Observations

Procurement of raw materials: AP foods get the yearly demand of the products at the
beginning of the year. Then the management at ap foods prepares the plans
accordingly, and issues tenders for the raw material procurement (except for wheat,
because it comes from FCI and is subsidized). The supplier with lowest bid will be given
preference. Ap foods gets the raw materials depending on the requirement.
The raw material is sent to the godown, from then daily quality checks are conducted
after which the material is confirmed to be kept. First the observation check is done by
quality control people, if it is ok then is taken to lab for further experiments, and the
report is sent to the godown department where they check for the satisfaction of the
requirements. If the requirements are met the material is accepted or else it is sent back.
From there the material is sent to the production unit for processing.
This plant produces the products daily in three shifts, the raw material are sent to the
production unit in shifts, where the required material is produced, and is then sent out it
the ICDS centers with the help of Lorries.
At each stage they take sufficient measures for the smooth flow of information and also
materials, and also they concentrate on the quality of product and service at each stage. In
the godown the new material is not mixed with the existing material in order for it to
finish first and also before the quality check is done the material is not used for
production.
And regular checks are done to check weather there is any deteriorated material is
present. If they find any deteriorated (or materials not meeting the specifications)
material, if the value of that material is high they issue tenders for the sale of that
material.
In the production unit the raw materials like Soya seeds are filtered twice to make them
clean, and the remaining material is sent for the production, and the filtered waste is then
sent out and is rechecked by quality control department, if the material is satisfactory it is
then sent back to the production unit, and if not it is sold out by issuing tenders.
In this way they are maintaining the quality of the output at many stages of the product,
even after the final product is produced it is then sent to quality control department to
check for the quality of the output, the material is sent to the ICDS centers only if it
satisfies the specifications set by NIN.
After the final product is produced at the production it the sample is sent to quality
control unit if the report is satisfactory the distribution department send the Lorries to the
production unit, from there the material is sent to the customers.
Coming to the distribution department, they prepare plans for the month and they give
one week’s information about the transportation to the transportation contractor, they
send the material depending on the plans.
Process:

 At the start of financial year AP Foods get the demand particulars for the whole
year of each product they produce at their factory.
 Accordingly the production and distribution departments prepare the schedule for
the whole year, of how much to produce each month.
 The distribution department prepares how much material should be sent to which
ICDS center each month (based on past data) and sends that information to
directorate which is the main authority to control the whole department.
 The distribution department keeps the data regarding the supply of the products to
each ICDS center in their official website.
 According to the data in that website all the ICDS centers must make their own
arrangements for storing the incoming material.
 Coming to the production department, they provide the information regarding the
annual requirements of the products to the godown department.
 On receipt of the requirement particulars they issue tender notifications.
 The company which coats the least price will be given the tender.
 And the company issues tenders even for transportation and also for hamalis.
 The raw materials will be procured on monthly basis, and are stored in godown.
 After the raw materials are sent to godown the quality control department people
come to check the quality of the material.
 They do inspection by observing, if the material is good by sight the sample is
sent to quality control department for further experiments, and the report is sent to
godown department, where they check for the requirements
 If the requirements are not met the material is rejected if not the material is
accepted and they are paid their compensation through finance department.
 Based on requirement the required amount of material is sent from godown to the
production unit. Daily the factory runs in three shifts, so the required material is
sent before the shift starts.
 The production and packing process is done in the production unit, and the
production department gives the information to the distribution department
regarding production.
 Then the distribution unit sends the required amount of lorries to the production
unit from their dispatching of goods takes place to different destinations.

Expected and possible:

 In production unit their will be many problems in maintaining the machinery and
also power supply.
 Labor union’s problems.
 Space problem for storing the raw materials and also finished products after they
are produced.
 Waste and unused products produced at the production unit (eg: waste from
roasted Soya beans).
 They may not get the required amount of raw materials on time.
 The distribution department gets phone calls regularly from the ICDS centers
regarding the amount of material which may waste their time.
 There may be lorry accidents while the products are sent to ICDS centers or the
drivers may steal the material.
 Shortage of Lorries may be a problem in some seasons.
 And even the number of hamalis attending may be a problem.
 Getting right information at right time from production department.
 Coming to godown department, the main problem AP foods is facing now is
shortage of storage place. This is the case with many other godowns.
 And their may be problems like shortage of goods in the situations where there is
any strike of workers.
 Over sending of materials by the contractors.

 In ap foods they are following “stock keeping unit storage type of

approach”
