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During all the phases and stages of this report including analysis, writing and designing the report, we have gained very useful knowledge and experience with respect to the application of the concepts of Food and Health Safety in real life at organizations and especially at Shan Foods (Pvt) Ltd.
We have tried the best of our efforts to apply all the relevant concepts appropriately and properly to develop this report. We hope that the report will serve its purpose. We acknowledge your help and support for this report and we look forward to your feedback as it will be the most valuable feature for us in the entire process.
LETTER OF ACKNOWLEDGEMENT
All praises and thanks to Almighty ALLAH, Who is the Lord and Creator of this universe and by Whose power and glory all good things are accomplished. He is the most merciful, Who bestowed upon us the potential, ability and an opportunity to work on this report. We are thankful to the Last and Final Messenger of Allah, Prophet Mohammad (P.B.U.H) for leaving an unbeatable example of leadership which we can feel proud to own, learn and follow. We are also thankful to our parents for bearing with our hectic schedules and always being a marvelous support.
We would like to extend sincere gratitude to our respected mentor Dr. Moinuddin for his constant support, encouragement and guidance, without which we could not have successfully achieved our task. Moreover he gave us the opportunity to search and write a report on the topic: ISO 22000 at Shan Foods (Pvt) Ltd.
We would also like to thank Syed Sarwar Haider, Manager Quality Operations, Shan Foods (Pvt) Ltd. for entertaining and helping us grow our knowledge regarding the quality policies in Shan Foods (Pvt) Ltd.
Abdul Salam Malik
Monis Jan Allawala
Syed Sami Ahmad
Table of Contents
The journey of Shan's remarkable success starts from 1981, when the dream of one man became a reality. A visionary entrepreneur, an avowed humanist and a committed philanthropist, Mr. Sikander Sultan, CEO Shan Foods (Pvt.) Ltd, helped pave the way to success by pioneering in the spice business. It was Mr. Sikander Sultan's commitment and dedication that starting from a single room company, today Shan stands as one of the most reputed food company and a powerful global brand with presence in more than 45countries across 5 continents. Initially spice recipe mixes were indeed shared within the family and it was not until much later that orders from distant relatives, friends, acquaintances and even perfect strangers started to arrive. Overtime, the company prospered and Mr. Sikander Sultan decided to launch its very own brand with the name of SHAN. Since then there is no looking back. Shan Foods (Pvt.) Ltd, has, over the past decade, changed more than ever before in its illustrious history.
Rejuvenating existing business, entering new ones, manufacturing high quality products and expanding into foreign markets are among the initiatives the company has undertaken with vigor. Today, Shan Foods (Pvt.) Ltd is Pakistan's leading food company with its products being appreciated globally. Looking to expand its product line, Shan continues to introduce new products that better caters to the changing needs of the consumers. In order to take advantage of growth opportunities, Shan has now enhanced its production capacity even further with the manufacturing units installed in UAE and Saudi Arabia.
Shan's success can be attributed to its ability to continually identify and respond to the changing consumer needs through Research and Development, stringent Quality Assurance standards and state-of-the-art manufacturing facility.
Shan is truly an example of a progressive Shariah Compliant business where Shariah guides the business operations and values remain consistent. These values are embraced by its people and have played a major role in Shan's success to date and will continue to do so in future. Shan does not offer products only; it provides an indulging and delightful food experience that is Just perfect.
Manufacturing and Marketing of Food Brands
Management Staff: around 300
374 distributors within Pakistan 60 distributors across 45 countries
HEAD OFFICE - Plot 29, Sector 23, Korangi Industrial Area, Karachi, Pakistan.
Pakistan, UAE and Saudi Arabia OFFICES Pakistan, UAE, Saudi Arabia and United Kingdom
VISION & MISSION
A global food brand offering premium quality innovative products, which delight our consumers.
Shan, a responsible corporate citizen, adhering to its core values, trusted globally for providing great tasting consistent quality food products.
We are determined to reach every kitchen by diversifying into growing food categories through innovative, healthy & safe products for the ultimate delight of our consumers.
