om project assignment.docx
-
Upload
shobhit-mittal -
Category
Documents
-
view
221 -
download
0
Transcript of om project assignment.docx
-
7/31/2019 om project assignment.docx
1/17
A PROJECT REPORT ON
PAS3 & COMPANY
POWER DETERGENT POWDER
WITH S3A2P FORMULA
SUBMMITED TO: SUBMMITED BY:
Prof. SUSMITA PAUL (GROUP 5)
PAARIJAT - 31
SHOBHIT - 44
ANUJ - 06
SANCHI - 40
APURV - 08
SHIKHA - 43
-
7/31/2019 om project assignment.docx
2/17
(GROUP 5) Page | 2
TABLE OF CONTENT
Company profile...
Products.
Production plan.
Aggregate planning..
Product layout...
Quality for product
Quality certification..
Procurement function..
-
7/31/2019 om project assignment.docx
3/17
(GROUP 5) Page | 3
Company profile
. PAS3 & company was established in 2011, the company is an partnership firm. This
partnership firm under the guidance of shobhit mittal, sanchi, shikha, apurv, anuj and
paarijat has managed to conquer a segment of the market in Delhi NCR. PAS3 &company operate on the principle of appointing stockiest agents in all towns and cities.
The policy is to aim at smaller profit and larger turnover. Retail outlets and door to door
selling methods are not used. Though sales staff is employed to supervise, book orders
and conduct promotion campaigns.
Products
We are one of the leading small scale industry unit in Delhi NCR, manufacturing
synthetic detergent powder, cake, laundry detergent, laundry/washing soaps, dish
washing bar and bathing bar, under our brand name power, white, fragrance, detergent
powders with S3A2P formula etc.
Production Plan
Business Operation
The company fallow the 5 days a week and 22 days a month operating plan
The 24 hours production is distributed in 3 eight hours shifts
Which then equals 120 hours a week,528 hours a month and6336 hours yearly.
The adjustments are done like over time in peak demand and under time in slack time
shutdown periods
The shut down periods are 4 times a month and 48 times a year respectively.
Due to high demand in peak time company reduces the shutdown periods accordinglyno of shifts
The work is distributed in to 3 shifts production plan capacity,proceses type(auto or
manual) ,purchasing material inventory ,plan suppliers ,office equipments ,labor force
no of employees skill levels and types genders, age range ,compensations ,salary plans
,retirement period.
-
7/31/2019 om project assignment.docx
4/17
(GROUP 5) Page | 4
Competitive strategy
In competitive strategy there are some sort of pressure on you, which have, you must
the capability to face it like they are:
Pressure of Buyers:
When there is a lot of sellers lying in the market then buyer has power to influence.
Pressure of Suppliers
One supplier for a company can exploit the company. Therefore detergent company has
3 Suppliers for the purpose to bargain with them effectively.
1. Threats of Substitutes:
In the detergent market people have choices as they can take Surf Excel and Ariel
alternatively.
2. Threats of new entrance:
New coming brands of China and other smuggled brands are huge threat for company.
As concern of competitive strategy the organizations really should focus on following of
three strategies
Differential strategy when we see towards the company they have really provide the
good quality products to the consumers like packing and beautiful appearance with
beautiful colors and images as well as Unilever focusing on best quality of detergent as
charging the premium on it.
Made By:
Paarijat PGFA1131
-
7/31/2019 om project assignment.docx
5/17
(GROUP 5) Page | 5
Aggregate Planning
Aggregate planning is the process of planning the quantity and timing of output over the
intermediate range (often 3 to 18 months) by adjusting the production rate, employment,
inventory, and other controllable variables. Aggregate planning links long-range and
short-range planning activities. It is aggregate in the sense that the planning activities
at this early stage are concerned with homogeneous categories (families) such as gross
volumes of products or number of customers served. Master scheduling follows
aggregate planning and expresses the overall plan in terms of the amounts of specific
end items to produce and dates to produce them. It uses information from both
forecasts and orders on hand, and it is the major control (driver) of all production
activities.
