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PLANT VISIT: MANAGING OPERATIONS

AT THE IGLOO ICE-CREAM FACTORY












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Report on
PLANT VISIT: MANAGING OPERATIONS AT THE
IGLOO ICE-CREAM FACTORY






Prepared for
Professor Dr. Muhammad Ziaulhaq Mamun
Course Instructor
P501-Managing Operations




Prepared by
Group-1

Group Member Roll Batch
Tasmima Kashem 09 47D
Rida Abdullah Exchange Student
Beshroon Afsary 52 47D
Muntasir Alam 02 47D
Saihad Shahid Rahman 06 47D
Deepan Kumar Das 10 47D
Faisal Mahboob Rahman 14 47D
Ahad Uddin Ahmed 21 47D
Zubayer Mahmud Hasan 23 47D
Muhibul Hassan Adil 33 47D
Riza-Ur-Rob 44 47D
Md. Mohiuddin Jahangir 45 47D
Noor Muhammad Tushan 48 47D
Ahsan Azhar Shopan 54 47D
Saifur Rahman 05 47E





Institute of Business Administration, University of Dhaka
June 11, 2013
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June 11, 2013



Dr. Muhammad Ziaulhaq Mamun
Professor
Institute of Business Administration
Dhaka University


Dear Sir:

Subject: Letter of Transmittal

Here is the report on the Plant Visit: Managing Operations at the Igloo Ice-cream
Factory that you told us to submit on June 11, 2013.

We tried to utilize all the knowledge that we gained from our operations management and
business communication courses to compose and write this report. This report looked at the
plant location, manufacturing processes, forecasting techniques and inventory control system
to name a few. In fact, most of the materials covered in our operations management course
were used to analyze the facility.

I hope sir that you will find this report to your liking. Thank you for your support and
guidance.

Sincerely,



Tasmima Kashem (on behalf of Group-1)
Id: RQ-09
Batch: MBA-47D










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TABLE OF CONTENTS
1.0 INTRODUCTION .......................................................................................................... 7
1.1 Origin of the Report .................................................................................................... 7
1.2 Objectives of the Study ............................................................................................... 7
1.3 Scope ........................................................................................................................... 8
1.4 Methodology ............................................................................................................... 8
1.5 Limitations .................................................................................................................. 8
2.0 COMPANY OVERVIEW .............................................................................................. 9
2.1 About Abdul Monem Ltd. ........................................................................................... 9
2.1.1 Vision ................................................................................................................. 10
2.1.2 Mission ............................................................................................................... 10
2.1.3 Core Values ........................................................................................................ 10
2.1.4 The AML Organogram ...................................................................................... 11
2.2 About Igloo Ice-cream Unit ...................................................................................... 11
2.2.1 Mission of Igloo Ice-cream ................................................................................ 11
2.2.2 The Historical Progress of Igloo ........................................................................ 11
2.2.3 Igloos Organogram ........................................................................................... 12
2.2.3 The Different Types of Igloo Ice-creams ........................................................... 12
2.2.4 Customers .......................................................................................................... 13
2.2.5 Competitors of Igloo ice-cream: ........................................................................ 13
2.2.6 Distribution process of Igloo ............................................................................. 14
2.2.7 Price ................................................................................................................... 16
Price List of The Different Items of Igloo: ....................................................................... 16
3.0 THE PLANT VISIT: IGLOO ICE-CREAM FACTORY ............................................ 17
3.1 Location of Igloo-plant.............................................................................................. 17
3.2 Facility Layout .......................................................................................................... 17
3.3 Facilities provided inside the premises of the Igloo plant ......................................... 19
3.4 Manufacturing Process of Igloo Ice-cream: .............................................................. 19
3.4.1 Mix Unit ............................................................................................................. 19
3.4.2 Production unit ................................................................................................... 20
3.4.3 Freezing Process Unit ........................................................................................ 22
3.4.4 Raw materials..................................................................................................... 22
3.5 Inventory Process ...................................................................................................... 23
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3.6 Quality control process.............................................................................................. 23
3.7 New product development ........................................................................................ 23
3.8 Forecasting ................................................................................................................ 24
3.9 Planning ..................................................................................................................... 25
3.10 Supply-chain process................................................................................................. 26
3.11 Inside the factory ....................................................................................................... 27
4.0 RECOMMENDATIONS .............................................................................................. 27
5.0 CONCLUSION ............................................................................................................. 28
6.0 REFERENCES ............................................................................................................. 29































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EXECUTIVE SUMMARY

Igloo ice-cream is a SME business unit of the company Abdul Monem Ltd. It is the pioneer
ice cream brand in Bangladesh, having started its operation in 1964 in Chittagong.Later, with
the expansion of the market, a new factory was established in the Narayanganj Industrial area
near the Dhaka-Narayanganj highwayin order to cater to the market demand. The facility is
producing nearly 60,000 liters of ice cream per day which is distributed throughout the
country. This report analyzed the operations management activities and processes at Igloo.
Data collection was restricted to only the Igloo ice-cream manufacturing plant.Data was
mainly collected using observational techniques and interviews of line and support
employees. Secondary data was collected from the online webpage of Abdul MonemLtd. and
the materials provided by the management at Igloo and Abdul Monem Ltd.