We will enhance shareholders value through sustainable growth, develop strategic relationship with our business partners and ensure safe work environment for our employees.
Since its inception, Shan Foods (Pvt) Ltd has been governed by its core values. They shape the culture and define the character of Shan, forming the foundation on which its employees perform and make decisions.
Shan's success is based on a dedicated team of professionals who collectively embrace a unique combination of the following strong core values:
Honest, fair and ethical with all stakeholders.
CARING FOR COMMUNITY:
We care and actively contribute to the community in which we operate.
WORKING WITH PASSION:
We believe in truth, trust and team work. Promote a creative environment, where people have the opportunity to grow, dare to take risks and work with passion.
COMMITMENT AND THE DRIVE TO GO EXTRA MILE:
Honoring our commitment. We set new benchmarks for the industry by going the extra mile and delivering superior value to our consumers and stakeholders.
We delight our consumers by offering innovative and exciting food solutions by reaching out to them wherever they are, to meet their current and emerging needs.
Actively seeking opportunities to reward & recognize our winning teams and celebrate our success.
We strictly comply with all Shariah laws and remain conscious of it in every sphere of business.
At Shan Foods (Pvt.) Ltd we have more than 1000 people who share the same vision that is aligned behind a clear strategy expressed in a simple road map. Our ambition for Shan Foods (Pvt.) Ltd is to be recognized as the world's trusted leader in taste, quality and to be the main point of reference for outstanding financial performance in our industry. We have produced strong results in the past and will continue to drive our efforts to achieve higher level of performance even in difficult circumstances. Our competitive advantages are our unmatched taste,brand portfolio, R&D capability, unrivaled international spread, values, work culture and employees, who have played a pivotal role in turning our vision and mission into a reality.
Our unique and comprehensive brand portfolio has become an important face of our consumers' daily lives. We have the industry's leading resources and assets through our extensive R&D network. This enables us to translate our consumer insights swiftly into successful commercialized products; thus leveraging the rapid progress in science and technology.
Our comprehensive global presence paired with deep local consumer understanding gives us a golden opportunity to benefit from the economic and demographic trends for growth in both developed and developing countries.By the grace of Almighty Allah, our Islamic culture and values remain our single most important competitive advantage. Long term thinking, integrity, mutual respect, pragmatism, openness to diversity, passion for quality and delighting consumers in accordance to the Islamic laws remain at the core of our Company culture.
I believe that our stakeholders, their qualities and values, are at the heart of what makes Shan Foods (Pvt.) Ltd the company it is. We thank them for their energy,enthusiasm and commitment that have contributed heavily to Shan's success.
Muhammad Sikander Sultan
CEO, Shan Foods (Pvt) Ltd.
International Sales Department
Research and Development
QUALITY CONTROL DEPARTMENT
Quality Operations and Research & Development DepartmentÂ is a one stop solution to the individual needs of each and every department and processes of Shan Foods for the smooth operations through it
professional services of Quality Control, Research and Development and Quality Assurance of Business Processes.
Our team constitute of highly qualified and trained professional in the area of;
(Organoleptical) evaluation of ingredients and products
..with a blend of winning competencies Quality Operations contributes towards the exponential growth of the company.
Quality Assurance and R&D System is based on the premise that Quality and Consumer Safety has a direct and immediate impact on business performance. ToÂ create a true Quality Culture within Shanfoods, active and visible commitment is ensured from the highest level of management down to grass root level of line operatives
Our Laboratory is equipped with latest testing equipment that can measure required components of testing down at the levels of Parts per Million ratios. That gives complete confidence to the regulatory bodies and management itself about consistency in desired quality of the Shan Recipes.
Quality Operations focuses on to achieve objectives:
Procure and source best quality and competitively priced ingredients from global and local markets.
Enhanced productivities by reduction in online rework and rejection
Enrichment of employee thinking capacity through continuous Quality Training program
Reduction in waste
Removal of process hands-offs
Drive an improvement-based quality culture through ISO9001 certification
International recognition ITQi Award
Ensuring the safety of consumer health by adopting world's recognized Food Safety Management System FSMS-22000 and HACCP principles.