Aggregate Planning for Production
An aggregate planning is a process by which company determines levels of production
capacity, subcontracting, inventory, stock outs and even pricing over specified time
horizon, the goal of aggregate planning is to satisfy demand in a way that maximizes
profit. Generally, the demand rate varies over time and the associated problem
becomes a dynamic planning problem but it is assumed to remain the same during a
fixed period stated in the planning time horizon.
The following are some of the alternatives available for planning to meet the
fluctuating demands.
Build inventories during the period of peak demand in anticipation of higher demand
rates later in the planning periods.
Carry backorders during the periods of peak demands.
Use overtime in peak periods or under time in slack periods to vary output.
Use subcontracting in peak periods.
Vary capacity by changing the size of the workforce through hiring and firing.
Vary capacity through changes in plants and equipment. Since we typically are
concerned with planning horizon less than a year, we usually shall assume that facilities
are fixed and thus this alternative is not available to the planner.
-
7/31/2019 om project assignment.docx
6/17
(GROUP 5) Page | 6
The optimal combination of these alternatives involves proper trade-offs between
the following types of costs:
Production costs which include any out-of-pocket costs that is associated with
production rate.
Inventory holding costs.
Shortage losses associated with backorders and lost sales.
Costs of increasing and decreasing workforce levels. These include hiring and training
costs and separation pay and other losses associated with firing or laying off workers.
Costs of deviating from normal capacity through use of overtime or under time.
Made By:
Anuj PGFA1106
-
7/31/2019 om project assignment.docx
7/17
(GROUP 5) Page | 7
Product layout
In a product layout, the workstations and equipment are located along the line of flow of
the work units. Usually, work units are moved along a flow line which is powered by a
conveyor. Work is done in small amounts at each of the workstations on the work unit.This means that to use the product layout the total work must be dividable into small
tasks that can be assigned to the workstations. Product Layout is one of the three basic
types of plant layouts; the other two are process layout, and the fixed-position layout.
When the workstations are relatively few in number, they can be arranged in one
straight line. In more complicated plants such as the automobile final assembly plant,
they can be arranged into a series of connected line segments.
Because the workstations do small amounts of work, the stations are specialized in their
tasks with specialized equipment and tooling, which leads to high proficiency and
reduced cycle time. And this also leads to a higher production rate.
Process Taken In Product Layout
1. Washing Powders (Detergents, Soaps, Surface Active Agents) :
The free-flowing, non-dusty, non-caking products in bead form are produced in counter-
current flow dryers with nozzle atomization is the preferred layout for high-bulk-density
detergents. Feeds are homogenized and fine-filtered prior to passing to nozzles
operating at high pressure. Hot air from direct-fired air heaters enters at the base of the
cylindrical part of the tower with slight rotary motion. The exhaust air is drawn from the
top of the tower. Inlet temperatures vary according to product. Up to 400C (750F) is
used for some detergents, but lower temperatures are used for fine washing agents.
Product recovery from the drying tower is high (99%). The fines fraction is usually
returned to feed preparation. Open - cycle dryers are normally used, Co-current dryers
are used for low - bulk - density detergents.
2. Soda Products :
Detergent formulations consist basically of (a) an active ingredient (b) sodium
tripolyphosphate, (c) silicates, (d) sodium sulphate. Normally the active ingredients are
-
7/31/2019 om project assignment.docx
8/17
(GROUP 5) Page | 8
fatty alcohol sulphates, primary and secondary alkyl sulphonates and alkyl aryl
sulphonates. Synthetic detergents are currently based upon linear alkyl benzene
sulphonates. Formulations are with variations as decided by each company.