Through this report, we focused on the entire production process of Igloo ice cream. The
processing unit at Igloo has three different sub units- mix unit, production unit and freezing
process unit. After completion of the producing different flavored ice-creams, all the ice-
creams are put into the unit called- IQF (Initial Quick Freezer). In this unit all the ice-creams
are kept in -40 degree centigrade for 70 minutes. After the final production of ice-creams, the
finished goods are kept in an inventory house under the temperature of -25 degree centigrade.
Usually every finished ice-cream can be kept up to 4 days in this inventory house. The
quality of the ice-creams is checked by testing random samples. Sample testing is done at
every 15 minutes and/or other physical and/or sensory cues are also monitored to ensure the
quality.

Suppliers of Igloo provide for items ranging simple nuts coatings, and other basic raw
materials to high tech ice cream processing machines. The main ingredients such as milk
powder, nuts, chocolates, sticks, tetra packs, various essences and flavors are imported from
Australia, New Zealand, UAE and Dubai. Machines are imported from Denmark, Italy and
Switzerland. Usually, during summer season and in any occasion of festivals like as first day
of Bangla new- year, the demand for the ice-creams remains high. On the other hand, during
rainy days and winter season the production volume is comparatively lower. Considering all
these facts the forecasting is done for the production in generally for the next five months.
Within every three months all the inventories of raw materials are checked and prepare to
place orders. The lead time for Igloo is 3 months.

When the location of the Igloo plant was selected, the environment was clean and full of
greenery ideal for any food factory. However, since then, more industries were built in the
neighboring areas. The wastes and off-gases from other industries quickly deteriorated the
surrounding environment. The exhaust gases from other factories sometimes create fogs
around the plant area. Such pollutions might have serious implications in the health standards
of Igloo products. Thus, Igloo management should consider relocating the plant at a more
hygienic location. Through this plant visit we gathered a lot of valuable experience.

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1.0 INTRODUCTION
Operations management refers to the administration of business practices to create the highest
level of efficiency possible within an organization. It refers to the set of management
activities involved in planning organizing, leading, and controlling an organizations
operations. Efficient operation management has a major impact on both the cost of producing
products or services and how well the products and services are produced and delivered
which has a major impact on the revenue coming into the organization. Operation
management represents all aspects of the business process and connects them to create an
efficient and capable course of action.

The ice-cream industry in Bangladesh is quite well developed. Igloo ice cream is the leader in
the local market that is populated by other prominent brands such as Bellissimo, Polar,
Kwality, Savoy and etc. Igloo is a subsidiary of the Abdul Monem group of industries.
AbulMonem is one of the top business establishments in Bangladesh. Although known for
their construction business, they have made significant inroads in other industries such as
bottling, ice cream, sugar refining to name a few. The ice cream industry is retailer
dominated. Igloo has come to command the major slice of the market because it has an
immensely strong distribution network.

This report is dedicated to analyzing the level of excellence in operation management
activitiesconsidering Igloo Ltd as the representative which is the most well known and
establishment ice cream brand in the country.

1.1 ORIGIN OF THE REPORT
This report has been compiled in order to satisfy the essential requirement to pass the
operations management course under Professor Dr. Mohammed Ziaulhaq Mamun. The basic
purpose of this report and the visit to the Igloo manufacturing facility is to give future
managers a basic understanding of how operations management principles and activities
perform in real life and their importance.

1.2 OBJECTIVES OF THE STUDY
Broad objective
To understand the management of operations at the Igloo manufacturing plant

Specific objectives
To gain an insight into the reasons behind the plant location and facility layout
To understand the ice cream manufacturing process
To ascertain the machines used in the manufacturing process
To determine the forecasting and time planning systems used at Igloo
To determine the inventory system used at Igloo
To understand the quality control process and system at Igloo
To gain an overall view of the supply chain management activities at Igloo
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1.3 SCOPE
This report only analyzed the operations management activities and processes at Igloo. Data
collection was restricted to only the Igloo icecream manufacturing plant situated in the
Narayanganj Industrial area near the Dhaka-Narayanganj highway. This report did not
analyze the activities and operational processes of other facilities owned and operated by
Igloo.Moreover, Igloo happens to be a subsidiary of Abdul Monem group of industries.
Therefore, this report also did not analyze the activities at other strategic business units of the
Abdul Monem group.

1.4 METHODOLOGY
Since this report is mostly based on data gathered from visiting the Igloo manufacturing
facility, exploratory research technique was used to compile this report. The authors of this
report mainly gathered data using observational techniques and interviews of line and support
employees.

Secondary data was collected from the online webpage of Abdul Monem and the materials
provided by the management at Igloo and Abdul Monem Ltd.

