OIL WORLD LTD OPERATION MANAGEMENT REPORT (1) (1)
OIL WORLD LTD OPERATION MANAGEMENT REPORT (1) (1)
OIL WORLD LTD OPERATION MANAGEMENT REPORT (1) (1)
REPORT
COMPANY CASE STUDY
1
TABEL OF CONTENT
ACKNOWLEDGEMENT 3
Missions: 4
VISIONS: 4
OIL WORLD COMPANY 5
PRODUCT LINE 6
OIL WORLD PROJECT PLANNING AND MANAGEMENT:- 6
LOCATION DECISION 7
Layout 8
OIL WORLD ADVANCED DESIGN AND PRODUCT FOCUS:- 9
OIL WORLD PRODUCTION PROCESS 10
OIL WORLD LABORATORY TESTS:- 13
OIL WORLD QUALITY CONTROL AND MAINTENANCE:- 14
OIL WORLD FORECASTING:- 15
INVENTORY MANAGEMENT 16
SUPPLY CHAIN MANAGEMENT: 16
DISTRIBUTION CHANNEL 17
SUSTAINABILITY INITIATIVES
CHALLENGE AND FUTURE OUTLOOK 18
CONCLUSION 19
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ACKNOWLEDGEMENT
All prays goes to Allah Almighty who has given us, courage and confidence to complete this
gigantic task. But with the noble passion of hard work, nothing remains difficult.
To write an acknowledgement, after the completion of an enormous task has always been very
enthusiastic form because it’s the best source to thank all those whose support enable us to
complete this project. After thanking GOD I will thank to my Teacher MISS NIDA for
supporting as it might not be able to complete this report.
we want to thank for all those personalities, who have been a continuous source of guidance
during there port. we want to say thanks to all the employees of OIL WORLD (pvt) LIMITED
Their attitude towards us was really very positive and appreciable. I want to acknowledge them
with thanks for their help and guidance one ach and every step. We made many mistakes as we
had never been confronted with the business world but they neverminded.
But In this regard, I particularly want to thank those personalities who have been the continuous
source of guidance
Missions:
● To make long term differences in our industry and earn the trust of our partners
and shareholders.
● To source high quality, healthier products maintain and improve our certified
standards and to work in partnership with our customers.
● Provide the good quality and make sure customers are satisfied.
● To promote the business with hard work, good products and loyalty.
VISIONS:
● To present the products of distinction which offer true value that meets the higher
aspirations of our customers, while maintaining best business practices.
● We aim to be natural supplier and collector, by giving exceptional service quality and
value for money.
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OIL WORLD COMPANY
OIL WORLD (PVT) LIMITED is in the manufacturing and Refining Oilseed and Grain. The
International Group of Companies (IMGC) established a new Division in 2011 with the name of
Oil World Pvt., Ltd. situated in the port city of Karachi with total cost of PKR 910 Million on
Oil World Pvt., Ltd. Hold the status of one of the major manufacturers of Edible Oil in Pakistan
with production capacity of Vegetable Ghee and Cooking Oil of 120,000 MT per year.
Within a short span of few years, the Unit has achieved annual sales turnover of more than Rs. 5
The plant is strategically located at Port Qasim (Karachi) where about 75 percent of the total
imported raw material of edible oil industry of the Country is being used. Due to the advantage
of comparatively lower freight cost, the growth of the plant has been phenomenal.
IMGC is engaged in adding modern facilities to its Unit at the Karachi port for quicker
distribution of material to the industry. OIL WORLD (PVT.) LIMITED is located in Karachi,
Karachi, Pakistan and is part of the Grain and Oilseed Milling Industry. OIL WORLD (PVT.)
LIMITED has 200 total employees across all of its locations and generates $29.15 million in
sales (USD). (Employees figure is estimated, Sales figure is modelled). OIL WORLD (PVT.)
North West Industrial Zone, Port Qasim Karachi, Karachi, and 75020 Pakistan
Contacts
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● Abbss Ali Sojra
Director
● Hassan Haroon
Officer
PRODUCT LINE
The plant is producing following products under the brand names of SHAMA, BARKAT &
BACHAT:
VEGETABLE GHEE:
in various packing of 16kg, 5kg and 2.5 Kg Tins and 1 Kg, ½ kg and ¼ kg Poly Pouches.