3. Heavy - Duty Detergents
Synthetic detergents are widely used in cleaning of all types and operate successfully
with hard water. The coarse powder granules in bead form are free-flowing, non-dusty
and readily dissolve in water. Shelf-life is excellent, with no tendency to instability or
lumping. The feed can be formulated batchwise or continuously. Comp slurry
preparation systems ensure the right preparation technique which improves the quality
of the final dried detergent powder. Precise weighing / metering, mixing, homogenizing
and de-aeration take place before spray drying. As high a solid content as possible is
used (50 - 65%) to give the optimum powder bulk density and best economic use of the
spray dryer.
The product is dried in a counter-current-flow drying tower at inlet temperature 350 -
400C (660 - 750F). The dried powder leaves the base of the drying tower and is
transported via a conveyor belt to an air lift. During passage on the belt, product dosing
is carried out. Dosing materials can be products that would damaged during spraydrying, e.g. lauryl alcohol, enzymes. Bleach along with enzymes is also added at this
stage. Perfume is added after the following air lift.
4. Light Duty Detergents
Light - duty detergents are used less than heavy duty. They find wide application only in
dish washing and light household cleaning (janitoring). Light -duty detergents are
produced in nozzle towers with either co-current or counter-current flow. Choice
depends upon required bulk density. Inlet drying temperatures are also lower, 250 -
275C (480 - 530F)
Made By:
Sanchi Malhotra - PGFA1140
-
7/31/2019 om project assignment.docx
9/17
(GROUP 5) Page | 9
Quality For Our Product And Services
Delivering products with high quality -- defined as meeting specifications at the low
cost and and customers satisfaction -- is a top priority for manufacturers and industrial
operations. Quality has many aspects and Surf Excel provides value at preferable cost.
It meet its quality needs worldwide i.e., standardized quality throughout India.
Quality Management is a combined philosophy of management for continuously
improving the quality of products and processes. It is the application of quantitative
methods and human resources to improve all the processes within an organisation.
Quality Management is continuously updated by ISO, these standards are not specific
to any industry or product but are universally applicable and recognize.
ISO certification is mandatory for all manufacturers and service providers selling to
multinationals or governmental organization.
Measures for Quality of Power Detergent
1.Customer Satisfaction: Whether the customer is satisfied after its use
or not.
2.Responsiveness: It refers to the turnaround time of customers.3.Reliability: The chance that the product is completely vital to use , that
it doesnt produce any kind of poisonous effect on clothes, which would
hamper the quality in terms of human health and clothes.
4.Serviceability: It refers to how easily the product is available to the
consumers when required.
5.Aesthetics: It refers to how the product (Surf Excel) looks, smells etc.
6.Safety: Assurance that customer will not suffer injury or harm from aproduct; and specially important consideration for consumption by
children.
Made By:
Shikha Singh - PGFA1143
-
7/31/2019 om project assignment.docx
10/17
(GROUP 5) Page | 10
Quality Certification For Our Detergent
ISO 9000 is a family of standards related to quality management systems and designed
to help organizations ensure that they meet the needs of customers and other
stakeholders. The standards are published by ISO, the International Organization for
Standardization, and available through National standards bodies. ISO 9000 deals with
the fundamentals of quality management systems, including the eight management
principles on which the family of standards is based. ISO 9001 deals with the
requirements that organizations wishing to meet the standard have to fulfill.
Third party certification bodies provide independent confirmation that organizations
meet the requirements of ISO 9001. Over a million organizations worldwide[4]are
independently certified, making ISO 9001 one of the most widely used managementtools in the world today. Despite widespread use, however, the ISO certification process
has been criticized as being wasteful and not being useful for all organizations.