1.5 LIMITATIONS
The researchers were inexperienced
Duration of plant visit was limited so the researchers could not accumulate enough
data to make a comprehensive report
The employees at Igloo were undertaking cleaning and sanitization procedures during
the plant visit and hence were not very helpful for the majority of the visit
The researchers mostly had to interact with the human resources director at Igloo who
had limited operational management knowledge
Some employees were reluctant to divulge information pertaining to the
manufacturing process, capacity of the plant and the ingredients used to make the ice
cream.
The researchers were not able to inspect the entire facility












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2.0 COMPANY OVERVIEW

2.1 ABOUT ABDUL MONEM LTD.
Abdul Monem Limited (AML) is one of the leading diversified business conglomerates in
Bangladesh. It was established in 1956. Since its inception, it has successfully faced the
challenges of almost six decades of political turbulence, economic instability and socio-
cultural changes as well as the present realities of the Bangladeshi business environment.

AML started their operations as a construction contractor and soon became a trusted name in
the construction industry. They soon earned a reputation for their quality. Abdul Monem
believes in being the trendsetter that others would emulate or follow.

For 56 years Abdul Monem Limited has successfully accomplished numerous projects
including those aided by the World Bank, Asian Development bank, Japan Bank for
International Cooperation and Islamic Development Bank.

The core strength of the organization has been their capacity to gather the resources to
complete infrastructure projects on a grand scale thus proving their capability to sustain long
development periods and to bear the risks associated with such projects. AML has developed
a wealth of experience in the infrastructure and development project fields and has been able
to meet international standards of quality and service.

Abdul MonemLtd. consists of the following subsidiaries:
1. Construction Contractors for the Roads & Highways, Bridges & Culverts, High-rise
Buildings, Factory Buildings, Flood Embankment, Hydraulic Structures, Operation
Maintenance & Toll collection.
2. Bottler of Coca-Cola, Fanta, Sprite, Sunfill Mango Juice &Kinley Drinking Water.
3. Manufacturer of Igloo ice cream
4. Manufacturer of AmoMilk liquid pasteurized milk.
5. Manufacture of Igloo Ghee.
6. Trading & distributing product of Danone Brands.
7. Abdul Monem Foundation
8. AML Trading & Distribution Unit
9. Igloo Foods Ltd.
10. Abdul Monem Sugar Refinery Limited
11. AM pharmaceuticals

Abdul Monem currently employs around five thousand employees and it is one of the fastest
growing firms in the country. AML has high hopes for the future. Under the dynamic and
visionary leadership of its owners, AML strives to have a positive impact on Bangladesh.

The following table shows AML at a glance:

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Name of the Company/Group : Abdul Monem Ltd.
Year of Inception : 1956
Form of Business : Private Limited Company
Type of Business : Manufacturing, Constructing, Trading, and Service
oriented
Market : Whole Bangladesh
Customer pattern : All classes of people especially middle
Total No. of Subsidiaries : 11
No. of Employees : Around 5,000
Location (Head office) : Monem Business District
111 BirUttam CR Dutta Road, Sonargaon Road, Dhaka.
E-mail: amlbd@bdcom.com
Web: www.amlbd.com

2.1.1 VISION
To become a world class business venture committed to achieving the highest quality

2.1.2 MISSION
To make continuous improvement in our business policies and procedures to achieve the
highest quality work for the betterment of society and to achieve cost reduction through
integration of technology at all levels

2.1.3 CORE VALUES
For our customers
To become most caring by providing the quality product efficient service in every area of our
business

For our employees
By promoting the well-being of the members of the staff

For our community
By assuming our role as a socially responsible corporate entity in a tangible manner through
close adherence to national policies and objectives



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2.1.4 THE AML ORGANOGRAM


2.2 ABOUT IGLOO ICE-CREAM UNIT
Abdul Monem Limited is manufacturing and marketing Igloo ice cream, the countrys
leading ice cream brand. Igloo is the pioneer ice cream brand in Bangladesh, having started
its operation in 1964 in Chittagong.

Later, with the expansion of the market, a new factory was established in Shampur Industrial
Area in Dhaka in order to cater to the market demand. Presently, Abdul Monem Limited uses
state of the art technology for manufacturing ice cream. Actually, Abdul Monem Limited is
the first firm inSouth Asia to introduce modern technology for manufacturing ice cream. The
facility is producing nearly 60,000 liters of ice cream per day which is distributed throughout
the country.

2.2.1 MISSION OF IGLOO ICE-CREAM
To find the purest and finest ingredients in the world and craft them into the best ice-cream

2.2.2 THE HISTORICAL PROGRESS OF IGLOO
The following timeline shows how Igloo eventually became the market leader since its
inception in 1964 in Bangladesh.

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1964: Igloo started large scale organized approach under K Rahman & Co. Ltd.
1965: Igloo opened up the first ice-cream parlor in Dhaka.
1971: Igloo was nationalized by the government of Bangladesh after liberation.
1972: In June Igloo was handed over to Bangladesh Sugar & Food Industries Corporation.
1983: Abdul Monem Ltd. acquired Igloo under privatization policy.
1996: In September, Igloo organized a massive marketing campaign
2005 onwards: Igloo leads the market with about 65% market share ahead of Polar, Kwality,
and other competitors.

