MRM - Management Review Meeting Presentation

MRM Presentation after internal audit of QMS

1. Management Review Meeting ISO 9001:2008 Quality Management System November 2014 -15 Pearl Confectionery (Pvt.) Ltd Presented by: Syed Noor Mustafa Shah

2. Flow of Presentation Results of Internal Quality Audits ( IQA-1/2014-15) Comparison of results of CARs of IQA-1/2014-15 with IQA-1/2013-14 Results of Internal Audits (BRC-1/2014-15) Results of Internal Audits (HALAL-1/2014-15) Tentative Time of Quality Objectives 2014-15 Status of Compliance 2014-2015 Work Plan

3. Results of Internal Quality Audits (IQA-1/2014-15) 15/09/2014 to 22/09/2014

4. Results of Internal Quality Audits (IQA-1/2014-15) Compliance Major CARs Minor CARs 05 Observations Procedure not followed for the MRM Meeting agenda No evidence found for internal audit team Master list of record not found with signature and control no Procedure of coating & bubble still not updated Procedure not followed for the IQA Plan

5. Results of Internal Quality Audits (IQA-1/2014-15) Quality Assurance Major CARs Minor CARs 11 Observations 05 No data record sheet or log maintained for samples of incoming raw material No data record found for retained flavors and colors 1 & 2/sep/2014 QC sheets (in-process inspection sheets) of bubble department record not available in file Document Control # missing in many forms including QC in-process inspection sheets MSO # 363, retention sample box shows two printed MSO on it which are MSO # 316 and MSO # 363 Traceability not proved for complaint raised by chocolate department on the spot during the audit NC (IQA-1/13-14/QAD-01) repeats for refractor meter. "Refractor meter found not to be calibrated since the day of its purchase NC (IQA-1/13-14/QAD-07) repeats. "In-process inspection sheets QA/FM-03 found to be irregular, should be conducted after define time intervals Records of raw materials (Colors &Flavors) were not maintained In coming raw material first hold/then released, reason not mentioned in the report NCs from last audit QAD 01, QAD 02, QAD 03 & QAD 07, repeated Order conforming report has no document control # and also it is not filled properly Color printing is not per standard but the packaging material is accepted as there is no any remarks mentioned Color sample cabinet is lacking of cleanliness (housekeeping mop found in the cabinet) and also found some tag were not pasted correctly Observation (IQA-1/13-14/QAD-03) repeats. "Incoming Inspection Report QA/FM-01" should have printed acceptable limits for the items tested instead of manually entering Back process Inspection report was not a controlled document

6. Results of Internal Quality Audits (IQA-1/2014-15) Research & Development Major CARs Minor CARs 06 Observations 03 FM 01 raw material submission form no signature is found of Director Purchase PUR/FM 04 is found incomplete filled 20/07/2015 is found in new product development form No signatures are found in recipe of Milk Candy No data maintain of recipes of different product, last data updated on 6/5/2014 New product development form is found without signature Export sample (product wise) is not updated Concept no. and receipt no. are not found in production trial request form MSO 529 Submission forms reference no. missing on Goal Bubble

7. Results of Internal Quality Audits (IQA-1/2014-15) Human Resource Major CARs Minor CARs 06 Observations 06 Procedure is not available at the department on audit time. It was not available in last audit Labour requirement working not updated and completed. Procedure no 4 and 4b is not updated. Appointment letter is not found in any employee file PCL/FM/11 is in procedure but not found in related Documents / Record List PCL/FM-19-R00 not available in procedure Orientation Training Record is found without printing (PCL/HR/REC-006) Employee Joining Report is found without printing (PCL/HR/REC-007) Documentation check list is found without printing (PCL/HR/REC-001) Signature of HR / Admin Manager is not found in attendance sheet of trainings 0 and negative time (-25) are found in column of require time of Requirement Cycle Time The transfer letter is not found in personal file of Mr. Rehman (Production Officer)

8. Results of Internal Quality Audits (IQA-1/2014-15) Production Candy Major CARs Minor CARs 06 Observations 03 NC Repeats. IQA-1/13-14/CAN-06 (work instruction of lollipop not found) NC repeats. IQA-1/13-14/CAN-01 (drain line open in service line and dirty water was stack). Production sheets have different name other than mentioned in procedure. (i.e. procedure production sheet candy line but in physical it is mentioned as Candy line  activity log sheet Production planning sheet pasted at production officer's office was of date 15-9-14, but till 11:30 there was no new planning was found pasted Overall lack of housekeeping issue was observed on every section Production sheets are 2 sheets for each product category but having same and 1 control #. (i.e. Chew Line Easy fold Wrapping  Activity Log Sheet and Chew and Easy fold Wrapping  Activity Log Sheet having same control no. PROD-CNF/FM05 Cartons (Anjou caramel) found open and damaged in export warehouse at production candy department On puller machine of Dr Milk worker directly contact. Candy line activity lode sheet PROD-CNF/FM03/R00 DATED12/09/2014 was found unsigned except supervisor