Reasons for use
The ISO family of standards is the only international standard that addresses systemic
change. The global adoption of ISO 9001 may be attributable to a number of factors. A
number of major purchasers require their suppliers to hold ISO 9001 certification. Inaddition to several stakeholders benefits, a number of studies have identified significant
financial benefits for organizations certified to ISO 9001, with a 2011 survey from the
British Assessment Bureau showing 44% of their certified clients had won new
business. Corbett et al (2005) showed that certified organizations achieved
superior return on assets compared to otherwise similar organizations without
certification. Hears et al (2002) found similarly superior performance and demonstrated
that this was statistically significant and not a function of organization size. Nave and
Marcus (2007) showed that implementing ISO 9001 led to superior operational
performance. Many others identified similar improvements in operating performance
and linked this to superior financial performance. Chow-Chua et al (2002) showed better
overall financial performance was achieved for companies in Denmark. Many business
firms showed that ISO 9001 certification resulted in superior stock market
http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/Standards_organization#National_standards_bodies_.28NSBs.29http://www.iso.org/iso/iso_9000_selection_and_use.htmhttp://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://www.bsieducation.org/Education/HE/subjects-standards/quality-management/quality-management.shtmlhttp://en.wikipedia.org/wiki/Return_on_assetshttp://en.wikipedia.org/wiki/Return_on_assetshttp://www.bsieducation.org/Education/HE/subjects-standards/quality-management/quality-management.shtmlhttp://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://www.iso.org/iso/iso_9000_selection_and_use.htmhttp://en.wikipedia.org/wiki/Standards_organization#National_standards_bodies_.28NSBs.29http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardization -
7/31/2019 om project assignment.docx
11/17
(GROUP 5) Page | 11
performance and suggested that shareholders were richly rewarded for the investment
in an ISO 9001 system.
While the connection between superior financial performance and ISO 9001 may be
seen from the examples cited, there remains no proof of direct causation,though longitudinal studies, such as those of Corbett et al may suggest it. Other writers,
such as success full business firms have suggested that while there is some evidence
of this, the improvement is partly driven by the fact that there is a tendency for better
performing companies to seek ISO 9001 certification.
Advantages
It is widely acknowledged that proper quality management improves business, often
having a positive effect on investment, market share, sales growth, sales margins,
competitive advantage, and avoidance of litigation. The quality principles in ISO
9000:2000 are also sound, according to Wade and also to Barnes, who says that "ISO
9000 guidelines provide a comprehensive model for quality management systems that
can make any company competitive." Implementing ISO often gives the following
advantages:
1. Creates a more efficient, effective operation
2. Increases customer satisfaction and retention
3. Reduces audits
4. Enhances marketing
5. Improves employee motivation, awareness, and morale
6. Promotes international trade
7. Increases profit
8. Reduces waste and increases productivity.
9. Common tool for standardization.
Made By:Shobhit Mittal - PGFA1144
http://en.wikipedia.org/wiki/Longitudinal_studyhttp://en.wikipedia.org/wiki/Longitudinal_study -
7/31/2019 om project assignment.docx
12/17
(GROUP 5) Page | 12
PROCUREMENT FUNCTION: AN EXAMINATION OF ITS VALUEADDED ELEMENTS
The procurement philosophy of every organization must be to obtain the most
suitable goods and services at the most reasonable contract prices, delivered when and
where required .This maximization of the companys resources in terms of the acquisition of
materials for manufacture, production and firm use is in a continuous process of
development, as more cost-effective and efficient ways are being introduced in the field of
procurement. The purchasing function has received considerable attention in the past
decade as firms are constantly finding ways to increase the effectiveness and the efficiency
of the task of acquisition, particularly in its people, processes, technologies and the
framework under which they are governed and measured ( 2006). This could lead to an
overall increase in the business profit, as cheaper prices, less wastage in materials and
fewer delays in the production of goods and/or provision of services are products of careful
purchasing.
There are four main recipients of value added by the purchasing department,
according to (1999): the organization, the employees, the consumers and the suppliers.