2.2.3 IGLOOS ORGANOGRAM



2.2.3 THE DIFFERENT TYPES OF IGLOO ICE-CREAMS
There are about 70 different types of Igloo ice-creams in the market and some are as follows:
Chocobar
Mega
Cornelli Classic
Cornelli 2 in One
Macho
Mini Choc
Shell & Core
Kulfi
Snowball
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Igloo is the leader in the Bangladeshi market. Although it is not the first ice cream company
to operate in Bangladesh, it has ever since its inception captured the hearts and minds of its
target markets.

However, the dominant position of Igloo is under threat. New manufacturers are entering the
market place with new and improved offerings that threaten to dethrone Igloos top position
in the market place.

2.2.4 CUSTOMERS
Being the major source of survival and profit, customers form the most important component
for an organization like Igloo. Igloo considers customers as being their life-blood of survival
and is taking the maximum innovative efforts that can be utilized for utmost customers
satisfaction. Customers here can be segmented to family, kids, teenagers of high end, mid
end and low end of the market. Igloo operating in such ever-changing world of tastes and
preference pays heed to customers choices and their attitudes. They, very keenly take on
customers advice, try and amend as well as add new dimension to their business in order to
ensure survival in this highly competitive industry.

2.2.5 COMPETITORS OF IGLOO ICE-CREAM:
There is a potential market of ice-cream in our country. As Bangladesh is a summer seasoned
country, the people are very keen to consume ice-creams of all ages. Although ice-cream
business is very profitable and opportunity to sustainability is very high, there are not much
competitors of Igloo in the market.

The prime competitors of igloo ice-creams are:
Polar
Kwality
Savoy
Panda
Clown
Lolly Orange, Lemon
ShahiKulfi
Cup Vanilla, Strawberry, Mango
Party Time
Ripple Cake
Vanilla
TuttiFrutti
Pralin
Pistachio
Ripple
Coffee
Diet Vanilla
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From the following pie-chart we can see that the market share is mostly covered by Igloo ice-
cream near about 63%, which indicates that, Igloo is capturing the most profit from the ice-
cream business sector.



The above figure shows the total ice-cream market in our country and the corresponding
market shares of different branded ice-creams.

2.2.6 DISTRIBUTION PROCESS OF IGLOO
Distribution mission: Reaching our target consumers in the most efficient and effective
way by becoming benchmark supplier in the ice cream industry, within strategic channels in
every market place where we do business.

The main function of the distribution unit of Igloo is to create a sequence of effective network
so that an important strategic edge over competing channels is created and ensure a
continuous flow of its products to the ultimate consumers, the target market. The activation of
the distribution channels proceeds from their factory at Shampur in Dhaka and ends at the
retail outlets stretched all over the country with a long fleet of refrigerated vans.

After production, ice cream products are stored at the central warehouse of the factory at a
temperature between -30

to -35 degree centigrade where these are stored in a Store Keeping
Unit (SKU) and from there they are distributed through three effective distribution systems
Direct Distribution System (DDS)
Redistribution System (RDS)
Super Distribution System (SDS)


63
24
10
2
1
Ice-cream market share in Bangladesh
Igloo
Polar
Kwality
Savoy
Others
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Direct Distribution System (DDS):
The following way Igloo plans to cover the whole country and each direction. Following is a
list of areas they segmented as zones to deliver:

Dhaka : Covering the Dhaka and adjacent sub-base markets.
Chittagong : Covers the South and South West part of the country.
Comilla : Covers the Western part of the country.
Khulna : South and South East part of the country.
Rajshahi : Northern part of the country.

Apart from that Igloo also operates through ninety-five trolleys for extending its reach to
various consumers at different locations as schools, alleys, streets, parks etc. Also shopping
malls as One Stop Mall in Rapa plaza, Agora in Rifles Square, Stop and Shop as well as
departmental stores as Yusuf, Needs, Almas contains Igloos freezers. Its network also covers
lanes and by lanes through appointing local distributors and dedicated sales teams to
accompany their freezers.

Direct Distribution System uses Freezer On Wheeler (FOW) to distribute the products to
the different operational centers. FOW consists of large refrigerated vans with temperature
under 20
0
centigrade and strict regularity is maintained to ensure proper temperature levels
so as not to cause any deterioration in the quality of ice cream. DDS is applicable mainly for
city-areas, and roads where one can easily access the retail shops by means of FOW. The
DDS network is spread over six regions of the country.

In Dhaka, Gulshan, Banani, Dhanmondi, Uttara, Baily Road, Mirpur Road, and some areas of
Mohammadpur falls under the DDS network. In these areas FOW supplies the retailers with
the required lot of ice-creams. Each retail shop has their own Dealer Record Cards (DRC)
through which they are graded as A plus, B plus, C plus retailers and through which they
assess whether to provide cash discounts, volume incentives scheme or some other means of
discounts. Moreover, Igloo provides retail shops with attractive deep freezers containing logo
of different ice cream so as to ensure proper storage and display of the products.

