UNIVERSITY OF SAHIWAL

DEPARTMENT OF BUSINESS ADMINISTRATION

MBA 4th (Morning)

The Project Report of Operations Management of MA Foods PVT LTD

Submitted By:
Abu Bakar
MBA-18-03
Ahmad Usman
MBA-18-05 Submitted To:
M. Zain ul Abidin Dr. Aatif Gill
MBA-18-24 (Course Instructor)
Abdul Rehman (Operations Management)
MBA-18-28 (Dept. of Business Mgt)
Sehar Aslam
MBA-18-30

M. Sajid
(EMBA)
 The Study of Operations Management of MA Foods Pvt Ltd

Introduction of the organization:

MA FOODS (PVT) LTD is a part of the Cookie & Confectionary Manufacturing Industry
of Pakistan. MA FOODS (PVT) LTD has 3200 total employees across all of its locations
and generates a revenue in Millions. (PKR)
MA FOODS (PVT) LTD was a dream of a self-persuaded, self-propelled and self-gave
individual Chaudhary Muhammad Majid, who began his business in South Africa 14
years prior by the name of Galaxy Biscuits. MA stands for “Mian Anwar” the late father
of Chaudhary Muhammad Majid.
After fruitful activities in South Africa, his enthusiasm took him back to his country
Pakistan to serve his country and nation, so far as that is concerned he set the
establishment of MA FOODS (PVT) LTD (Bakers Land) with a soul and determination.
MA FOODS (PVT) LTD tries to be where shoppers can truly appreciate the
conventional taste, quality and immaculateness of the items. We are happy to create
and contribute the unadulterated, normal and certifiable association between (Bakers
Land) MA FOODS (PVT) LTD and the customer.
Chaudhary Muhammad Majid had started his career in South Africa in 1996. In year
2000 he quit his job from the designation of General Manager and laid the foundations
of Galaxy Biscuits. Mr. Muhammad Majid had started the Galaxy Biscuits in South
Africa on a very small scale and deployed his first biscuit plant with 6 workers including
him and worked day & night to make his biscuit company get prosper and caused the
rapid growth just in the passage of few years. Galaxy Biscuits is now dispatching its
supplies to more than 18 countries all over the world including United States of America,
United Kingdome, Australia, Germany and a lot of other first world countries. Galaxy
Biscuits (the parent company of MA FOODS (PVT) LTD) has its products shelfed in
more than seven hundred TESCO stores in Europe and Africa. After completing its 13
years of professional and commercial success in South Africa and becoming the 2nd
largest company in the continent the pure nature and love to his nation emphasized and
forced Chaudhary Muhammad Majid to do something for his beloved homeland
Pakistan as he then invested a big chunk of his income in the country and established
MA FOODS (PVT) LTD in Sahiwal, Pakistan in the year 2013.
Products:
 Biscuits
1- Royal Treat Gold. 2- Choice 3- Peanut Passion 4- Royal Dreams
5- Coco Delight 6- Chocolay 7- Lemon Sandwich5- REU
 Wafers
1- Waltz Chocolate 2- Waltz Strawberry 3- Waltz Orange 4- Waltz Vanilla
 Candies (Fruitiluv)
 1- Chilli Milli 2- Mix Fruit 3- Mango 4- Orange 5- Guava 6- Chatkhara
7- Khopra 8- Fanta 9- Cool Mint 10- Paan Pasand 11- Kullfa 12- Milky
Location: MA FOODS (PVT) LTD is located in 5-Km Arif Wala Road, Sahiwal.
Pakistan.
Mission Statement of the organization:
‘We are an organization of creative and professional people; our mission is to strive for
the excellence. We are determined to change and uplift the lives of the Nation. Our
company’s strategy is based on progressing forward on the winds of ingenious ideas,
new mindset and universal standards which leads to discover new territories over new
horizons.’
Vision Statement of the organization:
“Our company is like our home, a place where we wish to grow and explore our
expertise with the passion to be known and respected as a food company most admired
for its liveliness and innovation to be called the true professionals. Every individual
should be fulfilled and successful at what we do. MA FOODS (PVT) LTD is committed
for the constant improvement and excellence in its work.”
Goal & Strategy of the Organization:
 Goal: Give detail and extent of the mission is called objective or goal of an
organization.
The Goal of Organization:
Currently MA FOODS (PVT) LTD is ranking at 7 th number in Pakistan while having a
bench mark to reach the 5th number nationally where BISCONI (Another Biscuit
Company) is right now standing. Organization has given itself a time period of one year
to achieve its goal and taste the success.
Strategy of the Organization to achieve its goal:
MA FOODS (PVT) LTD has adopted multiple strategies as mentioned below to stand
out of the crowd.
 Low Cost
MA FOODS (PVT) LTD has a mission to provide its customers best products on a
very economical price. Therefore they have cut a big number of amount from
marketing budget which has caused a big price reduction of the products. Another
fact is that MA Foods (PVT) LTD hires the containers and trucks which comes to
Punjab from Sindh fully loaded and have to go back empty, because they charges
really a less amount of money to carry stuff from MA Foods (PVT) LTD. The
organization choses “Low Cost” strategy to increase the demand of their products
from distributers and customers.
 Responsiveness
MA Foods (PVT) LTD has a top notch German Machinery and three ovens which
make the organization capable to produce two thousand and sixteen biscuits per
minute on one single conveyer belt while having three of them,including 9 packing
machines fully functional and operational therefore MA Foods (PVT) LTD produces a
total number of six thousand and forty eight biscuits per minute which reduces the