Ensuring the compliance of HALAL requirements and recognition By SANHA certification
Pakistan Advertising Awards 2010 held for the first time where multiple categories were acknowledged for their excellence in advertising.
Shan awarded in the recipe category as the best campaign for the Oriental range.
Great Quality, Great Achievements
Shan Foods was selected as "Brands of the Year" in the recipe category of its exceptional quality.
Federation of Pakistan Chamber of Commerce & Industry (FPCCI)
The FPCCI acknowledged Shan Foods for its immaculate performance in export market for the second time.
Winning ITQI for the second consecutive year for the following categories:
Kasba rice (Arabian range)
Food safety management system
In order to understand the significance we must first understand the significance of ISO 22000. We must first understand what ISO 22000 is about and how it is applicable to the food industry like Shan Foods ( PVT) LTD. To achieve these objectives we must first ask the following questions to MR Sarwar Ahmed, Quality Manager at Shan foods.
HACCP (Hazard Analysis Critical Control Points)
HACCP ensures the product safety. The inspection goes on daily/weekly or even on monthly basis, though it is appropriate if the inspection goes on weekly daily basis. It helps in identifying critical areas to ensure food safety which includes handling of the food, delivery, storage and preparation. In short, handling of the food from raw form to final product. As the name of the program, it checks out the hazardous foods through out the food service operation.
With the theory of the HACCP, Shan follows HACCP program properly, stated by Mr. Sarwar. From raw material of the product to the final form, Shan keeps a strong eye on the key important factor that could cause a product to lie under hazardous food stage. The main challenge that Shan face is the inventory controlling, according to Mr. Sarwar, meeting the required demand in such a economy sometimes give capacity gap in inventory. Increase in inventory can be result in more maintenance of the product, in this way, the product could get hazardous.
The process for implementing HACCP at Shan was that it assembled a team which includes persons that are officially trained about the HACCP course. In that team, members from each department were included so that everyone could get one and equal learning of the HACCP program from the official trained workers. With the efficiency of the management and orders from the top management, all the workers were ready to adopt and implement HACCP.
After making the team, the next step is to make strong distribution connection. As discussed earlier in this report, Shan keeps proper documentation of its suppliers history. They have set standards under which suppliers are selected, if a supplier doesn't comply their standards, a warning and training program is offered to the supplilers, Otherwise, Shan rejects them. Moving on, Shan has clearly set the process of making the product, the following questions have been already answered by the company to ensure everyone has the basic knowledge. The questions are as follows
1 . Products name
2. The usage process of the product
3. The length of the product life
4. At what temperature it showed be processed
5. The packaging material of the product
6. The distribution of the product and whom it should be sold
7. Instructions related to labelling.
After these questions, a flow of the process is made to clearly define the process in a proper manner so that everyone could easily understand it. Shan has clearly defined each and evert step in the flow. This gives a great exposure about the company that it gives defined goals, objectives and work process of the product to it workers. Furthermore, grouping of the product categories has been made. Means that, raw materials are properly categorised so that inspection could be easier.
CONDUCTING A HAZARD ANALYSIS
After categorising the raw materials properly, three kinds of hazards are taken under consideration these
The above mentioned hazards are strongly under consideration by the experts. Mr. Sarwar mentioned further that the inspection team sometimes picks some of the material from during the process and analyse to ensure product safety from hazardous. With the usage of a highly advanced machinery, the spices are turned into powder form. So there's no change of availability of a physical hazard.
The second principle of HACCP indicates the CCPs (critical control points). At Shan, CCPs is clearly stated on the chart and hanged on every wall of the production department so that every worker would be fully aware of the control points . Some of the commonly CCPs are also mentioned in the program of HACCP. These are points that are stated in Shan's production department,
Maintenance of the temperature every time when cooking to have equality taste in every product
Formulation of the product. Means, how the product is made.
Fillings and sealing of the product
Plucking of the raw materials.
Although, these control points are routinely measured to maintain the standards i.e matching with the standards.