Chittagong covers south and southwest parts of the country and due to its status as nationals
business capital, Igloo puts high emphasis in distributing its products to some of the retail
outlets through DDS.

In Rajshahi, Barishal, Khulna, Comilla and Chittagong, Igloo uses the DDS system only just
to take its products to the different depot of the regions where Igloo has their warehouse.
Every sales officers of the warehouse covers a number of areas, distribute the goods
themselves to the distributors. Distributors are given a 5% commission as sales incentives to
take the goods to the shop on behalf of Igloo.

Igloo also operates through the trolleys popularly known as tuntuni vans, which uses RDS
for extending its reach to consumers at the furthest points. The trolleys are operated near
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schools, universities, alleys, parks etc. and play rhythmic music to attract the consumers.
These are very colorfully decorated with Igloo umbrella and the pullers wear specific
uniforms. Igloo is the first to introduce and operate these trolleys in Bangladesh for any Fast
Moving Consumer Goods (FMCG). Moreover trolleys are used for places where FOW is
unable to operate. Within Dhaka, Igloo provides RDS facilities in Old-Town, Zikatola,
Badda, Nakhalpara, Khilgaon, and some areas of Mohammadpur and Uttara.

In Sylhet, a self-created concept known as Super Distribution System (SDS) is put into
practice. In this system, the super distributor holds the title of the product and is given the
sole responsibility of selling only Igloos products. Super distributors are given a 7%
commission and they distribute products to retailer and wholesalers on their own accord.

2.2.7 PRICE
Price List of The Different Items of Igloo:
ITEMS PRICE
Chocobar 12/-
Mega 15/-
Cornelli Classic 17/-
Cornelli 2 in One 17/-
Macho 25/-
Mini Choc 10/-
Shell & Core 10/-
Kulfi 5/-
Snowball 6/-
Panda 10
Clown 12/-
Lolly Orange, Lemon 8/-
ShahiKulfi 10/-
Cup Vanilla, Strawberry, Mango 8/-
Party Time 125/-
Ripple Cake 1 liter, 2 liter 140/-, 200/-
Vanilla 0.5 liter, 1 liter, 2 liter 45/-, 80/-, 150/-
TuttiFrutti 1 liter 150/-
Pralin 1 liter 150/-
Pistachio 1 liter 150/-
Ripple - 1 liter 100/-
Coffee 1 liter 150/-
Diet Vanilla 1 liter 100/-


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3.0 THE PLANT VISIT: IGLOO ICE-CREAM FACTORY

Igloo ice-cream is a SME business unit of the company Abdul Monem Ltd. It is a profitable
organization. The scope of ice cream market in Bangladesh is huge. On an average monthly
Igloo sells 60,000 kg of ice-creams.
3.1 LOCATION OF IGLOO-PLANT
Initially the plant was located in Chittagong. It was then relocated to Shampur at Dhaka to get
a hold of a better distribution channel.

Advantages:
The labor supply is available and easy to avail.
Initially the environment was healthy and greener which was helpful for ice-cream
production
The large area facilitates to cover many other subunits inside the factory premises.
The distribution process is easier as the plant location is situated at the center point of
the country.
The area Shampur is not residential area so that the environmental affect is not that
much done to the people.
The electricity supply is very continuous here and the fire service is not that much far
away from the plant location.
The area is not over crowded, so the journey of the distributers is not that much time-
consuming to get the deliveries.
Presence of river Shitolokkha nearby ensures necessary supply of water.

Disadvantages:
As the location is very good for production plants, many factories grew very rapidly
in the last few years.
The wastes and off-gases from other industries quickly started deteriorating the
surrounding environment.
The smokes emit from the chimneys are harmful for the food ingredients of ice cream.
The air is so polluted that air-conditioners of Igloo plant require frequent repairing as
they get clogged due to excessive dust in the air.
The roads surrounding the plant location are very mal constructed whichis now
causing clogging roads with rain water.
The roads are also risky to ply the heavy traffics on them.
The environment is remaining no more greener which is affecting the quality of the
ice cream produced

3.2 FACILITY LAYOUT
The following page shows the facility layout of the Igloo Ice-cream Factory.
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IGLOOS FACILITY LAYOUT

Security & Fire
Dept.
Security
Housing
Distribution
Manager
VAT Maintenance Boiler Generator Engineers
Sales
(1
st
Floor)
Effluent
Treatment
Medics
Inventory
Production &
Packaging Unit
Quality
Control,
R&D
Mix Unit
Low
Temp
-25C
O
f
f
i
c
e
s

a
n
d

C
o
n
f
e
r
e
n
c
e

R
o
o
m

(
U
p
p
e
r

f
l
o
o
r
s
)

(
)

Distribution Centre
NH
3
Refrigeration Plant
Entrance
Exit
Raw
Materials
Storage
Workers Dressing
Room
W
a
s
h
i
n
g

