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Group 6Pranay Karthik G - 2010160

B Raghu Verma - 2010171Rohan Mehra - 2010184

Sahil Malhotra - 2010195Varun Bhargava - 2010258

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Introduction Pioneer in High Pressure Decorative Laminates (HPL),

since 1987.

Known for Quality Products & innovative designs forInterior Dcor

Mission:

To Provide Creative Interior Decor Products with

Continuous Innovation Vision:

To become a leading total interior decor solutionprovider in India within next 5 years.

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Capacity Design Capacity : 1, 50,000 sheets per month.

Current Working Capacity: 98,000 sheets per month.

Utilization:Current Working Capacity = 98,000

Design Capacity 150,000

= 65.33%

Utilization rate increases to match demand duringperiods of high demand.

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Process Flow Chart

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Time Consumed per Workstation

Impregnation + Drying: 2 minutes (120 Secs)

Forming: 5 Secs

Hydraulic Pressing: 45 minutes

(A total of 256 sheets are put for hydraulic pressing divided into 16 delites)

Cutting: 12 Seconds

Sanding: 1 second

Packaging: 5 seconds

(Average Estimates)

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Manufacturing Process Paper passed through resin bath & impregnated with phenol

formaldehyde resin to obtain resin impregnated paper. These are used as Core Paper., while the top papers are Design Paper. Design Paper passed through resin bath & similarly Impregnated

through melamine formaldehyde resin. 4 Kraft Paper and 1 Design Paper arranged to form 1 Laminate. These sheets of paper are then laminated in the hydraulic press

applying pressure and heat to make a laminated sheet and during theprocess in hydraulic press, the resin passed through the pores of paperand acts as a binder between the said paper sheets.

The dry sheet is cut into the desired size and shape. The regular size ofthe laminates is 8x4 inches.

After that the inspection is done and finally it is sent for packaging.

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Total Cycle Time: 565 min per cycle of 256 units (Approx).

Lot Size for Workstation 3: 256 Units

Total Value Added time for a unit: 47 min 23 sec = 48 min(approx)

Total Cycle time: 10 hrs 22 min Max Idle time for a unit at Workstation 3: 9 hrs 33 min (approx) Company using 2 production lines ahead of this Workstation 3, which

reduces Cycle Time to 5 hrs 31 min. D

Drastic reduction in the idle time before workstation 3 to 4 hrs 45min.

Similar approach is followed after workstation 3, to reducing theamount of idle time.

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Base Paper Average Requirement: 1.25 lakh per month, with Estimated of loss of 5%.

80% of the base paper is imported and rest 20% is procured locally.

Base papers are Solid Colours & designed.

Suppliers:

Solid Colours: ITC (India), Technocell Dekor (Abroad).

Designed: Matchwell printer(India), Schatt Decor (Abroad).

Lead Time:

30-60 days(India)

60-90 days(If Imported).

Safety Stock:

2 months for fast running designs

6-12 months(Slow Moving Design it takes)

Holding cost: Rs 2,70,000 per month (includes invert handling & Air conditioncost)

Ordering Cost:

India :Rs 2 per sheet

Imported: Rs 10 per sheet.

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Kraft Paper

Total requirement: 6 lakhs sheet per month (4 paperused to manufacture 1 laminate.)

Lead Time:

15 days (Indian paper)

60 days (Imported paper)

Safety Stock: 3 lakh sheets.

Ordering Cost:

Rs 3 per sheet (Indian paper) Rs 8 per sheet (Imported paper)

Holding cost: Re 1 per sheet.

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Each purchase dependent upon the demand.

All raw materials kept in godown, inside the factorypremises.

Finished stock kept in nearby godown (Approx 5-6kms away from the factory).

Ordering of Raw Materials based on rough forecast ofdemand, rather than EOQ/EPQ.

Selling Price: Rs 780 Cost Incurred: Rs 660

Design Paper Cost: Rs.115 /sheet

Kraft Paper Cost: Rs.50 /sheet

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Raw Material ClassificationABC Classification:

A Items: Design Paper, Kraft Paper

B Items: Methanol, Phenol, Formal-dehyde, Melamine C Items: Tissue Paper, PP Film

Selective Control of Inventory:

Kraft Paper & Design Paper

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Optimal Reorder Point & Quantity Reorder Point:

Design Paper : D * L = 98000 * 2= 196,000 units.

Kraft Paper: D * L = 98000 * 4 * 3 = 1,176,000 units.

Lead time is considered for Imported Materials as it

constitutes 80% of Raw Materials. Reorder Quantity:

For Design Paper: Sqrt(2*D*S/H) =Sqrt(2*98000*(98000*10)/(270000)

= 843.449 units For Kraft Paper: Sqrt(2*D*S/H) =

Sqrt(2*98000*4*(98000*8*4)/(98000*4)

= 2504.396 units