After setting the CCPs and measurements of it, routine documentations are made and consistently analysed with the previous documents to ensure proper maintenance of the standards. Corrective actions are immediately taken upon seeing any irregularity in the trends of the measurements of the process.
These are main points that are focused while implanting and learning HACCP.
2. The usage way
3. Packaging material
4. Life of the product in the shelves
5. Defined temeperatures
6. Where to be sold?
7. Who are the consumers.
8. Knowledge regarding labelling
The following table is used to create a clear picture the process steps, hazards related to that product and preventive measures that were taken to ensure safety.
Foods safety hazards
For the monitoring of the procedures and frequency, following table is used.
For the Corrective Actions, as explained above, following table is used.
Monitoring Procedures (How, What, When, Who)
To have the total picture of the HACCP program, following table is used.
Monitoring procedures and frequency
1)What does ISO 22000 means to Shan foods?
ISO 22000 means consensus agreements between all the economic stakeholders concerned may they be Suppliers, our customers, government regulations and other interest groups.
Shan foods acquired their ISO 22000 certification in the year 2011 after 3 years continuous effort which was a long path towards commitment shown by all the stakeholders of the company. Prior to ISO 22000 Shan foods was still the best consumer product in their product line but acquiring ISO 22000 certification was an achievement and is indeed laudable.
When the first phase of ISO 22000 implementation began Shan foods coordinated all heads of department and created a cross functional team. Shan foods in it facility also constructed a training room so that its employees can acquire training in house. The implementation of ISO 22000 required us to have a clear communication path from top to bottom organizational support so that food safety was our greatest priority. Furthermore, decentralized system was created so that every head of department had autonomy ensure control of procedures.
Shan foods, keeps proper documentation of each and every process involved in product manaufactuing. Furthermore these documents are analyzed daily with the previous documents to determine the trend.
Shan foods has hired fresh and professional computer knowledgeable personals from the top universities of Pakistan and abroad to look after their Manangement information system which's sole responsilbility is to provide easy to access and computer viewable documents to management when required.
Shan foods maintains its own Intranet system where any employee who has authorization can access reports of the process.
Since the inception of the company Shan Foods management has made the food and safety it first priority. Communicating the need to meet customer legal and regulatory expectation establishing a quality policy ensuring that quality objectives are established. Conducting management reviews ensuring the availability of resources. Top management ensures that the customer requirement were met with the aim of enhancing customer satisfaction.
Top management make sure that the organization quality policy is line with the organization's mission and vision. The top management made a commitment to continually improve the effectiveness of the standard. They make sure that the quality objectives are communicated and understood by the organization and are reviewed for maintaining stability.
Top management ensures that quality objectives were established at relevant functions and levels within the organization and include product requirements. Regarding the quality policy, they were measurable and consistent. Shan's achieving the ISO certification in three years indicates a strong long term planning of the company.
Top management reviews the standard at plan intervals to ensure its continuity and effectiveness. The reviews include the accessing opportunities for improvements and need for change. Records from reviews are maintained. As Shan keeps proper documentation of each every step, the contracts that show illegal jobs are eliminated immediately.
Management checks the results of the contract related to audit, process, performance, product conformity, corrective and preventive performance.
Shan is dedicated to its customers. The voice of the customer is important at Shan. Upon interviewing Mr. Sarwar, he mentioned that Shan properly treats customer complaints as per the complaints level i.e. there are complaints that requires immediate action, Shan, never ignores any complains.
Shan first identifies its customers for its product which were mainly the household wives. They make sure that the product was easy to use and does not cause any illness and the food taste superior. When the product requirements are changed, Shan makes sure that relevant documents are amended and that relevant personal are made aware of the changed requirement.
Suppliers and contractor communication
After suppliers selection and approval the next step was the certification process which started after the supplier began shipment of the product.
The customer and supplier has agreed upon specifications that are mutually developed justifiable and not ambiguous. However for the products traditionally manufactured by the company and which are now been transferred to the supplier. Several considerations are to be made in addition to design specification, manufacturing, assembly, and packaging instructions should also be considered in Shan Foods.