9. Results of Internal Quality Audits (IQA-1/2014-15) Production Chocolate Major CARs Minor CARs 05 Observations 05 Wash basins are found unclean and worst condition & sanitizer was also absent Color jars found unlabelled PROD-CHOC/01 is not in practice and should be obsolete Weight scale calibration tag was expired and un readable CH-206 (Biscuits for Chincko) is found adjacent of un useable scarab Finished Goods was stocked without pallets Fire extinguisher was not available at designated place Broom found in coating area PROD-CHOC/02, 04 and 05 not updating on controlled document Light of fly catcher was out of order

10. Results of Internal Quality Audits (IQA-1/2014-15) Engineering General Store Major CARs Minor CARs 10 Observations 05 Last audit report not found Procedure up gradation required also only one procedure was available Un awareness with obsolete vs control document as obsolete documents are found in department Record control system completely collapse Physical stock of bearing 32310 found out by 2 each bearing is Rs. 4000 Physical stock of Belt A 51 found Short by 3 each belt is Rs. 69 Bearing and belt issued without M.I.R No define maximum and minimum limits of stock Supplier performance, supplier evaluation and supplier black listing found missing Tender forms not filled of individual Un awareness with procedures applied in department Documents change record is found not updated Retention list found unavailable Control document no, need to be printed on documents Received stamp is not using on bill

11. Results of Internal Quality Audits (IQA-1/2014-15) Engineering Electrical Major CARs Minor CARs 06 Observations 01 No awareness about Quality Objective of department Procedure up gradation required also only one procedure was available Machine history is not available Break down analysis is absent Machine Accident report analysis Currant calibration certificate of Asia Tec is not found In house calibration is not performed

12. Results of Internal Quality Audits (IQA-1/2014-15) Engineering Maintenance Major CARs Minor CARs 06 Observations 06 Approved preventive maintenance schedule found missing Incomplete listing of machines (depositor & Loly Pop + Chew Line 2) Manager agreeability over preventive maintenance work not found Work Instruction not available in department or in file Calibration (Missing in major cases, Service line one weighing scale having expired tag of calibration, Variation issue in multiple scales) Machine break down analysis Job Order analysis found missing Procedure required up gradation (Internal maintenance call procedure ISO reference no is missing) Machine history sheet being maintain causally & ineffectively Retention list is not available Over all unhygienic condition is found Unaware with Quality Policy and unaware with procedure Procedure is not available in department

13. Results of Internal Quality Audits (IQA-1/2014-15) Supply Chain Management R.M Store Major CARs Minor CARs 05 Observations 09 NC Repeat (SCM-05) - "Procedure not available.“ NC Repeat (SCM-06) - "Purchase order not available from purchase department.“ NC Repeat (SCM-07) - "ISO number not found on material requirement document raised by production.“ NC Repeat (SCM-10) - "Damaged wrapper found on floor.“ NC Repeat (SCM-11) - "Over stacking of wrapper found in RM store stock area.“ Sign not found on GRN QA inspection is not per standard and procedure GRN and RGRN are received on same paper, it is not good practice Some flavors have no expiry date mentioned on it Dirty rack, and dust found on poly bags No segregation of gum base and poly bags at RM store stock area Dust found on wrapper Web cobs found in RM store Open wiring found in RM store

14. Results of Internal Quality Audits (IQA-1/2014-15) Supply Chain Management Ware House Major CARs Minor CARs 04 Observations 07 Procedure not found Delivery Challan control number is not matching with procedure NC Repeat (SCM-16) - "space not sufficient and FIFO not maintained as no evidence found.“ NC Repeat (SCM-17) - "finished goods transfer sheet STR/FM11 not included in procedure.“ No sign found on delivery Challan QRL (quality record list) not found in department ISO number (Control #) not mentioned on Sale return Training should be conducted for new comers on all QMS mandatory procedures Finished goods should be stacked on pallets Damage cartons found in warehouse Rope found in warehouse

15. Results of Internal Quality Audits (IQA-1/2014-15) Supply Chain Management M.M Major CARs Minor CARs 03 Observations 02 NC Repeat (SCM-01) - "sales forecast is received for 2 months instead of quarterly“ NC Repeat (SCM-02) - "Export order forecast not found.“ NC Repeat (SCM-04) - "ISO number (Control #) not mentioned on min/max level sheet.” ISO number (Control #) not mentioned on Sale forecast QRL (quality record list) not found in department