The perception of "value added" is critical to every function/department in any organization
in today's business environment. Unless there is a clear understanding at the senior
management levels that purchasing does contribute at a significantly higher level of adding
value, then purchasing people probably will continue to be considered simply as "order
placers." It matters less what any person or group in purchasing thinks about their ability to
contribute; what matter more is senior management's perception of the purchasing
departments actual contribution ( 1993). With the increased focus on finding ways to
economize on purchasing costs, the procurement function has been elevated to a strategic
component of creating value. (n.d.) stated that apart from salaries, the biggest area of
expense for most businesses is purchasing. He said that a sharpened focus on buying canreduce a business costs by as much as 20%. Thus, apart from the sales department, he
argues that no other area of the business could potentially have so much impact on the
bottom line.
-
7/31/2019 om project assignment.docx
13/17
(GROUP 5) Page | 13
The modern procurement organization is typically focused on delivering eight or
nine key processes. These range from managing the transactional activities such as raising
purchase orders and paying suppliers to the strategic activity of selecting new suppliers and
managing relationships with the existing supply base. It is the strategic and tactical
procurement processes that deliver the big improvements that companies are seeking from
their procurement functions (for example, reduction in cost of goods sold, improvement in
service levels), explain (2006). In the value chain analysis developed by (1985),
procurement is viewed as a support activity that contributes to the competitive advantage of
a business unit by adding value. The purchasing function uses various inputs to perform
value-adding processes (market and value analyses, sourcing, negotiation, etc) and to
provide output like quality, services, materials, etc. If purchasing performs these activities
effectively, this output provides the organization with a competitive advantage (see figure1).
The value-chain demonstrates that the purchasing function has a major role in adding value
to the organization ( 2001).
PURCHASING ACTIVITIES
For many buyers, their new acceptance ofvalueadded is closely connected to
outsourcing and the need to use the resources of suppliers to conserve their own
companies' limited resources. Typical of purchasingprofessionals holding that view is ,
program manager, outsourcing, at Genus Inc.'s Ion Technology Div. in Newburyport, Mass.
She notes that her company's deep emphasis on adding valuethrough outsourcing was
driven by a desire to maximize use of the company's resources. By putting as much of
manufacturing in the hands of suppliers, Genus is able to deploy a greater percentage of its
resources behind its core competency--product development and testing ( 1995). The main
value added by purchasing, according to (2001) is assuring the continuity of supply in the
organization. The illustration of the purchasing process , demonstrates the flow of action
that happens within the purchasing department. The diagram is used for purchasing
transactions outside of the firm, as in-house transactions require simpler and faster
operations (the requisitioning activity will touch on the subject briefly). Each process will be
discussed in detail including the value added elements that go with it.
-
7/31/2019 om project assignment.docx
14/17
(GROUP 5) Page | 14
Requisitioning
A requisition form always initiates the process of purchasing. The importance of
requisition is often overlooked by many organizations but this initial procedure provides the
purchasing officer with all the essential information that he or she needs in the actual
purchase of materials. The in-house form (which means that it is for use within the firm
only) usually contains these following items: (1) date of request; (2) name and department
of the person requesting for the material; (3) particulars of the item/items requested i.e.,
product code, brand or make, etc. (4) unit and quantity of item/items desired; (5) date
needed; (6) date of last request; (7) signature of the person requesting and (8) approval
signature of purchasing officer. The form is then forwarded to the purchasing officer. As in
the case of outsourcing materials, the purchasing officer will be the one responsible for
filling up a form (this time to be sent to the supplier), with basically the same items as that of
the in-house form but with additional particulars as the name of the supplier/suppliers, unit
price of the item/items, when and where to deliver, a purchasing order (PO) number for the
reference of the supplier, and an approval signature from the financial department.
Purchasing could do away with a lot of paper work and contribute to value adding by
making sure that the requisition forms that they issue to the supplier are organized and
easy to read. Searles purchasing department does this by being very specific about the
quantity that they order and by using forms that are consistent and easy for the suppliers to
read. They have also made it easier for the employees to request for items by providing a
requisitioners handbook, a step-by-step guide to filling out forms, company procedures and
contact persons ( 1990).