A
r
e
a

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3.3 FACILITIES PROVIDED INSIDE THE PREMISES OF THE IGLOO PLANT
Quality control and R&D sector
In-house physicians for the workers
Microbiological counting is done to check the air contamination inside the factory
The cleanliness of the workers is confirmed before entering into the factory
Plastic boxes and the paper-labels are produced inside the premises.
Fire fighting unit
A separate milk unit
Distribution unit
Production unit
Engineering unit
Chocolate unit
Finance unit
HR and Admin unit

3.4 MANUFACTURING PROCESS OF IGLOO ICE-CREAM:
There are Chiller Substances inside the factory, which are machines that produce ammonia
to chill the temperature inside the tanks and inventory house.

The ice-cream processing unit has three different sub units the Mix Unit, the Production
Unit, and the Freezing Unit. The units are explained in the flowing pages with diagrams.

3.4.1 MIX UNIT

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At first, the initial ingredients, milk and sugar are mixed to make the proper mixture of sweet
milk. For that, milk is pasteurized in a mixture tank which is labeled as TI-3000. The
capacity of this tank is that, it can pasteurize 3000 kilogram milk per hour. For the milk
mixing process powder milk is brought to make the ice-creams.

After the mixture the milk is sent to the machine Homogenizer, where milk is mixed with
sugar in homogeneity-ratio. Basically the pasteurization and homogenization are done
sequentially altogether. That means this is a single task consisting of two different parts.

After this, the mixture of the milk and sugar is sent to the mother tank. The mixture is chilled
here. There are three mother tanks each of which is having capacity of processing 2000
kilogram mixture of milk and sugar. The tanks are labeled as- HTST-3000. The temperature
is kept less than 4 degree centigrade in these mother tanks. In total 6000 kg of mixture is
processed here and the function of the mix unit is transferred to production-unit from here.

3.4.2 PRODUCTION UNIT


From the mix unit the homogenized mixture of milk and sugar is now transferred to the
production unit. This unit is placed to the adjacent room to the mix unit. And the tanks are
connected by pipe-lines. These pipe lines carry out the mixture from the tank to tank. In the
production unit, there are eight different tanks. Three of which have a capacity of 24000 kg
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each and the rest have 12000 kg. Usually, producing 24000 kg of ice cream is considered as a
single batch. The mixture is at first placed in a tank where flavor and color is mixed to the
mixture. In this process the tanks are labeled as- HOYER FRIGUS-12. In this addition
process the temperature is kept at less than 4 degree centigrade.

After this tank, the temperature is reduced to -5 degree centigrade so that the ice-creams
come to solid forms. Here comes the most elementary flavor of Igloo ice-cream which is
vanilla flavor.

At the end of this tank vanilla-flavored ice-cream is poured into the plastic box of 1 liter and
liter. This task of pouring the ice-cream is done manually. All the other tasks such as
sealing and tagging are also done manually comprising of 5-membered team for this vanilla-
flavored ice-cream box. The diagram below shows the process.



Like the similar process of producing vanilla ice-cream, other flavored ice-cream such as
Double Sandy Doze is prepared. For this flavor, the mixture from the mix unit is
transferred to another tank where the required flavor and the color is mixed. Here two
different pipe-lines bring two different flavored creams: one is caramel and the other is
vanilla in to the box of the Double Sandy Doze ice-cream. This pouring process is done
through automation process. After the pouring the addition of nuts and other labeling, tagging
tasks are done manually. Here the temperature of the tank is also kept at -5 degree centigrade.

Another automation process is done to produce the bar-formed ice-cream of Igloo. All sorts
of bars like as Chocobar, Malai etc. are produced through this machine. Through this process
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if any bar is cracked than that piece is destroyed and isnt included in the production. For this
process the machine used is labeled as- ROLO-27.

Another machine is used to process the vanilla-flavored cup ice-cream. The process of
pouring is done by automation. Again, tagging and packaging is done manually.

3.4.3 FREEZING PROCESS UNIT
After completion of the producing different flavored ice-creams, all the ice-creams are now
put into the unit called- IQF (Initial Quick Freezer). In this unit all the ice-creams are kept in
-40 degree centigrade for 70 minutes. In this duration of 70 minutes the ice-creams become
chilled down and become prepared to be delivered.

The diagram below shows how the freezing process unit works:




3.4.4 RAW MATERIALS
The raw materials used in manufacturing the Igloo ice-creams are:
Skimmed milk which is imported from Australia
Igloo sugar produced by their own factory
Milk fat, vegetable fat imported from Malaysia
Stabilizer which is used for the body texture of the ice-cream
Glucose which is purchased from the local company Rahman Chemicals
Nuts, usually imported from USA
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Peanuts are brought locally.
Previously Igloo used synthetic food color but from the last one/two months they are
using natural food color for the ice-creams.
Additive flavor. But they use mango pulp for their mango-flavored ice-cream.
Plastic they use for the boxes are purchased locally and the boxes are produced by
their own.
Chocolate

3.5 INVENTORY PROCESS
After the final production of ice-creams the finished goods are kept in an inventory house
which is basically a vast deep-freezer. In that room, the finished ice-creams are kept under
the temperature of -25 degree centigrade. Usually every finished ice-cream can be kept up to
4 days in this inventory house. The capacity to fill up the inventory house is maintained in
that way. The diagram in the previous page shows the inventory process at the Igloo ice-
cream factory after the ice-creams go through the freezing unit.