COOKING OIL:
in various packing of 5 and 2.5 liters in tins and 1 Liter, ½ liter and ¼ liter Poly Pouches.
It is also produced in 10 Liters Jerry Cans, 1 Liter, 3 Liter and 5 Liter PET bottles.
agro-climatic condition, the labor-incentive nature of the sub- sector, a conductive business
environment and the huge local demand. Despite this prospective, however the edible oil
processing industry of Pakistan remains unfledged. Main constraints are, insufficient trading
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set-up, poor agro- processing facilities and week business development services. On the other
hand worthy performance of the company brings a huge demand for quality product. Edible oil is
a vital portion for day to day intake in almost all forms of daily meal equally in the rural
and urban area. At present the majority of refined edible oil products are while a few proportion
are being supplied by local producers, yet the demand has not yet fully satisfied. The oil world
ltd has taken the resourcefulness to participate in the production of refined oil after careful
thought and investigation of the market trends. The valuation made in this study also shows that
there exists and increasing and unsatisfied demand for edible oil.
The proposed project holds socio-economic profits such as increasing the level of investment, tax
revenue, employment establishment and import substitution. The project is theoretically feasible,
financially and commercially possible as well as socially and economically suitable. Hence the
Oil world ltd offer the developers and engineers for apparatus maintenance and machine
installation, debugging and training on site. Oil world adopts compact fit process of refining
edible oil to obtain suitable eating vegetable oil and ghee with less than 0.2% impurities. And
also the adoption of techniques and devices for waste recycling program that can effectively
protect the environment. Environmental Protection Bylaws says it is imperious that the Pakistani
oil and oil industries have an abode to clean up toxic waste so that the surroundings does not
become polluted from the factory. Brand has been the lone major selling brand in the different
province of Pakistan. Oil world has one of the largest network of distributors for edible oil in
Pakistan, Oil word had production year last year with sales of over75, 000MTand a turnover of
over Rs.4billion
LOCATION DECISION
Oil world production unit is situated at Port Qasim .As for a manufacturing industry the decision
strategy while selecting a location is that the location reduces the operational costs and other
freight cost such as transportation cost as well(raw material coming in and finished goods going
out .From the perspective of supply of raw material the location of Port Qasim is feasible for Oil
world COMPANY as the raw material such as (Cottonseed oil, Canola oil, Sunflower oil,
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Soybean oil and R.B.D. Palm oil) are sufficiently available in region of Sindh and Balochistan as
well ,And they have easy access to it through local suppliers and have easy access to distortions
policies towards industries as industries with volatile material should be located far from
residential zone at an open airy space, so they are completely obeying the rule and installed the
plant at an open space. As factories should not be constructed near residential areas because
Layout
Oil word (pvt) ltd has total 200 employees across all of its locations. The layout of the company
has optimized the total area to best fit their machinery,as they have a secure and open
environment forworkers, for the filtration unit ,the packaging unit and the storage unit. The
high volume and low variety products, The Firm focuses on product standardization to maintain
the quality and Standard of the product They sell, If the volume of the raw material is adequate
for production, whether the supply of the Raw material is enough to maintain the standard and
have a uniform quality. The Layout of the company is in total sync creating an assembly line
work environment as the production is inter-connected and integrated efficiently to minimize the
time wastage and energy loss. As the production starts from Oil Refinery in which the oil is
treated in different ways to purify the raw material and converts it to edible oil. After the
treatment and there finery of oil it is Transferred to storage tanks to be filled into marketable
packaging. Which is further stored in storage units to be delivered to the market. The advantage
of having a production oriented layout the firm decrease the handling cost, it is more easier to
supervise and monitor, and has low variable cost per unit The disadvantage on the other hand is
as the work flow is highly correlated it could have a work stoppage at any point, high production
volume is required to sustain the large investment, and has a lack of flexibility while handling a
variety of products
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OIL WORLD ADVANCED DESIGN AND PRODUCT
FOCUS:-
Oil world (Pvt) Ltd is designing a continuous specialized process to obtain high quality edible
vegetable oil and ghee as by product. Edible oil and ghee is found to be in extended use in the
areas from food to home care. They are a rich source of nutrients and are also used in cooking
and as an ingredient in margarine, non-dairy creams, etc. It is also used in place of animal fats.