The supplier shall have no product related lot rejection for its significant period of time, say one year. The supplier shall has no non product related rejections for a stated period of time, say three months. Non product related non conformity such as the wrong count or a billing error are not as serious as product related once that are usually corrected in a short period of time.
The supplier shall has no negative non product related incidents for a stated period, say six months or number of lots, say ten. This criterian covers incidents or problems that occur even though inspections and test showed conformance to specifications. Most likely the supplier would have been notified of the incident by memorandom or other written communication. The supplier shall has fully documented quality system.
The supplier shall has successfully passed an on side system evaluation. This evaluation could be or by third part such as an ISO 22000 registrar or by a second party customer. The supplier must conduct an inspection and test. Laboratory results are used for batch process and statistical process control is used for piece part production
The supplier shall has the ability to provide timely inspection and test data because the documentation is necessary where the product arrives it must be sent by computer or courier.
Occasionally it may be necessary to discertify supplier as may be a major problem.
Shan Food allow the supplier one failure before D certification.
There are number of benefits to certification.
First it eliminates its receiving inspection which allows the supplier to shift directly to stalk.
Customer/supplier relation is created.
Each partner being responsible for its own appropriate quality.
Finally the number of suppliers are reduced to managerial level. Thus, further reducing the over head cost
Main asset of every business in the world are the customers. If there are customers available in the market, there is a possibility of making profits otherwise, there would be no business in this world. Attracting customers towards a particular product is one part, and maintaining a proper long term relationship with the customer is another part. Shan focuses on establishing long term relationships with its customers by responding to their complains immediately, depending upon the level of sincerity of the complain, and tries to keep on attracting them towards the product by offering good quality and services. Shan company also gives training to it front line management because they are the ones who contact directly with the customer. A company is a fool if it does well business but does not train its front line to team.
Emergency Preparedness and response:
The factories act of 1948 regulates the health, safety, welfare, and other working conditions of the workers in factories. The act requires factories employing more then the prescribed numbers to appoint qualified safety officer and medical officer. Safeguards have been prescribed to prevent accidents and report instances of accidents.
Planning should be related to the requirement derived from the processed. Shan follows excellent long term planning structure. The biggest example of long term planning is that it acquire ISO 22000 in three years with step by step achievements. Following step Shan company follows while making the plan.
1. Quality objective
2. Establishments of the processes
3. Need for conformity testing
4. Acquiring of the past data to match with the current result to ensure sustainabililty in performance and productivity
Processes related to customer
Determination of the requirement is particularly extracted from the customers. These requirements becomes the real reason of the product success. However Shan is not restricted to these requirements, it has approached its boundaries internationally where it compares itself with the international companies and matched with their customer satisfaction. This is stated as true by the fact by Shan has been able to achieve a respectable position in customers living abroad I.e USA, Canada, london.
Moving on, another aim of the organisation is to have a zero defect in the product. Customer feedbacks is one of the main feature that allows an organisations have zero defect. Moreover, supplying of the product to the customer play an important part, organization must define its role with the suppliers and also define their roles. Shan foods ensures customer satisfaction at every level from the manufacturing of the product from raw to final product to even distribution of the products. Immediate actions are taken upon having problems during the process of manufacturing or distribution.
Furthermore, relationships with the customer is a very important factor. Relationships with the customer defines a company commitments towards its customers. It helps the company to have a long term bond with them. Of one customer is dissatisfied, this would mean that 100 customers are dissatisfied (proved from general theory.) Shan company has an excellent way of approaching customer by listening to their feedbacks and respond them immediately depending upon the level of seriousness in their feedbacks. Complains of the customers are handled with care and Shan immediately tries to solve them as said my Mr. Sarwar.
Development and design
The product's development and design is properly and solely controlled and planned by Shan company. The process of this is to established the stages of development and design of the product, it's inspection and confirmation which is related to the product. Furthermore, duties are assignment to ensure the distinctively of the product's design and development.
Excellent management in Shan is seen, because the managers consults with the froup which are assigned for the product's develeopment and design. This proper commutation between groups and management clears all sort of complications and create a friendly environment. Furthermore, the progress related to product's designs and development is properly recorded to ensure progress.