16. Results of Internal Quality Audits (IQA-1/2014-15) Production Bubble Major CARs Minor CARs 07 Observations 06 Material requisition is sent via email (excel sheet) instead of Material requisition form STR/FM 10 as per draft procedure Materials received via same email (excel sheet) print out along with Material Transfer from store instead of factory requisition but control # is ok Daily Stock Sheet (packaging) and Finished goods sheet are merged and named as "Export Finished Good Stock" and "Local Finished Good Stock" and also no control # is mentioned on it Daily Stock Sheet (back process) is named as "Daily coated mass report" and also no control is mentioned on it No maintenance work is recorded in Maintenance Register, PCL/BUB-REG01 only the document "internal maintenance call" is used to raise the complaints Floor found unclean near Euromec and mixer area CH-43 and PF-106 canes are used in current production but there is no identification tag found on these canes Procedure is only available in soft copy It was observed that record of orders (local/export) is received by email and is not segregated or stored at one place signatures on delivery Challan are not complete (one or few signatures missing in all record) Daily Production Sheet, Daily Log Sheet, Daily Process Control Sheet are not in practice only the daily Production Planning and Production Summary which is system base is maintained and named as Daily Production Report Daily Summary of batches and forming is collected on new developed sheet which is maintained by supervisor and submitted to Asst. Manager Production which should be controlled Wrapping Sheet is not mentioned in procedure it used to record the production of wrapping machines and it has no control #

17. Results of Internal Quality Audits (IQA-1/2014-15) Production Coating Major CARs Minor CARs 01 Observations 03 Work instruction is not available and clearly visible at some places Labeling is not done at some places for the stock of raw and packaging material List of Records and Record Retention list is not available Procedure is only available in soft copy

18. Results of Internal Quality Audits (IQA-1/2014-15) Marketing Major CARs Minor CARs 03 Observations 01 Procedure is not available at the department PCL/FM-17 is not signed from a long time No Approval is found in Art Works of clocks Media plan is found with cutting by marker

19. Results of Internal Quality Audits (IQA-1/2014-15) Export Marketing Major CARs Minor CARs 04 Observations 01 Procedure is not available at the department No record or log is maintained for sample requisition form and respective DHL receipt Complaint no. complaint resolve date and verify by signature missing in complaint form no 2 & 3, also complaint no. 1 form was not available in file CEO signature is not available in EMKT/FM/02 (Repeat NC) CAR No. 2 Gross weight and net weight is not found in Export order for MSO#540/1314

20. Results of Internal Quality Audits (IQA-1/2014-15) Logistic (Import / Export) Major CARs Minor CARs 02 Observations 00 Procedure is not available at the department Procedure is not following

21. Results of Internal Quality Audits (IQA-1/2014-15) Purchase Major CARs Minor CARs 02 Observations 04 Purchase order control # is mentioned as PUR/FM020 instead of PUR/FM02 Control # found missing in the Supplier re-evaluation record New Form should be prepared for the blacklisting of suppliers which will be the evidence as it is done on the basis of price rate and quality issues via verbal approval of top management Ref # of MM sheet in Rate comparative statement found misprinted as there was no matching of items found in rate comparative and MM sheet for that mentioned REF # Approved supplier list frequency should be monthly Procedures need to be revised and also it must include other documents or their reference which are not controlled

22. Results of Internal Quality Audits (IQA-1/2014-15) Product Development Major CARs Minor CARs 01 Observations 00 Procedure is not following

23. Results of Internal Quality Audits (IQA-1/2014-15) Information Technology Major CARs Minor CARs 03 Observations 03 Procedure up gradation required Servers are not in lock and Key PCL/IT-05, 07, 08 & 09 is not updated Alternate Data backup frequency PCL/IT-05 is not mentioned in procedure Some Employee names and authorities signatures are misplace in PCL/IT-04 and it should be review Record control system is not updated

24. Results of Internal Quality Audits (IQA-1/2014-15) Sales / Corporate Marketing Major CARs Minor CARs 01 Observations Procedure is not following