3.6 QUALITY CONTROL PROCESS
Igloo delivers its commitment for quality for each product by maintaining Total Quality
Management (TQM). All the raw and packing materials are procured from the best European
sources. Strides Quality Control is done at every aspect of the manufacturing process form
procurement of materials, blending, material flow, ice cream making, packaging, storing (at
main warehouse), distributing and market shelving by the Quality Control Department.

The quality of the ice-creams is checked by testing random samples. The Quality Control and
R&D department in the premises of the plant examines the quality of the finished ice-creams
and approves them. Sample testing is done at every 15 minutes and/or other physical and/or
sensory cues are also monitored to ensure the quality.

3.7 NEW PRODUCT DEVELOPMENT
For the purpose of new product development, a team comprised of four members seat for a
weekly meeting usually in the head office. There they discuss for the new markets entrants
or any innovative flavor.

Different Sales-structure of different flavors of Igloo ice cream is given in the following
figure:
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3.8 FORECASTING
1. Method of forecasting
Method of forecasting at Igloo is entirely manual and traditional. No software is used
for forecasting. There is not even any specific time frame for forecasting. For
forecasting, Igloo use bottom-up forecasting method. It generates the forecast at the
lowest level of the forecast pyramid. The distributors forecast monthly/ weekly sales
for each individual SKU (Stock Keeping Unit). Territory Sales Officer consults with
the distributors across the country and decides how much each distributor must stock.
After that, distributors place the orders and the Territory Sales Officers ensure that the
orders reach the factory in time.

2. Safety Stock and Lead Time
No specific amount of safety/ buffer stock is maintained. Decisions regarding buying
and stocking up raw materials depends mostly on whims and past trends as no
scientific method is being followed. Raw materials are kept in the inventory for
around 2 months. Igloo maintains a lead time of 3 months.

3. Total Cost of Forecasting
There is virtually no additional cost for forecasting as everything is done manually
without using any special forecasting software.
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Forecasting for producing a particular flavor is varied season to season. Usually during
summer season and in any occasion of festivals such as first day of Bangla New Year, the
demand for the ice-creams remains high. For this reason, the production for the ice-cream
during this season is done in a high volume. During rainy days and winter season the
production volume is comparatively lower. Considering all these facts the forecasting is done
for the production in generally for the next five months. Within every three months all the
inventories of raw materials are checked and prepare to place orders.

3.9 PLANNING
Though Igloo does not go through any formal forecasting criteria, they do some structured
planning for production decision and raw materials purchasing decision. Planning is very
crucial for any organization as it gives them direction of where they are headed for. It reduces
uncertainty by forcing marketers to look ahead, by anticipating changes, by considering the
impact of change and by developing appropriate responses. Furthermore, planning minimizes
wastage and can set standards in controlling.

Igloo is managed by developing three levels of plans the short-term, medium-term, and
long-term plans.

Long-term plans:
1. To become one of the market leaders in the ice-cream industry.
2. To gain goodwill.
3. To expand its business domestically and internationally.
4. To ensure long-term existence by being profitable, successful and sustainable.
5. To make a worthwhile contribution to progress of the nation.
6. To increase the number of Igloo parlor in targeted prospective areas.

Medium-term plans:
1. To provide the best services and highest quality products.
2. To respond effectively to the market demand.
3. To survive in the market by increasing profitability and growth.
4. To gain competitive advantage and to increase market share.
Moreover to ensure the fulfillment of the overall company strategy, it focuses on a wide
range of facilities in order to motivate employees, distributors and retailers to increase their
performance.

Short -term plans:
1. To introduce a more innovative range of ice cream.
2. To achieve responsiveness to the changing taste buds of the consumers crucial for
survival in a highly competitive market.
3. To maintain their current level of profitability and efficiency.
4. To import quality raw materials from abroad.
5. To keep stocks of raw material so as not to hinder production.
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3.10 SUPPLY-CHAIN PROCESS
Suppliers of Igloo provide for items ranging simple nuts coatings, and other basic raw
materials to high tech ice cream processing machines. Almost all ingredients are supplied by
foreign suppliers. The main ingredients such as milk powder, nuts, chocolates, sticks, tetra
packs, various essences and flavors are imported from Australia, New Zealand, UAE and
Dubai. Machines are imported from Denmark, Italy and Switzerland. An important note on
suppliers is made here by the Igloos Marketing Manager. According to him, local suppliers
are far less reliable than foreign suppliers both in terms of quality of goods and the kind of
services they provide. Foreign suppliers are more reliable, professional and devoted to
commitments. Such is its faith on foreign suppliers that Igloo imports all items though it is
time consuming and there are costly import related formalities.