Moreover, Shan focuses on finding inputs that creates a positive ouput. Shan company has opened itself to the new opportunities. Performance related to functions with proper understanding of the regulations and knowledge of distinctive desgins and development differentiate a product from its competitors, and this is what Shan does through out the years.
After going through the process of design and develeopment. The output of the product should be as same as the defined output plan made in the beginning of the process. I.e the design and development should be as same as the output of the product. There should be no difference. Upon achieving no difference, this shows that manufacturing process is well instructed and properly worked throughout the process.
In some stages of the process, Shan company does audit of the process to ensure that the design and development are in accordance with the standards and that the workers are well aware of the standard and knowledge of design and development.
Proper records regarding the product's design and development helps the company to compare with previous records and therefore, makes a proper analysis of the trends. Most important art regarding this portion is to ensure that design and development are well accepted by the customer, it is consider as mandatory to have a proper research before changing the product's design and development. Otherwise, failure to achieve the satisfaction even of customer would result in less sales, which would decrease profit, which would mean less dividend and less share prices, ultimately loses shareholders trust.
Shan foods make sure that their products possess much higher capability to be grabbed by customers. This portion largely involves the distribution network. Unlike coka cola distribution network, which is comparatively weaker than Shan's, Shan foods has made progress in to distribution process by establishing and standard and training program for its suppliers. Furthermore, the process o delivering of the product t the customers are clearly defined to the suppliers. Shan takes every possible step to ensure no harm on the product and on the customer satisfaction.
The purchasing of the product also largely require quality management services which ensures the quality of the product. A product is differentiated with respect to its quality . Shan with distinctive quality and taste has been able to achieve top and respectable position without any heavy investment in promoting its product I.e marketing. As said by the founder in MAP conference held at Marriott hotel, Shan has done less advertising comparatively with competitors and has achieved yet anther profit margin higher than competitors.
To ensure the purchasing patterns and quality of the product, inspection teams both internal and external (outsourced) are given responsibility to study the customer and retailers selling and buying behaviour.
Production of the product and its service provision
These are properly handled and controlled under the supervision of efficient quailed workers. The controlling majorly includes knowledge related to availability of the information, machines, worker, capacity gap, demand and supply of the particular product because productions depend upon them, location of the factory, supply of the raw materials, keeping record of all these mentioned categories and enable a proper monitoring system to ensure consistency in production.
Every process of manufacturing is strictly considered by the audits (internal so avoid any deficiency in the process. Ovehere, a theory known as TPM is involved which guides that how a company can increase productivity by eliminating errors and particular hurdles that causes productivity to slow down.
Shan foods, in this portion, do consider customer feedbacks.
Device measurement and monitoring control
As previously mentioned on the report, Shan foods keeps proper monitoring and measurements of each and every step. It took almost three years to achieve a certification of ISO 22000 which clearly defines that companies policies are strictly followed through the years. These polices are strictly followed because they are strictly monitored and measured.
To avoid any complications, measurement units should be properly assigned where necessary. Assigning the units has its own advantages. Measurements helps the process to be on the limitations as prescribe by the management.
During the controlling and monitoring, the company takes immediate action upon finding any problems in the manufacturing process or distribution processes. The basic aim is to avoid deterioration and above all to avoid non conformity.
Success comes with the usage of proper resources. Shan efficient management use resource effectively with respect to the demand of the product because extra usage of usage would increase in inventory which ultimately increases the holing cost and decreases the revenue of the company. Resources are suppliers, internal workers, natural resources, marketing and finance resources, machines.
Usage of the proper resources may result in increase in profitability of the company, as Shan properly uses its resources keeping in mind to demand forecasts of the product. Internals workers are trained as per the requirement as they are the assets of the company. Training is also given to suppliers. A proper. Job description is given to each and every worker of the company to ensure everyone knows what to do.
The main aim of recourse management is to ensure that there should be no nonconformity to product requirement. It should find way to improve the work environment that are essential for conformity of the product.