25. Comparison of results of CARs of IQA-1/14-15 with IQA/13-14

26. Comparison of results of CARs of IQA-1/ 2014 -15 with IQA/13-14 IQA/2013-14 IQA-1/2014-15 Department Major Cars Minor CARs Observations Major Cars Minor CARs Observations Compliance 9 1 5 Quality Assistance 3 1 11 5 R & D 3 6 3 Human Resource 5 2 6 6 Production Candy 8 1 6 3 Production Chocolate 8 5 5 Engineering G. Store 7 2 10 5 Engineering Elec. 10 2 6 1 Engineering Maint . 6 6 (S.C.M) R.M Store 8 5 9 (S.C.M) Ware House 6 4 7 (S.C.M) M.M Store 2 3 2 Production Bubble 7 6 Production Coating 1 3 Local Marketing 3 1 Export Marketing 3 3 4 1 Logistic (Imp / Exp) 2 Purchase 7 2 2 4 P.D 1 I.T 12 1 3 3 Sale / Co Marketing 1

27. Results of Internal Audits (BRC-1/2014-15) 21/07/2014

28. Results of Internal Audits (BRC-1/2014-15) Production Chocolate Major CARs Minor CARs 08 Observations 00 Few colors jar were lacking the tagging in flavor/color room and also CH-21 bags were found in unhygienic condition as if there were wet in rain Floor and wash basin found unclean in CCP-1 area near sugar grinding machine and cooker Material Balancing sheet was absent No work instruction found in back process except cooker BRC food safety policy was not pasted in any area HACCP activity was not carried out since external audit also HACCP plan not found available at production floor Drain holes were open near changing room, kitchen washroom etc which is the main transport area for the pests Weight scale calibration tag was expired also un readable near (CCP 1)

29. Results of Internal Audits (BRC-1/2014-15) Quality Assurance Major CARs Minor CARs 07 Observations 00 Work instructions are found pasted but not in controlled format and also named as standard operating procedure (SOP) Few incoming raw material sheet not maintained as per COA (Noor Dairies) of raw material like moisture ratios Procedures not functional like Sampling and monitoring & analysis Few documents found without Control no HACCP plan not functional since external BRC audit also no validation is done to test the HACCP plan is active or not Microbiological testing record not available Testing procedures were under development

30. Results of Internal Audits (BRC-1/2014-15) Compliance Major CARs Minor CARs 06 Observations 00 Monthly Food safety meetings were not conducted Old yearly (2013-14) Training calendar not found Awareness session (July 2014) record of BRC missing Training record of HALAL of batch 1 is missing Controlled document stamp was missing on Chocolate procedure Chocolate department missing in controlled document list

31. Results of Internal Audits (BRC-1/2014-15) Supply Chain Management R.M Store Major CARs Minor CARs 02 Observations 05 Cat is found Physical quantity is no match with System Dead stock policy not available Bin cards not maintaining CH-14 & CH-147 storage condition was unsatisfactory Raw & packaging materials are found on floor Rejected and dead stock is also found in with running products

32. Results of Internal Audits (HALAL-1/2014-15) 21/08/2014 to 22/08/2014

33. Results of Internal Audits (Halal-1/2014-15) Quality Assurance Major CARs Minor CARs 07 Observations 00 Supplier list is available but not approved also updating date is missing Halal certificate of Noor dairy for CH-100 & 101 is found without company Stamp Certificate no 2 & 5 (mentioned in Halal Certificate file) are found expired Approved Halal product list and Halal ingredient list not available in Hard copy Staff is not aware with Halal Standard & Halal Policy Product wise ingredient list not available

34. Results of Internal Audits (Halal-1/2014-15) Compliance Major CARs Minor CARs 07 Observations 00 Maintaining records of HCPs which have been already identified were not found maintained. Training on Halal was found conducted, but it was conducted last year on 30th August,2013 after which some of the staff have left & some newly hired, therefore the training frequency must be set at least bi-annually not annually Internal audit was found conducted but related to food safety & hygiene only, HALAL was not part of the internal audit plan Halal food safety policy was found evident, but not communicated to the workers & neither patched in production area or any place in factory Food safety manual is in practice in which Halal requirements are missing or Separate HALAL manual absent Halal objectives not found Schedule of audit plan not found

35. Tentative Time of the Quality Objectives 2014-15

36. Quality Objectives (2014-15) Q.A & R n D Reduce the customer complain level as compare to last year by 10%. 4 th Quarter Production Candy Improvement in line efficiencies by 3%. 4 th Quarter Proper utilization of SAP to monitor smooth process and reduce the differences of SAP and physical to 5% maximum. 2 nd Quarter Man power and utilities costs reduce by at least 10%. 4 th Quarter Purchase To explore the new cost effective and quality suppliers by 10%. 3 rd Quarter Supply Chain Raw Material Store Minimizing the number of RM stores to keep the carrying cost under control by10%. Not Agree by %age Finished Goods/Warehouse Reduce the cost of transportation to 10%. Not Agree by %age Reduce the delivery time b/w order and supply by10%. Not Agree by %age

