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Chapter 1

Introduction
1.1 Purpose
This report provides information about the term project of Total Quality management course. The
purpose of this project was to study and analyze process flow and quality control (QC) practices
of any manufacturing industry. The knowledge related to quality management gained during the
TQM course have been implemented in this project. An Understanding of elemental practices of
Quality control and assurance of the selected industry have been developed. The ultimate purpose
of this project was to learn and apply the key Quality management concepts on a real industrial
scenario.

1.2 Introduction of Organization


1.2.1 Selection
In order to accomplish the above mentioned purpose, Slice Corporation Pvt Ltd have been
selected. This organization is a subsidiary of Pepsi Cola Pakistan. It operates under the Haidri
beverages which is the main franchise of Pepsi Cola Pakistan in Islamabad. This is a
manufacturing industry. The core function of this organization is the production of foods and
beverages. The company’s structure contains various units including production, Quality Control
(QC), Quality Assurance (QA), Supply Chain, Distribution, Sales etc. As a whole, this
organization serves as a best fit for carrying out a Quality control project.

1.2.2 Organization Profile


PepsiCo Inc. is an American multinational food and beverage corporation, headquartered in
Harrison, Purchase, New York, United States. It was formed in 1965 with the merger of the Pepsi-
Cola Company and Frito-Lay, Inc. and generated annual net revenue of $64.6 billion in 2018.
PepsiCo is the second largest food & beverage business in the world based upon net revenue. The
company is registered in New York stock exchange U.S.A. To make a better control over the
business the company has given the manufacturing rights to different companies. These
companies are producing the products around the world on the behalf of the company by using

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company’s trademark. To maintain their goodwill and reputation in the market, the company has
a strict policy of granting manufacturing rights. Following are the major products of PepsiCo
International;

• Pepsi • Pepsi Zero Sugar


• Mountain Dew • Mirinda
• Lay’s Potato Chips • Slice
• Diet Pepsi • Cheetos
• 7up • Aquafina bottled Water

1.2.3 History of Pepsi Cola Pakistan


Pepsi entered Pakistan for first time in 1959 but could not sustain due to the turbulence of that era.
First plant of Pepsi was setup in Pakistan in 1971 in Multan. Since then Pepsi with its aggressive
marketing planning and quick diversification in creating and promoting new ideas and product
packaging, is successfully maintaining its No.1 position in Pakistan. In 1979, it secretly started
promoting its products in Pakistan. It emerged as a market leader in the next five years. Although
it faced a great competition by local beverages brands and Coca Cola upon its arrival but it
managed to gain a major share in the market. Pepsi holds 70% of the market share in Pakistan. It
has franchises in the 9 regions of Pakistan. These franchises are located in the cities mentioned
below;

• Islamabad
• Lahore
• Karachi
• Peshawar
• Sukkhur
• Faisalabad
• Multan
• Gujranwala

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1.2.4 Haidri Beverages (Pvt) Ltd
Haidri Beverages is the largest beverage company in Pakistan. It is a franchise of PepsiCo Inc. The
company has a successful business history of more than 25 years. Its mission is to produce PepsiCo
quality beverages, maintain market leadership by growing sales volumes, strengthen market share,
deliver ROI to all of its stakeholders and fulfill its responsibilities in the community.

It is a company with a broad vision. Their vision is to catch the speed at which the business world
is progressing and to become more efficient in the production management, financial management,
Supply chain, Human resource, Sales and distribution at all levels. Change is always a challenge
however with committed and hardworking team that it can make anything successful with its
perseverance and effort.

The major objective of the company is to produce and supply of highest quality, which conforms
to both the national and international quality standards. The company is committed to provide
maximum level of customer satisfaction.

1.3 Competitors
As one of the biggest International beverage brands, Company have various competitors around
the globe. Some of these competitors are mentioned below;

• The Coca-Cola Company


• Red Bull Gmbh
• Dr Pepper Snapple
• Dabur Real Juice
• Kraft

The Company have some Local Competitors in Pakistan for its product of Slice Juice such as;

• Nestle
• Maza
• Murree brewery

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1.4 Haidri Beverages Divisions
Haidri beverages have further divisions on the basis of production setups and products. Sections
of the company with their respective functions are explained below;

1. Haidri 1
2. Haidri 2
3. Haidri 3

1.4.1 Haidri 1
Haidri 1 is dedicated to the production of Soft drinks. This plant is operated by Krones, which is
a German Company. It uses Krones COMBI-LINE. In COMBI-LINE if one section of the
assembly line stops working the whole line will get stopped automatically.

1.4.2 Haidri 2
Haidri 2 uses the SIDLE-LINE for the manufacturing of soft drinks. It is operated by an Italian
company SIDEL. SIDEL-LINE differs from the krones in a way that even if one part of the
assembly line stops working, the rest keeps functioning.

1.4.1 Haidri 3
Haidri 3 plant uses the TETRA-PAK production setup. In this plant Slice fresh juices are
manufactured.

1.5 Products
In Haidri Beverages various products are manufactured including snacks and colas. Some of the
products are mentioned above such as Pepsi Cola, Mirinda, 7up, Kurkure and Slice. For this
project, Slice Juice have been selected. Therefore the major focus of Quality analysis will be
regarding the production of Slice Juice.

By May 1987, Slice, which was 10 percent juice, had captured an impressive 3.2 percent of the
$40 billion cola-dominated American market. But over the years a drop in its shares have been
observed.

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Figure 1.1 slice Juice 200 ML Figure 1.2 Slice Bottle 1Litre

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1.6 Organization Structure

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Chapter 2
Process Flow of Slice

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