The total supply-chain process for the Igloo ice cream step by step is described below:
Step-1: Purchase request is proposed
Step-2: Required department calls for RFP (Request for proposal) with quotation for the
different ingredients/raw materials except sugar as it is purchased directly from Igloo sugar.
Step-3: Then the quotation by the different vendors are evaluated
Step-4: Management approves the least-quoted suppliers of raw materials
Step-5: The LC is opened
Step-6: Shipment is started just after the opening LC
Step-7: Then raw materials are sent to factory
Step-8: The final production starts
Step-9: Finished products are kept in the inventory house where the ice-creams can be kept
maximum 4 days before deliveries. If inventory house is filled up with the ice-creams then
production remains closed till the inventories are delivered.


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3.11 INSIDE THE FACTORY
The following observations were noted regarding the internal environment of the factory:
The floors were very slippery because of the water which is being used continuously
to mix the milk powder.
The workers working there were wearing apron, hair-covering cap, mask and hand
gloves to protect the air from contamination of germs and bacteria.
The rooms were so much noisy because of the running machines.
Every steps of producing ice-cream were being done in very synchronizing way.
The workers working at the inventory-house were wearing required jackets to be
protected from the low temperature.

4.0 RECOMMENDATIONS
The following recommendation we have found to make Igloo prepare for future competitive
market for ice cream industry:
The plant should be relocated to a more health, green and well-constructed areas and
the surrounding area should be wider and cleaner.
Instead of ammonia igloo should use other substance to chill the temperature of the
room and the inside of the tanks.
The full process of making ice cream for all flavors should be automated.
Inside the factory the sound pollution should be reduced due to the noise from the
running machines.
The floor was so slippery that it can even create accidents for the workers. So the
floors should be kept dry and clean.
There should be a clear and structured forecasting technique to get more production
prospects and more profit to avail.
The supply chain and raw materials procurement should be handled more precisely to
avoid the loss of opportunity to get quality full substances.
The collection of wastage materials and ice-cream should be done more hygienically
so that when those are put into the recycling process remain as healthier as fresh one.
Man power should be lessen down, so that inside the factory hose the place is not
over crowded.
Each process should be done more synchronizing way.
The capacity of the inventory house should be enlarged to avoid the over stock due to
the bad weather like as sudden rain and cold weather.
The workers should be prepared more hygienically to avoid the air contamination by
germs.
The waste disposal process should be done more carefully so that it does not harm the
entire environment.

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5.0 CONCLUSION
Evidently by virtue of its unique product attributes, high quality, exquisite and mouth-
watering varieties of ice creams, attractive and distinct packaging, Igloo has been able to
ensure marketing excellence and enhance its competitiveness. Todays fiercely competitive
environment compels Igloo to pursue the right set of pricing strategies, policies for effective
segmentation and targeting, market oriented structures of distribution and retailing, which lies
at the heart of a companys success.

Moreover, with a view to achieving wide distribution network, it operates a system of RDS,
DDS, SDS, maintains depots and warehouses to achieve a relentless effort to maintain its
sales and distribution flow enables the company to achieve its desired goals. In its quest to
create satisfying customer relationship and optimizing the performance of the entire system,
Igloo has resorted to a system of timely distribution. This report basically focuses on the
production aspects of Igloo and tries to give an analysis of Igloo in terms of manufacturing
process, raw materials procurements, supply-chain maintenance and planning for production.
We also tried to focus on the plant location of Igloo and discussed both the advantages and
disadvantages of the factory location.

We also recommended some essential steps that Igloo should take to get edge in future
competitive market. The entire experience of visiting the Igloo plant was very good for all of
us. We could get the opportunity to relate our learning with the practical work environment.
The total production process observation helped us a lot to get the experience of having a
complete concept of entire process of producing ice cream. We gathered a lot of valuable
experience and orientation to the managerial skill to manage a whole plant as well. Already
Igloo is the pioneer in the ice cream industry in our country. But due to future more new
market entrants, Igloo should adopt more new strategies to cope up the threats. And the
management of Igloo ice-cream is efficient enough to make the required change happen and
adopt necessary steps accordingly.









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6.0 REFERENCES

Abdul Monem Ltd. (n.d.). Retrieved June 08, 2013, from Google Sites:
https://sites.google.com/site/amliglooicecream/aml-group

About Us. (n.d.). Retrieved June 8, 2013, from Abdul Monem Ltd.:
http://www.amlbd.com/main.php

Mamun, M. Z., & Ahsan, A. (2012-13). Operations Management. (K. Arefin, Ed.) Dhaka:
Publishing Printing & Distribution Division (PPD).

Shahed, M. R. (2013, May 21). Senior Manager (HR & Admin), Igloo. (Group-1,
Interviewer)

Taimur, S. (2013, June 2). National sales Manager, Igloo. (D. Das, & S. Rahman,
Interviewers)