Management

Accounting
Term Project
 Table of
CONTENTS
01 02 03 04
Introduction Stock & Procurement Documentation
Inventroy

05 06 07
Costs and Labour Overhead
Fluctuations compensation contribution
 INTRODUCTION

FRIESLAND CAMPINA PAKISTAN IS

A COOPERATIVE, WHICH
SPECIALIZES IN DAIRY PRODUCTS.
OUR FLAGSHIP PRODUCTS ARE
OLPER'S MILK AND OMORE ICE
CREAM, FLAVORED MILK ETC
EMPHASIZING QUALITY,
NUTRITION, AND TASTE.
 Inventory & Materials

01 Primary Materials 02 Sourcing

03 Inventory Valuation 04 Price Fluctations

Stock ordering Safety stock

Just-In-Time to Essential especially for

minimize costs and high deman items
due to the high during peak season.
perishability of the
products
 Procurement
department budget

Audits and Surveillance

Procurement
PROTOCOLS Bincard Maintenance

Documentation
ORDERING
AND
HOLDING
COSTS

Ordering cost is dependant on

Demand
Components of Holding costs
Use of EOQ
Dealing with fluctuations
 LABOUR COMPENSATION

PERFORMANCE MOTIVATION PENALISATION

SYSTEMS EVALUATION

Combination of peice Target based Bonus Strict quality control

and hourly rate KPI’s Career opportunities Corrective actions rather
Wages fixed for head Peer reviews Recognition than penalties
office staff Trainings and process
Feedback
Helpful on days when improvements
Efficency and
plants are not
quality
operational
Idle compensation
OVERHEADS

Labour and Capital intensive

Shifting towards automation
Supply chain and Production incur the
highest overheads
Non manufacturing expenses mostly relate
to the head office
THE END