Financial Approval
This involves the authorization to go ahead with the purchasing commitment. This
will be made easier by the allotment of a space for such purposes in the requisition form.
The persons usually affixing their signature for approval are the finance or the budget
department heads. This process could be made easier if there is a batch grouping for
requisitions. Taking of immediate action in signing the forms contributes to the speed with
which the production (if the request is for raw materials or manufacturing services) and the
-
7/31/2019 om project assignment.docx
15/17
(GROUP 5) Page | 15
employees (if the request is for office use) perform their respective functions in the firms
structure.
Market Assessment
Once the purchasing officer receives the approved requisition form, an appraisal of
the market should be done, with these following considerations in mind: (1) Is there a
competitive market for the item? ; (2) Is the volume/value of goods required sufficient to
warrant calling for quotations and tenders, and if so, should prices and other details be
obtained by telephone or in writing?; (3) If there is no competitive market, should the sole
supplier be given an immediate order, or can a lower price be negotiated?; (4) Is it
appropriate to call for "Registration of Interest", prior to inviting formal tenders?; (5) Are
suitable period contracts available?; (6) Is there a list of "approved suppliers" for the item, or
is the establishment of an "approved suppliers" list warranted?; (7) Could there be scope
for a bulk purchase? ( 1991) After having attended to such considerations, the purchasing
officer could then proceed to making the purchase decision.
Only through considering the items enumerated above could this process contribute
to value adding. An excellent market assessment could prevent materials wastage, further
delay of delivery and more strategic supplier selection.
Purchase Decision
The purchasing officer needs to determine the purchasing method he or she will use
in acquisition. The principal methods of making a purchase are as follows: (1) tendering; (2)
selective purchase; (3) emergency purchasing; (4) bulk purchasing; (5) period contracts
and (6) indent purchasing. Sometimes, the purchasing officer has not decided yet on whom
to buy from. Decisions can be made through bidding or asking for price quotes from a
range of possible suppliers. This process must be recorded or documented for purposes of
auditing and to justify the reasons for having chosen such and such supplier in case of
subsequent problems. After having picked the purchasing method and the supplier suited
to the firms standards, the officer could proceed to the rest of the acquisition process.
Value added in the purchasing decisions comes in the strategic supplier selection.
Being overly dependent on only a few suppliers could prove disadvantageous to the
-
7/31/2019 om project assignment.docx
16/17
(GROUP 5) Page | 16
company. If these supplier potions fail to deliver, there will be delay in the production
process, and delay means additional expense on the firms part. Value added can also be
seen in the delivery method the business chooses. Choosing the delivery method which will
best preserve the original state of the items ordered will ensure that materials used in
production is in top condition, which in turn would produce top quality goods or services.
Ordering
The officer in charge of buying materials will then arrange to order from the supplier.
This should be documented, as this will form an agreement between two parties: the buyer
(the organization), and the seller (the supplier). The order contract should expressly reflect
the transactions to be made, like the method of delivery and the terms of payment. All the
legal and other significant details should appear in the documentation. This, then, should be
forwarded to the supplier. The firm should also establish a formal order-tracking system to
ensure the follow-up of orders. The system should include:
Checking with suppliers that delivery dates are still able to be met. If timing is
critical, frequent pre-delivery checks may be necessary;
Documentation which acknowledges part-delivery of orders and allows
follow-up on delivery of the remainder;
A procedure which ensures that suppliers are paid in accordance with
contracted terms. (This double-check will help to maintain good
supplier/purchaser relations);
A record of supplier performance (1991).
In ordering, the purchasing department could add to value by making sure that
correct specifications are indicated in the order contract which will prevent incorrect
delivery. The following-up of orders could also add value by ensuring that the lead time is
used effectively. Processes in production which could be done without the ordered goods
or services should be done while waiting for the delivery to arrive. As such, time is
maximized.
Made By:
Apurv Singh PGFA1108
-
7/31/2019 om project assignment.docx
17/17
(GROUP 5) Page | 17