For non-food purposes the waste product of vegetable oil and ghee, is used in the production of
Pressed oil or solvent oil extracted, which needs to be refined before eating. Due to the fact that
there are several impurities within the oil, the oil isn’t fit for human health. Contaminants such as
water, FFA, resin, etc. Can cause oil to become unhealthy immediately. Once refined, the oil is
Edible oil refining plant consist a major oil activity that is why, there is a need for capital
equipment, storage, resources, and land. Refining of edible oil process consists of many steps
The use of an automated technological control system in a large edible oil refinery represents the
maximum security, reliable manufacturing throughout the workplace and monitors working and
Raw materials: - ingredients of ghee are Palm oil, Palm Olien, Cottonseed oil and/or Soya bean
oil and the major ingredients of Cooking oil are Canola oil, Sunflower oil and/or Soya bean oil
Machinery and equipment: - degumming tank, centrifuge, Decoloring tank, Deodorizing tank,
Oil furnace, Air compressor, Filter press, Steam generator and chillers
Oil world ltd offer the developers and engineers for apparatus maintenance and machine
installation, debugging and training on site. Oil world adopts compact fit process of refining
edible oil to obtain suitable eating vegetable oil and ghee with less than 0.2% impurities. And
also the adoption of techniques and devices for waste recycling program that can effectively
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OIL WORLD PRODUCTION PROCESS
Major contaminations in the oils may be point out as follows: Dirt and additional foreign
substances to the raw oils, solid materials from the seeds, mucilage, free fatty acids, coloring
affixes, substances divulging taste and smell to the oil . The processes active in filtering are
Subsequent steps are elaborated in production of cooking oil and vegetable ghee
De gumming:- The core equipment are degumming tower including centrifuge and mixer .The
initial step is the abstraction of gummy matter such as phospholipids and lipoproteins etc. from
raw soybean or cottonseed oil. It is proficient by exposing the oil to water and adding the
phosphoric acid at 50oC. As end result precipitate of gum is produced and oil is separated by
centrifuge taste and smell to the oil. The processes active in filtering are either mechanical,
Neutralizer:- Neutralization process is equipped to get rid of FFA from raw oil. Caustic Soda
solution balanced to FFA and is mixed with oil. Process is fully regulated in terms of the
strength and amount of NaOH, and at carefully regulated temperature of 70°C .This marks in the
neutralization of the FFA. The resultant soap stock is allowed to settle down and then drained out
from the refining kettle. Then the oil is wash away with water devouring 100°C temperature.
Water liquefy soap and free alkali and settle down at the bottom, oil comes on top level of the
tank. It set’s for t 1-hour rest and the water is drained through drain valve. Thrice time hot water
vacuum gauge, pressure gauge and steam heating coils. The demand of oil bleaching is to
eliminate its coloring pigments through the absorption of bleaching earth (Clay, silica dioxide,
micron and acidified with HCl). Earth is used for bleaching because of its excellent
absorption power, earth eliminates all the impurities and color, and makes the oil acceptable. It
also clutches any element of soap that is overdue. The coloring substances, which passes from
the seed into oil, is absorbed and seized back by earth. The bleached oil containing earth is drop
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down and it is warmed under vacuum at 120 °C through a series of filter presses to remove the
spent earth then cooled to lower down its temperature up to 110 °C.
totally airtight vessel. The process is, the hardening of oil i.e. liquid oils into solid fat through
Reduction process. At the same time, it improves the firmness of the product in contrast to its
oxidation. Chemically, the degree of un-saturation declines by passing hydrogen gas through oil
in-the presence of nickel catalyst at 150o. After this, the improved product is air-conditioned up
to 100-110°C. Then product is strained through filter press. It eradicates Ni catalyst and
unpolluted, clear oil is obtained. Tasters are drawn for the examination and testing of melting
point. Acclaimed melting point for Banaspati ghee is 36 ± 2 °C. Hydrogenation is not accepted
substances 'along with FFA, sterols, to copherols, saturated and unsaturated hydrocarbons and
pesticides are varnished out by introducing dry steam into oil at 235 -245oC. Citric acid is also
further added to remove the stink smell. The supplication of deodorization is removal of
unsolicited odors, odoriferous matters and additional volatile fatty materials and to improve
Polishing and final filtration:- After deodorization, the aromatized oil is cooled in the cooler to
about 85oC. The remaining odorous constituents are removed during the de-cooling under
vacuum. After cooling the hard oil is passed through a finishing filter press called "Polish Filter",
which take away undissolved citric acid, left over particles of the earth, or -nickel catalyst, and
any other unacceptable impurities. It also cuts the intensity of the final color of the oil/ghee.
