Pharoo is open, which is not being fully utilized too.

These both facilities can produce 1.4 to 1.5 million litters of milk on daily basis if fully utilized. HFL’s
production process is categorized into four stages that are performed in different sections. First
stage commences when a team of quality control management receives the trucks arrived from
PHEs. After their approval, milk is passed to Standardize and Pasteurize Department. In Pasteurizing
process, total quantity of milk is divided and sent to different assembly lines according to planned
target for the production of different dairy items like UHT milk, creams, powder milk, yogurt and tea
mix. Whereas in Standardization process, different ingredients are added into milk, which are
essential to produce quality, prime and nutritious milk according to “Recommended Dietary
Allowances” (RDA).

A 250 ML glass of Haleeb Milk contains the following percentage of different ingredients:

Carbohydrates 4%

Protein 17%

Fat 14%

Vitamin A 8%

Calcium 28%

Phosphorus 32%

After Standardize and Pasteurize, milk is passed to Ultra Heated Technology (UHT) function, where it
is heated in the temperature of 90 to 110 degrees. This process increases the shelf life of milk up to
90 days without any lose in quality, standard and taste.

In the last stage of production process, milk and other products are packed in different sizes of
packs and stored in facility’s warehouse for a particular time period that should not exceed from one
week, as targeted by HFL.

Type of transformation takes place inside the HFL:

Physical and location transformation is

used in Haleeb food limited.

Outputs of HFL:

Dairy Products

o Daizy Butter
 o Nutrious Thick Milk
o Daizy Yogurt
o Liquid Tea Whitener
o Powder Tea Whitener
o Daizy Cheese
o Asli Desi Ghee
o Haleeb Milk.
o Candia
o N’rish
o Cream
o Lassi drink
o Tea Max
o Fava
o CREMYUM
o All-MAX

Supply Chain Network

Businesses are often part of a larger network of organizations, a supply chain network can be
used to highlight interactions between organizations; they can also be used to show the flow
of information and materials across organizations.

 Supply chains and supply networks both describe the flow and movement of materials
& information, by linking organizations together to serve the end-customer. 
 To create value among suppliers, technical training is provided to farmers level
which in return will improve quality.

UHT Milk
 Haleeb Nutrious Thick Milk
 Dairy Queen
 Candy Up Flavored Milk
 Skimz Liquid Milk
 Skimz Powder Milk

Tropico
 Tropico Nectar
 Good Day 100% Pure
  Tropico Fruit Drink(Mango, Apple, Mix)

Demographic:

Age 7-22,23-34, 35-49, 50-64

Gender Male and female
Family size 3, 4, 5+
Life stage Children, Adults, seniors
Marital status Married, Unmarried
Education Graduate, postgraduate, ALL Levels
Occupation Salaried, self employed, business person, house
wife.
Monthly income 10k – 200k or more
Home ownership Own, rent

4V’s

Variety of Products

HFL offers several products according to the need of their customers.

Volume of Products

The quantity of the products depends on the order, which they get from their distibuters, as they
follow a similar demand pattern.

Variation in demand

HFL products have a deep connection with the trend of the particular area.

Visibility

All products are manufactured in Haleeb food limited .The quantity of the order directly
impacts the production of the product. However, the visibility of the production is not
included in the services.

KPIs Performance Objectives

Cost: Minimum cost for the best quality offered

Quality: According to the customer’s needs

Dependability: Depends on the condition of the durability of the product.

Flexibility: It depends on testing the quality of the product.

Pace: to get equal with the time flow.

Variation in demand :

. Our demond is depends on sessional trends for example in summer

the demond of milk yogurt and drinks like flavoured lasi or juices demond is increased so in
summer session our main fous is on these things as well as in the winter session the demond
of tea milk and desi ghee is increased.

customer needs, performance objectives have a profound effect on the supply network, process
types, capacity and other operations area. You need to be very clear how these things are
interlinked in context of your project.Please note that

Planning
Plan and manage all resources required to meet customer demand for a company’s product or
service. When the supply chain is established, determine metrics to measure whether the
supply chain is efficient, effective, delivers value to customers and meets company goals.
Sourcing
Choose suppliers to provide the goods and services needed to create the product. Then,
establish processes to monitor and manage supplier relationships. Key processes include:
ordering, receiving, managing inventory and authorizing supplier payments.
Manufacturing
Organize the activities required to accept raw materials, manufacture the product, test for
quality, package for shipping and schedule for delivery.
Delivery and Logistics
Coordinate customer orders, schedule deliveries, dispatch loads, invoice customers and
receive payments.
Returning
Create a network or process to take back defective, excess or unwanted products.