37. Quality Objectives (2014-15) Engineering Reduce the maintenance complaints and enhance the efficiency to 10% by a) Implement the preventive schedule. 4 th Quarter b) Improve the HVAC system 4 th Quarter c) Reduce the utilities by cost of gas and K.E.S.C by proper management 2 nd Quarter Compliance To develop the hygiene audit system /procedure according to standard practices 4 th Quarter To monitor, benchmark and improve our business processes and performance of our production system in a continuous manner by implement the standard procedures 4 th Quarter Human Resource To reduce employee turnover and develop analytical reports related to turnover by 10% 4 th Quarter

38. Quality Objectives (2014-15) Information Technology Successful implementation of SAP Business One ERP in our company 2 nd Quarter Implementation of service module in engineering department 3 rd Quarter Implement of pay roll software 4 th Quarter Rationalize the no. of PCs in every department 2 nd Quarter Sales Sales department aim to get the growth in their business increased in term of review up to 18% as compared to their achievement in year 2013 -2014 4 th Quarter Increase the no. of outlet by 50% Not Agree by %age Increase the Co-Operate sales by 100% by increasing the sale outlet as compare to previous Not Agree by %age Export To Increase in export by at least 10% 2 nd Quarter To explore/open at least 4 new destination 2 nd Quarter

39. Status of Compliance 2014-15 Work Plan

40. Compliance 2014-15 Work Plan Points Awareness Session Internal Auditor Trainings Procedure Develop and Procedure Review Hygiene Audit Internal and External Audit Management Review Meeting M.R Office (Changes and Reports) Record Room Management Intranet Website Q.M.S Appraisal Points

41. 1 - Awareness Session (Status) Title Status QMS Awareness Session (1) Done on 23 rd August 2014 QMS Awareness Session (2) Done on 25 th August 2014 QMS Awareness Session (3) Postpon ed HALAL Awareness Session* Done on 24 th of October 2014 BRC Awareness Session Planned in December Hygiene Awareness Session Planned in December

42. 2 - Internal Auditor Trainings (Status) Title Status QMS Internal Auditor Training (Batch 2) Done on 6 th , 8 th & 9 th of September 2014 HALAL Internal Auditor Training (Batch 1*) Done on 24 th of October 2014 BRC Internal Auditor Training (Batch 1) Planned in December

43. 3 - Procedure Develop and Procedure Review (Status) Title Status Procedure Develop Production Coating Draft is ready but it require more amendment and will be completed in 2 nd Quarter Production Bubble Local Marketing In meeting it was decided Marketing Department will provide Draft Copy in Last Week of December Procedure Review All Other D epartments Email send to HODs , Work in progress and will be completed in 2 nd Quarter

44. 4 - Hygiene Audit (Status) Month Status July Done on 16/07/2014 August Done on 08/08/2014 September Done on 04/09/2014 October Done on 02/10/2014 November Done on 14/11/2014 December Will be conducted Every Month on surprise basis before Co – Ordination Meeting January February March April May June

45. 5 - Internal and External Audit (Status) Title Status BRC – Audit # 1 Done on 21 st of July – 14 Halal – Audit # 1 Done on 21 st & 22 nd of August – 14 QMS – IQA # 1 Done on 15 th to 22 nd of September – 14 BRC – Audit # 2 Done on 17 th to 18 th of October – 14 Halal – Audit # 2 Done on17 th to 19 th of November – 14 QMS – IQA # 2 Planned on 4 th to 13 th December – 14 BRC – External Audit Planned in January – 15 Halal – Audit # 3 Planned in February – 15 QMS – IQA # 3 Planned in March – 15 Halal – External Audit Planned in April –15 QMS – External Audit Planned in June – 15

46. 6 - Management Review Meeting (Status) Title Status Management Review Meeting – 1 Done on 26 th of November – 14 Management Review Meeting – 2 Planned in 4 th week of Jan – 15 Management Review Meeting – 3 Planned in 1 st week of May – 15

47. 7 - M.R Office (Status) Title Status M.R Office (Changes and Reports) Work in Progress will be completed in 2 nd Quarter 8 - Record Room Management (Status) Title Status Timely Submission of Records and Follow up Work in Progress will be completed in 2 nd Quarter

48. 9 - Intranet Website (Status) Title Status Local network website for QMS Documents and Procedures Work in Progress will be completed in 2 nd Quarter 10 - Q.M.S Appraisal Points (Status ) Title Status QMS Performance (add/subtract marks in annual appraisal) Draft Copy is ready further meetings are arranged b/w H.R and Compliance to finalized it

49. THANKS FOR YOUR PARTICIPATION