organization’s processing and production time. MA Foods (PVT) LTD has chosen
 “Responsiveness” strategy to fulfill the demand of orders and to provide its clients
instant dispatches of the products.
 Differentiation High Quality
The organization has decided to provide its customers high quality products and the
valuable quantity. Almost all the competitors of MA Foods (PVT) LTD has reduced
the weight and number of the biscuits in per pack because they are spending a big
budget on TV, RADIO, CABLE & Outdoor advertisement but at the other hand MA
Foods (PVT) LTD is determined to provide its customers the same more number of
biscuits which all the companies were providing previously and the same previous
weight and excellent quality of the biscuits too. MA Foods (PVT) LTD has chosen this
strategy to achieve its goal of standing at 5 th in rank in Cookie & Confectionary
Manufacturing Industry of Pakistan as well as to gain loyal customers and valuable
trust of them.
Core Competencies:
MA Foods (PVT) LTD is centering and attempting to fabricate a culture where we can
embrace our conventional basic beliefs, for example, collaboration and solid caring
administrations. These qualities are the forefront of our gifted and prepared work power.
To show signs of improvement results there is regard for everybody and a good time for
cooperating. We accept that each individual should focus on consistent personal growth
and increase information for its important field within the organization. As well as the
owner of the company involves himself in company matters personally to solve the
problems and improve the results.
Supply chain, Operations & Forecasting strategies adopted by the Organization:
 Supply Chain
MA Foods prefers to purchase its raw material and stock inventory from local
suppliers. The Organization has contracts with three local logistic partners to send
and receive its stuff because local logistic companies allow MA Foods (PVT) LTD to
send its supplies on a small level even by one single cotton and deliver the packages
within 24 to 48 hours to the given destination which makes MA Foods (PVT) LTD
really efficient on instant dispatches to its clients. It is also very cost efficient strategy.
MA Foods has distributers in 13 major cities including Hyderabad, Mirpur, Khanpur,
Multan, Sahiwal, Faisalabad, Lahore, Sargodha, Mansehra, Peshawar and some
more. The organization hires the containers and trucks which comes to Punjab from
Sindh fully loaded and have to go back empty, therefore they charge really a less
amount of money to carry stuff from MA Foods (PVT) LTD to the Sindh region.
 Operations Strategy:
In year 2018 MA Foods (PVT) LTD added wafers to their product mix. In early 2019
MA Foods (PVT) LTD successfully entered Sindh region by exporting their best
quality wafers and launched new candies in confectionary. Their goal was to achieve
a big number of loyal customers and generate new leads for sales and revenue. In
mid of 2019 the owner took over the business personally and continued with
modernization in program to upgrade all levels of operations and services. Today, MA
Foods (PVT) LTD produces a wide variety of biscuits and confectionary items among
 other core products and is a household name everywhere in Pakistan. The
organization is driven by meeting the customers’ requirements, through their
continuous improvements and surveys to gain information and knowledge of what the
market requires.The organization has managed how to increase upper hand by
outperforming its opponents especially the top brands of biscuit and confectionary
industry. Celebrating countess achievements, the MA Foods (PVT) LTD stands as
the 7th biggest company for providing biscuits and confectioneries in Pakistan this
year until now.
 Forecasting:
MA Foods (PVT) LTD has created its own forecasting method as they see the sales
and results of four previous months over all and take average then they increase and
decrease the supply and demand by multiplying the taken average with 1.5 (Fixed
Ratio). Additionally they plan their operations according to the seasons for example in
Summer MA Foods (PVT) LTD sells less products which contain peanuts, almonds
and sesame seeds therefore MA Foods (PVT) LTD produces less such products.
More on the organization has forecasted to launch new products including Nimko and
Cupcakes. MA Foods has forecasted to launch these products on the basis of market
analysis and customers’ surveys.
Product and Service Design Process:
Item and administration configuration alludes to the whole cycle of designing an
expected future item or administration, including its structure, fit, and capacity. MA
Foods (PVT) LTD designs its products according to the market share held by famous
and top selling products by their rivals, for example “Sooper” biscuit by Peek Freans
holds 22% of the market share in biscuit industry. Therefore MA Foods (PVT) LTD
produces more biscuits same to same as “Sooper” with new rhyming name while
having the 99% same packaging.
Capacity Planning Process and Strategies:
MA Foods (PVT) LTD is producing six thousand and forty eight biscuits per min at their
regular speed using 1 recipe mixer plant, 3 baking ovens, 3 conveyer belts and 9
packing machines. The top notch German quality baking ovens which MA Foods (PVT)
LTD uses have 6 total burners in each, and from 6 of these burners 4 burners are fully
functional and operational while a pair of burners is available as surplus which can be
used during any malfunction or emergency. More over if any of the 4 functional burners
are not working, the operators can increase the heat of other 3 burners to maintain the