Blending (Adding of Vitamin A&D3):- Finally deodorized product after filtration is taken into
filling churns. Now vitamin A&D3 are added in commended measure/ dose. All these vitamins
are approved by halal community and certified. Vitamins are trade in and are added
methodically, mixed by constant stirring. Samples are tired for vitamin validation test, the
vitamin test must be positive. Here and now it is ready for filling and packaging
mechanically fills in food grade and halal approved packaging material. Automatic filling is
carried out in event of pouches. The Prepack Click 2 machine is used for programmed filling and
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it fills 2000pouch of 1.0 Kg size/hour and 2400 pouch of ½ Kg /hour. After filling
tins/buckets/pouches are properly sealed. The products are filled into different pack mix for
marketing
16 Kg. 2.5 Kg , 05 Kg Tin and Bucket 5 liters, 10liters ,16 Liters Tin
Chilling:-
When a fat is indorsed to cool slowly devoid of any campaigning, then it sets up grain. After
packing ghee is steadily chilled in chilling rooms, which are made up of insulating measurable to
maintain the temperature of chilling room. Compressed air conditioning apparatus is used for this
procedure. The chilling procedure of vegetable ghee is accomplished in 18-22 hours in summer&
8-10 hours in winter and temperature of 8-9°C is sustained in chilling chamber. Next chilled
Soapy matters are transported in pan from neutralizer, cutting wastes and fats originated from the
deodorizers. Afterward charging it with H2O it is converted into liquid form. There are
enormous pans and have capacity of 3–4 tons. In this soap is heated for 7–8 hours, till water is
vaporized and soap grains becomes smaller. Further soap stone, Sodium Silicate, Resin are
added. All the material is systematically mixed from crutching tank soap and is filled into iron
frames to transform it in blocks. Soap blocks are kept for 24 hour to reduce moisture. Cutting is
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carried out with the cutters to alter the blocks in cakes of different dimensions which are packed
improper process of extraction, handling and storage. Moisture, bacteria, air, anti-oxidants and
sun exposure are among the factors that determine oil rancidity or decay time
In laboratory tests several parameters such as the amount of iodine (unsaturation rate), the
amount of peroxide (composition of key oxidation products), moisture content, specific gravity
(purity), and the amount of acid (free fatty due to rancidity) are important parameters of interest
as they determine the quality of life of the shelf and hence the economic value of oil .
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Lovibund tinto meter is used for color inspection of refined oil, whereas viscosity is measured
The Pakistan standard quality control authority (PSQCA) guideline sets the maximum allowable
● Moisture (0.2%),
products that are safe to use and to come across customer expectations and needs. Oil world ltd
are committed to developing and ensuring a consistent supply of affordable, convenient, safe and
high quality products, and ensure that our customers are provided with quality services to meet
The organization designs, operates and maintains processes and plants in order to establish and
maintain standards and procedures for the control and monitoring of all activities to prevent
potential product safety risks. Ensures compliance with applicable law and set standards. The
management tools throughout its operations. Warnings are handed out correctly to allow its safe
habit. ISO mean International Standard Organization who set the standard about product quality,
environment, and food safety etc. HGGM devise three sorts’ certificates of ISO.
