Resource person: “Sir

Ali”

Presented by: Group “The Rock’s”

Group Leader

Kashif Ali (Roll # 9215)

Pirzada Arslan sabri (Roll # 9234)

Naeem ranjha (Roll # 9212)

Haseeb tahir (Roll # 9230)

Naveed ul hassan (Roll # 9243)

Zahid Ismail (Roll # 9239)

BBA-A-5

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Superior University Lahore

SUPERIOR UNIVERSITY, RAIWAND ROAD,
LAHORE

Topic:
Production Operation Department of the company

“Al Rehman Rice Mile”

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 Table of contents

Topic Page no
1. Dedication 04
2. Acknowledgement 05
3. Executive summary 06
4. Company’s overview 07
5. Mission 07
6. Introduction 08
7. Products 09
8. Production 10
9. Production Process 13
10.Production planning 18
11. Forecasting 18
12. Product costing 19
13. Inventory management 19
14.Quality control & raw material 20
15. Recommendation 21

Dedication
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This assignment has been
dedicated to our parents
who help us in every aspect
of our life and our
teachers who always assist
us like “Sir Ali

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 “Acknowledgement”

We would like to thank the almighty Allah for giving us the

strength and capability for carrying out this visit. We

would also like to thank “Sir Ali” for his cooperation help

for any queries we had regarding production operations.

We deem it a privilege and a source of great pleasure in

writing the rightful acknowledgement of the inspiring

guidance. And through this activity of visiting production

department that we have come to know that how widely we

have understand and implement those procedures in future.

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 EXECUTIVE SUMMARY

We were assigned pre-mid assignment related to the

subject “Production Operation Management” in which we
have to get information about Production operation of any
company. The project was assigned to us by the resource
person “Sir Muhammad Ali”.

It was a group project and all the members were assigned

visit company in order to complete this assignment. We
started this assignment with the selection of company. We
selected “Al Rehman Rice Mile” On 21 November we
visited Al Rehman Rice Mile, spent whole day with
production manger Mr. Naveed Ali observe his activities &
at the end we conducted interview with him.

The assignment was very beneficial for us as with the help

of this we have understood the production activities. It was
completely practical and it has helped us in understanding
many concepts of the course.

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 COMPANY OVERVIEW

Al Rehman Rice Mile is one of the leading manufacturing organizations in Pakistan producing
different kind of Rice..
Al Rehman Rice Mile was incorporated in 1992. It is a private company. Its total number of
employees is 60 out of which 45 employees are working in production department. They are
using heavy machinery mostly machines they import from India. Their daily production of rice is
more then 45 ton. Their average purchasing of raw material of rice (monji) 3 lakh to 5 lakh bags
per year. Each bag contains contain averagely 60 kg.

MISSION:-
“To be the market leaders all over the world”
VISSION:-
“good quality good health”

Corporate Profile

1.Cpmpany Owner
Seath Muhammad Ashraf

2.Company Manger
Naveed Ali

3.Registered Address
Suwa Gujju Matta Kahana Nau
23. Off FEROZPURE ROAD, LAHORE-PAKISTAN

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Tel: 0092-42-5271227-8

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INTRODUCTION

We were assigned a project of PRODUCTION OPERATION MANAGEMENT by SIR

M.ALI to visit a company and to meet the production manager & observe their production

operation. We have selected Al Rehman Rice Mile for our project. On Saturday 21

November 2010 we went to Al Rehman Rice Mile and observe their production
activities. At the end of the day we took interview of production manager Mr.Naveed Ali who

is working in Al Rehman Rice Mile last 8 year.

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PRODUCT Rice

Types of rice”

(i) Super basmati kernel”

(ii) Super kernel

(iii) irri6 `

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 (iv) Irri 86

(v) Irri k.s

(vi) Irri super fan

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 PRODUCTION

The Al Rehman Rice Mill is the provider of rice, to Pakistan and export to other countries. At
present they are producing 45ton per day and this ratio is fluctuate day by day. Mostly they
give rice to retail or whole seller and in some quantity and also they export to foreign markets..

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 PRODUCTION PROCESS
Al Rehman rice mill have four production processes in which one is
i. Drying port
ii. Filtering
iii. Polishing
iv. Packaging.

 Drying port
First department is drying department. For to dry rice there is big place allotted for that there
are several labor people are working for that purpose they put the raw material into the drying
port for drying because when raw material come to the mill it is in the wet condition and it
cant be stock and process until it become dry. And if they do not dry the rice then the breakage
rate can be increase. Approximately they dry 40 ton rice in 8 hours. After drying the rice they
send them to the next department.

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  Filtering

It is the 2nd process in which drying rice come into the filter machinery. The machinery filter the
rice sends into the polishing machinery. The company manger Naveed Ali was saying that they
sale the wastage that come from filtering process and earn money and its approximately amount
18 to 25000 per day.

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  Polishing

It is 3rd process in which rice polish and come into the finishing goods in this process some rice
brakeage, in this machinery automatically divide into the three category

i. Pure Rice
ii. Half brakeage
iii. Less half brakeage

One thing more that they get from this machinery that is (powder) that comes from rice and it

used in feed.

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  Packaging

It is final process in which they pack the rice into the bag. The bag contain on 50 kg packing.
And some time when they want to export in foreign countries they like to pack in 5kg, 10kg, and
25 kg bag. Its depend on order.

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Production Planning

The production manger and company owner they both make plan of production. Manger Naveed
Ali was saying we make production planning for six month because our business of rice based
on 4 to 6 month season so we purchase raw material in bulk quantity only for this purpose that
we can continue our business whole year because it is difficult to purchase raw material in out of
season by two reason

 Raw material short in market

 Rate are high

Forecasting

Their forecasting based on 310 days plan because in this business lot of variation come by the
shortage of raw material or increasing the cost of raw material and manger was saying even
they forecast for short period of time but mostly their accuracy level do not perfect .

They like to use the Seasonal forecasting method,

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Product Coasting

They used the simple method for cost they set the price of product according to price of the
market. And also they used simple formula.

“Market price of rice - cost of raw material =product cost

They are the big trader of rice so mostly they export the rice in different counties on market rat

Inventory Management

This is the main thing that handle all the material either it is coming are going out after finishing
In this regard there are some tools which are used in that department ware house

Al Rehman has big ware houses in which they saved their raw martial and finishing goods. They
can stock 2 lakh to 5 lakh bags in their ware houses. For the inventory management they have
supervisor (thekidaar) who control all the inventory

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Quality Control

Their quality of rice based on quality of raw martial if raw material (Monji) is good quality then
the quality of rice would be good. So production manger first cheeked the raw material if it is in
good condition he passes. The quality of rice control the machinery automatically .they
purchased this machinery from India and its cost near about ‘9500000’.They hire engineer who
run this machinery. The manger was saying when they take order from export their main focus
on quality so he him self control the quality.

Raw Materiel Purchase

They purchase raw material (Monji) from different markets (Mandes) because they are doing
this business last 20 year so they have strong network in different markets and mostly they
purchase on credit of 1 month to 2 month. the manger was saying if the raw material is not
good ,the quality of rice can not be good so it is most important process to purchase the good
raw material .they have linked in Kasur mandi , Shekopora mandi ,pakpatan mandi ,depalpour
mandi sahiwal mandi, etc and also they purchase from local market from farmer .

Marketing and finance

They have no marketing and finance department.

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 RECOMMENDATIONS:

They should have proper arrangement of cleanliness.

They should have communication with Finance Department.
They should do marketing
They should develop the MIS system in organization

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