oven temperature as needed. MA Foods has another packing machine as a spare to
use in emergency or to fulfill the demand of orders as well as MA Foods (PVT) LTD has
the capacity to increase the speed of biscuits production as their machinery has the
mechanical speed to produce more biscuits then 6048/1m. The organization has total of
13 mixing experts and 3 of them are in surplus while 4 oven operators and 1 of them
sits as surplus. MA Foods (PVT) LTD has a spacious warehouse where they can store
hundreds of thousands cottons for at least 3 months. Also the organization owns a vast
area of land where they have the capacity to install any new plant or machinery to
increase their production.
 Design Machine
The machinery MA Foods (PVT) LTD uses has the maximum capacity to produce
7500 biscuits per minute mechanically but the organization has set the speed to
produce 6048 biscuits per minute as their regular production speed. The production
speed can be increased to fulfill the demand of orders anytime by changing the
program and configuration of the machines.
Process Types Adopted by MA Foods (PVT) LTD:
MA Foods (PVT) LTD has adopted two process types which are mentioned below.
 Batch
MA foods produces its products in batches for example if there is one recipe getting
mixed in the mixer plant it then goes to baking and packing section, while the
material is getting baked and packed the mixer does not stay empty or turned off
instead it mixes another batch of recipe and makes it ready to go to baking and
packing section and process goes on 24 hours. For all this process the organization
has employees who work in groups and shifts day and night to make their
production keep going.
 Continuous
MA Foods (PVT) LTD has adopted “Continuous” process type for their baking and
packing sections. The continuous process goes on continuously which means the
organization does not wait until the first batch is finished before mixing or getting
ready the next batch, instead the workers in the mixer plant keep the plant
operational, mix another recipe and make it ready to go to the ovens instantly and
continuously and the process goes on and on. For example when we look at the
biscuit company the raw material of biscuits keeps on going to the ovens, ovens run
continuously, biscuits are continuously going in and out. This process is done by
specific conveyer belts which run through the oven all the time. And the biscuits get
packed continuously by packing staff.
Automation Status:
Automation is the controls and efficiency of the equipment in a manufacturing or other
process/facility which enables the machines to perform the given tasks without any
human interference.
 Programmable Automation
MA Foods has 80% automation status of their machines as their high quality ovens are
equipped with the latest technology which makes the operators able to configure and
program the ovens to maintain a certain temperature automatically.
Product Layout:
In MA Foods (PVT) LTD the raw material (Sugar, Flour, and Oil etc) comes to the stock
where it gets inspected by quality assurance experts and then approved and passed
material goes to the mixer plant where mixer operators mix the material and make it
ready to go to the next section. Right after getting out from the mixer plant the material
goes in the cutting and molding section where it gets its shape as required and given
and turns into raw, unbaked biscuits. These biscuits then move to the baking section on
special belts where 3 ovens having 4 burners each bake these biscuits on a certain
temperature. After getting baked, these biscuits move to the packing section on 3
conveyer belts where 9 packing machines pack the biscuits in three variations (Ticky
Pack, Half Roll and Family Pack). Before getting packed, all the faulty, unbaked or over
baked biscuits get rejected and kicked from the belt to the buckets hanging under the
belts. Right after getting packed by the machines there are employees who put these
biscuit packets to their specific boxes and to then big cottons. During this packing
process there are 3 quality assurance experts who check the quantity and quality of the
biscuits and the packets manually just to maintain the quality of the product and to
assure the fine packaging.
Job Design:
In MA Foods (PVT) LTD they have different Job Design for different employees. The
managerial and administration staff is hired using Specialization Method and they get
fixed and Time Based salaries. For the managerial and administration staff the
organization uses Job Rotation Approach. The technical staff of the company is hired
using Knowledge Base method and gets Time Base salaries at the end of the month.
At the other hand the packing labor is hired on contract bases and gets salaries on
Output Base.
How MA Foods (PVT) LTD monitors the quality of life?
The organization takes really a good care of their employees as the company has
imported machinery which does not create any smoke because it is equipped with the
latest inverter technology and runs on electricity. The company also has some
machinery which consumes LPG. Company has proper ventilation and temperature
control system in all the production sections as well as in the warehouse. The company
provides their mixer plant operators proper uniform, gloves and masks. Company also
provides head covers, gloves and special uniform to the oven operators. The
organization has a proper system of EOBI funds and Social Security for the employees
as well as the company organizes self-esteem and other special training programs for
the employees.