ISO 14001:2004 :-This Standard covers environmental management that are anticipated to
deliver association with the ground rules of an operative environmental management system
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(EMS) that can be integrated with other management requirements and help organization achieve
ISO 22000:2005:- ISO 22000 provides the food safety guidelines at over all stages of goods
HALAL CERTIFICATE: - certificate was issued in compliance with Islamic sharia and global
halal management and Pakistan halal standards which stated that vegetable oil and ghee contain
Pakistani diet. In oil world pvt ltd Vegetable oil and ghee is purified using multiple modified
processes .Oil world ltd forecasts its production of vegetable oil and ghee on the basis
qualitative approach. The prediction of future plan is it should be very clear Specific,
Measurable, Achievable, Realistic and Time Framed. These forecasting decisions are made by
top management of the company, focuses on the Market Size Estimation, industry Scope, and
market size by applications, SWOT analysis, drivers, restraints and growth rate forecast
The processing of refined vegetable oils into value-added functional fats is largely dependent on
consumer needs, purchasing power and the development of allied food industry. Oil world ltd
uses short range time horizon i.e. they maintain their production generally from weeks to
months. However oil world ltd usually maintains sufficient stock of oil and ghee to supply the
The oil world ltd forecast it pricing approach, which statisticians might call "non-standard" or
"nonlinear" approaches, top managers argue that future oil prices are too random and chaotic for
any traditional processes. They might still use some of the same data as standard models, but the
Oil world ltd rely on combined business factors, such as inventory levels, production trends,
natural disasters (covid- 19) and the actions of opportunists. The unspoken perceptive behind
these quantitative data-based methodologies is that oil prices are heavily affected by large,
identifiable events.
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All in one multi-product forecasting enables the teams to perform fluid forecasting, type wells
workovers, auto-forecasting, and more, for both conventional and progressive plays. When price
fluctuations impact the business, team eliminates the guesswork of understanding the impact on
our plans and quickly make changes to multiple scenarios and make decisions based on real-time
INVENTORY MANAGEMENT
Oil World Company makes sure that a small but surplus amount of goods are kept on-hand. This way,
they’re able to guard against any unexpected surge in demand that could strain their existing product
stock as they have seasonal forecasting. They works on seasonal Forecast because the demand for their
products raises during festivals. With accurate forecasting, they are able to make informed decisions and
Quality is the main focus of the company, because the company's business revolves around
health issues. Total Quality Management is regarded as a critical component of the supply chain.
Every time a purchase is made, the Department of Quality Assurance analyses the quality of the
cargo made by its suppliers to see if it meets the company's standards. Local suppliers provide
Oil World Pvt. Ltd. with its basic materials. Their raw materials are separated into two
categories. The first is raw materials for packaging, such as bottles, pouches, tins, and cartons.
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Local suppliers purchase packaging raw materials. The second portion of raw materials is
production raw material. The company believes in supplying top quality to its customers, thus
production raw materials are purchased from reputable suppliers. The company focuses mainly
on the time variable, ensuring that the client receives their goods on schedule. To fulfill this
promise, logistics management techniques include the circulation of items or services, as well as
important knowledge. Logistics also includes the warehousing and transporting activities, and for
that they have generally signed the agreement with other transport companies. Their agreement
with transporters covers importing materials into the production plant, then transporting them
from the production facility to their depots after it has been transformed into finished products.
The transport occurs according to the potential of the transporters. The transportation is based on
the necessity for supplies. Normally transport occurs in the KPK region. Transporters are urged
to take the necessary precautions to ensure the safety of the products while in route. The finished
goods are then sent to warehouses in the areas. In the warehouses, all the operation is carried out
manually.
DISTRIBUTION CHANNEL
As they are selling their products all across the country but their major supply is in Sindh, Punjab
and KPK areas. They follow a traditional product distribution channel .As after manufacturing
the products are supplied to distributors, 9 Rs per kg amount is given to the distributors when
they achieve the target, from where whole seller to retailer and then finally product reached to
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Sustainability Initiatives
1)Sustainable Sourcing:
Prioritizing the procurement of oilseeds from sustainable sources, supporting local farmers, and
promoting sustainable agricultural practices.
2)Waste Management:
Implementing waste minimization strategies, such as recycling packaging materials and utilizing
byproducts from the oil extraction process.
3)Energy Efficiency:
Investing in energy-efficient equipment and technologies to reduce energy consumption and
environmental impact.
1)Price Volatility
Managing the impact of fluctuating global commodity prices on raw material costs and
profitability.
2)Competition
Competing effectively with other players in the domestic and international markets.
4)Regulatory Compliance
Adhering to evolving food safety regulations and maintaining compliance with industry
standards.
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Conclusion
Oil & World Limited has established itself as a key player in the Pakistani edible oil industry
through a combination of efficient production processes, strong quality control, and a focus on
customer needs. By continuously adapting to market dynamics, embracing sustainable practices,
and investing in innovation, the company can further strengthen its position and contribute to the
growth of the edible oil sector in Pakistan.
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APPENDIX
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